QUARTERLY BANKING PROFILE Third Quarter 2018

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Net Income Registers a Strong Increase of 29.3 Percent From a Year Earlier

Higher Net Operating Revenue and a Lower Effective Tax Rate Boost Net Income

Net Interest Margin Rises as Increases in Asset Yields Exceed Funding Cost Growth

Loan and Lease Balances Expand 4 Percent From a Year Ago

The Noncurrent Rate Continues to Fall

One New Charter Is Added in Third Quarter 2018

Net Income Registers 

a Strong Increase of 

29.3 Percent From a 

Year Earlier

Quarterly net income for the 5,477 FDIC-insured commercial banks and savings institutions 

increased to $62 billion in the third quarter, up $14 billion (29.3 percent) from a year earlier.1

Higher net operating revenue (the sum of net interest income and noninterest income) 

and a lower effective tax rate combined to boost industry quarterly net income. Assuming 

the effective tax rate before the new tax law, net income would have totaled an estimated 

$54.6 billion, an increase of $6.7 billion (13.9 percent) from third quarter 2017.2 The average return on assets ratio rose by 29 basis points to 1.41 percent, the highest quarterly level 

reported by the industry since the Quarterly Banking Profile began in 1986. The percentage of unprofitable banks in the third quarter declined to 3.5 percent, from 4 percent a 

year earlier.

Net Interest Margin Rises as 

Increases in Asset Yields 

Exceed Funding Cost 

Growth

Net interest income rose by $9.6 billion (7.5 percent) to $137.1 billion from 12 months ago, 

reflecting a modest growth in interest-bearing assets and wider net interest margins (NIM). 

More than four out of five banks (83 percent) reported annual increases in net interest 

income. NIM rose to 3.45 percent, up 15 basis points from a year earlier, as increases in 

average asset yields (up 44 basis points) exceeded average funding costs (up 29 basis points).

The improvement in NIM was widespread, as almost 70 percent of banks reported increases 

from the previous year. Banks with assets of $10 billion to $250 billion reported the largest 

year-over-year increases in average asset yields (up 51 basis points) and average funding costs 

(up 33 basis points).

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

10

20

30

40

50

60

70

35.2

25.3

34.8 34.5

37.5

34.4

40.3

38.2 36.1

39.8

37.3

40.1 38.5

36.5

39.8

43.0

40.4 40.6 39.0

43.6 45.6 43.2 43.9

48.1 47.9

25.3

55.9

60.2 62.0

2011 2012 2013 2014 2015 2016 2017 2018

Chart 1

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

20

40

60

80

100

120

140

160

180

200

220

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

203.8

Chart 2

1 Two insured institutions had not filed a September 30 Call Report at the time this report was prepared. 

2 This estimate of net income applies the average quarterly tax rate between fourth quarter 2011 and third quarter 2017 to income 

before taxes and discontinued operations. 
2 0 1 8  •  Volume 1 2  • Number 4

2 FDIC QUARTERLY

Loan-Loss Provisions 

Decline Over 12 Months

Banks assigned $11.9 billion in loan-loss provisions, a decline of $1.7 billion (12.6 percent) 

from third quarter 2017. Loan-loss provisions declined for the second consecutive quarter, 

posting the largest year-over-year decline since second quarter 2014. One-third of all banks 

reported lower loan-loss provisions than a year earlier.

Noninterest Income 

Expands Almost 4 Percent 

From a Year Earlier

Noninterest income rose to $66.7 billion in the third quarter, up $2.4 billion (3.8 percent) 

from the year before. The annual increase in noninterest income was led by servicing fees, 

which increased by $432.9 million (18.8 percent); investment banking fees, which rose by 

$287.8 million (10.4 percent); and other noninterest income, which grew by $1.5 billion 

(5.1 percent). Slightly more than half of all banks (54.2 percent) reported increases in 

noninterest income compared with a year earlier.

Noninterest Expense 

Increases 4 Percent From 

Third Quarter 2017

Noninterest expenses rose by $4.3 billion (4 percent) over the past 12 months, as almost 

75 percent of all banks reported increases. The yearly increase was attributable to salary and 

employee benefits, which grew by $2.1 billion (4.1 percent), and other noninterest expense, 

which increased by $1.8 billion (4.1 percent). The average assets per employee increased from 

$8.3 million in third quarter 2017 to $8.5 million.

Net Charge-Off Rate 

Remains Stable From a 

Year Earlier

Net charge-offs (NCOs) totaled $11.2 billion in the third quarter, an increase of 

$171.9 million (1.6 percent) from a year earlier. NCOs continued rising, but at a slower rate 

than previous quarters. Credit card balances registered the largest dollar increase in NCOs 

this quarter (up $837.8 million, or 12.3 percent). The average net charge-off rate declined 

1 basis point from a year earlier to 0.45 percent.

Noncurrent Loan Rate Falls 

to 1.02 Percent

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

$3.6 billion (3.4 percent) during the quarter. Almost half of all banks (49.5 percent) reported 

reductions in noncurrent loan balances. The quarterly dollar decline was attributable to 

residential mortgage balances, which fell by $3.1 billion (6.3 percent) and commercial and 

industrial loan balances, which declined by $1.1 billion (6.8 percent). Credit card balances 

had the largest quarterly dollar increase, rising by $806.5 million (7.6 percent). The average 

noncurrent rate declined by 4 basis points from the previous quarter to 1.02 percent.

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Quarterly Net Charge-O Rate

Noncurrent Loan Rate

Chart 3

Source: FDIC.

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

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio

All FDIC-Insured Institutions

0

50

100

150

200

250

300

350

400

450

0

20

40

60

80

100

120

140

160

180

 Loan-Loss Reserves ($) 

 Noncurrent Loans ($)

 Noncurrents Adjusted for GNMA Guaranteed Loans ($)

 Coverage Ratio (%) 

 Coverage Adjusted for GNMA Guaranteed Loans (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Coverage Ratio Rises to 

122.2 Percent

Loan-loss reserves rose by $303.7 million (0.2 percent) during the third quarter, as loan-loss 

provisions of $11.9 billion surpassed the $11.2 billion in NCOs. Almost 61 percent of all 

banks reported a quarterly increase in loan-loss reserves. At the 713 banks that itemize their 

loan-loss reserves and hold almost 91 percent of total industry loan-loss reserves, losses on 

credit cards rose by $813.9 million (2.1 percent), while residential real estate losses declined 

by $655.8 million (4.9 percent). With a $3.6 billion reduction in noncurrent loan balances, 

the coverage ratio (loan-loss reserves to noncurrent loan balances) rose to 122.2 percent, 

the highest level since first quarter 2007. This marks the sixth consecutive quarter that the 

industry’s coverage ratio was above 100 percent.

Equity Capital Increases 

From the Previous Quarter

Equity capital grew by $13.5 billion (0.7 percent) from the previous quarter. Decline in 

market value for available-for-sale securities limited the growth, as unrealized losses rose by 

$11.3 billion (28.1 percent) to $51.5 billion during the quarter. The unrealized losses on available-for-sale securities were 2 percent of their amortized cost, the highest loss level since first 

quarter 2009. Declared dividends totaled $43.8 billion, an increase of $7.9 billion (22 percent) 

from the year before. At the end of the quarter, 99.6 percent of all insured institutions, which 

account for 99.98 percent of total industry assets, met or exceeded the requirements for the 

well capitalized category, as defined for Prompt Corrective Action purposes.

Total Assets Increase 

Despite the Decline in 

Available-For-Sale 

Securities

Total assets increased by $140 billion (0.8 percent) from the previous quarter. The investment securities portfolio declined by $3.2 billion (0.1 percent) from the second quarter, as 

the increase in held-to-maturity securities (up $32.6 billion, or 3.1 percent) was offset by a 

decline in available-for-sale securities (down $36.2 billion, or 1.4 percent). State and municipal securities declined by $14.1 billion (4.1 percent), marking a third consecutive quarterly 

decline.

Held-to-Maturity Securities

Available-for-Sale Securities

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-84.3 -100

-80

-60

-40

-20

0

20

40

60

80

2013 2014 2015 2016 2017 2018

Chart 5

Quarterly Change in Loan Balances 

All FDIC-Insured Institutions

Source: FDIC.

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

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

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

for the quarter absent this change in accounting standards. 

$ Billions Percent

-300

-200

-100

0

100

200

300

-10

-8

-6

-4

-2

0

2

4

6

8

Quarterly Change in Loans   12-Month Growth Rate

82.7

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 6
2 0 1 8  •  Volume 1 2  • Number 4

4 FDIC QUARTERLY

Loan and Lease Balances 

Expand 4 Percent From a 

Year Ago

With close to 72 percent of all banks reporting increases in loan and lease balances from 

the previous quarter, aggregate balances grew by $82.7 billion (0.8 percent). All major 

loan categories registered quarterly increases.3 Consumer loans, which include credit 

card balances, had the largest dollar increase (up 32.4 billion, or 2 percent). Over the past 

12 months, aggregate loan and lease balances rose by $382.4 billion (4 percent), a slight 

decline from the 4.2 percent annual growth rate reported last quarter. All major loan categories reported annual increases, led by commercial and industrial loans (up $98.7 billion, 

or 5 percent) and consumer loans, which includes credit card balances (up $88 billion, or 

5.5 percent).

Deposits Increase From the 

Previous Quarter

Total deposits rose by $105 billion (0.8 percent) from the previous quarter. Interest-bearing 

deposits increased by $159.3 billion (1.8 percent), while noninterest-bearing deposits declined 

by $72.9 billion (2.3 percent), the largest quarterly dollar decline since first quarter 2013. 

Nondeposit liabilities increased by $21.5 billion (1 percent) from the second quarter, as trading liabilities grew by $20.8 billion (8.7 percent) and other liabilities rose by $17.5 billion 

(4.5 percent). Federal Home Loan Bank advances declined by $30.6 billion (5.2 percent).

One New Charter Is Added 

in Third Quarter 2018

The number of FDIC-insured commercial banks and savings institutions fell from 5,542 to 

5,477 during the three months ended September 30. One new charter was added during the 

third quarter, 60 institutions were absorbed by mergers, and there were no bank failures. 

The number of banks on the FDIC’s “Problem Bank List” declined from 82 to 71, the lowest 

number since third quarter 2007. Total assets of problem banks declined from $54.4 billion 

to $53.3 billion.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

Source: FDIC.

Number Assets ($ Billions)

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

0

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

300

350

400

450

500

Number of Problem Banks

Assets of Problem Banks 

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 7

3 Major loan categories include commercial and industrial loans, residential mortgage loans, consumer loans, and nonfarm 

nonresidential loans. Consumer loans include credit card loans, automobile loans, and all other consumer loans.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2018** 2017** 2017 2016 2015 2014 2013

Return on assets (%) 1.36 1.10 0.97 1.04 1.04 1.01 1.07

Return on equity (%) 12.05 9.77 8.61 9.29 9.29 9.01 9.54

Core capital (leverage) ratio (%) 9.77 9.70 9.63 9.48 9.59 9.44 9.40

Noncurrent assets plus other real estate owned to assets (%) 0.62 0.73 0.72 0.86 0.97 1.20 1.63

Net charge-offs to loans (%) 0.48 0.48 0.50 0.47 0.44 0.49 0.69

Asset growth rate (%) 2.50 2.84 3.79 5.09 2.66 5.59 1.94

Net interest margin (%) 3.38 3.23 3.25 3.13 3.07 3.14 3.26

Net operating income growth (%) 28.72 9.68 -3.25 4.57 7.11 -0.73 12.82

Number of institutions reporting 5,477 5,738 5,670 5,913 6,182 6,509 6,812

Commercial banks 4,774 4,971 4,918 5,112 5,338 5,607 5,847

Savings institutions 703 767 752 801 844 902 965

Percentage of unprofitable institutions (%) 3.30 3.90 5.61 4.46 4.80 6.27 8.16

Number of problem institutions 71 104 95 123 183 291 467

Assets of problem institutions (in billions) $53 $16 $14 $28 $47 $87 $153

Number of failed institutions 0 6 8 5 8 18 24

* Excludes insured branches of foreign banks (IBAs).

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

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

(dollar figures in millions)  3rd Quarter

2018

2nd Quarter

2018

3rd Quarter

2017

%Change 

17Q3-18Q3

Number of institutions reporting 5,477 5,542 5,738 -4.6

Total employees (full-time equivalent) 2,070,684 2,077,035 2,084,080 -0.6

CONDITION DATA

Total assets $17,672,777 $17,532,824 $17,242,461 2.5

Loans secured by real estate 4,863,210 4,831,924 4,730,489 2.8

 1-4 Family residential mortgages 2,112,280 2,090,427 2,042,017 3.4

 Nonfarm nonresidential 1,427,084 1,421,835 1,377,485 3.6

 Construction and development 350,878 346,909 330,919 6.0

 Home equity lines 381,638 389,048 417,297 -8.6

Commercial & industrial loans 2,087,325 2,076,565 1,988,590 5.0

Loans to individuals 1,690,634 1,658,212 1,602,624 5.5

 Credit cards 856,327 837,186 795,424 7.7

Farm loans 82,355 79,844 80,882 1.8

Other loans & leases 1,218,111 1,212,445 1,156,415 5.3

Less: Unearned income 2,330 2,346 2,059 13.2

Total loans & leases 9,939,305 9,856,644 9,556,941 4.0

Less: Reserve for losses 123,724 123,420 123,504 0.2

Net loans and leases 9,815,581 9,733,223 9,433,437 4.1

Securities 3,630,097 3,633,322 3,615,280 0.4

Other real estate owned 7,187 7,612 9,099 -21.0

Goodwill and other intangibles 397,110 391,770 378,111 5.0

All other assets 3,822,802 3,766,897 3,806,534 0.4

Total liabilities and capital 17,672,777 17,532,824 17,242,461 2.5

Deposits 13,573,676 13,468,725 13,219,299 2.7

 Domestic office deposits 12,321,840 12,235,437 11,919,815 3.4

 Foreign office deposits 1,251,835 1,233,288 1,299,484 -3.7

Other borrowed funds 1,497,300 1,494,288 1,474,114 1.6

Subordinated debt 68,844 67,197 75,110 -8.3

All other liabilities 535,705 518,828 518,543 3.3

Total equity capital (includes minority interests) 1,997,252 1,983,786 1,955,395 2.1

 Bank equity capital 1,993,760 1,980,305 1,950,359 2.2

Loans and leases 30-89 days past due 63,203 59,365 64,083 -1.4

Noncurrent loans and leases 101,259 104,834 114,840 -11.8

Restructured loans and leases 56,400 57,614 61,547 -8.4

Mortgage-backed securities 2,157,652 2,156,909 2,117,153 1.9

Earning assets 15,959,373 15,852,110 15,586,357 2.4

FHLB Advances 553,369 583,974 575,406 -3.8

Unused loan commitments 7,837,284 7,736,524 7,409,672 5.8

Trust assets 20,495,983 20,369,312 19,708,519 4.0

Assets securitized and sold 626,047 642,731 699,500 -10.5

Notional amount of derivatives 209,754,241 209,828,278 190,609,917 10.0

INCOME DATA

First Three 

Quarters 2018

First Three 

Quarters 2017 %Change

3rd Quarter 

2018

3rd Quarter 

2017

%Change 

17Q3-18Q3

Total interest income $484,904 $423,152 14.6 $169,021 $147,383 14.7

Total interest expense 83,177 52,334 58.9 31,927 19,840 60.9

Net interest income 401,727 370,818 8.3 137,094 127,543 7.5

Provision for loan and lease losses 35,971 37,539 -4.2 11,863 13,575 -12.6

Total noninterest income 201,949 193,029 4.6 66,658 64,237 3.8

Total noninterest expense 341,862 325,900 4.9 113,594 109,249 4.0

Securities gains (losses) 558 2,107 -73.5 130 825 -84.2

Applicable income taxes 48,050 62,861 -23.6 16,349 21,879 -25.3

Extraordinary gains, net* -227 135 N/M -39 119 N/M

Total net income (includes minority interests) 178,125 139,788 27.4 62,037 48,021 29.2

 Bank net income 177,906 139,523 27.5 61,967 47,934 29.3

Net charge-offs 34,894 33,646 3.7 11,163 10,991 1.6

Cash dividends 112,078 91,456 22.6 43,815 35,924 22.0

Retained earnings 65,828 48,066 37.0 18,152 12,010 51.1

Net operating income 177,904 138,212 28.7 61,973 47,340 30.9

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 8  •  Volume 1 2  • Number 4

6 FDIC QUARTERLY

TABLE III-A. Third Quarter 2018, All FDIC-Insured Institutions

Asset Concentration Groups*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,477 12 5 1,367 2,877 408 70 232 454 52

Commercial banks 4,774 11 5 1,354 2,577 114 51 207 415 40

Savings institutions 703 1 0 13 300 294 19 25 39 12

Total assets (in billions) $17,672.8 $640.0 $4,245.9 $285.3 $6,232.7 $352.0 $212.8 $35.7 $78.3 $5,590.1

Commercial banks 16,480.4 549.8 4,245.9 279.1 5,766.0 105.8 107.2 31.3 70.2 5,325.0

Savings institutions 1,192.4 90.2 0.0 6.3 466.7 246.2 105.6 4.4 8.1 265.1

Total deposits (in billions) 13,573.7 377.0 3,072.2 233.6 4,883.0 274.5 173.7 28.2 66.2 4,465.3

Commercial banks 12,631.6 312.9 3,072.2 230.5 4,533.3 85.4 85.6 25.3 59.7 4,226.6

Savings institutions 942.1 64.1 0.0 3.1 349.7 189.1 88.1 2.9 6.4 238.7

Bank net income (in millions) 61,967 4,885 12,785 1,005 20,263 1,085 734 343 238 20,628

Commercial banks 58,148 4,336 12,785 961 19,063 451 457 154 222 19,718

Savings institutions 3,819 549 0 44 1,200 635 276 189 16 910

Performance Ratios (annualized, %)

Yield on earning assets 4.25 12.79 3.41 4.65 4.37 3.78 5.16 3.46 4.28 3.73

Cost of funding earning assets 0.80 2.05 0.82 0.75 0.78 0.79 0.79 0.46 0.55 0.68

Net interest margin 3.45 10.74 2.59 3.89 3.59 3.00 4.37 3.00 3.73 3.05

Noninterest income to assets 1.52 3.75 1.91 0.64 1.08 1.27 1.26 8.98 1.06 1.48

Noninterest expense to assets 2.58 6.30 2.45 2.53 2.60 2.59 3.08 6.96 3.03 2.20

Loan and lease loss provision to assets 0.27 3.29 0.16 0.14 0.14 -0.02 0.52 0.12 0.10 0.17

Net operating income to assets 1.41 3.13 1.21 1.42 1.30 1.22 1.38 3.85 1.22 1.49

Pretax return on assets 1.78 4.05 1.57 1.60 1.61 1.57 1.86 4.66 1.39 1.88

Return on assets 1.41 3.09 1.21 1.42 1.31 1.24 1.38 3.85 1.21 1.48

Return on equity 12.48 20.19 12.08 12.54 10.95 11.27 13.10 22.75 10.12 13.37

Net charge-offs to loans and leases 0.45 3.70 0.44 0.13 0.17 0.01 0.69 0.21 0.14 0.37

Loan and lease loss provision to 

net charge-offs 106.27 112.64 96.93 157.06 120.73 -329.14 106.16 200.84 126.40 90.34

Efficiency ratio 55.12 45.50 58.04 58.86 59.16 62.42 55.41 59.28 66.76 50.96

% of unprofitable institutions 3.54 0.00 0.00 2.19 3.44 7.35 7.14 5.60 3.30 3.85

% of institutions with earnings gains 72.69 91.67 100.00 65.40 77.23 66.67 68.57 70.26 70.48 88.46

Structural Changes

New reporters 1 0 0 0 0 1 0 0 0 0

Institutions absorbed by mergers 60 0 0 12 43 4 1 0 0 0

Failed institutions 0 0 0 0 0 0 0 0 0 0

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%) 2017 1.12 2.21 1.01 1.34 1.13 0.97 1.23 3.06 0.98 1.07

 2015 1.03 2.83 0.84 0.37 1.00 0.57 1.08 2.56 0.76 1.08

 2013 0.99 3.38 0.52 1.24 0.99 0.92 1.04 1.98 0.85 1.07

Net charge-offs to loans & leases (%) 2017 0.46 3.75 0.54 0.10 0.20 0.03 0.56 0.25 0.15 0.40

 2015 0.40 2.61 0.49 0.08 0.20 0.12 0.58 0.19 0.18 0.37

 2013 0.60 2.91 0.86 0.09 0.35 0.30 0.68 0.46 0.31 0.42

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

FDIC QUARTERLY 7

TABLE III-A. Third Quarter 2018, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,477 1,335 3,369 635 129 9 671 633 1,180 1,397 1,193 403

Commercial banks 4,774 1,185 2,952 513 115 9 350 578 1,011 1,349 1,120 366

Savings institutions 703 150 417 122 14 0 321 55 169 48 73 37

Total assets (in billions) $17,672.8 $79.2 $1,107.7 $1,694.4 $6,036.1 $8,755.4 $3,275.4 $3,654.9 $3,996.3 $3,641.4 $1,119.5 $1,985.3

Commercial banks 16,480.4 70.6 951.4 1,341.2 5,361.8 8,755.4 2,832.3 3,555.2 3,890.1 3,598.4 981.1 1,623.2

Savings institutions 1,192.4 8.6 156.3 353.2 674.3 0.0 443.1 99.7 106.2 42.9 138.4 362.1

Total deposits (in billions) 13,573.7 65.5 922.6 1,353.9 4,583.4 6,648.3 2,477.5 2,880.0 2,938.9 2,798.6 909.3 1,569.5

Commercial banks 12,631.6 59.1 799.3 1,086.2 4,038.7 6,648.3 2,140.3 2,800.7 2,866.2 2,766.0 799.4 1,258.9

Savings institutions 942.1 6.5 123.2 267.7 544.7 0.0 337.1 79.3 72.6 32.6 109.8 310.6

Bank net income (in millions) 61,967 220 3,531 5,962 22,557 29,698 10,468 13,460 12,780 12,537 4,172 8,550

Commercial banks 58,148 196 3,050 4,992 20,212 29,698 9,385 13,205 12,411 12,422 3,733 6,991

Savings institutions 3,819 24 480 970 2,345 0 1,082 255 369 115 439 1,559

Performance Ratios (annualized, %)

Yield on earning assets 4.25 4.52 4.62 4.57 4.83 3.73 4.44 4.29 3.52 4.29 4.63 5.03

Cost of funding earning assets 0.80 0.60 0.71 0.78 0.92 0.74 0.98 0.71 0.71 0.85 0.66 0.87

Net interest margin 3.45 3.92 3.90 3.79 3.91 2.99 3.46 3.59 2.81 3.43 3.97 4.16

Noninterest income to assets 1.52 1.36 1.14 1.19 1.48 1.65 1.36 1.46 1.87 1.31 1.26 1.68

Noninterest expense to assets 2.58 3.58 3.14 2.76 2.68 2.40 2.52 2.52 2.62 2.45 3.00 2.75

Loan and lease loss provision to assets 0.27 0.14 0.14 0.16 0.46 0.18 0.35 0.27 0.09 0.26 0.17 0.57

Net operating income to assets 1.41 1.12 1.28 1.42 1.49 1.37 1.28 1.50 1.29 1.38 1.44 1.74

Pretax return on assets 1.78 1.26 1.50 1.77 1.91 1.73 1.60 1.87 1.66 1.71 1.80 2.28

Return on assets 1.41 1.11 1.28 1.42 1.50 1.36 1.28 1.48 1.29 1.38 1.50 1.74

Return on equity 12.48 8.28 11.26 12.03 12.33 12.91 10.16 12.34 12.33 13.49 12.87 15.44

Net charge-offs to loans and leases 0.45 0.18 0.13 0.19 0.65 0.41 0.55 0.53 0.19 0.48 0.24 0.68

Loan and lease loss provision to 

net charge-offs 106.27 124.71 152.89 123.47 113.81 90.52 111.84 87.21 97.61 101.02 107.41 134.58

Efficiency ratio 55.12 71.68 65.52 58.13 52.47 54.99 55.70 53.42 59.33 54.38 60.46 48.70

% of unprofitable institutions 3.54 8.76 2.14 0.79 0.00 0.00 3.43 6.00 3.47 2.58 3.19 4.47

% of institutions with earnings gains 72.69 61.50 73.79 86.14 91.47 100.00 78.84 76.30 71.69 67.29 73.01 77.42

Structural Changes

New reporters 1 0 1 0 0 0 0 0 0 0 0 1

Institutions absorbed by mergers 60 19 33 8 0 0 4 8 13 16 12 7

Failed institutions 0 0 0 0 0 0 0 0 0 0 0 0

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%) 2017 1.12 1.02 1.16 1.15 1.21 1.05 0.96 1.11 1.13 1.05 1.20 1.49

 2015 1.03 0.95 1.05 1.10 1.00 1.03 0.89 1.02 0.92 1.16 1.15 1.18

 2013 0.99 0.73 0.92 1.16 1.11 0.90 1.06 0.94 0.53 1.25 1.06 1.54

Net charge-offs to loans & leases (%) 2017 0.46 0.16 0.13 0.22 0.64 0.46 0.53 0.58 0.25 0.49 0.26 0.59

 2015 0.40 0.16 0.15 0.22 0.52 0.42 0.43 0.44 0.27 0.46 0.24 0.51

 2013 0.60 0.28 0.34 0.31 0.80 0.59 0.81 0.55 0.46 0.75 0.28 0.50

* See Table V-A (page 11) for explanations.
2 0 1 8  •  Volume 1 2  • Number 4

8 FDIC QUARTERLY

TABLE IV-A. First Three Quarters 2018, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,477 12 5 1,367 2,877 408 70 232 454 52

Commercial banks 4,774 11 5 1,354 2,577 114 51 207 415 40

Savings institutions 703 1 0 13 300 294 19 25 39 12

Total assets (in billions) $17,672.8 $640.0 $4,245.9 $285.3 $6,232.7 $352.0 $212.8 $35.7 $78.3 $5,590.1

Commercial banks 16,480.4 549.8 4,245.9 279.1 5,766.0 105.8 107.2 31.3 70.2 5,325.0

Savings institutions 1,192.4 90.2 0.0 6.3 466.7 246.2 105.6 4.4 8.1 265.1

Total deposits (in billions) 13,573.7 377.0 3,072.2 233.6 4,883.0 274.5 173.7 28.2 66.2 4,465.3

Commercial banks 12,631.6 312.9 3,072.2 230.5 4,533.3 85.4 85.6 25.3 59.7 4,226.6

Savings institutions 942.1 64.1 0.0 3.1 349.7 189.1 88.1 2.9 6.4 238.7

Bank net income (in millions) 177,906 13,409 38,611 2,855 57,991 3,016 2,290 1,021 683 58,031

Commercial banks 167,080 11,823 38,611 2,750 54,555 1,275 1,375 459 635 55,597

Savings institutions 10,825 1,586 0 104 3,437 1,742 914 561 48 2,434

Performance Ratios (annualized, %)

Yield on earning assets 4.09 12.27 3.24 4.48 4.22 3.66 4.94 3.32 4.14 3.59

Cost of funding earning assets 0.70 1.87 0.71 0.67 0.68 0.70 0.69 0.42 0.50 0.59

Net interest margin 3.38 10.40 2.54 3.81 3.54 2.96 4.25 2.91 3.64 3.00

Noninterest income to assets 1.54 3.63 1.98 0.63 1.10 1.24 1.32 8.80 1.04 1.48

Noninterest expense to assets 2.61 6.19 2.48 2.52 2.60 2.58 2.97 6.81 2.99 2.25

Loan and lease loss provision to assets 0.27 3.35 0.17 0.14 0.14 -0.01 0.52 0.08 0.11 0.17

Net operating income to assets 1.36 2.85 1.21 1.35 1.26 1.12 1.46 3.84 1.16 1.39

Pretax return on assets 1.72 3.72 1.56 1.52 1.58 1.50 1.92 4.58 1.33 1.78

Return on assets 1.36 2.83 1.22 1.35 1.27 1.14 1.46 3.84 1.16 1.39

Return on equity 12.05 18.70 12.26 12.00 10.60 10.35 14.00 22.62 9.73 12.56

Net charge-offs to loans and leases 0.48 3.90 0.50 0.13 0.17 0.01 0.74 0.14 0.13 0.38

Loan and lease loss provision to 

net charge-offs 103.09 108.85 92.22 161.76 120.95 -130.07 99.33 213.63 148.85 87.55

Efficiency ratio 56.01 46.12 58.40 59.82 59.61 63.19 53.92 59.28 67.34 52.90

% of unprofitable institutions 3.30 0.00 0.00 2.41 3.02 6.37 4.29 6.03 3.74 1.92

% of institutions with earnings gains 76.72 91.67 100.00 70.96 81.75 68.14 74.29 73.28 70.04 88.46

Condition Ratios (%)

Earning assets to total assets 90.30 92.53 87.41 93.29 90.92 94.62 95.25 91.92 92.90 90.91

Loss allowance to:

Loans and leases 1.24 4.43 1.30 1.39 1.00 0.69 1.04 1.57 1.27 1.06

Noncurrent loans and leases 122.19 312.23 134.58 123.85 124.51 32.00 156.77 116.09 119.59 85.92

Noncurrent assets plus

other real estate owned to assets 0.62 1.13 0.37 0.89 0.65 1.39 0.49 0.46 0.77 0.65

Equity capital ratio 11.28 15.27 9.98 11.32 11.96 11.00 10.67 16.85 12.08 11.06

Core capital (leverage) ratio 9.77 13.48 8.91 11.26 10.27 10.72 10.86 16.75 12.40 9.17

Common equity tier 1 capital ratio 13.17 13.67 13.45 14.63 12.44 21.12 17.22 36.98 20.97 13.04

Tier 1 risk-based capital ratio 13.25 13.78 13.55 14.64 12.53 21.14 17.46 37.00 20.99 13.11

Total risk-based capital ratio 14.62 15.78 14.93 15.76 13.80 22.00 18.48 38.03 22.11 14.54

Net loans and leases to deposits 72.31 128.98 50.76 83.76 89.69 78.60 87.19 34.60 67.14 62.11

Net loans to total assets 55.54 75.98 36.73 68.59 70.27 61.30 71.18 27.34 56.72 49.61

Domestic deposits to total assets 69.72 57.94 48.04 81.88 78.06 77.70 81.62 79.01 84.48 76.40

Structural Changes

New reporters 6 0 0 0 0 1 0 5 0 0

Institutions absorbed by mergers 189 1 0 24 151 6 2 0 3 2

Failed institutions 0 0 0 0 0 0 0 0 0 0

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions 2017 5,738 11 5 1,422 2,943 445 62 271 520 59

 2015 6,270 14 4 1,494 3,125 515 56 337 663 62

 2013 6,891 17 4 1,536 3,433 597 47 400 791 66

Total assets (in billions) 2017 $17,242.5 $518.3 $4,205.0 $285.0 $5,867.7 $366.0 $260.4 $46.0 $90.6 $5,603.4

 2015 15,800.1 519.5 3,836.6 274.8 5,508.8 416.3 184.3 54.9 118.3 4,886.7

 2013 14,603.6 596.3 3,729.4 243.9 4,773.6 554.0 149.3 63.9 137.9 4,355.3

Return on assets (%) 2017 1.10 2.09 0.97 1.24 1.06 1.02 1.15 2.99 0.96 1.12

 2015 1.05 2.91 0.88 0.91 0.99 0.74 1.12 2.60 0.50 1.08

 2013 1.06 3.26 0.83 1.19 0.91 0.98 1.28 1.74 0.87 1.10

Net charge-offs to loans & leases (%) 2017 0.48 3.90 0.56 0.14 0.21 0.09 0.60 0.19 0.14 0.39

 2015 0.42 2.72 0.56 0.08 0.19 0.13 0.58 0.18 0.17 0.38

 2013 0.72 3.21 1.03 0.11 0.44 0.37 0.77 0.61 0.32 0.51

Noncurrent assets plus 

OREO to assets (%) 2017 0.73 1.19 0.48 0.86 0.74 1.56 0.37 0.54 0.86 0.80

 2015 0.99 0.83 0.72 0.75 0.96 1.95 1.00 0.70 1.16 1.19

 2013 1.75 0.90 1.13 0.98 1.81 2.16 0.66 0.95 1.56 2.37

Equity capital ratio (%) 2017 11.31 15.69 9.97 11.56 12.07 11.28 10.10 15.88 11.91 11.12

 2015 11.33 14.83 9.98 11.49 11.81 11.63 10.22 15.52 12.10 11.42

 2013 11.11 14.89 8.80 11.01 11.81 11.40 9.64 13.71 11.34 11.77

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

FDIC QUARTERLY 9

TABLE IV-A. First Three Quarters 2018, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,477 1,335 3,369 635 129 9 671 633 1,180 1,397 1,193 403

Commercial banks 4,774 1,185 2,952 513 115 9 350 578 1,011 1,349 1,120 366

Savings institutions 703 150 417 122 14 0 321 55 169 48 73 37

Total assets (in billions) $17,672.8 $79.2 $1,107.7 $1,694.4 $6,036.1 $8,755.4 $3,275.4 $3,654.9 $3,996.3 $3,641.4 $1,119.5 $1,985.3

Commercial banks 16,480.4 70.6 951.4 1,341.2 5,361.8 8,755.4 2,832.3 3,555.2 3,890.1 3,598.4 981.1 1,623.2

Savings institutions 1,192.4 8.6 156.3 353.2 674.3 0.0 443.1 99.7 106.2 42.9 138.4 362.1

Total deposits (in billions) 13,573.7 65.5 922.6 1,353.9 4,583.4 6,648.3 2,477.5 2,880.0 2,938.9 2,798.6 909.3 1,569.5

Commercial banks 12,631.6 59.1 799.3 1,086.2 4,038.7 6,648.3 2,140.3 2,800.7 2,866.2 2,766.0 799.4 1,258.9

Savings institutions 942.1 6.5 123.2 267.7 544.7 0.0 337.1 79.3 72.6 32.6 109.8 310.6

Bank net income (in millions) 177,906 629 10,184 16,416 64,486 86,191 29,618 38,729 38,149 34,964 11,756 24,690

Commercial banks 167,080 550 8,788 13,809 57,741 86,191 26,570 38,026 37,217 34,623 10,321 20,323

Savings institutions 10,825 78 1,396 2,606 6,744 0 3,048 704 932 341 1,434 4,367

Performance Ratios (annualized, %)

Yield on earning assets 4.09 4.36 4.46 4.41 4.65 3.57 4.25 4.16 3.37 4.11 4.45 4.85

Cost of funding earning assets 0.70 0.55 0.63 0.68 0.81 0.64 0.86 0.62 0.61 0.75 0.57 0.76

Net interest margin 3.38 3.82 3.83 3.72 3.84 2.94 3.39 3.54 2.75 3.36 3.89 4.09

Noninterest income to assets 1.54 1.36 1.13 1.18 1.51 1.68 1.37 1.48 1.93 1.33 1.26 1.68

Noninterest expense to assets 2.61 3.55 3.11 2.77 2.70 2.44 2.54 2.55 2.65 2.50 2.97 2.74

Loan and lease loss provision to assets 0.27 0.13 0.13 0.18 0.46 0.18 0.36 0.28 0.11 0.26 0.16 0.55

Net operating income to assets 1.36 1.07 1.24 1.34 1.45 1.31 1.21 1.44 1.29 1.27 1.41 1.72

Pretax return on assets 1.72 1.20 1.46 1.67 1.86 1.68 1.52 1.83 1.64 1.62 1.72 2.24

Return on assets 1.36 1.06 1.25 1.33 1.45 1.32 1.21 1.43 1.29 1.28 1.42 1.72

Return on equity 12.05 7.96 10.97 11.33 11.89 12.52 9.70 11.90 12.36 12.61 12.31 15.05

Net charge-offs to loans and leases 0.48 0.17 0.11 0.21 0.69 0.43 0.59 0.54 0.23 0.50 0.22 0.71

Loan and lease loss provision to 

net charge-offs 103.09 131.15 170.25 121.25 108.54 89.72 108.60 89.52 92.89 97.48 108.17 125.16

Efficiency ratio 56.01 72.51 66.07 59.19 53.17 56.07 56.69 54.21 59.79 56.12 60.87 49.12

% of unprofitable institutions 3.30 8.46 1.90 0.63 0.00 0.00 3.28 5.21 4.24 2.22 2.43 3.97

% of institutions with earnings gains 76.72 65.84 77.98 89.45 92.25 100.00 83.61 81.67 72.97 73.51 76.36 80.65

Condition Ratios (%)

Earning assets to total assets 90.30 92.62 93.19 92.40 91.01 89.02 89.74 89.81 89.12 90.26 91.39 94.01

Loss allowance to:

Loans and leases 1.24 1.39 1.25 1.10 1.35 1.19 1.29 1.23 1.10 1.29 1.06 1.46

Noncurrent loans and leases 122.19 110.83 149.68 134.28 139.27 103.32 130.85 114.55 112.07 103.83 109.25 210.13

Noncurrent assets plus

other real estate owned to assets 0.62 1.01 0.77 0.68 0.63 0.57 0.61 0.66 0.54 0.71 0.76 0.45

Equity capital ratio 11.28 13.48 11.41 11.85 12.21 10.49 12.67 11.95 10.38 10.21 11.68 11.31

Core capital (leverage) ratio 9.77 13.64 11.46 10.96 10.50 8.77 10.66 9.53 9.22 9.19 10.44 10.51

Common equity tier 1 capital ratio 13.17 21.47 15.66 14.20 13.24 12.48 13.63 12.78 12.96 12.43 13.39 14.80

Tier 1 risk-based capital ratio 13.25 21.51 15.69 14.22 13.40 12.53 13.70 12.88 13.00 12.51 13.49 14.93

Total risk-based capital ratio 14.62 22.57 16.78 15.20 14.82 13.98 15.12 14.15 14.17 14.38 14.54 16.00

Net loans and leases to deposits 72.31 72.44 82.65 88.41 80.61 61.88 75.24 71.54 68.03 69.25 81.01 77.57

Net loans to total assets 55.54 59.95 68.84 70.64 61.21 46.99 56.91 56.37 50.03 53.22 65.80 61.32

Domestic deposits to total assets 69.72 82.76 83.28 79.65 73.22 63.56 70.02 76.06 64.09 61.10 81.17 78.27

Structural Changes

New reporters 6 5 1 0 0 0 0 2 0 0 1 3

Institutions absorbed by mergers 189 52 110 26 1 0 27 26 31 42 45 18

Failed institutions 0 0 0 0 0 0 0 0 0 0 0 0

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions 2017 5,738 1,444 3,538 631 116 9 705 683 1,221 1,449 1,246 434

 2015 6,270 1,752 3,812 596 102 8 780 778 1,351 1,559 1,319 483

 2013 6,891 2,116 4,107 561 100 7 854 875 1,480 1,675 1,454 553

Total assets (in billions) 2017 $17,242.5 $85.7 $1,154.8 $1,729.8 $5,574.9 $8,697.3 $3,186.2 $3,584.3 $3,902.6 $3,687.4 $1,067.3 $1,814.6

 2015 15,800.1 102.7 1,194.9 1,642.8 5,053.2 7,806.6 3,018.8 3,324.0 3,531.9 3,436.7 940.8 1,548.0

 2013 14,603.6 123.5 1,245.5 1,453.0 4,726.0 7,055.7 2,876.9 2,981.8 3,398.6 3,166.6 864.0 1,315.8

Return on assets (%) 2017 1.10 0.97 1.11 1.16 1.13 1.06 0.94 1.10 1.05 1.07 1.21 1.45

 2015 1.05 0.89 1.01 1.15 1.01 1.06 0.90 1.03 0.94 1.18 1.11 1.28

 2013 1.06 0.76 0.92 1.18 1.03 1.08 0.82 1.03 0.91 1.26 1.12 1.54

Net charge-offs to loans & leases (%) 2017 0.48 0.17 0.12 0.21 0.68 0.46 0.55 0.58 0.28 0.49 0.26 0.64

 2015 0.42 0.15 0.13 0.21 0.53 0.46 0.46 0.48 0.26 0.50 0.20 0.49

 2013 0.72 0.30 0.34 0.38 0.94 0.73 0.97 0.69 0.50 0.91 0.33 0.58

Noncurrent assets plus 

OREO to assets (%) 2017 0.73 1.09 0.88 0.71 0.70 0.72 0.64 0.86 0.64 0.85 0.83 0.48

 2015 0.99 1.30 1.20 0.99 0.74 1.12 0.76 1.19 0.96 1.22 1.07 0.53

 2013 1.75 1.83 1.98 1.96 1.10 2.09 1.20 2.48 1.54 2.08 1.72 1.03

Equity capital ratio (%) 2017 11.31 13.31 11.42 11.89 12.23 10.57 12.48 12.15 10.45 10.08 11.47 11.86

 2015 11.33 12.83 11.35 11.92 12.19 10.63 11.99 12.44 10.35 10.28 11.26 12.28

 2013 11.11 11.82 10.83 11.76 12.44 10.12 12.00 12.30 9.13 10.64 10.87 12.85

* See Table V-A (page 11) for explanations.
2 0 1 8  •  Volume 1 2  • Number 4

10 FDIC QUARTERLY

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

Asset Concentration Groups*

September 30, 2018 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.61 1.07 0.76 0.61 0.43 0.72 0.46 1.28 1.07 0.93

Construction and development 0.37 13.52 0.09 0.84 0.36 0.33 0.19 1.28 0.78 0.41

Nonfarm nonresidential 0.24 0.00 0.28 0.58 0.24 0.19 0.67 0.99 0.72 0.18

Multifamily residential real estate 0.09 6.89 0.01 0.37 0.10 0.10 0.14 0.33 0.37 0.11

Home equity loans 0.66 0.00 1.13 0.33 0.52 0.43 0.47 0.65 0.62 0.76

Other 1-4 family residential 1.01 0.20 1.07 0.99 0.77 0.84 0.44 1.59 1.36 1.34

Commercial and industrial loans 0.28 0.79 0.28 0.92 0.30 0.47 0.33 0.87 1.36 0.18

Loans to individuals 1.46 1.59 1.06 1.25 1.39 1.09 0.80 1.93 1.55 1.76

Credit card loans 1.39 1.60 1.14 1.12 1.36 0.89 0.81 2.41 2.54 1.22

Other loans to individuals 1.52 1.36 0.89 1.26 1.39 1.11 0.80 1.86 1.52 2.07

All other loans and leases (including farm) 0.24 0.62 0.34 0.53 0.21 0.36 0.18 0.67 0.44 0.14

Total loans and leases 0.64 1.52 0.61 0.65 0.46 0.70 0.69 1.27 1.10 0.75

Percent of Loans Noncurrent**

All real estate loans 1.38 2.67 1.79 1.08 0.83 2.36 1.38 1.48 1.19 2.34

Construction and development 0.42 0.23 0.17 0.60 0.45 0.31 0.56 1.54 0.95 0.35

Nonfarm nonresidential 0.58 50.72 0.54 0.88 0.56 0.48 1.25 1.28 1.33 0.61

Multifamily residential real estate 0.14 0.00 0.07 0.33 0.15 0.35 0.84 1.85 1.18 0.15

Home equity loans 2.31 50.41 3.95 0.42 1.22 1.01 1.77 0.45 0.61 3.68

Other 1-4 family residential 2.16 0.82 2.35 0.85 1.36 2.83 1.36 1.57 1.17 3.08

Commercial and industrial loans 0.73 0.63 0.65 1.33 0.90 0.71 0.49 1.15 0.89 0.50

Loans to individuals 0.94 1.49 0.86 0.58 0.82 0.45 0.48 1.18 0.50 0.67

Credit card loans 1.34 1.54 1.11 0.38 1.14 0.73 1.20 1.34 1.11 1.12

Other loans to individuals 0.54 0.59 0.30 0.60 0.79 0.42 0.30 1.16 0.48 0.41

All other loans and leases (including farm) 0.24 0.67 0.08 1.21 0.34 0.22 0.17 0.45 0.66 0.20

Total loans and leases 1.02 1.42 0.96 1.12 0.80 2.16 0.66 1.35 1.06 1.23

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.01 0.13 -0.04 0.02 0.02 -0.02 -0.02 0.07 0.03 0.01

Construction and development -0.02 0.03 0.02 -0.04 -0.02 -0.05 -0.06 0.43 0.02 -0.05

Nonfarm nonresidential 0.03 0.00 0.00 0.03 0.03 -0.01 0.11 0.01 0.00 0.01

Multifamily residential real estate 0.00 0.00 0.00 -0.02 0.00 -0.01 -0.01 -0.01 0.01 0.00

Home equity loans 0.04 62.83 0.05 -0.08 0.07 -0.34 -0.04 0.07 0.06 0.03

Other 1-4 family residential 0.00 0.02 -0.08 0.04 0.02 0.00 -0.02 0.06 0.05 0.01

Commercial and industrial loans 0.27 2.33 0.20 0.34 0.26 0.06 0.55 0.01 0.40 0.18

Loans to individuals 2.34 4.06 2.63 0.51 1.07 1.07 1.00 0.76 0.61 1.79

Credit card loans 3.78 4.14 3.48 1.94 4.06 2.42 2.75 1.96 1.97 3.27

Other loans to individuals 0.86 2.44 0.80 0.38 0.79 0.95 0.57 0.64 0.56 0.93

All other loans and leases (including farm) 0.12 0.71 0.05 0.26 0.15 0.18 0.05 0.11 0.30 0.14

Total loans and leases 0.48 3.90 0.50 0.13 0.17 0.01 0.74 0.14 0.13 0.38

Loans Outstanding (in billions)

All real estate loans $4,863.2 $0.7 $579.7 $122.9 $2,731.9 $195.7 $33.2 $7.0 $33.9 $1,158.4

Construction and development 350.9 0.0 16.7 7.4 264.7 6.2 0.6 0.6 2.2 52.5

Nonfarm nonresidential 1,427.1 0.0 53.1 33.8 1,060.2 17.8 2.2 2.3 7.8 249.9

Multifamily residential real estate 425.9 0.0 78.8 4.1 290.2 4.7 0.3 0.2 0.8 46.9

Home equity loans 381.6 0.0 47.2 2.4 196.7 11.2 3.7 0.2 1.3 118.8

Other 1-4 family residential 2,112.3 0.6 334.8 28.9 871.9 154.8 26.1 3.3 18.8 672.9

Commercial and industrial loans 2,087.3 44.3 340.7 22.9 997.4 5.8 7.3 1.3 4.1 663.4

Loans to individuals 1,690.6 462.8 275.3 6.7 352.4 4.5 109.1 1.1 4.2 474.4

Credit card loans 856.3 440.6 188.6 0.6 29.4 0.3 21.1 0.1 0.1 175.4

Other loans to individuals 834.3 22.2 86.7 6.1 323.0 4.1 88.0 1.0 4.0 299.1

All other loans and leases (including farm) 1,300.5 0.9 384.7 46.0 343.4 11.4 3.5 0.5 2.8 507.1

Total loans and leases (plus unearned income) 9,941.6 508.8 1,580.5 198.5 4,425.1 217.3 153.2 9.9 45.0 2,803.3

Memo: Other Real Estate Owned (in millions)

All other real estate owned 7,186.7 0.3 443.3 298.7 4,745.4 188.4 25.8 30.7 120.4 1,333.6

Construction and development 1,998.3 0.0 5.2 69.7 1,700.1 47.9 5.3 10.4 21.1 138.5

Nonfarm nonresidential 2,101.7 0.0 43.0 94.1 1,581.3 20.2 5.5 11.9 45.9 299.8

Multifamily residential real estate 98.6 0.0 0.0 10.6 85.5 1.2 0.0 0.0 0.2 1.1

1-4 family residential 2,782.9 0.3 378.1 52.4 1,272.3 116.6 15.0 8.0 48.2 891.9

Farmland 187.2 0.0 0.0 71.9 106.4 2.3 0.0 0.4 4.9 1.3

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

September 30, 2018 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.61 1.09 0.55 0.32 0.51 0.88 0.47 0.70 0.62 0.90 0.62 0.27

Construction and development 0.37 0.44 0.47 0.45 0.31 0.31 0.46 0.27 0.29 0.43 0.39 0.35

Nonfarm nonresidential 0.24 0.90 0.40 0.23 0.20 0.18 0.27 0.18 0.27 0.27 0.31 0.14

Multifamily residential real estate 0.09 0.73 0.18 0.09 0.09 0.04 0.09 0.17 0.07 0.10 0.11 0.05

Home equity loans 0.66 0.59 0.48 0.41 0.54 0.85 0.52 0.73 0.77 0.77 0.51 0.33

Other 1-4 family residential 1.01 1.54 0.80 0.47 0.90 1.30 0.77 1.16 0.92 1.45 1.27 0.41

Commercial and industrial loans 0.28 1.35 0.63 0.49 0.27 0.20 0.22 0.22 0.28 0.26 0.52 0.36

Loans to individuals 1.46 1.91 1.43 1.40 1.39 1.55 1.19 2.08 0.96 1.34 0.96 1.54

Credit card loans 1.39 4.82 2.29 3.19 1.52 1.18 1.22 1.58 1.17 1.22 0.78 1.84

Other loans to individuals 1.52 1.85 1.37 1.04 1.22 1.91 1.16 2.57 0.87 1.56 1.03 1.27

All other loans and leases (including farm) 0.24 0.48 0.48 0.29 0.16 0.25 0.12 0.15 0.41 0.22 0.18 0.25

Total loans and leases 0.64 1.09 0.59 0.41 0.62 0.72 0.53 0.78 0.55 0.71 0.60 0.60

Percent of Loans Noncurrent** 

All real estate loans 1.38 1.21 0.81 0.72 1.12 2.21 1.17 1.65 1.52 2.01 1.00 0.45

Construction and development 0.42 0.62 0.83 0.50 0.28 0.27 0.51 0.58 0.49 0.32 0.31 0.30

Nonfarm nonresidential 0.58 1.35 0.73 0.61 0.52 0.52 0.72 0.50 0.65 0.60 0.58 0.38

Multifamily residential real estate 0.14 0.43 0.39 0.15 0.12 0.10 0.14 0.17 0.15 0.18 0.19 0.08

Home equity loans 2.31 0.70 0.54 0.57 1.21 3.83 2.32 2.85 2.17 2.86 1.01 0.60

Other 1-4 family residential 2.16 1.23 0.87 1.05 1.96 2.95 1.84 2.45 2.17 3.15 2.01 0.54

Commercial and industrial loans 0.73 1.84 1.00 1.42 0.79 0.51 0.77 0.50 0.61 0.75 1.23 1.04

Loans to individuals 0.94 0.93 0.68 0.93 1.10 0.78 1.01 1.12 0.51 0.92 0.79 1.01

Credit card loans 1.34 2.58 1.66 3.14 1.47 1.11 1.28 1.37 1.09 1.17 1.17 1.72

Other loans to individuals 0.54 0.90 0.62 0.48 0.64 0.44 0.60 0.87 0.27 0.49 0.62 0.36

All other loans and leases (including farm) 0.24 1.17 0.87 0.42 0.36 0.12 0.32 0.15 0.18 0.27 0.31 0.37

Total loans and leases 1.02 1.26 0.83 0.82 0.97 1.16 0.98 1.08 0.99 1.24 0.97 0.69

Percent of Loans Charged-Off (net, YTD) 

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

Construction and development -0.02 -0.05 0.01 -0.01 -0.03 -0.04 -0.02 0.01 -0.02 -0.05 0.04 -0.15

Nonfarm nonresidential 0.03 0.03 0.03 0.02 0.04 0.00 0.03 0.03 0.03 0.00 0.03 0.01

Multifamily residential real estate 0.00 -0.06 -0.01 0.00 0.00 0.00 0.00 0.01 -0.01 0.00 0.02 0.00

Home equity loans 0.04 -0.01 0.03 0.04 0.03 0.05 0.12 0.03 0.05 0.00 0.00 -0.03

Other 1-4 family residential 0.00 0.05 0.03 0.06 0.02 -0.04 0.04 0.01 -0.04 0.00 0.02 0.00

Commercial and industrial loans 0.27 0.49 0.29 0.38 0.36 0.18 0.32 0.26 0.23 0.18 0.33 0.44

Loans to individuals 2.34 0.88 1.05 2.15 2.60 2.13 2.59 2.33 1.44 2.72 1.41 2.55

Credit card loans 3.78 16.44 6.31 7.82 3.98 3.38 3.56 3.85 3.58 3.59 2.63 4.55

Other loans to individuals 0.86 0.57 0.71 1.00 0.82 0.90 1.06 0.80 0.56 1.31 0.87 0.73

All other loans and leases (including farm) 0.12 0.23 0.21 0.19 0.10 0.12 0.12 0.14 0.10 0.13 0.13 0.10

Total loans and leases 0.48 0.17 0.11 0.21 0.69 0.43 0.59 0.54 0.23 0.50 0.22 0.71

Loans Outstanding (in billions) 

All real estate loans $4,863.2 $32.8 $594.8 $893.0 $1,692.5 $1,650.1 $1,001.8 $907.4 $1,014.4 $869.1 $477.4 $593.2

Construction and development 350.9 2.0 56.3 84.9 137.4 70.3 65.9 59.2 59.3 53.0 73.8 39.7

Nonfarm nonresidential 1,427.1 7.9 224.6 361.5 548.9 284.2 327.7 279.6 219.3 192.5 199.8 208.3

Multifamily residential real estate 425.9 0.9 33.0 98.2 170.3 123.5 151.3 43.5 110.2 37.3 21.5 62.1

Home equity loans 381.6 0.8 22.4 41.8 139.9 176.9 77.3 94.5 94.4 67.3 20.7 27.4

Other 1-4 family residential 2,112.3 14.9 207.1 283.0 677.5 929.8 374.8 417.9 507.0 425.9 143.2 243.5

Commercial and industrial loans 2,087.3 5.6 96.0 186.5 801.4 997.8 321.7 505.5 458.9 422.9 146.0 232.4

Loans to individuals 1,690.6 3.1 32.1 67.0 854.8 733.7 369.2 410.0 231.2 310.6 66.3 303.4

Credit card loans 856.3 0.1 1.9 11.2 476.2 367.0 222.5 205.1 68.7 194.9 20.1 145.0

Other loans to individuals 834.3 3.0 30.2 55.8 378.6 366.7 146.8 204.8 162.4 115.7 46.2 158.3

All other loans and leases (including farm) 1,300.5 6.7 49.5 64.2 397.2 782.9 196.1 263.4 317.2 361.5 55.2 107.0

Total loans and leases 

(plus unearned income) 9,941.6 48.2 772.4 1,210.6 3,745.9 4,164.5 1,888.9 2,086.2 2,021.7 1,964.1 744.8 1,235.9

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 7,186.7 193.1 2,089.0 1,539.9 1,800.3 1,564.4 1,294.3 1,586.7 1,347.2 1,286.5 1,260.3 411.8

Construction and development 1,998.3 46.9 900.4 557.2 362.6 131.2 243.5 529.6 240.5 325.5 503.9 155.4

Nonfarm nonresidential 2,101.7 57.5 678.9 525.2 534.8 305.3 377.2 412.1 387.3 374.0 444.0 107.0

Multifamily residential real estate 98.6 4.3 47.4 35.3 8.2 3.4 23.0 21.7 16.7 17.0 11.1 9.1

1-4 family residential 2,782.9 61.3 381.0 353.4 881.8 1,105.3 638.0 610.9 678.7 462.2 261.1 131.9

Farmland 187.2 23.1 81.2 68.8 12.8 1.3 12.6 12.3 23.0 90.8 40.2 8.3

* Regions:

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

U.S. Virgin Islands

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
2 0 1 8  •  Volume 1 2  • Number 4

12 FDIC QUARTERLY

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

3rd 

Quarter 

2018

2nd 

Quarter 

2018

1st

Quarter 

2018

4th

Quarter 

2017

3rd 

Quarter 

2017

% 

Change 

17Q3

18Q3

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,347 1,362 1,361 1,367 1,397 -3.6 45 747 425 121 9

Total assets of institutions reporting derivatives $16,059,255 $15,950,923 $15,950,609 $15,815,208 $15,675,909 2.4 $3,193 $323,484 $1,271,290 $5,705,857 $8,755,431

Total deposits of institutions reporting derivatives 12,292,477 12,207,274 12,265,380 12,133,179 11,947,224 2.9 2,659 267,317 1,009,657 4,364,596 6,648,248

Total derivatives 209,754,241 209,828,278 205,986,579 173,484,033 190,609,917 10 193 21,250 134,866 61,813,863 147,784,068

Derivative Contracts by Underlying Risk Exposure 

Interest rate 156,781,057 157,435,142 155,478,406 130,423,142 141,278,946 11 186 18,501 129,683 53,313,635 103,319,052

Foreign exchange* 43,473,496 43,279,998 41,064,224 34,422,180 39,707,400 9.5 0 0 3,689 7,929,308 35,540,498

Equity 3,644,559 3,420,624 3,466,899 3,079,607 3,055,705 19.3 0 0 225 165,936 3,478,397

Commodity & other (excluding credit derivatives) 1,510,680 1,510,765 1,631,020 1,372,891 1,477,532 2.2 0 0 33 89,967 1,420,679

Credit 4,341,695 4,178,619 4,345,494 4,186,122 5,090,240 -14.7 0 5 1,230 315,018 4,025,442

Total 209,743,836 209,816,763 205,976,871 173,477,307 190,601,362 10 31 11,203 134,670 61,813,863 147,784,068

Derivative Contracts by Transaction Type 

Swaps 104,786,177 107,958,507 105,094,254 94,523,939 101,820,942 2.9 17 7,250 79,731 27,038,503 77,660,676

Futures & forwards 47,051,282 46,023,905 45,497,597 34,407,162 40,132,650 17.2 10 1,884 30,636 11,924,082 35,094,669

Purchased options 25,031,774 23,883,350 23,840,759 19,163,376 20,398,592 22.7 0 260 12,320 10,770,692 14,248,502

Written options 25,769,185 25,142,041 24,973,515 19,677,317 20,908,669 23.2 4 1,804 10,610 11,342,136 14,414,631

Total 202,638,417 203,007,802 199,406,126 167,771,793 183,260,854 10.6 31 11,198 133,297 61,075,413 141,418,478

Fair Value of Derivative Contracts 

Interest rate contracts 53,589 49,616 51,494 49,030 52,123 2.8 0 116 1,254 4,698 47,520

Foreign exchange contracts 25,827 23,843 27,846 10,372 13,938 85.3 0 0 0 4,452 21,375

Equity contracts 1,975 5,003 6,582 -7,514 -5,742 N/M 0 0 1 101 1,873

Commodity & other (excluding credit derivatives) 2,948 1,181 -867 -829 -1,390 N/M 0 0 0 72 2,875

Credit derivatives as guarantor** 26,237 23,965 33,701 33,170 34,840 -24.7 0 0 0 1,442 24,795

Credit derivatives as beneficiary** -26,912 -24,348 -34,976 -34,547 -37,666 N/M 0 0 0 -1,749 -25,164

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 93,168,891 91,960,395 95,441,271 72,590,571 72,171,780 29.1 37 4,555 31,628 27,239,671 65,893,001

 1-5 years 42,735,054 42,279,244 40,334,591 36,154,566 43,431,393 -1.6 10 4,421 35,268 8,437,539 34,257,816

 > 5 years 24,228,352 24,373,830 23,687,654 23,565,880 27,041,460 -10.4 15 7,056 49,181 6,575,786 17,596,315

Foreign exchange and gold contracts < 1 year 29,674,903 31,341,537 29,696,500 24,379,652 28,385,819 4.5 0 9 2,066 5,900,780 23,772,047

 1-5 years 4,928,405 4,906,415 5,021,957 4,805,216 4,987,149 -1.2 0 0 907 799,040 4,128,458

 > 5 years 2,470,383 2,472,893 2,630,013 2,525,329 2,574,435 -4 0 0 7 619,093 1,851,282

Equity contracts < 1 year 2,825,222 2,679,109 2,747,190 2,295,686 2,159,633 30.8 0 0 90 71,388 2,753,744

 1-5 years 963,096 867,817 843,259 732,909 780,834 23.3 0 0 50 51,680 911,366

 > 5 years 135,954 123,737 139,432 113,150 119,191 14.1 0 0 2 8,389 127,563

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 1,896,557 1,994,605 2,314,371 2,172,996 2,542,161 -25.4 0 13 24 60,366 1,836,153

 1-5 years 3,017,006 3,019,612 2,862,714 2,814,096 3,173,395 -4.9 0 5 307 196,674 2,820,020

 > 5 years 537,194 309,072 527,870 312,753 524,420 2.4 0 22 402 41,096 495,675

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 23.9 24.5 24.8 23.3 24.2 0.1 0.7 1.4 12.6 37.8

Total potential future exposure to tier 1 capital (%) 40.9 39.5 41.8 38.6 45.1 0.1 0.4 0.8 20.2 66

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 64.8 64.0 66.6 61.9 69.3 0.2 1.1 2.2 32.8 103.9

Credit losses on derivatives  12.0 3.0 -1.0 11.0 1.0 1,100.0 0.0 0.0 1.0 -1.0 11.0

HELD FOR TRADING 

Number of institutions reporting derivatives 197 197 199 201 200 -1.5 3 33 87 66 8

Total assets of institutions reporting derivatives 12,611,908 12,484,261 12,578,335 12,481,545 12,403,492 1.7 239 16,932 289,774 3,843,863 8,461,099

Total deposits of institutions reporting derivatives 9,613,503 9,518,157 9,638,443 9,555,469 9,421,994 2.0 210 14,076 229,887 2,971,783 6,397,547

Derivative Contracts by Underlying Risk Exposure 

Interest rate 154,523,852 155,241,947 153,262,676 128,177,117 138,893,663 11.3 2 684 33,237 52,742,905 101,747,023

Foreign exchange 40,241,704 40,144,539 38,353,254 32,402,215 36,960,571 8.9 0 0 3,183 7,476,328 32,762,193

Equity 3,628,434 3,402,588 3,450,109 3,063,576 3,040,023 19.4 0 0 70 155,118 3,473,246

Commodity & other 1,481,650 1,481,752 1,602,648 1,343,837 1,450,053 2.2 0 0 10 62,312 1,419,327

Total 199,875,639 200,270,826 196,668,687 164,986,745 180,344,309 10.8 2 684 36,500 60,436,663 139,401,790

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  1,998 255 2,648 2,225 3,010 -33.6 0 0 5 -80 2,073

Foreign exchange** 3,130 4,535 2,894 1,813 1,608 94.7 0 0 3 921 2,206

Equity** 1,444 1,486 1,865 1,648 1,454 -0.7 0 0 6 31 1,406

Commodity & other (including credit derivatives)** 487 594 789 145 866 -43.8 0 0 0 42 445

Total trading revenues** 7,059 6,871 8,197 5,831 6,938 1.7 0 0 14 915 6,130

Share of Revenue 

Trading revenues to gross revenues (%)** 4.5 4.5 5.5 4.1 4.9 0.0 0.0 0.4 2.0 5.8

Trading revenues to net operating revenues (%)** 16.7 16.6 21.4 36.0 21.5 0.0 0.0 1.5 7.6 21.0

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 751 759 758 783 801 -6.2 8 231 389 114 9

Total assets of institutions reporting derivatives 15,576,512 15,481,219 15,475,562 15,370,175 15,239,663 2.2 547 113,176 1,198,891 5,508,467 8,755,431

Total deposits of institutions reporting derivatives 11,905,169 11,829,384 11,881,099 11,775,231 11,593,669 2.7 467 94,157 952,389 4,209,908 6,648,248

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,249,555 2,184,811 2,206,558 2,239,391 2,376,823 -5.4 29 10,513 96,254 570,730 1,572,029

Foreign exchange 468,068 505,117 485,719 500,573 496,561 -5.7 0 0 365 29,547 438,157

Equity 16,125 18,036 16,790 16,031 15,682 2.8 0 0 155 10,818 5,151

Commodity & other 29,030 29,012 28,371 29,054 27,479 5.6 0 0 23 27,655 1,352

Total notional amount 2,762,778 2,736,976 2,737,439 2,785,049 2,916,545 -5.3 29 10,514 96,797 638,750 2,016,688

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

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

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

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

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

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

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

3rd 

Quarter 

2018

2nd 

Quarter

2018

1st 

Quarter

2018

4th 

Quarter

2017

3rd 

Quarter

2017

% 

Change 

17Q3-

18Q3

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 64 64 65 67 66 -3.0 0 5 19 33 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $542,310 $560,132 $571,205 $590,211 $606,755 -10.6 $0 $874 $13,892 $91,728 $435,816

Home equity loans 15 16 18 20 21 -28.6 0 0 0 15 0

Credit card receivables 24 26 4,781 4,553 16,114 -99.9 0 0 0 0 24

Auto loans 4,415 4,647 8,221 9,770 10,494 -57.9 0 0 0 4,415 0

Other consumer loans 1,806 1,887 2,914 3,052 3,610 -50.0 0 0 0 804 1,002

Commercial and industrial loans 360 271 381 380 316 13.9 0 0 0 0 360

All other loans, leases, and other assets 68,646 67,948 62,410 60,869 55,105 24.6 0 10 10,351 2,914 55,372

Total securitized and sold 562,500 581,566 649,931 668,855 692,414 -18.8 0 0 0 69,927 492,574

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,228 1,327 1,527 1,716 1,718 -28.5 0 0 38 826 364

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

Credit card receivables 0 0 392 353 1,405 -100.0 0 0 0 0 0

Auto loans 114 125 164 147 161 -29.2 0 0 0 114 0

Other consumer loans 85 82 88 86 87 -2.3 0 0 0 0 85

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

All other loans, leases, and other assets 1,112 1,266 1,194 1,131 908 22.5 0 0 166 0 946

Total credit exposure 2,301 2,565 3,365 3,431 4,279 -46.2 0 0 0 906 1,395

Total unused liquidity commitments provided to institution’s own 

securitizations 226 144 143 215 246 -8.1 0 0 0 21 205

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

1-4 family residential loans 3.9 3.5 3.2 4.7 4.3 0.0 3.1 0.7 3.2 4.2

Home equity loans 8.9 8.4 9.5 9.7 5.9 0.0 0.0 0.0 8.9 0.0

Credit card receivables 0.0 0.0 0.3 0.3 0.4 0.0 0.0 0.0 0.0 0.0

Auto loans 1.9 1.8 1.6 2.1 1.6 0.0 0.0 0.0 1.9 0.0

Other consumer loans 4.5 4.7 4.5 4.7 4.2 0.0 0.0 0.0 2.8 5.9

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

All other loans, leases, and other assets 0.2 0.3 0.3 0.5 0.7 0.0 0.0 0.5 0.9 0.1

Total loans, leases, and other assets 3.6 3.2 2.9 4.2 3.9 0.0 0.0 0.0 2.7 3.7

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

1-4 family residential loans 1.1 1.2 1.4 1.6 1.3 0.0 2.5 0.7 1.3 1.1

Home equity loans 40.2 42.6 44.1 45.7 47.1 0.0 0.0 0.0 40.2 0.0

Credit card receivables 0.0 0.0 0.2 0.2 0.3 0.0 0.0 0.0 0.0 0.0

Auto loans 0.4 0.4 0.3 0.4 0.3 0.0 0.0 0.0 0.4 0.0

Other consumer loans 4.3 6.0 4.3 4.6 4.2 0.0 0.0 0.0 1.7 6.3

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

All other loans, leases, and other assets 0.6 0.7 1.2 1.2 1.2 0.0 0.0 1.4 0.2 0.5

Total loans, leases, and other assets 1.0 1.2 1.4 1.5 1.2 0.0 0.0 0.0 0.9 1.1

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans 0.0 -0.1 -0.1 0.2 0.2 0.0 0.0 0.0 0.0 0.0

Home equity loans 13.9 11.4 4.9 11.7 8.7 0.0 0.0 0.0 13.9 0.0

Credit card receivables 4.2 3.8 0.3 1.2 1.2 0.0 0.0 0.0 0.0 4.2

Auto loans 1.0 0.6 0.4 1.2 0.8 0.0 0.0 0.0 1.0 0.0

Other consumer loans 0.8 0.6 0.3 1.5 1.0 0.0 0.0 0.0 0.6 0.9

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

All other loans, leases, and other assets 0.4 0.3 0.0 1.7 1.3 0.0 0.0 0.2 0.3 0.4

Total loans, leases, and other assets 0.1 0.0 -0.1 0.4 0.3 0.0 0.0 0.0 0.1 0.1

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

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

Credit card receivables 0 0 1,730 2,460 8,171 -100.0 0 0 0 0 0

Commercial and industrial loans 361 306 426 463 401 -10.0 0 0 0 0 361

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

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 477 475 463 509 511 -6.7 13 198 203 55 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 25,844 24,754 24,532 180,648 26,404 -2.1 126 5,256 12,102 6,453 1,907

All other loans, leases, and other assets 112,296 109,138 106,242 105,171 101,237 10.9 0 20 186 36,343 75,747

Total sold and not securitized 138,141 133,892 130,775 285,819 127,641 8.2 126 5,276 12,288 42,796 77,654

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 7,959 7,659 7,987 162,126 7,895 0.8 8 764 3,742 2,603 842

All other loans, leases, and other assets 31,286 30,545 29,602 29,273 28,265 10.7 0 20 47 10,380 20,839

Total credit exposure 39,245 38,205 37,589 191,399 36,160 8.5 8 785 3,789 12,983 21,682

Support for Securitization Facilities Sponsored by Other Institutions 

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

Total credit exposure 24,792 26,570 29,676 32,237 34,334 -27.8 0 0 0 1,236 23,556

Total unused liquidity commitments 1,313 1,031 1,148 1,259 1,298 1.2 0 0 0 323 990

Other

Assets serviced for others** 5,983,945 5,918,821 6,034,526 5,996,478 5,928,748 0.9 4,560 156,077 299,665 1,456,403 4,067,240

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 16,898 16,069 15,554 16,909 16,618 1.7 0 0 0 0 16,898

Unused liquidity commitments to conduits sponsored by institutions 

 and others 30,447 30,593 29,497 26,928 27,458 10.9 0 0 0 2,676 27,771

Net servicing income (for the quarter) 2,739 2,812 3,655 2,355 2,306 18.8 8 225 191 1,159 1,157

Net securitization income (for the quarter) 64 -49 151 131 395 -83.8 0 1 15 3 45

Total credit exposure to Tier 1 capital (%)*** 3.6 3.7 4.3 13.9 4.6 0.0 0.0 0.0 2.2 6.3

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

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

*** Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above.

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

COMMUNITY BANK PERFORMANCE

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

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

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

banks designated during the previous quarter.

Community Banks Report Net Income Growth of 21.6 Percent

Loan and Lease Balances Increase 6.6 Percent From a Year Earlier

Net Interest Margin Widens 8 Basis Points to 3.74 Percent

Noncurrent and Net Charge-Off Rates for Total Loans Decline

Net Income Increases for 

Most Community Banks

Reports from 5,0441 insured community banks reflected net income of $6.8 billion—up 

$1.2 billion (21.6 percent) from third quarter 2017.2 Net income benefited from an increase 

in net operating revenue and a reduction in income tax expenses; both combined to offset 

growth in noninterest expense. The pretax return on assets ratio rose from 1.42 percent to 

1.48 percent during the year. This ratio was 34 basis points below that of noncommunity 

banks.

Provisions for loan and lease losses totaled $627 million, a decline of $112.1 million 

(15.2 percent) from third quarter 2017. However, total reserves increased by $458 million 

(up 2.6 percent) to $18.3 billion as nearly two-thirds (63.3 percent) of community banks 

reported higher reserves compared with the same period the year before.

More than seven out of ten community banks (72 percent) reported higher net income 

from a year earlier, and only 3.7 percent of community banks reported a net loss this quarter. Income tax expense declined by $395 million (23 percent) from third quarter 2017, as 

community banks continued to benefit from a lower effective tax rate. Absent the benefits 

of a lower corporate tax rate, estimated quarterly net income would have been $6.4 billion, 

13.3 percent higher than the $5.6 billion reported in third quarter 2017.3

Contributors to the Year-Over-Year Change in Income 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Positive Factor Negative Factor

-0.5

0.0

0.5

1.0

1.5

2.0

$1.22 $1.58 -$0.11 $0.11 $0.86 -$0.08 -$0.39

+22% +9% + -15% 2% +6% -79% -23%

Chart 1

Source: FDIC.

Net Interest Margin

Percent 

Community Banks (3.74) 

Industry (3.45)

3.00

3.25

3.50

3.75

4.00

4.25

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 2

1 The number of insured community banks reflects no community bank failures during this quarter.

2 Data for third quarter 2018 do not include two insured institutions, which had not reported at the time data were compiled. 

3 This estimate of net income applies the average quarterly tax rate at community banks between fourth quarter 2011 and third 

quarter 2017 to income before taxes and discontinued operations.
2 0 1 8  •  Volume 1 2  • Number 4

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions Change 3Q 2018 vs. 3Q 2017

Change 3Q 2018 vs. 2Q 2018

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

C&I

Loans

1–4 Family

Residential

RE

C&D

Loans

Agricultural

Production

Loans

CRE &

C&D

C&I

Loans

36.1

15.7

10.3

17.2

1.0

9.4 9.5 8.8

1.8 3.3 2.6 1.8 3.2 5.0

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Share of Loan Portfolio Noncurrent

Percent

0

2

4

6

8

10

12

14

16

C&D Loans

Nonfarm Nonresidential RE

1–4 Family RE

C&I Loans 

Credit Cards

Home Equity

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 4

Higher Net Interest Income 

Drives Increase in Net 

Operating Revenue

Net interest income totaled $19.3 billion, up $1.6 billion (8.9 percent) from third quarter 2017. 

This growth contributed most to the increase in annual net operating revenue, which totaled 

$23.9 billion (up 7.6 percent).

Non 1–4 family real estate loan income (up $1.3 billion or 15.6 percent) contributed to most 

of the growth in interest income.4 The net interest margin (NIM) expanded 8 basis points 

from the level reported in third quarter 2017 to 3.74 percent. Although this ratio was 33 basis 

points higher than that of noncommunity banks, the NIM for noncommunity banks grew 

more (17 basis points) during the same period.

More Than Half of 

Community Banks Report 

Higher Noninterest Income

Community banks reported noninterest income of $4.7 billion, up $110 million 

(2.4 percent) from third quarter 2017 despite a decline in net gains on loan sales of 

$136 million (13.8 percent). More than half of community banks (53.3 percent) reported 

higher noninterest income compared with third quarter 2017.

Noninterest Expense and 

Assets Per Employee 

Continue Upward Trend

Salary and employee benefits increased by $566.1 million (7 percent), lifting noninterest 

expense by $855.1 million (6 percent) from third quarter 2017. During the same period, 

the number of full-time equivalent employees increased by 11,177 (2.8 percent) and 

average assets per employee rose to $5.4 million (up 3.6 percent). Nearly three out of four 

(74.2 percent) community banks reported higher noninterest expenses compared with third 

quarter 2017.

Loan and Lease Balances 

Grow 6.6 Percent From a 

Year Earlier

Loan and lease balances rose $98.9 billion (6.6 percent) during the past 12 months. More 

than seven out of ten community banks (78.4 percent) reported annual growth in loan and 

lease balances. The following categories led this growth: nonfarm nonresidential loans, 

up $36.1 billion or 8.2 percent; 1–4 family residential loans, up $17.2 billion or 4.5 percent; 

commercial and industrial (C&I) loans, up $15.7 billion or 8.1 percent; construction and 

development (C&D) loans, up $10.3 billion or 10.3 percent; and multifamily residential loans, 

up $9 billion or 8.3 percent.

4 Non 1–4 family real estate loans include construction and development, farmland, multifamily, and nonfarm nonresidential 

loans.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Loan and lease balances increased by $22.8 billion (1.5 percent) to $1.6 trillion during 

third quarter 2018. Among the categories that led quarterly loan growth were nonfarm 

nonresidential loans, up $8.8 billion or 1.9 percent; 1-4 family residential real estate loans, 

up $3.3 billion or 0.8 percent; C&D loans, up $2.6 billion or 2.4 percent; and C&I loans, up 

$1.8 billion or 0.9 percent.

Unused loan commitments of $306.3 billion were up $6.1 billion (2 percent) during third 

quarter 2018. Undrawn commitments on C&I loans increased $5 billion (5.3 percent) and 

commitments to lend against commercial real estate properties, including C&D properties, 

increased by $3.2 billion (3.5 percent) during the same period.

Noncurrent Loans Decline 

During the Quarter

Community banks reported a decline of $90 million (0.7 percent) in noncurrent loans and 

leases and a 2 basis point decline in the noncurrent rate to 0.80 percent, 26 basis points 

below that of noncommunity banks and the lowest noncurrent rate since first quarter 2007. 

The coverage ratio (noncurrent loans to allowance for loan and lease losses) increased from 

141.2 percent to 143.3 percent during the third quarter.

The noncurrent rate declined for all major loan categories except C&I, which increased by 

4 basis points to 1 percent during third quarter 2018. The noncurrent rate for farm loans 

increased by 1 basis point during the quarter to 1.16 percent because of a slight increase in 

the noncurrent rate for farmland loans (up 3 basis points to 1.41 percent), which outpaced 

a decline in the noncurrent rate for agricultural production loans (down 2 basis points to 

0.80 percent).

Net Charge-Off Rates for 

Major Loan Categories 

Decline or Remain Flat

The net charge-off rate declined by 3 basis points to 0.10 percent from third quarter 2017, the 

lowest net charge-off rate since first quarter 2016 and 42 basis points below that of noncommunity banks. The net charge-off rate for C&D loans of 0.03 percent and the net charge-off 

rate for nonfarm nonresidential loans of 0.04 percent have remained flat since third quarter 

2017. The net charge-off rate for 1-4 family loans declined by 1 basis point to 0.04 percent 

and the net charge-off rate for C&I loans declined by 6 basis points to 0.27 percent compared 

with a year earlier.

Community Banks Report 

Uptick in Regulatory 

Capital Ratios

Equity capital totaled $249.8 billion, up $3.7 billion (1.5 percent) from the previous quarter. 

The leverage capital ratio increased by 8 basis points to 11.05 percent. The tier 1 risk-based 

capital ratio increased by 8 basis points to 14.75 percent as the growth rate for risk-based 

capital outpaced that of risk-weighted assets. The total risk-based capital ratio increased by 

7 basis points to 15.79 percent.

Author:

Erica Jill Tholmer

Senior Financial Analyst

Division of Insurance and Research
2 0 1 8  •  Volume 1 2  • Number 4

18 FDIC QUARTERLY

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

2018* 2017* 2017 2016 2015 2014 2013

Return on assets (%) 1.17 1.04 0.96 0.99 0.99 0.93 0.90

Return on equity (%) 10.50 9.33 8.65 8.81 8.85 8.45 8.27

Core capital (leverage) ratio (%) 11.05 10.85 10.80 10.69 10.67 10.57 10.43

Noncurrent assets plus other real estate owned to assets (%) 0.72 0.83 0.78 0.94 1.07 1.34 1.73

Net charge-offs to loans (%) 0.13 0.14 0.16 0.16 0.15 0.21 0.32

Asset growth rate (%) -0.49 3.22 1.17 2.97 2.71 2.21 0.39

Net interest margin (%) 3.68 3.60 3.62 3.57 3.57 3.61 3.59

Net operating income growth (%) 14.66 7.26 0.15 2.42 9.54 4.81 14.64

Number of institutions reporting 5,044 5,296 5,228 5,461 5,735 6,037 6,307

Percentage of unprofitable institutions (%) 3.49 4.15 5.74 4.65 5.02 6.44 8.40

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

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

(dollar figures in millions)  3rd Quarter

2018

2nd Quarter

2018

3rd Quarter

2017

%Change 

17Q3-18Q3

Number of institutions reporting 5,044 5,111 5,296 -4.8

Total employees (full-time equivalent) 411,581 415,507 423,950 -2.9

CONDITION DATA

Total assets $2,222,322 $2,221,472 $2,233,171 -0.5

Loans secured by real estate 1,221,867 1,216,782 1,205,471 1.4

 1-4 Family residential mortgages 396,234 400,051 400,412 -1.0

 Nonfarm nonresidential 474,079 468,330 460,660 2.9

 Construction and development 110,521 108,610 105,171 5.1

 Home equity lines 48,665 48,775 50,373 -3.4

Commercial & industrial loans 210,596 210,251 207,286 1.6

Loans to individuals 63,184 62,697 61,979 1.9

 Credit cards 1,802 1,885 2,048 -12.0

Farm loans 53,732 52,103 52,693 2.0

Other loans & leases 39,751 39,804 39,744 0.0

Less: Unearned income 656 701 695 -5.6

Total loans & leases 1,588,475 1,580,935 1,566,478 1.4

Less: Reserve for losses 18,267 18,240 18,522 -1.4

Net loans and leases 1,570,208 1,562,695 1,547,956 1.4

Securities 396,652 402,667 421,115 -5.8

Other real estate owned 3,267 3,571 4,241 -23.0

Goodwill and other intangibles 15,594 15,200 14,529 7.3

All other assets 236,602 237,339 245,330 -3.6

Total liabilities and capital 2,222,322 2,221,472 2,233,171 -0.5

Deposits 1,823,190 1,818,268 1,824,166 -0.1

 Domestic office deposits 1,822,599 1,817,681 1,823,494 0.0

 Foreign office deposits 591 587 671 -12.0

 Brokered deposits 73,308 74,632 90,221 -18.7

Estimated insured deposits 1,331,063 1,335,078 1,346,745 -1.2

Other borrowed funds 131,606 138,438 138,590 -5.0

Subordinated debt 624 629 1,007 -38.1

All other liabilities 16,997 16,067 17,387 -2.2

Total equity capital (includes minority interests) 249,906 248,070 252,021 -0.8

 Bank equity capital 249,797 247,954 251,905 -0.8

Loans and leases 30-89 days past due 7,785 7,435 7,700 1.1

Noncurrent loans and leases 12,746 12,922 14,236 -10.5

Restructured loans and leases 6,500 6,554 7,368 -11.8

Mortgage-backed securities 174,568 177,081 180,369 -3.2

Earning assets 2,073,087 2,072,192 2,081,821 -0.4

FHLB Advances 109,271 115,387 112,506 -2.9

Unused loan commitments 306,329 303,200 294,910 3.9

Trust assets 297,976 293,501 298,440 -0.2

Assets securitized and sold 14,956 19,211 21,799 -31.4

Notional amount of derivatives 75,823 78,052 72,220 5.0

INCOME DATA

First Three 

Quarters 2018

First Three 

Quarters 2017 %Change

3rd Quarter 

2018

3rd Quarter 

2017

%Change 

17Q3-18Q3

Total interest income $66,275 $62,628 5.8 $23,144 $21,690 6.7

Total interest expense 10,168 7,743 31.3 3,868 2,803 38.0

Net interest income 56,107 54,885 2.2 19,276 18,886 2.1

Provision for loan and lease losses 2,084 2,322 -10.2 627 766 -18.2

Total noninterest income 13,766 14,489 -5.0 4,661 4,960 -6.0

Total noninterest expense 44,708 44,974 -0.6 15,093 15,291 -1.3

Securities gains (losses) 120 335 -64.1 23 105 -78.6

Applicable income taxes 3,838 5,361 -28.4 1,354 1,898 -28.7

Extraordinary gains, net* -195 4 N/M -33 5 N/M

Total net income (includes minority interests) 19,168 17,056 12.4 6,853 6,002 14.2

 Bank net income 19,158 17,038 12.4 6,849 5,995 14.2

Net charge-offs 1,467 1,595 -8.0 412 498 -17.2

Cash dividends 7,771 7,278 6.8 2,548 2,251 13.2

Retained earnings 11,387 9,760 16.7 4,301 3,744 14.9

Net operating income 19,264 16,800 14.7 6,868 5,917 16.1

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

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  3rd Quarter 

2018

2nd Quarter 

2018

3rd Quarter

2017

%Change 

17Q3-18Q3

Number of institutions reporting 5,044 5,044 5,038 0.1

Total employees (full-time equivalent) 416,241 414,148 408,694 1.8

CONDITION DATA

Total assets $2,222,322 $2,202,617 $2,124,022 4.6

Loans secured by real estate 1,221,867 1,203,764 1,144,756 6.7

 1-4 Family residential mortgages 396,234 392,968 379,019 4.5

 Nonfarm nonresidential 474,079 465,322 438,015 8.2

 Construction and development 110,521 107,928 100,235 10.3

 Home equity lines 48,665 48,589 48,320 0.7

Commercial & industrial loans 210,596 208,807 194,865 8.1

Loans to individuals 63,184 61,945 60,336 4.7

 Credit cards 1,802 1,914 1,957 -7.9

Farm loans 53,732 51,934 52,720 1.9

Other loans & leases 39,751 39,873 37,476 6.1

Less: Unearned income 656 650 628 4.5

Total loans & leases 1,588,475 1,565,673 1,489,525 6.6

Less: Reserve for losses 18,267 18,112 17,809 2.6

Net loans and leases 1,570,208 1,547,562 1,471,717 6.7

Securities 396,652 401,199 401,822 -1.3

Other real estate owned 3,267 3,524 4,085 -20.0

Goodwill and other intangibles 15,594 15,199 13,180 18.3

All other assets 236,602 235,133 233,218 1.5

Total liabilities and capital 2,222,322 2,202,617 2,124,022 4.6

Deposits 1,823,190 1,801,900 1,740,789 4.7

 Domestic office deposits 1,822,599 1,801,282 1,740,193 4.7

 Foreign office deposits 591 618 596 -0.9

 Brokered deposits 73,308 72,300 84,889 -13.6

Estimated insured deposits 1,331,063 1,324,593 1,290,133 3.2

Other borrowed funds 131,606 137,951 126,378 4.1

Subordinated debt 624 620 566 10.2

All other liabilities 16,997 15,936 16,490 3.1

Total equity capital (includes minority interests) 249,906 246,210 239,798 4.2

 Bank equity capital 249,797 246,099 239,699 4.2

Loans and leases 30-89 days past due 7,785 7,368 7,440 4.6

Noncurrent loans and leases 12,746 12,836 13,584 -6.2

Restructured loans and leases 6,500 6,527 7,126 -8.8

Mortgage-backed securities 174,568 176,444 170,381 2.5

Earning assets 2,073,087 2,054,214 1,980,909 4.7

FHLB Advances 109,271 115,066 101,761 7.4

Unused loan commitments 306,329 300,266 281,454 8.8

Trust assets 297,976 288,882 270,165 10.3

Assets securitized and sold 14,956 14,181 16,680 -10.3

Notional amount of derivatives 75,823 78,770 70,089 8.2

INCOME DATA

First Three 

Quarters 2018

First Three 

Quarters 2017 %Change

3rd Quarter 

2018

3rd Quarter 

2017

%Change 

17Q3-18Q3

Total interest income $66,275 $58,551 13.2 $23,144 $20,287 14.1

Total interest expense 10,168 7,143 42.3 3,868 2,586 49.6

Net interest income 56,107 51,408 9.1 19,276 17,700 8.9

Provision for loan and lease losses 2,084 2,237 -6.8 627 739 -15.2

Total noninterest income 13,766 13,306 3.5 4,661 4,551 2.4

Total noninterest expense 44,708 41,980 6.5 15,093 14,238 6.0

Securities gains (losses) 120 330 -63.5 23 105 -78.5

Applicable income taxes 3,838 4,871 -21.2 1,354 1,749 -22.6

Extraordinary gains, net* -195 4 N/M -33 5 N/M

Total net income (includes minority interests) 19,168 15,961 20.1 6,853 5,636 21.6

 Bank net income 19,158 15,950 20.1 6,849 5,631 21.6

Net charge-offs 1,467 1,521 -3.6 412 477 -13.5

Cash dividends 7,771 6,731 15.4 2,548 2,154 18.3

Retained earnings 11,387 9,218 23.5 4,301 3,477 23.7

Net operating income 19,264 15,709 22.6 6,868 5,551 23.7

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 8  •  Volume 1 2  • Number 4

20 FDIC QUARTERLY

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

Third Quarter 2018

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 5,044 580 580 1,112 1,343 1,116 313

Total employees (full-time equivalent) 411,581 85,959 46,611 85,794 71,670 89,636 31,911

CONDITION DATA

Total assets $2,222,322 $621,215 $227,864 $396,047 $364,121 $421,921 $191,155

Loans secured by real estate 1,221,867 390,668 126,643 209,190 179,872 211,401 104,093

 1-4 Family residential mortgages 396,234 142,650 39,654 70,655 53,640 66,829 22,807

 Nonfarm nonresidential 474,079 140,379 55,392 77,575 60,833 87,562 52,337

 Construction and development 110,521 25,411 14,269 15,940 15,970 29,497 9,433

 Home equity lines 48,665 16,233 6,445 10,565 5,488 4,974 4,960

Commercial & industrial loans 210,596 52,640 19,399 40,355 37,467 42,892 17,845

Loans to individuals 63,184 16,010 6,465 12,375 10,975 12,828 4,531

 Credit cards 1,802 415 149 247 575 220 196

Farm loans 53,732 618 1,511 8,693 29,861 10,030 3,019

Other loans & leases 39,751 11,664 3,562 7,164 6,796 7,202 3,364

Less: Unearned income 656 185 109 49 100 122 91

Total loans & leases 1,588,475 471,416 157,470 277,728 264,870 284,231 132,761

Less: Reserve for losses 18,267 4,627 1,778 3,210 3,472 3,448 1,732

Net loans and leases 1,570,208 466,789 155,692 274,518 261,398 280,782 131,028

Securities 396,652 94,719 41,719 75,811 65,350 85,519 33,533

Other real estate owned 3,267 576 671 584 539 731 166

Goodwill and other intangibles 15,594 5,035 1,352 2,761 2,327 2,805 1,314

All other assets 236,602 54,096 28,430 42,372 34,507 52,083 25,114

Total liabilities and capital 2,222,322 621,215 227,864 396,046 364,121 421,921 191,155

Deposits 1,823,190 493,945 190,884 326,526 298,974 353,442 159,421

 Domestic office deposits 1,822,599 493,486 190,884 326,448 298,974 353,442 159,366

 Foreign office deposits 591 459 0 77 0 0 55

 Brokered deposits 73,308 25,344 5,157 13,879 13,417 9,851 5,661

 Estimated insured deposits 1,331,063 345,358 140,570 256,681 231,678 252,386 104,389

Other borrowed funds 131,606 50,432 10,010 22,398 22,377 18,481 7,908

Subordinated debt 624 499 15 43 10 42 15

All other liabilities 16,997 5,937 1,635 2,789 2,321 2,716 1,599

Total equity capital (includes minority interests) 249,906 70,402 25,319 44,291 40,440 47,241 22,212

 Bank equity capital 249,797 70,333 25,316 44,277 40,439 47,221 22,212

Loans and leases 30-89 days past due 7,785 1,900 901 1,414 1,303 1,876 391

Noncurrent loans and leases 12,746 4,081 1,281 2,357 1,981 2,373 674

Restructured loans and leases 6,500 2,147 675 1,506 921 856 395

Mortgage-backed securities 174,568 53,227 18,613 29,978 22,651 33,556 16,544

Earning assets 2,073,087 582,795 210,914 369,124 339,990 391,222 179,040

FHLB Advances 109,271 45,177 8,418 17,756 16,934 15,420 5,567

Unused loan commitments 306,329 84,795 27,689 55,624 53,976 53,757 30,488

Trust assets 297,976 72,977 9,545 76,816 88,926 40,839 8,873

Assets securitized and sold 14,956 7,998 69 3,017 2,624 852 396

Notional amount of derivatives 75,823 35,822 6,205 14,726 10,216 6,237 2,616

INCOME DATA

Total interest income $23,144 $6,214 $2,423 $3,997 $3,859 $4,578 $2,073

Total interest expense 3,868 1,298 363 639 649 665 253

Net interest income 19,276 4,916 2,060 3,358 3,210 3,913 1,819

Provision for loan and lease losses 627 146 64 96 119 150 53

Total noninterest income 4,661 987 422 1,203 774 944 331

Total noninterest expense 15,093 3,689 1,702 2,886 2,446 3,060 1,311

Securities gains (losses) 23 22 3 0 0 -2 -2

Applicable income taxes 1,354 436 133 258 180 187 160

Extraordinary gains, net** -33 0 0 -34 0 0 1

Total net income (includes minority interests) 6,853 1,654 586 1,288 1,240 1,459 627

 Bank net income 6,849 1,652 586 1,287 1,240 1,458 627

Net charge-offs 412 120 48 58 73 95 18

Cash dividends 2,548 422 145 651 568 519 244

Retained earnings 4,301 1,230 441 636 671 939 383

Net operating income 6,868 1,635 584 1,321 1,239 1,460 628

* See Table V-A for explanation.

** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Third Quarter 2018, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Third Quarter 2018, Geographic Regions*

 3rd Quarter 

2018

2nd Quarter 

2018 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.49 4.35 4.29 4.62 4.35 4.57 4.70 4.69

Cost of funding earning assets 0.75 0.66 0.90 0.69 0.70 0.77 0.68 0.57

Net interest margin 3.74 3.69 3.39 3.92 3.65 3.80 4.02 4.11

Noninterest income to assets 0.84 0.86 0.64 0.74 1.22 0.86 0.90 0.70

Noninterest expense to assets 2.73 2.75 2.39 3.00 2.93 2.70 2.92 2.78

Loan and lease loss provision to assets 0.11 0.12 0.09 0.11 0.10 0.13 0.14 0.11

Net operating income to assets 1.24 1.20 1.06 1.03 1.34 1.37 1.39 1.33

Pretax return on assets 1.48 1.41 1.35 1.27 1.57 1.57 1.57 1.67

Return on assets 1.24 1.17 1.07 1.03 1.31 1.37 1.39 1.33

Return on equity 11.06 10.51 9.47 9.35 11.69 12.37 12.45 11.45

Net charge-offs to loans and leases 0.10 0.15 0.10 0.12 0.08 0.11 0.14 0.05

Loan and lease loss provision to net charge-offs 152.13 114.30 121.64 132.04 166.21 163.16 156.72 297.78

Efficiency ratio 62.69 63.53 62.20 68.02 62.90 61.02 62.66 60.65

Net interest income to operating revenue 80.53 80.10 83.28 83.01 73.62 80.58 80.56 84.60

% of unprofitable institutions 3.69 4.21 3.79 6.03 3.60 2.61 3.32 5.43

% of institutions with earnings gains 71.65 73.21 77.07 75.00 70.50 66.94 72.85 75.40

Table V-B. First Three Quarters 2018, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks First Three Quarters 2018, Geographic Regions*

First Three 

Quarters 2018

First Three 

Quarters 2017 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.35 4.11 4.18 4.47 4.20 4.41 4.55 4.52

Cost of funding earning assets 0.67 0.51 0.80 0.62 0.61 0.69 0.60 0.50

Net interest margin 3.68 3.60 3.38 3.86 3.59 3.72 3.95 4.01

Noninterest income to assets 0.84 0.89 0.64 0.80 1.19 0.84 0.90 0.69

Noninterest expense to assets 2.74 2.75 2.45 2.98 2.92 2.69 2.89 2.77

Loan and lease loss provision to assets 0.13 0.14 0.14 0.11 0.09 0.14 0.15 0.12

Net operating income to assets 1.18 1.03 0.96 1.06 1.26 1.30 1.35 1.26

Pretax return on assets 1.41 1.37 1.24 1.29 1.46 1.49 1.52 1.57

Return on assets 1.17 1.04 0.97 1.06 1.20 1.30 1.35 1.26

Return on equity 10.50 9.33 8.65 9.66 10.73 11.81 12.15 10.96

Net charge-offs to loans and leases 0.13 0.14 0.14 0.09 0.15 0.11 0.14 0.07

Loan and lease loss provision to net charge-offs 142.06 145.54 133.03 168.21 88.85 184.07 152.62 235.01

Efficiency ratio 63.65 64.52 63.90 67.76 64.00 61.96 63.07 61.91

Net interest income to operating revenue 80.30 79.12 83.17 81.77 73.67 80.46 80.24 84.58

% of unprofitable institutions 3.49 4.15 3.62 5.52 4.41 2.23 2.51 5.11

% of institutions with earnings gains 75.79 64.82 82.24 80.69 71.85 73.27 75.54 80.51

* See Table V-A for explanation.
2 0 1 8  •  Volume 1 2  • Number 4

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

September 30, 2018

Geographic Regions*

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

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.45 0.38 0.53 0.51 0.44 0.58 0.22

Construction and development 0.45 0.45 0.46 0.39 0.36 0.49 0.55

Nonfarm nonresidential 0.32 0.28 0.32 0.37 0.36 0.41 0.16

Multifamily residential real estate 0.12 0.09 0.13 0.25 0.22 0.12 0.03

Home equity loans 0.44 0.48 0.46 0.46 0.31 0.53 0.31

Other 1-4 family residential 0.69 0.56 0.90 0.81 0.63 0.92 0.30

Commercial and industrial loans 0.49 0.29 0.60 0.40 0.59 0.68 0.55

Loans to individuals 1.40 1.58 1.49 0.90 0.98 2.12 0.94

Credit card loans 2.32 2.52 1.42 1.13 3.71 1.25 1.25

Other loans to individuals 1.37 1.55 1.50 0.90 0.83 2.14 0.92

All other loans and leases (including farm) 0.41 0.22 0.20 0.40 0.50 0.46 0.28

Total loans and leases 0.49 0.40 0.57 0.51 0.49 0.66 0.29

Percent of Loans Noncurrent**

All loans secured by real estate 0.78 0.86 0.83 0.87 0.71 0.75 0.42

Construction and development 0.68 0.73 0.88 0.78 0.71 0.49 0.64

Nonfarm nonresidential 0.66 0.75 0.66 0.78 0.64 0.67 0.29

Multifamily residential real estate 0.20 0.18 0.20 0.34 0.18 0.28 0.08

Home equity loans 0.51 0.59 0.61 0.51 0.29 0.40 0.52

Other 1-4 family residential 1.02 1.27 1.06 1.00 0.60 0.96 0.59

Commercial and industrial loans 1.00 1.15 0.71 0.92 0.93 1.13 0.84

Loans to individuals 0.64 0.49 0.77 0.35 0.43 1.33 0.39

Credit card loans 1.13 1.32 0.85 0.54 1.63 0.53 0.93

Other loans to individuals 0.63 0.47 0.77 0.34 0.37 1.34 0.37

All other loans and leases (including farm) 0.77 0.31 0.85 0.83 0.85 0.74 1.04

Total loans and leases 0.80 0.87 0.81 0.85 0.75 0.83 0.51

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.03 0.04 0.02 0.08 0.02 0.03 -0.02

Construction and development 0.00 0.03 0.08 -0.05 -0.03 0.03 -0.14

Nonfarm nonresidential 0.03 0.05 0.01 0.06 0.03 0.02 -0.01

Multifamily residential real estate 0.00 0.00 -0.02 -0.03 -0.01 0.03 0.00

Home equity loans 0.04 0.04 0.03 0.10 -0.02 0.03 -0.05

Other 1-4 family residential 0.06 0.04 0.04 0.18 0.02 0.03 -0.03

Commercial and industrial loans 0.37 0.69 0.25 0.18 0.21 0.44 0.21

Loans to individuals 1.05 0.89 0.90 1.19 1.07 1.03 1.43

Credit card loans 7.38 4.37 1.75 7.93 14.74 1.70 2.56

Other loans to individuals 0.85 0.79 0.88 1.00 0.30 1.02 1.38

All other loans and leases (including farm) 0.17 0.13 0.17 0.19 0.14 0.18 0.30

Total loans and leases 0.13 0.14 0.09 0.15 0.11 0.14 0.07

Loans Outstanding (in billions)

All loans secured by real estate $1,221.9 $390.7 $126.6 $209.2 $179.9 $211.4 $104.1

Construction and development 110.5 25.4 14.3 15.9 16.0 29.5 9.4

Nonfarm nonresidential 474.1 140.4 55.4 77.6 60.8 87.6 52.3

Multifamily residential real estate 117.5 63.5 6.4 17.2 10.7 8.8 10.9

Home equity loans 48.7 16.2 6.4 10.6 5.5 5.0 5.0

Other 1-4 family residential 396.2 142.6 39.7 70.7 53.6 66.8 22.8

Commercial and industrial loans 210.6 52.6 19.4 40.4 37.5 42.9 17.8

Loans to individuals 63.2 16.0 6.5 12.4 11.0 12.8 4.5

Credit card loans 1.8 0.4 0.1 0.2 0.6 0.2 0.2

Other loans to individuals 61.4 15.6 6.3 12.1 10.4 12.6 4.3

All other loans and leases (including farm) 93.5 12.3 5.1 15.9 36.7 17.2 6.4

Total loans and leases 1,589.1 471.6 157.6 277.8 265.0 284.4 132.9

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 306,329 84,795 27,689 55,624 53,976 53,757 30,488

Construction and development: 1-4 family residential 26,502 5,526 3,495 3,310 3,589 7,580 3,002

Construction and development: CRE and other 65,858 20,504 6,709 10,675 8,925 13,448 5,597

Commercial and industrial 98,945 27,315 7,424 19,997 16,909 17,335 9,966

* See Table V-A for explanation.

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

FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $2.6 Billion

DIF Reserve Ratio Rises 3 Basis Points to 1.36 Percent

Reserve Ratio Reaches Minimum Required by Dodd-Frank—Large Bank Surcharge Ends

The Deposit Insurance Fund (DIF) balance increased by $2.6 billion, to $100.2 billion, 

during the third quarter. Assessment income of $2.7 billion, which includes temporary 

assessment surcharges on large banks, drove the fund balance increase. Interest on investments of $433 million, a negative provision for insurance losses of $121 million, and other 

miscellaneous income of $2 million also added to the fund balance. Operating expenses of 

$434 million and unrealized losses on available-for-sale securities of $234 million partly 

offset the increase in the fund balance.

The deposit insurance assessment base—average consolidated total assets minus average tangible equity—increased by 0.8 percent in the third quarter and by 2.6 percent over 

12 months.1, 2 Total estimated insured deposits increased by 0.3 percent in the third quarter of 2018 and by 3.8 percent year-over-year. The DIF’s reserve ratio (the fund balance 

as a percent of estimated insured deposits) was 1.36 percent on September 30, up from 

1.33 percent at June 30, 2018, and 1.27 percent on September 30 of last year. The September 30, 2018, reserve ratio of 1.36 percent is the highest since December 31, 2000, when the 

reserve ratio was at 1.37 percent.3

As of September 30, 2018, the reserve ratio exceeded the required minimum of 1.35 percent 

set by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Per the Final Rule 

adopted by the FDIC Board of Directors on March 15, 2016, to increase the DIF to the statutory required minimum of 1.35 percent by December 31, 2018, the temporary surcharge 

imposed on large banks will end effective October 1, 2018.4,5

Small banks will receive credits to offset the portion of their assessments that helped to 

raise the reserve ratio from 1.15 percent to 1.35 percent.6 (See the Final Rule for a detailed 

explanation of small bank credits.7)

The total amount of small bank credits is estimated to be approximately $750 million. When 

the reserve ratio is at or above 1.38 percent, the FDIC will automatically apply a small bank’s 

credits to reduce its regular assessment up to the entire amount of the assessment.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

1 There are additional adjustments to the assessment base for banker’s banks and custodial banks.

2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

3 Reserve ratio for December 31, 2000, represents the combined balances of the Bank Insurance Fund and Savings Association 

Insurance Fund as a percent of estimated insured deposits.

4 Large banks are generally those with assets of $10 billion or more.

5 The insurance assessment for the third quarter of 2018 (which will be paid on December 28, 2018) will be the last invoice that 

large banks will pay the 4.5 basis point surcharge.

6 Small banks are those with total assets less than $10 billion.

7 https://www.gpo.gov/fdsys/pkg/FR-2016-03-25/pdf/2016-06770.pdf.
2 0 1 8  •  Volume 1 2  • Number 4

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.18

1.09 1.11 1.13 1.17 1.20 1.20 1.24 1.27 1.30 1.30 1.33 1.36

9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 3/18 6/18 9/18

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

3rd 

Quarter 

2018

2nd 

Quarter 

2018

1st 

Quarter 

2018

4th 

Quarter 

2017

3rd 

Quarter 

2017

2nd 

Quarter 

2017

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd 

Quarter 

2016

1st 

Quarter 

2016

4th 

Quarter 

2015

3rd 

Quarter 

2015

Beginning Fund Balance $97,588 $95,072 $92,747 $90,506 $87,588 $84,928 $83,162 $80,704 $77,910 $75,120 $72,600 $70,115 $67,589

Changes in Fund Balance:

Assessments earned 2,728 2,598 2,850 2,656 2,568 2,634 2,737 2,688 2,643 2,328 2,328 2,160 2,170

Interest earned on 

investment securities 433 381 338 305 274 251 227 189 171 164 147 128 122

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 434 445 433 443 404 450 442 437 422 441 415 447 410

Provision for insurance 

losses -121 -141 -65 -203 -512 -233 765 -332 -566 -627 -43 -930 -578

All other income, 

net of expenses 2 3 1 3 1 4 2 3 3 2 5 12 2

Unrealized gain/(loss) on 

available-for-sale 

securities** -234 -162 -496 -481 -33 -12 7 -317 -167 110 412 -298 64

Total fund balance change 2,616 2,516 2,325 2,242 2,918 2,660 1,766 2,457 2,794 2,790 2,520 2,485 2,526

Ending Fund Balance 100,204 97,588 95,072 92,747 90,506 87,588 84,928 83,162 80,704 77,910 75,120 72,600 70,115

Percent change from 

 four quarters earlier 10.72 11.42 11.95 11.53 12.14 12.42 13.06 14.55 15.10 15.27 15.05 15.64 29.08

Reserve Ratio (%) 1.36 1.33 1.30 1.30 1.27 1.24 1.20 1.20 1.18 1.17 1.13 1.11 1.09

Estimated Insured 

Deposits 7,376,566 7,356,907 7,336,746 7,159,748 7,103,695 7,050,340 7,081,910 6,917,928 6,817,984 6,674,980 6,662,907 6,519,449 6,406,678

Percent change from 

 four quarters earlier 3.84 4.35 3.60 3.50 4.19 5.62 6.29 6.11 6.42 5.39 5.19 5.23 4.61

Domestic Deposits 12,368,002 12,280,938 12,305,836 12,129,503 11,966,478 11,827,933 11,856,691 11,693,371 11,506,877 11,242,960 11,156,523 10,952,922 10,698,306

Percent change from 

 four quarters earlier 3.36 3.83 3.79 3.73 3.99 5.20 6.28 6.76 7.56 5.74 5.06 5.21 4.75

Assessment Base*** 15,226,220 15,112,453 15,068,643 15,001,510 14,834,535 14,703,244 14,621,088 14,563,614 14,383,231 14,194,249 13,994,033 13,832,910 13,662,776

Percent change from 

 four quarters earlier 2.64 2.78 3.06 3.01 3.14 3.59 4.48 5.28 5.27 4.45 3.40 3.65 4.19

Number of Institutions 

Reporting 5,486 5,551 5,616 5,679 5,747 5,796 5,865 5,922 5,989 6,067 6,131 6,191 6,279

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

9/15 $70,115 $6,406,678

12/15 72,600 6,519,449

3/16 75,120 6,662,907

6/16 77,910 6,674,980

9/16 80,704 6,817,984

12/16 83,162 6,917,928

3/17 84,928 7,081,910

6/17 87,588 7,050,340

9/17 90,506 7,103,695

12/17 92,747 7,159,748

3/18 95,072 7,336,746

6/18 97,588 7,356,907

9/18 100,204 7,376,566

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2018  2017** ** 2017 2016 2015 2014 2013 2012

Problem Institutions

Number of institutions 71 104 95 123 183 291 467 651

Total assets $53,289 $16,044 $13,939 $27,624 $46,780 $86,712 $152,687 $232,701

Failed Institutions

Number of institutions 0 6 8 5 8 18 24 51

Total assets***** $0 $4,882 $5,082 $277 $6,706 $2,914 $6,044 $11,617

* Quarterly financial statement results are unaudited.

** Includes unrealized postretirement benefit gain (loss).

*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

  Through September 30.

** *** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

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

(dollar figures in millions)

September 30, 2018

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 4,774 $16,480,364 $11,379,770 $6,579,130

 FDIC-Supervised 3,178 2,547,770 2,018,824 1,385,978

 OCC-Supervised 843 11,192,933 7,443,887 4,147,283

 Federal Reserve-Supervised 753 2,739,661 1,917,059 1,045,868

FDIC-Insured Savings Institutions 703 1,192,414 942,070 761,517

 OCC-Supervised 316 749,444 606,953 501,205

 FDIC-Supervised 349 412,499 310,827 240,829

 Federal Reserve-Supervised 38 30,471 24,291 19,483

Total Commercial Banks and Savings Institutions 5,477 17,672,777 12,321,840 7,340,647

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 88,785 46,161 35,919

Total FDIC-Insured Institutions 5,486 17,761,562 12,368,002 7,376,566

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending June 30, 2018 (dollar figures in billions)

Annual Rate in Basis Points*

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base**

Percent of Total 

Assessment Base

1.50 - 3.00 3,400 61.25 $5,355.5 35.44

3.01 - 6.00 1,459 26.28 8,854.2 58.59

6.01 - 10.00 547 9.85 741.3 4.90

10.01 - 15.00 57 1.03 129.8 0.86

15.01 - 20.00 71 1.28 12.6 0.08

20.01 - 25.00 9 0.16 5.2 0.03

> 25.00 8 0.14 13.9 0.09

* Assessment rates do not incorporate temporary surcharges on large banks.

** Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as required by the Dodd-Frank Act.
2 0 1 8  •  Volume 1 2  • Number 4

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call Report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://www.fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered 

community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), 

problem institutions, failed institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository insti1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

tutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions 

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports (TFR) submitted 

by all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

which is the sum of the individual numerator values divided by the 

sum of individual denominator values. All asset and liability figures 

used in calculating performance ratios represent average amounts for 

the period (beginning-of-period amount plus end-of-period amount 

plus any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

are included in average assets, since the year-to-date income includes 

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

base period to totals for institutions in the current period. For the 

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup. When community 

bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions 

that were subsequently merged into current community banks.

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home 

state. In addition, institutions may relocate across state lines or 

change their charters, resulting in an inter-regional or inter-industry 

migration; institutions can move their home offices between regions, 

savings institutions can convert to commercial banks, or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Financial accounting pronouncements by the Financial Accounting 

Standards Board (FASB) can result in changes in an individual 

bank’s accounting policies and in the Call Reports they submit. Such 

accounting changes can affect the aggregate amounts presented in the 

QBP for the current period and the period-to-period comparability of 

such financial data. 

The current quarter’s Financial Institution Letter (FIL) and related 

Call Report supplemental instructions can provide additional explanation to the QBP reader beyond any material accounting changes 

discussed in the QBP analysis. 

https://www.fdic.gov/news/news/financial/2018/fil18060.html.

https://www.fdic.gov/news/news/financial/2018/fil18060.pdf.

https://www.fdic.gov/regulations/resources/call/call.html.

Further information on changes in financial statement presentation, 

income recognition and disclosure is available from the FASB. http://

www.fasb.org/jsp/FASB/Page/LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of deposits in banks’ domestic offices with certain 

adjustments.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 
2 0 1 8  •  Volume 1 2  • Number 4

28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity Tier 1 capital ratio – ratio of common equity 

Tier 1 capital to risk-weighted assets. Common equity Tier 1 capital 

includes common stock instruments and related surplus, retained 

earnings, accumulated other comprehensive income (AOCI), and 

limited amounts of common equity Tier 1 minority interest, minus 

applicable regulatory adjustments and deductions. Items that are fully 

deducted from common equity Tier 1 capital include goodwill, other 

intangible assets (excluding mortgage servicing assets) and certain 

deferred tax assets; items that are subject to limits in common equity 

Tier 1 capital include mortgage servicing assets, eligible deferred tax 

assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative plus an additional amount for potential future credit exposure 

based on the notional amount, the remaining maturity and type of 

the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified future 

date, a specific quantity of an underlying variable or index at a 

specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, 

as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning 

March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Beginning September 30, 2009, insured deposits include deposits in 

accounts of $100,000 to $250,000 that are covered by a temporary 

increase in the FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and Consumer 

Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. 

Also, the Dodd-Frank Act amended the Federal Deposit Insurance 

Act to include noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing transaction accounts were fully insured, without 

limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on the 

balance sheet—including trading assets and liabilities, available-forsale securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 

of fair values. During periods of market stress, the fair values of some 

financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC-insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships, and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, 

less subsequent quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other loans 

secured by real estate.

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed from 

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions that 

actually filed a financial report.

New reporters – insured institutions filing quarterly financial reports 

for the first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that filed a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.
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30 FDIC QUARTERLY

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet 

items multiplied by risk-weights that range from zero to 200 percent. 

A conversion factor is used to assign a balance sheet equivalent 

amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity” 

(reported at amortized cost (book value)), securities designated as 

“available-for-sale” (reported at fair (market) value), and equity 

securities with readily determinable fair values not held for trading.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for 

income taxes. Thrift Financial Report (TFR) filers also include gains 

(losses) on the sales of assets held for sale. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have been 

securitized, except an interest that is a form of recourse or other 

seller-provided credit enhancement. Seller’s interests differ from 

the securities issued to investors by the securitization structure. The 

principal amount of a seller’s interest is generally equal to the total 

principal amount of the pool of assets included in the securitization 

structure less the principal amount of those assets attributable to 

investors, i.e., in the form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending Fund 

(SBLF) was enacted into law in September 2010 as part of the Small 

Business Jobs Act of 2010 to encourage lending to small businesses 

by providing capital to qualified community institutions with assets 

of less than $10 billion. The SBLF Program is administered by the 

U.S. Treasury Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx).

Under the SBLF Program, the Treasury Department purchased 

noncumulative perpetual preferred stock from qualifying depository 

institutions and holding companies (other than Subchapter S and 

mutual institutions). When this stock has been issued by a depository 

institution, it is reported as “Perpetual preferred stock and related 

surplus.” For regulatory capital purposes, this noncumulative 

perpetual preferred stock qualifies as a component of Tier 1 capital. 

Qualifying Subchapter S corporations and mutual institutions issue 

unsecured subordinated debentures to the Treasury Department 

through the SBLF. Depository institutions that issued these 

debentures report them as “Subordinated notes and debentures.” 

For regulatory capital purposes, the debentures are eligible for 

inclusion in an institution’s Tier 2 capital in accordance with their 

primary federal regulator’s capital standards. To participate in the 

SBLF Program, an institution with outstanding securities issued 

to the Treasury Department under the Capital Purchase Program 

(CPP) was required to refinance or repay in full the CPP securities 

at the time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP remain 

outstanding after the refinancing of the CPP stock through the SBLF 

Program unless the institution chooses to repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal income 

tax purposes. It is generally not subject to any federal income taxes at 

the corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings.

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the assets 

of the financial institution.

Unearned income and contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured 

by commercial real estate, and unused commitments to originate 

or purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.