FDIC QUARTERLY A

Quarterly

2020

Volume 14, Number 4

Federal Deposit 

Insurance Corporation

Quarterly Banking Profile:

Third Quarter 2020

The Importance of Community 

Banks in Paycheck Protection 

Program Lending
FDIC QUARTERLY

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

Federal Deposit Insurance Corporation and contains a comprehensive summary of the 

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

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

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

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

Single copy subscriptions of the FDIC Quarterly can be obtained through the FDIC Public 

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individual feature articles, subscribe at www.fdic.gov/about/subscriptions/index.html.

Chairman

Jelena McWilliams

Director, Division of Insurance and Research

Diane Ellis

Executive Editor

George French

Managing Editors

Rosalind Bennett

Alan Deaton

Patrick Mitchell

Shayna M. Olesiuk

Philip A. Shively

Editors

Clayton Boyce

Kathy Zeidler

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993
FDIC QUARTERLY i

2020 FDIC QUARTERLY

Volume 14 • Number 4

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

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

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

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

Quarterly Banking Profile: Third Quarter 2020

FDIC-insured institutions reported aggregate net income of $51.2 billion in third quarter 

2020, up $32.4 billion from second quarter 2020 but down $6.2 billion from the year-ago 

quarter. The quarterly increase in net income was attributable to a $47.5 billion decline 

in provision expenses between second and third quarter 2020. Lower net interest income 

drove the annual decline in net income. Slightly more than half (51.3 percent) of all 

institutions reported lower net income compared to a year ago. The return on assets ratio 

was 0.97 percent for the quarter, down from 1.25 percent in third quarter 2019 but up from 

0.36 percent in second quarter 2020. See page 1.

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

growth in quarterly net income of $659.7 million despite a 116.6 percent increase in provision 

expense and continued net interest margin (NIM) compression. Nearly half of all community 

banks (48 percent) reported higher quarterly net income in third quarter 2020 compared 

with third quarter 2019. Higher revenue from loan sales drove the improvement in quarterly 

net income. See page 15.

Insurance Fund Indicators The Deposit Insurance Fund (DIF) balance totaled $116.4 billion at the end of third quarter, 

an increase of $1.8 billion from the previous quarter. Assessment income, interest earned 

on investments, and negative provisions for insurance losses were the largest sources of the 

increase, offset partially by operating expenses and losses on available-for-sale securities. 

The DIF reserve ratio was 1.30 percent on September 30, 2020, unchanged from June 30, 2020, 

and 11 basis points lower than September 30, 2019. See page 23.

Featured Article:

The Importance of Community Banks in Paycheck 

Protection Program Lending

During the current public health emergency, community banks are playing a vital role 

in supporting small businesses through the Small Business Administration’s Paycheck 

Protection Program (PPP). Community banks throughout the country participated in the 

program, with community bank PPP loan portfolios representing over 30 percent of total 

bank PPP loans. See page 31.

QUARTERLY BANKING PROFILE Third Quarter 2020

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Net Income Improves From the Previous Quarter Due to Lower Provision Expense but 

Declines From a Year Ago Because of Lower Net Interest Income

Net Interest Margin Falls to Historic Low

Deposit Growth Stabilizes

Asset Quality Metrics Show Modest Deterioration

Industry Reports Strong Capital and Liquidity in Third Quarter 2020

Quarterly Net Income 

Increases From Second 

Quarter 2020 but Declines 

10.7 Percent From Third 

Quarter 2019

During the three months ending September 30, quarterly net income for the 5,033 

FDIC-insured commercial banks and savings institutions that filed Call Reports totaled 

$51.2 billion, up $32.4 billion (173 percent) from second quarter 2020 but down $6.2 billion 

(10.7 percent) from the year-ago quarter. The quarterly increase in net income was attributable to a $47.5 billion (76.8 percent) decline in provision expenses between second and third 

quarter 2020. Lower net interest income drove the annual decline in net income.

Slightly more than half (51.3 percent) of all banks reported lower net income compared to 

a year ago, and the share of unprofitable institutions increased to 4.7 percent.1 The return 

on assets decreased to 0.97 percent from 1.25 percent in third quarter 2019, but was up from 

0.36 percent in second quarter 2020.

Net Interest Margin 

Declines 68 Basis Points 

to 2.68 Percent From 

12 Months Ago

Quarterly net interest income totaled $128.7 billion, a decline of $10 billion (7.2 percent) 

from 12 months earlier. This is the largest percentage decrease in net interest income 

reported by the industry in the Quarterly Banking Profile (QBP). Approximately half 

(49.9 percent) of all banks reported lower net interest income from a year ago. The average 

net interest margin (NIM) declined to 2.68 percent, down 68 basis points from third quarter 

2019. This is the lowest NIM and the largest year-over-year basis point decline reported in 

the QBP. The year-over-year compression of the NIM was broad-based, as it declined for 

all five asset size groups featured in the QBP. The decline in NIM was caused by a decline 

in asset yields (down 139 basis points) that exceeded the decline in funding costs (down 

72 basis points). At 0.30 percent, the average cost of funds reached the lowest level on record 

in the history of the QBP.

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

80

-60

-40

-20

0

20

40

60

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

Chart 1

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

20

40

60

80

100

120

140

160

180

200

220

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

Chart 2

1 Industry participation counts consist of institutions existing in both reporting periods.
2020   •   Volume 14  • Number 4

2 FDIC QUARTERLY

Noninterest Income 

Increases 4.5 Percent 

Due to Net Gains on 

Loan Sales

Noninterest income increased by $3.2 billion (4.5 percent) to $72.6 billion from 12 months 

ago. Over half of all banks (56 percent) reported an increase. The year-over-year movement in noninterest income was largely attributable to growth in net gains on loan sales of 

$4.1 billion (95.5 percent). An increase in trading revenue of $1.7 billion (22.6 percent) also 

contributed to the annual growth in noninterest income. Declines in “all other noninterest income” (which includes miscellaneous items such as merchant credit card fees, annual 

credit card fees, and credit card interchange fees) of $2.4 billion (7.1 percent) and service 

charge on deposit accounts of $1.3 billion (13.6 percent) partially offset the increase.

Noninterest Expense 

Climbs 3 Percent 

From a Year Ago

Noninterest expense totaled $123.6 billion in third quarter 2020, an increase of $3.6 billion 

(3.0 percent) from the previous year. The increase in noninterest expense was broad-based, 

with two-thirds (66.7 percent) of banks reporting growth. The increase was attributable 

to a $3.7 billion (6.6 percent) increase in salary and employee benefits expense. However, 

average assets per employee also rose by $1.3 million from a year ago to $10.2 million.

Quarterly Provisions for 

Credit Losses Decline 

From One Quarter Ago

Quarterly provisions for credit losses totaled $14.4 billion, down $47.5 billion (76.8 percent) 

from second quarter 2020 but up $492 million (3.5 percent) from third quarter 2019.2 During 

the third quarter, 254 banks used the current expected credit loss (CECL) accounting standard. CECL adopters reported $10.8 billion in provisions for credit losses in third quarter, 

down 8.2 percent from one year ago and down 80.7 percent from one quarter ago. NonCECL adopters reported $3.5 billion in provisions for credit losses, up 83.4 percent from 

the year-ago quarter but down 36.4 percent from the prior quarter. Just over half of banks 

(52.9 percent) reported higher provisions for credit losses than a year ago.

Net Charge-Off Rate 

Decreases by 5 Basis 

Points From a Year Ago

The net charge-off rate declined by 5 basis points from a year ago to 0.46 percent. Net 

charge-offs decreased by $418.2 million (3.2 percent) year over year. The annual decrease 

in total net charge-offs was attributable to a $1.3 billion (15.9 percent) decline in credit 

card net charge-offs. This decline offset increases in charge-offs for the commercial and 

industrial (C&I) loan portfolio, which increased by $898.5 million (39.3 percent). The C&I 

net charge-off rate rose by 8 basis points from a year ago to 0.49 percent, but remains well 

below the post-crisis high of 2.72 percent reported in fourth quarter 2009.

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

Quarterly Net Charge-O Rate

Noncurrent Rate

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

Chart 3

Source: FDIC.

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

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio

All FDIC-Insured Institutions

0

50

100

150

200

250

300

350

400

450

 Loan-Loss Reserves ($) 

 Noncurrent Loans ($)

 Noncurrents Adjusted for GNMA Guaranteed Loans ($)

 Coverage Ratio (%) 

 Coverage Adjusted for GNMA Guaranteed Loans (%)

0

50

100

150

200

250

300

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

Chart 4

2 For institutions that have not adopted the CECL accounting methodology, provisions for credit losses include only 

provisions for loan and lease losses. The comparison of CECL and non-CECL adopters holds constant the adopters from 

the most recent quarter.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Noncurrent Loan Rate 

Increases to 1.17 Percent

The average noncurrent rate increased by 9 basis points from the previous quarter to 

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

rose $9.3 billion (7.9 percent) to $127.5 billion in the third quarter. Just under half of 

all institutions (47.7 percent) reported increases in noncurrent balances from second 

quarter 2020. The increase in noncurrent loan balances was driven by a $10.2 billion 

(22 percent) increase in the 1–4 family residential mortgage loan portfolio. Contributing 

to this increase were $4.2 billion of loans previously in Ginnie Mae securities, which are 

partially or wholly guaranteed by the U.S. government, that have been brought back on 

banks’ books. The noncurrent rate for 1–4 family residential mortgage loans increased by 

44 basis points to 2.53 percent. Nonfarm nonresidential (NFNR) noncurrent balances rose 

$1.5 billion (12 percent), resulting in a 9 basis point increase in the NFNR noncurrent rate to 

0.87 percent.

Total Assets Increase 

Slightly From the 

Previous Quarter

The banking industry reported total assets of $21.2 trillion in the third quarter, a modest 

increase of $81.6 billion (0.4 percent) from second quarter 2020. Cash and balances due 

from depository institutions decreased by $54.2 billion (1.9 percent), while banks increased 

their securities holdings by $275.3 billion (6.1 percent). Most of this growth was attributable 

to mortgage-backed securities, which rose by $147.0 billion (5.5 percent), and U.S. Treasury 

securities, which increased by $110.3 billion (13.3 percent).

Loan Balances Fall 

Slightly From the 

Previous Quarter

Total loan and lease balances decreased by $84.5 billion (0.8 percent) from the previous 

quarter. A $150.3 billion (5.6 percent) decline in the C&I loan portfolio drove the overall 

decline. Increases in 1–4 family mortgage balances of $24.1 billion (1.1 percent) and loans 

to nondepository financial institutions of $20.6 billion (3.9 percent) partially offset the 

decline in C&I loan balances. Small Business Administration-guaranteed Paycheck Protection Program (PPP) loans grew by $4.9 billion (1 percent) from the previous quarter to 

$489.7 billion. Total loan and lease balances increased $510.3 billion (4.9 percent) from the 

previous year, largely driven by strong C&I loan growth in the first half of 2020.

Change in Quarterly Loan-Loss Provisions

All FDIC-Insured Institutions

Quarter-Over-Quarter Change

($ Billions)

Source: FDIC.

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

-60

-50

-40

-30

-20

-10

0

10

20

30

40

50

Chart 5

-8

-4

0

4

8

12

Quarterly Change in Loan Balances 

All FDIC-Insured Institutions

Source: FDIC.

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

loan balances back onto banks’ balance sheets in the first quarter of 2010. Although the total 

amount consolidated cannot be precisely quantified, the industry would have reported a decline 

in loan balances for the quarter absent this change in accounting standards.

$ Billions Percent

-300

-200

-100

0

100

200

300

400

500

Quarterly Change (Le Axis)

12-Month Growth Rate (Right Axis)

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

Chart 6
2020   •   Volume 14  • Number 4

4 FDIC QUARTERLY

Deposit Growth Stabilizes Total deposit balances increased by $156.0 billion (0.9 percent) from the previous quarter. 

This growth is down from the second quarter increase of $1.18 trillion (7.5 percent). 

Noninterest-bearing account balances rose by $141.2 billion (3.3 percent), and interestbearing account balances increased by $10.7 billion (0.1 percent). Nondeposit liabilities 

declined by $88.1 billion (7.3 percent) from the previous quarter. 3 The decline in nondeposit 

liabilities was attributable to lower Federal Home Loan Bank advances, which fell by 

$74.0 billion (19.5 percent). Over the past 12 months, total deposits rose by $2.8 trillion 

(19.9 percent), led by large increases in the first and second quarter of this year.

Equity Capital Rises From 

the Previous Quarter

Equity capital totaled $2.2 trillion in the third quarter, an increase of $36.3 billion 

(1.7 percent) from the previous quarter. Retained earnings contributed $35.4 billion to equity 

formation in the third quarter, as net income of $51.2 billion exceeded declared dividends 

of $15.8 billion. Eight insured institutions with $668 million in total assets were below the 

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

One New Bank Opens in 

Third Quarter 2020

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

from 5,066 to 5,033 during third quarter 2020. One new bank was added, 33 institutions 

were absorbed by mergers, and no banks failed. One institution did not file a Call Report 

this quarter because it sold most of its assets and is ceasing operations. The number of 

institutions on the FDIC’s “Problem Bank List” increased to 56 from 52 last quarter. Total 

assets of problem banks increased from $48.1 billion to $53.9 billion.

Authors:

Angela Hinton

Senior Financial Analyst

Division of Insurance and Research

James K. Presley-Nelson

Senior Financial Analyst

Division of Insurance and Research

Source: FDIC.

Number

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

0

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

300

350

400

450

500

Assets ($ Billions)

Number of Problem Banks 

Assets of Problem Banks

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

Chart 8

Quarterly Change in Deposits

All FDIC-Insured Institutions

Quarterly Change ($ Billions)

Source: FDIC.

-200

0

200

400

600

800

1,000

1,200

1,400

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

Chart 7

3 Nondeposit liabilities include federal funds purchased, repurchase agreements, Federal Home Loan Bank advances, and 

secured and unsecured borrowings.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2020** 2019** 2019 2018 2017 2016 2015

Return on assets (%) 0.58 1.33 1.29 1.35 0.97 1.04 1.04

Return on equity (%) 5.53 11.67 11.38 11.98 8.60 9.27 9.29

Core capital (leverage) ratio (%) 8.80 9.68 9.66 9.70 9.63 9.48 9.59

Noncurrent assets plus other real estate owned to assets (%) 0.63 0.56 0.55 0.60 0.73 0.86 0.97

Net charge-offs to loans (%) 0.53 0.50 0.52 0.48 0.50 0.47 0.44

Asset growth rate (%) 14.81 4.58 3.91 3.03 3.79 5.09 2.66

Net interest margin (%) 2.88 3.38 3.36 3.40 3.25 3.13 3.08

Net operating income growth (%) -53.70 1.02 -3.14 45.45 -3.27 4.43 7.11

Number of institutions reporting 5,033 5,258 5,177 5,406 5,670 5,913 6,182

Commercial banks 4,401 4,588 4,518 4,715 4,918 5,112 5,338

Savings institutions 632 670 659 691 752 801 844

Percentage of unprofitable institutions (%) 4.79 3.59 3.75 3.44 5.61 4.48 4.82

Number of problem institutions 56 55 51 60 95 123 183

Assets of problem institutions (in billions) $54 $49 $46 $48 $14 $28 $47

Number of failed institutions 2 1 4 0 8 5 8

* Excludes insured branches of foreign banks (IBAs).

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

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

(dollar figures in millions)  3rd Quarter

2020

2nd Quarter

2020

3rd Quarter

2019

%Change 

19Q3-20Q3

Number of institutions reporting 5,033 5,066 5,258 -4.3

Total employees (full-time equivalent) 2,071,910 2,077,846 2,065,840 0.3

CONDITION DATA

Total assets $21,219,742 $21,138,118 $18,481,915 14.8

Loans secured by real estate 5,144,479 5,110,724 5,002,907 2.8

1-4 Family residential mortgages 2,240,674 2,216,584 2,182,663 2.7

Nonfarm nonresidential 1,556,388 1,545,706 1,491,643 4.3

 Construction and development 386,056 380,560 360,045 7.2

Home equity lines 312,896 324,469 349,858 -10.6

Commercial & industrial loans 2,538,844 2,689,163 2,216,885 14.5

Loans to individuals 1,709,844 1,704,152 1,779,248 -3.9

 Credit cards 796,450 808,171 892,881 -10.8

Farm loans 76,779 78,088 80,291 -4.4

Other loans & leases 1,444,278 1,416,798 1,323,239 9.2

Less: Unearned income 3,621 3,804 2,275 59.1

Total loans & leases 10,910,604 10,995,121 10,400,294 4.9

Less: Reserve for losses* 244,266 242,787 125,171 95.2

Net loans and leases 10,666,338 10,752,334 10,275,123 3.8

Securities** 4,790,986 4,515,734 3,936,180 21.7

Other real estate owned 4,548 5,021 6,190 -26.5

Goodwill and other intangibles 385,497 386,552 394,036 -2.2

All other assets 5,372,373 5,478,478 3,870,387 38.8

Total liabilities and capital 21,219,742 21,138,118 18,481,915 14.8

Deposits 17,116,653 16,960,605 14,276,906 19.9

 Domestic office deposits 15,670,039 15,518,214 12,981,056 20.7

Foreign office deposits 1,446,614 1,442,391 1,295,850 11.6

Other borrowed funds 1,207,194 1,301,411 1,460,195 -17.3

Subordinated debt 68,489 69,595 69,335 -1.2

All other liabilities 641,647 657,045 574,098 11.8

Total equity capital (includes minority interests) 2,185,759 2,149,462 2,101,382 4.0

 Bank equity capital 2,183,201 2,146,898 2,098,263 4.1

Loans and leases 30-89 days past due 58,408 55,684 63,972 -8.7

Noncurrent loans and leases 127,550 118,258 95,544 33.5

Restructured loans and leases 49,658 48,299 51,016 -2.7

Mortgage-backed securities 2,798,767 2,651,813 2,369,462 18.1

Earning assets 19,319,934 19,230,964 16,686,809 15.8

FHLB Advances 304,506 378,489 498,766 -39.0

Unused loan commitments 8,411,393 8,366,938 8,133,442 3.4

Trust assets 17,787,796 17,007,737 20,762,219 -14.3

Assets securitized and sold 505,520 550,282 539,466 -6.3

Notional amount of derivatives 181,124,835 181,706,554 203,562,352 -11.0

INCOME DATA

First Three 

Quarters 2020

First Three 

Quarters 2019 %Change 3rd Quarter 2020 3rd Quarter 2019 %Change 19Q3-20Q3

Total interest income $461,563 $539,450 -14.4 143,211 180,840 -20.8

Total interest expense 65,182 123,514 -47.2 14,468 42,080 -65.6

Net interest income 396,380 415,936 -4.7 128,743 138,760 -7.2

Provision for credit losses*** 128,741 40,623 216.9 14,385 13,893 3.5

Total noninterest income 210,049 200,864 4.6 72,605 69,452 4.5

Total noninterest expense 373,850 349,534 7.0 123,649 120,088 3.0

Securities gains (losses) 6,731 1,046 543.3 2,480 -956 N/M

Applicable income taxes 21,934 47,396 -53.7 14,516 15,874 -8.6

Extraordinary gains, net**** -110 167 N/M -5 -2 -150.0

Total net income (includes minority interests) 88,526 180,459 -50.9 51,274 57,399 -10.7

 Bank net income 88,352 180,268 -51.0 51,187 57,337 -10.7

Net charge-offs 42,869 38,563 11.2 12,686 13,104 -3.2

Cash dividends 62,242 134,900 -53.9 15,818 47,765 -66.9

Retained earnings 26,110 45,368 -42.5 35,369 9,572 269.5

Net operating income 83,068 179,431 -53.7 49,341 58,156 -15.2

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

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

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

this item represents the provision for loan and lease losses.

**** See Notes to Users for explanation. N/M - Not Meaningful
2020   •   Volume 14  • Number 4

6 FDIC QUARTERLY

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

Asset Concentration Groups*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,033 11 5 1,182 2,768 303 36 230 430 68

Commercial banks 4,401 10 5 1,172 2,493 77 25 208 357 54

Savings institutions 632 1 0 10 275 226 11 22 73 14

Total assets (in billions) $21,219.7 $508.6 $5,288.0 $281.0 $7,505.5 $635.9 $132.0 $40.1 $86.8 $6,742.0

Commercial banks 19,897.4 423.5 5,288.0 275.3 7,050.0 93.8 129.4 36.6 68.4 6,532.3

Savings institutions 1,322.4 85.1 0.0 5.7 455.5 542.1 2.6 3.4 18.3 209.7

Total deposits (in billions) 17,116.7 356.2 4,007.9 233.0 6,119.4 558.4 110.8 31.8 73.1 5,626.1

Commercial banks 16,033.4 289.7 4,007.9 230.2 5,771.0 80.1 108.6 29.6 58.3 5,457.9

Savings institutions 1,083.3 66.5 0.0 2.7 348.4 478.3 2.2 2.2 14.9 168.1

Bank net income (in millions) 51,187 3,806 12,656 918 19,661 1,645 482 262 250 11,507

Commercial banks 48,049 3,491 12,656 865 18,519 377 476 94 211 11,361

Savings institutions 3,137 315 0 53 1,142 1,268 6 167 39 146

Performance Ratios (annualized, %)

Yield on earning assets 2.98 10.57 2.22 4.05 3.41 2.12 3.85 2.68 3.69 2.49

Cost of funding earning assets 0.30 1.30 0.17 0.61 0.37 0.24 0.75 0.34 0.47 0.24

Net interest margin 2.68 9.28 2.05 3.44 3.05 1.89 3.10 2.34 3.21 2.25

Noninterest income to assets 1.37 4.38 1.64 0.71 1.13 1.13 0.33 5.04 1.24 1.25

Noninterest expense to assets 2.34 6.20 2.20 2.33 2.36 1.60 1.17 4.12 2.84 2.21

Credit loss provision to assets** 0.27 2.85 0.10 0.17 0.30 0.04 0.24 0.06 0.12 0.21

Net operating income to assets 0.93 3.00 0.91 1.27 1.02 1.03 1.44 2.43 1.12 0.65

Pretax return on assets 1.24 4.16 1.23 1.49 1.29 1.36 1.98 3.29 1.34 0.93

Return on assets 0.97 3.00 0.96 1.31 1.05 1.06 1.48 2.64 1.16 0.68

Return on equity 9.47 26.13 10.62 11.43 9.42 12.18 15.65 15.69 9.53 6.81

Net charge-offs to loans and leases 0.46 3.63 0.67 0.12 0.23 0.01 0.85 0.12 0.08 0.39

Loan and lease loss provision to 

net charge-offs 112.73 105.87 44.07 201.75 188.91 1,925.64 38.13 177.13 252.01 111.89

Efficiency ratio 60.58 46.47 62.98 58.68 58.56 53.83 34.90 56.93 66.71 66.59

% of unprofitable institutions 4.73 0.00 0.00 3.98 3.79 9.90 8.33 13.04 4.42 5.88

% of institutions with earnings gains 48.72 54.55 20.00 40.44 54.95 45.21 52.78 33.04 41.40 52.94

Structural Changes

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

Institutions absorbed by mergers 33 1 0 7 24 0 0 0 0 1

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

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%) 2019 1.25 3.43 1.23 1.45 1.15 1.30 1.53 3.43 1.23 1.15

 2017 1.12 2.21 1.01 1.34 1.13 0.96 1.23 3.06 0.98 1.07

 2015 1.03 2.83 0.84 0.37 1.00 0.57 1.08 2.56 0.76 1.08

Net charge-offs to loans & leases (%) 2019 0.51 3.94 0.71 0.15 0.24 0.03 0.78 0.16 0.12 0.37

 2017 0.46 3.75 0.54 0.10 0.20 0.03 0.56 0.25 0.15 0.40

 2015 0.40 2.61 0.49 0.08 0.20 0.12 0.58 0.19 0.18 0.37

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

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

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

FDIC QUARTERLY 7

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

Asset Size Distribution Geographic Regions*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,033 981 3,135 766 138 13 598 572 1,079 1,300 1,112 372

Commercial banks 4,401 862 2,771 634 122 12 312 519 930 1,260 1,042 338

Savings institutions 632 119 364 132 16 1 286 53 149 40 70 34

Total assets (in billions) $21,219.7 $59.0 $1,089.7 $2,019.0 $6,198.1 $11,854.0 $3,887.6 $4,349.6 $5,003.2 $4,093.2 $1,719.4 $2,166.6

Commercial banks 19,897.4 52.1 949.8 1,682.7 5,666.8 11,546.1 3,475.2 4,237.1 4,895.5 4,056.5 1,211.8 2,021.3

Savings institutions 1,322.4 6.9 139.9 336.4 531.3 308.0 412.4 112.5 107.7 36.7 507.6 145.4

Total deposits (in billions) 17,116.7 48.6 907.0 1,648.0 5,027.4 9,485.6 3,137.1 3,586.3 3,837.2 3,318.3 1,455.6 1,782.1

Commercial banks 16,033.4 43.4 795.1 1,383.5 4,610.0 9,201.3 2,818.3 3,495.5 3,758.0 3,289.3 1,007.9 1,664.5

Savings institutions 1,083.3 5.2 111.9 264.5 417.4 284.3 318.8 90.9 79.2 29.0 447.7 117.7

Bank net income (in millions) 51,187 131 3,410 5,989 17,847 23,810 8,652 9,405 14,309 6,639 4,895 7,286

Commercial banks 48,049 120 2,904 5,011 16,807 23,206 7,734 9,269 13,650 6,506 4,102 6,788

Savings institutions 3,137 10 506 978 1,039 604 918 136 659 132 794 498

Performance Ratios (annualized, %)

Yield on earning assets 2.98 3.87 3.95 3.75 3.68 2.37 2.91 2.98 2.52 2.92 3.24 3.98

Cost of funding earning assets 0.30 0.56 0.56 0.48 0.44 0.17 0.37 0.26 0.20 0.27 0.31 0.53

Net interest margin 2.68 3.31 3.38 3.27 3.24 2.20 2.53 2.72 2.33 2.65 2.94 3.45

Noninterest income to assets 1.37 1.44 1.41 1.41 1.35 1.37 1.19 1.17 1.76 1.20 1.25 1.66

Noninterest expense to assets 2.34 3.42 2.94 2.64 2.42 2.18 2.09 2.29 2.32 2.45 2.38 2.67

Credit loss provision to assets** 0.27 0.11 0.21 0.35 0.47 0.16 0.31 0.25 0.13 0.30 0.25 0.53

Net operating income to assets 0.93 0.85 1.22 1.16 1.14 0.76 0.87 0.84 1.10 0.59 1.16 1.32

Pretax return on assets 1.24 1.01 1.48 1.50 1.48 1.05 1.13 1.11 1.45 0.91 1.39 1.73

Return on assets 0.97 0.89 1.26 1.19 1.16 0.80 0.89 0.86 1.15 0.65 1.16 1.35

Return on equity 9.47 6.56 11.19 10.96 10.66 8.33 8.38 8.03 11.85 6.69 11.26 12.87

Net charge-offs to loans and leases 0.46 0.09 0.11 0.18 0.61 0.49 0.43 0.49 0.39 0.51 0.22 0.68

Loan and lease loss provision to 

net charge-offs 112.73 201.87 287.37 277.95 123.69 78.78 136.03 99.15 66.41 120.56 220.91 120.79

Efficiency ratio 60.58 75.73 63.97 57.83 54.60 64.70 59.06 62.23 60.04 67.17 59.31 52.62

% of unprofitable institutions 4.73 12.03 3.32 1.70 2.17 0.00 5.69 7.17 4.45 3.38 4.41 5.91

% of institutions with earnings gains 48.72 35.07 51.39 55.61 47.83 38.46 50.67 45.80 54.31 48.62 43.44 50.00

Structural Changes

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

Institutions absorbed by mergers 33 9 19 4 1 0 9 3 6 6 9 0

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

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%) 2019 1.25 1.03 1.35 1.39 1.28 1.20 1.10 1.18 1.36 1.15 1.44 1.47

 2017 1.12 1.02 1.16 1.15 1.21 1.05 0.96 1.11 1.13 1.04 1.20 1.49

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

Net charge-offs to loans & leases (%) 2019 0.51 0.24 0.13 0.22 0.67 0.51 0.47 0.53 0.43 0.51 0.26 0.79

 2017 0.46 0.16 0.13 0.22 0.64 0.46 0.53 0.58 0.25 0.49 0.26 0.59

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

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

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

represents the provision for loan and lease losses.
2020   •   Volume 14  • Number 4

8 FDIC QUARTERLY

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

Asset Concentration Groups*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,033 11 5 1,182 2,768 303 36 230 430 68

Commercial banks 4,401 10 5 1,172 2,493 77 25 208 357 54

Savings institutions 632 1 0 10 275 226 11 22 73 14

Total assets (in billions) $21,219.7 $508.6 $5,288.0 $281.0 $7,505.5 $635.9 $132.0 $40.1 $86.8 $6,742.0

Commercial banks 19,897.4 423.5 5,288.0 275.3 7,050.0 93.8 129.4 36.6 68.4 6,532.3

Savings institutions 1,322.4 85.1 0.0 5.7 455.5 542.1 2.6 3.4 18.3 209.7

Total deposits (in billions) 17,116.7 356.2 4,007.9 233.0 6,119.4 558.4 110.8 31.8 73.1 5,626.1

Commercial banks 16,033.4 289.7 4,007.9 230.2 5,771.0 80.1 108.6 29.6 58.3 5,457.9

Savings institutions 1,083.3 66.5 0.0 2.7 348.4 478.3 2.2 2.2 14.9 168.1

Bank net income (in millions) 88,352 4,085 21,972 2,678 31,672 4,656 1,307 762 679 20,540

Commercial banks 80,943 3,355 21,972 2,571 29,168 1,121 1,295 309 586 20,564

Savings institutions 7,409 730 0 107 2,504 3,535 11 453 93 -24

Performance Ratios (annualized, %)

Yield on earning assets 3.35 11.31 2.64 4.34 3.71 2.40 4.09 2.99 3.96 2.87

Cost of funding earning assets 0.47 1.62 0.35 0.73 0.53 0.31 0.93 0.44 0.56 0.41

Net interest margin 2.88 9.69 2.29 3.61 3.18 2.10 3.16 2.55 3.40 2.47

Noninterest income to assets 1.38 4.23 1.76 0.67 1.06 1.06 0.54 4.98 1.09 1.27

Noninterest expense to assets 2.46 6.28 2.25 2.40 2.59 1.65 1.05 4.13 2.92 2.27

Credit loss provision to assets** 0.85 5.81 0.85 0.20 0.64 0.09 0.75 0.08 0.13 0.79

Net operating income to assets 0.55 1.07 0.54 1.29 0.56 1.06 1.35 2.56 1.07 0.39

Pretax return on assets 0.73 1.39 0.73 1.51 0.76 1.38 1.84 3.28 1.26 0.50

Return on assets 0.58 1.07 0.58 1.34 0.60 1.07 1.36 2.67 1.11 0.42

Return on equity 5.53 9.09 6.27 11.45 5.15 12.34 13.99 15.82 8.86 4.08

Net charge-offs to loans and leases 0.53 4.06 0.74 0.13 0.25 0.02 0.56 0.24 0.07 0.46

Loan and lease loss provision to 

net charge-offs 298.91 182.37 330.27 221.77 367.71 1,882.33 184.56 121.60 324.69 344.00

Efficiency ratio 59.24 46.17 59.18 58.76 59.91 52.85 28.92 55.94 68.09 63.42

% of unprofitable institutions 4.79 36.36 0.00 2.54 4.62 10.89 13.89 9.57 3.72 4.41

% of institutions with earnings gains 49.27 27.27 20.00 49.41 51.84 40.26 52.78 36.96 47.21 41.18

Condition Ratios (%)

Earning assets to total assets 91.05 95.06 88.71 93.61 91.33 97.67 97.29 93.15 93.55 91.37

Loss allowance to:

Loans and leases 2.24 10.29 3.18 1.44 1.52 0.69 2.26 1.48 1.21 2.09

Noncurrent loans and leases 191.51 904.17 270.74 126.81 149.51 79.13 525.00 131.80 128.56 142.82

Noncurrent assets plus

other real estate owned to assets 0.63 0.84 0.40 0.83 0.73 0.24 0.33 0.42 0.62 0.70

Equity capital ratio 10.29 11.51 9.11 11.55 11.25 8.63 9.31 17.08 12.22 10.10

Core capital (leverage) ratio 8.80 12.67 7.99 10.86 9.34 7.85 9.77 15.91 11.71 8.46

Common equity tier 1 capital ratio*** 13.75 16.86 14.99 14.44 12.28 20.97 19.93 38.18 19.84 13.88

Tier 1 risk-based capital ratio*** 13.84 17.02 15.06 14.44 12.38 20.97 20.04 38.18 19.84 13.96

Total risk-based capital ratio*** 15.36 18.94 16.45 15.59 13.89 21.41 20.91 38.96 20.91 15.64

Net loans and leases to deposits 62.32 94.45 41.56 78.03 82.17 30.21 87.06 33.08 66.35 55.64

Net loans to total assets 50.27 66.15 31.50 64.70 66.99 26.53 73.09 26.23 55.93 46.43

Domestic deposits to total assets 73.85 66.95 52.44 82.91 81.11 87.64 83.93 79.29 84.30 81.02

Structural Changes

New reporters 3 0 0 0 0 0 0 3 0 0

Institutions absorbed by mergers 137 1 0 23 106 3 0 0 2 2

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

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions 2019 5,258 12 5 1,324 2,756 393 68 217 433 50

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

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

Total assets (in billions) 2019 $18,481.9 $521.8 $4,509.3 $285.2 $6,674.3 $386.1 $225.9 $38.2 $76.3 $5,764.9

 2017 17,242.5 518.3 4,205.0 285.0 5,867.7 366.0 260.4 46.0 90.6 5,603.4

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

Return on assets (%) 2019 1.33 3.30 1.24 1.36 1.21 1.19 1.43 3.32 1.19 1.34

 2017 1.10 2.09 0.97 1.24 1.06 1.01 1.15 2.99 0.96 1.12

 2015 1.05 2.91 0.88 0.91 0.99 0.74 1.12 2.60 0.50 1.08

Net charge-offs to loans & leases (%) 2019 0.50 4.19 0.71 0.15 0.20 0.02 0.79 0.12 0.11 0.38

 2017 0.48 3.90 0.56 0.14 0.21 0.09 0.60 0.19 0.14 0.39

 2015 0.42 2.72 0.56 0.08 0.19 0.13 0.58 0.18 0.17 0.38

Noncurrent assets plus 

OREO to assets (%) 2019 0.56 1.33 0.36 0.86 0.60 1.15 0.48 0.41 0.68 0.54

 2017 0.73 1.19 0.48 0.86 0.74 1.56 0.37 0.54 0.86 0.80

 2015 0.99 0.83 0.72 0.75 0.96 1.95 1.00 0.70 1.16 1.19

Equity capital ratio (%) 2019 11.35 12.72 10.14 11.94 12.18 11.03 11.05 18.10 13.22 11.16

 2017 11.31 15.69 9.97 11.56 12.07 11.27 10.10 15.88 11.91 11.12

 2015 11.33 14.83 9.98 11.49 11.81 11.63 10.22 15.52 12.10 11.42

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

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

represents the provision for loan and lease losses.

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

FDIC QUARTERLY 9

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

Asset Size Distribution Geographic Regions*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,033 981 3,135 766 138 13 598 572 1,079 1,300 1,112 372

Commercial banks 4,401 862 2,771 634 122 12 312 519 930 1,260 1,042 338

Savings institutions 632 119 364 132 16 1 286 53 149 40 70 34

Total assets (in billions) $21,219.7 $59.0 $1,089.7 $2,019.0 $6,198.1 $11,854.0 $3,887.6 $4,349.6 $5,003.2 $4,093.2 $1,719.4 $2,166.6

Commercial banks 19,897.4 52.1 949.8 1,682.7 5,666.8 11,546.1 3,475.2 4,237.1 4,895.5 4,056.5 1,211.8 2,021.3

Savings institutions 1,322.4 6.9 139.9 336.4 531.3 308.0 412.4 112.5 107.7 36.7 507.6 145.4

Total deposits (in billions) 17,116.7 48.6 907.0 1,648.0 5,027.4 9,485.6 3,137.1 3,586.3 3,837.2 3,318.3 1,455.6 1,782.1

Commercial banks 16,033.4 43.4 795.1 1,383.5 4,610.0 9,201.3 2,818.3 3,495.5 3,758.0 3,289.3 1,007.9 1,664.5

Savings institutions 1,083.3 5.2 111.9 264.5 417.4 284.3 318.8 90.9 79.2 29.0 447.7 117.7

Bank net income (in millions) 88,352 386 9,296 14,706 21,464 42,499 14,796 13,120 25,953 10,845 11,216 12,421

Commercial banks 80,943 360 8,060 12,664 19,293 40,566 12,856 13,150 24,521 10,537 8,699 11,179

Savings institutions 7,409 26 1,236 2,043 2,171 1,933 1,940 -30 1,432 308 2,517 1,242

Performance Ratios (annualized, %)

Yield on earning assets 3.35 4.15 4.26 4.06 4.04 2.78 3.25 3.39 2.90 3.33 3.53 4.37

Cost of funding earning assets 0.47 0.65 0.68 0.63 0.62 0.35 0.57 0.42 0.35 0.48 0.42 0.71

Net interest margin 2.88 3.50 3.57 3.42 3.42 2.43 2.68 2.97 2.55 2.85 3.11 3.65

Noninterest income to assets 1.38 1.41 1.30 1.27 1.32 1.44 1.22 1.23 1.79 1.18 1.13 1.63

Noninterest expense to assets 2.46 3.52 3.03 2.71 2.71 2.24 2.26 2.49 2.43 2.44 2.42 2.92

Credit loss provision to assets** 0.85 0.13 0.25 0.49 1.12 0.83 0.75 0.91 0.76 0.98 0.52 1.07

Net operating income to assets 0.55 0.88 1.18 1.01 0.45 0.46 0.52 0.39 0.70 0.31 0.91 0.76

Pretax return on assets 0.73 1.04 1.41 1.29 0.67 0.60 0.66 0.54 0.91 0.40 1.13 1.11

Return on assets 0.58 0.91 1.22 1.04 0.49 0.50 0.53 0.42 0.73 0.36 0.95 0.80

Return on equity 5.53 6.60 10.46 9.20 4.32 5.02 4.84 3.75 7.32 3.68 8.94 7.41

Net charge-offs to loans and leases 0.53 0.13 0.11 0.20 0.70 0.54 0.49 0.58 0.43 0.57 0.32 0.74

Loan and lease loss provision to 

net charge-offs 298.91 165.47 326.86 336.88 246.04 346.46 282.02 288.20 370.22 337.73 301.66 216.37

Efficiency ratio 59.24 75.61 64.89 59.80 54.49 61.40 58.70 59.71 59.34 63.77 59.64 52.26

% of unprofitable institutions 4.79 10.09 3.44 2.35 11.59 0.00 8.36 8.57 4.45 1.92 3.87 6.99

% of institutions with earnings gains 49.27 40.47 54.67 44.52 18.84 15.38 35.28 42.31 56.07 57.69 46.40 41.94

Condition Ratios (%)

Earning assets to total assets 91.05 92.42 93.78 93.07 92.20 89.84 90.87 90.50 89.99 90.63 93.37 93.85

Loss allowance to:

Loans and leases 2.24 1.38 1.29 1.36 2.42 2.50 2.01 2.32 2.30 2.44 1.45 2.56

Noncurrent loans and leases 191.51 111.54 157.81 154.77 193.13 201.57 189.38 243.58 201.17 161.63 77.26 334.43

Noncurrent assets plus

other real estate owned to assets 0.63 0.85 0.65 0.67 0.81 0.52 0.58 0.52 0.56 0.77 1.04 0.51

Equity capital ratio 10.29 13.59 11.32 10.97 10.91 9.74 10.71 10.87 9.78 9.76 10.32 10.52

Core capital (leverage) ratio 8.80 13.16 10.94 10.17 9.44 8.03 9.14 8.50 8.42 8.73 8.75 9.90

Common equity tier 1 capital ratio*** 13.75 22.07 15.81 14.12 13.46 13.71 13.76 13.25 13.97 13.63 13.76 14.47

Tier 1 risk-based capital ratio*** 13.84 22.07 15.83 14.14 13.65 13.75 13.81 13.35 14.03 13.71 13.87 14.64

Total risk-based capital ratio*** 15.36 23.13 16.95 15.28 15.15 15.37 15.34 14.85 15.47 15.54 15.07 16.00

Net loans and leases to deposits 62.32 67.83 79.06 84.27 75.23 50.03 63.87 61.31 58.37 59.42 61.11 76.46

Net loans to total assets 50.27 55.95 65.81 68.79 61.02 40.03 51.54 50.55 44.77 48.17 51.74 62.89

Domestic deposits to total assets 73.85 82.49 83.23 81.52 79.24 68.81 75.15 80.21 67.60 65.19 84.62 80.95

Structural Changes

New reporters 3 2 1 0 0 0 0 2 0 0 0 1

Institutions absorbed by mergers 137 32 89 14 2 0 30 12 29 25 34 7

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

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions 2019 5,258 1,207 3,247 661 134 9 636 603 1,133 1,343 1,157 386

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

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

Total assets (in billions) 2019 $18,481.9 $71.7 $1,083.1 $1,723.5 $6,435.6 $9,168.1 $3,358.9 $3,784.3 $4,240.1 $3,797.9 $1,193.3 $2,107.4

 2017 17,242.5 85.7 1,154.8 1,729.8 5,574.9 8,697.3 3,186.2 3,584.3 3,902.6 3,687.5 1,067.3 1,814.6

 2015 15,800.1 102.7 1,194.8 1,642.8 5,053.2 7,806.6 3,018.8 3,324.0 3,531.9 3,436.7 940.8 1,548.0

Return on assets (%) 2019 1.33 1.00 1.31 1.31 1.37 1.30 1.12 1.34 1.35 1.26 1.39 1.65

 2017 1.10 0.97 1.11 1.16 1.13 1.06 0.94 1.10 1.05 1.06 1.21 1.45

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

Net charge-offs to loans & leases (%) 2019 0.50 0.18 0.11 0.20 0.66 0.51 0.46 0.55 0.41 0.52 0.23 0.78

 2017 0.48 0.17 0.12 0.21 0.68 0.46 0.55 0.58 0.28 0.49 0.26 0.64

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

Noncurrent assets plus 

OREO to assets (%) 2019 0.56 0.98 0.73 0.61 0.60 0.49 0.54 0.57 0.52 0.61 0.76 0.42

 2017 0.73 1.09 0.88 0.71 0.70 0.72 0.64 0.86 0.64 0.85 0.83 0.48

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

Equity capital ratio (%) 2019 11.35 14.46 12.03 12.12 12.04 10.63 12.01 12.21 10.88 10.22 12.11 11.34

 2017 11.31 13.31 11.42 11.89 12.23 10.57 12.48 12.15 10.45 10.08 11.47 11.86

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

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

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

represents the provision for loan and lease losses.

*** Beginning March 2020, does not include institutions that have a Community Bank Leverage Ratio election in effect at the report date.
2020   •   Volume 14  • Number 4

10 FDIC QUARTERLY

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

Asset Concentration Groups*

September 30, 2020 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.57 0.37 0.39 0.49 0.39 0.38 0.44 1.00 0.74 1.08

Construction and development 0.37 0.00 0.19 0.60 0.31 1.37 0.56 0.80 0.98 0.59

Nonfarm nonresidential 0.31 3.19 0.40 0.45 0.28 0.27 0.45 0.95 0.52 0.41

Multifamily residential real estate 0.16 0.00 0.26 0.18 0.14 0.12 0.12 0.47 0.35 0.16

Home equity loans 0.50 0.00 0.60 0.45 0.45 0.45 0.29 0.92 0.65 0.56

Other 1-4 family residential 0.90 0.37 0.45 0.77 0.64 0.35 0.45 1.10 0.83 1.48

Commercial and industrial loans 0.27 0.51 0.30 0.51 0.27 0.18 0.06 0.59 0.49 0.25

Loans to individuals 1.09 1.15 0.83 0.84 0.95 0.31 0.97 1.71 1.10 1.32

Credit card loans 1.03 1.16 0.90 0.76 1.15 0.75 0.95 3.36 0.95 0.98

Other loans to individuals 1.14 0.98 0.64 0.85 0.93 0.29 0.97 1.63 1.10 1.49

All other loans and leases (including farm) 0.24 0.37 0.33 0.47 0.23 0.11 0.00 0.31 0.43 0.16

Total loans and leases 0.54 1.09 0.45 0.50 0.38 0.36 0.75 0.98 0.72 0.76

Percent of Loans Noncurrent**

All real estate loans 1.60 0.65 1.92 1.18 1.19 0.96 0.37 1.44 1.04 2.56

Construction and development 0.62 2.36 2.25 0.54 0.48 1.10 4.17 1.82 0.73 0.83

Nonfarm nonresidential 0.87 0.00 1.25 0.92 0.80 0.76 1.16 1.33 1.24 1.08

Multifamily residential real estate 0.22 0.00 0.12 0.47 0.22 0.40 0.04 0.57 0.53 0.40

Home equity loans 1.98 0.00 4.85 0.26 1.23 1.33 0.26 0.48 0.60 2.46

Other 1-4 family residential 2.53 0.61 2.46 0.81 2.19 0.95 0.33 1.51 1.01 3.35

Commercial and industrial loans 1.03 0.61 1.43 0.97 0.90 0.47 1.71 0.44 0.75 1.12

Loans to individuals 0.74 1.20 0.70 0.45 0.62 0.11 0.33 0.56 0.53 0.64

Credit card loans 1.03 1.25 0.85 0.26 1.05 0.43 0.43 1.43 0.23 0.90

Other loans to individuals 0.49 0.40 0.28 0.47 0.58 0.10 0.33 0.52 0.53 0.52

All other loans and leases (including farm) 0.41 0.00 0.40 1.23 0.49 0.21 0.06 0.71 0.66 0.31

Total loans and leases 1.17 1.14 1.17 1.13 1.01 0.88 0.43 1.12 0.94 1.46

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.03 0.07 -0.02 0.06 0.04 -0.01 0.02 0.15 0.03 0.04

Construction and development 0.02 -0.09 -0.01 0.09 0.02 -0.01 -0.06 0.23 0.08 -0.04

Nonfarm nonresidential 0.10 0.00 0.14 0.09 0.09 0.06 0.02 0.31 0.02 0.16

Multifamily residential real estate 0.00 0.00 0.00 0.00 0.00 -0.04 -0.01 0.00 0.00 0.01

Home equity loans -0.03 0.00 -0.01 0.00 0.01 -0.17 0.29 -0.04 0.02 -0.08

Other 1-4 family residential 0.00 0.07 -0.05 0.04 0.01 -0.01 0.02 0.07 0.02 -0.01

Commercial and industrial loans 0.54 2.54 0.61 0.24 0.52 0.14 0.30 0.10 0.14 0.47

Loans to individuals 2.25 4.24 2.81 0.35 1.08 0.46 0.79 0.83 0.39 1.60

Credit card loans 3.80 4.38 3.53 1.13 4.29 2.81 2.06 2.00 0.85 3.18

Other loans to individuals 0.78 2.14 0.54 0.27 0.77 0.34 0.79 0.76 0.38 0.78

All other loans and leases (including farm) 0.16 0.00 0.07 0.24 0.21 0.11 0.02 0.42 0.05 0.19

Total loans and leases 0.53 4.06 0.74 0.13 0.25 0.02 0.56 0.24 0.07 0.46

Loans Outstanding (in billions)

All real estate loans $5,144.5 $1.8 $560.1 $108.6 $2,976.4 $149.6 $21.3 $7.0 $37.0 $1,282.7

Construction and development 386.1 0.0 17.5 6.9 298.1 4.5 0.1 0.6 2.1 56.4

Nonfarm nonresidential 1,556.4 0.0 58.1 28.4 1,184.0 11.6 0.8 2.2 7.8 263.5

Multifamily residential real estate 478.4 0.0 85.3 3.8 330.8 3.2 0.3 0.2 1.0 53.8

Home equity loans 312.9 0.0 33.1 1.8 174.0 7.2 0.1 0.1 1.3 95.3

Other 1-4 family residential 2,240.7 1.7 313.6 25.2 937.1 122.3 20.0 3.4 22.0 795.4

Commercial and industrial loans 2,538.8 34.3 361.8 29.5 1,358.4 7.9 7.2 1.9 5.5 732.4

Loans to individuals 1,709.8 338.7 354.7 6.0 341.8 8.7 66.1 1.3 4.0 588.6

Credit card loans 796.5 316.9 261.8 0.6 28.0 0.3 0.3 0.1 0.0 188.3

Other loans to individuals 913.4 21.8 92.9 5.4 313.7 8.4 65.8 1.2 4.0 400.2

All other loans and leases (including farm) 1,521.1 0.3 444.5 40.4 431.8 3.8 4.1 0.5 2.6 593.1

Total loans and leases (plus unearned income) 10,914.2 375.0 1,721.1 184.5 5,108.3 170.0 98.8 10.7 49.1 3,196.8

Memo: Other Real Estate Owned (in millions)

All other real estate owned 4,547.9 0.7 326.9 235.2 3,121.9 62.3 5.6 45.5 76.3 673.5

Construction and development 1,086.7 0.6 1.0 31.4 947.8 13.2 1.3 28.7 14.6 48.3

Nonfarm nonresidential 1,805.6 0.0 85.0 80.8 1,387.2 12.5 2.3 10.8 29.4 197.6

Multifamily residential real estate 68.8 0.0 0.0 4.6 63.0 0.9 0.0 0.0 0.3 0.0

1-4 family residential 1,373.7 0.1 202.9 37.4 634.4 35.6 2.0 5.7 27.9 427.7

Farmland 175.2 0.0 0.0 81.2 89.5 0.0 0.0 0.3 4.1 0.0

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

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

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

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

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

percent of total assets.

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

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

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

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

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

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

September 30, 2020 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.57 0.86 0.45 0.29 0.46 0.85 0.38 0.57 0.47 1.09 0.56 0.30

Construction and development 0.37 0.94 0.45 0.36 0.32 0.41 0.30 0.24 0.29 0.63 0.36 0.45

Nonfarm nonresidential 0.31 0.55 0.35 0.23 0.32 0.36 0.35 0.29 0.24 0.44 0.28 0.25

Multifamily residential real estate 0.16 0.90 0.23 0.12 0.14 0.22 0.17 0.14 0.05 0.63 0.19 0.08

Home equity loans 0.50 0.39 0.43 0.33 0.50 0.55 0.43 0.50 0.44 0.82 0.41 0.26

Other 1-4 family residential 0.90 1.13 0.60 0.41 0.70 1.21 0.50 0.88 0.70 1.68 1.08 0.38

Commercial and industrial loans 0.27 0.68 0.33 0.28 0.28 0.26 0.32 0.22 0.25 0.27 0.36 0.32

Loans to individuals 1.09 1.30 1.31 1.18 1.01 1.14 0.99 1.49 0.73 0.99 0.79 1.22

Credit card loans 1.03 1.07 1.57 2.40 1.09 0.94 1.16 1.15 0.88 0.95 0.47 1.10

Other loans to individuals 1.14 1.30 1.29 0.94 0.93 1.34 0.87 1.79 0.60 1.05 0.89 1.31

All other loans and leases (including farm) 0.24 0.52 0.44 0.29 0.21 0.24 0.11 0.15 0.32 0.32 0.25 0.17

Total loans and leases 0.54 0.81 0.46 0.33 0.49 0.64 0.43 0.59 0.43 0.75 0.50 0.50

Percent of Loans Noncurrent** 

All real estate loans 1.60 1.28 0.86 0.88 1.70 2.08 1.32 1.30 1.68 2.25 2.60 0.62

Construction and development 0.62 0.68 0.69 0.69 0.35 1.03 1.07 0.45 1.03 0.31 0.32 0.48

Nonfarm nonresidential 0.87 1.29 0.82 0.88 0.82 0.98 0.92 0.72 1.03 1.04 0.68 0.87

Multifamily residential real estate 0.22 0.63 0.35 0.23 0.17 0.28 0.27 0.39 0.15 0.31 0.22 0.10

Home equity loans 1.98 0.64 0.60 0.62 1.27 3.02 1.99 1.42 2.37 3.17 1.02 0.76

Other 1-4 family residential 2.53 1.14 0.87 1.09 3.29 2.70 2.03 1.89 2.29 3.33 6.74 0.53

Commercial and industrial loans 1.03 1.18 0.59 1.00 1.02 1.11 0.93 0.92 1.04 1.32 0.97 1.04

Loans to individuals 0.74 0.71 0.64 0.69 0.85 0.66 0.86 0.76 0.45 0.77 0.58 0.93

Credit card loans 1.03 0.71 1.42 2.31 1.20 0.85 1.29 1.06 0.74 0.98 0.95 1.15

Other loans to individuals 0.49 0.71 0.59 0.36 0.53 0.48 0.57 0.50 0.21 0.44 0.45 0.75

All other loans and leases (including farm) 0.41 1.33 1.12 0.54 0.48 0.34 0.39 0.17 0.50 0.51 0.37 0.48

Total loans and leases 1.17 1.24 0.82 0.88 1.25 1.24 1.06 0.95 1.14 1.51 1.88 0.76

Percent of Loans Charged-Off 

(net, YTD) 

All real estate loans 0.03 0.04 0.04 0.04 0.04 0.03 0.04 0.05 0.02 0.03 0.03 0.02

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

Nonfarm nonresidential 0.10 0.05 0.06 0.07 0.10 0.18 0.09 0.13 0.16 0.12 0.06 0.06

Multifamily residential real estate 0.00 -0.07 0.00 0.01 0.00 0.00 0.01 0.03 0.00 0.01 0.00 -0.01

Home equity loans -0.03 0.07 0.03 0.01 0.00 -0.06 0.01 -0.07 0.03 -0.08 -0.05 -0.03

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

Commercial and industrial loans 0.54 0.41 0.22 0.34 0.71 0.50 0.38 0.50 0.54 0.53 0.90 0.70

Loans to individuals 2.25 0.40 0.94 1.88 2.56 2.07 2.40 2.15 1.77 2.71 1.26 2.53

Credit card loans 3.80 3.66 4.96 7.44 4.22 3.37 4.14 3.70 3.24 3.83 2.77 4.37

Other loans to individuals 0.78 0.37 0.67 0.69 0.90 0.69 1.07 0.68 0.37 0.85 0.71 0.98

All other loans and leases (including farm) 0.16 0.21 0.21 0.27 0.14 0.16 0.25 0.23 0.11 0.14 0.10 0.09

Total loans and leases 0.53 0.13 0.11 0.20 0.70 0.54 0.49 0.58 0.43 0.57 0.32 0.74

Loans Outstanding (in billions) 

All real estate loans $5,144.5 $21.7 $515.8 $944.8 $1,818.5 $1,843.6 $1,064.5 $956.2 $1,009.3 $915.9 $549.2 $649.4

Construction and development 386.1 1.3 47.3 94.8 159.2 83.6 75.4 64.0 64.5 54.7 83.0 44.4

Nonfarm nonresidential 1,556.4 4.5 192.6 397.6 620.4 341.3 356.9 306.1 229.8 206.7 225.6 231.4

Multifamily residential real estate 478.4 0.5 28.8 102.1 208.1 139.0 165.6 47.7 119.0 42.8 25.6 77.7

Home equity loans 312.9 0.5 16.5 36.3 112.3 147.3 66.4 75.3 76.1 51.1 19.5 24.6

Other 1-4 family residential 2,240.7 10.5 181.1 284.2 702.5 1,062.4 395.2 449.5 495.6 462.9 176.6 260.9

Commercial and industrial loans 2,538.8 5.1 139.7 315.9 909.9 1,168.3 445.9 591.8 564.9 436.4 210.3 289.7

Loans to individuals 1,709.8 2.0 26.8 70.7 731.1 879.2 298.9 402.1 330.2 295.3 67.9 315.4

Credit card loans 796.5 0.0 1.6 11.8 350.5 432.5 123.5 185.0 152.6 179.7 17.1 138.6

Other loans to individuals 913.4 2.0 25.2 58.9 380.6 446.7 175.4 217.1 177.6 115.7 50.8 176.8

All other loans and leases (including farm) 1,521.1 4.5 44.7 77.5 417.7 976.5 236.4 301.3 388.6 374.6 75.7 144.3

Total loans and leases 

(plus unearned income) 10,914.2 33.5 727.0 1,408.9 3,877.2 4,867.7 2,045.7 2,251.5 2,293.0 2,022.1 903.2 1,398.8

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 4,547.9 88.6 1,179.6 1,103.2 1,286.3 890.3 740.6 939.5 976.0 710.7 917.4 263.7

Construction and development 1,086.7 15.2 471.7 322.5 231.5 45.8 126.4 308.8 131.5 174.0 277.7 68.3

Nonfarm nonresidential 1,805.6 30.3 396.5 532.4 580.1 266.3 242.3 324.1 453.1 258.6 411.3 116.2

Multifamily residential real estate 68.8 5.0 35.4 18.2 9.2 1.0 9.7 22.4 5.9 9.3 13.9 7.6

1-4 family residential 1,373.7 28.4 194.1 163.9 448.2 539.1 359.4 273.9 339.8 187.1 156.2 57.4

Farmland 175.2 9.7 81.9 66.2 17.4 0.0 2.8 10.3 20.7 68.8 58.3 14.2

* Regions:

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

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
2020   •   Volume 14  • Number 4

12 FDIC QUARTERLY

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

3rd 

Quarter 

2020

2nd 

Quarter 

2020

1st

Quarter 

2020

4th

Quarter 

2019

3rd 

Quarter 

2019

% 

Change 

19Q3-

20 Q3

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,373 1,381 1,361 1,328 1,340 2.5 33 688 513 126 13

Total assets of institutions reporting derivatives $19,490,492 $19,422,604 $18,647,356 $17,062,953 $16,899,831 15.3 $2,356 $314,813 $1,501,755 $5,817,542 $11,854,025

Total deposits of institutions reporting derivatives 15,707,310 15,567,209 14,473,395 13,260,629 13,006,277 20.8 1,890 259,946 1,223,231 4,736,618 9,485,624

Total derivatives 181,124,835 181,706,554 199,743,579 173,052,331 203,562,352 -11.0 633 55,747 247,427 5,484,487 175,336,541

Derivative Contracts by Underlying Risk Exposure 

Interest rate 129,835,624 132,102,567 146,069,414 125,078,757 147,186,848 -11.8 630 55,281 239,189 3,490,338 126,050,185

Foreign exchange* 42,148,550 41,266,832 44,381,157 38,736,894 46,694,639 -9.7 0 0 4,341 1,691,986 40,452,223

Equity 4,022,629 3,574,339 3,661,579 3,796,106 3,835,456 4.9 0 18 137 94,615 3,927,859

Commodity & other (excluding credit derivatives) 1,536,154 1,506,889 1,643,731 1,495,227 1,662,059 -7.6 0 0 116 81,124 1,454,914

Credit 3,580,623 3,254,590 3,986,479 3,944,681 4,182,691 -14.4 0 31 2,808 126,424 3,451,360

Total 181,123,580 181,705,217 199,742,360 173,051,665 203,561,693 -11.0 630 55,330 246,591 5,484,487 175,336,541

Derivative Contracts by Transaction Type 

Swaps 99,580,271 101,734,113 110,598,852 96,614,183 108,935,550 -8.6 4 2,091 126,548 3,269,989 96,181,640

Futures & forwards 39,822,440 41,018,437 46,803,966 34,786,564 47,061,050 -15.4 0 5,990 37,999 1,541,060 38,237,391

Purchased options 17,889,179 16,881,937 18,151,997 18,118,533 20,733,104 -13.7 1 317 14,171 240,941 17,633,750

Written options 17,706,959 16,682,545 17,959,266 17,998,526 20,343,921 -13.0 5 4,874 30,053 237,915 17,434,112

Total 174,998,849 176,317,032 193,514,081 167,517,806 197,073,626 -11.2 10 13,271 208,770 5,289,905 169,486,893

Fair Value of Derivative Contracts 

Interest rate contracts 73,199 60,217 48,270 49,831 53,929 35.7 0 138 -337 19,267 54,130

Foreign exchange contracts -7,256 -19,636 -16,009 -7,869 2,817 N/M 0 0 7 1,515 -8,778

Equity contracts -700 -1,171 9,837 -1,203 1,597 N/M 0 0 9 -52 -656

Commodity & other (excluding credit derivatives) -1,087 -3,800 9,802 -1,310 -4,100 73.5 0 0 0 171 -1,258

Credit derivatives as guarantor** 3,830 -3,347 -24,127 25,920 20,454 -81.3 0 0 23 -421 4,228

Credit derivatives as beneficiary** -7,167 553 26,454 -26,965 -22,966 68.8 0 0 -25 105 -7,246

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 76,385,615 80,158,815 92,838,175 79,135,461 88,724,450 -13.9 0 4,401 29,937 1,348,364 75,002,914

1-5 years 39,964,097 41,098,879 43,088,736 35,856,425 37,506,842 6.6 2 596 42,735 1,172,261 38,748,503

> 5 years 20,500,352 19,986,413 20,987,249 24,264,486 24,491,078 -16.3 3 1,173 81,692 674,211 19,743,273

Foreign exchange and gold contracts < 1 year 29,396,423 29,049,559 31,570,063 28,241,089 33,602,158 -12.5 0 0 3,438 1,484,474 27,908,511

1-5 years 4,299,182 4,238,687 4,127,647 4,052,351 4,279,836 0.5 0 0 452 135,380 4,163,351

> 5 years 2,299,468 2,179,498 2,152,437 2,146,242 2,148,934 7.0 0 0 35 37,744 2,261,689

Equity contracts < 1 year 3,210,066 2,850,740 2,959,453 3,083,994 2,687,265 19.5 0 6 106 49,708 3,160,247

1-5 years 882,054 825,667 779,791 844,052 994,632 -11.3 0 13 4 34,499 847,538

> 5 years 133,921 128,679 124,492 136,149 147,521 -9.2 0 0 5 8,959 124,957

Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 1,926,264 1,860,285 2,040,847 2,094,288 1,960,750 -1.8 0 0 36 36,732 1,889,497

1-5 years 2,249,588 2,163,848 2,612,164 2,785,983 2,819,249 -20.2 0 1 711 64,975 2,183,900

> 5 years 433,136 227,777 449,878 260,844 430,569 0.6 0 28 1,155 8,664 423,289

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 29.9 31.9 37.9 23.7 27.4 0.1 0.2 3.1 7.7 47.5

Total potential future exposure to tier 1 capital (%) 32.3 29.6 29.6 34.5 35.0 0.0 0.1 1.1 5.9 53

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 62.2 61.5 67.6 58.2 62.4 0.1 0.3 4.2 13.6 100.5

Credit losses on derivatives  131.0 125.0 83.0 20.0 22.0 495.5 0.0 0.0 1.0 17.0 113

HELD FOR TRADING 

Number of institutions reporting derivatives 186 186 182 174 175 6.3 0 19 89 67 11

Total assets of institutions reporting derivatives 15,384,583 15,394,405 14,841,535 13,426,816 13,313,319 15.6 0 8,271 338,646 3,879,923 11,157,743

Total deposits of institutions reporting derivatives 12,340,493 12,274,431 11,424,297 10,356,388 10,147,948 21.6 0 6,925 275,387 3,195,832 8,862,348

Derivative Contracts by Underlying Risk Exposure 

Interest rate 126,595,124 129,035,575 143,093,184 122,492,314 144,532,347 -12.4 0 304 48,059 2,773,556 123,773,205

Foreign exchange 39,147,645 38,663,882 41,651,419 36,707,246 43,930,653 -10.9 0 0 4,091 1,593,741 37,549,813

Equity 3,997,150 3,549,571 3,639,261 3,777,097 3,817,653 4.7 0 0 104 84,343 3,912,704

Commodity & other 1,501,890 1,473,915 1,611,455 1,464,169 1,631,150 -7.9 0 0 82 79,088 1,422,720

Total 171,241,810 172,722,943 189,995,319 164,440,827 193,911,802 -11.7 0 304 52,335 4,530,728 166,658,442

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  2,810 4,647 4,947 4,371 1,581 77.7 0 0 9 445 2,356

Foreign exchange** 1,942 3,841 2,167 662 2,718 -28.6 0 0 3 -172 2,111

Equity** 2,826 4,148 -1,040 1,427 1,805 56.6 0 0 7 -9 2,828

Commodity & other (including credit derivatives)** 1,380 2,036 612 634 1,152 19.8 0 0 0 141 1,239

Total trading revenues** 8,959 14,671 6,686 7,094 7,256 23.5 0 0 20 405 8,533

Share of Revenue 

Trading revenues to gross revenues (%)** 6.3 9.9 4.2 4.5 4.3 0.0 0.0 0.5 1.1 8.5

Trading revenues to net operating revenues (%)** 28.6 305.8 60.1 20.9 18.7 0.0 0.0 2.5 4.4 40

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 620 625 616 641 662 -6.3 3 160 326 118 13

Total assets of institutions reporting derivatives 18,644,568 18,555,550 17,928,518 16,491,529 16,313,116 14.3 202 80,670 1,142,622 5,567,049 11,854,025

Total deposits of institutions reporting derivatives 15,009,146 14,853,065 13,891,758 12,797,489 12,531,710 19.8 166 66,171 930,133 4,527,051 9,485,624

Derivative Contracts by Underlying Risk Exposure 

Interest rate 3,162,895 3,009,014 2,934,180 2,564,078 2,633,532 20.1 10 12,948 156,174 716,782 2,276,980

Foreign exchange 534,403 527,333 529,987 462,834 479,579 11.4 0 0 194 30,088 504,121

Equity 25,479 24,768 22,318 19,009 17,803 43.1 0 18 33 10,272 15,155

Commodity & other 34,264 32,974 32,277 31,059 30,910 10.9 0 0 34 2,036 32,193

Total notional amount 3,757,040 3,594,089 3,518,762 3,076,980 3,161,823 18.8 10 12,967 156,435 759,178 2,828,450

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

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

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

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

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

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

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

3rd 

Quarter 

2020

2nd 

Quarter

2020

1st 

Quarter

2020

4th 

Quarter

2019

3rd 

Quarter

2019

% 

Change 

19Q3-

20Q3

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 58 61 63 63 67 -13.4 0 6 11 33 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $406,116 $449,854 $452,586 $474,309 $452,433 -10.2 $0 $4,051 $10,271 $105,592 $286,202

Home equity loans 8 9 9 11 11 -27.3 0 0 0 8 0

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

Auto loans 579 980 1,196 1,448 1,793 -67.7 0 0 0 579 0

Other consumer loans 1,669 1,512 1,587 1,661 1,738 -4.0 0 0 0 926 743

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

All other loans, leases, and other assets 88,993 90,064 88,439 83,875 76,770 15.9 0 0 8,321 3,532 77,140

Total securitized and sold 497,365 542,419 543,817 561,304 533,282 -6.7 0 4,051 18,592 110,637 364,085

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,403 1,522 1,726 1,326 1,371 2.3 0 0 51 633 719

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

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

Auto loans 38 48 53 59 66 -42.4 0 0 0 38 0

Other consumer loans 0 0 0 0 0 0.0 0 0 0 0 0

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

All other loans, leases, and other assets 2,010 2,205 1,645 1,366 1,324 51.8 0 0 91 93 1,826

Total credit exposure 3,451 3,775 3,424 2,751 2,761 0.0 0 0 142 764 2,545

Total unused liquidity commitments provided to institution’s own securitizations 71 32 29 24 203 -65.0 0 0 0 0 71

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

1-4 family residential loans 3.0 5.9 3.7 3.5 3.6 0.0 2.5 0.6 1.7 3.6

Home equity loans 7.2 8.3 19.7 9.8 7.8 0.0 0.0 0.0 7.2 0.0

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

Auto loans 3.1 2.6 4.5 3.2 2.7 0.0 0.0 0.0 3.1 0.0

Other consumer loans 2.3 3.0 3.7 3.6 3.3 0.0 0.0 0.0 1.2 3.5

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

All other loans, leases, and other assets 1.5 4.7 0.1 0.1 0.3 0.0 0.0 0.1 1.6 1.7

Total loans, leases, and other assets 3.1 6.5 3.4 3.2 3.2 0.0 0.0 0.0 2.2 3.2

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

1-4 family residential loans 2.9 4.6 1.0 1.0 1.1 0.0 1.8 2.7 3.5 2.6

Home equity loans 27.8 28.9 29.3 33.6 33.5 0.0 0.0 0.0 27.8 0.0

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

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

Other consumer loans 2.2 3.2 3.6 3.7 3.4 0.0 0.0 0.0 0.5 4.4

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

All other loans, leases, and other assets 2.9 0.4 0.3 0.3 0.3 0.0 0.0 0.3 0.4 3.3

Total loans, leases, and other assets 2.8 4.3 0.8 0.8 0.9 0.0 0.0 0.0 2.2 2.8

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 10.2 8.4 6.9 8.6 6.9 0.0 0.0 0.0 10.2 0.0

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

Auto loans 2.0 1.1 0.5 1.9 1.2 0.0 0.0 0.0 2.0 0.0

Other consumer loans 0.8 0.4 0.1 0.7 0.5 0.0 0.0 0.0 0.2 1.4

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

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

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

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

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

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

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

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

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 347 345 339 371 388 -10.6 6 117 152 63 9

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 31,869 28,990 27,752 30,320 29,841 6.8 62 5,147 12,841 12,158 1,661

All other loans, leases, and other assets 128,103 126,493 123,427 124,159 122,896 4.2 0 11 68 35,470 92,553

Total sold and not securitized 159,972 155,483 151,179 154,479 152,737 4.7 62 5,158 12,910 47,628 94,214

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 12,870 10,753 9,675 10,161 10,181 26.4 2 923 5,299 5,806 839

All other loans, leases, and other assets 36,997 36,423 35,313 34,793 34,483 7.3 0 11 18 11,233 25,735

Total credit exposure 49,867 47,176 44,989 44,953 44,665 11.6 2 934 5,318 17,039 26,574

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 36 35 36 36 37 -2.7 1 8 14 8 5

Total credit exposure 24,893 26,480 22,894 23,214 23,169 7.4 0 0 0 1,591 23,302

Total unused liquidity commitments 412 413 208 413 411 0.2 0 0 0 295 117

Other

Assets serviced for others** 5,921,643 5,912,001 6,185,782 6,187,243 6,101,596 -2.9 3,173 142,296 474,894 1,265,092 4,036,187

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 17,209 17,348 18,170 17,948 16,186 6.3 0 0 0 0 17,209

Unused liquidity commitments to conduits sponsored by institutions 

 and others 59,373 30,319 30,889 31,652 30,536 94.4 0 0 0 1,543 57,830

Net servicing income (for the quarter) 1,366 -246 -1,757 2,204 300 355.3 7 213 206 318 622

Net securitization income (for the quarter) 92 39 37 138 65 41.5 0 17 6 13 55

Total credit exposure to Tier 1 capital (%)*** 3.7 3.8 3.6 3.6 3.6 0.0 0.0 0.0 0.7 2.9

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

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

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

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

COMMUNITY BANK PERFORMANCE

Community banks are identified based on criteria defined in the FDIC’s 2012 Community Banking Study. When comparing 

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

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

banks designated during the previous quarter.

Net Income for Community Banks Increases 10 Percent Year Over Year 

Net Interest Margin Continues to Compress and Reaches a Record-Low Level

Loan Balances Grow 13.4 Percent Year Over Year 

Asset Quality Weakens Slightly

Net Income Increases 

10 Percent Year Over Year

In aggregate, 4,590 FDIC-insured community banks reported annual growth in quarterly 

net income of $659.7 million despite a 116.6 percent increase in provision expense and 

continued net interest margin (NIM) compression.1 Nearly half of all community banks 

(48 percent) reported higher quarterly net income in third quarter 2020 compared with 

third quarter 2019. Higher revenue from loan sales (up $1.9 billion, or 154.2 percent) drove 

the improvement in quarterly net income. The NIM for community banks compressed 

41 basis points from the year-ago quarter to a record low of 3.27 percent, as the decline in 

average earning asset yields outpaced the decline in average funding costs. This was the 

fourth consecutive quarter in which community banks reported NIM compression. The 

NIM declined in the third quarter even though the ratio of earning assets to total assets 

reached the highest level (93.5 percent) in the history of the Quarterly Banking Profile (QBP). 

The pretax return on average assets (ROA) ratio declined 8 basis points from the year-ago 

quarter to 1.43 percent as growth in average assets outpaced that of net income. Still, the 

community bank pretax ROA was 21 basis points higher than that reported by noncommunity banks.

Provision expense declined 32.3 percent between second quarter and third quarter 2020 

to $1.6 billion. This decline, along with a quarterly increase in revenue from loan sales, 

supported an increase in net income of $692.7 million, or 10.6 percent, in third quarter 2020. 

Contributors to the Year-Over-Year Change in Income

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Positive Factor Negative Factor

0.0

0.5

1.0

1.5

2.0

2.5

+4% +117% +44% +9% +126% +12%

$0.66 $0.64 $0.87 $2.15 $1.27 $0.19 $0.16

+10%

Chart 1

Source: FDIC.

Net Interest Margin

Percent 

Community Banks (3.27)

Industry (2.68)

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

2.55

2.80

3.05

3.30

3.55

3.80

4.05

Chart 2

1 Results exclude one institution with an active charter that sold most of its assets to a credit union and, therefore, did 

not file a Call Report this quarter. 
2020   •   Volume 14  • Number 4

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

Commercial

& Industrial 1–4 FamilyResidential

RE

Construction &

Development

Agricultural

Production Commercial RE& Construction Commercial& Industrial

-20

0

20

40

60

80

100

120

140

160

Change 3Q 2020 vs. 3Q 2019

Change 3Q 2020 vs. 2Q 2020

32.5

7.0

143.8

8.1

-1.6

3.4

18.8

8.9 0.4 3.4 1.3

-1.0

4.8 4.8

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Share of Loan Portfolio Noncurrent

Percent

0

2

4

6

8

10

12

14

16

C&D Loans

Nonfarm Nonresidential RE

1–4 Family RE

C&I Loans

Farm Loans

Home Equity

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

Chart 4

Revenue From Loan Sales 

Continues to Bolster Net 

Operating Revenue

Increases in net interest income and noninterest income lifted net operating revenue by 

$2.8 billion (12.1 percent) to $25.8 billion from the year-ago quarter. Higher revenue from 

loan sales drove the increase in noninterest income (up $2.1 billion, or 44 percent) year over 

year. This increase pushed noninterest income as a percentage of net operating revenue up 

more than 6 percentage points from the year-ago quarter to 27.2 percent—a 30-year high. 

Higher interest income from commercial and industrial (C&I) loans (up 14.8 percent) and 

a decline in interest expense (down 36.8 percent) drove the increase in net interest income 

from third quarter 2019. 

The Shift in Funding Mix 

and Low Rates Support 

Lower Interest Expense

Interest expense on domestic deposits declined $1.6 billion (38.2 percent) from the yearago quarter, driving the continued decline in total interest expense. Average funding costs 

declined for the fourth consecutive quarter to 0.53 percent, just 7 basis points above the 

30-year low. In addition to low interest rates, a lower ratio of short-term time deposits to 

total assets—down 3.5 percentage points from a year earlier to 13.2 percent—contributed to 

lower funding costs. 

Payroll Expense Continues 

to Grow as Average Assets 

per Employee Reaches a 

Record High 

An increase in salary and benefit expense of $835.7 million (9.8 percent) drove the 

$1.3 billion (8.7 percent) increase in noninterest expense from the year-ago quarter. Higher 

average assets per employee from the year-ago quarter accompanied the increase in payroll 

expense. Average assets per employee rose to $6.3 million (up 14.4 percent) from the yearago quarter—the highest level reported in the history of the QBP. 

Quarterly Loan Growth 

Rises Moderately

Total loans and leases grew $17 billion (1 percent) from second quarter 2020 to $1.7 trillion. Growth in nonfarm nonresidential lending (up 1.9 percent) accounted for more than 

half (52 percent) of the quarterly increase in loan volume. Non-owner occupied nonfarm 

nonresidential lending and multifamily lending both increased 2.1 percent from the previous quarter. Over half of all community banks (57.8 percent) reported higher loan and lease 

balances from second quarter 2020. 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Total loans and leases rose $203 billion (13.4 percent) from the year-ago quarter. C&I lending (up $143.8 billion, or 71 percent) drove the annual increase in loan volume. This growth 

primarily reflects loans made under the Paycheck Protection Program in second quarter 

2020. Nonfarm nonresidential lending (up $32.5 billion, or 7.2 percent) and 1–4 family residential real estate lending (up $8.1 billion, or 2.1 percent) also rose. Securities increased 

12 percent from the year-ago quarter to $409.6 billion, while cash and balances due from 

insured depository institutions and Federal Reserve Banks increased 57.1 percent to 

$231.8 billion from third quarter 2019.

Noncurrent Loan Rates 

Increase Moderately

Noncurrent balances for total loans and leases rose $93.7 million (0.7 percent) from 

second quarter 2020, but the noncurrent rate for total loans and leases was unchanged 

at 0.80 percent. Noncurrent balances for total loans and leases were up $1.6 billion 

(13.5 percent) from the year-ago quarter. Higher noncurrent nonfarm nonresidential loans 

(up $629.8 million, or 21 percent), C&I loans (up $351.6 million, or 18 percent), and farm 

loans (up $297 million, or 18 percent) contributed most to the annual increase in noncurrent loans. Noncurrent rates for farmland loans (up 26 basis points to 1.73 percent) and 

agricultural production loans (up 25 basis points to 1.21 percent) increased most among all 

loan portfolios from the year-ago quarter. The noncurrent rate for nonfarm nonresidential 

loans also weakened, increasing 10 basis points to 0.76 percent from third quarter 2019.

Net Charge-Off Rates 

Remain Low

Net charge-off balances for total loans and leases fell $118.7 million (22.1 percent) year 

over year pulling the net charge-off rate for total loans and leases down 5 basis points to 

0.10 percent—well below historical highs. Net charge-off rates for major loan categories 

remain low. 

Noninterest-Bearing 

Deposit Growth Supports 

Lower Cost Deposit Mix

Total deposits of $2.05 trillion were up 1.8 percent from second quarter 2020 and 

16.7 percent from the year-ago quarter. Domestic noninterest-bearing deposit growth (up 

2 percent quarter over quarter and 35.6 percent year over year) outpaced domestic interestbearing deposit growth (up 1.7 percent quarter over quarter and 11.6 percent year over year), 

supporting a lower-cost deposit mix. 

Community Bank 

Leverage Ratio 

Remains Strong

The community bank leverage ratio (CBLR) for the 1,854 banks that made this election 

remained strong at 11.23 percent. The tier 1 risk-based capital ratio for non-CBLR filers was 

14.44 percent, up 11 basis points from second quarter 2020. However, the leverage capital 

ratio for non-CBLR filers declined 8 basis points to 10.40 percent as average asset growth 

outpaced tier 1 capital formation. Equity capital grew $4.9 billion (1.8 percent) quarter 

over quarter.

Number of Community 

Banks Declines Slightly 

and Includes One 

De Novo Bank

The number of community banks declined by 34 (less than 1 percent) to 4,590 from second 

quarter 2020. The quarterly change in the number of community banks includes one new 

community bank, three banks transitioning from noncommunity to community banks, 

eight banks transitioning from community to noncommunity banks, 29 community bank 

mergers or consolidations, and one community bank self-liquidation.

Authors:

Alex M. Kokkinakis

Senior Financial Analyst 

Division of Insurance and Research

Erica Jill Tholmer

Senior Financial Analyst 

Division of Insurance and Research
2020   •   Volume 14  • Number 4

18 FDIC QUARTERLY

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

2020* 2019* 2019 2018 2017 2016 2015

Return on assets (%) 1.07 1.21 1.20 1.19 0.96 0.99 0.99

Return on equity (%) 9.46 10.43 10.25 10.58 8.65 8.81 8.85

Core capital (leverage) ratio (%) 10.40 11.24 11.15 11.09 10.80 10.69 10.67

Noncurrent assets plus other real estate owned to assets (%) 0.64 0.67 0.65 0.70 0.78 0.94 1.07

Net charge-offs to loans (%) 0.11 0.12 0.13 0.13 0.16 0.16 0.15

Asset growth rate (%) 10.97 0.57 -1.17 2.22 1.17 2.97 2.74

Net interest margin (%) 3.43 3.68 3.66 3.72 3.62 3.57 3.57

Net operating income growth (%) -6.46 0.06 -4.04 28.01 0.21 2.42 9.57

Number of institutions reporting 4,590 4,827 4,750 4,980 5,228 5,462 5,736

Percentage of unprofitable institutions (%) 4.64 3.77 3.98 3.63 5.72 4.67 5.04

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

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

(dollar figures in millions)  3rd Quarter

2020

2nd Quarter

2020

3rd Quarter

2019

%Change 

19Q3-20Q3

Number of institutions reporting 4,590 4,624 4,827 -4.9

Total employees (full-time equivalent) 390,661 391,446 402,917 -3.0

CONDITION DATA

Total assets $2,478,392 $2,457,876 $2,233,435 11.0

Loans secured by real estate 1,211,065 1,202,384 1,212,229 -0.1

1-4 Family residential mortgages 391,904 389,832 397,964 -1.5

Nonfarm nonresidential 481,865 476,768 472,439 2.0

 Construction and development 114,262 114,480 113,186 1.0

Home equity lines 42,943 43,614 47,072 -8.8

Commercial & industrial loans 346,080 348,818 212,054 63.2

Loans to individuals 64,237 62,788 65,697 -2.2

 Credit cards 2,021 1,847 2,103 -3.9

Farm loans 51,075 52,426 53,556 -4.6

Other loans & leases 44,900 38,622 43,776 2.6

Less: Unearned income 1,281 1,381 542 136.2

Total loans & leases 1,716,077 1,703,658 1,586,769 8.1

Less: Reserve for losses* 21,835 20,789 18,017 21.2

Net loans and leases 1,694,243 1,682,869 1,568,752 8.0

Securities** 409,632 396,591 376,168 8.9

Other real estate owned 2,081 2,236 2,717 -23.4

Goodwill and other intangibles 17,912 18,059 17,338 3.3

All other assets 354,524 358,121 268,460 32.1

Total liabilities and capital 2,478,392 2,457,876 2,233,435 11.0

Deposits 2,049,529 2,024,462 1,832,214 11.9

 Domestic office deposits 2,047,170 2,022,074 1,829,902 11.9

Foreign office deposits 2,359 2,387 2,311 2.1

 Brokered deposits 60,915 64,586 69,728 -12.6

Estimated insured deposits 1,445,317 1,445,645 1,338,330 8.0

Other borrowed funds 131,838 139,781 116,388 13.3

Subordinated debt 241 237 370 -34.7

All other liabilities 25,099 25,237 20,325 23.5

Total equity capital (includes minority interests) 271,684 268,159 264,139 2.9

 Bank equity capital 271,583 268,055 264,051 2.9

Loans and leases 30-89 days past due 6,672 6,937 7,827 -14.8

Noncurrent loans and leases 13,660 13,668 12,256 11.5

Restructured loans and leases 5,556 5,487 5,698 -2.5

Mortgage-backed securities 189,380 186,381 173,915 8.9

Earning assets 2,318,133 2,297,891 2,077,215 11.6

FHLB Advances 83,496 89,502 94,716 -11.8

Unused loan commitments 337,843 326,187 314,900 7.3

Trust assets 262,884 280,254 259,743 1.2

Assets securitized and sold 21,601 20,355 17,240 25.3

Notional amount of derivatives 203,286 171,765 105,446 92.8

INCOME DATA

First Three 

Quarters 2020

First Three 

Quarters 2019 %Change

3rd Quarter 

2020

3rd Quarter 

2019

%Change 

19Q3-20 Q3

Total interest income $66,298 $70,498 -6.0 $21,832 $24,055 -9.2

Total interest expense 10,690 14,438 -26.0 3,017 5,044 -40.2

Net interest income 55,608 56,060 -0.8 18,815 19,011 -1.0

Provision for credit losses*** 5,762 2,065 179.0 1,617 775 108.6

Total noninterest income 17,551 13,914 26.1 7,029 5,086 38.2

Total noninterest expense 45,868 44,723 2.6 15,794 15,150 4.3

Securities gains (losses) 673 582 15.7 343 165 108.2

Applicable income taxes 3,621 4,027 -10.1 1,503 1,409 6.7

Extraordinary gains, net**** 1 117 N/M 0 2 N/M

Total net income (includes minority interests) 18,582 19,858 -6.4 7,272 6,929 5.0

 Bank net income 18,546 19,849 -6.6 7,252 6,924 4.7

Net charge-offs 1,328 1,339 -0.8 417 576 -27.5

Cash dividends 8,063 9,562 -15.7 2,532 3,008 -15.8

Retained earnings 10,484 10,287 1.9 4,720 3,916 20.5

Net operating income 18,003 19,247 -6.5 6,992 6,785 3.0

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

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

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

this item represents the provision for loan and lease losses.

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

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  3rd Quarter 

2020

2nd Quarter 

2020

3rd Quarter

2019

%Change 

19Q3-20 Q3

Number of institutions reporting 4,590 4,589 4,583 0.2

Total employees (full-time equivalent) 390,661 389,273 388,456 0.6

CONDITION DATA

Total assets $2,478,392 $2,445,850 $2,137,603 15.9

Loans secured by real estate 1,211,065 1,196,236 1,157,062 4.7

1-4 Family residential mortgages 391,904 388,549 383,763 2.1

Nonfarm nonresidential 481,865 473,015 449,327 7.2

 Construction and development 114,262 112,940 107,228 6.6

Home equity lines 42,943 43,614 45,110 -4.8

Commercial & industrial loans 346,080 345,641 202,328 71.0

Loans to individuals 64,237 62,648 63,065 1.9

 Credit cards 2,021 1,926 2,187 -7.6

Farm loans 51,075 52,086 52,705 -3.1

Other loans & leases 44,900 43,832 38,241 17.4

Less: Unearned income 1,281 1,371 523 144.9

Total loans & leases 1,716,077 1,699,072 1,512,877 13.4

Less: Reserve for losses* 21,835 20,752 17,356 25.8

Net loans and leases 1,694,243 1,678,320 1,495,521 13.3

Securities** 409,632 393,335 365,685 12.0

Other real estate owned 2,081 2,227 2,669 -22.0

Goodwill and other intangibles 17,912 17,643 16,415 9.1

All other assets 354,524 354,325 257,313 37.8

Total liabilities and capital 2,478,392 2,445,850 2,137,603 15.9

Deposits 2,049,529 2,013,148 1,755,739 16.7

 Domestic office deposits 2,047,170 2,010,761 1,753,428 16.8

Foreign office deposits 2,359 2,387 2,311 2.1

 Brokered deposits 60,915 61,817 61,984 -1.7

Estimated insured deposits 1,445,317 1,435,380 1,285,824 12.4

Other borrowed funds 131,838 140,566 108,455 21.6

Subordinated debt 241 237 261 -7.4

All other liabilities 25,099 25,113 19,485 28.8

Total equity capital (includes minority interests) 271,684 266,784 253,664 7.1

 Bank equity capital 271,583 266,683 253,579 7.1

Loans and leases 30-89 days past due 6,672 6,910 7,628 -12.5

Noncurrent loans and leases 13,660 13,567 12,033 13.5

Restructured loans and leases 5,556 5,632 5,723 -2.9

Mortgage-backed securities 189,380 184,775 168,472 12.4

Earning assets 2,318,133 2,287,425 1,988,253 16.6

FHLB Advances 83,496 89,819 87,892 -5.0

Unused loan commitments 337,843 325,233 299,733 12.7

Trust assets 262,884 276,934 247,647 6.2

Assets securitized and sold 21,601 20,587 17,412 24.1

Notional amount of derivatives 203,286 171,333 99,908 103.5

INCOME DATA

First Three 

Quarters 2020

First Three 

Quarters 2019 %Change

3rd Quarter 

2020

3rd Quarter 

2019

%Change 

19Q3-20 Q3

Total interest income $66,298 $67,061 -1.1 $21,832 $22,953 -4.9

Total interest expense 10,690 13,618 -21.5 3,017 4,775 -36.8

Net interest income 55,608 53,443 4.1 18,815 18,178 3.5

Provision for credit losses*** 5,762 1,958 194.3 1,617 747 116.6

Total noninterest income 17,551 13,303 31.9 7,029 4,881 44.0

Total noninterest expense 45,868 42,745 7.3 15,794 14,529 8.7

Securities gains (losses) 673 560 N/M 343 152 N/M

Applicable income taxes 3,621 3,824 -5.3 1,503 1,340 12.2

Extraordinary gains, net**** 1 141 N/M 0 3 N/M

Total net income (includes minority interests) 18,582 18,920 -1.8 7,272 6,599 10.2

 Bank net income 18,546 18,907 -1.9 7,252 6,592 10.0

Net charge-offs 1,328 1,261 5.3 417 536 -22.1

Cash dividends 8,063 9,186 -12.2 2,532 2,887 -12.3

Retained earnings 10,484 9,721 7.8 4,720 3,705 27.4

Net operating income 18,003 18,303 -1.6 6,992 6,465 8.2

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

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

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

this item represents the provision for loan and lease losses.

**** See Notes to Users for explanation. N/M - Not Meaningful
2020   •   Volume 14  • Number 4

20 FDIC QUARTERLY

TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks

Third Quarter 2020

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 4,590 508 520 1,007 1,246 1,024 285

Total employees (full-time equivalent) 390,661 78,806 42,940 81,626 70,185 83,470 33,634

CONDITION DATA

Total assets $2,478,392 $622,956 $262,857 $458,950 $421,830 $456,815 $254,983

Loans secured by real estate 1,211,065 352,548 128,192 215,165 187,828 208,549 118,784

1-4 Family residential mortgages 391,904 134,960 38,880 67,822 55,228 67,485 27,529

Nonfarm nonresidential 481,865 130,639 58,512 82,516 64,711 86,559 58,927

 Construction and development 114,262 25,953 14,378 18,048 17,083 28,669 10,131

Home equity lines 42,943 13,000 5,807 9,273 4,829 4,451 5,583

Commercial & industrial loans 346,080 77,824 38,270 65,689 60,637 62,648 41,014

Loans to individuals 64,237 15,906 6,043 12,545 11,376 12,412 5,955

 Credit cards 2,021 422 100 209 572 326 393

Farm loans 51,075 587 1,423 8,284 28,683 9,074 3,024

Other loans & leases 44,900 9,195 3,549 12,549 7,336 7,291 4,980

Less: Unearned income 1,281 224 224 132 161 279 260

Total loans & leases 1,716,077 455,835 177,252 314,099 295,699 299,696 173,497

Less: Reserve for losses** 21,835 5,408 2,223 3,831 4,038 3,891 2,445

Net loans and leases 1,694,243 450,427 175,030 310,268 291,661 295,805 171,052

Securities*** 409,632 86,279 44,069 81,788 70,640 85,541 41,315

Other real estate owned 2,081 325 360 398 405 498 96

Goodwill and other intangibles 17,912 5,137 1,256 3,541 2,679 2,928 2,371

All other assets 354,524 80,788 42,143 62,955 56,446 72,043 40,149

Total liabilities and capital 2,478,392 622,956 262,857 458,950 421,830 456,815 254,983

Deposits 2,049,529 506,348 218,925 377,392 350,909 385,166 210,789

 Domestic office deposits 2,047,170 505,804 218,912 377,235 350,909 385,166 209,144

Foreign office deposits 2,359 544 13 157 0 0 1,645

 Brokered deposits 60,915 21,860 4,168 10,835 11,668 8,003 4,382

 Estimated insured deposits 1,445,317 356,602 151,507 281,681 262,061 267,433 126,033

Other borrowed funds 131,838 39,849 13,500 26,742 20,982 17,233 13,532

Subordinated debt 241 133 12 31 11 42 11

All other liabilities 25,099 8,568 2,218 4,221 3,624 3,662 2,806

Total equity capital (includes minority interests) 271,684 68,057 28,202 50,563 46,304 50,712 27,846

 Bank equity capital 271,583 68,029 28,207 50,505 46,303 50,695 27,845

Loans and leases 30-89 days past due 6,672 1,704 698 1,127 1,113 1,578 452

Noncurrent loans and leases 13,660 3,841 1,270 2,519 2,290 2,841 899

Restructured loans and leases 5,556 1,757 480 1,349 886 725 360

Mortgage-backed securities 189,380 48,554 20,346 34,219 27,612 33,908 24,740

Earning assets 2,318,133 583,693 245,246 429,446 395,133 425,839 238,776

FHLB Advances 83,496 28,387 7,510 17,806 14,060 9,767 5,965

Unused loan commitments 337,843 88,339 30,235 63,255 62,759 54,191 39,063

Trust assets 262,884 57,407 8,185 57,783 90,840 31,333 17,336

Assets securitized and sold 21,601 7,843 104 5,288 4,424 3,751 191

Notional amount of derivatives 203,286 61,319 23,643 48,652 35,840 20,417 13,415

INCOME DATA

Total interest income $21,832 $5,236 $2,309 $3,974 $3,885 $4,243 $2,184

Total interest expense 3,017 864 292 547 566 539 209

Net interest income 18,815 4,373 2,018 3,427 3,319 3,704 1,975

Provision for credit losses  1,617 426 212 301 248 274 155

Total noninterest income 7,029 1,288 664 1,872 1,347 1,305 553

Total noninterest expense 15,794 3,606 1,718 3,112 2,730 3,104 1,524

Securities gains (losses) 343 147 40 30 48 59 18

Applicable income taxes 1,503 380 143 344 238 212 187

Extraordinary gains, net** *** 0 0 0 0 0 0 0

Total net income (includes minority interests) 7,272 1,395 649 1,572 1,498 1,477 680

 Bank net income 7,252 1,394 644 1,568 1,498 1,468 680

Net charge-offs 417 90 49 76 79 90 33

Cash dividends 2,532 312 130 646 632 566 247

Retained earnings 4,720 1,082 514 922 866 902 433

Net operating income 6,992 1,283 616 1,546 1,455 1,427 665

* See Table V-A for explanation.

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

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

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

this item represents the provision for loan and lease losses.

** *** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Third Quarter 2020, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Third Quarter 2020, Geographic Regions*

 3rd Quarter 

2020

2nd Quarter 

2020 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 3.80 4.14 3.63 3.80 3.73 3.96 4.01 3.68

Cost of funding earning assets 0.53 0.63 0.60 0.48 0.51 0.58 0.51 0.35

Net interest margin 3.27 3.51 3.03 3.32 3.22 3.39 3.50 3.33

Noninterest income to assets 1.14 1.03 0.84 1.02 1.65 1.29 1.15 0.87

Noninterest expense to assets 2.57 2.63 2.34 2.64 2.73 2.61 2.73 2.41

Loan and lease loss provision to assets 0.26 0.41 0.28 0.33 0.26 0.24 0.24 0.24

Net operating income to assets 1.14 1.05 0.83 0.95 1.36 1.39 1.26 1.05

Pretax return on assets 1.43 1.35 1.15 1.21 1.68 1.66 1.48 1.37

Return on assets 1.18 1.13 0.91 0.99 1.38 1.43 1.29 1.07

Return on equity 10.80 10.01 8.28 9.24 12.57 13.08 11.73 9.88

Net charge-offs to loans and leases 0.10 0.13 0.08 0.11 0.10 0.11 0.12 0.08

Loan and lease loss provision to net charge-offs 387.52 460.97 473.68 431.79 395.76 314.64 305.39 465.07

Efficiency ratio 60.60 60.39 62.89 63.47 58.30 58.09 61.70 59.72

Net interest income to operating revenue 72.80 76.04 77.25 75.25 64.67 71.12 73.95 78.13

% of unprofitable institutions 4.84 5.10 6.30 7.31 4.57 3.37 4.39 6.67

% of institutions with earnings gains 48.43 53.55 51.18 45.96 54.82 48.23 41.89 49.82

Table V-B. First Three Quarters 2020, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks First Three Quarters 2020, Geographic Regions*

First Three 

Quarters 2020

First Three 

Quarters 2019 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.09 4.63 3.88 4.11 4.01 4.30 4.33 4.01

Cost of funding earning assets 0.66 0.95 0.76 0.61 0.64 0.71 0.63 0.47

Net interest margin 3.43 3.68 3.12 3.50 3.36 3.59 3.70 3.53

Noninterest income to assets 1.01 0.85 0.74 0.93 1.43 1.12 1.03 0.78

Noninterest expense to assets 2.64 2.74 2.42 2.75 2.77 2.66 2.82 2.50

Loan and lease loss provision to assets 0.33 0.13 0.37 0.38 0.28 0.28 0.31 0.39

Net operating income to assets 1.04 1.18 0.69 0.87 1.25 1.33 1.18 0.94

Pretax return on assets 1.28 1.46 0.88 1.11 1.55 1.58 1.39 1.22

Return on assets 1.07 1.21 0.69 0.92 1.28 1.37 1.23 0.97

Return on equity 9.46 10.43 6.15 8.21 11.32 12.22 10.83 8.44

Net charge-offs to loans and leases 0.11 0.12 0.09 0.09 0.10 0.12 0.15 0.13

Loan and lease loss provision to net charge-offs 433.75 154.21 590.96 620.97 406.74 332.27 319.45 455.16

Efficiency ratio 62.14 63.53 65.16 64.95 60.14 59.00 62.76 61.07

Net interest income to operating revenue 76.01 80.12 79.69 77.76 68.74 74.94 76.98 80.89

% of unprofitable institutions 4.64 3.77 8.66 8.08 4.47 1.77 3.91 7.02

% of institutions with earnings gains 50.63 63.91 36.22 44.42 57.40 58.03 46.97 44.56

* See Table V-A for explanation.
2020   •   Volume 14  • Number 4

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

September 30, 2020

Geographic Regions*

All Community Banks New York Atlanta Chicago Kansas City Dallas San Francisco

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.37 0.33 0.40 0.38 0.36 0.47 0.23

Construction and development 0.39 0.31 0.36 0.39 0.45 0.42 0.44

Nonfarm nonresidential 0.28 0.31 0.26 0.30 0.27 0.31 0.17

Multifamily residential real estate 0.16 0.20 0.19 0.13 0.17 0.14 0.05

Home equity loans 0.39 0.46 0.36 0.36 0.36 0.47 0.26

Other 1-4 family residential 0.51 0.38 0.67 0.57 0.47 0.72 0.33

Commercial and industrial loans 0.32 0.41 0.27 0.27 0.32 0.35 0.24

Loans to individuals 1.18 1.18 1.16 0.60 0.74 2.31 0.94

Credit card loans 1.40 0.97 1.40 1.03 2.24 0.64 1.48

Other loans to individuals 1.17 1.18 1.16 0.59 0.66 2.36 0.90

All other loans and leases (including farm) 0.38 0.32 0.14 0.29 0.44 0.50 0.26

Total loans and leases 0.39 0.37 0.39 0.36 0.38 0.53 0.26

Percent of Loans Noncurrent

All loans secured by real estate 0.84 0.90 0.77 0.89 0.79 0.96 0.50

Construction and development 0.66 0.84 0.62 0.68 0.56 0.54 0.66

Nonfarm nonresidential 0.76 0.89 0.65 0.88 0.71 0.79 0.39

Multifamily residential real estate 0.29 0.25 0.31 0.43 0.33 0.22 0.18

Home equity loans 0.58 0.68 0.46 0.51 0.26 0.50 0.92

Other 1-4 family residential 1.00 1.15 0.99 0.96 0.57 1.29 0.47

Commercial and industrial loans 0.65 0.70 0.59 0.66 0.55 0.83 0.49

Loans to individuals 0.54 0.46 0.57 0.32 0.34 1.09 0.41

Credit card loans 0.59 0.74 0.35 0.30 0.89 0.34 0.44

Other loans to individuals 0.54 0.46 0.57 0.32 0.31 1.11 0.41

All other loans and leases (including farm) 0.92 0.39 0.53 0.61 1.20 1.09 1.03

Total loans and leases 0.80 0.84 0.72 0.80 0.77 0.95 0.52

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.04 0.04 0.00 0.05 0.06 0.04 0.01

Construction and development 0.03 0.04 0.00 0.04 0.06 0.02 0.05

Nonfarm nonresidential 0.06 0.08 0.00 0.08 0.11 0.06 0.01

Multifamily residential real estate 0.00 0.00 0.00 0.02 0.00 0.01 0.00

Home equity loans 0.02 0.03 0.01 0.01 0.02 0.06 -0.01

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

Commercial and industrial loans 0.25 0.15 0.31 0.25 0.16 0.35 0.34

Loans to individuals 0.75 0.76 0.70 0.30 0.88 0.96 1.08

Credit card loans 5.40 4.46 1.46 1.71 12.24 1.31 2.39

Other loans to individuals 0.60 0.66 0.68 0.27 0.26 0.95 0.98

All other loans and leases (including farm) 0.18 0.13 0.30 0.15 0.16 0.21 0.28

Total loans and leases 0.11 0.09 0.09 0.10 0.12 0.15 0.13

Loans Outstanding (in billions)

All loans secured by real estate $1,211.1 $352.5 $128.2 $215.2 $187.8 $208.5 $118.8

Construction and development 114.3 26.0 14.4 18.0 17.1 28.7 10.1

Nonfarm nonresidential 481.9 130.6 58.5 82.5 64.7 86.6 58.9

Multifamily residential real estate 104.0 45.8 6.2 19.8 11.9 7.7 12.6

Home equity loans 42.9 13.0 5.8 9.3 4.8 4.5 5.6

Other 1-4 family residential 391.9 135.0 38.9 67.8 55.2 67.5 27.5

Commercial and industrial loans 346.1 77.8 38.3 65.7 60.6 62.6 41.0

Loans to individuals 64.2 15.9 6.0 12.5 11.4 12.4 6.0

Credit card loans 2.0 0.4 0.1 0.2 0.6 0.3 0.4

Other loans to individuals 62.2 15.5 5.9 12.3 10.8 12.1 5.6

All other loans and leases (including farm) 96.0 9.8 5.0 20.8 36.0 16.4 8.0

Total loans and leases 1,717.4 456.1 177.5 314.2 295.9 300.0 173.8

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 337,843 88,339 30,235 63,255 62,759 54,191 39,063

Construction and development: 1-4 family residential 26,268 4,713 3,718 3,237 4,147 7,720 2,733

Construction and development: CRE and other 64,854 19,480 6,672 10,561 9,492 12,397 6,252

Commercial and industrial 115,693 29,820 9,162 24,824 20,619 17,906 13,363

* See Table V-A for explanation.

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

FDIC QUARTERLY 23

INSURANCE FUND INDICATORS

Deposit Insurance Fund Increases by $1.8 Billion

DIF Reserve Ratio Is Unchanged at 1.30 Percent

No Insured Institutions Failed in the Third Quarter

During the third quarter, the Deposit Insurance Fund (DIF) balance increased by $1.8 billion 

to $116.4 billion. Assessment income of $2.0 billion, interest earned on investments of 

$392 million, and negative provisions for insurance losses of $74 million were the largest 

sources of the increase. Operating expenses of $451 million and losses on available-forsale securities of $284 million reduced the fund. No insured institutions failed in the third 

quarter of 2020.

The deposit insurance assessment base—average consolidated total assets minus average tangible equity—increased by 1.7 percent in the third quarter and by 16.1 percent over 

12  months.1,2 Total estimated insured deposits increased by 1.0 percent in the third quarter 

of 2020 and by 15.3 percent year over year.

The DIF’s reserve ratio (the fund balance as a percent of estimated insured deposits) was 

1.30 percent on September 30, 2020, unchanged from the previous quarter. The third quarter 

reserve ratio is 11 basis points lower than the previous year. The sharp 12-month decline 

was almost entirely the result of extraordinary insured deposit growth in the first and 

second quarter of 2020.

If the reserve ratio drops below 1.35 percent, the Dodd Frank Act requires that the FDIC has 

a minimum of eight years to return the reserve ratio to 1.35 percent (or longer if warranted 

by extraordinary circumstances), reducing the likelihood of a large increase in assessment 

rates. On September 15, 2020, the Federal Deposit Insurance Corporation (FDIC) Board of 

Directors (Board) voted to adopt a Restoration Plan to restore the Deposit Insurance Fund 

(DIF) reserve ratio to at least 1.35 percent within 8 years, as required by the Federal Deposit 

Insurance Act. Under the Restoration Plan, the FDIC will: (1) monitor deposit balance trends, 

potential losses, and other factors that affect the reserve ratio; (2) maintain the current 

schedule of assessment rates for all insured depository institutions (IDIs); and (3) provide 

updates to its loss and income projections at least semiannually.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

1 There are additional adjustments to the assessment base for banker’s banks and custodial banks.

2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition 

to insured commercial banks and savings institutions.
2020   •   Volume 14  • Number 4

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.36 1.36 1.36

1.40 1.41 1.41

1.27 1.30 1.30 1.33

1.38

1.30 1.30

9/17 12/17 3/18 6/18 9/18 12/18 3/19 6/19 9/19 12/19 3/20 6/20 9/20

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

3rd 

Quarter 

2020

2nd 

Quarter 

2020

1st 

Quarter 

2020

4th 

Quarter 

2019

3rd 

Quarter 

2019

2nd 

Quarter 

2019

1st 

Quarter 

2019

4th 

Quarter 

2018

3rd 

Quarter 

2018

2nd 

Quarter 

2018

1st 

Quarter 

2018

4th 

Quarter 

2017

3rd 

Quarter 

2017

Beginning Fund Balance $114,651 $113,206 $110,347 $108,940 $107,446 $104,870 $102,609 $100,204 $97,588 $95,072 $92,747 $90,506 $87,588

Changes in Fund Balance:

Assessments earned 2,047 1,790 1,372 1,272 1,111 1,187 1,369 1,351 2,728 2,598 2,850 2,656 2,568

Interest earned on 

investment securities 392 454 507 531 544 535 507 481 433 381 338 305 274

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 451 465 460 460 443 459 434 453 434 445 433 443 404

Provision for insurance 

losses -74 -47 12 -88 -192 -610 -396 -236 -121 -141 -65 -203 -512

All other income, 

net of expenses 5 2 2 21 4 9 2 2 2 3 1 3 1

Unrealized gain/(loss) on 

available-for-sale 

securities** -284 -383 1,450 -45 86 694 421 788 -234 -162 -496 -481 -33

Total fund balance change 1,783 1,445 2,859 1,407 1,494 2,576 2,261 2,405 2,616 2,516 2,325 2,242 2,918

Ending Fund Balance 116,434 114,651 113,206 110,347 108,940 107,446 104,870 102,609 100,204 97,588 95,072 92,747 90,506

Percent change from 

 four quarters earlier 8.37 6.71 7.95 7.54 8.72 10.10 10.31 10.63 10.72 11.42 11.95 11.53 12.14

Reserve Ratio (%) 1.30 1.30 1.38 1.41 1.41 1.40 1.36 1.36 1.36 1.33 1.30 1.30 1.27

Estimated Insured 

Deposits 8,926,625 8,836,026 8,178,645 7,825,347 7,741,394 7,692,252 7,696,440 7,522,441 7,375,867 7,353,996 7,333,159 7,154,379 7,099,292

Percent change from 

 four quarters earlier 15.31 14.87 6.27 4.03 4.96 4.60 4.95 5.14 3.90 4.35 3.59 3.45 4.16

Domestic Deposits 15,714,977 15,562,008 14,350,253 13,262,206 13,020,253 12,788,773 12,725,363 12,659,406 12,367,954 12,280,904 12,305,817 12,129,503 11,966,478

Percent change from 

 four quarters earlier 20.70 21.68 12.77 4.76 5.27 4.14 3.41 4.37 3.36 3.83 3.79 3.73 3.99

Assessment Base*** 18,463,453 18,153,297 16,483,948 16,156,678 15,904,511 15,684,025 15,561,869 15,452,229 15,229,530 15,113,666 15,068,512 15,001,411 14,834,140

Percent change from 

 four quarters earlier 16.09 15.74 5.93 4.56 4.43 3.77 3.27 3.01 2.67 2.79 3.06 3.01 3.14 `

Number of Institutions 

Reporting 5,042 5,075 5,125 5,186 5,267 5,312 5,371 5,415 5,486 5,551 5,615 5,679 5,747

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

9/17 $90,506 $7,099,292

12/17 92,747 7,154,379

3/18 95,072 7,333,159

6/18 97,588 7,353,996

9/18 100,204 7,375,867

12/18 102,609 7,522,441

3/19 104,870 7,696,440

6/19 107,446 7,692,252

9/19 108,940 7,741,394

12/19 110,347 7,825,347

3/20 113,206 8,178,645

6/20 114,651 8,836,026

9/20 116,434 8,926,625

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2020  2019** ** 2019 2018 2017 2016 2015 2014

Problem Institutions

Number of institutions 56 55 51 60 95 123 183 291

Total assets $53,884 $48,779 $46,190 $48,489 $13,939 $27,624 $46,780 $86,712

Failed Institutions

Number of institutions 2 1 4 0 8 5 8 18

Total assets***** $253 $37 $209 $0 $5,082 $277 $6,706 $2,914

* Quarterly financial statement results are unaudited.

** Includes unrealized postretirement benefit gain (loss).

*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

  Through September 30.

** *** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions)

September 30, 2020

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 4,401 $19,897,357 $14,586,807 $8,024,078

FDIC-Supervised 2,927 3,390,248 2,739,911 1,738,115

OCC-Supervised 774 13,491,152 9,649,136 5,181,694

Federal Reserve-Supervised 700 3,015,957 2,197,760 1,104,269

FDIC-Insured Savings Institutions 632 1,322,385 1,083,231 865,217

OCC-Supervised 284 578,850 457,078 381,609

FDIC-Supervised 312 378,334 291,671 223,999

Federal Reserve-Supervised 36 365,202 334,482 259,609

Total Commercial Banks and Savings Institutions 5,033 21,219,742 15,670,039 8,889,295

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 95,661 44,938 37,329

Total FDIC-Insured Institutions 5,042 21,315,403 15,714,977 8,926,625

* Excludes $1.4 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending June 30, 2020 (dollar figures in billions)

Annual Rate in Basis Points*

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base

Percent of Total 

Assessment Base

1.50 - 3.00 2,929 57.71 $3,243.4 17.87

3.01 - 6.00 1,425 28.08 12,331.3 67.93

6.01 - 10.00 579 11.41 2,371.0 13.06

10.01 - 15.00 72 1.42 177.0 0.97

15.01 - 20.00 66 1.30 30.4 0.17

20.01 - 25.00 1 0.02 0.0 0.00

> 25.00 3 0.06 0.3 0.00

* Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as required by the Dodd-Frank Act.
2020   •   Volume 14  • Number 4

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured Call 

Report filers, both commercial banks and savings institutions. Some 

tables are arrayed by groups of FDIC-insured institutions based 

on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

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

aggregate condition and income data, performance ratios, condition 

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

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://www.fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered 

community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into a 

single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under 

that organization is also considered a community bank when 

working with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step 

involves including organizations that engage in basic banking 

activities as measured by the total loans-to-assets ratio (greater 

than 33 percent) and the ratio of core deposits to assets (greater 

than 50 percent). Core deposits are defined as non-brokered deposits in domestic offices. Analysis of the underlying data shows that 

these thresholds establish meaningful levels of basic lending and 

deposit gathering and still allow for a degree of diversity in how 

individual banks construct their balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more 

than one office, and the maximum number of offices is 40 in 1985 

and reached 87 in 2016. The maximum level of deposits for any 

one office is $1.25 billion in deposits in 1985 and reached $6.97 

billion in deposits in 2016. The remaining geographic limitations 

are also based on maximums for the number of states (fixed at 3) 

and large metropolitan areas (fixed at 2) in which the organization 

maintains offices. Branch office data are based on the most recent 

data from the annual June 30 Summary of Deposits Survey that are 

available at the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities and geographic scope are waived. The asset-size limit is $250 

million in 1985 and reached $1.39 billion in 2016. This final step 

acknowledges the fact that most of those small banks that are not 

excluded as specialty banks meet the requirements for banking 

activities and geographic limits in any event.

Summary of FDIC Research Definition of 

Community Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

•	 credit card specialists

•	 consumer nonbank banks1

•	 industrial loan companies

•	 trust companies

•	 bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 2

— Total assets ≥ indexed size threshold, where:

•	 Loan to assets > 33%

•	 Core deposits to assets > 50%

•	 More than 1 office but no more than the indexed maxim

number of offices.3

•	 Number of large MSAs with offices ≤ 2

•	 Number of states with offices ≤ 3

•	 No single office with deposits > indexed maximum branch

deposit size.4

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), 

problem institutions, failed institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository insti1 Consumer nonbank banks are financial institutions with limited charters that 

can make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and 

$6.97 billion in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

tutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit 

trust companies are not included unless otherwise indicated. Efforts 

are made to obtain financial reports for all active institutions. 

However, in some cases, final financial reports are not available for 

institutions that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports (TFR) submitted 

by all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required to 

file separate reports. Data from subsidiary institution reports are 

included in the Quarterly Banking Profile tables, which can lead to 

double-counting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made 

to the OTS Thrift Financial Reports to provide closer conformance 

with the reporting and accounting requirements of the FFIEC Call 

Reports. (TFR filers began filing Call Reports effective with the 

quarter ending March 31, 2012.)

All condition and performance ratios represent weighted averages, which is the sum of the individual numerator values divided 

by the sum of individual denominator values. All asset and liability 

figures used in calculating performance ratios represent average 

amounts for the period (beginning-of-period amount plus endof-period amount plus any interim periods, divided by the total 

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

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

the year-to-date income includes the results of all merged institutions. No adjustments are made for “purchase accounting” mergers. Growth rates represent the percentage change over a 12-month 

period in totals for institutions in the base period to totals for institutions in the current period. For the community bank subgroup, 

growth rates will reflect changes over time in the number and 

identities of institutions designated as community banks, as well 

as changes in the assets and liabilities, and income and expenses of 

group members. Unless indicated otherwise, growth rates are not 

adjusted for mergers or other changes in the composition of the 

community bank subgroup. When community bank growth rates 

are adjusted for mergers, prior period balances used in the calculations represent totals for the current group of community bank 

reporters, plus prior period amounts for any institutions that were 

subsequently merged into current community banks.

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

reporting institution’s main office. Reported data may include 

assets and liabilities located outside of the reporting institution’s 

home state. In addition, institutions may relocate across state 

lines or change their charters, resulting in an inter-regional or 

inter-industry migration; institutions can move their home offices 

between regions, savings institutions can convert to commercial 

banks, or commercial banks may convert to savings institutions.

ACCOUNTING CHANGES

Financial accounting pronouncements by the Financial Accounting 

Standards Board (FASB) can result in changes in an individual 

bank’s accounting policies and in the Call Reports they submit. Such 

accounting changes can affect the aggregate amounts presented in 

the QBP for the current period and the period-to-period comparability of such financial data. 

The current quarter’s Financial Institution Letter (FIL) and related 

Call Report supplemental instructions can provide additional explanation to the QBP reader beyond any material accounting changes 

discussed in the QBP analysis.

https://www.fdic.gov/news/financial-institution-letters//2020/

fil20097.html

https://www.fdic.gov/regulations/resources/call/call.html

Further information on changes in financial statement presentation, income recognition and disclosure is available from the FASB. http://www.fasb.org/jsp/FASB/Page/

LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair 

market value of derivatives, prepaid deposit insurance assessments, 

and other assets.

All other liabilities – bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance-sheet credit 

losses, fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets 

minus average tangible equity” with an additional adjustment to 

the assessment base for banker’s banks and custodial banks, as 

permitted under Dodd-Frank. Previously the assessment base was 

“assessable deposits” and consisted of deposits in banks’ domestic 

offices with certain adjustments.

Assessment rate schedule – Initial base assessment rates for 

small institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally and operationally complex or that pose unique challenges and 

risks in case of failure (highly complex institutions). The FDIC may 

take additional information into account to make a limited adjustment to a large institution’s scorecard results, which are used to 

determine a large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 
2020   •   Volume 14  • Number 4

28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for large institutions 

that are not well capitalized or do not have a composite CAMELS 

rating of 1 or 2 may increase (not to exceed 10 basis points) if their 

brokered deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that are not the 

minimum or maximum rate will vary between these rates. Total base assessment rates do not 

include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary assessment 

surcharges in order to raise the reserve ratio from 1.15 percent to 1.35  percent. The 

surcharges amount to 4.5 basis points of a large institution’s assessment base (after making 

certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination transmittal date.

Assets securitized and sold – total outstanding principal balance of assets securitized and sold with servicing retained or other 

seller-provided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated 

as Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock 

or noncumulative preferred stock of not-publicly-traded bank 

stock are classified in a bank’s balance sheet as “Other liabilities.”

Common equity Tier 1 capital ratio – ratio of common equity 

Tier 1 capital to risk-weighted assets. Common equity Tier 1 capital 

includes common stock instruments and related surplus, retained 

earnings, accumulated other comprehensive income (AOCI), and 

limited amounts of common equity Tier 1 minority interest, minus 

applicable regulatory adjustments and deductions. Items that are 

fully deducted from common equity Tier 1 capital include goodwill, 

other intangible assets (excluding mortgage servicing assets) and 

certain deferred tax assets; items that are subject to limits in common equity Tier 1 capital include mortgage servicing assets, eligible 

deferred tax assets, and certain significant investments. Beginning 

March 2020, this ratio does not include institutions that have a 

Community Bank Leverage Ratio election in effect at the report 

date.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible assets. The amount 

of eligible intangibles (including servicing rights) included in core 

capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts 

to reduce the credit risk of its obligations. Credit enhancement may 

be provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type 

of enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, 

amounts of derivatives represent the level of involvement in the 

types of derivatives transactions and are not a quantification of 

market risk or credit risk. Notional amounts represent the amounts 

used to calculate contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the 

derivative plus an additional amount for potential future credit 

exposure based on the notional amount, the remaining maturity 

and type of the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified 

future date, a specific quantity of an underlying variable or index 

at a specified price or yield. These contracts exist for a variety of 

variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded on organized exchanges 

which set limits on counterparty credit exposure. Forward contracts do not have standardized terms and are traded over the 

counter.

Option contracts – contracts in which the buyer acquires the 

right to buy from or sell to another party some specified amount 

of an underlying variable or index at a stated price (strike price) 

during a period or on a specified future date, in return for compensation (such as a fee or premium). The seller is obligated to 

purchase or sell the variable or index at the discretion of the 

buyer of the contract.

Swaps – obligations between two parties to exchange a series 

of cash flows at periodic intervals (settlement dates), for a 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

specified period. The cash flows of a swap are either fixed, or 

determined for each settlement date by multiplying the quantity 

(notional principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the 

notional principal is used to calculate each payment but is not 

exchanged.

Derivatives underlying risk exposure – the potential exposure 

characterized by the level of banks’ concentration in particular 

underlying instruments, in general. Exposure can result from 

market risk, credit risk, and operational risk, as well as, interest 

rate risk.

Domestic deposits to total assets – total domestic office deposits 

as a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest 

or dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest 

income. This ratio measures the proportion of net operating revenues that are absorbed by overhead expenses, so that a lower value 

indicates greater efficiency.

Estimated insured deposits – in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Beginning March 31, 2008, for institutions that file Call Reports, 

insured deposits are total assessable deposits minus estimated 

uninsured deposits. Beginning September 30, 2009, insured 

deposits include deposits in accounts of $100,000 to $250,000 

that are covered by a temporary increase in the FDIC’s standard 

maximum deposit insurance amount (SMDIA). The Dodd-Frank 

Wall Street Reform and Consumer Protection Act enacted on July 

21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. Also, the Dodd-Frank Act 

amended the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit insurance 

account category. All funds held in noninterest-bearing transaction 

accounts were fully insured, without limit, from December 31, 2010, 

through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into 

a bridge bank, conservatorship, receivership, or another healthy 

institution. This action may require the FDIC to provide funds to 

cover losses. An institution is defined as “assisted” when the institution remains open and receives assistance in order to continue 

operating.

Fair Value – the valuation of various assets and liabilities on the 

balance sheet—including trading assets and liabilities, availablefor-sale securities, loans held for sale, assets and liabilities accounted for under the fair value option, and foreclosed assets—involves 

the use of fair values. During periods of market stress, the fair values 

of some financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC-insured institutions 

from the Federal Home Loan Bank System (FHLB), as reported by 

Call Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include 

servicing rights, purchased credit card relationships, and other 

identifiable intangible assets. Goodwill is the excess of the purchase 

price over the fair market value of the net assets acquired, less 

subsequent impairment adjustments. Other intangible assets are 

recorded at fair value, less subsequent quarterly amortization and 

impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other 

loans secured by real estate.

Loans to individuals – includes outstanding credit card balances 

and other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with 

remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed from 

balance sheet because of uncollectability), less amounts recovered 

on loans and leases previously charged off.

Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to depositors and other creditors, expressed as a percentage of average 

earning assets. No adjustments are made for interest income that is 

tax exempt.

Net loans to total assets – loans and lease financing receivables, 

net of unearned income, allowance and reserves, as a percent of 

total assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities 

and extraordinary items. Income taxes subtracted from operating 

income have been adjusted to exclude the portion applicable to 

securities gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

other assets that are 90 days or more past due, or in nonaccrual 

status.

Noncurrent loans & leases – the sum of loans and leases 90 days 

or more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions 

that actually filed a financial report.

New reporters – insured institutions filing quarterly financial 

reports for the first time.

Other borrowed funds – federal funds purchased, securities 

sold with agreements to repurchase, demand notes issued to the 

U.S. Treasury, FHLB advances, other borrowed money, mortgage 

indebtedness, obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. The 

amount is reflected net of valuation allowances. For institutions 

that filed a Thrift Financial Report (TFR), the valuation allowance 

subtracted also includes allowances for other repossessed assets. 

Also, for TFR filers the components of other real estate owned are 

reported gross of valuation allowances. (TFR filers began filing Call 

Reports effective with the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of 

institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier.
2020   •   Volume 14  • Number 4

30 FDIC QUARTERLY

“Problem” institutions – federal regulators assign a composite 

rating to each financial institution, based upon an evaluation of 

financial and operational criteria. The rating is based on a scale of 

1 to 5 in ascending order of supervisory concern. “Problem” institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. 

Depending upon the degree of risk and supervisory concern, they 

are rated either a “4” or “5.” The number and assets of “problem” 

institutions are based on FDIC composite ratings. Prior to March 31, 

2008, for institutions whose primary federal regulator was the OTS, 

the OTS composite rating was used.

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common 

and preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as off-balancesheet items multiplied by risk-weights that range from zero to 

200 percent. A conversion factor is used to assign a balance sheet 

equivalent amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ 

securities portfolios consist of securities designated as “held-tomaturity” (reported at amortized cost (book value)), securities designated as “available-for-sale” (reported at fair (market) value), 

and equity securities with readily determinable fair values not held 

for trading.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for 

income taxes. Thrift Financial Report (TFR) filers also include gains 

(losses) on the sales of assets held for sale. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the 

reporting bank’s ownership interest in loans and other assets that 

have been securitized, except an interest that is a form of recourse 

or other seller-provided credit enhancement. Seller’s interests 

differ from the securities issued to investors by the securitization 

structure. The principal amount of a seller’s interest is generally 

equal to the total principal amount of the pool of assets included 

in the securitization structure less the principal amount of those 

assets attributable to investors, i.e., in the form of securities issued 

to investors.

Small Business Lending Fund – The Small Business Lending 

Fund (SBLF) was enacted into law in September 2010 as part 

of the Small Business Jobs Act of 2010 to encourage lending to 

small businesses by providing capital to qualified community 

institutions with assets of less than $10 billion. The SBLF Program 

is administered by the U.S. Treasury Department (https://

home.treasury.gov/policy-issues/small-business-programs/

small-business-lending-fund).

Under the SBLF Program, the Treasury Department purchased 

noncumulative perpetual preferred stock from qualifying 

depository institutions and holding companies (other than 

Subchapter S and mutual institutions). When this stock has been 

issued by a depository institution, it is reported as “Perpetual 

preferred stock and related surplus.” For regulatory capital 

purposes, this noncumulative perpetual preferred stock qualifies as 

a component of Tier 1 capital. Qualifying Subchapter S corporations 

and mutual institutions issue unsecured subordinated debentures to 

the Treasury Department through the SBLF. Depository institutions 

that issued these debentures report them as “Subordinated notes 

and debentures.” For regulatory capital purposes, the debentures 

are eligible for inclusion in an institution’s Tier 2 capital in 

accordance with their primary federal regulator’s capital standards. 

To participate in the SBLF Program, an institution with outstanding 

securities issued to the Treasury Department under the Capital 

Purchase Program (CPP) was required to refinance or repay in full 

the CPP securities at the time of the SBLF funding. Any outstanding 

warrants that an institution issued to the Treasury Department 

under the CPP remain outstanding after the refinancing of the CPP 

stock through the SBLF Program unless the institution chooses to 

repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal 

income tax purposes. It is generally not subject to any federal 

income taxes at the corporate level. This can have the effect of 

reducing institutions’ reported taxes and increasing their after-tax 

earnings.

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held 

in fiduciary accounts include real estate, equipment, collectibles, 

and household goods. Such fiduciary assets are not included in the 

assets of the financial institution.

Unearned income and contra accounts – unearned income for 

Call Report filers only.

Unused loan commitments – includes credit card lines, home 

equity lines, commitments to make loans for construction, loans 

secured by commercial real estate, and unused commitments to 

originate or purchase loans. (Excluded are commitments after 

June 2003 for originated mortgage loans held for sale, which are 

accounted for as derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.
THE IMPORTANCE OF COMMUNITY BANKS 

IN PAYCHECK PROTECTION PROGRAM LENDING

Community banks play an important role providing financial services to local customers 

and small businesses.1 Despite their relatively small size and share of banking industry 

assets, community banks have consistently demonstrated an ability to serve their 

customers. Even before the COVID-19 pandemic, community banks held an outsized 

share of small business loans.2 At year-end 2019, community banks held about 25 percent 

of small business loans, well above their share of 15 percent of total banking industry 

loans. Community bank participation in the U.S. Small Business Administration’s 

Paycheck Protection Program (PPP) was also proportionately larger than their size in 

the banking industry. Other published analyses have discussed PPP activity in aggregate 

and by institution size. This article focuses on contributions of community banks to 

the PPP and explores how factors such as community bank location, specialty, and size 

affected participation.

What Is the Paycheck Protection Program?

The Paycheck Protection Program (PPP) was created through Section 1102 of the 

Coronavirus Aid, Relief, and Emergency Services Act (CARES Act). This program—which 

is administered by the U.S. Small Business Administration (SBA) with support from the 

U.S. Department of the Treasury—made $659 billion available to small businesses in 

potentially forgivable loans to pay up to 24 weeks of eligible employee salaries, payroll 

costs, and benefits as well as other qualified expenses, such as mortgage interest, rent, 

and utilities. The bank forgives 100 percent of the loan if 60 percent of the funds were 

used for those purposes. The SBA guarantees the loans and pays banks for the forgiven 

loans and accrued interest as prescribed in Section 1106 of the CARES Act. Applications 

for PPP loans were accepted from April 3, 2020, through August 8, 2020, and more than 

$525 billion in loans were originated. The loans had a $10 million limit, a 1 percent 

interest rate, and a term of two years, or a term of up to five years for loans made on 

June 5, 2020, and after. Lenders received an origination fee of 1 to 5 percent, depending 

upon the size of the loan. The SBA began accepting applications for loan forgiveness on 

August 10, 2020.

Community Banks 

Were Active Participants 

in the PPP

Banks hold the vast majority of the $525 billion in PPP loans made by banks and nonbanks. 

Community banks’ participation in the PPP outpaced noncommunity banks. As of June 

30, 2020, banks held $482 billion, or 92 percent of total PPP loans. Community banks held 

$148 billion—28 percent of total PPP loans and 31 percent of PPP loans held by banks.3

This share is significant, as community banks held 12 percent of total industry assets and 

15 percent of total industry loans as of June 30, 2020 (Chart 1).

PPP loan origination contributed to total quarterly loan growth at community banks, which 

outpaced quarterly loan growth in the banking industry in second quarter 2020. Industry 

loan growth between first and second quarter 2020 was $34 billion, or 0.3 percent (Chart 2). 

The banking industry’s commercial and industrial (C&I) loans, where most PPP loans were 

categorized, grew 6 percent quarter over quarter.4 Community banks, however, reported 

a quarterly loan growth rate of 10 percent in second quarter 2020 and a quarterly C&I loan 

growth rate of 63 percent in second quarter 2020.

1 In this article, the term community banks refers to those institutions that meet the definition created in the FDIC 2012 

Community Bank Study (https://www.fdic.gov/regulations/resources/cbi/study.html). 

2 In this article, small business loans are commercial and industrial (C&I) loans with original amounts of $1 million 

or less.

3 Banks began reporting participation in the PPP starting with second quarter 2020 Consolidated Reports of Condition 

and Income (Call Reports). The instructions for the line item for the outstanding balance of PPP loans state “held for 

investment and held for sale” rather than “originated.” This line item does not report the amount of loans originated, 

but PPP loans reported by banks are assumed to have originated or been purchased by those banks.

4 PPP loans are presumed to be predominantly C&I loans because of the lack of collateral and the loan purposes 

prescribed by the program. 

FDIC QUARTERLY 31
2020   •   Volume 14  • Number 4

32 FDIC QUARTERLY

0

15

30

45

60

75

90

Community Banks

(4,624 Banks)

Noncommunity Banks

(442 Banks)

Community Banks Hold a Disproportionately High Share of PPP Loans

Share of Industry Loan Balances 

Source: FDIC.

Note: Not all banks in the count displayed hold Paycheck Protection Program (PPP) loans: 83 percent of the 4,624  community banks and 73 percent 

of the 442 noncommunity banks hold PPP loans. Data as of June 30, 2020. 

Percent

15%

85%

13%

87%

31%

69%

Total Loans Commercial and Industrial Loans PPP Loans

Chart 1

Community Banks Reported Much Larger Total Loan Growth and C&I Loan Growth

Than the Industry Overall in Second Quarter 2020

Quarterly Growth Rate

Source: FDIC.

Note: Data as of June 30, 2020. 

Percent Total Loans Commercial and Industrial Loans

10%

6%

63%

0.3% 0

10

20

30

40

50

60

70

Industry Community Banks

Chart 2

The average PPP loan for noncommunity banks was $112,000, while at community banks 

the average PPP loan was $103,000. Based on these sizes, the average PPP loan would be 

reported as a small business loan in the Call Report. In aggregate, as of second quarter 

2020, community bank small business loans increased $90 billion (101 percent) year over 

year to $179 billion, while noncommunity bank small business loans rose $168 billion 

(60 percent) to $447 billion. 5 In second quarter 2019, one year before the PPP began, 

community banks held 25 percent of small business loans. As of second quarter 2020, 

community banks held 29 percent. Therefore, PPP loans boosted community banks’ share 

of loans to small businesses (Chart 3).

5 The growth rate for small C&I loans is annual, as the data were collected from June 30 and December 31 Call Reports.
IMPORTANCE OF COMMUNITY BANKS IN PAYCHECK PROTECTION PROGRAM LENDING

FDIC QUARTERLY 33

PPP Loans Boosted Community Banks’ Share of Loans to Small Businesses 

Community Bank Share

Source: FDIC.

Note: PPP stands for Paycheck Protection Program. Data as of June 30 each year. 

Percent

28%

26%

25%

29%

0

10

20

30

Small Loans to Businesses

2017 2018 2019 2020

Chart 3

Community Banks 

Throughout the United 

States Participated in PPP

PPP loans provide small businesses with funds to pay employees during the slowdown 

in business or temporary closures related to stay-at-home orders during the pandemic. 

Regardless of the degree of business closure, community banks in all 50 states provided 

PPP loans to small businesses. Nearly all 50 states and five territories reported 75 percent or 

more of their community banks participated in the program, based on outstanding loans as 

of June 30, 2020 (see map).

Nearly All States Reported 75 Percent or More of Their Community Banks

Participated in the PPP

Source: FDIC.

Note: PPP stands for Paycheck Protection Program. Based on the state in which the community bank (CB) is headquartered. Data as of June 30, 2020. 

Percentage of CBs

Participating in The PPP

>75%

< = 75%
2020   •   Volume 14  • Number 4

34 FDIC QUARTERLY

Community banks in metropolitan, micropolitan, and rural areas hold PPP loans.6 The 

share of PPP loans held by community banks in micropolitan areas (63 percent) and rural 

areas (84 percent) closely matches their share of total loans and C&I loans in those areas. 

Community banks in metropolitan areas, however, hold a higher share of PPP loans 

than other loans. Community banks hold 26 percent of total PPP loans in metropolitan 

areas, well above their 10 percent share of total C&I loans in metropolitan areas (Chart 4). 

Community banks in metropolitan areas held the vast majority ($110 billion or 74 percent) 

of PPP loans in community banks nationally, and 85 percent of community banks in 

metropolitan areas participated in the PPP loan program.

0

15

30

45

60

75

90

Metropolitan Community Banks Hold a Greater Share of PPP Loans

Than Their Share of Other Loans 

Community Bank Share

Source: FDIC.

Note: PPP stands for Paycheck Protection Program. Numerator is community bank loan balances in area; denominator is all bank loan balances in

area. Figures are based on where the bank is headquartered. Data as of June 30, 2020. 

Percent Total Loans Commercial and Industrial Loans PPP Loans

12%

63%

86%

10%

63%

84%

26%

63%

84%

Metro Micro Rural

Chart 4

Commercial Lending 

Specialists Hold the 

Most PPP Loans

Among all bank lending specialty categories, commercial lenders dominated community 

bank PPP lending.7 Commercial specialty community banks and agriculture specialty 

community banks hold a total of $143 billion in PPP loans, or 96 percent of all community 

bank PPP loans. Most banks (61 percent) that held PPP loans as of second quarter 2020 

are commercial specialty banks.8 Commercial specialty noncommunity banks hold 

52 percent ($1.4 trillion) of industry C&I loans and 77 percent ($373 billion) of industry 

PPP loans. Commercial specialty community banks hold 22 percent ($306 billion) of 

the specialty’s C&I loans, yet hold 36 percent ($133 billion) of the specialty’s PPP loans 

(Chart 5). The next-largest specialty group holding PPP loans—by the number of banks—

is the agriculture specialty group, with 24 percent of banks. Agriculture specialty banks 

hold 2 percent ($11 billion) of industry PPP loans and hold 1 percent of industry C&I loans.9

Almost all agriculture specialty banks (99 percent) are community banks. Agriculture 

6 As defined by the U.S. Census Bureau, metropolitan areas consist of metropolitan statistical areas or counties with 

more than 50,000 persons; micropolitan areas consist of micropolitan statistical areas or counties with less than 50,000 

but more than 10,000 persons. Rural areas are all counties that do not meet either definition. 

7 Bank specialties include international, agriculture, credit card, commercial, mortgage, consumer, other less than 

$1 billion, all other less than $1 billion, and all other greater than $1 billion. Specialties are hierarchical, mutually 

exclusive, and based on percentage of assets. The percentage varies among specialty definitions. For example, credit 

card banks have 50 percent of assets in credit card loans, while agriculture banks have agriculture loans equal to or 

greater than 25 percent of loans. Specialty groups are detailed in the FDIC Quarterly Banking Profile.

8 Commercial specialists are banks that are not international, agriculture, or credit card specialists, and whose 

commercial and industrial loans, real estate construction and development loans, and loans secured by commercial real 

estate exceed 25 percent of total assets.

9 Since many farms are small businesses, some PPP loans were made for agricultural production purposes, although the 

exact dollar amount is not shown in Call Reports. 
IMPORTANCE OF COMMUNITY BANKS IN PAYCHECK PROTECTION PROGRAM LENDING

FDIC QUARTERLY 35

specialty community banks hold 94 percent ($28 billion) of the specialty’s C&I loans and 

93 percent ($10 billion) of the specialty’s PPP loans. While community banks in other 

specialty groups also hold PPP loans and made a disproportionate share of PPP loans given 

their specialty’s share of industry loan balances, their aggregate total was just $5.5 billion, 

or 4 percent of the $148 billion total for all community banks.

Community Banks Specializing in Commercial Lending 

Made the Majority of Community Bank PPP Loans

Source: FDIC.

Note: Community banks only. Not all banks in the count of banks hold Paycheck Protection Program (PPP) loans. Other includes mortgage, 

consumer, and other specialty banks. Data as of June 30, 2020. 

200,071

80,238

1,158,082

$132,939

$9,928 $5,481

0

300,000

600,000

900,000

1,200,000

1,500,000

Commercial

(2,497 Banks)

Agriculture

(1,191 Banks)

Other

(936 Banks)

 0

30,000

60,000

90,000

120,000

150,000

Number of Loans

Dollars of Loans

Dollars of PPP Loans (Millions) Number of PPP Loans

Chart 5

Community Banks of 

All Sizes Participated in 

the PPP

Community banks, regardless of asset size, participated in the PPP. Not surprisingly, 

smaller community banks made smaller loans, while larger community banks made larger 

loans. Average PPP loan sizes ranged from $50,000 to $129,000 (Chart 6). Each size group 

participated in the PPP at approximately the same rate as their share of total community 

bank C&I loans. For example, community banks with less than $100 million in assets 

made 1.1 percent of the dollar volume of the community bank PPP loans. These banks hold 

approximately 1.5 percent of the total dollar volume of community bank C&I loans. At the 

other end of the spectrum, community banks with total assets greater than $1 billion hold 

59 percent of the total dollar volume of community bank C&I loans and hold 57 percent of 

the dollar volume of community bank PPP loans.

On Average, the Smallest Community Banks Hold the Smallest PPP Loans

Average PPP Loan Size by Community Bank Asset Size

Source: FDIC.

Note: Community banks only. Not all banks in the count of banks hold Paycheck Protection Program (PPP) loans. Data as of June 30, 2020. 

$ Thousands

0

25

50

75

100

125

150

Less Than

$100 Million

(982 Banks) 

$100 to

 $250 Million

(1,377 Banks)

$250 to

$500 Million

(1,032 Banks)

$500 Million to

$1 Billion

(676 Banks)

Greater Than

$1 Billion

(557 Banks)

Average PPP Loan Size Among Community Banks: $103,000

Chart 6
2020   •   Volume 14  • Number 4

36 FDIC QUARTERLY

Summary While community banks hold a smaller share of industry-wide loans by dollar volume and 

number than noncommunity banks, their participation in the PPP has been larger than 

their share of both total loans and C&I loans. Community banks in all states participated in 

the PPP program, and most states had at least three quarters of community banks holding 

PPP loans as of June 30, 2020. Community banks headquartered in metropolitan areas 

drove the participation rates, reporting greater shares of PPP loans than their share of total 

loans or C&I loans. Commercial and agriculture specialty lenders were the most common 

participants in the PPP lending program, consistent with the most common borrowers 

in the program and the number of banks identified in these specialty bank groups. 

Community banks of all sizes participated in the PPP and each size group participated at 

approximately the same rate as their share of total community bank C&I loans. The PPP 

program filled a need for credit at a critical time in our nation’s financial history, and 

community banks’ participation in this lending was instrumental.

Authors:

Margaret Hanrahan

Chief, Financial Analysis Section

Division of Insurance and Research

Angela Hinton

Senior Financial Analyst

Division of Insurance and Research