FDIC QUARTERLY A

Quarterly

2020

Volume 14, Number 3

Federal Deposit 

Insurance Corporation

Quarterly Banking Profile:

Second Quarter 2020

Highlights:

■ Aggregate Quarterly Net Income Declines Due to Continued 

Economic Uncertainty

■ Industry Reports Strong Capital and Liquidity in Second 

Quarter 2020

■ Net Income for Community Banks Increases 3.2 Percent 

Year Over Year 

■ Community Bank Provision Expenses Increase Reflecting the 

Continued Economic Uncertainty

■ Insured Deposits Grow at Fastest Pace on Record

■ DIF Reserve Ratio Falls 9 Basis Points, Ends Second Quarter 

at 1.30 Percent
FDIC QUARTERLY

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

Federal Deposit Insurance Corporation and contains a comprehensive summary of the 

most current financial results for the banking industry. Feature articles appearing in the 

FDIC Quarterly range from timely analysis of economic and banking trends at the national 

and regional level that may affect the risk exposure of FDIC-insured institutions to research 

on issues affecting the banking system and the development of regulatory policy.

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Chairman

Jelena McWilliams

Director, Division of Insurance and Research

Diane Ellis

Executive Editor

George French

Managing Editors

Rosalind Bennett

Alan Deaton

Patrick Mitchell

Shayna M. Olesiuk

Philip A. Shively

Editors

Clayton Boyce

Kathy Zeidler

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993
FDIC QUARTERLY i

2020 FDIC QUARTERLY

Volume 14 • Number 3

The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance Corporation. Some of the information used 

in the preparation of this publication was obtained from publicly available sources that are considered reliable. However, the use of this information does not constitute 

an endorsement of its accuracy by the Federal Deposit Insurance Corporation. Articles may be reprinted or abstracted if the publication and author(s) are credited. Please 

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

Quarterly Banking Profile: Second Quarter 2020

FDIC-insured institutions reported aggregate net income of $18.8 billion in second quarter 

2020, a decline of $43.7 billion (70.0 percent) from a year ago. The decline in net income 

reflects a continuation of uncertain economic activity, which drove an increase in provision 

expenses. Slightly less than half (47.5 percent) of all institutions reported lower net income 

compared to a year ago. The average return on assets ratio was 0.36 percent for the current 

quarter, down 102 basis points from a year ago. See page 1.

Community Bank Performance Community banks—which represent 91 percent of insured institutions—reported net 

income growth of 3.2 percent from second quarter 2019. Gains from the sale of loans and 

securities increased from a year ago and drove the aggregate profitability. More than half 

of all community banks (53.8 percent) reported higher annual earnings as net income grew 

$202.5 million to $6.63 billion year over year. See page 15.

Insurance Fund Indicators The Deposit Insurance Fund (DIF) balance totaled $114.7 billion in the second quarter, an 

increase of $1.4 billion from the previous quarter. Assessment income, interest earned on 

investments, and a negative provision for insurance losses were the largest contributors to 

the increase, offset partially by operating expenses and unrealized losses on available-forsale securities. Solely as a result of extraordinary insured deposit growth, the DIF reserve 

ratio dropped 9 basis points to 1.30 percent at June 30, 2020, down from 1.39 percent at 

March 31, 2020, and 1.40 percent at June 30, 2019. See page 23.

QUARTERLY BANKING PROFILE Second Quarter 2020

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Aggregate Quarterly Net Income Declines Due to Continued Economic Uncertainty

Net Interest Margin Compresses at Record Rate

Deposits Expand by More Than $1 Trillion for the Second Consecutive Quarter

Asset Quality Metrics Show Slight Decline

Industry Reports Strong Capital and Liquidity in Second Quarter 2020

Quarterly Net Income 

Declines $43.7 Billion 

(70 Percent) From 

12 Months Ago

Quarterly net income for the 5,066 FDIC-insured commercial banks and savings institutions totaled $18.8 billion during second quarter 2020, a decline of $43.7 billion (70 percent) 

from a year ago. The decline in net income reflects a continuation of uncertain economic 

activity, which drove an increase in provision expenses. Slightly less than half (47.5 percent) 

of all banks reported lower net income compared to a year ago.1 The average return on 

assets ratio was 0.36 percent for the current quarter, down 102 basis points from a year ago.

Net Interest Margin 

Declines to 2.81 Percent

Net interest income was $131.5 billion in second quarter 2020, down $7.6 billion 

(5.4 percent) from a year ago. This marks the third consecutive quarter that net interest 

income declined on a year-over-year basis. Most of the decline was driven by the three 

largest institutions, as less than half (42.2 percent) of all banks reported lower net interest 

income from a year ago. The average net interest margin (NIM) for the banking industry 

declined below the 3 percent level, or down 58 basis point from a year ago to 2.81 percent. 

This is the lowest NIM ever reported in the Quarterly Banking Profile (QBP). The NIM 

compression was broad-based, as it declined for all five asset size groups featured in the 

QBP. The decline in NIM was caused by asset yields declining at a faster rate than funding 

costs, as low-yielding assets grew substantially.

Noninterest Income 

Increases Nearly 7 Percent 

From a Year Ago

With almost half (47.8 percent) of all banks increasing their noninterest income from a 

year ago, the aggregate noninterest income for the banking industry rose by $4.6 billion 

(6.9 percent) to $70.8 billion. The annual increase in noninterest income was attributable 

to higher trading revenue, which rose by $6.7 billion (80.2 percent), and net gains on loan 

sales, which increased by $4.1 billion (110.8 percent).

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

80

-60

-40

-20

0

20

40

60

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

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 2019 2020

Chart 2

1 Industry participation counts consist of institutions existing in both reporting periods.
2020   •   Volume 14  • Number 3

2 FDIC QUARTERLY

Noninterest Expense 

Increases 6.2 Percent 

From Second Quarter 2019

Noninterest expense rose to $122.3 billion in the second quarter, up $7.2 billion (6.2 percent) 

from a year ago. More than half (58.6 percent) of all banks reported year-over-year 

increases in noninterest expense. The annual increase in noninterest expense was attributable to higher salary and employee benefits (up $2.7 billion, or 4.8 percent) and goodwill 

impairment charges (up $2.5 billion). The average assets per employee increased from 

$8.8 million in second quarter 2019 to $10.2 million in second quarter 2020. Noninterest expense as a percent of average assets declined by 16 basis points from a year ago to 

2.37 percent, the lowest level ever reported in the QBP.

Provisions for Credit 

Losses Rise From 

12 Months Ago

The continuation of weak economic activity and the recent implementation of the current 

expected credit losses (CECL) accounting methodology resulted in provisions for credit 

losses to increase by $49.1 billion (382.2 percent) or from $12.8 billion in second quarter 

2019 to $61.9 billion this quarter. Quarter over quarter, provisions for credit losses rose by 

$9.2 billion (17.4 percent). During the second quarter, 253 banks used the CECL accounting standard. CECL adopters reported $56.3 billion in provisions for credit losses in second 

quarter, up 419.2 percent from a year ago, and non-CECL adopters reported $5.6 billion, up 

207.3 percent. Almost two out of every three banks (61.2 percent) reported yearly increases 

in provision for credit losses.

Average Net Charge-Off 

Rate Increases by 7 Basis 

Points From a Year Ago

The average net charge-off rate increased by 7 basis points from a year ago to 0.57 percent. 

Net charge-offs increased by $2.8 billion (22.2 percent) from a year ago, the largest percentage increase since first quarter 2010. The annual increase in total net chargeoffs was attributable to the commercial and industrial (C&I) loan portfolio, in which 

charge-offs increased by $2.4 billion (128.5 percent). The C&I net charge-off rate rose by 

31 basis points from a year ago to 0.64 percent, but remains well below the post-crisis high 

of 2.72 percent reported in fourth quarter 2009.

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

Quarterly Net Charge-O Rate

Noncurrent Rate

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

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

 Loan-Loss Reserves ($) 

 Noncurrent Loans ($)

 Noncurrents Adjusted for GNMA Guaranteed Loans ($)

 Coverage Ratio (%) 

 Coverage Adjusted for GNMA Guaranteed Loans (%)

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Noncurrent Loan Rate 

Increases to 1.08 Percent

The average noncurrent rate increased by 15 basis points from the previous quarter to 

1.08 percent. Noncurrent loan balances (90 days or more past due or in nonaccrual status) 

totaled $118.3 billion in the second quarter, an increase of $15.9 billion (15.5 percent) 

from the previous quarter. Less than half (41.6 percent) of all banks reported quarterly 

increases in noncurrent loan balances. The increase in noncurrent loan balances was led by 

1–4 family residential mortgage loans (up $7.6 billion, or 19.5 percent) and C&I loan portfolio (up $6.1 billion, or 29 percent). The rise in noncurrent loan balances for 1–4 family 

residential mortgage loans reflects Ginnie Mae (GNMA) loans, which are guaranteed by the 

U.S. government, that have been brought back on banks’ books. The noncurrent rate for 

1–4 family residential mortgage loans increased by 33 basis points to 2.09 percent, and for 

C&I the noncurrent rate rose by 18 basis points to 1.01 percent.

Total Assets Expand 

4.4 Percent From the 

Previous Quarter

The banking industry reported total assets of $21.1 trillion in the second quarter, an 

increase of $884.6 billion (4.4 percent) from first quarter 2020. Cash and balances due from 

depository institutions increased by $478 billion (19.9 percent) to $2.9 trillion or 13.7 percent 

of total assets. Banks increased their securities holdings by $307.2 billion (7.3 percent), the 

largest quarterly dollar increase ever reported in the QBP. Most of this growth was attributable to U.S. Treasury securities, which rose by $173 billion (26.3 percent), and mortgagebacked securities, which increased by $105.4 billion (4.1 percent).

Loan Balances Increase 

Modestly From the 

Previous Quarter, Driven 

by Paycheck Protection 

Program Lending

Total loan and lease balances increased by $33.9 billion (0.3 percent) from the previous 

quarter, led by C&I loan portfolio, which rose by $146.5 billion (5.8 percent). The rise in C&I 

loan portfolio was attributable to the implementation of the Small Business Administration-guaranteed Paycheck Protection Program (PPP), with $482.2 billion in PPP loans on 

banks’ balance sheets at the end of the quarter. The increase in total loan and lease balances 

was partially offset by consumer loans, which includes credit cards (down $67.1 billion, or 

3.8 percent).

Held-to-Maturity Securities

Available-for-Sale Securities

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-100

-50

0

50

100

150

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Chart 5

-8

-4

0

4

8

12

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 first quarter of 2010. Although the total 

amount consolidated cannot be precisely quantified, 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

400

500

Quarterly Change (Le Axis)

12-Month Growth Rate (Right Axis)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Chart 6
2020   •   Volume 14  • Number 3

4 FDIC QUARTERLY

Deposits Expand by More 

Than $1 Trillion for Second 

Consecutive Quarter

Total deposit balances increased by $1.2 trillion (7.5 percent) from the previous quarter. 

Noninterest-bearing account balances rose by $637 billion (17.7 percent) and interestbearing account balances rose by $575.3 billion (5.4 percent). Nondeposit liabilities 

declined by $330.9 billion (14 percent) from the previous quarter.2 The decline in nondeposit liabilities was attributable to lower Federal Home Loan Bank advances, which fell by 

$234.1 billion (38.2 percent). Over the past 12 months, total deposits rose by $2.9 trillion 

(20.8 percent), led by the increase of $2.4 trillion in the last two quarters.

Equity Capital Rises From 

the Previous Quarter

Equity capital totaled $2.1 trillion in the second quarter, an increase of $31.9 billion 

(1.5 percent) from the previous quarter. Retained earnings contributed $4.8 billion to equity 

formation in the second quarter, as net income of $18.8 billion exceeded declared dividends of $14 billion. Nine insured institutions with $1.4 billion in total assets were below 

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

purposes.

One New Bank Opens in 

Second Quarter 2020

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

from 5,116 to 5,066 during second quarter 2020. One new bank was added, 47 institutions 

were absorbed by mergers, and one bank failed. Additionally, three institutions, who did 

not report this quarter, sold a majority of their assets and are in process of ceasing operations. The number of institutions on the FDIC’s “Problem Bank List” declined from 54 

in first quarter 2020 to 52, falling to near historic lows. Total assets of problem banks 

increased from $44.5 billion to $48.1 billion.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

Source: FDIC.

Number

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

0

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

300

350

400

450

500

Assets ($ Billions)

Number of Problem Banks 

Assets of Problem Banks

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Chart 8

Quarterly Change in Deposits

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-200

0

200

400

600

800

1,000

1,200

1,400

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Chart 7

2 Nondeposit liabilities include Federal funds purchased, repurchase agreements, Federal Home Loan Bank (FHLB) 

advances, and secured and unsecured borrowings.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2020** 2019** 2019 2018 2017 2016 2015

Return on assets (%) 0.37 1.36 1.29 1.35 0.97 1.04 1.04

Return on equity (%) 3.52 12.00 11.39 11.98 8.60 9.27 9.29

Core capital (leverage) ratio (%) 8.77 9.81 9.66 9.70 9.63 9.48 9.59

Noncurrent assets plus other real estate owned to assets (%) 0.59 0.57 0.55 0.60 0.73 0.86 0.97

Net charge-offs to loans (%) 0.56 0.50 0.52 0.48 0.50 0.47 0.44

Asset growth rate (%) 15.72 4.18 3.91 3.03 3.79 5.09 2.66

Net interest margin (%) 2.97 3.40 3.36 3.40 3.25 3.13 3.08

Net operating income growth (%) -72.16 4.91 -3.13 45.45 -3.27 4.43 7.11

Number of institutions reporting 5,066 5,303 5,177 5,406 5,670 5,913 6,182

Commercial banks 4,430 4,630 4,518 4,715 4,918 5,112 5,338

Savings institutions 636 673 659 691 752 801 844

Percentage of unprofitable institutions (%) 5.37 3.75 3.75 3.44 5.61 4.48 4.82

Number of problem institutions 52 56 51 60 95 123 183

Assets of problem institutions (in billions) $48 $49 $46 $48 $14 $28 $47

Number of failed institutions 2 1 4 0 8 5 8

* Excludes insured branches of foreign banks (IBAs).

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

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

(dollar figures in millions)  2nd Quarter

2020

1st Quarter

2020

2nd Quarter

2019

%Change 

19Q2-20Q2

Number of institutions reporting 5,066 5,116 5,303 -4.5

Total employees (full-time equivalent) 2,077,840 2,069,356 2,069,198 0.4

CONDITION DATA

Total assets $21,138,019 $20,253,453 $18,265,883 15.7

Loans secured by real estate 5,110,664 5,083,925 4,964,073 3.0

1-4 Family residential mortgages 2,216,401 2,206,885 2,160,493 2.6

Nonfarm nonresidential 1,545,780 1,534,695 1,473,660 4.9

 Construction and development 380,614 369,754 357,291 6.5

Home equity lines 324,470 338,273 358,471 -9.5

Commercial & industrial loans 2,689,138 2,542,592 2,215,932 21.4

Loans to individuals 1,704,192 1,771,332 1,747,850 -2.5

 Credit cards 808,171 872,980 881,143 -8.3

Farm loans 78,086 75,223 81,607 -4.3

Other loans & leases 1,416,732 1,490,327 1,292,727 9.6

Less: Unearned income 3,800 2,300 2,347 61.9

Total loans & leases 10,995,012 10,961,100 10,299,843 6.7

Less: Reserve for losses* 242,787 196,810 124,904 94.4

Net loans and leases 10,752,225 10,764,289 10,174,939 5.7

Securities** 4,515,734 4,208,512 3,779,177 19.5

Other real estate owned 5,022 5,588 6,365 -21.1

Goodwill and other intangibles 386,566 391,789 397,156 -2.7

All other assets 5,478,473 4,883,274 3,908,245 40.2

Total liabilities and capital 21,138,019 20,253,453 18,265,883 15.7

Deposits 16,960,609 15,777,037 14,039,671 20.8

 Domestic office deposits 15,518,218 14,305,863 12,747,614 21.7

Foreign office deposits 1,442,391 1,471,174 1,292,057 11.6

Other borrowed funds 1,301,278 1,560,246 1,496,909 -13.1

Subordinated debt 69,595 69,459 68,946 0.9

All other liabilities 657,032 729,117 562,668 16.8

Total equity capital (includes minority interests) 2,149,505 2,117,592 2,097,689 2.5

 Bank equity capital 2,146,940 2,115,028 2,094,577 2.5

Loans and leases 30-89 days past due 56,011 72,326 60,740 -7.8

Noncurrent loans and leases 118,288 102,393 95,886 23.4

Restructured loans and leases 48,287 46,827 52,880 -8.7

Mortgage-backed securities 2,651,816 2,546,453 2,282,677 16.2

Earning assets 19,230,654 18,236,014 16,485,457 16.7

FHLB Advances 378,614 612,677 537,285 -29.5

Unused loan commitments 8,366,915 8,033,264 8,049,052 3.9

Trust assets 17,008,602 20,003,220 20,615,094 -17.5

Assets securitized and sold 548,477 550,223 550,767 -0.4

Notional amount of derivatives 181,706,384 199,743,579 207,258,184 -12.3

INCOME DATA First Half 2020 First Half 2019 %Change 2nd Quarter 2020 2nd Quarter 2019 %Change 19Q2-20 Q2

Total interest income $319,342 $359,684 -11.2 $150,202 $180,647 -16.9

Total interest expense 50,916 81,654 -37.6 18,750 41,635 -55.0

Net interest income 268,427 278,031 -3.5 131,452 139,012 -5.4

Provision for credit losses*** 114,591 26,717 328.9 61,918 12,841 382.2

Total noninterest income 137,642 131,612 4.6 70,797 66,229 6.9

Total noninterest expense 250,824 230,138 9.0 122,279 115,095 6.2

Securities gains (losses) 4,257 1,994 113.5 2,501 1,121 123.2

Applicable income taxes 7,439 31,607 -76.5 1,646 16,020 -89.7

Extraordinary gains, net**** -105 168 N/M -79 176 N/M

Total net income (includes minority interests) 37,367 123,343 -69.7 18,828 62,582 -69.9

 Bank net income 37,279 123,214 -69.7 18,784 62,517 -70.0

Net charge-offs 30,244 25,512 18.6 15,613 12,780 22.2

Cash dividends 46,553 87,236 -46.6 14,029 48,645 -71.2

Retained earnings -9,274 35,978 N/M 4,755 13,872 -65.7

Net operating income 33,839 121,567 -72.2 16,771 61,501 -72.7

* For institutions that have adopted ASU 2016-13, this item represents the allowance for credit losses on loans and leases held for investment and allocated transfer risk.

** For institutions that have adopted ASU 2016-13, securities are reported net of allowances for credit losses.

*** For institutions that have adopted ASU 2016-13, this item represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, 

this item represents the provision for loan and lease losses.

**** See Notes to Users for explanation. N/M - Not Meaningful
2020   •   Volume 14  • Number 3

6 FDIC QUARTERLY

TABLE III-A. Second Quarter 2020, All FDIC-Insured Institutions

Asset Concentration Groups*

SECOND QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,066 11 5 1,199 2,789 296 39 217 442 68

Commercial banks 4,430 10 5 1,188 2,515 74 28 197 361 52

Savings institutions 636 1 0 11 274 222 11 20 81 16

Total assets (in billions) $21,138.0 $504.9 $5,240.3 $280.1 $7,467.3 $610.3 $129.4 $38.1 $86.0 $6,781.6

Commercial banks 19,840.8 419.7 5,240.3 274.4 7,020.1 94.3 126.6 35.3 67.6 6,562.6

Savings institutions 1,297.2 85.3 0.0 5.7 447.2 516.0 2.8 2.9 18.3 219.0

Total deposits (in billions) 16,960.6 360.6 3,935.9 231.7 6,048.5 531.8 108.6 30.0 72.4 5,641.0

Commercial banks 15,906.4 293.7 3,935.9 228.9 5,707.2 80.7 106.2 28.3 57.6 5,467.8

Savings institutions 1,054.2 66.9 0.0 2.8 341.3 451.1 2.4 1.7 14.8 173.2

Bank net income (in millions) 18,784 143 3,965 958 9,009 1,744 166 276 268 2,255

Commercial banks 16,226 61 3,965 936 8,112 515 162 103 226 2,146

Savings institutions 2,558 82 0 22 897 1,230 3 174 42 108

Performance Ratios (annualized, %)

Yield on earning assets 3.21 10.77 2.47 4.43 3.65 2.31 3.82 2.91 4.00 2.71

Cost of funding earning assets 0.40 1.58 0.24 0.71 0.48 0.28 0.85 0.41 0.56 0.33

Net interest margin 2.81 9.19 2.23 3.72 3.17 2.04 2.97 2.50 3.44 2.38

Noninterest income to assets 1.37 3.87 1.83 0.73 1.04 1.10 0.17 5.55 1.28 1.23

Noninterest expense to assets 2.37 5.80 2.12 2.41 2.52 1.55 1.16 4.37 2.95 2.21

Credit loss provision to assets** 1.20 6.84 1.34 0.27 0.85 0.09 1.24 0.09 0.17 1.20

Net operating income to assets 0.32 0.11 0.27 1.36 0.45 1.13 0.49 2.76 1.21 0.11

Pretax return on assets 0.40 -0.01 0.37 1.60 0.63 1.51 0.68 3.71 1.48 0.01

Return on assets 0.36 0.11 0.30 1.43 0.50 1.17 0.51 3.01 1.30 0.14

Return on equity 3.53 0.98 3.41 12.22 4.38 13.79 5.38 18.11 10.30 1.34

Net charge-offs to loans and leases 0.57 4.26 0.80 0.19 0.28 0.02 0.34 0.36 0.07 0.50

Loan and lease loss provision to 

net charge-offs 395.38 206.52 493.83 217.05 428.12 2,043.66 523.09 92.32 409.37 472.22

Efficiency ratio 58.69 45.47 55.47 56.74 59.77 49.91 37.94 55.38 65.60 65.04

% of unprofitable institutions 5.39 45.45 0.00 2.59 5.45 9.12 17.95 11.98 4.07 10.29

% of institutions with earnings gains 52.27 18.18 20.00 55.55 54.25 41.89 43.59 35.94 50.23 36.76

Structural Changes

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

Institutions absorbed by mergers 47 0 0 6 38 2 0 0 0 1

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

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2019 1.38 3.21 1.24 1.33 1.25 1.09 1.44 3.04 1.44 1.46

2017 1.13 2.05 0.95 1.22 1.08 0.92 1.13 2.97 0.91 1.24

2015 1.09 2.89 0.94 1.21 0.96 0.92 1.21 0.34 1.02 1.17

Net charge-offs to loans & leases (%) 2019 0.50 4.33 0.73 0.17 0.19 0.02 0.79 0.15 0.16 0.35

2017 0.48 4.07 0.51 0.21 0.22 0.00 0.59 0.19 0.14 0.39

2015 0.42 2.80 0.57 0.12 0.17 0.13 0.58 0.20 0.19 0.39

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

** For institutions that have adopted ASU 2016-13, the numerator represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, the numerator 

represents the provision for loan and lease losses.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 7

TABLE III-A. Second Quarter 2020, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

SECOND QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,066 1,010 3,153 755 135 13 607 576 1,085 1,306 1,121 371

Commercial banks 4,430 890 2,784 625 119 12 320 523 935 1,265 1,050 337

Savings institutions 636 120 369 130 16 1 287 53 150 41 71 34

Total assets (in billions) $21,138.0 $60.6 $1,096.1 $2,024.2 $6,097.9 $11,859.2 $3,870.0 $4,363.0 $4,956.3 $4,123.9 $1,684.2 $2,140.6

Commercial banks 19,840.8 53.7 953.8 1,689.3 5,577.2 11,566.8 3,465.1 4,251.4 4,847.2 4,088.6 1,192.9 1,995.7

Savings institutions 1,297.2 6.9 142.3 334.8 520.7 292.4 404.9 111.6 109.2 35.3 491.3 144.9

Total deposits (in billions) 16,960.6 50.0 910.0 1,639.2 4,922.6 9,438.8 3,114.1 3,597.9 3,771.4 3,317.0 1,417.0 1,743.2

Commercial banks 15,906.4 44.8 796.7 1,377.3 4,516.6 9,171.1 2,803.6 3,509.1 3,693.7 3,289.4 985.1 1,625.6

Savings institutions 1,054.2 5.2 113.3 261.9 406.1 267.7 310.4 88.9 77.7 27.7 431.9 117.6

Bank net income (in millions) 18,784 144 3,396 5,244 5,647 4,352 1,211 3,404 6,222 -582 3,498 5,032

Commercial banks 16,226 136 2,924 4,397 5,059 3,710 452 3,242 5,747 -707 2,703 4,790

Savings institutions 2,558 9 472 847 589 642 760 162 475 125 795 242

Performance Ratios (annualized, %)

Yield on earning assets 3.21 4.26 4.33 4.02 3.86 2.62 3.08 3.24 2.76 3.19 3.48 4.20

Cost of funding earning assets 0.40 0.66 0.67 0.60 0.55 0.26 0.49 0.36 0.27 0.39 0.38 0.67

Net interest margin 2.81 3.60 3.67 3.42 3.31 2.36 2.60 2.88 2.50 2.80 3.10 3.54

Noninterest income to assets 1.37 1.36 1.30 1.28 1.27 1.44 1.16 1.23 1.93 1.05 1.11 1.56

Noninterest expense to assets 2.37 3.46 2.98 2.65 2.52 2.18 2.37 2.31 2.34 2.37 2.36 2.54

Credit loss provision to assets** 1.20 0.17 0.31 0.57 1.33 1.32 1.00 1.21 1.19 1.62 0.64 1.14

Net operating income to assets 0.32 0.94 1.24 1.00 0.35 0.12 0.10 0.27 0.50 -0.12 0.82 0.91

Pretax return on assets 0.40 1.11 1.52 1.36 0.50 0.08 0.17 0.36 0.64 -0.33 1.02 1.26

Return on assets 0.36 0.99 1.30 1.09 0.38 0.15 0.13 0.32 0.51 -0.06 0.87 0.96

Return on equity 3.53 7.13 11.29 9.74 3.43 1.55 1.19 2.94 5.29 -0.59 8.12 9.09

Net charge-offs to loans and leases 0.57 0.17 0.12 0.23 0.74 0.60 0.54 0.61 0.45 0.64 0.45 0.73

Loan and lease loss provision to 

net charge-offs 395.38 171.54 374.76 347.80 280.35 507.53 350.07 360.76 561.85 497.28 268.88 237.78

Efficiency ratio 58.69 73.62 62.76 58.52 53.98 61.06 59.71 59.63 55.92 65.57 58.55 51.55

% of unprofitable institutions 5.39 10.79 3.52 3.71 15.56 30.77 9.39 8.51 4.98 2.53 4.55 7.82

% of institutions with earnings gains 52.27 47.03 56.61 48.21 17.04 7.69 41.52 42.88 55.67 62.79 48.97 47.44

Structural Changes

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

Institutions absorbed by mergers 47 11 29 6 1 0 13 3 10 11 8 2

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

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2019 1.38 0.95 1.35 1.27 1.43 1.37 1.15 1.44 1.34 1.34 1.38 1.75

2017 1.13 0.94 1.12 1.26 1.14 1.10 0.95 1.20 1.04 1.07 1.28 1.54

2015 1.09 0.95 0.97 1.31 1.04 1.10 0.96 1.10 0.96 1.23 1.15 1.29

Net charge-offs to loans & leases (%) 2019 0.50 0.15 0.12 0.21 0.66 0.51 0.45 0.54 0.41 0.53 0.22 0.77

2017 0.48 0.21 0.12 0.22 0.72 0.44 0.60 0.57 0.24 0.48 0.26 0.66

2015 0.42 0.14 0.14 0.21 0.55 0.45 0.49 0.47 0.25 0.50 0.21 0.49

* See Table V-A (page 11) for explanations.

** For institutions that have adopted ASU 2016-13, the numerator represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, the numerator 

represents the provision for loan and lease losses.
2020   •   Volume 14  • Number 3

8 FDIC QUARTERLY

TABLE IV-A. First Half 2020, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST HALF

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,066 11 5 1,199 2,789 296 39 217 442 68

Commercial banks 4,430 10 5 1,188 2,515 74 28 197 361 52

Savings institutions 636 1 0 11 274 222 11 20 81 16

Total assets (in billions) $21,138.0 $504.9 $5,240.3 $280.1 $7,467.3 $610.3 $129.4 $38.1 $86.0 $6,781.6

Commercial banks 19,840.8 419.7 5,240.3 274.4 7,020.1 94.3 126.6 35.3 67.6 6,562.6

Savings institutions 1,297.2 85.3 0.0 5.7 447.2 516.0 2.8 2.9 18.3 219.0

Total deposits (in billions) 16,960.6 360.6 3,935.9 231.7 6,048.5 531.8 108.6 30.0 72.4 5,641.0

Commercial banks 15,906.4 293.7 3,935.9 228.9 5,707.2 80.7 106.2 28.3 57.6 5,467.8

Savings institutions 1,054.2 66.9 0.0 2.8 341.3 451.1 2.4 1.7 14.8 173.2

Bank net income (in millions) 37,279 279 9,316 1,781 12,127 2,988 818 537 447 8,984

Commercial banks 32,954 -136 9,316 1,726 10,738 752 814 213 396 9,135

Savings institutions 4,325 415 0 55 1,389 2,237 4 324 51 -151

Performance Ratios (annualized, %)

Yield on earning assets 3.53 11.69 2.85 4.47 3.85 2.54 4.22 3.12 4.09 3.06

Cost of funding earning assets 0.56 1.78 0.44 0.79 0.62 0.35 1.03 0.48 0.61 0.49

Net interest margin 2.97 9.91 2.40 3.68 3.24 2.18 3.19 2.64 3.48 2.56

Noninterest income to assets 1.38 4.17 1.82 0.67 1.01 0.97 0.60 5.87 1.09 1.27

Noninterest expense to assets 2.51 6.34 2.27 2.44 2.70 1.62 0.96 4.62 2.99 2.28

Credit loss provision to assets** 1.15 7.29 1.24 0.21 0.82 0.11 1.02 0.10 0.14 1.09

Net operating income to assets 0.34 0.11 0.34 1.29 0.31 1.06 1.28 2.92 1.08 0.24

Pretax return on assets 0.45 0.01 0.46 1.52 0.47 1.37 1.75 3.67 1.25 0.27

Return on assets 0.37 0.11 0.37 1.35 0.35 1.06 1.29 2.99 1.11 0.28

Return on equity 3.52 0.93 4.03 11.49 2.96 12.39 13.04 17.75 8.67 2.68

Net charge-offs to loans and leases 0.56 4.30 0.78 0.14 0.26 0.02 0.41 0.34 0.07 0.49

Loan and lease loss provision to 

net charge-offs 377.17 212.35 450.85 224.51 453.48 2,150.40 345.35 111.23 343.22 433.97

Efficiency ratio 58.59 46.02 57.42 59.03 60.61 52.09 25.88 55.35 68.65 61.93

% of unprofitable institutions 5.37 45.45 0.00 2.34 5.41 10.14 17.95 10.14 4.98 10.29

% of institutions with earnings gains 49.59 9.09 20.00 55.38 49.80 38.51 46.15 35.48 50.68 35.29

Condition Ratios (%)

Earning assets to total assets 90.98 95.15 88.72 93.81 91.23 97.51 97.38 93.28 93.48 91.26

Loss allowance to:

Loans and leases 2.21 10.19 3.26 1.40 1.46 0.66 2.54 1.47 1.21 2.03

Noncurrent loans and leases 205.25 689.57 320.83 117.79 163.83 80.19 479.24 129.12 128.79 148.19

Noncurrent assets plus

other real estate owned to assets 0.59 1.10 0.37 0.88 0.66 0.24 0.38 0.37 0.65 0.68

Equity capital ratio 10.16 11.48 8.99 11.46 11.15 8.62 9.58 16.40 12.36 9.90

Core capital (leverage) ratio 8.77 12.45 7.93 10.96 9.32 7.86 9.85 15.40 12.04 8.42

Common equity tier 1 capital ratio*** 13.40 16.69 14.62 14.27 12.03 20.55 20.64 35.80 19.73 13.41

Tier 1 risk-based capital ratio*** 13.49 16.86 14.69 14.27 12.11 20.55 20.76 35.80 19.74 13.49

Total risk-based capital ratio*** 15.01 18.77 16.10 15.42 13.61 20.98 21.58 36.57 20.82 15.17

Net loans and leases to deposits 63.40 93.75 42.50 79.03 83.29 31.45 83.11 32.84 65.90 56.83

Net loans to total assets 50.87 66.96 31.92 65.38 67.46 27.41 69.73 25.83 55.51 47.27

Domestic deposits to total assets 73.41 68.10 51.91 82.72 80.52 86.96 83.88 78.66 84.23 80.63

Structural Changes

New reporters 2 0 0 0 0 0 0 2 0 0

Institutions absorbed by mergers 104 0 0 16 82 3 0 0 2 1

Failed institutions 2 0 0 1 1 0 0 0 0 0

PRIOR FIRST HALVES

(The way it was...)

Number of institutions 2019 5,303 11 5 1,329 2,803 389 70 220 426 50

2017 5,787 12 5 1,418 2,958 454 60 276 546 58

2015 6,348 14 4 1,484 3,146 545 55 353 681 66

Total assets (in billions) 2019 $18,265.9 $521.0 $4,488.8 $291.1 $6,584.0 $356.9 $222.4 $37.7 $75.6 $5,688.4

2017 17,069.5 505.5 4,194.3 280.9 5,911.7 359.5 261.7 48.0 97.0 5,410.9

2015 15,753.6 510.3 3,747.4 258.3 5,194.6 445.4 178.4 60.6 122.6 5,236.1

Return on assets (%) 2019 1.36 3.21 1.25 1.33 1.24 1.15 1.38 3.07 1.43 1.43

2017 1.09 2.05 0.95 1.20 1.03 0.90 1.10 2.83 0.92 1.16

2015 1.06 2.95 0.92 1.19 0.93 0.86 1.15 1.12 0.99 1.11

Net charge-offs to loans & leases (%) 2019 0.50 4.32 0.72 0.18 0.18 0.02 0.79 0.13 0.13 0.37

2017 0.49 3.97 0.58 0.15 0.21 0.05 0.62 0.15 0.13 0.40

2015 0.43 2.78 0.59 0.07 0.16 0.14 0.59 0.17 0.17 0.40

Noncurrent assets plus 

OREO to assets (%) 2019 0.57 1.20 0.37 0.92 0.61 1.23 0.46 0.43 0.67 0.56

2017 0.75 1.06 0.50 0.84 0.76 1.63 0.62 0.50 0.92 0.83

2015 1.04 0.74 0.76 0.80 0.96 1.94 1.03 0.69 1.27 1.28

Equity capital ratio (%) 2019 11.47 12.32 10.46 11.94 12.18 11.06 10.93 17.57 13.09 11.32

2017 11.32 15.91 9.90 11.47 12.04 11.13 10.28 15.28 11.88 11.23

2015 11.23 14.83 9.78 11.40 11.96 11.51 10.26 15.12 11.71 11.13

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

** For institutions that have adopted ASU 2016-13, the numerator represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, the numerator 

represents the provision for loan and lease losses.

*** Beginning March 2020, does not include institutions that have a Community Bank Leverage Ratio election in effect at the report date.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 9

TABLE IV-A. First Half 2020, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST HALF

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,066 1,010 3,153 755 135 13 607 576 1,085 1,306 1,121 371

Commercial banks 4,430 890 2,784 625 119 12 320 523 935 1,265 1,050 337

Savings institutions 636 120 369 130 16 1 287 53 150 41 71 34

Total assets (in billions) $21,138.0 $60.6 $1,096.1 $2,024.2 $6,097.9 $11,859.2 $3,870.0 $4,363.0 $4,956.3 $4,123.9 $1,684.2 $2,140.6

Commercial banks 19,840.8 53.7 953.8 1,689.3 5,577.2 11,566.8 3,465.1 4,251.4 4,847.2 4,088.6 1,192.9 1,995.7

Savings institutions 1,297.2 6.9 142.3 334.8 520.7 292.4 404.9 111.6 109.2 35.3 491.3 144.9

Total deposits (in billions) 16,960.6 50.0 910.0 1,639.2 4,922.6 9,438.8 3,114.1 3,597.9 3,771.4 3,317.0 1,417.0 1,743.2

Commercial banks 15,906.4 44.8 796.7 1,377.3 4,516.6 9,171.1 2,803.6 3,509.1 3,693.7 3,289.4 985.1 1,625.6

Savings institutions 1,054.2 5.2 113.3 261.9 406.1 267.7 310.4 88.9 77.7 27.7 431.9 117.6

Bank net income (in millions) 37,279 270 6,040 8,781 3,499 18,689 6,176 3,723 11,648 4,221 6,376 5,135

Commercial banks 32,954 253 5,273 7,701 2,367 17,360 5,155 3,889 10,875 4,046 4,600 4,390

Savings institutions 4,325 17 767 1,080 1,132 1,329 1,022 -166 773 176 1,776 745

Performance Ratios (annualized, %)

Yield on earning assets 3.53 4.30 4.39 4.20 4.21 2.98 3.42 3.57 3.08 3.52 3.68 4.55

Cost of funding earning assets 0.56 0.71 0.74 0.72 0.72 0.44 0.67 0.50 0.44 0.58 0.49 0.81

Net interest margin 2.97 3.60 3.65 3.48 3.49 2.54 2.75 3.07 2.65 2.94 3.20 3.74

Noninterest income to assets 1.38 1.33 1.24 1.19 1.29 1.47 1.23 1.25 1.80 1.16 1.05 1.61

Noninterest expense to assets 2.51 3.51 3.05 2.72 2.85 2.25 2.33 2.57 2.47 2.43 2.43 3.04

Credit loss provision to assets** 1.15 0.13 0.26 0.57 1.45 1.17 0.97 1.26 1.09 1.33 0.69 1.35

Net operating income to assets 0.34 0.90 1.15 0.91 0.09 0.30 0.33 0.14 0.48 0.16 0.75 0.46

Pretax return on assets 0.45 1.06 1.38 1.16 0.23 0.35 0.41 0.23 0.62 0.13 0.97 0.78

Return on assets 0.37 0.94 1.19 0.94 0.12 0.33 0.34 0.18 0.50 0.21 0.82 0.51

Return on equity 3.52 6.70 10.15 8.23 1.06 3.34 3.04 1.60 4.99 2.16 7.55 4.63

Net charge-offs to loans and leases 0.56 0.15 0.12 0.22 0.75 0.57 0.52 0.62 0.44 0.59 0.38 0.77

Loan and lease loss provision to 

net charge-offs 377.17 158.20 333.91 360.25 297.81 458.40 343.98 362.53 507.32 429.62 329.17 259.72

Efficiency ratio 58.59 75.12 65.37 60.83 54.44 59.84 58.54 58.50 59.02 62.11 59.82 52.08

% of unprofitable institutions 5.37 10.40 3.71 3.58 15.56 15.38 10.71 8.68 5.07 2.07 4.10 7.82

% of institutions with earnings gains 49.59 43.96 55.25 40.53 13.33 15.38 31.80 42.53 56.13 60.49 47.28 39.08

Condition Ratios (%)

Earning assets to total assets 90.98 92.60 93.75 92.99 92.12 89.78 90.79 90.37 89.91 90.71 93.20 93.78

Loss allowance to:

Loans and leases 2.21 1.36 1.25 1.30 2.39 2.48 1.97 2.26 2.33 2.37 1.42 2.54

Noncurrent loans and leases 205.25 104.64 147.48 150.88 211.82 219.15 195.17 242.50 234.01 165.19 103.30 308.83

Noncurrent assets plus

other real estate owned to assets 0.59 0.91 0.69 0.66 0.74 0.50 0.56 0.52 0.52 0.74 0.79 0.55

Equity capital ratio 10.16 13.59 11.20 10.82 10.88 9.56 10.61 10.65 9.63 9.57 10.41 10.49

Core capital (leverage) ratio 8.77 13.37 10.99 10.23 9.41 7.97 9.09 8.43 8.37 8.69 8.84 9.90

Common equity tier 1 capital ratio*** 13.40 21.63 15.55 13.92 13.21 13.27 13.45 12.77 13.45 13.43 13.55 14.33

Tier 1 risk-based capital ratio*** 13.49 21.63 15.57 13.94 13.39 13.31 13.49 12.87 13.51 13.52 13.66 14.46

Total risk-based capital ratio*** 15.01 22.68 16.68 15.05 14.88 14.94 15.02 14.36 14.93 15.39 14.86 15.82

Net loans and leases to deposits 63.40 68.51 79.53 85.20 76.25 51.32 64.65 62.72 59.42 60.62 62.14 77.46

Net loans to total assets 50.87 56.54 66.02 69.00 61.55 40.85 52.02 51.72 45.22 48.76 52.28 63.08

Domestic deposits to total assets 73.41 82.52 83.01 80.73 78.80 68.46 74.72 80.18 67.00 64.92 84.10 80.07

Structural Changes

New reporters 2 2 0 0 0 0 0 2 0 0 0 0

Institutions absorbed by mergers 104 23 70 10 1 0 21 9 23 19 25 7

Failed institutions 2 0 2 0 0 0 0 1 0 1 0 0

PRIOR FIRST HALVES

(The way it was...)

Number of institutions 2019 5,303 1,230 3,281 651 132 9 640 611 1,143 1,357 1,165 387

2017 5,787 1,471 3,564 631 112 9 709 693 1,232 1,464 1,253 436

2015 6,348 1,799 3,847 591 102 9 787 788 1,371 1,571 1,338 493

Total assets (in billions) 2019 $18,265.9 $72.7 $1,090.1 $1,716.1 $6,287.9 $9,099.1 $3,316.9 $3,735.2 $4,220.8 $3,745.8 $1,169.1 $2,078.1

2017 17,069.5 87.1 1,159.0 1,752.2 5,432.6 8,638.6 3,137.2 3,540.4 3,890.5 3,692.3 1,045.1 1,763.9

2015 15,753.6 105.7 1,203.2 1,616.8 4,737.8 8,090.2 3,063.0 3,292.1 3,537.0 3,405.9 930.3 1,525.4

Return on assets (%) 2019 1.36 0.99 1.29 1.26 1.42 1.36 1.13 1.42 1.35 1.32 1.36 1.74

2017 1.09 0.93 1.09 1.18 1.10 1.06 0.93 1.10 1.01 1.07 1.21 1.45

2015 1.06 0.92 1.00 1.18 1.04 1.06 0.90 1.04 0.95 1.20 1.09 1.32

Net charge-offs to loans & leases (%) 2019 0.50 0.14 0.10 0.19 0.66 0.52 0.46 0.56 0.39 0.52 0.21 0.78

2017 0.49 0.17 0.12 0.21 0.71 0.46 0.56 0.58 0.29 0.49 0.27 0.66

2015 0.43 0.14 0.12 0.20 0.54 0.48 0.47 0.50 0.26 0.52 0.19 0.48

Noncurrent assets plus 

OREO to assets (%) 2019 0.57 0.97 0.73 0.64 0.60 0.51 0.54 0.58 0.53 0.62 0.76 0.45

2017 0.75 1.06 0.90 0.74 0.71 0.75 0.67 0.88 0.67 0.86 0.86 0.48

2015 1.04 1.35 1.27 1.04 0.80 1.15 0.76 1.28 1.00 1.30 1.09 0.57

Equity capital ratio (%) 2019 11.47 14.36 11.95 12.08 12.07 10.85 12.07 12.29 11.18 10.29 12.13 11.38

2017 11.32 13.09 11.36 11.82 12.37 10.55 12.46 12.21 10.38 10.08 11.32 12.22

2015 11.23 12.53 11.28 11.84 12.40 10.39 11.74 12.36 10.13 10.32 11.14 12.37

* See Table V-A (page 11) for explanations.

** For institutions that have adopted ASU 2016-13, the numerator represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, the numerator 

represents the provision for loan and lease losses.

*** Beginning March 2020, does not include institutions that have a Community Bank Leverage Ratio election in effect at the report date.
2020   •   Volume 14  • Number 3

10 FDIC QUARTERLY

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

Asset Concentration Groups*

June 30, 2020 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 0.53 0.22 0.41 0.62 0.42 0.59 0.25 0.98 0.72 0.80

Construction and development 0.41 0.07 0.06 1.12 0.39 1.49 1.21 0.83 0.65 0.43

Nonfarm nonresidential 0.30 0.00 0.23 0.41 0.26 1.12 0.25 0.85 0.53 0.43

Multifamily residential real estate 0.16 0.00 0.21 0.22 0.16 0.55 0.03 0.01 0.34 0.08

Home equity loans 0.51 0.00 0.81 0.39 0.45 0.35 0.11 0.24 0.44 0.53

Other 1-4 family residential 0.79 0.23 0.50 0.73 0.71 0.53 0.25 1.08 0.82 1.05

Commercial and industrial loans 0.27 1.04 0.37 0.53 0.24 0.21 0.23 0.61 0.55 0.24

Loans to individuals 1.02 1.14 0.81 0.78 0.79 0.31 0.93 1.00 1.02 1.22

Credit card loans 1.00 1.15 0.87 0.57 1.06 0.80 0.57 2.70 1.38 0.94

Other loans to individuals 1.03 0.94 0.64 0.80 0.77 0.29 0.93 0.91 1.01 1.36

All other loans and leases (including farm) 0.30 0.85 0.48 0.78 0.25 0.09 0.00 0.50 0.58 0.18

Total loans and leases 0.51 1.12 0.50 0.64 0.38 0.55 0.69 0.89 0.72 0.63

Percent of Loans Noncurrent**

All real estate loans 1.37 0.65 1.32 1.25 1.01 0.90 0.27 1.46 1.04 2.32

Construction and development 0.55 2.28 0.58 0.46 0.50 0.68 3.64 1.89 1.05 0.75

Nonfarm nonresidential 0.78 0.00 1.23 1.04 0.71 0.60 1.13 1.37 1.13 0.98

Multifamily residential real estate 0.19 0.00 0.09 0.49 0.17 0.31 0.04 0.11 0.81 0.39

Home equity loans 1.89 0.00 4.40 0.30 1.21 1.67 0.30 0.48 0.62 2.28

Other 1-4 family residential 2.09 0.61 1.52 0.86 1.75 0.89 0.23 1.52 0.99 3.03

Commercial and industrial loans 1.01 0.75 1.36 0.95 0.86 0.33 3.70 0.63 0.72 1.09

Loans to individuals 0.90 1.56 0.92 0.47 0.62 0.13 0.30 0.55 0.54 0.76

Credit card loans 1.35 1.63 1.12 0.31 1.25 0.71 0.64 1.93 1.09 1.22

Other loans to individuals 0.50 0.45 0.30 0.48 0.56 0.11 0.30 0.48 0.53 0.53

All other loans and leases (including farm) 0.38 0.00 0.39 1.32 0.41 0.15 0.08 0.39 0.67 0.29

Total loans and leases 1.08 1.48 1.02 1.19 0.89 0.82 0.53 1.14 0.94 1.37

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.02 0.08 -0.04 0.05 0.03 -0.02 0.02 0.19 0.03 0.02

Construction and development 0.01 -0.13 -0.02 0.02 0.02 -0.02 0.00 0.38 0.12 -0.04

Nonfarm nonresidential 0.06 0.00 0.04 0.07 0.07 0.03 0.00 0.43 0.00 0.05

Multifamily residential real estate 0.00 0.00 0.00 -0.01 0.00 -0.02 -0.01 0.03 0.00 0.00

Home equity loans -0.02 0.00 -0.05 0.01 0.02 -0.16 0.40 -0.09 0.03 -0.06

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

Commercial and industrial loans 0.56 2.58 0.58 0.24 0.56 0.09 0.03 0.15 0.02 0.48

Loans to individuals 2.43 4.50 2.97 0.41 1.21 0.59 0.59 1.21 0.47 1.80

Credit card loans 4.01 4.64 3.68 1.52 4.48 3.03 1.67 1.93 4.27 3.39

Other loans to individuals 0.90 2.29 0.62 0.29 0.89 0.47 0.59 1.16 0.41 0.95

All other loans and leases (including farm) 0.16 0.00 0.12 0.29 0.17 0.08 0.02 0.46 0.11 0.19

Total loans and leases 0.56 4.30 0.78 0.14 0.26 0.02 0.41 0.34 0.07 0.49

Loans Outstanding (in billions)

All real estate loans $5,110.7 $1.7 $548.1 $108.7 $2,953.5 $148.3 $21.4 $6.4 $36.4 $1,286.3

Construction and development 380.6 0.1 16.9 6.7 295.1 4.2 0.1 0.5 2.1 54.8

Nonfarm nonresidential 1,545.8 0.0 57.7 28.2 1,169.9 11.2 0.7 2.0 7.5 268.4

Multifamily residential real estate 474.0 0.0 85.8 3.7 326.0 3.2 0.3 0.2 1.1 53.8

Home equity loans 324.5 0.0 34.9 1.9 178.8 7.5 0.1 0.1 1.2 99.9

Other 1-4 family residential 2,216.4 1.6 301.7 25.3 931.1 121.5 20.0 3.0 21.4 790.6

Commercial and industrial loans 2,689.1 33.8 400.1 30.0 1,394.6 7.8 6.7 1.8 5.5 809.0

Loans to individuals 1,704.2 340.7 352.8 5.9 340.8 7.6 61.2 1.3 3.8 590.0

Credit card loans 808.2 318.9 265.4 0.6 28.6 0.3 0.3 0.1 0.1 194.0

Other loans to individuals 896.0 21.9 87.4 5.3 312.2 7.3 60.9 1.2 3.8 396.0

All other loans and leases (including farm) 1,494.8 0.2 428.7 41.2 426.6 4.8 3.5 0.5 2.6 586.7

Total loans and leases (plus unearned income) 10,998.8 376.5 1,729.6 185.8 5,115.4 168.5 92.7 10.0 48.3 3,271.9

Memo: Other Real Estate Owned (in millions)

All other real estate owned 5,021.5 0.7 321.9 246.4 3,449.4 69.6 4.9 27.6 98.5 802.5

Construction and development 1,197.3 0.6 4.0 34.5 1,048.5 15.3 1.2 12.8 23.0 57.4

Nonfarm nonresidential 1,810.1 0.0 39.0 74.9 1,442.0 10.2 0.8 9.0 32.0 202.1

Multifamily residential real estate 77.1 0.0 0.0 4.5 70.0 0.8 0.0 0.0 1.8 0.0

1-4 family residential 1,732.5 0.1 247.9 42.9 808.7 43.3 2.5 5.7 38.5 542.8

Farmland 173.6 0.0 0.0 89.6 80.3 0.0 0.4 0.0 3.3 0.1

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

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

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

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

Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans secured by commercial real estate properties exceed 25 

percent of total assets.

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

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

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

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

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

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

June 30, 2020 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 0.53 0.91 0.48 0.38 0.52 0.62 0.49 0.53 0.44 0.73 0.63 0.34

Construction and development 0.41 0.74 0.46 0.43 0.40 0.35 0.64 0.35 0.28 0.40 0.36 0.37

Nonfarm nonresidential 0.30 0.75 0.36 0.29 0.26 0.33 0.34 0.19 0.30 0.42 0.26 0.30

Multifamily residential real estate 0.16 0.62 0.25 0.15 0.15 0.16 0.19 0.12 0.10 0.47 0.09 0.07

Home equity loans 0.51 0.35 0.40 0.34 0.49 0.57 0.52 0.46 0.52 0.63 0.39 0.40

Other 1-4 family residential 0.79 1.10 0.61 0.55 0.88 0.83 0.73 0.83 0.60 1.01 1.36 0.43

Commercial and industrial loans 0.27 0.81 0.31 0.28 0.26 0.27 0.22 0.21 0.28 0.30 0.26 0.40

Loans to individuals 1.02 1.20 1.10 0.95 0.99 1.04 0.93 1.32 0.65 1.03 0.57 1.18

Credit card loans 1.00 1.12 1.43 2.10 1.09 0.91 1.09 1.12 0.80 0.97 0.42 1.11

Other loans to individuals 1.03 1.20 1.08 0.73 0.90 1.18 0.81 1.50 0.51 1.12 0.63 1.25

All other loans and leases (including farm) 0.30 0.73 0.64 0.38 0.22 0.31 0.11 0.20 0.34 0.51 0.20 0.23

Total loans and leases 0.51 0.89 0.48 0.39 0.51 0.54 0.45 0.54 0.41 0.63 0.50 0.53

Percent of Loans Noncurrent** 

All real estate loans 1.37 1.36 0.90 0.86 1.39 1.76 1.20 1.24 1.34 2.06 1.78 0.59

Construction and development 0.55 0.74 0.78 0.55 0.40 0.68 1.09 0.43 0.55 0.33 0.32 0.51

Nonfarm nonresidential 0.78 1.39 0.85 0.83 0.68 0.86 0.77 0.62 0.93 0.96 0.66 0.83

Multifamily residential real estate 0.19 0.59 0.40 0.20 0.15 0.17 0.19 0.46 0.17 0.12 0.16 0.09

Home equity loans 1.89 0.70 0.62 0.62 1.27 2.80 1.95 1.35 2.18 2.98 1.04 0.79

Other 1-4 family residential 2.09 1.18 0.88 1.13 2.57 2.26 1.88 1.83 1.76 3.03 4.25 0.49

Commercial and industrial loans 1.01 1.16 0.59 0.97 1.02 1.06 0.89 0.83 0.99 1.30 0.94 1.20

Loans to individuals 0.90 0.74 0.71 0.72 1.04 0.81 1.01 0.93 0.60 0.94 0.62 1.10

Credit card loans 1.35 0.58 1.84 2.74 1.57 1.14 1.58 1.43 1.00 1.27 1.20 1.55

Other loans to individuals 0.50 0.74 0.63 0.32 0.54 0.48 0.60 0.48 0.25 0.41 0.42 0.74

All other loans and leases (including farm) 0.38 1.44 1.14 0.51 0.37 0.34 0.37 0.16 0.41 0.51 0.34 0.47

Total loans and leases 1.08 1.30 0.85 0.86 1.13 1.13 1.01 0.93 1.00 1.43 1.37 0.82

Percent of Loans Charged-Off 

(net, YTD) 

All real estate loans 0.02 0.05 0.03 0.03 0.02 0.01 0.03 0.03 0.00 0.02 0.03 0.00

Construction and development 0.01 -0.01 0.04 0.04 0.00 -0.03 0.00 0.01 0.02 -0.07 0.02 0.07

Nonfarm nonresidential 0.06 0.07 0.05 0.06 0.06 0.07 0.08 0.07 0.09 0.06 0.06 0.01

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

Home equity loans -0.02 0.16 0.03 0.03 0.01 -0.05 0.01 -0.04 0.03 -0.07 -0.03 -0.02

Other 1-4 family residential -0.01 0.02 0.01 0.02 0.00 -0.02 0.01 0.00 -0.05 0.00 0.01 -0.01

Commercial and industrial loans 0.56 0.46 0.24 0.35 0.77 0.49 0.40 0.52 0.55 0.49 1.13 0.70

Loans to individuals 2.43 0.43 1.12 2.13 2.74 2.25 2.59 2.39 1.90 2.90 1.41 2.68

Credit card loans 4.01 4.06 6.51 8.02 4.46 3.54 4.29 3.98 3.37 4.05 3.07 4.62

Other loans to individuals 0.90 0.40 0.73 0.87 0.98 0.84 1.26 0.85 0.46 0.96 0.81 1.01

All other loans and leases (including farm) 0.16 0.21 0.16 0.41 0.10 0.17 0.22 0.19 0.13 0.19 0.12 0.07

Total loans and leases 0.56 0.15 0.12 0.22 0.75 0.57 0.52 0.62 0.44 0.59 0.38 0.77

Loans Outstanding (in billions) 

All real estate loans $5,110.7 $22.3 $519.7 $946.9 $1,788.7 $1,833.1 $1,058.9 $966.3 $994.4 $904.0 $538.9 $648.2

Construction and development 380.6 1.3 48.3 97.5 152.4 81.2 73.5 64.0 63.3 53.2 83.1 43.5

Nonfarm nonresidential 1,545.8 4.7 193.6 396.0 605.9 345.6 354.8 304.8 228.3 207.6 221.4 228.9

Multifamily residential real estate 474.0 0.5 28.2 101.5 205.0 138.9 163.9 47.1 118.5 42.0 25.2 77.4

Home equity loans 324.5 0.5 17.1 37.3 114.9 154.6 68.0 78.7 79.1 53.8 19.7 25.2

Other 1-4 family residential 2,216.4 10.7 182.4 285.0 694.4 1,043.9 393.9 457.9 481.0 450.4 170.4 262.8

Commercial and industrial loans 2,689.1 5.4 141.1 324.0 931.4 1,287.3 463.4 636.0 601.9 476.3 214.5 297.0

Loans to individuals 1,704.2 2.1 27.2 69.2 729.5 876.2 297.5 405.3 327.4 297.1 68.8 308.2

Credit card loans 808.2 0.0 1.7 11.5 354.8 440.1 125.3 191.2 154.5 182.2 17.5 137.5

Other loans to individuals 896.0 2.1 25.4 57.7 374.7 436.1 172.2 214.1 172.9 114.9 51.3 170.6

All other loans and leases (including farm) 1,494.8 4.9 45.5 76.1 397.1 971.2 234.9 301.6 371.2 383.0 71.6 132.5

Total loans and leases 

(plus unearned income) 10,998.8 34.8 733.4 1,416.1 3,846.6 4,967.9 2,054.6 2,309.2 2,294.9 2,060.4 893.8 1,385.9

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 5,021.5 98.0 1,309.8 1,187.0 1,407.8 1,019.0 875.2 1,093.6 1,047.9 758.8 990.2 255.9

Construction and development 1,197.3 15.9 507.6 371.3 238.5 63.9 150.5 341.3 147.8 172.7 309.3 75.7

Nonfarm nonresidential 1,810.1 33.9 434.4 523.7 588.3 229.7 261.9 345.9 418.0 263.1 435.5 85.6

Multifamily residential real estate 77.1 5.0 39.5 21.0 10.0 1.5 9.1 20.8 10.4 12.4 14.4 10.0

1-4 family residential 1,732.5 34.5 236.4 212.3 556.5 692.8 450.7 372.5 428.3 233.6 177.9 69.6

Farmland 173.6 8.7 91.8 58.5 14.4 0.1 2.9 13.2 18.4 71.1 53.0 15.0

* 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.
2020   •   Volume 14  • Number 3

12 FDIC QUARTERLY

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

2nd 

Quarter 

2020

1st 

Quarter 

2020

4th

Quarter 

2019

3rd

Quarter 

2019

2nd 

Quarter 

2019

% 

Change 

19Q2-

20 Q2

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 1,379 1,361 1,328 1,340 1,344 2.6 33 700 509 124 13

Total assets of institutions reporting derivatives $19,420,950 $18,647,372 $17,062,953 $16,899,831 $16,695,840 16.3 $2,387 $320,417 $1,513,733 $5,725,202 $11,859,212

Total deposits of institutions reporting derivatives 15,565,889 14,473,395 13,260,629 13,006,277 12,779,364 21.8 1,935 263,769 1,225,544 4,635,813 9,438,829

Total derivatives 181,706,384 199,743,579 173,052,331 203,562,352 207,258,184 -12.3 554 40,537 233,343 6,162,706 175,269,243

Derivative Contracts by Underlying Risk Exposure 

Interest rate 132,102,397 146,069,414 125,078,757 147,186,848 151,863,633 -13.0 554 40,010 225,375 4,181,040 127,655,418

Foreign exchange* 41,266,832 44,381,157 38,736,894 46,694,639 46,115,633 -10.5 0 0 4,716 1,672,834 39,589,282

Equity 3,574,339 3,661,579 3,796,106 3,835,456 3,722,531 -4.0 0 18 55 95,914 3,478,352

Commodity & other (excluding credit derivatives) 1,506,889 1,643,731 1,495,227 1,662,059 1,482,094 1.7 0 0 22 81,600 1,425,267

Credit 3,254,590 3,986,479 3,944,681 4,182,691 4,073,984 -20.1 0 29 2,319 131,318 3,120,925

Total 181,705,047 199,742,360 173,051,665 203,561,693 207,257,875 -12.3 554 40,057 232,487 6,162,706 175,269,243

Derivative Contracts by Transaction Type 

Swaps 101,734,113 110,598,852 96,614,183 108,935,550 110,905,216 -8.3 2 2,190 123,543 3,713,570 97,894,808

Futures & forwards 41,018,378 46,803,939 34,786,564 47,061,050 46,208,809 -11.2 1 4,289 36,097 1,672,247 39,305,744

Purchased options 16,881,937 18,151,997 18,118,533 20,733,104 21,891,612 -22.9 1 337 14,138 275,760 16,591,701

Written options 16,682,515 17,959,294 17,998,526 20,343,921 21,794,096 -23.5 4 3,444 28,357 263,530 16,387,181

Total 176,316,944 193,514,081 167,517,806 197,073,626 200,799,733 -12.2 8 10,259 202,135 5,925,107 170,179,434

Fair Value of Derivative Contracts 

Interest rate contracts 60,214 48,270 49,831 53,929 55,924 7.7 0 61 -615 18,878 41,890

Foreign exchange contracts -19,636 -16,009 -7,869 2,817 -2,565 N/M 0 0 17 1,342 -20,995

Equity contracts -1,171 9,837 -1,203 1,597 -1,110 N/M 0 -1 1 -28 -1,143

Commodity & other (excluding credit derivatives) -3,801 9,802 -1,310 -4,100 -2,161 N/M 0 0 0 -127 -3,674

Credit derivatives as guarantor** -2,237 -24,127 25,920 20,454 18,529 N/M 0 0 23 -725 -1,535

Credit derivatives as beneficiary** -557 26,454 -26,965 -22,966 -21,734 N/M 0 0 -27 343 -873

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 80,157,645 92,837,733 79,135,461 88,724,450 90,569,966 -11.5 24 6,514 47,849 1,627,577 78,475,681

1-5 years 41,098,658 43,088,492 35,856,425 37,506,842 39,191,526 4.9 5 1,596 45,898 1,424,595 39,626,564

> 5 years 19,986,251 20,987,178 24,264,386 24,491,078 24,215,323 -17.5 3 3,187 83,838 820,457 19,078,766

Foreign exchange and gold contracts < 1 year 29,049,559 31,570,063 28,241,089 33,602,158 32,804,737 -11.4 0 0 3,243 1,401,868 27,644,448

1-5 years 4,238,687 4,127,647 4,052,351 4,279,836 4,340,277 -2.3 0 0 551 151,256 4,086,879

> 5 years 2,179,498 2,152,437 2,146,242 2,148,934 2,170,971 0.4 0 0 11 47,704 2,131,782

Equity contracts < 1 year 2,850,740 2,959,453 3,083,994 2,687,265 2,725,454 4.6 0 6 20 51,499 2,799,215

1-5 years 825,667 779,791 844,052 994,632 972,497 -15.1 0 12 4 35,353 790,298

> 5 years 128,679 124,492 136,149 147,521 149,222 -13.8 0 0 5 8,736 119,938

Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 1,860,285 2,040,847 2,094,288 1,960,750 2,008,663 -7.4 0 13 39 39,908 1,820,324

1-5 years 2,163,848 2,612,164 2,785,983 2,819,249 2,803,027 -22.8 0 1 581 63,750 2,099,516

> 5 years 227,777 449,878 260,844 430,569 260,548 -12.6 0 80 1,114 7,358 219,225

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 31.9 37.9 23.7 27.4 23.9 1.7 0.8 3.4 8.6 50.5

Total potential future exposure to tier 1 capital (%) 29.6 29.6 34.5 35.0 36.6 0.0 0.2 1.2 6.5 47.9

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 61.5 67.6 58.2 62.4 60.5 1.7 1.0 4.6 15.1 98.4

Credit losses on derivatives  124.6 82.7 20.0 21.6 26.3 373.8 0.0 0.0 1.4 14.5 108.7

HELD FOR TRADING 

Number of institutions reporting derivatives 186 182 174 175 189 -1.6 0 21 86 68 11

Total assets of institutions reporting derivatives 15,394,407 14,841,552 13,426,816 13,313,319 13,222,401 16.4 0 10,568 331,246 3,869,740 11,182,854

Total deposits of institutions reporting derivatives 12,274,431 11,424,297 10,356,388 10,147,948 10,023,986 22.5 0 8,845 267,822 3,158,530 8,839,234

Derivative Contracts by Underlying Risk Exposure 

Interest rate 129,035,486 143,093,184 122,492,314 144,532,347 149,515,929 -13.7 0 524 44,625 3,451,364 125,538,974

Foreign exchange 38,663,882 41,651,419 36,707,246 43,930,653 43,278,150 -10.7 0 0 4,034 1,539,992 37,119,855

Equity 3,549,571 3,639,261 3,777,097 3,817,653 3,704,416 -4.2 0 0 20 85,642 3,463,910

Commodity & other 1,473,915 1,611,455 1,464,169 1,631,150 1,451,571 1.5 0 0 15 79,481 1,394,418

Total 172,722,855 189,995,319 164,440,827 193,911,802 197,950,066 -12.7 0 524 48,695 5,156,479 167,517,157

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  4,647 4,947 4,476 1,526 2,730 70.2 0 0 7 379 4,260

Foreign exchange** 3,841 2,167 662 2,718 2,900 32.4 0 0 3 15 3,823

Equity** 4,148 -1,040 1,427 1,805 2,464 68.3 0 0 5 40 4,103

Commodity & other (including credit derivatives)** 2,036 612 634 1,152 -14 N/M 0 0 0 314 1,721

Total trading revenues** 14,671 6,686 7,199 7,201 8,080 81.6 0 0 15 748 13,907

Share of Revenue 

Trading revenues to gross revenues (%)** 9.9 4.2 4.5 4.3 4.8 0.0 0.0 0.4 2.0 13

Trading revenues to net operating revenues (%)** 305.8 60.1 21.2 18.6 19.0 0.0 0.0 2.8 38.9 607.6

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 625 616 641 662 720 -13.2 2 160 335 115 13

Total assets of institutions reporting derivatives 18,555,410 17,928,535 16,491,529 16,313,116 16,228,439 14.3 150 78,997 1,178,026 5,439,025 11,859,212

Total deposits of institutions reporting derivatives 14,853,065 13,891,758 12,797,489 12,531,710 12,402,599 19.8 125 64,576 951,935 4,397,600 9,438,829

Derivative Contracts by Underlying Risk Exposure 

Interest rate 3,009,014 2,934,180 2,564,078 2,633,532 2,335,655 28.8 8 9,717 153,169 729,676 2,116,445

Foreign exchange 527,333 529,987 462,834 479,579 465,373 13.3 0 0 230 26,561 500,543

Equity 24,768 22,318 19,009 17,803 18,116 36.7 0 18 36 10,273 14,442

Commodity & other 32,974 32,277 31,059 30,910 30,523 8.0 0 0 7 2,119 30,848

Total notional amount 3,594,089 3,518,762 3,076,980 3,161,823 2,849,667 26.1 8 9,735 153,441 768,628 2,662,277

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

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

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

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

**** Credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and banks filing the FFIEC 041 report form that have $300 million or more in total assets, but is not 

applicaable to banks filing the FFIEC 051 form.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

2nd 

Quarter 

2020

1st 

Quarter

2020

4th 

Quarter

2019

3rd 

Quarter

2019

2nd 

Quarter

2019

% 

Change 

19Q2-

20Q2

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 61 62 63 67 65 -6.2 0 5 14 34 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $448,044 $451,456 $474,309 $452,433 $465,275 -3.7 $0 $1,338 $20,009 $98,424 $328,273

Home equity loans 9 9 11 11 12 -25.0 0 0 0 9 0

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

Auto loans 980 1,196 1,448 1,793 2,494 -60.7 0 0 0 980 0

Other consumer loans 1,512 1,587 1,661 1,738 1,603 -5.7 0 0 0 739 773

Commercial and industrial loans 0 0 0 537 558 -100.0 0 0 0 0 0

All other loans, leases, and other assets 90,069 88,439 83,875 76,770 73,791 22.1 0 0 8,505 3,602 77,962

Total securitized and sold 540,614 542,687 561,304 533,282 543,733 -0.6 0 1,338 28,514 103,754 407,008

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,522 1,726 1,326 1,371 1,055 44.3 0 0 51 696 776

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

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

Auto loans 48 53 59 66 86 -44.2 0 0 0 48 0

Other consumer loans 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

All other loans, leases, and other assets 2,211 1,645 1,366 1,324 1,230 79.8 0 0 91 100 2,020

Total credit exposure 3,781 3,424 2,751 2,761 2,371 59.5 0 0 142 844 2,796

Total unused liquidity commitments provided to institution’s own securitizations 32 29 24 203 185 -82.7 0 0 0 0 32

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

1-4 family residential loans 5.9 3.7 3.5 3.6 4.0 0.0 3.7 2.0 2.7 7.1

Home equity loans 8.3 19.7 9.8 7.8 7.1 0.0 0.0 0.0 8.3 0.0

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

Auto loans 2.6 4.5 3.2 2.7 2.3 0.0 0.0 0.0 2.6 0.0

Other consumer loans 3.0 3.7 3.6 3.3 4.5 0.0 0.0 0.0 0.9 5.1

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 4.7 0.1 0.1 0.3 0.2 0.0 0.0 0.1 1.3 5.4

Total loans, leases, and other assets 6.5 3.4 3.2 3.2 3.6 0.0 0.0 0.0 3.3 6.8

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

1-4 family residential loans 4.6 1.0 1.0 1.1 1.1 0.0 2.5 1.9 2.8 5.3

Home equity loans 28.9 29.3 33.6 33.5 35.9 0.0 0.0 0.0 28.9 0.0

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

Auto loans 0.9 0.8 0.6 0.5 0.5 0.0 0.0 0.0 0.9 0.0

Other consumer loans 3.2 3.6 3.7 3.4 4.0 0.0 0.0 0.0 0.8 5.5

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 0.3 0.3 0.2 0.0 0.0 1.4 0.3 0.3

Total loans, leases, and other assets 4.3 0.8 0.8 0.9 0.9 0.0 0.0 0.0 3.7 4.4

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 8.4 6.9 8.6 6.9 3.6 0.0 0.0 0.0 8.4 0.0

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

Auto loans 1.1 0.5 1.9 1.2 0.7 0.0 0.0 0.0 1.1 0.0

Other consumer loans 0.4 0.1 0.7 0.5 0.4 0.0 0.0 0.0 0.2 0.6

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

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

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

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

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

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

Commercial and industrial loans 0 0 0 629 644 -100.0 0 0 0 0 0

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 345 339 371 388 437 -21.1 5 120 151 60 9

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 29,015 27,752 30,320 29,841 90,099 -67.8 49 4,644 11,357 11,200 1,766

All other loans, leases, and other assets 126,493 123,427 124,159 122,896 121,462 4.1 0 12 144 34,408 91,928

Total sold and not securitized 155,508 151,179 154,479 152,737 211,560 -26.5 49 4,656 11,501 45,608 93,694

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 10,778 9,675 10,161 10,181 10,410 3.5 2 579 4,486 4,820 891

All other loans, leases, and other assets 36,423 35,313 34,793 34,483 34,162 6.6 0 12 93 10,802 25,516

Total credit exposure 47,201 44,989 44,953 44,665 44,572 5.9 2 591 4,579 15,622 26,407

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 35 36 36 37 41 -14.6 1 8 13 8 5

Total credit exposure 26,480 22,894 23,214 23,169 23,532 12.5 0 0 0 1,543 24,937

Total unused liquidity commitments 413 208 413 411 658 -37.2 0 0 0 295 118

Other

Assets serviced for others** 5,912,368 6,185,652 6,187,243 6,101,597 6,095,333 -3.0 3,374 136,714 351,107 1,213,613 4,207,560

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 17,348 18,170 17,948 16,186 16,249 6.8 0 0 0 0 17,348

Unused liquidity commitments to conduits sponsored by institutions 

 and others 30,319 30,889 31,652 30,536 29,907 1.4 0 0 0 1,534 28,785

Net servicing income (for the quarter) -237 -1,757 2,204 300 -304 -22.0 7 222 101 132 -699

Net securitization income (for the quarter) 39 37 138 65 72 -45.8 0 12 7 4 16

Total credit exposure to Tier 1 capital (%)*** 3.8 3.6 3.6 3.6 3.5 0.0 0.0 0.0 0.7 3.0

* 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 2012 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.

Net Income for Community Banks Increases 3.2 Percent Year Over Year

Provision Expenses Increase Reflecting the Continued Economic Uncertainty

Paycheck Protection Program Lending Drives Loan Growth of 13.5 Percent From the Year-Ago Quarter

Asset Quality Declines Modestly

Net Income Increases 

3.2 Percent Despite Rise in 

Provision Expenses

Community banks maintained profitability amid the economic recession in second quarter 2020. Despite a nearly threefold increase in provision expenses (up 273.2 percent) and 

continued net interest margin (NIM) compression, community banks reported net income 

growth of 3.2 percent from second quarter 2019. Gains from the sale of loans and securities increased from a year ago and drove the aggregate profitability. More than half of 

all community banks (53.8 percent) reported higher annual earnings as net income grew 

$202.5 million to $6.63 billion year over year.

Net income growth lifted the pretax return on average assets (ROA) ratio 33 basis points 

from the previous quarter to 1.36 percent—1.1 percentage points higher than that of 

noncommunity banks. The gap between community and noncommunity bank ROA ratios is 

the widest the industry has seen since fourth quarter 2010.

Provisions for loan and lease losses (provisions) climbed $1.8 billion year over year to 

$2.4 billion as community banks bolstered reserves for loan and lease losses (reserves) 

to help absorb estimated credit losses. Nearly three out of five community banks 

(59.6 percent) reported an increase in provision expenses during the year ending second 

quarter 2020. Provisions reported by community banks that did not adopt the Current 

Expected Credit Losses (CECL) accounting methodology totaled $2 billion, up 257.1 percent 

from the year-ago quarter. Provisions made by the 53 community banks that adopted CECL 

totaled $372.2 million, up 351.7 percent from a year ago.1

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

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

+6% +273% +33% +5% +131% -1%

+$0.20 $1.03 $1.77 $1.50 $0.76 $0.30 -$0.02

3%

Chart 1

Source: FDIC.

Net Interest Margin

Percent 

Community Banks (3.51)

Industry (2.81)

2.75

3.00

3.25

3.50

3.75

4.00

4.25

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Chart 2

1 The number of community bank CECL adopters this quarter was up by 12 (one CECL adopter from first quarter did not 

report this quarter), raising the net number of community bank CECL adopters from 42 in first quarter to 53 in second 

quarter.
2020   •   Volume 14  • Number 3

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

Commercial &

Industrial 1–4 FamilyResidential

RE

Construction &

Development

Agricultural

Production Commercial RE& Construction Commercial& Industrial

-20

0

20

40

60

80

100

120

140

160

Change 2Q 2020 vs. 2Q 2019

Change 2Q 2020 vs. 1Q 2020

31.6

8.0

143.1

10.4

-0.3

0.3

17.4

5.9

134.2

2.5 1.9 2.1

-1.6

13.1

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Share of Loan Portfolio Noncurrent

Percent

0

2

4

6

8

10

12

14

16

C&D Loans

Nonfarm Nonresidential RE

1–4 Family RE

C&I Loans

Farm Loans

Home Equity

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Chart 4

Total reserves increased to $20.8 billion (up $3.5 billion, or 20.4 percent) compared with the 

same quarter one year ago. More than three-quarters (76.5 percent) of community banks 

reported higher reserve balances during the quarter. As reserve growth outpaced that of 

noncurrent loans, the year-over-year reserve coverage ratio increased from 148.14 percent 

to 151.91 percent—a peak since year-end 2006.

The quarterly NIM contracted 17 basis points year over year to 3.51 percent (compared with 

contraction of 58 basis points for the industry). NIM contraction was caused by asset yields 

declining at a faster rate than funding costs, along with substantial growth in low-yield 

assets.

Net Operating Revenue 

Rises Because of Elevated 

Noninterest Income

Net operating revenue increased by $2.5 billion (11.2 percent) year over year to $25.2 billion 

primarily due to increases in both net interest income and noninterest income. Net interest 

income rose $1 billion (up 5.7 percent) to $19.1 billion during the year ending second quarter 

as commercial and industrial (C&I) loan income increased and interest expense declined.

Higher gains on the sale of loans (up $1.4 billion, or 142.2 percent) and securities (up 

$299.8 million, or 130.7 percent) lifted noninterest income by $1.5 billion to $6 billion from 

the year-ago quarter. This growth supported an increase in the ratio of noninterest income 

as a percentage of average assets to 1.03 percent—the highest level since second quarter 2013.

C&I loan income increased by $892 million (up 29.3 percent) compared with the same period 

one year ago. PPP lending activity contributed significantly to this growth, with more than 

four out of five community banks (82 percent) participating in the PPP program during 

second quarter 2020.

Total interest expense declined $1.2 billion (26.3 percent) to $3.5 billion year over year. Lower 

interest expense on domestic deposits (down $1.1 billion, or 26.3 percent) drove this decline.

Noninterest Expense 

Grows Along With 

Payroll Expenses and 

Average Assets

Noninterest expense rose $762.2 million (5.2 percent) to $15.4 billion compared with second 

quarter 2019. Nearly three out of five community banks (58.7 percent) reported higher 

noninterest expenses compared with the same period last year. Payroll expenses rose to 

$625.1 million (7.4 percent) from a year ago, but payroll expense as a percentage of average 

assets remained relatively stable.

Paycheck Protection 

Program Participation 

Drives Aggregate Loan 

Growth

Total loans and leases grew 13.5 percent to $1.7 trillion year over year. PPP lending activity, reported primarily as a component of the C&I portfolio, drove this increase. Annual 

loan growth was concentrated in the following categories: C&I loans (up $143 billion, or 

69.6 percent), nonfarm nonresidential loans (up $31.6 billion, or 7.1 percent), and 1–4 family 

residential real estate loans (up $10.4 billion, or 2.7 percent). More than four out of five 

community banks (83 percent) reported an increase in loan and lease balances year over year.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Community banks continued to originate small loans to businesses, which increased 

to $375 billion (up $91.2 billion, or 32 percent) during the year. Most of this growth 

(98.4 percent) was driven by PPP lending activity in the C&I portfolio. The number of 

PPP loans held by community banks was 1.4 million for a total of $148 billion or 8.7 percent 

of total loans. Community banks hold 30.8 percent of total outstanding banking industry 

PPP loans, above their 12 percent share of banking industry assets.

Total loans and leases rose $147.7 billion (up 9.5 percent) from the previous quarter. This 

growth was primarily driven by increases in C&I loans (up $134.2 billion, or 62.2 percent).

Noncurrent Loan 

Balances Rise

Noncurrent loan balances grew $1.8 billion (15 percent) to $13.7 billion from the year-ago 

quarter, lifting the noncurrent rate for total loans and leases 4 basis points to 0.80 percent. 

The farm loan portfolio suffered the most deterioration year over year. The noncurrent rate 

for agricultural production loans rose 28 basis points to 1.22 percent, and the noncurrent 

rate for farmland loans rose 31 basis points to 1.84 percent—a peak since third quarter 2011.

The noncurrent rate for nonfarm nonresidential loans increased 10 basis points from 

second quarter 2019 to 0.74 percent. The noncurrent rate for construction and development 

loans also rose during the same period increasing 9 basis points to 0.67 percent. However, 

this ratio remains below the fourth quarter 2010 peak of 3.30 percent.

Net Charge-Off Rates 

Remain Stable

Net charge-offs increased $107.6 million (25.9 percent) year over year and $89.1 million 

(20.6 percent) from the previous quarter. The net charge-off rate for total loans remained 

relatively stable year over year and quarter over quarter. The increase in the net charge-off 

rate for C&I loans was the highest among major loan categories, up 8 basis points year over 

year and 7 basis points quarter over quarter to 0.34 percent.

Shift in Deposit Mix and 

Declining Rates Push 

Funding Costs Downward

Total deposits increased 11.4 percent to $2 trillion since first quarter 2020 and 16.5 percent 

since the same period one year ago. Most of this growth was in noninterest-bearing 

deposits, supporting a lower-cost deposit mix and a decline in domestic deposit expense 

of 26.3 percent year over year. Domestic interest-bearing deposits increased $88.1 billion 

(6.2 percent), while domestic noninterest-bearing deposits increased $118.6 billion 

(30.4 percent) from the previous quarter. The percentage of time deposits to total assets 

declined 3.4 percentage points to 19.5 percent compared with the same period last year—

further supporting a reduction in funding costs.

Community Bank 

Leverage Ratio 

Remains Strong

Equity capital grew $8.8 billion (3.4 percent) during the quarter. However, the leverage capital ratio declined 64 basis points to 10.49 percent as growth in average assets 

outpaced tier 1 capital formation. Total assets at community banks grew $342.6 billion (up 

16.2 percent) year over year, driven by growth in total loans and leases, cash and due from 

balances (up $99.4 billion, or 73.6 percent), and securities (up $26.7 billion, or 7.2 percent). 

The tier 1 risk-based capital ratio for noncommunity bank leverage ratio (CBLR) filers 

was 14.31 percent, up 13 basis points from the previous quarter. The average CBLR for the 

1,803 banks that made this election was 11.44 percent, well above the minimum requirement of 8 percent, which was reduced from 9 percent as a temporary relief measure under 

Section 4012 of the CARES Act.2

One New Community 

Bank Opens in Second 

Quarter 2020

The number of community banks declined to 4,624, down 57 from the previous quarter. Quarterly changes include one new community bank, five banks transitioning from 

noncommunity to community banks, 17 banks transitioning from community to noncommunity banks, 40 community bank mergers or consolidations, five community bank selfliquidations, and one community bank failure.

Author:

Erica Jill Tholmer

Senior Financial Analyst

Division of Insurance and Research

2 Section 4012 of the CARES Act temporarily reduces the CBLR for qualifying community banks that adopt the CBLR from 

9 percent to 8 percent and provides a reasonable grace period if a community bank’s CBLR falls below the prescribed 

level. The interim rule expires at the earlier of December 31, 2020, or the date on which the national emergency 

declaration related to COVID-19 is terminated.
2020   •   Volume 14  • Number 3

18 FDIC QUARTERLY

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

2020* 2019* 2019 2018 2017 2016 2015

Return on assets (%) 1.00 1.20 1.20 1.19 0.96 0.99 0.99

Return on equity (%) 8.78 10.41 10.25 10.58 8.65 8.81 8.85

Core capital (leverage) ratio (%) 10.49 11.14 11.15 11.09 10.80 10.69 10.67

Noncurrent assets plus other real estate owned to assets (%) 0.65 0.67 0.65 0.70 0.78 0.94 1.07

Net charge-offs to loans (%) 0.12 0.10 0.13 0.13 0.16 0.16 0.15

Asset growth rate (%) 8.49 1.58 -1.17 2.22 1.17 2.97 2.74

Net interest margin (%) 3.50 3.67 3.66 3.72 3.62 3.57 3.57

Net operating income growth (%) -13.64 2.65 -4.00 28.01 0.21 2.42 9.57

Number of institutions reporting 4,624 4,873 4,750 4,980 5,228 5,462 5,736

Percentage of unprofitable institutions (%) 5.02 3.88 3.98 3.63 5.72 4.67 5.04

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

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

(dollar figures in millions)  2nd Quarter

2020

1st Quarter

2020

2nd Quarter

2019

%Change 

19Q2-20Q2

Number of institutions reporting 4,624 4,681 4,873 -5.1

Total employees (full-time equivalent) 391,440 395,453 407,787 -4.0

CONDITION DATA

Total assets $2,457,914 $2,252,303 $2,265,552 8.5

Loans secured by real estate 1,202,421 1,209,970 1,238,439 -2.9

1-4 Family residential mortgages 389,793 391,144 399,721 -2.5

Nonfarm nonresidential 476,796 479,566 478,868 -0.4

 Construction and development 114,533 114,138 113,706 0.7

Home equity lines 43,615 45,767 47,281 -7.8

Commercial & industrial loans 348,753 216,685 222,005 57.1

Loans to individuals 62,828 65,304 65,107 -3.5

 Credit cards 1,847 1,990 2,025 -8.8

Farm loans 52,425 50,582 53,417 -1.9

Other loans & leases 38,633 38,957 43,012 -10.2

Less: Unearned income 1,370 538 639 114.4

Total loans & leases 1,703,690 1,580,960 1,621,342 5.1

Less: Reserve for losses* 20,789 19,242 18,286 13.7

Net loans and leases 1,682,902 1,561,718 1,603,056 5.0

Securities** 396,592 382,664 388,830 2.0

Other real estate owned 2,237 2,385 2,838 -21.2

Goodwill and other intangibles 18,072 17,691 17,000 6.3

All other assets 358,111 287,845 253,828 41.1

Total liabilities and capital 2,457,914 2,252,303 2,265,552 8.5

Deposits 2,024,466 1,842,769 1,858,019 9.0

 Domestic office deposits 2,022,079 1,840,678 1,855,748 9.0

Foreign office deposits 2,387 2,092 2,271 5.1

 Brokered deposits 64,643 62,035 75,372 -14.2

Estimated insured deposits 1,446,134 1,340,216 1,350,527 7.1

Other borrowed funds 139,792 124,478 123,249 13.4

Subordinated debt 237 338 631 -62.4

All other liabilities 25,221 22,542 18,839 33.9

Total equity capital (includes minority interests) 268,197 262,175 264,815 1.3

 Bank equity capital 268,092 262,084 264,739 1.3

Loans and leases 30-89 days past due 7,116 11,494 8,027 -11.4

Noncurrent loans and leases 13,685 12,852 12,344 10.9

Restructured loans and leases 5,495 5,217 5,969 -7.9

Mortgage-backed securities 186,383 185,071 179,279 4.0

Earning assets 2,297,723 2,095,338 2,113,210 8.7

FHLB Advances 89,626 100,081 100,695 -11.0

Unused loan commitments 326,164 316,478 315,929 3.2

Trust assets 281,119 241,405 276,541 1.7

Assets securitized and sold 18,545 17,786 12,908 43.7

Notional amount of derivatives 171,684 149,235 99,347 72.8

INCOME DATA

First Half

 2020

First Half

 2019 %Change

2nd Quarter 

2020

2nd Quarter 

2019

%Change 

19Q2-20 Q2

Total interest income $44,941 $48,000 -6.4 $22,576 $24,393 -7.4

Total interest expense 7,742 9,814 -21.1 3,447 5,112 -32.6

Net interest income 37,199 38,186 -2.6 19,129 19,281 -0.8

Provision for credit losses*** 4,221 1,332 216.9 2,411 681 254.2

Total noninterest income 10,729 8,938 20.0 6,042 4,733 27.7

Total noninterest expense 30,461 30,172 1.0 15,359 15,345 0.1

Securities gains (losses) 343 407 -15.8 529 233 126.7

Applicable income taxes 2,128 2,769 -23.2 1,292 1,441 -10.4

Extraordinary gains, net**** 1 115 N/M 0 117 N/M

Total net income (includes minority interests) 11,462 13,373 -14.3 6,638 6,897 -3.8

 Bank net income 11,444 13,369 -14.4 6,626 6,893 -3.9

Net charge-offs 956 787 21.5 522 432 20.9

Cash dividends 5,658 6,669 -15.2 2,464 3,417 -27.9

Retained earnings 5,786 6,700 -13.6 4,162 3,477 19.7

Net operating income 11,154 12,917 -13.6 6,198 6,579 -5.8

* For institutions that have adopted ASU 2016-13, this item represents the allowance for credit losses on loans and leases held for investment and allocated transfer risk.

** For institutions that have adopted ASU 2016-13, securities are reported net of allowances for credit losses.

*** For institutions that have adopted ASU 2016-13, this item represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, 

this item represents the provision for loan and lease losses.

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

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  2nd Quarter 

2020

1st Quarter 

2020

2nd Quarter

2019

%Change 

19Q2-20 Q2

Number of institutions reporting 4,624 4,623 4,614 0.2

Total employees (full-time equivalent) 391,440 392,492 390,970 0.1

CONDITION DATA

Total assets $2,457,914 $2,221,936 $2,115,291 16.2

Loans secured by real estate 1,202,421 1,192,113 1,146,377 4.9

1-4 Family residential mortgages 389,793 387,335 379,426 2.7

Nonfarm nonresidential 476,796 470,912 445,159 7.1

 Construction and development 114,533 112,664 106,577 7.5

Home equity lines 43,615 45,239 45,083 -3.3

Commercial & industrial loans 348,753 214,542 205,692 69.6

Loans to individuals 62,828 63,328 62,234 1.0

 Credit cards 1,847 1,946 1,964 -5.9

Farm loans 52,425 50,351 52,740 -0.6

Other loans & leases 38,633 36,138 34,470 12.1

Less: Unearned income 1,370 530 546 150.9

Total loans & leases 1,703,690 1,555,942 1,500,967 13.5

Less: Reserve for losses* 20,789 18,952 17,269 20.4

Net loans and leases 1,682,902 1,536,990 1,483,698 13.4

Securities** 396,592 380,283 369,865 7.2

Other real estate owned 2,237 2,364 2,782 -19.6

Goodwill and other intangibles 18,072 17,920 16,665 8.4

All other assets 358,111 284,379 242,281 47.8

Total liabilities and capital 2,457,914 2,221,936 2,115,291 16.2

Deposits 2,024,466 1,817,509 1,737,187 16.5

 Domestic office deposits 2,022,079 1,815,417 1,734,916 16.6

Foreign office deposits 2,387 2,092 2,271 5.1

 Brokered deposits 64,643 62,125 68,539 -5.7

Estimated insured deposits 1,446,134 1,326,777 1,284,222 12.6

Other borrowed funds 139,792 122,406 110,889 26.1

Subordinated debt 237 229 263 -9.9

All other liabilities 25,221 22,358 17,442 44.6

Total equity capital (includes minority interests) 268,197 259,433 249,510 7.5

 Bank equity capital 268,092 259,337 249,434 7.5

Loans and leases 30-89 days past due 7,116 11,344 7,779 -8.5

Noncurrent loans and leases 13,685 12,858 11,884 15.2

Restructured loans and leases 5,495 5,168 5,752 -4.5

Mortgage-backed securities 186,383 183,762 167,047 11.6

Earning assets 2,297,723 2,066,385 1,970,283 16.6

FHLB Advances 89,626 98,663 89,992 -0.4

Unused loan commitments 326,164 311,676 295,735 10.3

Trust assets 281,119 234,961 263,631 6.6

Assets securitized and sold 18,545 17,784 16,671 11.2

Notional amount of derivatives 171,684 148,622 91,349 87.9

INCOME DATA

First Half

 2020

First Half

 2019 %Change

2nd Quarter 

2020

2nd Quarter 

2019

%Change 

19Q2-20 Q2

Total interest income $44,941 $44,743 0.4 $22,576 $22,774 -0.9

Total interest expense 7,742 8,968 -13.7 3,447 4,680 -26.3

Net interest income 37,199 35,775 4.0 19,129 18,094 5.7

Provision for credit losses*** 4,221 1,277 230.5 2,411 646 273.2

Total noninterest income 10,729 8,650 24.0 6,042 4,539 33.1

Total noninterest expense 30,461 28,690 6.2 15,359 14,597 5.2

Securities gains (losses) 343 412 N/M 529 229 N/M

Applicable income taxes 2,128 2,502 -15.0 1,292 1,308 -1.2

Extraordinary gains, net**** 1 115 N/M 0 117 N/M

Total net income (includes minority interests) 11,462 12,482 -8.2 6,638 6,429 3.2

 Bank net income 11,444 12,473 -8.2 6,626 6,423 3.2

Net charge-offs 956 766 24.8 522 420 24.4

Cash dividends 5,658 6,333 -10.7 2,464 3,285 -25.0

Retained earnings 5,786 6,140 -5.8 4,162 3,138 32.6

Net operating income 11,154 12,019 -7.2 6,198 6,112 1.4

* For institutions that have adopted ASU 2016-13, this item represents the allowance for credit losses on loans and leases held for investment and allocated transfer risk.

** For institutions that have adopted ASU 2016-13, securities are reported net of allowances for credit losses.

*** For institutions that have adopted ASU 2016-13, this item represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, 

this item represents the provision for loan and lease losses.

**** See Notes to Users for explanation. N/M - Not Meaningful
2020   •   Volume 14  • Number 3

20 FDIC QUARTERLY

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

Second Quarter 2020

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 4,624 516 523 1,011 1,253 1,036 285

Total employees (full-time equivalent) 391,440 78,624 43,321 80,823 70,604 84,654 33,414

CONDITION DATA

Total assets $2,457,914 $615,180 $257,616 $442,602 $423,897 $465,372 $253,246

Loans secured by real estate 1,202,421 351,930 126,351 210,331 186,276 210,158 117,376

1-4 Family residential mortgages 389,793 135,278 38,420 67,302 54,776 66,904 27,112

Nonfarm nonresidential 476,796 129,181 57,341 81,223 64,071 86,912 58,068

 Construction and development 114,533 26,049 14,244 17,359 16,754 29,920 10,207

Home equity lines 43,615 13,523 5,911 8,967 4,892 4,627 5,694

Commercial & industrial loans 348,753 77,701 37,451 64,987 62,521 64,543 41,550

Loans to individuals 62,828 15,307 5,785 12,287 11,248 12,165 6,036

 Credit cards 1,847 367 98 210 539 226 406

Farm loans 52,425 643 1,377 8,367 29,816 9,204 3,018

Other loans & leases 38,633 8,932 3,479 7,004 7,430 6,930 4,858

Less: Unearned income 1,370 247 240 136 162 305 281

Total loans & leases 1,703,690 454,266 174,204 302,840 297,129 302,695 172,556

Less: Reserve for losses** 20,789 5,064 2,045 3,589 3,933 3,817 2,339

Net loans and leases 1,682,902 449,202 172,159 299,251 293,196 298,878 170,217

Securities*** 396,592 83,720 42,252 76,444 68,137 86,664 39,374

Other real estate owned 2,237 364 408 425 415 520 106

Goodwill and other intangibles 18,072 5,091 1,286 3,360 2,952 3,008 2,375

All other assets 358,111 76,803 41,512 63,122 59,198 76,302 41,173

Total liabilities and capital 2,457,914 615,180 257,616 442,602 423,897 465,372 253,246

Deposits 2,024,466 494,252 214,221 363,835 351,828 392,009 208,321

 Domestic office deposits 2,022,079 493,644 214,209 363,671 351,828 392,009 206,718

Foreign office deposits 2,387 608 13 164 0 0 1,603

 Brokered deposits 64,643 20,568 4,636 9,962 14,926 9,905 4,645

 Estimated insured deposits 1,446,134 354,469 150,582 275,858 266,418 272,409 126,398

Other borrowed funds 139,792 45,121 13,696 25,839 22,125 18,311 14,699

Subordinated debt 237 130 12 31 11 42 11

All other liabilities 25,221 8,439 2,230 4,200 3,673 3,814 2,864

Total equity capital (includes minority interests) 268,197 67,239 27,456 48,696 46,260 51,196 27,350

 Bank equity capital 268,092 67,212 27,457 48,641 46,255 51,178 27,349

Loans and leases 30-89 days past due 7,116 1,671 676 1,180 1,501 1,566 522

Noncurrent loans and leases 13,685 3,656 1,272 2,558 2,400 2,883 916

Restructured loans and leases 5,495 1,756 478 1,307 892 719 344

Mortgage-backed securities 186,383 47,326 20,233 32,450 26,717 35,838 23,819

Earning assets 2,297,723 575,966 239,954 413,734 396,965 433,971 237,132

FHLB Advances 89,626 32,527 8,266 17,009 14,597 10,523 6,704

Unused loan commitments 326,164 85,179 28,592 59,029 60,662 54,179 38,523

Trust assets 281,119 59,525 9,388 61,099 92,610 38,962 19,535

Assets securitized and sold 18,545 7,688 106 5,207 4,165 1,185 194

Notional amount of derivatives 171,684 57,059 22,874 28,957 31,094 19,141 12,560

INCOME DATA

Total interest income $22,576 $5,302 $2,347 $3,969 $4,215 $4,539 $2,203

Total interest expense 3,447 999 331 607 635 627 248

Net interest income 19,129 4,303 2,016 3,362 3,580 3,912 1,955

Provision for credit losses  2,411 605 301 352 372 482 300

Total noninterest income 6,042 1,076 584 1,562 1,209 1,136 475

Total noninterest expense 15,359 3,538 1,664 2,899 2,714 3,073 1,471

Securities gains (losses) 529 272 41 56 44 81 36

Applicable income taxes 1,292 330 121 295 218 191 137

Extraordinary gains, net** *** 0 0 0 0 0 0 0

Total net income (includes minority interests) 6,638 1,178 555 1,433 1,530 1,383 558

 Bank net income 6,626 1,177 550 1,430 1,529 1,381 558

Net charge-offs 522 89 27 85 107 142 73

Cash dividends 2,464 385 190 679 534 450 226

Retained earnings 4,162 792 360 751 995 931 332

Net operating income 6,198 964 520 1,384 1,491 1,312 528

* See Table V-A for explanation.

** For institutions that have adopted ASU 2016-13, this item represents the allowance for credit losses on loans and leases held for investment and allocated transfer risk.

*** For institutions that have adopted ASU 2016-13, securities are reported net of allowances for credit losses.

  For institutions that have adopted ASU 2016-13, this item represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, 

this item represents the provision for loan and lease losses.

** *** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Second Quarter 2020, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Second Quarter 2020, Geographic Regions*

 2nd Quarter 

2020

1st Quarter 

2020 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.14 4.39 3.85 4.16 4.05 4.47 4.41 4.00

Cost of funding earning assets 0.63 0.85 0.72 0.59 0.62 0.67 0.61 0.45

Net interest margin 3.51 3.55 3.12 3.57 3.43 3.80 3.80 3.55

Noninterest income to assets 1.03 0.83 0.73 0.96 1.49 1.20 1.03 0.80

Noninterest expense to assets 2.63 2.75 2.40 2.74 2.76 2.69 2.78 2.49

Loan and lease loss provision to assets 0.41 0.33 0.41 0.49 0.34 0.37 0.44 0.51

Net operating income to assets 1.06 0.89 0.65 0.85 1.32 1.48 1.19 0.89

Pretax return on assets 1.36 1.02 1.02 1.10 1.64 1.73 1.42 1.18

Return on assets 1.13 0.87 0.80 0.91 1.36 1.52 1.25 0.94

Return on equity 10.06 7.43 7.10 8.15 11.98 13.51 11.04 8.27

Net charge-offs to loans and leases 0.13 0.12 0.08 0.07 0.12 0.15 0.20 0.18

Loan and lease loss provision to net charge-offs 461.54 397.40 681.30 1109.31 414.99 348.62 339.94 409.16

Efficiency ratio 60.33 66.12 64.26 63.06 58.44 56.17 60.61 60.22

Net interest income to operating revenue 76.00 79.88 79.99 77.55 68.28 74.76 77.50 80.44

% of unprofitable institutions 4.97 6.86 8.53 7.65 4.65 2.39 4.54 7.72

% of institutions with earnings gains 53.96 45.08 44.19 45.12 57.07 63.53 49.32 51.58

Table V-B. First Half 2020, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks First Half 2020, Geographic Regions*

First Half

 2020

First Half

 2019 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.23 4.62 3.99 4.25 4.14 4.47 4.47 4.14

Cost of funding earning assets 0.73 0.94 0.84 0.68 0.70 0.77 0.70 0.53

Net interest margin 3.50 3.67 3.15 3.57 3.44 3.70 3.77 3.61

Noninterest income to assets 0.94 0.80 0.69 0.88 1.31 1.09 0.95 0.73

Noninterest expense to assets 2.67 2.71 2.44 2.80 2.80 2.72 2.82 2.54

Loan and lease loss provision to assets 0.37 0.12 0.42 0.39 0.29 0.33 0.35 0.47

Net operating income to assets 0.98 1.16 0.61 0.82 1.17 1.32 1.12 0.87

Pretax return on assets 1.19 1.45 0.73 1.06 1.46 1.55 1.33 1.13

Return on assets 1.00 1.20 0.58 0.87 1.22 1.35 1.18 0.91

Return on equity 8.78 10.41 5.07 7.69 10.59 11.91 10.28 7.77

Net charge-offs to loans and leases 0.12 0.10 0.09 0.08 0.10 0.14 0.18 0.15

Loan and lease loss provision to net charge-offs 441.64 169.28 638.37 764.42 409.68 338.68 305.13 451.34

Efficiency ratio 62.99 63.66 66.38 65.97 61.64 59.26 63.18 61.71

Net interest income to operating revenue 77.61 81.03 81.10 79.09 71.06 75.95 78.68 82.23

% of unprofitable institutions 5.02 3.88 11.05 7.65 4.85 1.84 4.05 7.37

% of institutions with earnings gains 51.64 62.36 33.91 45.32 57.67 61.53 48.36 42.46

* See Table V-A for explanation.
2020   •   Volume 14  • Number 3

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

June 30, 2020

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 0.41 0.36 0.40 0.42 0.50 0.49 0.28

Construction and development 0.43 0.28 0.36 0.41 0.57 0.44 0.62

Nonfarm nonresidential 0.30 0.34 0.21 0.30 0.34 0.31 0.20

Multifamily residential real estate 0.18 0.19 0.19 0.16 0.29 0.23 0.06

Home equity loans 0.38 0.44 0.31 0.39 0.29 0.49 0.25

Other 1-4 family residential 0.57 0.45 0.73 0.60 0.62 0.74 0.39

Commercial and industrial loans 0.28 0.23 0.28 0.22 0.33 0.35 0.26

Loans to individuals 1.01 1.25 0.89 0.52 0.73 1.69 0.65

Credit card loans 1.32 1.64 1.13 0.59 2.00 0.79 0.83

Other loans to individuals 1.00 1.24 0.88 0.52 0.66 1.71 0.64

All other loans and leases (including farm) 0.61 0.28 0.36 0.58 0.75 0.62 0.58

Total loans and leases 0.42 0.37 0.39 0.39 0.50 0.52 0.30

Percent of Loans Noncurrent

All loans secured by real estate 0.85 0.88 0.80 0.93 0.83 0.98 0.50

Construction and development 0.67 0.74 0.58 0.74 0.70 0.54 0.84

Nonfarm nonresidential 0.74 0.83 0.68 0.89 0.67 0.79 0.35

Multifamily residential real estate 0.28 0.24 0.38 0.47 0.22 0.25 0.20

Home equity loans 0.59 0.68 0.50 0.53 0.37 0.50 0.80

Other 1-4 family residential 1.03 1.17 1.04 1.01 0.62 1.28 0.51

Commercial and industrial loans 0.63 0.61 0.51 0.68 0.57 0.81 0.53

Loans to individuals 0.52 0.42 0.59 0.31 0.34 1.03 0.45

Credit card loans 1.01 1.54 0.72 0.56 1.17 0.79 0.73

Other loans to individuals 0.50 0.39 0.59 0.30 0.30 1.04 0.43

All other loans and leases (including farm) 1.01 0.37 0.69 0.88 1.23 1.13 0.99

Total loans and leases 0.80 0.80 0.73 0.84 0.81 0.95 0.53

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.03 0.04 0.00 0.05 0.05 0.04 0.01

Construction and development 0.03 0.03 -0.01 0.03 0.02 0.02 0.10

Nonfarm nonresidential 0.05 0.06 -0.01 0.08 0.10 0.06 0.01

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

Home equity loans 0.02 0.03 0.01 0.01 0.01 0.07 -0.02

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

Commercial and industrial loans 0.29 0.18 0.26 0.25 0.20 0.50 0.44

Loans to individuals 0.91 0.90 0.83 0.35 1.18 1.06 1.31

Credit card loans 6.30 4.76 1.52 2.06 14.54 1.64 2.64

Other loans to individuals 0.74 0.80 0.82 0.32 0.46 1.04 1.22

All other loans and leases (including farm) 0.19 0.15 0.26 0.22 0.16 0.25 0.22

Total loans and leases 0.12 0.09 0.08 0.10 0.14 0.18 0.15

Loans Outstanding (in billions)

All loans secured by real estate $1,202.4 $351.9 $126.4 $210.3 $186.3 $210.2 $117.4

Construction and development 114.5 26.0 14.2 17.4 16.8 29.9 10.2

Nonfarm nonresidential 476.8 129.2 57.3 81.2 64.1 86.9 58.1

Multifamily residential real estate 101.1 45.6 6.1 17.9 11.5 7.8 12.2

Home equity loans 43.6 13.5 5.9 9.0 4.9 4.6 5.7

Other 1-4 family residential 389.8 135.3 38.4 67.3 54.8 66.9 27.1

Commercial and industrial loans 348.8 77.7 37.5 65.0 62.5 64.5 41.5

Loans to individuals 62.8 15.3 5.8 12.3 11.2 12.2 6.0

Credit card loans 1.8 0.4 0.1 0.2 0.5 0.2 0.4

Other loans to individuals 61.0 14.9 5.7 12.1 10.7 11.9 5.6

All other loans and leases (including farm) 91.1 9.6 4.9 15.4 37.2 16.1 7.9

Total loans and leases 1,705.1 454.5 174.4 303.0 297.3 303.0 172.8

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 326,164 85,179 28,592 59,029 60,662 54,179 38,523

Construction and development: 1-4 family residential 24,459 4,583 3,498 2,878 3,679 7,196 2,626

Construction and development: CRE and other 63,117 19,166 6,298 9,792 8,873 12,488 6,501

Commercial and industrial 111,855 28,379 8,287 23,693 20,392 18,144 12,961

* See Table V-A for explanation.

Note: 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

Insured Deposits Grow at Fastest Pace on Record

DIF Reserve Ratio Falls 9 Basis Points, Ends Second Quarter at 1.30 Percent

Rule Adopted to Mitigate Impact on Assessments for Institutions That Participate in Paycheck Protection Program

One Institution Fails During the Second Quarter

During the second quarter, the Deposit Insurance Fund (DIF) balance increased by 

$1.4 billion to $114.7 billion. Assessment income of $1.8 billion, interest earned on investments of $454 million, and a negative provision for insurance losses of $47 million were the 

largest contributors to the increase, offset partially by operating expenses of $465 million 

and unrealized losses on available-for-sale securities of $383 million. One institution with 

assets of $152 million failed during the second quarter of 2020 with an estimated cost to the 

DIF of $47 million.

The deposit insurance assessment base—average consolidated total assets minus average 

tangible equity—increased by 10.1 percent in the second quarter and by 15.7 percent over 

12 months.1

Total estimated insured deposits increased by 8.2 percent ($673.1 billion) in the quarter and 

by 14.9 percent year over year.2 Excluding the quarters when deposit insurance coverage 

limits were increased in 20093 and 2010,4 this was the largest one-quarter increase in estimated insured deposits since quarterly reporting was adopted in 1991. Ninety-four percent 

of institutions reporting as of June 30, 2020, and March 31, 2020, increased insured deposits. This was the largest share of institutions reporting insured deposit increases on record; 

fourth quarter 1998 had the second largest share with 88 percent of institutions reporting 

increased insured deposits.5

The extraordinary growth in insured deposits more than offset the quarterly increase in 

the DIF. Solely as a result of the extraordinary insured deposit growth, the DIF reserve ratio 

dropped 9 basis points to 1.30 percent at June 30, 2020. This was the largest quarterly decline 

for the DIF reserve ratio since the fourth quarter of 2009. Since the DIF reserve ratio fell 

below the statutory minimum of 1.35 percent at June 30, 2020, the FDIC is required to establish and implement a restoration plan to restore the reserve ratio to the minimum level 

within eight years beginning upon the implementation of the plan (or such longer period as 

the Corporation may determine to be necessary due to extraordinary circumstances).6

In June 2020 the Federal Deposit Insurance Corporation adopted a final rule that mitigates the 

deposit insurance assessment effects of participating in the Paycheck Protection Program 

(PPP) established by the Small Business Administration (SBA), and the Paycheck Protection Program Liquidity Facility (PPPLF) and Money Market Mutual Fund Liquidity Facility 

(MMLF) established by the Board of Governors of the Federal Reserve System.7 The final rule 

removes the effect of participation in the PPP and borrowings under the PPPLF on various 

risk measures used to calculate an insured depository institution’s assessment rate; removes 

the effect of participation in the PPP and MMLF program on certain adjustments to an 

insured depository institution’s assessment rate; provides an offset to an insured depository 

institution’s assessment for the increase to its assessment base attributable to participation 

in the PPP and MMLF; and removes the effect of participation in the PPP and MMLF when 

classifying insured depository institutions as small, large, or highly complex for assessment 

purposes. The final rule is effective June 26, 2020, and will apply as of April 1, 2020.

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 Beginning September 30, 2009, the Helping Families Save Their Homes Act of 2009 increased the permanent deposit 

insurance coverage limit for deposits other than retirement accounts from $100,000 to $250,000.

4 The Dodd-Frank Wall Street Reform and Consumer Protection Act temporarily provided unlimited deposit insurance 

coverage for noninterest-bearing transaction accounts from December 31, 2010, through December 31, 2012.

5 Excluding the third quarter of 2009 when the permanent deposit insurance coverage limit increased to $250,000.

6 12 U.S.C. 1817(b)(3)(E) https://www.fdic.gov/regulations/laws/rules/1000-800.html.

7 https://www.fdic.gov/news/board/2020/2020-06-22-notational-fr.pdf.
2020   •   Volume 14  • Number 3

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.33 1.36 1.36 1.36 1.40 1.41 1.39

1.24 1.27 1.30 1.30

1.41

1.30

6/17 9/17 12/17 3/18 6/18 9/18 12/18 3/19 6/19 9/19 12/19 3/20 6/20

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

2nd 

Quarter 

2020

1st 

Quarter 

2020

4th 

Quarter 

2019

3rd 

Quarter 

2019

2nd 

Quarter 

2019

1st 

Quarter 

2019

4th 

Quarter 

2018

3rd 

Quarter 

2018

2nd 

Quarter 

2018

1st 

Quarter 

2018

4th 

Quarter 

2017

3rd 

Quarter 

2017

2nd 

Quarter 

2017

Beginning Fund Balance $113,206 $110,347 $108,940 $107,446 $104,870 $102,609 $100,204 $97,588 $95,072 $92,747 $90,506 $87,588 $84,928

Changes in Fund Balance:

Assessments earned 1,790 1,372 1,272 1,111 1,187 1,369 1,351 2,728 2,598 2,850 2,656 2,568 2,634

Interest earned on 

investment securities 454 507 531 544 535 507 481 433 381 338 305 274 251

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 465 460 460 443 459 434 453 434 445 433 443 404 450

Provision for insurance 

losses -47 12 -88 -192 -610 -396 -236 -121 -141 -65 -203 -512 -233

All other income, 

net of expenses 2 2 21 4 9 2 2 2 3 1 3 1 4

Unrealized gain/(loss) on 

available-for-sale 

securities** -383 1,450 -45 86 694 421 788 -234 -162 -496 -481 -33 -12

Total fund balance change 1,445 2,859 1,407 1,494 2,576 2,261 2,405 2,616 2,516 2,325 2,242 2,918 2,660

Ending Fund Balance 114,651 113,206 110,347 108,940 107,446 104,870 102,609 100,204 97,588 95,072 92,747 90,506 87,588

Percent change from 

 four quarters earlier 6.71 7.95 7.54 8.72 10.10 10.31 10.63 10.72 11.42 11.95 11.53 12.14 12.42

Reserve Ratio (%) 1.30 1.39 1.41 1.41 1.40 1.36 1.36 1.36 1.33 1.30 1.30 1.27 1.24

Estimated Insured 

Deposits 8,837,335 8,164,237 7,815,172 7,735,964 7,689,094 7,694,319 7,522,518 7,375,962 7,354,111 7,333,318 7,154,403 7,099,459 7,047,638

Percent change from 

 four quarters earlier 14.93 6.11 3.89 4.88 4.56 4.92 5.15 3.89 4.35 3.59 3.45 4.16 5.62

Domestic Deposits 15,562,013 14,350,253 13,262,206 13,020,253 12,788,773 12,725,363 12,659,405 12,367,954 12,280,904 12,305,817 12,129,503 11,966,478 11,827,933

Percent change from 

 four quarters earlier 21.68 12.77 4.76 5.27 4.14 3.41 4.37 3.36 3.83 3.79 3.73 3.99 5.20

Assessment Base*** 18,152,447 16,483,865 16,156,662 15,904,511 15,684,025 15,561,869 15,452,229 15,229,530 15,113,666 15,068,512 15,001,411 14,834,140 14,702,880

Percent change from 

 four quarters earlier 15.74 5.92 4.56 4.43 3.77 3.27 3.01 2.67 2.79 3.06 3.01 3.14 3.60

Number of Institutions 

Reporting 5,075 5,125 5,186 5,267 5,312 5,371 5,415 5,486 5,551 5,615 5,679 5,747 5,796

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

6/17 $87,588 $7,047,638

9/17 90,506 7,099,459

12/17 92,747 7,154,403

3/18 95,072 7,333,318

6/18 97,588 7,354,111

9/18 100,204 7,375,962

12/18 102,609 7,522,518

3/19 104,870 7,694,319

6/19 107,446 7,689,094

9/19 108,940 7,735,964

12/19 110,347 7,815,172

3/20 113,206 8,164,237

6/20 114,651 8,837,335

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2020  2019** ** 2019 2018 2017 2016 2015 2014

Problem Institutions

Number of institutions 52 56 51 60 95 123 183 291

Total assets $48,127 $48,505 $46,190 $48,489 $13,939 $27,624 $46,780 $86,712

Failed Institutions

Number of institutions 2 1 4 0 8 5 8 18

Total assets***** $253 $37 $209 $0 $5,082 $277 $6,706 $2,914

* Quarterly financial statement results are unaudited.

** Includes unrealized postretirement benefit gain (loss).

*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

  Through June 30.

** *** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

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

(dollar figures in millions)

June 30, 2020

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 4,430 $19,840,796 $14,464,051 $7,953,515

FDIC-Supervised 2,949 3,342,933 2,693,966 1,732,232

OCC-Supervised 779 13,486,591 9,591,964 5,128,394

Federal Reserve-Supervised 702 3,011,272 2,178,121 1,092,890

FDIC-Insured Savings Institutions 636 1,297,223 1,054,168 847,926

OCC-Supervised 285 570,090 447,455 372,426

FDIC-Supervised 315 380,179 291,342 227,243

Federal Reserve-Supervised 36 346,954 315,371 248,257

Total Commercial Banks and Savings Institutions 5,066 21,138,019 15,518,218 8,801,441

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 96,331 43,795 35,894

Total FDIC-Insured Institutions 5,075 21,234,350 15,562,013 8,837,335

* Excludes $1.4 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending March 31, 2020 (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 3,218 62.79 $7,068.1 42.88

3.01 - 6.00 1,356 26.46 8,144.0 49.41

6.01 - 10.00 429 8.37 1,104.1 6.70

10.01 - 15.00 56 1.09 143.6 0.87

15.01 - 20.00 59 1.15 18.4 0.11

20.01 - 25.00 3 0.06 5.2 0.03

> 25.00 4 0.08 0.4 0.00

* 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.
2020   •   Volume 14  • Number 3

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured Call 

Report filers, both commercial banks and savings institutions. Some 

tables are arrayed by groups of FDIC-insured institutions based 

on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://www.fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered 

community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into a 

single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under 

that organization is also considered a community bank when 

working with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step 

involves including organizations that engage in basic banking 

activities as measured by the total loans-to-assets ratio (greater 

than 33 percent) and the ratio of core deposits to assets (greater 

than 50 percent). Core deposits are defined as non-brokered deposits in domestic offices. Analysis of the underlying data shows that 

these thresholds establish meaningful levels of basic lending and 

deposit gathering and still allow for a degree of diversity in how 

individual banks construct their balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more 

than one office, and the maximum number of offices is 40 in 1985 

and reached 87 in 2016. The maximum level of deposits for any 

one office is $1.25 billion in deposits in 1985 and reached $6.97 

billion in deposits in 2016. The remaining geographic limitations 

are also based on maximums for the number of states (fixed at 3) 

and large metropolitan areas (fixed at 2) in which the organization 

maintains offices. Branch office data are based on the most recent 

data from the annual June 30 Summary of Deposits Survey that are 

available at the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities and geographic scope are waived. The asset-size limit is $250 

million in 1985 and reached $1.39 billion in 2016. This final step 

acknowledges the fact that most of those small banks that are not 

excluded as specialty banks meet the requirements for banking 

activities and geographic limits in any event.

Summary of FDIC Research Definition of 

Community Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

•	 credit card specialists

•	 consumer nonbank banks1

•	 industrial loan companies

•	 trust companies

•	 bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 2

— Total assets ≥ indexed size threshold, where:

•	 Loan to assets > 33%

•	 Core deposits to assets > 50%

•	 More than 1 office but no more than the indexed maxim

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 

double-counting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made 

to the OTS Thrift Financial Reports to provide closer conformance 

with the reporting and accounting requirements of the FFIEC Call 

Reports. (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 endof-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/financial-institution-letters//2020/

fil20069.html

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 
2020   •   Volume 14  • Number 3

28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for large institutions 

that are not well capitalized or do not have a composite CAMELS 

rating of 1 or 2 may increase (not to exceed 10 basis points) if their 

brokered deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that are not the 

minimum or maximum rate will vary between these rates. Total base assessment rates do not 

include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary assessment 

surcharges in order to raise the reserve ratio from 1.15 percent to 1.35  percent. The 

surcharges amount to 4.5 basis points of a large institution’s assessment base (after making 

certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination transmittal date.

Assets securitized and sold – total outstanding principal balance of assets securitized and sold with servicing retained or other 

seller-provided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated 

as Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock 

or noncumulative preferred stock of not-publicly-traded bank 

stock 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. Beginning 

March 2020, this ratio does not include institutions that have a 

Community Bank Leverage Ratio election in effect at the report 

date.

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 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

specified period. The cash flows of a swap are either fixed, or 

determined for each settlement date by multiplying the quantity 

(notional principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the 

notional principal is used to calculate each payment but is not 

exchanged.

Derivatives underlying risk exposure – the potential exposure 

characterized by the level of banks’ concentration in particular 

underlying instruments, in general. Exposure can result from 

market risk, credit risk, and operational risk, as well as, interest 

rate risk.

Domestic deposits to total assets – total domestic office deposits 

as a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest 

or dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest 

income. This ratio measures the proportion of net operating revenues that are absorbed by overhead expenses, so that a lower value 

indicates greater efficiency.

Estimated insured deposits – in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Beginning March 31, 2008, for institutions that file Call Reports, 

insured deposits are total assessable deposits minus estimated 

uninsured deposits. Beginning September 30, 2009, insured 

deposits include deposits in accounts of $100,000 to $250,000 

that are covered by a temporary increase in the FDIC’s standard 

maximum deposit insurance amount (SMDIA). 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 noninterestbearing 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, availablefor-sale 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.
2020   •   Volume 14  • Number 3

30 FDIC QUARTERLY

“Problem” institutions – federal regulators assign a composite 

rating to each financial institution, based upon an evaluation of 

financial and operational criteria. The rating is based on a scale of 

1 to 5 in ascending order of supervisory concern. “Problem” institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. 

Depending upon the degree of risk and supervisory concern, they 

are rated either a “4” or “5.” The number and assets of “problem” 

institutions are based on FDIC composite ratings. Prior to March 31, 

2008, for institutions whose primary federal regulator was the OTS, 

the OTS composite rating was used.

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common 

and preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as off-balancesheet 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-tomaturity” (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 (https://

home.treasury.gov/policy-issues/small-business-programs/

small-business-lending-fund).

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.