Quarterly Banking Profile
 

SECOND QUARTER 2006 

■	 Profits Continue To Reach New Highs As Net Income Surpasses 

$38 Billion 

■ Strong Loan Demand Supports Revenue Growth 

■ Industry Added Over $1 Trillion In Assets During Past 12 Months 

■ Institutions Increase Reliance On Volatile Funding Sources 

■ Industry Consolidation Slows 

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 

38.1 

2 

2006 

$ Billions 

Net Operating Income 

Securities and Other Gains/Losses, Net 

0 

Profits Continue to Rise Steadily 

2nd Quarter 2005 to 2nd Quarter 2006 ($ Billions) 

Positive Factors Negative Factors

 $4.4 

Increase in 

Net Interest 

Income

 $6.7 

Increase in 

Noninterest 

Income

 -$2.0 

Decrease in 

Gains on 

Securities 

Sales

 $3.3 

Increase in 

Noninterest 

Expense

 -2.0

 0.0

 2.0

 4.0

 6.0

 8.0 

Rebound in Trading Revenue Lifts Noninterest Income 

Earnings Set New Record for Fifth Time in 

Last Six Quarters 

Strong commercial and consumer loan demand outweighed 

the disadvantages of rising interest rates and a flat yield 

curve, enabling insured commercial banks and savings 

institutions to continue to post record profits in the second 

quarter. Quarterly net income of $38.1 billion was $1.2 

billion (3.2 percent) higher than the previous record set in 

the first quarter, and $3.7 billion (10.9 percent) higher 

than in the second quarter of 2005, when trading revenues 

at large institutions were especially weak. The improvement in net income compared to year-earlier levels came 

from higher noninterest income, which was $6.7 billion 

(12.1 percent) higher, and from increased net interest 

income, which was up by $4.4 billion (5.4 percent). Much 

of the improvement in noninterest income came from a 

rebound in trading revenues (up $2.2 billion, or 90.1 percent), and servicing fees (up $1.4 billion, or 46.7 percent). 

Lower gains on sales of securities and other assets (down 

$2.0 billion, or 87.8 percent) and higher noninterest 

expenses (up $3.3 billion, or 4.0 percent) limited the yearover-year improvement in quarterly earnings. Loan-loss 

provisions were only slightly changed from a year earlier, 

declining by $17 million (0.3 percent). The average return 

on assets (ROA) was 1.34 percent, unchanged from both 

the first quarter of 2006 and the second quarter of 2005. 

While industry earnings continue to grow, many institutions are struggling with the flat yield curve environment. 

Only 56.6 percent of all institutions reported higher quarterly net income than a year ago, and fewer than half of all 

institutions (48.7 percent) had higher ROAs than in the 

second quarter of 2005. 

Profitability Trends Are Closely Tied to Trends in 

Net Interest Margins 

The proportion of institutions reporting improved net 

interest margins (45.7 percent) is very close to the proportion reporting improved ROAs. Almost three out of every 

four institutions (71.9 percent) that reported higher quarterly net interest margins (NIM) than a year ago also 

reported higher ROAs. An almost identical proportion of 

institutions (71.2 percent) that experienced declining 

NIMs also had year-over-year declines in their quarterly 

FEDERAL DEPOSIT INSURANCE CORPORATION	 ALL FDIC-INSURED INSTITUTIONS
 

 

FDIC Quarterly Banking Profile 

ROAs. The industry’s NIM in the second quarter 

remained unchanged from the fifteen-year low posted 

in the first quarter, but was 18 basis points lower than 

in the second quarter of 2005. As short-term interest 

rates have risen faster than long-term rates, increases in 

institutions’ funding costs have outpaced increases in 

the yields on their investments. The resulting margin 

squeeze has been more pronounced at larger institutions, which rely more on short-term, interest-sensitive 

liabilities to fund their assets. Margins have declined at 

smaller institutions as well. They obtain more of their 

funding from retail deposits, which reprice upwards 

more slowly when interest rates rise, and their average 

funding costs have remained below the industry average. However, their assets include a larger proportion 

of longer-maturity loans and other investments, which 

reprice more slowly when interest rates rise, so the 

average yields on their assets have risen more slowly 

than other institutions.’ 

Losses on Credit Cards Have Not Yet Risen Back to 

Pre-Bankruptcy Reform Levels 

Asset quality indicators continue to show few if any 

signs of weakness. Net charge-offs of loans and leases 

were $683 million (10.1 percent) lower than in the second quarter of 2005. Charge-offs on credit cards 

remained well below normal levels for a second consecutive quarter after a surge in the fourth quarter of 2005 

prompted by the implementation of new bankruptcy 

rules. The $3.2 billion in credit card loans that were 

charged off during the second quarter was $333 million 

(11.4 percent) above the level of the first quarter, but 

was still $764 million (19.0 percent) less than the 

industry charged off during the second quarter of 2005. 

Charge-offs of other loans to individuals also remained 

below year-earlier levels, declining by $143 million 

(10.3 percent). Net charge-offs of loans to commercial 

and industrial (C&I) borrowers were $91 million (12.7 

percent) higher than a year earlier, the first time in 15 

quarters that quarterly C&I charge-offs have had yearover-year growth. However, because of growth in C&I 

loan portfolios, the industry’s net charge-off rate on 

C&I loans was slightly lower than in last year’s second 

quarter, at 0.28 percent, down from 0.29 percent. 

Small increases were also registered in charge-offs in 

real estate construction and development loan portfolios, and in residential mortgage loans. Loan losses 

remain very low by historical standards. The annualized 

net charge-off rate on total loans and leases averaged 

0.35 percent in the second quarter, matching the second-lowest level in the 23 years that all insured institutions have reported quarterly charge-off data. 

Noncurrent Loans Increase, But Noncurrent 

Loan Rate Reaches All-Time Low 

The industry’s noncurrent loans (loans 90 days or more 

past due or in nonaccrual status) registered a modest 

$514-million (1.1-percent) increase during the second 

quarter. Noncurrent credit card loans increased by 

$652 million (10.4 percent), while noncurrent real 

estate construction and development loans rose by 

$215 million (10.8 percent), and noncurrent C&I loans 

grew by $160 million (2.0 percent). This is the first 

increase in noncurrent C&I loans in 15 quarters, but it 

was the second consecutive quarterly increase in noncurrent construction and development loans. Since the 

end of last year, when it reached its lowest level in the 

16 years that insured institutions have reported noncurrent construction and development loan data, the noncurrent rate on these loans has risen in the past two 

quarters, from 0.38 percent to 0.43 percent. The 

increases in noncurrent construction loans, C&I, and 

Chart 3 Chart 4 

Assets > $100 Million 

Assets < $100 Million 

1 2 3 

2002 4 1 2 3 2003 4 1 2 3 2004 4 1 2 3 2005 4 1 2 2006

 3.0

 3.5

 4.0

 4.5

 5.0

 3.44%

 4.18% 

Net Interest Margin (%)

 4.06%

 4.15% 

Margins Show Little Change in the Second Quarter 

1% 

2% 

3% 

4% 

5% 

6% 

7% 

8% 

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 

0 

100 

200 

300 

400 

500 

600 

700 

Credit Card Charge-off Rates 

Personal Bankruptcy Filings 

Net Charge-off Rate (%) Number of Bankruptcy Filings 

(Thousands) 

Bankruptcies and Credit Card Losses Remain Low 

in the Second Quarter 

SECOND QUARTER 2006 2 ALL FDIC-INSURED INSTITUTIONS
 

 

 

FDIC Quarterly Banking Profile 

credit card loans were partially offset by a $397-million 

(2.1-percent) decline in noncurrent 1-4 family residential mortgages. This decline was caused by a $682-million decline in noncurrent rebooked GNMA mortgage 

loans. Despite the growth in total noncurrent loans 

during the quarter, the industry’s noncurrent loan rate 

declined by one basis point to 0.70 percent, the lowest 

level in the 23 years that insured institutions have 

reported total noncurrent loan data. 

Reserve Growth Lags Behind Growth in Loans 

After two years of declines, industry loan-loss reserves 

have increased modestly in each of the first two quarters of this year. During the second quarter, reserves 

grew by $252 million (0.3 percent), following a $305­

million (0.4-percent) increase in the first quarter. 

Insured institutions added $6.4 billion in loan-loss provisions to their reserves, while net charge-offs siphoned 

off $6.1 billion. The small increase in reserves did not 

keep pace with growth in total loans and noncurrent 

loans. The industry’s ratio of reserves to total loans and 

leases fell for the fourteenth quarter in a row. At 1.10 

percent, it is at its lowest level since 1985. The industry’s “coverage ratio” of reserves to noncurrent loans 

declined from $1.60 in reserves for every $1.00 in noncurrent loans to $1.59 during the quarter. The slippage 

in reserve ratios and coverage ratios occurred across all 

sizes of institutions. 

Capital Indicators Remain Robust 

Equity capital increased by $20.6 billion (1.8 percent) 

during the second quarter. Retained earnings contributed $16.4 billion to the increase. The industry’s 

ratio of equity capital to assets fell from 10.38 percent 

to 10.27 percent during the quarter. The core capital 

Chart 5 

Noncurrent Construction Loans Have Risen 

from Historic Lows 

Percent Noncurrent 

(leverage ratio) had a smaller decline, from 8.27 percent to 8.24 percent. The tier 1 risk based capital ratio 

slipped from 10.76 percent to 10.75 percent, while the 

total risk-based capital ratio improved from 13.06 percent to 13.08 percent, as the industry added more assets 

with low risk weights in the second quarter. All capital 

ratios remained near long-term highs. At the end of 

June, more than 99 percent of all insured institutions 

met or exceeded the requirements of the highest regulatory capital standards. 

Assets Continue to Grow at Double-Digit 

Annual Rate 

Total assets of insured institutions increased by $314 

billion (2.8 percent) during the second quarter, as loan 

demand remained strong. During the 12 months ended 

June 30, industry assets increased by more than $1 trillion, the first time that an increase of this magnitude 

has occurred over a 12-month period. Loans and leases 

accounted for almost two-thirds of the increase in assets 

during the second quarter. Residential mortgage loans 

registered the largest increase, growing by $54.3 billion 

(2.6 percent). C&I loans rose by $31.7 billion (2.8 

percent), followed by real estate construction and 

development loans, which increased by $30.4 billion 

(6.3 percent). During the last 12 months, construction 

and development loans have grown by $123.9 billion 

(31.8 percent). Other loan categories that exhibited 

significant growth include loans secured by commercial 

real estate properties, which were up by $21.3 billion 

(2.5 percent) during the quarter, and credit card loans, 

which increased by $15.7 billion (4.4 percent). In 

addition to the growth in residential mortgage loans, 

the industry also saw its mortgage-backed securities 

(MBS) increase by $25.5 billion (2.1 percent) during 

the quarter. Data on loans to small businesses and 

Chart 6 

Commercial Lending Has Picked Up as Retail Lending 

Has Slowed 

Quarterly Change ($ Billions) 

0.00 

0.30 

0.60 

0.90 

1.20 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2000 2001 2002 2003 2004 2005 2006 

0.67% 

1.16% 

0.43% 

0.38% 

1.30 120 

100 

80 

60 

40 

20 

0 

132 Loans to Commercial Borrowers

124 Loans to Individuals

119 117 113 111 

105 103 

96 92 89 

76 76 

66 

44 

38 38 36 31 

18 

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

ALL FDIC-INSURED INSTITUTIONS 3 SECOND QUARTER 2006
 

 

FDIC Quarterly Banking Profile 

farms, which is reported each June 30, show that lending to small domestic commercial borrowers grew at a 

more rapid rate in the 12 months ended June 30 than 

in the 12 months ended June 30, 2005. However, the 

data also show that growth in loans to larger domestic 

commercial borrowers remains stronger. During the 

last 12 months, C&I loans with original amounts of $1 

million or less increased by $12.7 billion (4.5 percent), 

while larger C&I loans grew by $80.5 billion (13.0 percent). Commercial real estate loans with original 

amounts of $1 million or less increased by $20.7 million 

(6.6 percent), while larger loans grew by $55.6 billion 

(11.9 percent). Agricultural production loans with 

original amounts of $500 thousand or less increased by 

$1.5 billion (4.9 percent), while larger agricultural 

loans rose by $3.0 billion (17.6 percent). Real estate 

loans secured by farmland with original amounts of 

$500 thousand or less increased by $921 million (2.8 

percent), while larger farm real estate loans increased 

by $2.9 billion (20.3 percent). 

Retail Deposit Growth Slows 

Total deposits increased by $186.1 billion (2.5 percent), 

with much of the growth coming from deposits in foreign offices (up by $80.2 billion, or 8.1 percent), and 

large domestic time deposits (up by $64.4 billion, or 4.9 

percent). Brokered deposits increased by $43.1 billion 

(8.8 percent). “Core” or retail deposits, which include 

all deposits in domestic offices other than time deposits 

in denominations of $100,000 or more, increased by 

$41.5 billion (0.8 percent), the smallest quarterly 

increase in almost three years. Nondeposit liabilities 

increased by $107.1 billion (3.9 percent). Institutions’ 

Chart 7 Chart 8 

dependence on volatile liabilities — foreign office 

deposits, large-denomination time deposits, overnight 

funds and other borrowings — has risen to a recordhigh level, even as core deposits’ share of total funding 

has fallen to an all-time low, which means that funding 

costs have become more sensitive to changes in shortterm interest rates. 

More Than Two Years Since Last Bank Failure 

The number of FDIC-insured commercial banks and 

savings institutions reporting financial results declined 

from 8,790 to 8,778 during the second quarter. This is 

the second-smallest net decline in the number of 

insured institutions in any quarter since the industry 

began consolidating in 1986. During the 12 months 

ended June 30, the industry had a net contraction of 90 

institutions, the first 12-month period in 20 years that 

has not had a net decline of more than 100 insured 

institutions. There were 55 new institutions added during the second quarter, while 67 insured institutions 

were absorbed by mergers. For the eighth consecutive 

quarter, no FDIC-insured institution failed. The length 

of time since the last bank failure, which now exceeds 

two years (the last failure occurred on June 25, 2004), 

is unprecedented in the 73-year history of federal 

deposit insurance. The number of insured institutions 

on the FDIC’s “Problem List” increased from 48 to 50 

during the quarter, and total assets of “problem” institutions increased from $5.4 billion to $5.5 billion, but 

these numbers remain near historic lows for the industry. Four insured savings institutions with $1.7 billion 

in assets converted from mutual to stock ownership in 

the second quarter. 

-300 

-250 

-200 

-150 

-100 

-50 

0 

50 

84 86 88 90 92 94 96 98 00 02 04 06 

Quarterly Change in Number of Institutions 

Pace of Industry Consolidation Continues to Slow 

Quarterly Change ($ Billions) 

Core Deposits 

Volatile Liabilities 

0 

50 

100 

150 

200 

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

88 

126 

-8 

59 

75 79 

46 

92 

61 

43 

70 

119 

57 

41 

18 

123 

28 

57 

162 

202 

61 61 

105 

122 

139 

65 

165 

220 

250 

Retail Deposit Growth Has Not Kept Pace 

With Growth in Assets 

SECOND 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 (%) ................................................................ 1.34 1.34 1.30 1.28 1.38 1.30 1.14 

Return on equity (%) ................................................................. 12.99 13.18 12.73 13.20 15.05 14.08 13.02 

Core capital (leverage) ratio (%) ............................................... 8.24 8.26 8.25 8.11 7.88 7.86 7.79 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.47 0.48 0.50 0.53 0.75 0.90 0.87 

Net charge-offs to loans (%) ..................................................... 0.34 0.45 0.50 0.56 0.78 0.97 0.83 

Asset growth rate (%) ............................................................... 10.02 8.56 7.64 11.35 7.58 7.20 5.44 

Net interest margin (%) ............................................................. 3.45 3.57 3.52 3.54 3.73 3.96 3.78 

Net operating income growth (%) ............................................. 13.33 10.35 11.42 4.04 16.39 17.58 -0.48 

Number of institutions reporting ................................................ 8,778 8,868 8,833 8,976 9,181 9,354 9,614 

Commercial banks ................................................................. 7,480 7,549 7,526 7,631 7,770 7,888 8,080 

Savings institutions ................................................................ 1,298 1,319 1,307 1,345 1,411 1,466 1,534 

Percentage of unprofitable institutions (%) ............................... 6.74 5.53 6.22 5.96 5.99 6.67 8.24 

Number of problem institutions ................................................. 50 74 52 80 116 136 114 

Assets of problem institutions (in billions) ................................. $6 $22 $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 June 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending June 30. 

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

(dollar figures in millions) 2nd Quarter 1st Quarter 2nd Quarter %Change 

2006 2006 2005 05:2-06:2 

Number of institutions reporting .......................................................................... 8,778 8,790 8,868 -1.0 

Total employees (full-time equivalent) ................................................................. 2,198,643 2,172,999 2,130,266 3.2 

CONDITION DATA 

Total assets ......................................................................................................... $11,523,517 $11,209,806 $10,474,304 10.0 

Loans secured by real estate ........................................................................... 4,383,902 4,247,132 3,932,148 11.5 

1-4 Family residential mortgages .................................................................. 2,155,859 2,101,607 1,950,716 10.5 

Commercial real estate ................................................................................. 859,410 838,073 783,175 9.7 

Construction and development ...................................................................... 513,883 483,483 389,992 31.8 

Home equity lines .......................................................................................... 555,996 530,604 533,854 4.1 

Commercial & industrial loans .......................................................................... 1,164,628 1,132,911 1,042,165 11.8 

Loans to individuals .......................................................................................... 933,077 923,574 907,687 2.8 

Credit cards ................................................................................................... 374,351 358,627 366,447 2.2 

Farm loans ....................................................................................................... 52,768 49,324 48,274 9.3 

Other loans & leases ........................................................................................ 527,432 514,233 477,878 10.4 

Less: Unearned income ................................................................................... 2,433 3,344 3,084 -21.1 

Total loans & leases ......................................................................................... 7,059,374 6,863,830 6,405,069 10.2 

Less: Reserve for losses .................................................................................. 77,911 77,659 79,053 -1.4 

Net loans and leases ........................................................................................ 6,981,463 6,786,171 6,326,016 10.4 

Securities .......................................................................................................... 1,970,914 1,956,246 1,888,572 4.4 

Other real estate owned ................................................................................... 5,217 5,117 4,093 27.5 

Goodwill and other intangibles ......................................................................... 390,425 380,786 322,362 21.1 

All other assets ................................................................................................. 2,175,498 2,081,486 1,933,261 12.5 

Total liabilities and capital ................................................................................... 11,523,517 11,209,806 10,474,304 10.0 

Deposits ........................................................................................................... 7,504,873 7,318,785 6,820,986 10.0 

Domestic office deposits ............................................................................... 6,436,832 6,330,974 5,925,818 8.6 

Foreign office deposits .................................................................................. 1,068,041 987,811 895,168 19.3 

Other borrowed funds ....................................................................................... 2,215,173 2,118,161 2,017,261 9.8 

Subordinated debt ............................................................................................ 142,875 135,458 123,091 16.1 

All other liabilities .............................................................................................. 476,788 474,158 426,086 11.9 

Equity capital .................................................................................................... 1,183,807 1,163,243 1,086,880 8.9 

Loans and leases 30-89 days past due ............................................................... 55,206 56,334 47,404 16.5 

Noncurrent loans and leases ............................................................................... 49,107 48,593 45,820 7.2 

Restructured loans and leases ............................................................................ 4,169 3,306 2,755 51.3 

Direct and indirect investments in real estate ...................................................... 1,122 1,102 912 23.0 

Mortgage-backed securities ................................................................................ 1,212,620 1,187,113 1,141,222 6.3 

Earning assets ..................................................................................................... 10,054,033 9,795,064 9,142,318 10.0 

FHLB Advances .................................................................................................. 622,535 598,299 585,377 6.3 

Unused loan commitments .................................................................................. 7,557,470 7,297,374 6,681,630 13.1 

Trust assets ......................................................................................................... 17,565,286 17,432,442 15,470,980 13.5 

Assets securitized and sold*** ............................................................................. 996,684 962,339 971,376 2.6 

Notional amount of derivatives*** ........................................................................ 120,205,341 111,134,408 96,942,524 24.0 

First Half First Half 2nd Quarter 2nd Quarter %Change 

INCOME DATA 2006 2005 %Change 2006 2005 05:2-06:2 

Total interest income .................................................................................... $314,073 $246,365 27.5 $162,939 $129,832 25.5 

Total interest expense .................................................................................. 145,483 89,189 63.1 77,252 48,513 59.2 

Net interest income .................................................................................... 168,589 157,175 7.3 85,687 81,319 5.4 

Provision for loan and lease losses .............................................................. 12,327 12,807 -3.8 6,394 6,410 -0.3 

Total noninterest income .............................................................................. 123,425 109,684 12.5 62,395 55,659 12.1 

Total noninterest expense ............................................................................ 169,336 157,080 7.8 84,995 81,710 4.0 

Securities gains (losses) ............................................................................... 945 3,101 -69.5 276 2,252 -87.8 

Applicable income taxes ............................................................................... 36,843 32,849 12.2 19,154 16,771 14.2 

Extraordinary gains, net ............................................................................... 481 11 N/M 278 7 N/M 

Net income ................................................................................................ 74,935 67,235 11.5 38,093 34,346 10.9 

Net charge-offs ............................................................................................. 11,514 13,859 -16.9 6,058 6,741 -10.1 

Cash dividends ............................................................................................. 40,617 33,647 20.7 21,729 19,074 13.9 

Retained earnings ........................................................................................ 34,318 33,589 2.2 16,364 15,272 7.2 

Net operating income ................................................................................ 73,844 65,159 13.3 37,635 32,863 14.5 

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

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

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

SECOND 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 

8,778 29 5 1,681 4,707 863 123 404 911 55 

Commercial banks ............................................... 7,480 26 5 1,677 4,248 195 96 361 829 43 

Savings institutions .............................................. 1,298 3 0 4 459 668 27 43 82 12 

Total assets (in billions) .......................................... $11,523.5 $376.8 $2,097.8 $146.6 $4,550.2 $1,766.7 $97.5 $44.4 $117.2 $2,326.3 

Commercial banks ............................................... 9,602.3 360.2 2,097.8 146.2 4,116.1 419.0 49.9 35.1 100.0 2,278.0 

Savings institutions .............................................. 1,921.3 16.5 0.0 0.3 434.1 1,347.7 47.6 9.4 17.2 48.3 

Total deposits (in billions) ....................................... 7,504.9 104.8 1,288.0 118.5 3,271.5 1,013.7 71.1 31.1 95.9 1,510.2 

Commercial banks ............................................... 6,383.0 102.4 1,288.0 118.2 2,989.2 259.0 34.5 24.8 82.3 1,484.6 

Savings institutions .............................................. 1,121.8 2.4 0.0 0.3 282.3 754.7 36.6 6.3 13.6 25.6 

Net income (in millions) .......................................... 38,093 4,325 5,191 471 14,977 4,639 437 387 302 7,364 

Commercial banks ............................................... 32,901 4,152 5,191 470 14,051 1,113 246 201 287 7,189 

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

Performance Ratios (annualized,%) 

5,193 174 0 1 925 3,526 191 186 14 175 

Yield on earning assets .......................................... 6.57 13.53 5.83 6.78 6.80 6.22 7.84 5.24 6.14 6.01 

Cost of funding earning assets ............................... 3.12 4.04 3.29 2.68 2.95 3.43 3.14 1.91 2.40 3.02 

Net interest margin .............................................. 3.46 9.49 2.54 4.10 3.86 2.79 4.70 3.33 3.75 3.00 

Noninterest income to assets ................................. 2.20 10.91 2.68 0.67 1.56 1.23 2.48 10.35 1.10 2.30 

Noninterest expense to assets ............................... 2.99 8.94 3.08 2.71 2.86 2.19 3.27 8.57 3.13 2.71 

Loan and lease loss provision to assets ................. 0.23 2.22 0.19 0.17 0.17 0.10 0.84 0.15 0.11 0.12 

Net operating income to assets .............................. 1.33 4.40 1.02 1.31 1.35 0.96 1.71 3.20 1.03 1.29 

Pretax return on assets .......................................... 2.02 7.23 1.50 1.56 1.94 1.67 2.77 4.70 1.30 2.02 

Return on assets .................................................... 1.34 4.64 1.01 1.30 1.33 1.07 1.79 3.37 1.03 1.29 

Return on equity ..................................................... 12.99 17.10 12.45 12.02 13.04 9.92 18.38 15.64 9.53 13.96 

Net charge-offs to loans and leases ....................... 0.35 3.43 0.59 0.17 0.17 0.13 0.92 0.54 0.18 0.19 

Loan and lease loss provision to net charge-offs ... 105.54 94.30 74.50 144.64 142.72 110.60 116.49 114.79 109.12 121.09 

Efficiency ratio ........................................................ 56.00 45.71 62.57 60.51 56.22 56.81 48.17 64.31 68.51 54.61 

% of unprofitable institutions .................................. 6.76 10.34 0.00 3.15 6.97 8.00 4.07 22.52 4.83 0.00 

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

Structural Changes 

56.65 72.41 100.00 54.37 64.86 30.94 49.59 45.54 48.41 49.09 

New Charters ...................................................... 55 0 0 2 15 1 0 36 1 0 

Institutions absorbed by mergers ........................ 67 0 0 11 53 2 0 0 0 1 

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

PRIOR SECOND QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) .................................... 2005 1.34 3.18 0.71 1.35 1.39 1.22 1.40 1.60 1.09 1.60

 .............................. 2003 1.38 4.01 1.04 1.26 1.31 1.49 1.49 0.65 1.08 1.29

 .............................. 2001 1.18 2.81 0.90 1.21 1.20 1.07 1.14 1.33 1.05 1.00 

Net charge-offs to loans & leases (%) ......... 2005 0.43 4.18 0.66 0.15 0.22 0.09 1.11 0.40 0.34 0.18

 ............................. 2003 0.79 5.37 1.39 0.25 0.56 0.18 0.89 0.55 0.31 0.56

 ............................. 2001 0.72 4.01 0.65 0.23 0.60 0.16 1.02 0.38 0.34 0.75 

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

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

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

SECOND 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 

8,778 3,806 4,332 518 122 1,104 1,234 1,864 2,043 1,777 756 

Commercial banks .............................................. 7,480 3,403 3,593 395 89 578 1,088 1,539 1,938 1,654 683 

Savings institutions ............................................. 1,298 403 739 123 33 526 146 325 105 123 73 

Total assets (in billions) ......................................... $11,523.5 $198.6 $1,269.5 $1,422.2 $8,633.3 $2,951.5 $2,861.6 $2,679.3 $825.3 $629.3 $1,576.6 

Commercial banks .............................................. 9,602.3 178.0 1,019.7 1,090.7 7,314.0 2,304.0 2,675.2 2,526.3 789.8 527.2 779.8 

Savings institutions ............................................. 1,921.3 20.6 249.8 331.5 1,319.3 647.5 186.5 153.0 35.5 102.1 796.8 

Total deposits (in billions) ...................................... 7,504.9 162.6 1,015.6 1,006.3 5,320.4 1,946.6 1,883.8 1,689.9 601.9 477.1 905.5 

Commercial banks .............................................. 6,383.0 146.9 828.0 776.4 4,631.6 1,530.1 1,760.8 1,582.3 578.5 417.6 513.7 

Savings institutions ............................................. 1,121.8 15.7 187.6 229.9 688.7 416.5 123.0 107.6 23.4 59.5 391.8 

Net income (in millions) ......................................... 38,093 502 4,052 4,675 28,863 9,392 9,260 7,164 3,350 2,015 6,912 

Commercial banks .............................................. 32,901 458 3,444 3,874 25,125 7,889 8,835 6,754 3,273 1,700 4,449 

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

Performance Ratios (annualized,%) 

5,193 44 609 801 3,738 1,503 425 410 77 315 2,463 

Yield on earning assets ......................................... 6.57 6.60 6.89 6.72 6.49 6.45 6.37 5.98 7.25 6.88 7.64 

Cost of funding earning assets .............................. 3.12 2.42 2.77 2.96 3.21 3.20 3.07 3.16 2.86 2.83 3.23 

Net interest margin ............................................. 3.46 4.18 4.12 3.76 3.28 3.25 3.30 2.82 4.38 4.05 4.41 

Noninterest income to assets ................................ 2.20 1.23 1.30 1.61 2.45 2.55 1.89 2.14 3.13 1.46 1.99 

Noninterest expense to assets .............................. 2.99 3.62 3.18 2.89 2.97 3.11 2.66 2.79 4.16 3.22 3.03 

Loan and lease loss provision to assets ............... 0.23 0.18 0.17 0.18 0.24 0.31 0.12 0.12 0.28 0.15 0.43 

Net operating income to assets ............................. 1.33 1.01 1.28 1.30 1.34 1.29 1.31 1.11 1.68 1.27 1.63 

Pretax return on assets ......................................... 2.02 1.30 1.75 1.98 2.08 1.93 2.01 1.61 2.42 1.73 2.77 

Return on assets ................................................... 1.34 1.01 1.29 1.34 1.36 1.29 1.32 1.09 1.63 1.29 1.78 

Return on equity .................................................... 12.99 8.09 12.59 12.31 13.30 11.65 13.68 12.10 15.46 12.67 14.34 

Net charge-offs to loans and leases ...................... 0.35 0.15 0.15 0.20 0.42 0.56 0.15 0.23 0.37 0.22 0.54 

Loan and lease loss provision to net charge-offs .. 105.54 190.30 169.79 132.54 98.53 101.94 128.36 99.27 108.31 115.26 102.66 

Efficiency ratio ....................................................... 56.00 70.97 62.11 56.56 54.70 55.96 54.70 59.58 58.69 62.20 49.53 

% of unprofitable institutions ................................. 6.76 11.93 2.95 1.74 1.64 9.51 9.64 5.53 4.85 5.01 10.32 

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

Structural Changes 

56.65 51.47 60.06 64.86 62.30 42.03 68.15 46.14 54.33 65.56 70.50 

New Charters ..................................................... 55 53 2 0 0 5 20 7 4 6 13 

Institutions absorbed by mergers ....................... 67 30 35 2 0 6 14 7 18 7 15 

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

PRIOR SECOND QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ................................... 2005 1.34 1.09 1.24 1.36 1.36 1.29 1.58 0.95 1.56 1.28 1.63 

........................... 2003 1.38 0.89 1.19 1.50 1.41 1.25 1.39 1.34 1.57 1.41 1.64 

........................... 2001 1.18 0.92 1.11 1.20 1.20 1.15 1.23 0.98 1.33 1.23 1.36 

Net charge-offs to loans & leases (%) ......... 2005 0.43 0.19 0.19 0.24 0.52 0.69 0.20 0.27 0.51 0.23 0.63 

............................ 2003 0.79 0.30 0.31 0.65 0.94 1.14 0.57 0.68 1.05 0.39 0.70 

............................ 2001 0.72 0.26 0.30 0.77 0.82 0.81 0.63 0.62 0.95 0.40 0.85 

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

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

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

FIRST HALF 

(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 

8,778 29 5 1,681 4,707 863 123 404 911 55 

Commercial banks ............................................... 7,480 26 5 1,677 4,248 195 96 361 829 43 

Savings institutions .............................................. 1,298 3 0 4 459 668 27 43 82 12 

Total assets (in billions) .......................................... $11,523.5 $376.8 $2,097.8 $146.6 $4,550.2 $1,766.7 $97.5 $44.4 $117.2 $2,326.3 

Commercial banks ............................................... 9,602.3 360.2 2,097.8 146.2 4,116.1 419.0 49.9 35.1 100.0 2,278.0 

Savings institutions .............................................. 1,921.3 16.5 0.0 0.3 434.1 1,347.7 47.6 9.4 17.2 48.3 

Total deposits (in billions) ....................................... 7,504.9 104.8 1,288.0 118.5 3,271.5 1,013.7 71.1 31.1 95.9 1,510.2 

Commercial banks ............................................... 6,383.0 102.4 1,288.0 118.2 2,989.2 259.0 34.5 24.8 82.3 1,484.6 

Savings institutions .............................................. 1,121.8 2.4 0.0 0.3 282.3 754.7 36.6 6.3 13.6 25.6 

Net income (in millions) .......................................... 74,935 8,436 10,781 925 29,564 9,057 959 298 599 14,316 

Commercial banks ............................................... 64,596 8,178 10,781 923 27,464 2,098 535 40 562 14,016 

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

Performance Ratios (annualized,%) 

10,339 259 0 2 2,100 6,959 425 258 37 300 

Yield on earning assets .......................................... 6.43 13.03 5.76 6.62 6.64 6.08 7.71 5.39 6.02 5.89 

Cost of funding earning assets ............................... 2.98 3.82 3.20 2.54 2.80 3.27 3.05 1.95 2.29 2.89 

Net interest margin .............................................. 3.45 9.21 2.56 4.08 3.84 2.81 4.66 3.43 3.73 3.00 

Noninterest income to assets ................................. 2.21 11.04 2.90 0.66 1.53 1.21 2.52 9.53 1.07 2.24 

Noninterest expense to assets ............................... 3.03 8.98 3.23 2.70 2.84 2.19 3.23 10.24 3.11 2.74 

Loan and lease loss provision to assets ................. 0.22 2.29 0.22 0.15 0.16 0.08 0.59 0.02 0.10 0.11 

Net operating income to assets .............................. 1.32 4.39 1.09 1.29 1.33 0.96 1.94 1.18 1.02 1.27 

Pretax return on assets ........................................... 2.00 7.15 1.57 1.55 1.93 1.66 3.05 2.36 1.29 1.95 

Return on assets ..................................................... 1.34 4.59 1.08 1.28 1.33 1.06 2.00 1.28 1.03 1.27 

Return on equity ..................................................... 12.99 18.14 13.06 11.93 13.05 9.76 20.53 5.89 9.48 13.64 

Net charge-offs to loans and leases ....................... 0.34 3.15 0.55 0.14 0.17 0.12 0.94 0.70 0.15 0.19 

Loan and lease loss provision to net charge-offs ... 107.06 102.49 89.68 163.44 139.63 95.44 79.56 10.54 123.68 102.01 

Efficiency ratio ........................................................ 56.45 45.69 62.62 60.90 56.46 57.14 47.49 67.63 68.76 55.96 

% of unprofitable institutions ................................... 6.74 6.90 0.00 2.86 7.20 8.23 4.07 21.29 4.50 0.00 

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

Condition Ratios (%) 

57.48 68.97 100.00 53.06 67.30 30.94 52.03 44.55 46.10 54.55 

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

Loss Allowance to: 

87.25 74.66 83.69 91.91 88.73 91.68 91.09 86.49 91.64 85.56 

Loans and leases ................................................ 1.10 4.19 1.30 1.38 1.14 0.47 1.46 1.47 1.23 0.82 

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

Noncurrent assets plus 

158.66 228.73 145.13 156.28 196.64 70.82 203.61 202.48 161.58 130.01 

other real estate owned to assets ........................ 0.47 1.28 0.40 0.67 0.46 0.54 0.60 0.21 0.53 0.36 

Equity capital ratio .................................................. 10.27 27.09 8.05 10.72 10.21 10.65 9.92 21.54 10.80 9.13 

Core capital (leverage) ratio ................................... 8.24 18.08 6.30 10.51 8.34 9.36 9.39 17.61 10.86 7.01 

Tier 1 risk-based capital ratio .................................. 10.72 16.68 8.65 14.20 9.80 15.26 11.74 41.02 18.05 9.58 

Total risk-based capital ratio ................................... 13.08 19.49 12.14 15.30 11.98 16.81 12.75 42.47 19.23 11.93 

Net loans and leases to deposits ............................ 93.03 239.84 68.00 81.69 95.58 123.92 107.35 32.20 67.69 80.98 

Net loans to total assets ......................................... 60.58 66.73 41.75 66.05 68.72 71.10 78.26 22.56 55.38 52.57 

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

Structural Changes 

55.86 24.72 30.10 80.86 69.21 57.00 72.29 68.17 81.82 53.33 

New Charters ....................................................... 98 0 0 3 27 1 2 61 4 0 

Institutions absorbed by mergers ........................ 152 0 0 17 120 6 0 4 2 3 

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

PRIOR FIRST HALVES 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Number of institutions ................................ 2005 8,868 29 6 1,731 4,545 953 118 422 1,005 59

 ................................. 2003 9,268 37 6 1,826 4,118 1,045 183 524 1,429 100

 ................................. 2001 9,747 61 6 1,960 4,008 1,234 257 457 1,679 85 

Total assets (in billions) ................................ 2005 $10,474.3 $372.3 $1,927.3 $139.0 $3,648.0 $1,642.0 $146.2 $49.9 $127.5 $2,422.2

 ................................. 2003 8,923.3 294.1 1,429.3 127.7 3,122.3 1,407.6 379.6 64.6 195.2 1,902.9

 ................................. 2001 7,635.9 335.7 1,187.9 120.6 3,799.3 1,082.0 140.6 46.5 200.9 722.4 

Return on assets (%) .................................... 2005 1.34 3.18 0.81 1.31 1.35 1.21 1.35 1.58 1.14 1.55

 ................................. 2003 1.38 3.79 1.06 1.24 1.32 1.51 1.53 0.95 1.08 1.27

 ................................. 2001 1.20 2.82 1.02 1.20 1.20 1.04 1.06 1.60 1.05 0.97 

Net charge-offs to loans & leases (%) ......... 2005 0.45 4.26 0.70 0.13 0.22 0.09 1.16 0.32 0.29 0.19

 ................................. 2003 0.80 5.36 1.42 0.20 0.56 0.18 0.90 0.45 0.28 0.58

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

Noncurrent assets plus 

0.68 3.86 0.60 0.20 0.56 0.14 1.08 0.48 0.27 0.71 

OREO to assets (%) .................................. 2005 0.48 1.17 0.53 0.68 0.48 0.41 0.44 0.26 0.60 0.37

 ................................. 2003 0.81 1.42 1.00 1.00 0.81 0.66 0.81 0.42 0.74 0.67

 ................................. 2001 0.79 1.40 0.74 0.86 0.84 0.54 1.22 0.27 0.62 0.62 

Equity capital ratio (%) .................................. 2005 10.38 21.70 8.46 10.96 10.09 10.89 12.08 18.41 11.06 9.91

 ................................. 2003 9.09 17.13 7.08 10.87 9.39 9.01 8.58 15.34 11.04 8.51

 ................................. 2001 8.72 12.07 6.69 10.79 9.07 8.28 7.75 17.87 10.37 8.08 

*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. 

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

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

FIRST HALF 

(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 

8,778 3,806 4,332 518 122 1,104 1,234 1,864 2,043 1,777 756 

Commercial banks ............................................... 7,480 3,403 3,593 395 89 578 1,088 1,539 1,938 1,654 683 

Savings institutions .............................................. 1,298 403 739 123 33 526 146 325 105 123 73 

Total assets (in billions) .......................................... $11,523.5 $198.6 $1,269.5 $1,422.2 $8,633.3 $2,951.5 $2,861.6 $2,679.3 $825.3 $629.3 $1,576.6 

Commercial banks ............................................... 9,602.3 178.0 1,019.7 1,090.7 7,314.0 2,304.0 2,675.2 2,526.3 789.8 527.2 779.8 

Savings institutions .............................................. 1,921.3 20.6 249.8 331.5 1,319.3 647.5 186.5 153.0 35.5 102.1 796.8 

Total deposits (in billions) ....................................... 7,504.9 162.6 1,015.6 1,006.3 5,320.4 1,946.6 1,883.8 1,689.9 601.9 477.1 905.5 

Commercial banks ............................................... 6,383.0 146.9 828.0 776.4 4,631.6 1,530.1 1,760.8 1,582.3 578.5 417.6 513.7 

Savings institutions .............................................. 1,121.8 15.7 187.6 229.9 688.7 416.5 123.0 107.6 23.4 59.5 391.8 

Net income (in millions) .......................................... 74,935 993 7,432 9,234 57,276 18,454 18,330 14,157 6,572 4,017 13,405 

Commercial banks ............................................... 64,596 905 6,304 7,644 49,743 15,528 17,443 13,443 6,425 3,391 8,366 

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

Performance Ratios (annualized,%) 

10,339 88 1,128 1,590 7,533 2,927 888 714 147 626 5,039 

Yield on earning assets .......................................... 6.43 6.48 6.73 6.58 6.36 6.31 6.23 5.90 7.07 6.71 7.43 

Cost of funding earning assets ............................... 2.98 2.32 2.64 2.82 3.08 3.05 2.94 3.06 2.69 2.69 3.06 

Net interest margin .............................................. 3.45 4.15 4.09 3.76 3.28 3.26 3.30 2.84 4.38 4.01 4.38 

Noninterest income to assets ................................. 2.21 1.21 1.26 1.61 2.47 2.58 1.89 2.18 3.03 1.43 2.02 

Noninterest expense to assets ............................... 3.03 3.59 3.24 2.90 3.00 3.21 2.66 2.84 4.13 3.21 3.02 

Loan and lease loss provision to assets ................. 0.22 0.16 0.16 0.17 0.24 0.30 0.10 0.14 0.26 0.15 0.43 

Net operating income to assets .............................. 1.32 0.99 1.18 1.31 1.35 1.28 1.32 1.11 1.64 1.24 1.63 

Pretax return on assets .......................................... 2.00 1.29 1.64 1.98 2.07 1.90 2.00 1.62 2.38 1.71 2.73 

Return on assets .................................................... 1.34 1.01 1.19 1.34 1.37 1.29 1.32 1.09 1.62 1.30 1.75 

Return on equity ..................................................... 12.99 8.02 11.64 12.39 13.44 11.83 13.66 12.05 15.34 12.76 14.09 

Net charge-offs to loans and leases ....................... 0.34 0.13 0.13 0.19 0.40 0.51 0.15 0.23 0.36 0.19 0.53 

Loan and lease loss provision to net charge-offs ... 107.06 199.22 181.00 134.12 99.91 104.54 111.79 108.41 103.38 128.54 106.36 

Efficiency ratio ........................................................ 56.45 71.19 62.81 56.79 55.16 56.91 54.92 59.99 59.17 63.01 49.37 

% of unprofitable institutions .................................. 6.74 12.19 2.82 0.97 0.82 9.96 10.29 5.53 4.45 4.78 10.05 

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

Condition Ratios (%) 

57.48 51.18 61.52 67.18 69.67 42.93 70.58 47.32 54.28 64.83 73.81 

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

Loss Allowance to: 

87.25 91.97 91.75 90.52 85.94 85.73 87.22 86.53 86.61 89.42 90.83 

Loans and leases ................................................ 1.10 1.31 1.18 1.16 1.07 1.23 0.92 1.14 1.23 1.16 1.08 

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

Noncurrent assets plus 

158.66 146.84 191.82 197.77 148.30 173.35 228.60 141.23 115.82 135.66 144.82 

other real estate owned to assets ....................... 0.47 0.70 0.52 0.45 0.47 0.41 0.29 0.51 0.82 0.64 0.62 

Equity capital ratio .................................................. 10.27 12.51 10.22 10.91 10.12 11.04 9.49 8.92 10.62 10.17 12.42 

Core capital (leverage) ratio ................................... 8.24 12.70 9.90 9.50 7.68 8.29 7.36 7.16 9.05 8.66 10.99 

Tier 1 risk-based capital ratio ................................. 10.72 18.66 13.41 12.43 9.89 11.46 9.40 9.06 11.02 12.08 14.06 

Total risk-based capital ratio .................................. 13.08 19.74 14.55 13.71 12.62 14.11 11.60 11.76 13.42 13.42 15.93 

Net loans and leases to deposits ........................... 93.03 76.70 85.58 92.78 94.99 83.23 93.31 86.58 93.47 81.10 131.51 

Net loans to total assets ......................................... 60.58 62.82 68.46 65.65 58.54 54.89 61.43 54.61 68.17 61.48 75.53 

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

Structural Changes 

55.86 81.89 79.89 70.04 49.39 47.29 59.02 52.69 69.24 75.19 56.84 

New Charters ...................................................... 98 94 2 2 0 11 39 10 7 13 18 

Institutions absorbed by mergers ........................ 152 61 79 11 1 16 34 24 34 22 22 

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

PRIOR FIRST HALVES 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions ................................... 2005 8,868 3,996 4,266 492 114 1,109 1,214 1,897 2,079 1,812 757

 ................................ 2003 9,268 4,509 4,183 466 110 1,194 1,236 2,034 2,145 1,884 775

 ................................ 2001 9,747 5,288 3,923 436 100 1,272 1,293 2,145 2,240 1,982 815 

Total assets (in billions) ................................ 2005 $10,474.3 $207.5 $1,209.7 $1,351.2 $7,705.9 $2,729.8 $2,579.4 $2,426.9 $765.4 $570.0 $1,402.8

 ................................ 2003 8,923.3 231.4 1,153.9 1,303.1 6,234.8 3,053.6 1,867.2 1,678.4 439.6 596.4 1,288.0

 ................................ 2001 7,635.9 258.6 1,043.9 1,238.8 5,094.5 2,655.4 1,574.5 1,334.8 448.9 511.0 1,111.3 

Return on assets (%) .................................... 2005 1.34 1.07 1.23 1.34 1.36 1.28 1.51 0.98 1.61 1.28 1.63

 ................................ 2003 1.38 0.96 1.19 1.46 1.42 1.25 1.37 1.36 1.55 1.41 1.66

 ................................ 2001 1.20 0.94 1.11 1.22 1.22 1.15 1.17 1.00 1.27 1.21 1.53 

Net charge-offs to loans & leases (%) .......... 2005 0.45 0.15 0.18 0.25 0.55 0.72 0.21 0.29 0.55 0.21 0.63

 ................................ 2003 0.80 0.25 0.29 0.59 0.98 1.19 0.59 0.66 1.04 0.38 0.67

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

Noncurrent assets plus 

0.68 0.22 0.27 0.69 0.79 0.78 0.60 0.59 0.87 0.35 0.79 

OREO to assets (%) .................................. 2005 0.48 0.72 0.54 0.44 0.47 0.49 0.31 0.55 0.76 0.58 0.47

 ................................ 2003 0.81 0.93 0.74 0.66 0.84 0.87 0.66 0.95 0.79 0.79 0.68

 ................................ 2001 0.79 0.78 0.66 0.73 0.83 0.76 0.86 0.85 0.75 0.77 0.67 

Equity capital ratio (%) .................................. 2005 10.38 12.16 10.29 10.86 10.26 10.70 10.00 9.30 10.83 9.64 12.34

 ................................ 2003 9.09 11.44 10.07 10.33 8.57 8.80 8.80 8.57 10.76 9.57 10.12

 ................................ 2001 8.72 11.37 9.98 9.25 8.19 8.41 9.06 8.15 9.78 9.34 8.93 

* 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 SECOND QUARTER 2006
FDIC Quarterly Banking Profile 

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

June 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 ......................................... 0.70 2.59 0.81 1.05 0.63 0.76 1.15 1.08 1.28 0.69 

Construction and development ....................................... 0.57 0.00 1.00 1.37 0.54 0.77 0.56 1.41 1.06 0.44 

Commercial real estate ................................................... 0.47 0.00 0.55 0.96 0.48 0.38 0.48 0.66 1.01 0.28 

Multifamily residential real estate .................................... 0.28 0.00 1.30 0.57 0.33 0.13 0.29 0.49 0.68 0.21 

Home equity loans .......................................................... 0.48 2.57 0.60 0.60 0.41 0.48 0.28 1.06 0.74 0.51 

Other 1-4 family residential ............................................. 0.92 2.66 0.93 1.56 0.95 0.85 1.61 1.29 1.52 0.93 

Commercial and industrial loans ........................................ 0.60 2.15 0.60 1.44 0.61 0.58 1.07 1.43 1.36 0.37 

Loans to individuals ............................................................ 1.64 2.08 1.91 2.06 1.31 1.00 1.36 1.78 1.85 1.40 

Credit card loans ............................................................. 2.06 2.14 2.10 1.62 1.90 1.60 1.25 3.23 1.61 2.01 

Other loans to individuals ................................................ 1.37 1.44 1.79 2.09 1.25 0.75 1.40 1.63 1.86 1.28 

All other loans and leases (including farm) ........................ 0.37 0.32 0.32 0.65 0.48 0.47 0.16 0.67 0.66 0.26 

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

Percent of Loans Noncurrent** 

0.78 2.05 0.88 1.08 0.67 0.76 1.24 1.20 1.32 0.67 

All real estate loans ............................................................ 0.66 1.93 1.07 0.85 0.57 0.66 0.47 0.69 0.78 0.78 

Construction and development ....................................... 0.43 0.00 1.13 0.82 0.40 0.55 0.20 0.42 0.83 0.45 

Commercial real estate ................................................... 0.57 0.00 1.07 1.06 0.55 0.44 0.34 0.73 1.05 0.53 

Multifamily residential real estate .................................... 0.29 0.00 0.47 0.99 0.33 0.15 0.21 0.34 0.75 0.34 

Home equity loans .......................................................... 0.26 1.84 0.28 0.29 0.23 0.28 0.03 0.10 0.27 0.28 

Other 1-4 family residential ............................................. 0.87 2.06 1.34 0.81 0.82 0.75 0.67 0.79 0.71 1.09 

Commercial and industrial loans ........................................ 0.70 1.29 0.83 1.32 0.66 0.83 1.28 1.29 1.02 0.53 

Loans to individuals ............................................................ 1.14 1.89 1.56 0.74 0.63 0.52 0.79 0.57 0.58 0.53 

Credit card loans ............................................................. 1.84 1.98 1.86 1.68 1.48 1.31 1.07 0.92 1.23 1.67 

Other loans to individuals ................................................ 0.66 1.04 1.37 0.68 0.53 0.20 0.69 0.54 0.55 0.31 

All other loans and leases (including farm) ........................ 0.24 0.06 0.16 0.72 0.33 0.58 0.14 0.41 0.47 0.13 

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

Percent of Loans Charged-off (net, YTD) 

0.70 1.83 0.90 0.88 0.58 0.66 0.72 0.73 0.76 0.63 

All real estate loans ............................................................ 0.05 0.89 0.10 0.04 0.06 0.04 0.06 0.01 0.05 0.04 

Construction and development ....................................... 0.03 0.00 0.14 0.01 0.03 0.04 0.01 -0.01 0.02 -0.01 

Commercial real estate ................................................... 0.03 7.15 0.01 0.08 0.03 0.02 -0.04 0.03 0.09 0.01 

Multifamily residential real estate .................................... 0.02 0.00 -0.09 0.01 0.03 0.00 0.00 0.00 0.09 0.00 

Home equity loans .......................................................... 0.12 1.36 0.13 0.01 0.15 0.07 0.04 0.01 0.08 0.10 

Other 1-4 family residential ............................................. 0.06 0.41 0.09 0.05 0.08 0.04 0.08 0.01 0.04 0.04 

Commercial and industrial loans ........................................ 0.25 2.92 0.03 0.50 0.28 0.16 2.27 0.27 0.31 0.19 

Loans to individuals ............................................................ 1.86 3.26 2.23 0.53 0.78 1.60 1.27 3.42 0.53 1.08 

Credit card loans ............................................................. 3.28 3.43 2.98 4.03 2.71 4.03 2.26 10.11 2.99 3.25 

Other loans to individuals ................................................ 0.90 1.48 1.76 0.32 0.56 0.67 0.87 0.91 0.44 0.65 

All other loans and leases (including farm) ........................ 0.11 0.00 0.00 0.00 0.28 0.55 0.27 0.12 0.00 0.06 

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

Loans Outstanding (in billions) 

0.34 3.15 0.55 0.14 0.17 0.12 0.93 0.69 0.15 0.19 

All real estate loans ............................................................ $4,383.9 $2.3 $252.1 $54.1 $2,120.8 $1,152.0 $26.8 $6.6 $46.1 $723.2 

Construction and development ....................................... 513.9 0.0 7.3 4.7 414.8 29.5 0.6 0.6 3.2 53.1 

Commercial real estate ................................................... 859.4 0.0 18.9 14.5 662.4 47.8 2.1 1.9 11.1 100.6 

Multifamily residential real estate .................................... 192.3 0.0 2.1 1.0 121.6 52.5 0.1 0.1 0.8 14.0 

Home equity loans .......................................................... 556.0 1.2 67.4 1.0 214.2 114.1 6.7 0.2 1.8 149.2 

Other 1-4 family residential ............................................. 2,155.9 1.0 113.1 14.9 675.8 907.2 17.1 3.5 26.1 397.2 

Commercial and industrial loans ........................................ 1,164.6 11.3 227.2 14.0 640.7 41.8 7.7 1.3 6.6 214.0 

Loans to individuals ............................................................ 933.1 243.9 194.0 6.7 227.2 59.9 41.7 1.6 8.7 149.3 

Credit card loans ............................................................. 374.4 221.7 75.3 0.4 23.7 17.2 11.2 0.2 0.3 24.4 

Other loans to individuals ................................................ 558.7 22.2 118.7 6.3 203.6 42.8 30.5 1.5 8.4 124.9 

All other loans and leases (including farm) ........................ 580.2 4.9 214.6 23.5 175.9 8.4 1.4 0.7 4.4 146.5 

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

Memo: Other Real Estate Owned (in millions) 

7,061.8 262.4 887.9 98.2 3,164.6 1,262.2 77.6 10.2 65.8 1,233.0 

All other real estate owned ................................................. 5,217.5 -0.2 419.1 119.2 2,713.2 1,163.6 28.0 16.8 117.9 639.8 

Construction and development ....................................... 434.9 0.3 1.0 4.9 345.3 59.6 0.5 0.7 8.4 14.2 

Commercial real estate ................................................... 1,242.0 0.1 6.0 51.2 995.8 74.0 7.1 9.6 49.2 49.1 

Multifamily residential real estate .................................... 261.9 0.0 0.0 3.3 230.5 8.9 0.1 0.0 5.8 13.3 

1-4 family residential ....................................................... 2,289.9 1.2 94.1 38.3 938.2 830.3 19.8 6.1 50.2 311.6 

Farmland ......................................................................... 66.4 0.0 0.0 21.4 36.5 0.9 0.6 0.3 4.1 2.5 

* 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.
 

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

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

June 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 ............................. 0.70 1.22 0.73 0.53 0.72 0.65 0.56 0.88 0.76 0.93 0.69 

Construction and development ........................... 0.57 0.90 0.63 0.50 0.55 0.56 0.33 0.95 0.69 0.62 0.43 

Commercial real estate ....................................... 0.47 0.97 0.59 0.44 0.38 0.49 0.29 0.66 0.54 0.55 0.39 

Multifamily residential real estate ........................ 0.28 0.72 0.51 0.33 0.20 0.15 0.21 0.69 0.56 0.63 0.17 

Home equity loans .............................................. 0.48 0.84 0.52 0.47 0.47 0.43 0.45 0.53 0.54 0.37 0.42 

Other 1-4 family residential ................................. 0.92 1.66 0.99 0.67 0.93 0.79 0.78 1.13 1.07 1.63 0.90 

Commercial and industrial loans ............................ 0.60 1.35 0.93 0.84 0.49 0.67 0.37 0.58 0.72 0.81 0.75 

Loans to individuals ............................................... 1.64 2.26 1.50 1.44 1.66 1.78 1.39 1.40 1.78 1.27 1.88 

Credit card loans ................................................. 2.06 2.02 2.64 1.49 2.08 1.93 2.14 1.81 2.13 0.80 2.37 

Other loans to individuals .................................... 1.37 2.26 1.40 1.43 1.34 1.63 1.27 1.28 1.48 1.37 0.98 

All other loans and leases (including farm) ............ 0.37 0.66 0.55 0.46 0.34 0.31 0.21 0.59 0.39 0.57 0.33 

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

Percent of Loans Noncurrent** 

0.78 1.27 0.79 0.65 0.79 0.84 0.57 0.84 0.87 0.92 0.85 

All real estate loans ................................................ 0.66 0.82 0.57 0.55 0.70 0.57 0.38 0.89 1.24 0.92 0.60 

Construction and development ........................... 0.43 0.65 0.52 0.41 0.38 0.63 0.27 0.63 0.54 0.42 0.31 

Commercial real estate ....................................... 0.57 0.91 0.61 0.58 0.52 0.59 0.41 0.80 0.66 0.66 0.35 

Multifamily residential real estate ........................ 0.29 0.70 0.47 0.33 0.22 0.16 0.36 0.69 0.49 0.89 0.10 

Home equity loans .............................................. 0.26 0.25 0.24 0.28 0.26 0.19 0.22 0.32 0.40 0.17 0.19 

Other 1-4 family residential ................................. 0.87 0.87 0.60 0.69 0.93 0.55 0.45 1.27 2.46 1.63 0.82 

Commercial and industrial loans ............................ 0.70 1.31 0.92 0.83 0.63 0.69 0.46 0.84 0.72 0.85 0.78 

Loans to individuals ............................................... 1.14 0.85 0.58 0.54 1.23 1.42 0.69 0.70 1.15 0.46 1.57 

Credit card loans ................................................. 1.84 1.18 1.91 1.16 1.88 1.74 1.50 1.58 1.86 0.66 2.22 

Other loans to individuals .................................... 0.66 0.84 0.46 0.34 0.72 1.10 0.57 0.43 0.53 0.41 0.39 

All other loans and leases (including farm) ............ 0.24 0.84 0.51 0.46 0.18 0.15 0.12 0.36 0.34 0.75 0.29 

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

Percent of Loans Charged-off (net, YTD) 

0.70 0.89 0.61 0.59 0.72 0.71 0.40 0.81 1.06 0.85 0.75 

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

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

Commercial real estate ....................................... 0.03 0.03 0.03 0.03 0.02 0.03 0.02 0.07 -0.01 0.07 -0.01 

Multifamily residential real estate ........................ 0.02 0.06 0.02 0.02 0.02 0.00 0.09 0.03 0.01 0.06 0.00 

Home equity loans .............................................. 0.12 0.06 0.04 0.12 0.12 0.05 0.10 0.19 0.15 0.13 0.02 

Other 1-4 family residential ................................. 0.06 0.06 0.04 0.05 0.06 0.04 0.04 0.12 0.04 0.05 0.04 

Commercial and industrial loans ............................ 0.25 0.34 0.32 0.39 0.21 0.18 0.16 0.14 0.43 0.36 0.66 

Loans to individuals ............................................... 1.86 0.54 0.93 1.08 2.01 2.28 0.96 1.03 1.80 0.71 3.03 

Credit card loans ................................................. 3.28 2.13 5.63 1.98 3.31 2.97 3.27 2.60 3.12 1.28 4.14 

Other loans to individuals .................................... 0.90 0.51 0.47 0.80 0.97 1.62 0.58 0.52 0.60 0.57 0.85 

All other loans and leases (including farm) ............ 0.11 0.09 0.14 0.26 0.10 0.06 0.14 0.15 0.07 0.34 0.11 

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

Loans Outstanding (in billions) 

0.34 0.13 0.13 0.19 0.40 0.51 0.15 0.23 0.36 0.19 0.53 

All real estate loans ................................................ $4,383.9 $84.0 $679.8 $686.0 $2,934.1 $837.5 $1,196.9 $859.8 $339.8 $268.0 $881.9 

Construction and development ........................... 513.9 10.5 129.2 135.6 238.6 57.3 171.6 105.7 42.6 62.6 74.0 

Commercial real estate ....................................... 859.4 23.7 232.8 212.6 390.3 168.5 220.2 182.3 77.2 82.1 129.0 

Multifamily residential real estate ........................ 192.3 1.9 27.0 44.3 119.0 52.8 24.6 30.7 8.6 6.1 69.5 

Home equity loans .............................................. 556.0 2.9 34.9 46.4 471.7 65.1 178.4 154.4 71.7 17.7 68.7 

Other 1-4 family residential ................................. 2,155.9 35.2 232.5 236.6 1,651.6 450.2 585.8 370.5 123.5 90.9 535.1 

Commercial and industrial loans ............................ 1,164.6 18.4 115.5 148.3 882.4 285.0 275.0 317.1 93.7 68.1 125.8 

Loans to individuals ............................................... 933.1 10.7 51.0 74.5 796.9 323.9 157.3 160.3 83.5 39.0 169.0 

Credit card loans ................................................. 374.4 0.2 4.2 18.0 352.0 160.0 21.2 37.9 38.8 7.1 109.3 

Other loans to individuals .................................... 558.7 10.5 46.8 56.5 444.9 163.9 136.2 122.4 44.7 32.0 59.7 

All other loans and leases (including farm) ............ 580.2 13.4 33.8 36.5 496.5 194.8 145.4 143.1 52.7 16.6 27.7 

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

Memo: Other Real Estate Owned (in millions) 

7,061.8 126.5 880.1 945.3 5,109.9 1,641.2 1,774.6 1,480.2 569.7 391.6 1,204.4 

All other real estate owned .................................... 5,217.5 249.5 1,175.7 682.1 3,110.1 510.5 1,031.8 1,594.5 723.8 666.4 690.5 

Construction and development ........................... 434.9 30.3 188.7 114.3 101.6 18.1 117.8 73.6 50.8 137.7 36.9 

Commercial real estate ....................................... 1,242.0 103.5 510.7 252.5 375.3 123.9 315.4 309.4 156.1 261.2 76.0 

Multifamily residential real estate ........................ 261.9 7.3 45.0 27.8 181.8 2.1 194.3 28.2 9.3 23.4 4.6 

1-4 family residential ........................................... 2,289.9 93.8 381.0 268.7 1,546.4 289.7 376.7 771.5 252.9 182.6 416.5 

Farmland ............................................................. 66.4 14.1 33.0 15.3 4.0 4.9 5.4 4.8 15.2 22.0 14.1 

* 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 SECOND QUARTER 2006
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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) 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd Quarter 

2005 

2nd Quarter 

2005 

%Change 

05:2-06:2 

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 .............................. 992 980 921 900 858 15.6 79 584 243 86 

Total assets of institutions reporting derivatives ........................ $8,275,783 $8,024,978 $7,718,457 $7,599,646 $7,431,780 11.4 $5,405 $242,942 $786,640 $7,240,796 

Total deposits of institutions reporting derivatives ........................ 5,404,986 5,251,045 5,095,424 4,955,900 4,831,258 11.9 4,348 191,812 569,794 4,639,032 

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

Derivative Contracts by Underlying Risk Exposure 

120,205,341 111,134,408 101,925,539 99,594,535 96,942,524 24.0 168 11,240 101,942 120,091,992 

Interest rate ....................................................................... 98,734,765 92,291,239 84,530,154 82,894,378 81,859,828 20.6 138 10,762 90,675 98,633,190 

Foreign exchange* ............................................................... 12,256,712 11,248,488 9,719,968 9,725,003 9,383,991 30.6 0 176 5,606 12,250,930 

Equity .............................................................................. 1,902,399 1,420,814 1,255,271 1,343,257 1,194,866 59.2 30 292 956 1,901,121 

Commodity & other (excluding credit derivatives) ........................ 742,040 701,417 598,125 538,213 398,589 86.2 0 4 4,469 737,566 

Credit ................................................................................ 6,569,425 5,472,451 5,822,021 5,093,684 4,105,250 60.0 0 6 235 6,569,184 

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

Derivative Contracts by Transaction Type 

120,205,341 111,134,408 101,925,539 99,594,535 96,942,524 24.0 168 11,240 101,942 120,091,992 

Swaps ................................................................................ 74,448,898 68,887,072 64,745,267 62,133,965 60,920,541 22.2 31 3,870 68,652 74,376,345 

Futures & forwards .............................................................. 13,788,772 13,044,992 12,056,681 11,928,478 11,919,720 15.7 48 2,233 17,413 13,769,078 

Purchased options .............................................................. 12,367,848 11,584,222 9,419,433 9,796,561 9,428,221 31.2 18 2,760 8,599 12,356,470 

Written options .................................................................... 12,081,016 11,207,434 9,451,156 9,841,334 9,837,801 22.8 71 2,342 6,183 12,072,421 

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

Fair Value of Derivative Contracts 

112,686,534 104,723,719 95,672,537 93,700,337 92,106,283 22.3 168 11,205 100,848 112,574,314 

Interest rate contacts ........................................................... 21,193 20,306 21,587 22,445 20,937 1.2 2 -24 -260 21,475 

Foreign exchange contacts ................................................... 4,641 4,012 2,619 73 828 460.5 0 0 -25 4,665 

Equity contracts .................................................................... -9,358 -10,632 -10,428 -5,131 -2,269 N/M 1 3 44 -9,407 

Commodity & other (excluding credit derivatives) ........................ 2,824 2,769 2,098 3,856 1,257 124.7 0 0 0 2,824 

Credit derivatives as guarantor ................................................ 7,311 10,229 -2,458 -368 -847 N/M 0 0 0 7,310 

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

Derivative Contracts by Maturity** 

-8,992 -9,223 2,430 1,876 2,514 N/M 0 -4 0 -8,988 

Interest rate contracts ........................................... < 1 year 22,675,690 20,701,310 18,483,390 16,642,441 17,138,062 32.3 50 2,018 21,288 22,652,334

 ............................ 1-5 years 31,161,527 29,322,655 27,683,385 27,693,826 26,722,873 16.6 10 5,043 26,535 31,129,939

 ............................ > 5 years 22,834,993 21,145,459 19,825,199 18,864,623 18,112,416 26.1 8 1,186 32,344 22,801,455 

Foreign exchange contracts ................................... < 1 year 7,473,995 6,279,115 5,686,683 5,437,648 5,318,532 40.5 0 141 3,434 7,470,420

 ............................ 1-5 years 1,240,610 1,455,181 1,354,036 1,355,674 1,313,066 -5.5 0 2 65 1,240,543

 ............................ > 5 years 518,620 721,164 687,179 687,274 684,755 -24.3 0 4 10 518,606 

Equity contracts ................................................... < 1 year 334,732 288,762 321,031 342,345 342,334 -2.2 5 43 197 334,486

 ............................ 1-5 years 219,638 200,405 1,427,663 1,097,572 952,801 -76.9 12 100 355 219,172

 ............................ > 5 years 44,457 34,279 383,131 268,326 166,107 -73.2 0 0 166 44,292 

Commodity & other contracts .................................. < 1 year 230,213 246,973 215,143 182,218 154,314 49.2 0 1 183 230,029

 ............................ 1-5 years 177,869 159,618 742,276 647,773 480,423 -63.0 0 3 131 177,734

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

Risk-Based Capital: Credit Equivalent Amount 

10,426 7,540 176,858 163,351 81,626 -87.2 0 0 0 10,426 

Total current exposure to tier 1 capital (%) ................................. 33.5 32.8 34.2 38.7 37.6 0.4 0.3 0.8 39.3 

Total potential future exposure to tier 1 capital (%) ..................... 90.2 88.5 81.2 73.5 76.5 0.2 0.2 1.1 105.8 

Total exposure (credit equivalent amount) to tier 1 capital (%) ...... 123.7 121.3 115.3 112.3 114.1 0.7 0.5 1.9 145.1 

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

HELD FOR TRADING 

-3.3 3.6 46.7 38.5 15.5 -121.3 0.0 0.1 -3.4 

Number of institutions reporting derivatives .............................. 150 149 132 129 121 24.0 7 39 46 58 

Total assets of institutions reporting derivatives ........................ 6,808,610 6,586,394 6,190,838 6,095,883 5,912,444 15.2 504 16,439 214,223 6,577,444 

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

Derivative Contracts by Underlying Risk Exposure 

4,400,853 4,261,012 4,047,187 3,924,681 3,795,790 15.9 400 12,915 152,026 4,235,513 

Interest rate ....................................................................... 96,221,202 89,810,147 82,009,557 80,439,786 79,452,542 21.1 8 162 31,665 96,189,367 

Foreign exchange ................................................................. 11,206,776 10,214,072 9,191,755 8,822,150 8,554,016 31.0 0 15 3,884 11,202,877 

Equity ................................................................................ 1,898,493 1,416,918 1,251,184 1,339,268 1,192,086 59.3 0 15 144 1,898,334 

Commodity & other .............................................................. 737,910 697,262 593,933 534,963 398,536 85.2 0 0 439 737,471 

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

Trading Revenues: Cash & Derivative Instruments 

110,064,380 102,138,399 93,046,429 91,136,167 89,597,180 22.8 8 192 36,132 110,028,048 

Interest rate ....................................................................... 1,665 1,242 814 1,631 371 348.8 0 0 15 1,650 

Foreign exchange ................................................................. 2,672 2,311 1,765 1,454 1,287 107.6 0 0 4 2,668 

Equity ................................................................................ 100 1,801 844 1,243 130 -23.1 0 0 1 100 

Commodity & other (including credit derivatives) ........................ 272 313 -292 507 166 63.9 0 0 0 272 

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

Share of Revenue 

4,710 5,666 3,130 4,835 1,954 141.0 0 0 19 4,690 

Trading revenues to gross revenues (%) ................................. 3.6 4.6 2.8 4.4 1.9 0.0 0.0 0.4 3.7 

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

HELD FOR PURPOSES OTHER THAN TRADING 

21.6 26.8 16.7 25.4 11.0 0.0 0.0 2.8 22.3 

Number of institutions reporting derivatives .............................. 918 904 857 838 797 15.2 73 544 219 82 

Total assets of institutions reporting derivatives ........................ 8,113,722 7,862,477 7,531,232 7,411,951 7,290,596 11.3 4,959 226,490 717,534 7,164,740 

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

Derivative Contracts by Underlying Risk Exposure 

5,293,327 5,138,121 4,960,954 4,821,531 4,723,202 12.1 3,995 178,388 518,617 4,592,327 

Interest rate ....................................................................... 2,513,563 2,481,091 2,520,597 2,454,592 2,407,286 4.4 130 10,599 59,010 2,443,824 

Foreign exchange ................................................................. 100,555 96,178 97,231 102,338 98,984 1.6 0 132 864 99,559 

Equity ................................................................................ 3,906 3,896 4,087 3,989 2,780 40.5 30 277 812 2,788 

Commodity & other .............................................................. 4,130 4,155 4,192 3,250 53 N/M 0 4 4,031 95 

Total notional amount ........................................................... 2,622,154 2,585,321 2,626,108 2,564,170 2,509,103 4.5 160 11,012 64,716 2,546,266 

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.
 

SECOND 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) 

2nd 

Quarter 

2006 

1st 

Quarter 

2006 

4th 

Quarter 

2005 

3rd 

Quarter 

2005 

2nd 

Quarter 

2005 

%Change 

05:2-06:2 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than 

$10 Billion 

Assets Securitized and Sold with Servicing Retained or with Recourse or 

Other Seller-Provided Credit Enhancements 

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

Outstanding Principal Balance by Asset Type 

125 120 118 113 108 15.7 12 44 24 45 

1-4 family residential loans ......................................................................................... $417,949 $390,805 $534,584 $480,873 $439,665 -4.9 $29 $525 $3,152 $414,243 

Home equity loans .................................................................................................... 9,632 10,768 11,486 12,654 13,097 -26.5 0 0 488 9,144 

Credit card receivables .............................................................................................. 395,891 402,214 402,939 401,782 397,797 -0.5 0 6,052 5,375 384,464 

Auto loans ............................................................................................................... 16,665 16,304 17,997 10,873 12,488 33.4 0 0 495 16,169 

Other consumer loans ................................................................................................. 24,414 22,165 22,065 18,894 18,388 32.8 0 3 0 24,411 

Commercial and industrial loans .................................................................................... 10,622 10,703 8,534 8,267 8,780 21.0 0 26 4,653 5,942 

All other loans, leases, and other assets* ....................................................................... 121,512 109,379 117,593 90,122 81,161 49.7 1 132 1,146 120,233 

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

Maximum Credit Exposure by Asset Type 

996,684 962,339 1,115,199 1,023,465 971,376 2.6 30 6,738 15,310 974,606 

1-4 family residential loans ........................................................................................... 4,375 4,153 3,812 3,729 3,762 16.3 1 2 42 4,329 

Home equity loans .................................................................................................... 2,358 2,387 2,410 2,439 2,432 -3.0 0 0 20 2,338 

Credit card receivables .............................................................................................. 24,302 23,214 23,845 23,756 23,066 5.4 0 394 212 23,695 

Auto loans ............................................................................................................... 806 798 861 594 669 20.5 0 0 21 784 

Other consumer loans ................................................................................................. 1,619 1,612 1,826 1,600 1,585 2.1 0 0 0 1,619 

Commercial and industrial loans .................................................................................... 455 464 470 557 584 -22.1 0 0 117 338 

All other loans, leases, and other assets ........................................................................ 727 777 1,017 2,970 2,538 -71.4 1 27 45 654 

Total credit exposure .................................................................................................... 34,642 33,404 34,241 35,645 34,636 0.0 2 424 458 33,758 

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

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

9,359 10,867 11,448 7,719 8,452 10.7 0 0 9,359 

1-4 family residential loans ........................................................................................... 2.1 1.7 2.4 2.3 2.3 0.0 0.0 1.4 2.1 

Home equity loans .................................................................................................... 0.6 0.5 0.5 0.4 0.4 0.0 0.0 1.8 0.5 

Credit card receivables .............................................................................................. 1.9 2.0 1.9 2.2 2.1 0.0 2.4 0.8 2.0 

Auto loans ............................................................................................................... 1.1 1.1 1.0 1.1 1.0 0.0 0.0 0.7 1.2 

Other consumer loans ................................................................................................. 2.6 2.5 2.7 2.4 2.9 0.0 0.0 0.0 2.6 

Commercial and industrial loans .................................................................................... 1.2 1.2 1.7 2.4 2.0 0.0 0.0 1.5 1.1 

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

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

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

1.8 1.6 2.0 2.0 2.0 0.0 2.1 1.1 1.8 

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

Home equity loans .................................................................................................... 0.3 0.3 0.3 0.2 0.2 0.0 0.0 1.0 0.3 

Credit card receivables .............................................................................................. 1.6 1.6 1.4 1.6 1.6 0.0 1.4 0.8 1.7 

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

Other consumer loans ................................................................................................. 2.1 2.1 1.9 2.0 2.3 0.0 0.0 0.0 2.1 

Commercial and industrial loans .................................................................................... 0.9 0.9 1.0 1.2 1.1 0.0 0.0 1.4 0.5 

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

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

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

1.2 1.2 1.2 1.2 1.3 0.0 1.3 0.9 1.2 

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

Home equity loans ...................................................................................................... 0.1 0.1 0.2 0.1 0.1 0.0 0.0 0.7 0.1 

Credit card receivables ............................................................................................... 1.9 0.9 5.8 4.4 3.0 0.0 1.7 1.0 2.0 

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

Other consumer loans ................................................................................................. 0.7 0.5 3.0 1.9 1.6 0.0 0.0 0.0 0.7 

Commercial and industrial loans .................................................................................. 0.8 0.4 3.0 2.1 1.3 0.0 0.0 2.0 -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 

0.8 0.4 2.2 1.8 1.3 0.0 1.5 1.0 0.8 

Home equity loans .................................................................................................... 650 586 389 791 771 -15.7 0 0 4 647 

Credit card receivables .............................................................................................. 81,477 72,954 98,534 96,371 96,244 -15.3 0 305 689 80,483 

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

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

3,284 2,523 2,885 2,886 2,529 29.9 0 0 1,696 1,588 

Home equity loans .................................................................................................... 12 12 55 52 124 -90.3 0 0 0 12 

Credit card receivables .............................................................................................. 137 72 93 172 74 85.1 0 29 107 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 

696 689 672 642 633 10.0 162 405 85 44 

1-4 family residential loans ......................................................................................... 54,071 58,643 50,125 45,580 45,539 18.7 975 5,980 1,650 45,466 

Home equity, credit card receivables, auto, and other consumer loans ................................. 124 902 668 594 610 -79.7 4 34 14 73 

Commercial and industrial loans .................................................................................... 6,152 6,092 5,629 5,216 5,168 19.0 0 85 105 5,962 

All other loans, leases, and other assets ........................................................................ 12,998 16,607 16,159 15,558 14,428 -9.9 2 41 420 12,535 

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

Maximum Credit Exposure by Asset Type 

73,345 82,244 72,581 66,948 65,744 11.6 981 6,139 2,188 64,037 

1-4 family residential loans ......................................................................................... 11,925 11,814 15,299 10,972 10,908 9.3 48 1,334 806 9,737 

Home equity, credit card receivables, auto, and other consumer loans ................................. 64 485 169 79 79 -19.0 3 5 6 49 

Commercial and industrial loans .................................................................................... 4,240 4,112 3,693 3,373 3,188 33.0 0 76 96 4,067 

All other loans, leases, and other assets ........................................................................ 2,161 2,678 2,701 2,655 2,556 -15.5 2 15 334 1,811 

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

Support for Securitization Facilities Sponsored by Other Institutions 

18,389 19,089 21,862 17,079 16,730 9.9 53 1,430 1,242 15,663 

Number of institutions reporting securitization facilities sponsored by others ............................. 46 45 48 43 45 2.2 19 14 3 10 

Total credit exposure ..................................................................................................... 853 746 654 1,077 1,234 -30.9 7 124 32 690 

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

Other 

4,251 3,278 2,201 2,523 2,425 75.3 0 0 0 4,251 

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

Asset-backed commercial paper conduits 

2,837,530 2,613,604 2,600,248 2,498,958 2,428,833 16.8 7,399 71,497 110,447 2,648,188 

Credit exposure to conduits sponsored by institutions and others .......................................... 19,293 17,183 18,879 19,822 20,565 -6.2 2 65 0 19,226 

Unused liquidity commitments to conduits sponsored by institutions and others ....................... 286,363 288,518 244,675 242,032 232,125 23.4 0 0 0 286,363 

Net servicing income (for the quarter) ................................................................................ 4,264 4,693 4,406 5,038 2,906 46.7 35 171 231 3,827 

Net securitization income (for the quarter) ........................................................................... 6,293 6,753 4,776 5,917 5,865 7.3 0 176 104 6,013 

Total credit exposure to Tier 1 capital (%)*** ...................................................................... 5.9 6.0 6.5 6.3 6.3 0.20 1.60 1.30 7.80 

*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 SECOND QUARTER 2006
FDIC Quarterly Banking Profile 

Insurance Fund Indicators 

■ Insured Deposit Growth Slows To 0.9 Percent After Record First Quarter 

■ DIF Reserve Ratio Is Unchanged At 1.23 Percent In The Second Quarter 

■ The Second Quarter Marks The Eighth Consecutive Quarter Without A Failure 

Total assets of the nation’s 8,778 FDIC insured institutions increased by $313.7 billion (2.8 percent) during 

the second quarter of 2006.1 Deposits increased by 

$186.1 billion during the period, funding 59.3 percent 

of the growth. Deposits in domestic offices grew by 

$105.9 billion (1.7 percent), while deposits in foreign 

offices increased by $80.2 billion (8.1 percent). This 

was the largest quarterly dollar increase for foreign 

office deposits on record (1984-present), surpassing last 

quarter’s record increase of $67.2 billion. Interest bearing deposits increased by $169.0 billion (2.8 percent), 

while noninterest-bearing deposits rose by only $17.1 

billion (1.4 percent). 

Estimated insured deposits grew by $37.4 billion (0.9 

percent), which was significantly slower than the prior 

quarter’s 2.8 percent growth rate. Among institutions 

in existence at the end of both the first and second 

quarters of 2006, estimated insured deposits increased 

during the second quarter at 5,034 institutions (57.7 

1 Except for estimated insured deposits, figures on the numbers and 

deposits of insured institutions do not include 12 U.S. branches of 

foreign banks. 

percent), decreased at 3,639 institutions (41.7 percent), 

and remained unchanged at 50 institutions. 

The DIF increased by 0.8 percent ($371 million) during the second quarter to $49,564 million (unaudited). 

The DIF received $442 million (net of expenses) from 

interest on securities and other revenue during the 

quarter, and $6 million from reducing reserves primarily 

associated with prior failures. A decline in the market 

value of available for sale securities reduced the fund by 

$77 million. 

The quarterly growth of the DIF offset the increase in 

insured deposits, leaving the DIF reserve ratio 

unchanged from the first quarter of 2006 at 1.23 percent. 

No insured institutions failed during the second quarter 

of 2006, making this the eighth consecutive quarter 

without a failure. 

SECOND 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 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd Quarter 

2005 

2nd Quarter 

2005 

1st Quarter 

2005 

4th Quarter 

2004 

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

Changes in Fund Balance: 

$49,193 $48,597 $48,373 $48,023 $47,617 $47,507 $46,990 

Assessments earned.......................................... 7 5 13 20 14 14 30 

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

Operating expenses............................................. 242 224 252 227 254 233 247 

Provision for insurance losses.............................. -6 -45 -19 -65 -57 -19 -231 

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

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

12 349 4 3 4 3 9 

securities......................................................... -77 -57 -235 -47 -72 -167 -42 

Total fund balance change.................................... 371 596 224 350 406 110 517 

Ending Fund Balance*....................................... 49,564 49,193 48,597 48,373 48,023 47,617 47,507

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

Reserve Ratio (%)............................................. 1.23 1.23 1.25 1.26 1.28 1.29 1.31 

Estimated Insured Deposits .............................. 4,000,399 4,037,769 3,890,908 3,757,660 3,830,907 3,688,510 3,622,058

 Percent change from four quarters earlier............... 8.46 7.45 7.42 7.63 6.39 5.40 4.91 

Assessment Base............................................. 6,262,482 6,389,529 6,168,135 5,872,856 6,030,969 5,793,555 5,667,610

 Percent change from four quarters earlier............... 8.09 8.80 8.83 9.43 8.35 9.19 9.56 

Number of institutions reporting........................ 8,803 8,790 8,845 8,870 8,881 8,943 8,988 

DIF Reserve Ratio* 

Percent of Insured Deposits 

1.36 

1.32 

1.28 

1.24 

1.20 

1.16 

12/01 3/03 9/03 3/04 9/04 3/05 9/05 3/06 

1.291.29 

1.30 

1.31 

1.34 

1.33 1.33 

1.32 1.32 

1.31 

1.29 

1.28 

1.26 

1.25 

1.231.23 

TABLE II-B. Failed/Assisted Institutions 

Deposit Insurance Fund Balance and Insured Deposits* 

($Millions) 

DIF-Insured 

DIF Balance Deposits 

12/01 41,374 3,210,737 

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 3,688,510 

6/05 48,023 3,757,660 

9/05 48,373 3,830,907 

12/05 48,597 3,890,908 

3/06 49,193 4,000,399 

6/06 49,564 4,037,769 

(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................................................... 

50 

$5,539 

0 

$0 

74 

$21,748 

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 June 30. 

ALL FDIC-INSURED INSTITUTIONS 15 SECOND 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) 

June 30, 2006 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

FDIC-Insured Commercial Banks ....................................................... 7,480 9,602,259 5,315,140 3,179,407 

FDIC-Supervised ......................................................................... ... 4,797 1,781,969 1,311,050 877,819 

OCC-Supervised .......................................................................... 1,780 6,461,433 3,186,121 1,791,448 

Federal Reserve-Supervised ........................................................... ... 903 1,358,856 817,969 510,141 

FDIC-Insured Savings Institutions ...................................................... 1,298 1,921,258 1,121,692 857,226

 OTS-Supervised Savings Institutions ................................................ 854 1,585,958 885,365 677,771

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

Total Commercial Banks and 

444 335,301 236,327 179,454 

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

Other FDIC-Insured Institutions 

8,778 11,523,517 6,436,832 4,036,633 

U.S. Branches of Foreign Banks ........................................................ 12 15,423 9,842 1,136 

Total FDIC-Insured Institutions .......................................................... ... 8,790 11,538,940 6,446,674 4,037,769 

* Excludes $1,068 billion in foreign office deposits, which are uninsured. 

TABLE IV-B. Assessment Base Distribution and Rate Schedules 

DIF Assessment Base Distribution, Assessable Deposits in Billions as of June 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 ........................... 

8,345 

$6,287 

40 

$11 

2 

$2 

94.9% 

98.4% 

0.5% 

0.2% 

0.0% 

0.0% 

354 

$85 

3 

$0 

0 

$0 

4.0% 

1.3% 

0.0% 

0.0% 

0.0% 

0.0% 

42 

$4 

1 

$0 

3 

$0 

0.5%

0.1% 

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 

SECOND 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 SECOND 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 instituSECOND 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 SECOND 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