Quarterly Banking Profile
 

THIRD QUARTER 2006 

■ Net Income Of $37.6 Billion Falls Short Of Quarterly Record 

■ Net Interest Margin Hits 17-Year Low 

■ Lending To Commercial Borrowers Continues To Lead Asset Expansion 

■ Noncurrent Loans Increase For Second Consecutive Quarter 

■ Deposit Share Of Funding Falls To All-Time Low 

Chart 1 Chart 2 

10 

20 

30 

40 

25.3 

1 

27.2 

2 

27.3 

3 

25.1 

4 

2002 

29.5 

1 

30.2 

2 

30.4 

3 

31.1 

4 

2003 

31.8 

1 

31.2 

2 

32.5 

3 

31.1 

4 

2004 

34.0 

1 

34.3 

2 

34.7 

3 

32.7 

4 

2005 

36.9 

1 

38.0 

2 

37.6 

3 

2006 

$ Billions 

Net Operating Income 

Securities and Other Gains/Losses, Net 

Third-Quarter Profits Were Second-Highest Ever 

3rd Quarter 2005 to 3rd Quarter 2006 ($ Billions) 

Positive Factors Negative Factors

 $4.7 

Increase in 

Net Interest 

Income

 $3.9 

Increase in 

Noninterest 

Income

 -$1.3 

Decrease in 

Loan Loss 

Provision

 -$0.4 

Decrease in 

Gains on 

Securities 

Sales

 $5.8 

Increase in 

Noninterest 

Expense

 0 

Lower Loan Loss Provisions Provided a Boost to Earnings 

Earnings Decline from Record High 

Increased loan-loss provisions, reduced servicing income, 

and lower trading revenue at large institutions kept net 

income reported by FDIC-insured commercial banks and 

savings institutions from setting a new record in the third 

quarter of 2006. Industry earnings of $37.6 billion were 

$376 million (1.0 percent) below the record level of $38.0 

billion reached in the second quarter. A $1.1-billion 

(17.2-percent) increase in provisions for loan losses, an 

$880-million (20.6-percent) drop in servicing income, and 

a $98-million (2.1-percent) decline in trading revenue 

from second-quarter levels were primarily responsible for 

the lower earnings. Although earnings failed to set a new 

quarterly record, they still represented the second-highest 

quarterly total ever reported by the industry, and more than 

half of all institutions — 52.4 percent — reported higher 

earnings than in the second quarter. Earnings continue to 

move upward on a year-over-year basis. Compared to the 

third quarter of 2005, industry profits were up by $3.0 billion (8.6 percent). Net interest income was $4.7 billion 

(5.8 percent) higher than a year earlier, noninterest 

income was $3.9 billion (6.6 percent) higher, and loan-loss 

provisions were $1.3 billion (14.9 percent) lower. The 

year-over-year improvement in quarterly results was held 

down by higher noninterest expenses (up $5.8 billion, or 

7.2 percent), and by lower gains on sales of securities and 

other assets (down $378 million, or 30.5 percent). The 

average return on assets (ROA) declined to 1.29 percent 

from 1.34 percent in the second quarter, and 1.31 percent 

in the third quarter of 2005. More than half of all institutions — 54.4 percent — reported a quarterly ROA of 1 

percent or higher, but only 45.5 percent reported higher 

ROAs than a year earlier. 

Narrower Margins at Large Institutions Cause Slight 

Decline in Net Interest Income 

A flat yield curve, a growing reliance on interest-sensitive 

funding sources, and competitive pricing pressures all contributed to the downward pressure on net interest margins 

(NIMs) during the quarter. Rising funding costs outstripped 

increases in asset yields at a majority of institutions. For 

the fifth time in the last six quarters, the industry’s net 

interest margin declined from the level of the previous 

FEDERAL DEPOSIT INSURANCE CORPORATION ALL FDIC-INSURED INSTITUTIONS
 

 

FDIC Quarterly Banking Profile 

quarter. The average margin was 3.38 percent in the 

third quarter, down from 3.46 percent in the second 

quarter and 3.50 percent in the third quarter of 2005. 

This is the lowest level reported by the industry since 

the third quarter of 1989. Small institutions were 

somewhat of an exception; at institutions with less than 

$100 million in assets, the average NIM improved to 

4.25 percent, from 4.19 percent in the second quarter, 

although almost half of the institutions in this size 

group saw their margins shrink during the quarter. The 

lower NIMs meant that, even though the industry’s 

interest-bearing assets grew by 2.0 percent during the 

third quarter, net interest income was slightly lower 

than in the second quarter (down $39 million, or 0.05 

percent). 

Credit Losses Continue to Decline on a 

Year-Over-Year Basis 

Quarterly net charge-offs totaled $7.1 billion, down 

$1.2 billion (14.6 percent) from the third quarter of 

2005. This is the third consecutive quarter and the 

fourteenth time in the last sixteen quarters that the 

industry has registered a year-over-year decline in loan 

losses. But unlike earlier quarters, when the decline in 

losses was broad-based, the improvement in the last 

two quarters has been mostly confined to non-mortgage 

consumer loans. Losses on these loans had a sharp 

increase a year ago, before new bankruptcy rules took 

effect, and have not yet returned to pre-bankruptcyreform levels. Net charge-offs of credit card loans in 

the third quarter were $226 million (5.6 percent) lower 

than a year earlier, and net charge-offs of other loans to 

individuals were down by $1.1 billion (42.8 percent). 

In contrast, net charge-offs in several other loan categories have begun to rise from cyclical lows. Net 

charge-offs of commercial and industrial (C&I) loans 

Chart 3 

Small Institutions Saw Their Margins 

Improve 

Net Interest Margin (%) 

5.0

 4.5 Assets < $100 Million 4.25 

4.0

 3.5

Assets > $100 Million 3.36

 3.0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 

2002 2003 2004 2005 2006

increased by $220 million (33.8 percent) year over year, 

charge-offs on residential mortgage loans grew by $157 

million (62.3 percent), charge-offs on home equity 

lines of credit were up by $67 million (56.5 percent), 

and charge-offs of real estate construction and development loans rose by $29 million (118.7 percent). Still, 

loss rates in these loan categories remain near cyclical 

lows. 

Noncurrent Loans Post Largest Quarterly Increase 

in Five Years 

The amount of loans and leases that were noncurrent 

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

increased by $3.4 billion (6.9 percent) during the third 

quarter. This is the second consecutive quarter that 

noncurrent loans have increased, and it is the largest 

quarterly increase since the third quarter of 2001. 

Noncurrent loans have increased in four of the last five 

quarters, and are now 14.6 percent above the low point 

of $45.8 billion reached at the end of June, 2005. The 

present level is still 24 percent below the most recent 

cyclical peak of $68.9 billion, which occurred four years 

ago, and the overall percentage of loans that are noncurrent remains near an all-time low. The growth in 

noncurrent loans occurred across a number of loan categories. Noncurrent residential mortgage loans 

increased by $985 million (5.3 percent) during the 

quarter. Noncurrent construction and development 

loans rose by $729 million (33.0 percent). Noncurrent 

C&I loans were up by $543 million (6.7 percent), and 

noncurrent levels increased in home equity lines of 

credit, credit cards, and other loans to individuals, as 

well. New data reported for the first time for the third 

quarter indicated that insured commercial banks and 

state-chartered savings banks that file Call reports 

(about 90 percent of all FDIC-insured institutions) 

Chart 4 

Losses on Mortgages and Commercial Loans 

Have Been Rising 

Quarterly Net Charge-offs, 12-Month Growth Rates 

Percent 

120 

100 

Non-Mortgage Loans 80 to Individuals 

60

 40

 20

 0

 -20

 -40 All Other Loans
 

& Leases


 -60

2001 2002 2003 2004 2005 2006

THIRD QUARTER 2006 2 ALL FDIC-INSURED INSTITUTIONS
 

 

 

 

FDIC Quarterly Banking Profile 

added $9.7 billion in nonaccrual assets during the quar- inception. The risk-based capital ratios registered 

ter, and sold $925 million in nonaccrual assets. improvement as well, albeit not to record levels. 

Reserve Growth Fails to Keep Pace with Rise 

in Noncurrent Loans 

Insured institutions set aside $7.6 billion in provisions 

for loan losses during the quarter, while charging-off 

$7.1 billion in bad loans. This was the third consecutive quarter that loan-loss provisions have exceeded net 

charge-offs, but total loan-loss reserves increased by 

only $33 million (0.04 percent). The industry’s ratio of 

reserves to total loans, which has been declining for the 

past four-and-a-half years, dropped from 1.10 percent to 

1.09 percent during the quarter, and is now at its lowest 

level since June 30, 1985. The industry’s “coverage 

ratio” also fell during the quarter. At midyear, insured 

institutions had $1.59 in reserves for every $1.00 of 

noncurrent loans, but the growth in noncurrent loans 

during the third quarter caused the coverage ratio to 

fall to $1.48 as of September 30. This is the lowest it 

has been since the end of 2003. 

Capital Levels Improve 

Retained earnings totaled $17.7 billion in the third 

quarter, an increase of $4.2 billion (30.7 percent) from 

the third quarter of 2005. During the quarter, unrealized losses on available-for-sale securities declined by 

$19.1 billion (63.8 percent), as lower long-term interest 

rates lifted the market values of fixed interest-rate securities. These were the main contributors to a $45.8-billion (3.9-percent) increase in equity capital during the 

quarter, the largest quarterly increase in two years. The 

industry’s core capital (leverage) ratio, which is not 

affected by changes in securities values, increased from 

8.24 percent to 8.33 percent, the highest level since its 

Chart 5
 

After Lagging for the Past Three Years, 

Loss Provisions Are Now Leading Charge-Offs

$ Billions 

Loss Provisions 11
 Net Charge-offs 1010 10
 10
 10
 10
 9
 9
 9
 9 9
 8
 8
 8
 8
 8
 8
 7 7
 7
 7
 7
 7
 6
 7
 6
 6
 6
 6


03/03 06/03 09/03 12/03 03/04 06/04 09/04 12/04 03/05 06/05 09/05 12/05 03/06 06/06 09/06 

Commercial Loans, Short-term Investments 

Register Largest Growth 

Total assets of FDIC-insured institutions increased by 

$233.7 billion (2.0 percent) during the quarter, led by a 

$109.3-billion (1.5-percent) increase in loans and leases. Commercial loan growth remained especially 

strong, surpassing growth in consumer loans for the 

fourth quarter in a row. Real estate construction and 

development loans increased by $27.3 billion (5.3 percent), C&I loans grew by $23.9 billion (2.1 percent), 

and real estate loans secured by nonfarm nonresidential 

properties rose by $22.0 billion (2.6 percent). Together, these three loan categories accounted for two-thirds 

of all loan growth in the third quarter. Residential 

mortgage loans increased by $19.3 billion (0.9 percent), 

the smallest quarterly increase since the fourth quarter 

of 2003. Fed funds sold registered a record increase of 

$66.2 billion (41.8 percent) during the quarter. 

Reliance on Volatile Funding Continues to Grow 

For the first time in three years, core (retail) deposits 

registered a quarterly decline, falling by $5.2 billion 

(0.1 percent). The decline was caused primarily by a 

$41.8-billion (3.5-percent) decline in noninterest-bearing deposits. Non-core deposits, which include deposits 

in foreign offices and time deposits in denominations of 

$100,000 or more, increased by $78.9 billion (3.2 percent) during the quarter. Overall deposit growth failed 

to keep pace with the growth in industry assets. Total 

deposits increased by only $73.7 billion (1.0 percent), 

less than one-third the increase in industry assets. 

Time deposits in domestic offices increased by $89.4 

Chart 6
 

Growth in Noncurrent Loans Has Eroded 

the Coverage Ratio* 

$ Billions Coverage Ratio (%)
 

Loan-Loss Reserves ($)
 

90
 180


 80
 160


 70
 140


Coverage Ratio (%)
 60
 120


 50
 100


 40
 80
 Noncurrent Loans ($)
 

30
 60


 20
 40


 10
 20


3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06
 

* Loan-loss reserves to noncurrent loans. 

ALL FDIC-INSURED INSTITUTIONS 3 THIRD QUARTER 2006
 
 

 

FDIC Quarterly Banking Profile 

billion (3.8 percent) during the quarter, continuing a 

recent trend of strong growth. During the 12 months 

ended September 30, time deposits at insured institutions increased by $379.1 billion (18.5 percent). At 

the end of September, deposits funded 64.5 percent of 

the industry’s assets, the lowest level in the history of 

the FDIC. Nondeposit liabilities increased by $114.2 

billion (4.0 percent), as Fed funds purchased rose by 

$34.1 billion (18.5 percent). These shifts in funding 

mean that a growing share of insured institutions’ liabilities is becoming more sensitive to changes in interest rates. 

“Problem List” Shrinks to New Low 

An increase in merger activity and a decline in the 

number of new charters contributed to a net reduction 

Chart 7 

Time Deposits Account for Almost All 

Domestic Deposit Growth 

Percent 

25 All other 

20

 15

 10

 5

 0

Noninterest-bearing

 deposits 

interest-bearing 

deposits 

Time deposits -5

 -10

2001 2002 2003 2004 2005 2006

of 35 reporters during the third quarter. There were 

8,743 insured institutions reporting results as of September 30, down from 8,778 reporters as of June 30. 

There were 47 new reporters added in the quarter, 

down from 55 in the second quarter, while 83 institutions were merged into other reporters during the quarter, compared to 67 mergers in the second quarter. No 

FDIC-insured institution failed during the quarter, 

extending the record-setting streak of no failures to 

nine quarters. As a further sign of industry health, the 

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

declined from 50 to 47, and assets of “problem” institutions shrank from $5.5 billion to $4.0 billion. Both the 

number and assets of “problem” institutions are at historical lows. During the quarter, seven insured savings 

institutions converted from mutual to stock ownership. 

Chart 8 

Institutions Continue to Expand Their 

Branch Networks 

Number (Thousands) 

80 

60 

40 

20 

0 

Branches 

Institutions (Main Offices Only) 

All Offices of FDIC Insured Institutions 

(Main Offices plus Branches) 

12/90 12/92 12/94 12/96 12/98 12/00 12/02 12/04 9/06 

Note: Includes insured branches of foreign banks that file a Call Report. 

THIRD QUARTER 2006 4 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile 

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

2006** 2005** 2005 2004 2003 2002 2001 

Return on assets (%) ................................................................... 1.33 1.33 1.30 1.28 1.38 1.30 1.14 

Return on equity (%) .................................................................... 12.76 13.06 12.73 13.20 15.05 14.08 13.02 

Core capital (leverage) ratio (%) .................................................. 8.33 8.23 8.25 8.11 7.88 7.86 7.79 

Noncurrent assets plus 

other real estate owned to assets (%) ....................................... 0.49 0.50 0.50 0.53 0.75 0.90 0.87 

Net charge-offs to loans (%) ........................................................ 0.36 0.47 0.50 0.56 0.78 0.97 0.83 

Asset growth rate (%) ................................................................... 9.88 8.34 7.64 11.35 7.58 7.20 5.44 

Net interest margin (%) ................................................................ 3.43 3.54 3.52 3.54 3.73 3.96 3.78 

Net operating income growth (%) ................................................ 11.76 13.79 11.41 4.04 16.39 17.58 -0.48 

Number of institutions reporting ................................................... 8,743 8,858 8,833 8,976 9,181 9,354 9,614 

Commercial banks .................................................................... 7,450 7,541 7,526 7,631 7,770 7,888 8,080 

Savings institutions ................................................................... 1,293 1,317 1,307 1,345 1,411 1,466 1,534 

Percentage of unprofitable institutions (%) .................................. 6.93 5.81 6.22 5.96 5.99 6.67 8.24 

Number of problem institutions .................................................... 47 68 52 80 116 136 114 

Assets of problem institutions (in billions) .................................... $4 $21 $7 $28 $30 $39 $40 

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

* Excludes insured branches of foreign banks (IBAs). 

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

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

(dollar figures in millions) 

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

3rd Quarter 

2006 

2nd Quarter 

2006 

3rd Quarter 

2005 

%Change 

05:3-06:3 

8,743 8,778 8,858 -1.3 

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

CONDITION DATA 

2,196,414 2,198,688 2,138,180 2.7 

Total assets ......................................................................................................... $11,757,683 $11,523,992 $10,700,661 9.9 

Loans secured by real estate ........................................................................... 4,457,264 4,384,761 4,063,588 9.7 

1-4 Family residential mortgages .................................................................. 2,175,646 2,156,351 2,017,669 7.8 

Commercial real estate ................................................................................. 881,533 859,526 807,683 9.1 

Construction and development ...................................................................... 541,516 514,178 418,272 29.5 

Home equity lines .......................................................................................... 554,860 556,049 538,177 3.1 

Commercial & industrial loans .......................................................................... 1,188,310 1,164,422 1,049,710 13.2 

Loans to individuals .......................................................................................... 955,063 933,105 932,786 2.4 

Credit cards ................................................................................................... 383,143 374,348 368,485 4.0 

Farm loans ....................................................................................................... 54,365 52,760 50,708 7.2 

Other loans & leases ........................................................................................ 516,540 527,385 483,496 6.8 

Less: Unearned income ................................................................................... 2,237 2,434 3,187 -29.8 

Total loans & leases ......................................................................................... 7,169,304 7,059,999 6,577,102 9.0 

Less: Reserve for losses .................................................................................. 77,948 77,915 79,382 -1.8 

Net loans and leases ........................................................................................ 7,091,356 6,982,085 6,497,720 9.1 

Securities .......................................................................................................... 1,991,937 1,970,902 1,890,280 5.4 

Other real estate owned ................................................................................... 5,566 5,218 4,139 34.5 

Goodwill and other intangibles ......................................................................... 387,892 390,401 329,456 17.7 

All other assets ................................................................................................. 2,280,932 2,175,386 1,979,066 15.3 

Total liabilities and capital ................................................................................... 11,757,683 11,523,992 10,700,661 9.9 

Deposits ........................................................................................................... 7,578,538 7,504,805 6,969,009 8.7 

Domestic office deposits ............................................................................... 6,474,684 6,436,734 6,066,257 6.7 

Foreign office deposits .................................................................................. 1,103,854 1,068,070 902,751 22.3 

Other borrowed funds ....................................................................................... 2,296,867 2,215,775 2,073,948 10.7 

Subordinated debt ............................................................................................ 146,675 142,876 125,014 17.3 

All other liabilities .............................................................................................. 506,174 476,906 435,749 16.2 

Equity capital .................................................................................................... 1,229,429 1,183,629 1,096,942 12.1 

Loans and leases 30-89 days past due ............................................................... 62,763 55,228 53,400 17.5 

Noncurrent loans and leases ............................................................................... 52,517 49,138 48,707 7.8 

Restructured loans and leases ............................................................................ 3,665 3,370 2,962 23.7 

Direct and indirect investments in real estate ...................................................... 1,119 1,122 926 20.9 

Mortgage-backed securities ................................................................................ 1,208,720 1,213,807 1,138,848 6.1 

Earning assets ..................................................................................................... 10,260,709 10,054,079 9,353,839 9.7 

FHLB Advances .................................................................................................. 632,540 622,584 591,635 6.9 

Unused loan commitments .................................................................................. 7,703,101 7,557,949 6,898,317 11.7 

Trust assets ......................................................................................................... 18,066,710 17,550,012 16,095,139 12.2 

Assets securitized and sold*** ............................................................................. 1,063,499 1,004,034 1,023,456 3.9 

Notional amount of derivatives*** ........................................................................ 127,161,464 120,205,366 99,565,086 27.7 

INCOME DATA 

3rd Quarter 

2005 

%Change 

05:3-06:3 

First Three 

Qtrs 2006 

First Three 

Qtrs 2005 %Change 

3rd Quarter 

2006 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

$485,085 $381,811 27.1 $171,584 $135,703 26.4 

231,162 143,885 60.7 85,938 54,769 56.9 

253,924 237,926 6.7 85,646 80,934 5.8 

19,965 21,716 -8.1 7,589 8,921 -14.9 

185,978 168,347 10.5 62,593 58,702 6.6 

255,158 237,203 7.6 86,025 80,269 7.2 

1,810 4,339 -58.3 860 1,238 -30.5 

54,778 49,763 10.1 17,971 16,934 6.1 

595 -80 N/M 115 -91 N/M 

112,406 101,850 10.4 37,629 34,659 8.6 

18,644 22,200 -16.0 7,134 8,351 -14.6 

60,408 54,734 10.4 19,892 21,093 -5.7 

51,997 47,116 10.4 17,736 13,566 30.7 

110,661 99,016 11.8 36,978 33,901 9.1 

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

ALL FDIC-INSURED INSTITUTIONS 5 THIRD QUARTER 2006
FDIC Quarterly Banking Profile 

TABLE III-A. Third Quarter 2006, All FDIC-Insured Institutions 

THIRD QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,743 29 4 1,691 4,711 846 125 396 886 55 

Commercial banks .............................................. 7,450 26 4 1,686 4,242 190 96 356 807 43 

Savings institutions ............................................. 1,293 3 0 5 469 656 29 40 79 12 

Total assets (in billions) ......................................... $11,757.7 $382.0 $2,128.5 $151.5 $4,671.2 $1,792.5 $107.1 $41.4 $117.4 $2,366.1 

Commercial banks .............................................. 9,765.4 364.2 2,128.5 150.9 4,223.3 395.0 52.0 32.8 100.3 2,318.4 

Savings institutions ............................................. 1,992.3 17.8 0.0 0.6 447.9 1,397.5 55.1 8.6 17.1 47.6 

Total deposits (in billions) ...................................... 7,578.5 84.2 1,276.0 121.9 3,350.2 1,020.6 77.6 28.6 95.8 1,523.6 

Commercial banks .............................................. 6,426.5 81.7 1,276.0 121.3 3,061.3 247.8 35.6 22.7 82.4 1,497.6 

Savings institutions ............................................. 1,152.1 2.6 0.0 0.5 288.9 772.8 42.0 5.9 13.4 25.9 

Net income (in millions) ......................................... 37,629 3,879 4,815 492 15,333 4,651 419 223 311 7,506 

Commercial banks .............................................. 32,468 3,810 4,815 490 14,173 1,052 281 147 296 7,404 

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

Performance Ratios (annualized,%) 

5,160 68 0 1 1,159 3,599 139 76 15 103 

Yield on earning assets ......................................... 6.76 13.91 5.85 7.03 7.02 6.37 8.36 5.49 6.28 6.30 

Cost of funding earning assets .............................. 3.39 4.37 3.42 2.97 3.24 3.73 3.41 2.27 2.58 3.33 

Net interest margin ............................................. 3.38 9.54 2.44 4.06 3.78 2.63 4.95 3.22 3.70 2.96 

Noninterest income to assets ................................ 2.15 10.73 2.54 0.70 1.55 1.15 2.53 9.48 1.11 2.37 

Noninterest expense to assets .............................. 2.96 8.91 3.04 2.69 2.82 2.07 3.65 9.16 3.08 2.73 

Loan and lease loss provision to assets ................ 0.26 2.89 0.27 0.15 0.17 0.12 0.79 0.07 0.11 0.12 

Net operating income to assets ............................. 1.27 3.90 0.88 1.32 1.34 0.92 1.62 2.08 1.06 1.31 

Pretax return on assets ......................................... 1.91 6.42 1.33 1.59 1.90 1.60 2.50 3.13 1.32 1.98 

Return on assets ................................................... 1.29 4.09 0.92 1.31 1.32 1.06 1.60 2.17 1.06 1.28 

Return on equity .................................................... 12.47 15.07 11.77 12.11 12.91 9.98 16.22 9.58 9.74 13.01 

Net charge-offs to loans and leases ...................... 0.40 3.86 0.64 0.15 0.19 0.18 1.21 0.12 0.17 0.23 

Loan and lease loss provision to net charge-offs .. 106.37 106.24 99.90 148.12 123.96 92.07 82.62 259.52 115.57 97.90 

Efficiency ratio ....................................................... 56.65 46.20 64.80 60.27 56.55 57.09 50.69 73.89 67.97 54.87 

% of unprofitable institutions ................................. 7.43 3.45 0.00 3.02 7.71 10.87 8.00 22.98 4.51 3.64 

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

Structural Changes 

53.89 65.52 50.00 51.92 60.24 32.27 46.40 45.45 49.44 47.27 

New Charters ..................................................... 47 0 0 0 10 1 0 34 0 2 

Institutions absorbed by mergers ....................... 83 0 0 9 63 3 0 0 2 6 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) .................................. 2005 1.31 3.16 1.02 1.33 1.39 1.03 1.76 1.77 1.12 1.31

 ............................. 2003 1.36 4.25 1.02 1.25 1.28 1.33 1.68 1.47 1.06 1.33

 ............................. 2001 1.08 3.15 0.70 1.15 0.96 1.19 1.17 1.92 1.13 1.10 

Net charge-offs to loans and leases (%)...... 2005 0.51 4.28 1.19 0.16 0.23 0.10 1.39 0.18 0.20 0.26

 ............................. 2003 0.73 4.80 1.40 0.29 0.47 0.19 1.34 2.47 0.37 0.48

 ............................. 2001 0.83 4.25 0.69 0.48 0.77 0.17 1.28 0.43 0.31 0.70 

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

THIRD QUARTER 2006 6 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile 

TABLE III-A. Third Quarter 2006, All FDIC-Insured Institutions 

THIRD QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to

 $1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,743 3,730 4,369 524 120 1,097 1,233 1,848 2,026 1,767 772 

Commercial banks .............................................. 7,450 3,331 3,631 401 87 575 1,086 1,524 1,923 1,643 699 

Savings institutions ............................................. 1,293 399 738 123 33 522 147 324 103 124 73 

Total assets (in billions) ......................................... $11,757.7 $194.1 $1,283.5 $1,428.7 $8,851.3 $2,962.9 $2,928.6 $2,736.1 $814.4 $642.2 $1,673.5 

Commercial banks .............................................. 9,765.4 173.9 1,031.9 1,095.3 7,464.3 2,316.6 2,730.9 2,582.4 778.3 539.0 818.3 

Savings institutions ............................................. 1,992.3 20.3 251.6 333.4 1,387.0 646.3 197.7 153.7 36.1 103.2 855.2 

Total deposits (in billions) ...................................... 7,578.5 158.1 1,025.0 1,009.0 5,386.4 1,942.0 1,922.5 1,690.2 591.8 488.3 943.7 

Commercial banks .............................................. 6,426.5 142.6 836.9 777.3 4,669.6 1,517.6 1,793.7 1,581.3 568.0 426.5 539.4 

Savings institutions ............................................. 1,152.1 15.4 188.1 231.7 716.8 424.4 128.8 109.0 23.8 61.8 404.3 

Net income (in millions) ......................................... 37,629 483 3,917 4,059 29,169 8,254 9,953 6,868 3,653 1,950 6,952 

Commercial banks .............................................. 32,468 443 3,435 3,429 25,161 6,873 9,525 6,646 3,581 1,669 4,175 

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

Performance Ratios (annualized,%) 

5,160 41 482 630 4,008 1,381 427 222 72 281 2,777 

Yield on earning assets ......................................... 6.76 6.95 7.12 6.96 6.67 6.57 6.69 6.03 7.65 7.11 7.81 

Cost of funding earning assets .............................. 3.39 2.71 3.04 3.26 3.48 3.45 3.44 3.30 3.12 3.10 3.56 

Net interest margin ............................................. 3.38 4.25 4.08 3.70 3.19 3.12 3.25 2.73 4.53 4.01 4.25 

Noninterest income to assets ................................ 2.15 1.27 1.22 1.64 2.39 2.40 1.99 1.99 3.07 1.44 2.09 

Noninterest expense to assets .............................. 2.96 3.72 3.14 3.00 2.91 3.08 2.58 2.76 4.11 3.24 3.06 

Loan and lease loss provision to assets ................ 0.26 0.20 0.17 0.22 0.28 0.40 0.12 0.15 0.30 0.16 0.48 

Net operating income to assets ............................. 1.27 1.00 1.23 1.15 1.30 1.11 1.41 1.01 1.75 1.22 1.54 

Pretax return on assets ......................................... 1.91 1.27 1.67 1.76 1.99 1.63 2.05 1.46 2.63 1.64 2.68 

Return on assets ................................................... 1.29 1.01 1.23 1.14 1.33 1.12 1.37 1.01 1.78 1.23 1.71 

Return on equity .................................................... 12.47 7.79 11.94 10.20 13.08 10.18 14.23 11.29 16.36 11.95 13.55 

Net charge-offs to loans and leases ...................... 0.40 0.16 0.14 0.20 0.49 0.63 0.18 0.27 0.46 0.23 0.62 

Loan and lease loss provision to net charge-offs .. 106.37 199.67 173.56 168.41 97.62 114.52 105.60 98.68 93.85 114.68 103.25 

Efficiency ratio ....................................................... 56.65 71.54 62.75 58.86 55.12 58.33 52.56 62.12 57.59 63.52 50.47 

% of unprofitable institutions ................................. 7.43 13.14 3.32 2.86 0.00 10.30 10.22 7.25 4.44 5.43 11.79 

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

Structural Changes 

53.89 49.44 57.04 57.82 60.83 40.93 61.72 45.35 50.25 64.97 64.51 

New Charters ..................................................... 47 44 1 2 0 6 13 5 2 3 18 

Institutions absorbed by mergers ....................... 83 31 41 7 4 12 12 23 22 12 2 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ................................... 2005 1.31 1.08 1.27 1.34 1.32 1.24 1.35 1.08 1.73 1.18 1.60

 .............................. 2003 1.36 1.01 1.17 1.34 1.41 1.24 1.40 1.21 1.77 1.34 1.66

 .............................. 2001 1.08 0.92 1.14 1.24 1.04 1.08 0.72 1.01 1.45 1.33 1.44 

Net charge-offs to loans and leases (%) ...... 2005 0.51 0.16 0.18 0.23 0.64 0.97 0.27 0.29 0.54 0.25 0.59

 ............................. 2003 0.73 0.30 0.37 0.49 0.87 1.10 0.50 0.65 0.85 0.38 0.60

 ............................. 2001 0.83 0.32 0.33 0.77 0.99 0.88 0.98 0.82 0.72 0.44 0.78 

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

ALL FDIC-INSURED INSTITUTIONS 7 THIRD QUARTER 2006
FDIC Quarterly Banking Profile 

TABLE IV-A. First Three Quarters 2006, All FDIC-Insured Institutions 

FIRST THREE QUARTERS 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,743 29 4 1,691 4,711 846 125 396 886 55 

Commercial banks .............................................. 7,450 26 4 1,686 4,242 190 96 356 807 43 

Savings institutions ............................................. 1,293 3 0 5 469 656 29 40 79 12 

Total assets (in billions) ......................................... $11,757.7 $382.0 $2,128.5 $151.5 $4,671.2 $1,792.5 $107.1 $41.4 $117.4 $2,366.1 

Commercial banks .............................................. 9,765.4 364.2 2,128.5 150.9 4,223.3 395.0 52.0 32.8 100.3 2,318.4 

Savings institutions ............................................. 1,992.3 17.8 0.0 0.6 447.9 1,397.5 55.1 8.6 17.1 47.6 

Total deposits (in billions) ...................................... 7,578.5 84.2 1,276.0 121.9 3,350.2 1,020.6 77.6 28.6 95.8 1,523.6 

Commercial banks .............................................. 6,426.5 81.7 1,276.0 121.3 3,061.3 247.8 35.6 22.7 82.4 1,497.6 

Savings institutions ............................................. 1,152.1 2.6 0.0 0.5 288.9 772.8 42.0 5.9 13.4 25.9 

Net income (in millions) .......................................... 112,406 12,315 15,432 1,431 45,007 13,597 1,296 440 931 21,958 

Commercial banks .............................................. 96,748 11,988 15,432 1,428 41,750 2,840 772 111 869 21,559 

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

Performance Ratios (annualized,%) 

15,658 327 0 3 3,256 10,758 524 329 62 399 

Yield on earning assets .......................................... 6.55 13.29 5.75 6.76 6.78 6.15 7.88 5.31 6.13 6.08 

Cost of funding earning assets .............................. 3.12 3.99 3.28 2.69 2.96 3.42 3.24 2.01 2.39 3.04 

Net interest margin .............................................. 3.43 9.30 2.47 4.07 3.82 2.73 4.64 3.30 3.75 3.04 

Noninterest income to assets ................................. 2.19 10.94 2.81 0.68 1.54 1.17 2.60 9.67 1.13 2.28 

Noninterest expense to assets ............................... 3.01 8.96 3.15 2.70 2.84 2.11 3.58 9.99 3.13 2.76 

Loan and lease loss provision to assets ................ 0.24 2.50 0.24 0.15 0.16 0.09 0.71 0.22 0.11 0.11 

Net operating income to assets ............................. 1.30 4.22 1.02 1.30 1.33 0.95 1.62 1.26 1.07 1.29 

Pretax return on assets .......................................... 1.97 6.91 1.48 1.57 1.91 1.65 2.58 2.44 1.34 1.97 

Return on assets .................................................... 1.33 4.42 1.03 1.29 1.32 1.07 1.69 1.38 1.07 1.28 

Return on equity ..................................................... 12.76 17.16 12.91 12.00 12.99 9.88 17.23 6.07 9.83 12.94 

Net charge-offs to loans and leases ...................... 0.36 3.38 0.59 0.14 0.18 0.14 1.00 0.50 0.17 0.20 

Loan and lease loss provision to net charge-offs ... 107.09 103.94 93.56 160.74 131.36 93.12 89.96 191.81 118.57 101.58 

Efficiency ratio ........................................................ 56.52 45.86 63.17 60.57 56.64 56.56 51.94 69.16 68.02 55.71 

% of unprofitable institutions .................................. 6.93 3.45 0.00 2.54 7.71 8.04 6.40 21.97 3.95 1.82 

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

Condition Ratios (%) 

56.83 75.86 100.00 52.51 66.40 29.91 52.80 42.17 46.05 60.00 

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

Loss Allowance to: 

87.27 75.15 84.32 91.89 88.89 92.35 90.40 86.73 91.92 84.15 

Loans and leases ................................................ 1.09 4.05 1.28 1.36 1.12 0.45 1.30 1.45 1.23 0.81 

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

Noncurrent assets plus 

148.42 213.38 141.80 157.34 174.16 69.03 169.54 199.62 163.02 123.42 

other real estate owned to assets .......................... 0.49 1.35 0.40 0.67 0.51 0.52 0.65 0.20 0.52 0.37 

Equity capital ratio ................................................. 10.46 27.18 7.82 10.94 10.39 10.53 9.77 22.70 11.11 9.94 

Core capital (leverage) ratio ................................... 8.33 18.53 6.15 10.57 8.38 9.19 9.31 18.99 10.97 7.53 

Tier 1 risk-based capital ratio ................................. 10.77 16.81 8.19 14.13 9.82 15.12 11.30 42.80 18.07 10.36 

Total risk-based capital ratio .................................. 13.11 19.57 11.62 15.23 12.00 16.62 12.22 44.33 19.25 12.72 

Net loans and leases to deposits ........................... 93.57 309.67 68.62 82.86 96.08 122.98 108.35 31.81 67.97 80.19 

Net loans to total assets ......................................... 60.31 68.30 41.13 66.64 68.91 70.02 78.54 22.00 55.49 51.64 

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

Structural Changes 

55.07 18.41 28.25 80.42 68.88 56.83 70.75 67.80 81.28 52.66 

New Charters ...................................................... 145 0 0 3 37 2 2 95 4 2 

Institutions absorbed by mergers ........................ 235 0 0 26 183 9 0 4 4 9 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Number of institutions .................................. 2005 8,858 29 4 1,733 4,557 928 125 420 992 70

 ................................ 2003 9,236 36 6 1,821 4,167 1,024 166 522 1,391 103

 ................................ 2001 9,701 60 6 1,923 4,022 1,235 246 452 1,664 93 

Total assets (in billions) ............................... 2005 $10,700.7 $359.9 $1,838.9 $143.0 $3,667.3 $1,677.1 $109.2 $47.7 $128.6 $2,729.0

 ................................ 2003 8,943.1 308.8 1,427.9 129.5 3,095.8 1,588.5 191.9 62.2 192.1 1,946.3

 ................................ 2001 7,844.2 338.9 1,287.6 119.5 3,805.2 1,137.9 145.1 46.4 197.6 766.1 

Return on assets (%) ................................... 2005 1.33 3.19 0.88 1.32 1.38 1.12 1.70 1.73 1.12 1.43

 ................................ 2003 1.38 3.93 1.05 1.25 1.30 1.44 1.54 1.36 1.09 1.31

 ................................ 2001 1.15 2.93 0.90 1.18 1.10 1.09 1.04 1.66 1.12 1.07 

Net charge-offs to loans & leases (%) ......... 2005 0.47 4.27 0.88 0.15 0.22 0.10 1.46 0.29 0.27 0.21

 ................................ 2003 0.78 5.12 1.41 0.24 0.52 0.19 1.42 1.44 0.31 0.56

 ................................ 2001 

Noncurrent assets plus 

0.73 4.02 0.63 0.30 0.61 0.15 1.16 0.50 0.27 0.69 

OREO to assets (%) ................................. 2005 0.50 1.36 0.48 0.68 0.48 0.57 0.54 0.25 0.57 0.37

 ................................ 2003 0.77 1.34 0.98 0.95 0.79 0.64 0.88 0.36 0.74 0.61

 ................................ 2001 0.81 1.49 0.72 0.89 0.88 0.60 1.31 0.30 0.65 0.64 

Equity capital ratio (%) ................................. 2005 10.25 22.07 8.23 10.86 10.21 10.67 9.58 19.26 10.83 9.66

 ................................ 2003 9.13 17.03 7.27 10.81 9.42 8.79 7.49 15.92 10.57 8.75

 ................................ 2001 8.90 12.83 6.51 10.96 9.43 8.50 7.40 17.17 10.56 8.18 

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

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

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

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

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

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

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

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

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

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

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

THIRD QUARTER 2006 8 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile 

TABLE IV-A. First Three Quarters 2006, All FDIC-Insured Institutions 

FIRST THREE QUARTERS 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,743 3,730 4,369 524 120 1,097 1,233 1,848 2,026 1,767 772 

Commercial banks .............................................. 7,450 3,331 3,631 401 87 575 1,086 1,524 1,923 1,643 699 

Savings institutions ............................................. 1,293 399 738 123 33 522 147 324 103 124 73 

Total assets (in billions) ......................................... $11,757.7 $194.1 $1,283.5 $1,428.7 $8,851.3 $2,962.9 $2,928.6 $2,736.1 $814.4 $642.2 $1,673.5 

Commercial banks .............................................. 9,765.4 173.9 1,031.9 1,095.3 7,464.3 2,316.6 2,730.9 2,582.4 778.3 539.0 818.3 

Savings institutions ............................................. 1,992.3 20.3 251.6 333.4 1,387.0 646.3 197.7 153.7 36.1 103.2 855.2 

Total deposits (in billions) ...................................... 7,578.5 158.1 1,025.0 1,009.0 5,386.4 1,942.0 1,922.5 1,690.2 591.8 488.3 943.7 

Commercial banks .............................................. 6,426.5 142.6 836.9 777.3 4,669.6 1,517.6 1,793.7 1,581.3 568.0 426.5 539.4 

Savings institutions ............................................. 1,152.1 15.4 188.1 231.7 716.8 424.4 128.8 109.0 23.8 61.8 404.3 

Net income (in millions) ......................................... 112,406 1,441 11,169 13,023 86,773 26,449 28,340 21,106 10,219 5,934 20,358 

Commercial banks .............................................. 96,748 1,313 9,563 10,751 75,121 21,968 27,025 20,183 10,002 5,027 12,542 

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

Performance Ratios (annualized,%) 

15,658 128 1,606 2,272 11,652 4,481 1,315 923 217 906 7,815 

Yield on earning assets ......................................... 6.55 6.57 6.85 6.70 6.48 6.42 6.41 5.94 7.28 6.83 7.52 

Cost of funding earning assets .............................. 3.12 2.42 2.77 2.97 3.22 3.20 3.12 3.14 2.84 2.83 3.21 

Net interest margin ............................................. 3.43 4.15 4.09 3.72 3.26 3.22 3.29 2.80 4.44 4.00 4.31 

Noninterest income to assets ................................ 2.19 1.25 1.25 1.61 2.45 2.53 1.93 2.11 3.05 1.43 2.03 

Noninterest expense to assets .............................. 3.01 3.62 3.21 2.93 2.98 3.19 2.63 2.81 4.13 3.22 3.02 

Loan and lease loss provision to assets ................ 0.24 0.17 0.17 0.18 0.25 0.33 0.11 0.14 0.27 0.15 0.45 

Net operating income to assets ............................. 1.30 1.00 1.18 1.24 1.34 1.22 1.35 1.08 1.68 1.23 1.59 

Pretax return on assets .......................................... 1.97 1.29 1.63 1.88 2.05 1.81 2.02 1.57 2.47 1.68 2.70 

Return on assets .................................................... 1.33 1.01 1.20 1.25 1.36 1.24 1.34 1.07 1.68 1.27 1.73 

Return on equity .................................................... 12.76 7.82 11.60 11.26 13.33 11.29 13.79 11.81 15.67 12.41 13.62 

Net charge-offs to loans and leases ...................... 0.36 0.14 0.13 0.19 0.43 0.56 0.16 0.24 0.39 0.20 0.56 

Loan and lease loss provision to net charge-offs .. 107.09 196.79 186.34 143.65 99.28 108.70 111.82 103.99 99.65 123.51 105.21 

Efficiency ratio ....................................................... 56.52 71.25 62.91 57.75 55.11 57.47 54.05 60.64 58.61 63.20 49.76 

% of unprofitable institutions .................................. 6.93 12.73 2.84 1.34 0.00 9.75 10.14 6.01 4.24 4.92 11.66 

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

Condition Ratios(%) 

56.83 50.83 60.68 64.50 70.00 42.11 68.45 45.83 53.95 65.70 72.80 

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

Loss Allowance to: 

87.27 92.08 91.96 90.78 85.92 86.31 85.90 86.93 86.61 89.55 91.35 

Loans and leases ................................................ 1.09 1.31 1.18 1.16 1.05 1.24 0.90 1.13 1.19 1.14 1.05 

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

Noncurrent assets plus 

148.42 140.77 173.69 192.44 138.30 164.29 207.58 131.21 106.50 137.57 134.84 

other real estate owned to assets .......................... 0.49 0.72 0.57 0.46 0.49 0.43 0.31 0.54 0.89 0.62 0.63 

Equity capital ratio ................................................. 10.46 13.02 10.46 11.34 10.26 11.13 9.76 9.03 11.18 10.39 12.49 

Core capital (leverage) ratio .................................. 8.33 13.06 9.99 9.78 7.75 8.27 7.35 7.34 9.26 8.76 11.14 

Tier 1 risk-based capital ratio ................................. 10.77 19.16 13.46 12.80 9.90 11.48 9.40 8.99 11.20 12.08 14.38 

Total risk-based capital ratio .................................. 13.11 20.24 14.60 14.11 12.60 14.13 11.62 11.62 13.73 13.41 16.18 

Net loans and leases to deposits ........................... 93.57 77.06 86.19 94.31 95.32 83.18 93.23 88.10 96.08 80.92 130.44 

Net loans to total assets ........................................ 60.31 62.75 68.83 66.61 58.01 54.52 61.20 54.42 69.81 61.53 73.55 

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

Structural Changes 

55.07 81.43 79.74 69.93 48.51 46.01 58.77 51.70 68.71 75.26 55.74 

New Charters ...................................................... 145 138 3 4 0 17 52 15 9 16 36 

Institutions absorbed by mergers ........................ 235 92 120 18 5 28 46 47 56 34 24 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions .................................. 2005 8,858 3,943 4,294 503 118 1,113 1,219 1,890 2,074 1,806 756

 ................................ 2003 9,236 4,464 4,190 469 113 1,188 1,231 2,027 2,141 1,878 771

 ................................ 2001 9,701 5,191 3,964 445 101 1,264 1,293 2,132 2,227 1,971 814 

Total assets (in billions) ............................... 2005 $10,700.7 $205.8 $1,225.6 $1,365.9 $7,903.2 $2,755.9 $2,635.4 $2,494.5 $784.0 $585.0 $1,445.8

 ................................ 2003 8,943.1 229.1 1,159.8 1,289.6 6,264.7 3,039.0 1,858.6 1,653.8 445.3 592.6 1,353.9

 ................................ 2001 7,844.2 256.5 1,054.3 1,248.6 5,284.8 2,776.9 1,611.0 1,441.3 378.3 519.2 1,117.4 

Return on assets (%) ................................... 2005 1.33 1.08 1.24 1.34 1.35 1.27 1.46 1.01 1.65 1.25 1.62

 ................................ 2003 1.38 0.97 1.20 1.35 1.43 1.25 1.38 1.31 1.62 1.38 1.65

 ................................ 2001 1.15 0.93 1.12 1.23 1.15 1.13 0.98 1.02 1.36 1.25 1.50 

Net charge-offs to loans & leases (%) ......... 2005 0.47 0.16 0.18 0.22 0.59 0.81 0.23 0.29 0.54 0.23 0.61

 ................................ 2003 0.78 0.26 0.32 0.52 0.95 1.17 0.56 0.66 0.97 0.38 0.64

 ................................ 2001 

Noncurrent assets plus 

0.73 0.26 0.29 0.72 0.85 0.81 0.69 0.73 0.63 0.38 0.79 

OREO to assets (%) ................................. 2005 0.50 0.71 0.54 0.50 0.49 0.46 0.31 0.54 0.80 0.73 0.58

 ................................ 2003 0.77 0.91 0.73 0.64 0.81 0.84 0.60 0.96 0.74 0.78 0.64

 ................................ 2001 0.81 0.81 0.70 0.75 0.85 0.77 0.84 0.94 0.73 0.79 0.76 

Equity capital ratio (%) ................................. 2005 10.25 12.26 10.26 10.57 10.14 10.63 9.86 9.18 10.67 9.57 12.12

 ................................ 2003 9.13 11.44 10.03 10.48 8.60 8.96 8.83 8.64 10.79 9.64 9.74

 ................................ 2001 8.90 11.45 10.04 9.54 8.40 8.38 9.52 8.61 9.21 9.48 9.28 

* 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 

ALL FDIC-INSURED INSTITUTIONS 9 THIRD QUARTER 2006
FDIC Quarterly Banking Profile 

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

September 30, 2006 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ....................................... 0.81 2.90 0.92 1.08 0.78 0.85 1.67 1.15 1.29 0.71 

Construction and development ..................................... 0.74 0.00 1.65 1.33 0.73 1.03 0.41 0.81 1.10 0.53 

Commercial real estate ................................................. 0.50 0.00 0.63 1.13 0.52 0.37 0.48 1.03 0.94 0.29 

Multifamily residential real estate .................................. 0.35 0.00 0.89 0.75 0.43 0.14 0.12 0.19 0.95 0.23 

Home equity loans ........................................................ 0.60 3.12 0.62 0.49 0.53 0.63 0.33 0.46 0.96 0.64 

Other 1-4 family residential ........................................... 1.05 2.64 1.05 1.73 1.20 0.94 2.34 1.33 1.54 0.91 

Commercial and industrial loans ..................................... 0.60 2.38 0.43 1.44 0.65 0.55 1.17 1.36 1.41 0.39 

Loans to individuals ......................................................... 1.79 2.27 1.93 2.12 1.54 1.18 1.38 1.95 2.07 1.51 

Credit card loans ........................................................... 2.19 2.34 2.06 1.42 2.06 1.82 1.28 3.73 1.62 2.08 

Other loans to individuals ............................................. 1.52 1.65 1.85 2.16 1.47 0.90 1.41 1.75 2.08 1.40 

All other loans and leases (including farm) ...................... 0.42 0.47 0.41 0.56 0.59 0.68 0.05 0.55 0.65 0.19 

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

Percent of Loans Noncurrent** 

0.88 2.25 0.90 1.08 0.80 0.86 1.44 1.24 1.36 0.69 

All real estate loans ......................................................... 0.70 1.84 1.08 0.87 0.65 0.64 0.69 0.74 0.76 0.79 

Construction and development ..................................... 0.54 0.00 1.16 1.23 0.50 0.80 0.15 0.82 0.78 0.59 

Commercial real estate ................................................. 0.59 0.00 0.89 1.05 0.59 0.44 0.55 0.73 1.02 0.46 

Multifamily residential real estate .................................. 0.31 0.00 0.80 0.93 0.36 0.15 0.00 0.07 0.64 0.35 

Home equity loans ........................................................ 0.31 1.58 0.29 0.21 0.27 0.37 0.05 0.06 0.32 0.33 

Other 1-4 family residential ........................................... 0.91 2.21 1.40 0.83 0.96 0.71 0.97 0.80 0.68 1.12 

Commercial and industrial loans ..................................... 0.73 1.59 0.78 1.39 0.70 0.89 1.19 1.11 1.10 0.62 

Loans to individuals ......................................................... 1.17 1.94 1.54 0.75 0.66 0.62 0.77 0.63 0.61 0.58 

Credit card loans ........................................................... 1.88 2.03 1.79 1.30 1.53 1.53 1.11 0.77 1.08 1.72 

Other loans to individuals ............................................. 0.70 1.14 1.38 0.71 0.56 0.22 0.65 0.61 0.59 0.35 

All other loans and leases (including farm) ...................... 0.23 0.10 0.18 0.57 0.32 0.68 0.06 0.19 0.47 0.12 

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

Percent of Loans Charged-off (net, YTD) 

0.73 1.90 0.90 0.86 0.64 0.65 0.77 0.72 0.76 0.65 

All real estate loans ......................................................... 0.06 0.84 0.11 0.04 0.07 0.04 0.07 0.02 0.04 0.04 

Construction and development ..................................... 0.03 0.00 0.22 0.04 0.03 0.05 0.02 -0.02 0.03 0.00 

Commercial real estate ................................................. 0.03 4.81 0.01 0.08 0.04 0.02 -0.01 0.03 0.07 0.01 

Multifamily residential real estate .................................. 0.02 0.00 -0.13 0.01 0.03 0.01 0.00 0.00 0.07 -0.06 

Home equity loans ........................................................ 0.12 1.27 0.14 0.09 0.15 0.09 0.07 -0.02 0.06 0.10 

Other 1-4 family residential ........................................... 0.06 0.38 0.09 0.05 0.10 0.04 0.08 0.03 0.03 0.04 

Commercial and industrial loans ..................................... 0.27 3.06 0.06 0.44 0.28 0.14 2.85 0.06 0.39 0.19 

Loans to individuals ......................................................... 1.99 3.50 2.37 0.55 0.82 1.93 1.32 2.73 0.60 1.12 

Credit card loans ........................................................... 3.51 3.64 3.22 3.73 2.86 5.08 2.46 8.68 2.67 3.30 

Other loans to individuals ............................................. 0.96 2.10 1.84 0.37 0.59 0.64 0.89 0.60 0.52 0.68 

All other loans and leases (including farm) ...................... 0.12 0.00 -0.02 0.00 0.29 0.62 0.24 0.03 0.22 0.10 

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

Loans Outstanding (in billions) 

0.36 3.38 0.59 0.14 0.18 0.14 1.00 0.50 0.16 0.20 

All real estate loans ......................................................... $4,457.3 $2.3 $255.5 $56.2 $2,190.7 $1,153.6 $30.7 $5.9 $46.3 $716.1 

Construction and development ..................................... 541.5 0.0 7.6 5.0 443.9 27.6 0.9 0.5 3.3 52.8 

Commercial real estate ................................................. 881.5 0.0 19.5 15.0 679.0 49.3 2.0 1.7 11.2 103.9 

Multifamily residential real estate .................................. 193.8 0.0 2.1 1.0 121.4 53.5 0.1 0.1 0.8 14.7 

Home equity loans ........................................................ 554.9 1.3 68.4 1.0 207.5 115.0 7.3 0.2 1.7 152.4 

Other 1-4 family residential ........................................... 2,175.6 1.0 113.8 15.6 705.8 907.5 20.3 3.2 26.3 382.1 

Commercial and industrial loans ..................................... 1,188.3 15.9 235.4 14.5 652.6 41.1 7.7 1.2 6.7 213.1 

Loans to individuals ......................................................... 955.1 249.7 197.5 6.9 233.0 58.0 45.3 1.4 8.9 154.4 

Credit card loans ........................................................... 383.1 224.8 77.0 0.4 25.0 17.8 11.8 0.1 0.3 25.9 

Other loans to individuals ............................................. 571.9 24.9 120.6 6.5 208.0 40.3 33.5 1.3 8.5 128.5 

All other loans and leases (including farm) ...................... 570.9 4.0 198.9 24.8 180.4 8.1 1.6 0.8 4.2 148.1 

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

Memo: Other Real Estate Owned (in millions) 

7,171.5 271.9 887.3 102.4 3,256.8 1,260.9 85.3 9.3 66.0 1,231.7 

All other real estate owned ........................................... 5,565.8 -1.4 394.1 134.8 3,022.7 1,176.2 39.8 13.2 111.8 674.6 

Construction and development ..................................... 502.2 0.0 1.0 11.9 418.3 47.1 0.7 0.9 8.1 14.1 

Commercial real estate ................................................. 1,197.0 0.1 3.0 50.7 974.2 66.3 8.0 7.1 44.8 42.7 

Multifamily residential real estate .................................. 274.7 0.0 0.0 4.9 233.7 17.0 0.0 0.0 5.9 13.0 

1-4 family residential ..................................................... 2,535.8 1.4 69.1 37.8 1,140.3 875.0 31.2 4.7 48.2 328.0 

Farmland ......................................................................... 73.2 0.0 0.0 29.2 36.2 0.9 0.0 0.3 4.2 2.3 

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

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

THIRD QUARTER 2006 10 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile 

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

September 30, 2006 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................ 0.81 1.34 0.85 0.60 0.84 0.72 0.69 1.04 0.78 1.00 0.79 

Construction and development ........................... 0.74 1.24 0.89 0.62 0.72 0.94 0.47 1.17 0.87 0.67 0.61 

Commercial real estate ...................................... 0.50 1.03 0.67 0.46 0.39 0.50 0.35 0.69 0.55 0.66 0.36 

Multifamily residential real estate ....................... 0.35 0.97 0.56 0.46 0.25 0.24 0.34 0.89 0.47 0.59 0.16 

Home equity loans .............................................. 0.60 1.00 0.66 0.61 0.59 0.60 0.58 0.63 0.66 0.45 0.54 

Other 1-4 family residential ................................ 1.05 1.79 1.08 0.75 1.08 0.81 0.95 1.38 1.03 1.74 1.03 

Commercial and industrial loans ........................... 0.60 1.45 1.07 0.87 0.48 0.63 0.38 0.61 0.79 0.75 0.76 

Loans to individuals ............................................... 1.79 2.40 1.67 1.58 1.81 1.84 1.51 1.55 2.15 1.40 2.09 

Credit card loans ................................................ 2.19 2.15 2.73 1.76 2.21 1.98 2.28 1.89 2.29 0.83 2.65 

Other loans to individuals ................................... 1.52 2.40 1.57 1.52 1.49 1.70 1.38 1.44 2.03 1.53 1.09 

All other loans and leases (including farm) ........... 0.42 0.61 0.52 0.54 0.40 0.32 0.30 0.67 0.39 0.58 0.34 

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

Percent of Loans Noncurrent** 

0.88 1.36 0.91 0.72 0.89 0.88 0.68 0.97 0.95 0.98 0.96 

All real estate loans ............................................... 0.70 0.88 0.64 0.57 0.74 0.60 0.41 0.99 1.33 0.89 0.62 

Construction and development ........................... 0.54 0.77 0.67 0.51 0.48 0.78 0.29 0.86 0.80 0.49 0.38 

Commercial real estate ...................................... 0.59 0.96 0.67 0.57 0.53 0.66 0.39 0.81 0.71 0.64 0.40 

Multifamily residential real estate ....................... 0.31 0.90 0.49 0.41 0.22 0.20 0.36 0.75 0.48 0.94 0.10 

Home equity loans .............................................. 0.31 0.30 0.29 0.31 0.32 0.24 0.27 0.37 0.43 0.19 0.29 

Other 1-4 family residential ................................ 0.91 0.95 0.65 0.69 0.97 0.55 0.50 1.39 2.59 1.58 0.80 

Commercial and industrial loans ........................... 0.73 1.36 0.99 0.83 0.67 0.79 0.53 0.79 0.74 0.81 0.82 

Loans to individuals ............................................... 1.17 0.91 0.62 0.57 1.27 1.43 0.72 0.75 1.15 0.48 1.67 

Credit card loans ................................................ 1.88 0.93 1.96 1.18 1.92 1.75 1.62 1.56 1.75 0.71 2.36 

Other loans to individuals ................................... 0.70 0.91 0.50 0.36 0.75 1.12 0.58 0.49 0.66 0.43 0.41 

All other loans and leases (including farm) ........... 0.23 0.70 0.51 0.33 0.19 0.15 0.12 0.36 0.33 0.61 0.33 

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

Percent of Loans Charged-off (net, YTD) 

0.73 0.93 0.68 0.60 0.76 0.75 0.43 0.86 1.12 0.83 0.78 

All real estate loans ............................................... 0.06 0.04 0.04 0.04 0.07 0.04 0.04 0.12 0.06 0.06 0.03 

Construction and development ........................... 0.03 0.05 0.04 0.03 0.03 0.02 0.02 0.06 0.04 0.06 0.01 

Commercial real estate ...................................... 0.03 0.04 0.04 0.04 0.03 0.02 0.02 0.08 0.02 0.06 0.00 

Multifamily residential real estate ....................... 0.02 0.07 0.02 0.03 0.01 0.01 0.07 0.05 -0.11 0.04 0.01 

Home equity loans .............................................. 0.12 0.05 0.04 0.11 0.13 0.07 0.10 0.20 0.15 0.14 0.02 

Other 1-4 family residential ................................ 0.06 0.06 0.04 0.04 0.07 0.05 0.04 0.14 0.06 0.05 0.05 

Commercial and industrial loans ........................... 0.27 0.36 0.32 0.39 0.24 0.21 0.18 0.17 0.43 0.36 0.64 

Loans to individuals ............................................... 1.99 0.53 0.94 1.09 2.16 2.41 1.01 1.09 1.96 0.78 3.27 

Credit card loans ................................................ 3.51 1.93 5.43 2.13 3.56 3.11 3.47 2.79 3.33 1.44 4.55 

Other loans to individuals ................................... 0.96 0.51 0.50 0.77 1.04 1.75 0.60 0.53 0.76 0.62 0.81 

All other loans and leases (including farm) ........... 0.12 0.09 0.17 0.25 0.11 0.07 0.18 0.11 0.09 0.40 0.08 

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

Loans Outstanding (in billions) 

0.36 0.14 0.13 0.19 0.43 0.56 0.16 0.24 0.39 0.20 0.56 

All real estate loans ............................................... $4,457.3 $82.1 $691.9 $704.1 $2,979.2 $827.8 $1,221.3 $875.3 $343.6 $273.8 $915.4 

Construction and development ........................... 541.5 10.6 134.1 145.7 251.1 59.7 179.5 111.3 44.4 66.8 79.8 

Commercial real estate ...................................... 881.5 22.7 236.0 217.6 405.1 171.6 228.3 188.5 78.5 83.7 130.9 

Multifamily residential real estate ....................... 193.8 1.9 27.1 44.5 120.3 52.6 24.6 30.9 8.5 6.1 71.2 

Home equity loans .............................................. 554.9 2.8 34.5 47.7 469.8 65.0 181.9 153.6 71.7 18.1 64.5 

Other 1-4 family residential ................................ 2,175.6 34.4 236.0 237.5 1,667.7 434.8 589.3 374.3 123.9 90.3 563.0 

Commercial and industrial loans ........................... 1,188.3 17.6 116.3 147.2 907.1 294.0 277.5 322.7 94.6 69.3 130.2 

Loans to individuals ............................................... 955.1 10.2 51.9 77.1 815.9 329.7 162.6 165.0 86.0 39.8 171.9 

Credit card loans ................................................ 383.1 0.2 4.5 19.4 359.1 163.0 22.9 40.6 38.5 7.4 110.8 

Other loans to individuals ................................... 571.9 10.0 47.5 57.6 456.8 166.8 139.8 124.4 47.4 32.4 61.1 

All other loans and leases (including farm) ........... 570.9 13.6 34.5 35.2 487.7 184.7 147.7 143.2 51.3 17.0 27.0 

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

Memo: Other Real Estate Owned (in millions) 

7,171.5 123.5 894.6 963.5 5,189.9 1,636.3 1,809.2 1,506.2 575.5 399.9 1,244.5 

All other real estate owned .................................... 5,565.8 246.9 1,246.2 702.4 3,370.3 473.9 1,054.9 1,705.0 826.4 672.2 833.2 

Construction and development ........................... 502.2 27.8 229.7 132.7 112.0 28.5 135.0 77.7 77.6 147.8 35.7 

Commercial real estate ...................................... 1,197.0 103.6 518.3 247.7 327.4 123.4 275.9 302.5 161.4 263.7 70.0 

Multifamily residential real estate ....................... 274.7 5.5 44.3 33.7 191.3 7.3 186.6 38.1 10.6 23.3 8.8 

1-4 family residential .......................................... 2,535.8 95.4 407.5 269.6 1,763.3 243.4 427.5 809.1 292.1 180.9 582.8 

Farmland ............................................................ 73.2 13.7 40.6 15.1 3.8 4.8 5.7 9.1 16.9 27.6 9.1 

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

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

ALL FDIC-INSURED INSTITUTIONS 11 THIRD QUARTER 2006
FDIC Quarterly Banking Profile 

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

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd Quarter 

2005 

%Change 

05:3-06:3 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$10 Billion 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ................................. 1,011 991 980 921 900 12.3 78 606 243 84 

Total assets of institutions reporting derivatives ........................... $8,403,543 $8,273,695 $8,024,959 $7,718,445 $7,599,645 10.6 $5,133 $256,803 $760,524 $7,381,083 

Total deposits of institutions reporting derivatives ........................ 5,426,348 5,403,108 5,251,028 5,095,425 4,955,900 9.5 4,001 203,203 555,074 4,664,070 

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

Derivative Contracts by Underlying Risk Exposure 

127,161,464 120,205,366 111,086,848 101,879,496 99,565,086 27.7 272 12,937 147,524 127,000,731 

Interest rate .......................................................................... 103,253,673 98,738,807 92,291,239 84,530,154 82,894,378 24.6 112 12,582 140,894 103,100,086 

Foreign exchange* ............................................................... 12,226,835 12,256,709 11,248,488 9,719,962 9,725,028 25.7 132 73 4,797 12,221,832 

Equity ................................................................................. 2,218,658 1,902,399 1,420,814 1,255,271 1,343,257 65.2 28 272 962 2,217,395 

Commodity & other (excluding credit derivatives) ........................ 1,558,264 738,026 653,859 552,088 508,739 206.3 0 3 576 1,557,686 

Credit ................................................................................ 7,904,034 6,569,425 5,472,449 5,822,021 5,093,684 55.2 0 7 295 7,903,732 

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

Derivative Contracts by Transaction Type 

127,161,464 120,205,366 111,086,848 101,879,496 99,565,086 27.7 272 12,937 147,524 127,000,731 

Swaps ................................................................................ 77,555,315 74,448,925 68,849,645 64,712,262 62,118,974 24.8 32 4,868 67,423 77,482,993 

Futures & forwards ................................................................. 14,482,742 13,788,767 13,044,992 12,056,681 11,928,478 21.4 160 2,137 10,879 14,469,566 

Purchased options ................................................................. 13,356,637 12,367,848 11,579,154 9,412,914 9,789,332 36.4 28 3,397 62,733 13,290,479 

Written options .................................................................... 12,945,845 12,081,020 11,202,371 9,444,637 9,834,105 31.6 52 2,487 5,728 12,937,578 

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

Fair Value of Derivative Contracts 

118,340,539 112,686,559 104,676,161 95,626,494 93,670,888 26.3 272 12,889 146,763 118,180,615 

Interest rate contracts ........................................................... 22,719 21,194 20,308 21,587 22,445 1.2 1 -12 -167 22,897 

Foreign exchange contracts ................................................... 4,144 4,641 4,012 2,619 73 5,576.7 0 0 -21 4,165 

Equity contracts .................................................................... -13,526 -9,364 -10,632 -10,428 -5,131 N/M 2 4 43 -13,575 

Commodity & other (excluding credit derivatives) ........................ 2,562 2,825 2,769 2,098 3,856 -33.6 0 0 1 2,561 

Credit derivatives as guarantor ................................................ 14,671 7,311 10,228 -2,458 -368 N/M 0 0 0 14,671 

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

Derivative Contracts by Maturity** 

-14,819 -8,992 -9,223 2,430 1,876 N/M 0 0 0 -14,820 

Interest rate contracts ........................................... < 1 year 26,615,320 22,679,699 20,701,310 18,483,390 16,642,441 59.9 27 2,287 18,744 26,594,261

 ............................ 1-5 years 30,872,250 31,161,557 29,322,655 27,683,385 27,693,826 11.5 27 5,813 27,723 30,838,686

 ............................ > 5 years 22,518,226 22,835,007 21,145,459 19,825,199 18,864,623 19.4 6 1,756 30,747 22,485,717 

Foreign exchange contracts ................................... < 1 year 6,687,566 7,473,995 6,279,115 5,686,683 5,437,648 23.0 132 15 3,043 6,684,375

 ............................ 1-5 years 1,573,062 1,240,609 1,455,181 1,354,030 1,355,699 16.0 0 15 19 1,573,029

 ............................ > 5 years 767,427 518,618 721,164 687,179 687,274 11.7 0 2 10 767,414 

Equity contracts ................................................... < 1 year 333,262 334,732 288,762 321,031 342,345 -2.7 4 36 191 333,030

 ............................ 1-5 years 296,151 219,638 200,405 1,427,663 1,097,572 -73.0 11 92 313 295,735

 ............................ > 5 years 53,988 44,457 34,279 383,131 268,326 -79.9 0 0 143 53,845 

Commodity & other contracts .................................. < 1 year 496,634 230,213 214,997 183,128 166,939 197.5 0 0 146 496,487

 ............................ 1-5 years 274,378 177,869 149,315 734,844 640,807 -57.2 0 3 243 274,132

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

Risk-Based Capital: Credit Equivalent Amount 

14,486 10,426 7,324 176,787 163,351 -91.1 0 0 0 14,486 

Total current exposure to tier 1 capital (%) ................................. 28.6 33.6 32.8 34.2 38.6 0.7 0.3 1.5 33.3 

Total potential future exposure to tier 1 capital (%) ..................... 99.0 90.2 87.7 80.4 73.1 0.4 0.2 1.1 115.7 

Total exposure (credit equivalent amount) to tier 1 capital (%) ......... 127.7 123.9 120.5 114.6 111.7 1.1 0.5 2.6 149.0 

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

HELD FOR TRADING 

-19.0 -3.0 4.0 47.0 38.0 N/M 0.0 0.0 0.0 -20.0 

Number of institutions reporting derivatives ................................. 148 149 148 140 129 14.7 6 40 46 56 

Total assets of institutions reporting derivatives ........................... 6,926,105 6,806,582 6,585,433 6,346,826 6,095,883 13.6 360 18,034 222,459 6,685,253 

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

Derivative Contracts by Underlying Risk Exposure 

4,436,047 4,399,031 4,260,458 4,147,936 3,924,681 13.0 280 14,380 154,389 4,266,997 

Interest rate .......................................................................... 100,299,899 96,221,190 89,810,085 82,020,712 80,439,786 24.7 11 141 34,867 100,264,879 

Foreign exchange ................................................................. 11,207,259 11,206,773 10,214,072 9,194,268 8,822,175 27.0 0 12 3,403 11,203,844 

Equity ................................................................................ 2,214,881 1,898,493 1,416,918 1,251,184 1,339,268 65.4 0 15 428 2,214,438 

Commodity & other .............................................................. 1,558,095 737,910 649,704 547,896 505,489 208.2 0 0 540 1,557,555 

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

Trading Revenues: Cash & Derivative Instruments 

115,280,133 110,064,365 102,090,779 93,014,060 91,106,718 26.5 11 168 39,238 115,240,716 

Interest rate .......................................................................... 545 1,665 1,242 848 1,631 -66.6 0 0 8 537 

Foreign exchange ................................................................. 1,355 2,672 2,311 1,766 1,454 -6.8 0 0 3 1,352 

Equity ................................................................................ 1,827 100 1,801 844 1,243 47.0 0 0 1 1,826 

Commodity & other (including credit derivatives) ........................ 789 272 313 -292 507 55.6 0 0 1 788 

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

Share of Revenue 

4,516 4,710 5,666 3,166 4,835 -6.6 0 0 14 4,503 

Trading revenues to gross revenues (%) .................................... 3.4 3.6 4.6 2.8 4.4 0.0 0.0 0.3 3.5 

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

HELD FOR PURPOSES OTHER THAN TRADING 

20.7 21.6 26.8 16.6 25.4 0.0 0.2 2.0 21.4 

Number of institutions reporting derivatives ................................. 930 919 904 856 838 11.0 71 563 216 80 

Total assets of institutions reporting derivatives ........................... 8,218,269 8,121,057 7,862,458 7,529,667 7,411,950 10.9 4,711 238,259 674,852 7,300,447 

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

Derivative Contracts by Underlying Risk Exposure 

5,300,012 5,298,777 5,138,104 4,959,713 4,821,531 9.9 3,677 187,986 493,385 4,614,965 

Interest rate .......................................................................... 2,953,775 2,517,617 2,481,153 2,509,443 2,454,592 20.3 101 12,440 106,026 2,835,208 

Foreign exchange ................................................................. 102,685 100,555 96,178 94,712 102,338 0.3 132 20 928 101,604 

Equity ................................................................................ 3,777 3,906 3,896 4,087 3,989 -5.3 28 258 534 2,958 

Commodity & other .............................................................. 169 116 4,155 4,192 3,250 N/M 0 3 36 130 

Total notional amount ........................................................... 3,060,406 2,622,194 2,585,383 2,612,434 2,564,170 19.4 261 12,721 107,525 2,939,899 

All line items are reported on a quarterly basis.
 

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

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

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

THIRD QUARTER 2006 12 ALL FDIC-INSURED INSTITUTIONS
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FDIC Quarterly Banking Profile 

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

(dollar figures in millions) 

3rd 

Quarter 

2006 

2nd 

Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd 

Quarter 

2005 

%Change 

05:3-06:3 

Asset Size Distribution 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than 

$10 Billion 

Less than 

$100 Million 

Assets Securitized and Sold with Servicing Retained or with Recourse 

or Other Seller-Provided Credit Enhancements 

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

Outstanding Principal Balance by Asset Type 

123 122 118 118 113 8.8 12 47 21 43 

1-4 family residential loans ....................................................................................... $453,907 $417,800 $392,412 $534,584 $480,870 -5.6 $58 $347 $3,262 $450,241 

Home equity loans ................................................................................................. 9,257 9,632 10,768 11,486 12,654 -26.8 0 0 546 8,711 

Credit card receivables ........................................................................................ 422,983 403,434 402,214 402,939 401,782 5.3 0 6,096 5,375 411,511 

Auto loans ......................................................................................................... 16,781 16,665 16,304 17,997 10,873 54.3 0 0 472 16,309 

Other consumer loans ........................................................................................ 25,753 24,414 22,165 22,065 18,894 36.3 0 3 0 25,750 

Commercial and industrial loans .............................................................................. 8,404 10,582 10,703 8,534 8,267 1.7 0 31 3,456 4,917 

All other loans, leases, and other assets* .................................................................. 126,415 121,506 109,800 118,561 90,116 40.3 1 115 946 125,353 

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

Maximum Credit Exposure by Asset Type 

1,063,499 1,004,034 964,366 1,116,167 1,023,456 3.9 59 6,592 14,057 1,042,792 

1-4 family residential loans ....................................................................................... 4,619 4,336 4,160 3,818 3,733 23.7 1 2 20 4,596 

Home equity loans ................................................................................................. 2,358 2,358 2,387 2,410 2,439 -3.3 0 0 19 2,339 

Credit card receivables ........................................................................................ 25,084 24,495 23,214 23,845 23,756 5.6 0 406 171 24,508 

Auto loans ........................................................................................................... 813 806 798 861 594 36.9 0 0 19 794 

Other consumer loans ........................................................................................... 1,653 1,619 1,612 1,826 1,600 3.3 0 0 0 1,653 

Commercial and industrial loans .............................................................................. 407 455 464 470 557 -26.9 0 0 85 323 

All other loans, leases, and other assets ................................................................... 761 727 777 1,017 2,970 -74.4 1 27 43 690 

Total credit exposure ................................................................................................ 35,695 34,796 33,411 34,247 35,649 0.1 2 435 357 34,902 

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

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

7,323 9,359 10,867 11,448 7,719 -5.1 0 0 0 7,323 

1-4 family residential loans ....................................................................................... 2.4 2.1 1.8 2.4 2.3 0.0 0.0 1.5 2.5 

Home equity loans ................................................................................................. 0.7 0.6 0.5 0.5 0.4 0.0 0.0 1.6 0.7 

Credit card receivables .......................................................................................... 2.0 1.9 2.0 1.9 2.2 0.0 2.9 1.0 2.0 

Auto loans ............................................................................................................ 1.3 1.1 1.1 1.0 1.1 0.0 0.0 0.8 1.3 

Other consumer loans ........................................................................................... 3.0 2.6 2.5 2.7 2.4 0.0 0.0 0.0 3.0 

Commercial and industrial loans .............................................................................. 1.2 1.2 1.2 1.7 2.4 0.0 0.0 1.5 0.9 

All other loans, leases, and other assets ..................................................................... 0.2 0.1 0.1 0.5 0.2 0.0 0.0 0.1 0.2 

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

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

2.0 1.7 1.7 2.0 2.0 0.0 2.7 1.2 2.0 

1-4 family residential loans ....................................................................................... 0.9 1.1 1.1 1.3 1.1 0.0 0.0 0.8 0.9 

Home equity loans ................................................................................................. 0.3 0.3 0.3 0.3 0.2 0.0 0.0 0.9 0.3 

Credit card receivables .......................................................................................... 1.6 1.6 1.6 1.4 1.6 0.0 1.7 0.7 1.6 

Auto loans ........................................................................................................... 0.2 0.2 0.2 0.1 0.2 0.0 0.0 0.1 0.2 

Other consumer loans ........................................................................................... 2.1 2.1 2.1 1.9 2.0 0.0 0.0 0.0 2.1 

Commercial and industrial loans .............................................................................. 0.8 0.9 0.9 1.0 1.2 0.0 0.0 1.3 0.4 

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

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

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

1.1 1.2 1.2 1.2 1.2 0.0 1.6 0.8 1.1 

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

Home equity loans ................................................................................................. 0.2 0.1 0.1 0.2 0.1 0.0 0.0 0.8 0.1 

Credit card receivables .......................................................................................... 2.9 1.9 0.9 5.8 4.4 0.0 2.6 1.6 2.9 

Auto loans ............................................................................................................ 0.5 0.3 0.2 0.4 0.5 0.0 0.0 0.3 0.5 

Other consumer loans ........................................................................................... 1.2 0.7 0.5 3.0 1.9 0.0 0.0 0.0 1.2 

Commercial and industrial loans .............................................................................. 1.2 0.8 0.4 3.0 2.1 0.0 0.0 3.0 -0.1 

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

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

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

1.2 0.8 0.4 2.2 1.8 0.0 2.4 1.4 1.2 

Home equity loans ................................................................................................. 728 650 586 389 791 -8.0 0 0 55 674 

Credit card receivables .......................................................................................... 68,885 82,533 72,954 98,534 96,371 -28.5 0 313 698 67,874 

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

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

2,891 3,284 2,523 2,885 2,886 0.2 0 0 987 1,904 

Home equity loans ................................................................................................. 11 12 12 55 52 -78.8 0 0 0 11 

Credit card receivables .......................................................................................... 184 137 72 93 82 124.4 0 19 165 0 

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

Assets Sold with Recourse and Not Securitized 

0 0 0 0 0 0.0 0 0 0 0 

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

Outstanding Principal Balance by Asset Type 

705 696 689 672 642 9.8 159 413 89 44 

1-4 family residential loans ....................................................................................... 55,939 54,313 53,866 44,815 41,008 36.4 875 6,147 2,154 46,763 

Home equity, credit card receivables, auto, and other consumer loans ............................ 115 124 902 668 594 -80.6 3 32 12 68 

Commercial and industrial loans .............................................................................. 6,589 6,165 6,092 5,629 5,216 26.3 19 54 118 6,399 

All other loans, leases, and other assets ..................................................................... 7,403 12,998 16,607 16,159 15,558 -52.4 2 34 319 7,048 

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

Maximum Credit Exposure by Asset Type 

70,046 73,600 77,467 67,271 62,376 12.3 899 6,266 2,603 60,278 

1-4 family residential loans ....................................................................................... 13,635 12,167 11,987 15,410 10,938 24.7 39 1,276 1,282 11,037 

Home equity, credit card receivables, auto, and other consumer loans ............................ 47 64 485 169 79 -40.5 3 5 1 38 

Commercial and industrial loans .............................................................................. 4,287 4,253 4,112 3,693 3,373 27.1 19 46 118 4,104 

All other loans, leases, and other assets ................................................................... 2,502 2,161 2,678 2,701 2,655 -5.8 2 14 239 2,247 

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

Support for Securitization Facilities Sponsored by Other Institutions 

20,471 18,644 19,262 21,973 17,045 20.1 63 1,341 1,640 17,427 

Number of institutions reporting securitization facilities sponsored by others ........................ 48 46 45 48 43 11.6 22 13 3 10 

Total credit exposure ................................................................................................ 958 853 897 751 1,128 -15.1 7 123 39 788 

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

Other 

5,066 4,251 4,651 3,459 3,762 34.7 0 0 0 5,066 

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

Asset-backed commercial paper conduits 

3,072,163 2,836,997 2,647,319 2,639,013 2,531,058 21.4 7,266 71,324 109,074 2,884,500 

Credit exposure to conduits sponsored by institutions and others .................................... 19,244 19,293 17,503 19,015 21,075 -8.7 2 66 0 19,176 

Unused liquidity commitments to conduits sponsored by institutions and others .................. 294,329 286,363 288,086 244,263 240,716 22.3 0 0 0 294,329 

Net servicing income (for the quarter) .......................................................................... 3,382 4,262 4,693 4,406 5,038 -32.9 36 171 213 2,962 

Net securitization income (for the quarter) ..................................................................... 6,832 6,293 6,753 4,776 5,917 15.5 0 193 127 6,511 

Total credit exposure to Tier 1 capital (%)*** ................................................................. 6.0 5.9 6.0 6.6 6.3 0.30 1.50 1.50 8.00 

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

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

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

ALL FDIC-INSURED INSTITUTIONS 13 THIRD QUARTER 2006
FDIC Quarterly Banking Profile 

Insurance Fund Indicators 

■	 Insured Deposits Grow Faster During the Third Quarter than During the 

Previous Quarter 

■ DIF Growth Does Not Fully Offset the Increase in Insured Deposits 

■ The Reserve Ratio Declines to 1.22 Percent in the Third Quarter from 

1.23 Percent in the Second Quarter 

Total assets of the nation’s 8,743 FDIC-insured institutions increased by $233.7 billion (2.0 percent) during the third quarter of 2006. Deposits increased by 

$73.7 billion during the period, funding 31.6 percent 

of the growth, significantly less than the 59.3 percent of prior quarter growth funded by deposits. 

Deposits in domestic offices grew by $37.9 billion 

(0.6 percent), while deposits in foreign offices 

increased by $35.8 billion (3.4 percent). Interestbearing deposits increased by $120.7 billion (1.9 percent), while noninterest-bearing deposits decreased 

by $47.0 billion (3.7 percent). 

Insured deposits grew by $56 billion (1.4 percent), 

which was moderately higher than the prior quarter’s 

0.9 percent growth rate. During the third quarter, 

banks showed a preference for funding new assets 

with insured deposits over money borrowed from the 

Federal Home Loan Bank (FHLB) system. For the 

4,661 Call report filers that had FHLB advances as of 

June 30, 2006, assets increased by 2.43 percent, 

insured deposits increased by 3.09 percent, while 

FHLB borrowings decreased by 1.58 percent. On 

September 30, 2006, these institutions held $2.82 

trillion in insured deposits and $324 billion in FHLB 

advances. 

During the third quarter, insured deposits increased 

at 4,859 institutions (56 percent), decreased at 3,787 

institutions (44 percent), and remained unchanged 

at 49 institutions. Sweeps of brokerage funds into 

FDIC insured deposit accounts decreased by $5.5 billion during the quarter to $99.7 billion. 

The Deposit Insurance Fund (DIF) increased by 0.9 

percent ($428 million) during the third quarter to 

$49,992 million (unaudited). The DIF received 

$396 million (net of expenses) from interest on securities and other revenue during the quarter, and $50 

million from reducing reserves previously set aside 

for insurance losses. A decline in the market value 

of available-for-sale securities reduced the fund by 

$18 million. 

The strong quarterly growth of the DIF was not 

enough to offset the increase in insured deposits, 

which resulted in a reduction in the DIF reserve 

ratio to 1.22 percent from the second quarter 2006 

level of 1.23 percent. 

No insured institutions failed during the third quarter of 2006, making this the ninth consecutive quarter without a failure. 

THIRD QUARTER 2006	 14 ALL FDIC-INSURED INSTITUTIONS
 

 

 

FDIC Quarterly Banking Profile 

TABLE I-B. Insurance Fund Balances and Selected Indicators 

(dollar figures in millions) Deposit Insurance Fund 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd Quarter 

2005 

2nd Quarter 

2005 

1st Quarter 

2005 

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

Changes in Fund Balances: 

$49,564 $49,193 $48,597 $48,373 $48,023 $47,617 $47,507 

Assessments earned.......................................... 10 7 5 13 20 14 14 

Interest earned on investment securities.................. 622 665 478 675 536 657 474 

Operating expenses............................................. 237 242 224 252 227 254 233 

Provision for insurance losses.............................. -50 -6 -45 -19 -65 -57 -19 

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

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

1 12 349 4 3 4 3 

securities......................................................... -18 -77 -57 -235 -47 -72 -167 

Total fund balance change.................................... 428 371 596 224 350 406 110 

Ending Fund Balance*....................................... 49,992 49,564 49,193 48,597 48,373 48,023 47,617

 Percent change from four quarters earlier............ 3.35 3.21 3.31 2.29 2.94 3.23 2.27 

Reserve Ratio (%)............................................. 1.22 1.23 1.23 1.25 1.26 1.28 1.29 

Estimated Insured Deposits .............................. 4,094,765 4,038,670 3,890,911 4,000,515 3,830,907 3,757,662 3,688,511

 Percent change from four quarters earlier............ 6.89 7.48 8.46 7.42 7.63 6.39 5.40 

Assessment Base............................................. 6,439,416 6,386,257 6,262,490 6,168,146 6,030,969 5,872,861 5,793,556

 Percent change from four quarters earlier............ 6.77 8.74 8.09 8.83 9.43 8.35 9.19 

Number of institutions reporting........................ 8,755 8,790 8,803 8,845 8,870 8,881 8,943 

DIF Reserve Ratio* 

Percent of Insured Deposits 

1.29 

1.30 

1.31 

1.34 

1.33 1.33 

1.321.32 

1.31 

1.29 

1.28 

1.26 

1.25 

1.231.23 

1.22 

1.16 

1.20 

1.24 

1.28 

1.32 

1.36 

12/02 6/03 12/03 6/04 12/04 6/05 12/05 6/06 

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

Deposit Insurance Fund Balance and Insured Deposits* 

($Millions) DIF-Insured 

DIF Balance Deposits 

12/02 43,797 3,383,679 

3/03 44,288 3,399,215 

6/03 44,883 3,438,358 

9/03 45,648 3,414,317 

12/03 46,022 3,452,503 

3/04 46,558 3,499,469 

6/04 46,521 3,531,806 

9/04 46,990 3,559,489 

12/04 47,507 3,622,058 

3/05 47,617 3,688,511 

6/05 48,023 3,757,662 

9/05 48,373 3,830,907 

12/05 48,597 3,890,911 

3/06 49,193 4,000,515 

6/06 49,564 4,038,670 

9/06 49,992 4,094,765 

(dollar figures in millions) 2006*** 2005*** 2005 2004 2003 2002 2001 

Problem Institutions

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

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

Failed/Assisted Institutions

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

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

47 

$3,983 

0 

$0 

68

$20,865 

0 

$0 

52 

$6,607 

0

$0 

80 

$28,250 

4 

$166 

116 

$29,917 

3 

$1,097 

136 

$38,927 

11 

$2,558 

114

$39,805 

4 

$2,254 

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

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

*** Through September 30.
 

ALL FDIC-INSURED INSTITUTIONS 15 THIRD QUARTER 2006
FDIC Quarterly Banking Profile FDIC Quarterly Banking Profile 

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

(dollar figures in millions) 

September 30, 2006 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

FDIC-Insured Commercial Banks ..................................................................... 7,450 9,765,433 5,322,921 3,204,766 

FDIC-Supervised ....................................................................................... 4,796 1,816,469 1,332,957 890,710 

OCC-Supervised ........................................................................................ 1,758 6,567,704 3,174,352 1,803,657 

Federal Reserve-Supervised ......................................................................... ... 896 1,381,259 815,612 510,399 

FDIC-Insured Savings Institutions ..................................................................... 1,293 1,992,251 1,151,763 888,590

 OTS-Supervised Savings Institutions .............................................................. ... 852 1,686,023 935,964 723,012

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

Total Commercial Banks and 

441 306,228 215,799 165,578 

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

Other FDIC-Insured Institutions 

8,743 11,757,683 6,474,684 4,093,356 

U.S. Branches of Foreign Banks ** ................................................................... 12 16,295 10,320 1,409 

Total FDIC-Insured Institutions ......................................................................... ... 8,755 11,773,978 6,485,004 4,094,765 

* Excludes $1,104 billion in foreign office deposits, which are uninsured. 

** June 30, 2006 amounts. September 30, 2006 data is not yet available. 

TABLE IV-B. Assessment Base Distribution and Rate Schedules 

DIF Assessment Base Distribution, Assessable Deposits in Billions as of September 30, 2006 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2006 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

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

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

2. Adequately capitalized

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

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

3. Undercapitalized

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

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

8,324 

$6,338 

39 

$11 

2 

$2 

95.1% 

98.4% 

0.4% 

0.2% 

0.0% 

0.0% 

345 

$84 

3 

$0 

0 

$0 

3.9% 

1.3% 

0.0% 

0.0% 

0.0% 

0.0% 

38 

$3 

1 

$0 

3 

$0 

0.4%

0.0% 

0.0%

0.0% 

0.0%

0.0% 

Note: Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined by on-site examinations. 

Assessment Rate Schedule, Second Semiannual 2006 Assessment Period 

Cents per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized ............................................. 

2. Adequately capitalized .................................... 

3. Undercapitalized ............................................. 

0 

3 

10 

3 

10 

24 

17 

24 

27 

THIRD QUARTER 2006 16 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile 

Notes To Users 

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance Corporation (FDIC). These notes are an integral part of this publication 

and provide information regarding the comparability of source data 

and reporting differences over time. 

Tables I-A through VII-A. 

The information presented in Tables I-A through V-A of the FDIC 

Quarterly Banking Profile is aggregated for all FDIC-insured Institutions, both commercial banks and savings institutions. Tables VI-A 

(Derivatives) and VII-A (Servicing, Securitization, and Asset Sales 

Activities) aggregate information only for insured commercial banks 

and state-chartered savings banks that file quarterly Call Reports. 

Some tables are arrayed by groups of FDIC-insured institutions based 

on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios and structural changes, as well as past due, noncurrent and 

charge-off information for loans outstanding and other assets. 

Tables I-B through IV-B. 

A separate set of tables (Tables I-B through IV-B) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed/assisted institutions, estimated FDIC-insured 

deposits and assessments. Depository institutions that are not insured 

by the FDIC through the DIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered in foreign 

countries and non-deposit trust companies are not included unless 

otherwise indicated. Efforts are made to obtain financial reports for all 

active institutions. However, in some cases, final financial reports are 

not available for institutions that have closed or converted their charters. 

DATA SOURCES 

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination Council (FFIEC) Call Reports and the OTS Thrift Financial Reports submitted by all FDIC-insured depository institutions. This information is 

stored on and retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial Reports to 

provide closer conformance with the reporting and accounting 

requirements of the FFIEC Call Reports. Parent institutions are 

required to file consolidated reports, while their subsidiary financial 

institutions are still required to file separate reports. Data from subsidiary institution reports are included in the Quarterly Banking Profile 

tables, which can lead to double-counting. No adjustments are made 

for any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance ratios 

represent average amounts for the period (beginning-of-period 

amount plus end-of-period amount plus any interim periods, divided 

by the total number of periods). For “pooling-of-interest” mergers, the 

assets of the acquired institution(s) are included in average assets 

since the year-to-date income includes the results of all merged institutions. No adjustments are made for “purchase accounting” mergers. 

Growth rates represent the percentage change over a 12-month period in totals for institutions in the base period to totals for institutions 

in the current period. 

All data are collected and presented based on the location of each 

reporting institution's main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home state. 

In addition, institutions may relocate across state lines or change their 

charters, resulting in an inter-regional or inter-industry migration, 

e.g., institutions can move their home offices between regions, and 

savings institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. 

ACCOUNTING CHANGES 

Purchased Impaired Loans and Debt Securities – Statement of Position 03­

3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. 

The SOP applies to loans and debt securities acquired in fiscal years 

beginning after December 15, 2004. In general, this Statement of 

Position applies to “purchased impaired loans and debt securities,” i.e., 

loans and debt securities that a bank has purchased, including those 

acquired in a purchase business combination, when it is probable, at 

the purchase date, that the bank will be unable to collect all contractually required payments receivable. Banks must follow Statement of 

Position 03-3 for Call Report purposes. The SOP does not apply to 

the loans that a bank has originated, prohibits “carrying over” or creation of valuation allowances in the initial accounting and any subsequent valuation allowances reflect only those losses incurred by the 

investor after acquisition. 

GNMA Buy-back Option – If an issuer of GNMA securities has the 

option to buy back the loans that collateralize the GNMA securities, 

when certain delinquency criteria are met, FASB Statement No. 140 

requires that loans with this buy-back option must be brought back 

on the issuer's books as assets. The rebooking of GNMA loans is 

required regardless of whether the issuer intends to exercise the buyback option. The banking agencies clarified in May 2005, that all 

GNMA loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms. 

FASB Interpretation No. 45 – In November 2002, the FASB issued Interpretation No. 45, Guarantor’s Accounting and Disclosure Requirements 

for Guarantees, Including Indirect Guarantees of Indebtedness of Others. 

This interpretation clarifies that a guarantor is required to recognize, 

at the inception of a guarantee (financial standby letters of credit, 

performance standby letters of credit), a liability for the fair value of 

the obligation undertaken in issuing the guarantee. Banks apply the 

initial recognition and measurement provisions of Interpretation No. 

45 on a prospective basis to guarantees issued or modified after 

December 31, 2002, irrespective of the bank’s fiscal year end. A 

bank’s previous accounting for guarantees issued prior to January 1, 

2003, is not revised. 

FASB Interpretation No. 46 – The FASB issued Interpretation No. 46, 

Consolidation of Variable Interest Entities, in January 2003 and revised it 

in December 2003. Generally, banks with variable interests in variable interest entities created after December 31, 2003, must consolidate them. The timing of consolidation varies with certain situations 

with application as late as 2005. The assets and liabilities of a consolidated variable interest entity are reported on a line-by-line basis 

according to the asset and liability categories shown on the bank’s 

balance sheet, as well as related income items. Most small banks are 

unlikely to have any “variable interests” in variable interest entities. 

FASB Statement No. 123 (Revised 2004) and Share-Based Payments 

– requires all entities to recognize compensation expense in an 

amount equal to the fair value of share-based payments, e.g., stock 

options and restricted stock, granted to employees. As of January 

2006 all banks must adopt FAS 123(R). The compensation cost is 

typically recognized over the vesting period with a corresponding 

credit to equity. The recording of the compensation cost also gives 

rise to a deferred tax asset. 

Goodwill and intangible assets – FAS 141 terminates the use of pooling-of-interest accounting for business combinations after 2001 and 

requires purchase accounting. Under FAS 142 amortization of goodwill is eliminated. Only intangible assets other than goodwill are 

amortized each quarter. In addition companies are required to test for 

impairment of both goodwill and other intangibles once each fiscal 

year. The year 2002, the first fiscal year affected by this accounting 

change, has been designated a transitional year and the amount of 

initial impairments are to be recorded as extraordinary losses on a 

“net of tax” basis (and not as noninterest expense). Subsequent 

annual review of intangibles and goodwill impairment may require 

additional noninterest expense recognition. FASB Statement No. 

147 clarifies that acquisitions of financial institutions (except transactions between two or more mutual enterprises), including branch 

acquisitions that meet the definition of a business combination, 

should be accounted for by the purchase method under FASB Statement No. 141. This accounting standard includes transition provisions that apply to unidentifiable intangible assets previously 

accounted for in accordance with FASB Statement No. 72. If the 

ALL FDIC-INSURED INSTITUTIONS 17 THIRD QUARTER 2006
FDIC Quarterly Banking Profile 

transaction (such as a branch acquisition) in which an unidentifiable 

intangible asset arose does not meet the definition of a business combination, this intangible asset is not be reported as “Goodwill” on the 

Call Report balance sheet. Rather, this unidentifiable intangible asset 

is reported as “Other intangible assets,” and must continue to be 

amortized and the amortization expense should be reported in the 

Call Report income statement. 

FASB Statement No. 133 Accounting for Derivative Instruments and Hedging Activities – All banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may 

be specifically designated as a “fair value hedge,” a “cash flow hedge,” 

or a hedge of a foreign currency exposure. The accounting for 

changes in the value of a derivative (gains and losses) depends on the 

intended use of the derivative, its resulting designation, and the effectiveness of the hedge. Derivatives held for purposes other than trading are reported as “other assets” (positive fair values) or “other 

liabilities” (negative fair values). For a fair value hedge, the gain or 

loss is recognized in earnings and “effectively” offsets loss or gain on 

the hedged item attributable to the risk being hedged. Any ineffectiveness of the hedge could result in a net gain or loss on the income 

statement. Accumulated net gains (losses) on cash flow hedges are 

recorded on the balance sheet as “accumulated other comprehensive 

income” and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of 

the derivative changes. FASB Statement No. 149, Amendment of 

Statement 133 on Derivative Instruments and Hedging Activities 

provides guidance on the circumstances in which a loan commitment 

must be accounted for as derivative. Under Statement No. 149, loan 

commitments that relate to the origination of mortgage loans that will 

be held for sale, commonly referred to as interest rate lock commitments, must be accounted for as derivatives on the balance sheet by 

the issuer of the commitment. 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository institutions, 

premises, fixed assets, direct investments in real estate, investment in 

unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities 

purchased with agreements to resell, fair market value of derivatives, 

and other assets. 

All other liabilities – bank's liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities. 

Assessment base distribution – assessable deposits consist of deposits in 

banks’ domestic offices with certain adjustments. Each institution's 

assessment depends on its assigned risk-based capital category and 

supervisory risk subgroup: 

Total Tier 1
 

Risk-Based Risk-Based Tier 1 Tangible
 

(Percent) Capital * Capital * Leverage Equity
 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

undercapitalized <6 or <3 or <3 and >2 

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For the purpose of DIF assessments, risk-based assessment rules combine the three lowest capital rating categories into a single “undercapitalized” group. Supervisory risk subgroup assignments are based on 

supervisory ratings. Generally, the strongest institutions (those rated 1 

or 2) are in subgroup A, those rated 3 are in subgroup B, and those 

rated 4 or 5 are in subgroup C. 

Assets securitized and sold – total outstanding principal balance of 

assets securitized and sold with servicing retained or other sellerprovided credit enhancements. 

Construction and development loans – includes loans for all property 

types under construction, as well as loans for land acquisition and 

development. 

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, less 

goodwill and other ineligible intangible assets. The amount of eligible 

intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations. 

Cost of funding earning assets – total interest expense paid on deposits 

and other borrowed money as a percentage of average earning assets. 

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance. 

Deposit Insurance Fund (DIF) – The Bank (BIF) and Savings Association (SAIF) Insurance Funds were merged in 2006 by the Federal 

Deposit Insurance Reform Act to form the DIF. 

Derivatives notional amount – The notional or contractual amounts of 

derivatives represent the level of involvement in the types of derivatives transactions and are not a quantification of market risk or credit 

risk. Notional amounts represent the amounts used to calculate contractual cash flows to be exchanged. 

Derivatives credit equivalent amount – the fair value of the derivative 

plus an additional amount for potential future credit exposure based 

on the notional amount, the remaining maturity and type of the 

contract. 

Derivatives transaction types: 

Futures and forward contracts – contracts in which the buyer agrees to purchase and the seller agrees to sell, at a specified future date,

a specific quantity of an underlying variable or index at a specified price or yield. These contracts exist for a variety of variables

or indices, (traditional agricultural or physical commodities, as

well as currencies and interest rates). Futures contracts are standardized and are traded on organized exchanges which set limits

on counterparty credit exposure. Forward contracts do not have

standardized terms and are traded over the counter. 

Option contracts – contracts in which the buyer acquires the right to buy from or sell to another party some specified amount of an

underlying variable or index at a stated price (strike price) during

a period or on a specified future date, in return for compensation

(such as a fee or premium). The seller is obligated to purchase or

sell the variable or index at the discretion of the buyer of the contract. 

Swaps – obligations between two parties to exchange a series of cash flows at periodic intervals (settlement dates), for a specified

period. The cash flows of a swap are either fixed, or determined

for each settlement date by multiplying the quantity (notional

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged. 

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk and operational risk, as well as, interest rate risk. 

Domestic deposits to total assets – total domestic office deposits as a percent of total assets on a consolidated basis. 

Earning assets – all loans and other investments that earn interest or 

dividend income. 

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that are 

absorbed by overhead expenses, so that a lower value indicates greater 

efficiency. 

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Prior to June 

30, 2000 the uninsured estimate is calculated as the sum of the excess 

amounts in accounts over $100,000. Beginning June 30, 2000 the 

amount of estimated uninsured deposits is adjusted to consider a 

financial institution's own estimate of uninsured deposits when such 

an estimate is reported. 

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 instituTHIRD QUARTER 2006 18 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile 

tion. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives some insurance funds in order to continue 

operating. 

FHLB advances – all borrowings by FDIC insured institutions from the 

Federal Home Loan Bank System (FHLB), as reported by Call Report 

filers and by TFR filers. 

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired. 

Loans secured by real estate – includes home equity loans, junior liens 

secured by 1-4 family residential properties and all other loans secured 

by real estate. 

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans. 

Long-term assets (5+ years) – loans and debt securities with remaining 

maturities or repricing intervals of over five years. 

Maximum credit exposure – the maximum contractual credit exposure 

remaining under recourse arrangements and other seller-provided 

credit enhancements provided by the reporting bank to securitizations. 

Mortgage-backed securities – certificates of participation in pools of residential mortgages and collateralized mortgage obligations issued or 

guaranteed by government-sponsored or private enterprises. Also, see 

“Securities”, below. 

Net charge-offs – total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on 

loans and leases previously charged off. 

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt. 

Net loans to total assets – loans and lease financing receivables, net of 

unearned income, allowance and reserves, as a percent of total assets 

on a consolidated basis. 

Net operating income – income excluding discretionary transactions 

such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses). 

Noncurrent assets – the sum of loans, leases, debt securities and other 

assets that are 90 days or more past due, or in nonaccrual status. 

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting – the number of institutions that actually filed a financial report. 

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation 

losses on assets held in trading accounts. 

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that file a 

Thrift Financial Report (TFR), the valuation allowance subtracted 

also includes allowances for other repossessed assets. Also, for TFR 

filers the components of other real estate owned are reported gross of 

valuation allowances. 

Percent of institutions with earnings gains – the percent of institutions 

that increased their net income (or decreased their losses) compared 

to the same period a year earlier. 

“Problem” institutions – federal regulators assign a composite rating to 

each financial institution, based upon an evaluation of financial and 

operational criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory concern. “Problem” institutions are those 

institutions with financial, operational, or managerial weaknesses that 

threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either a “4” or 

“5”. For all insured commercial banks and for insured savings banks 

for which the FDIC is the primary federal regulator, FDIC composite 

ratings are used. For all institutions whose primary federal regulator is 

the OTS, the OTS composite rating is 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. Between March 31, 2001 and March 31, 2003 

reserves for losses did not include the allocated transfer risk reserve, 

which was netted from loans and leases. 

Restructured loans and leases – loan and lease financing receivables 

with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance with the modified 

terms. 

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period. 

Return on assets – net income (including gains or losses on securities 

and extraordinary items) as a percentage of average total assets. The 

basic yardstick of bank profitability. 

Return on equity – net income (including gains or losses on securities 

and extraordinary items) as a percentage of average total equity capital. 

Risk-weighted assets – assets adjusted for risk-based capital definitions 

which include on-balance-sheet as well as off-balance-sheet items 

multiplied by risk-weights that range from zero to 100 percent. A 

conversion factor is used to assign a balance sheet equivalent amount 

for selected off-balance-sheet accounts. 

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”, 

which are reported at amortized cost (book value), and securities designated as “available-for-sale”, reported at fair (market) value. 

Securities gains (losses) – realized gains (losses) on held-to-maturity and 

available-for-sale securities, before adjustments for income taxes. 

Thrift Financial Report (TFR) filers also include gains (losses) on the 

sales of assets held for sale. 

Seller’s interest in institution’s own securitizations – the reporting bank’s 

ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities 

issued to investors by the securitization structure. The principal 

amount of a seller’s interest is generally equal to the total principal 

amount of the pool of assets included in the securitization structure 

less the principal amount of those assets attributable to investors, i.e., 

in the form of securities issued to investors. 

Subchapter S Corporation – A Subchapter S corporation is treated as a 

pass-through entity, similar to a partnership, for federal income tax 

purposes. It is generally not subject to any federal income taxes at the 

corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings. 

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the 

assets of the financial institution. 

Unearned income & contra accounts – unearned income for Call Report 

filers only. 

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured by 

commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for sale, which are accounted for as derivatives 

on the balance sheet.) 

Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities sold under 

agreements to repurchase, and other borrowings. 

Yield on earning assets – total interest, dividend and fee income earned 

on loans and investments as a percentage of average earning assets. 

ALL FDIC-INSURED INSTITUTIONS 19 THIRD QUARTER 2006
 

 

 

 

 

The FDIC Quarterly Banking Profile is published quarterly by the Division of Insurance and Research of the Federal 

Deposit Insurance Corporation. Single copy subscriptions of the FDIC Quarterly Banking Profile can be obtained 

through the FDIC Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226; or Email: 

publicinfo@fdic.gov. 

The FDIC Quarterly Banking Profile is available on-line by visiting the FDIC’s website at www.fdic.gov. Comparable 

financial data for individual institutions can now be obtained from the FDIC’s Institution Directory (ID) 

System on this web site. 

Chairman Sheila C. Bair 

Director, Division of Insurance 

and Research 

Arthur J. Murton 

Media Inquiries (202) 898-6993 

Authors Richard Brown 

Chief Economist, FDIC 

(202) 898-3927 

Kevin Brown 

(202) 898-6817 

Brian Lewis 

(202) 898-6510 

Ross Waldrop 

(202) 898-3951