1 

QUARTERLY 2023 VOLUME 17, NUMBER 2

INSURED INSTITUTION PERFORMANCE

Net Income Increased From the Prior Quarter, Led by Higher Noninterest Income 

The Net Interest Margin Declined Quarter Over Quarter but Increased Year Over Year 

Unrealized Losses on Securities Declined for a Second Consecutive Quarter

Loan Balances Declined Modestly From Last Quarter but Grew From a Year Ago 

Total Deposits Declined for a Fourth Consecutive Quarter 

Asset Quality Metrics Remained Favorable Despite Modest Deterioration

NET INCOME INCREASED QUARTER 

OVER QUARTER AND YEAR OVER 

YEAR

Net income for the 4,672 FDIC-insured commercial banks and savings 

institutions totaled $79.8 billion during first quarter 2023, an increase 

of $11.5 billion (16.9 percent) from the fourth quarter. Strong growth 

in noninterest income, reflecting the accounting treatment of the 

acquisition of two failed institutions and higher trading revenue 

at large banks, outpaced higher noninterest expense and lower net 

interest income. Without the two failed-bank acquisitions, net income 

would have been approximately flat from the fourth quarter. Yearover-year net income increased $20.1 billion (33.6 percent), as growth 

in net interest income exceeded growth in provision expense and 

noninterest expense.

The banking industry reported a return on average assets of 1.36 

percent in the first quarter, up from 1.16 percent in fourth quarter 2022 

and 1.01 percent in first quarter 2022.

Chart 1

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

Net Operating Income

Realized Securities Gains/Losses, Net

-40

-20

0

20

40

60

80

100

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Chart 2

Source: FDIC.

Percent

Quarterly Net Interest Margin

All FDIC-Insured Institutions

 Assets > $250 Billion

 Assets $10 Billion - $250 Billion

 Assets $1 Billion - $10 Billion

 Assets $100 Million - $1 Billion

 Assets < $100 Million

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Industry
QUARTERLY 2023 VOLUME 17, NUMBER 2

2 

THE NET INTEREST MARGIN 

DECLINED QUARTER OVER 

QUARTER BUT INCREASED YEAR 

OVER YEAR

The net interest margin (NIM) of 3.31 percent was 7 basis points lower 

than the prior quarter as the average cost of deposits rose more than 

the average yield on loans. The NIM was 77 basis points higher than 

the year-ago quarter and, despite the quarterly decline, above the 

pre-pandemic average of 3.25 percent.1 

The average cost of deposits increased 43 basis points from the prior 

quarter to 1.42 percent. The increase in the average cost of deposits was 

slightly lower than the 46 basis-point increase reported in the prior 

quarter but higher than the 34 basis-point increase in third quarter 

2022. The average cost of deposits increased for all Quarterly Banking 

Profile (QBP) asset size groups relative to the previous quarter.

The average yield on loans increased 32 basis points from the prior 

quarter to 6.08 percent. The increase in average loan yields represents 

a sizable deceleration over the 73 and 65 basis-point increases reported 

in fourth and third quarters of 2022, respectively. Average loan yields 

increased for all QBP asset size groups relative to the previous quarter.

NET OPERATING REVENUE ROSE 

QUARTER OVER QUARTER AND 

YEAR OVER YEAR

Net operating revenue (net interest income plus noninterest income) 

totaled $261.7 billion in first quarter 2023, up $18.5 billion (7.6 percent) 

from the prior quarter, as strong growth in noninterest income (up 

$23.0 billion, or 36.5 percent) was partially offset by lower net interest 

income (down $4.6 billion, or 2.5 percent). The accounting treatment of 

banks’ acquisition of two failed banks and record-high trading revenue 

led the growth in noninterest income. Interest income increased $19.1 

1 The “pre-pandemic average” refers to the period first quarter 2015 through fourth quarter 2019 and is used consistently throughout this report.

Chart 3

Source: FDIC.

Quarter-Over-Quarter Change

($ Billions)

Change in Quarterly Credit Loss Provisions

All FDIC-Insured Institutions

-50

-40

-30

-20

-10

0

10

20

30

40

50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Chart 4

Source: FDIC.

Note: ASC Topics 810 and 860 resulted in the consolidation of large amounts of securitized loan balances 

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

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Quarterly Change (Le Axis)

12-Month Growth Rate (Right Axis)

Percent

-8

-3

2

7

12

-300

-200

-100

0

100

200

300

400

500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
QUARTERLY 2023 VOLUME 17, NUMBER 2

3 

billion (7.9 percent) from fourth quarter 2022, but was offset by a $23.7 

billion (38.2 percent) increase in interest expense. From the year-ago 

quarter, net operating revenue rose $47.0 billion (21.9 percent), as 

net interest income grew $37.7 billion (27.3 percent) and noninterest 

income expanded $9.3 billion (12.2 percent).

NONINTEREST EXPENSE 

INCREASED

Noninterest expense totaled $141.3 billion, up $5.4 billion (4.0 

percent) from the prior quarter. An increase in salary and employee 

benefits expense (up $4.0 billion, or 6.1 percent) drove the increase 

in noninterest expense during the quarter. Relative to a year ago, an 

increase in salary and employee benefits expense (up $3.9 billion, or 

5.8 percent) and “all other noninterest expense” (up $2.1 billion, or 3.9 

percent) drove the increase in noninterest expense.2

Despite the aggregate growth in noninterest expense for the banking 

industry, the efficiency ratio (noninterest expense to net operating 

revenue) declined almost 9 percentage points from the year-ago 

quarter to 53.0, led by strong growth in net interest income.3 The 

efficiency ratio declined for all QBP asset size groups.

2 “All other noninterest expense” includes, but is not limited to, expenses related to data processing, advertising and marketing, legal fees, intracompany transactions, and 

consulting and advisory fees.

3 The reduction in this ratio indicates that the industry was more efficient in producing revenue.

Chart 5

Quarterly Change in Deposits

All FDIC-Insured Institutions

-600

-400

-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 2021 2022 2023

$ Billions

Source: FDIC.

Chart 6

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

Quarterly Net Charge-O Rate

Noncurrent Rate

0

1

2

3

4

5

6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
QUARTERLY 2023 VOLUME 17, NUMBER 2

4 

PROVISION EXPENSE REMAINED 

UNCHANGED FROM THE PRIOR 

QUARTER BUT INCREASED FROM 

A YEAR AGO 

Provision expense remained unchanged from the last quarter but 

increased $15.5 billion from a year ago.4 The net number of banks 

reporting adoption of current expected credit loss (CECL) accounting 

increased from 392 in fourth quarter 2022 to 4,421 in first quarter 

2023.5 New CECL adopters in the quarter made a “Day One” adjustment 

of $3.0 billion, which flowed through retained earnings and increased 

the allowance for credit losses but did not affect provision expense.6

The reserve coverage ratio (the ratio of the allowance for credit losses 

to noncurrent loans) for all insured institutions was 219.5 percent in 

first quarter 2023, a slight increase from the fourth quarter 2022 ratio 

of 217.5 percent. 

BANKING INDUSTRY ASSETS 

INCREASED FROM FOURTH 

QUARTER 2022

Total assets increased $119.6 billion (0.5 percent) from fourth 

quarter 2022 to $23.7 trillion. Cash and balances due from depository 

institutions rose $263.6 billion (10.2 percent), followed by assets in 

trading accounts that increased $67.1 billion (9.2 percent). 

Year over year, total assets decreased $253.7 billion (1.1 percent). 

The growth in total loan and lease balances (up $855.2 billion, or 7.5 

percent) was offset by declines in total securities (down $649.0 billion, 

or 10.4 percent) and cash and balances due from depository institutions 

(down $534.0 billion, or 15.8 percent). 

4 Provisions for credit losses include both losses for loans and securities for CECL adopters but only loan losses for non-adopters. 

5 All institutions with a fiscal year after December 15, 2022, are required to implement CECL accounting by first quarter 2023. 

6 The Day-One adjustment is the difference, if any, between the amount of Allowance for Losses on Loans and Leases (ALLL) required under the incurred loss methodology and 

the Allowance for Credit Loss (ACL) required under CECL and booked on the first day of the quarter that a bank adopts CECL. This amount is transferred from retained earnings 

to the ACL and is not recognized as a provision in the income statement.

Chart 7

-675

-600

-525

-450

-375

-300

-225

-150

-75

0

75

150

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: FDIC.

Note: Insured Call Report filers only. Unrealized losses on securities reflects the dierence between the market

value as of quarter end and the book value of non-equity securities. This calculation does not account for any 

unrealized gains or losses in "accumulated other comprehensive income" because they cannot be derived from

Call Reports for the industry.

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions Held-to-Maturity Securities Available-for-Sale Securities

Chart 8

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

All FDIC-Insured Institutions

 Assets of Problem Banks (Right Axis)

 Number of Problem Banks (Le Axis)

0

100

200

300

400

500

0

100

200

300

400

500

600

700

800

900

1,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Number $ Billions

Source: FDIC.

Note: The asset values of insured financial institutions on the problem bank list are what were on record as of

the last day of the quarter.
QUARTERLY 2023 VOLUME 17, NUMBER 2

5 

UNREALIZED LOSSES ON 

SECURITIES DECLINED FOR A 

SECOND CONSECUTIVE QUARTER7

Unrealized losses on securities totaled $515.5 billion in the first 

quarter, down $102.2 billion (16.5 percent) from the prior quarter.8

Unrealized losses on held-to-maturity securities totaled $284.0 billion 

in the first quarter. Unrealized losses on available-for-sale securities 

totaled $231.6 billion in the first quarter.9

LOAN BALANCES DECLINED 

MODESTLY FROM LAST QUARTER 

BUT GREW FROM A YEAR AGO

Total loan and lease balances declined $14.6 billion (0.1 percent) from 

the previous quarter. Loans transferred to the FDIC as receiver and a 

seasonal decline in credit card loan balances (down $26.6 billion, or 

2.6 percent) were the major contributors to the quarterly decline 

in total loan balances for the banking industry. Without the loans 

transferred out of the banking system to the FDIC, loan growth would 

have been 0.4 percent quarter over quarter.

Year over year, total loan and lease balances increased $855.2 billion 

(7.5 percent), driven by growth in 1–4 family residential mortgages 

(up $232.2 billion, or 10.2 percent), consumer loans (up $156.4 billion, 

or 8.3 percent), and commercial and industrial loans (up $138.7 billion, 

or 5.8 percent).

TOTAL DEPOSITS DECLINED 

SUBSTANTIALLY QUARTER OVER 

QUARTER, BUT INSURED DEPOSITS 

INCREASED

Total deposits declined $472.1 billion (2.5 percent) between fourth 

quarter 2022 and first quarter 2023. The quarterly decline is the largest 

reduction reported in the QBP since data collection began in 1984. This 

was the fourth consecutive quarter that the industry reported lower 

levels of total deposits. A reduction in estimated uninsured deposits 

(down $663.3 billion, or 8.3 percent) was the primary driver of the 

quarterly decline. Estimated insured deposits continued to increase 

(up $255.1 billion, or 2.5 percent) during the quarter. The decline in 

total deposits in first quarter 2023 was offset by increased wholesale 

funding (up $661.0 billion, or 14.4 percent) from the previous quarter.10

Wholesale funding as a percentage of total assets rose from 19.5 percent 

in fourth quarter 2022 to 22.2 percent in first quarter 2023.

7 Unrealized losses on securities reflect the difference between the market value as of quarter end and the book value of non-equity securities. This calculation does not 

account for any unrealized gains or losses in “accumulated other comprehensive income” because unrealized gains and losses cannot be derived from Call Reports for 

the industry. 

8 Amended and resubmitted Call Reports changed fourth quarter 2022 value to –$617.8 billion from the –$620.4 billion reported in the fourth quarter 2022 Quarterly Banking 

Profile released on February 28, 2023.

9 Due to rounding, values do not add up to the aggregate value.

10 Wholesale funding includes federal funds purchased and securities sold under agreement to repurchase, Federal Home Loan Bank and other borrowings, brokered and 

reciprocal deposits, listing service deposits, municipal and state deposits, and foreign deposits (which are not FDIC insured).
QUARTERLY 2023 VOLUME 17, NUMBER 2

6 

EARLY-STAGE DELINQUENCIES 

DECLINED MODESTLY

The rate of loans and leases 30 to 89 days past due decreased 4 basis 

points from the prior quarter, but increased 4 basis points from the 

year-ago quarter to 0.52 percent. The quarterly decline was led by 

declines in past-due auto loans and 1–4 family residential mortgages. 

Despite the yearly increase, the overall past-due rate remains below 

the pre-pandemic average of 0.66 percent. 

THE NONCURRENT LOAN RATE 

INCREASED SLIGHTLY FROM THE 

PRIOR QUARTER

The share of loans and leases 90 days or more past due or in 

nonaccrual status increased 2 basis points from the prior quarter, 

but fell 8 basis points from the year-ago quarter to 0.75 percent. The 

quarterly increase was driven by increases in noncurrent nonfarm, 

nonresidential (commercial real estate) loan balances. Almost half 

of all banks (49.0 percent) reported lower noncurrent loan balances 

compared with fourth quarter 2022.

THE NET CHARGE-OFF RATE 

INCREASED FROM THE YEAR-AGO 

QUARTER

The net charge-off rate of 0.41 percent increased 5 basis points from 

the prior quarter and 19 basis points from the year-ago quarter. The 

annual increase was led by higher credit card net charge-off balances. 

Despite the increase, the industry’s net charge-off rate remains below 

the pre-pandemic average of 0.48 percent.

CAPITAL RATIOS REMAINED 

STRONG

The leverage capital ratio rose 17 basis points from a quarter ago to 9.15 

percent due to increased retained earnings and lower average assets. 

The total risk-based capital ratio increased 12 basis points to 15.07 

percent, and the tier 1 risk-based capital ratio increased 10 basis points 

to 13.75 percent as capital formation grew and risk-weighted assets 

declined. 

Equity capital increased $55.5 billion (2.5 percent) in first quarter 

2023, led by an improvement in accumulated other comprehensive 

income (up $42.8 billion) from fourth quarter as a decline in certain 

market interest rates improved the value of some available-forsale investment securities. Retained earnings contributed $35.6 

billion to equity formation in the first quarter, as net income of $79.8 

billion exceeded declared dividends of $44.3 billion. The number of 

institutions with capital ratios that did not meet Prompt Corrective 

Action requirements for the well-capitalized category declined by five 

from fourth quarter 2022 to six.11

11 Prompt Corrective Action categories are assigned based on reported capital ratios only and do not include the effects of regulatory downgrades. 
QUARTERLY 2023 VOLUME 17, NUMBER 2

7 

ONE BANK OPENED AND TWO 

BANKS FAILED IN FIRST QUARTER 

2023

The number of FDIC-insured institutions declined from 4,706 in 

fourth quarter to 4,672 this quarter. During the quarter, one bank 

opened, one bank self-liquidated, one bank sold a majority of assets 

and did not file a Call Report, two banks failed, and 31 institutions 

merged with other FDIC-insured institutions. The number of banks 

on the FDIC’s “Problem Bank List” increased by four from the previous 

quarter to 43.12 Total assets of problem banks increased $10.5 billion 

to $58.0 billion.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

12 Banks on the FDIC’s Problem Bank List have a CAMELS composite rating of “4” or “5” due to financial, operational, or managerial weaknesses, or a combination of such 

issues. The number of banks on the list increased by four from the previous quarter, reflecting movement from banks coming on and off the list.
QUARTERLY 2023 VOLUME 17, NUMBER 2

8 

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

2023** 2022** 2022 2021 2020 2019 2018

Return on assets (%) 1.36 1.01 1.11 1.23 0.72 1.29 1.35

Return on equity (%) 14.42 10.40 11.82 12.21 6.85 11.38 11.98

Core capital (leverage) ratio (%) 9.15 8.67 8.98 8.73 8.82 9.66 9.70

Noncurrent assets plus other real estate owned to assets (%) 0.40 0.41 0.39 0.44 0.61 0.55 0.60

Net charge-offs to loans (%) 0.41 0.22 0.27 0.25 0.50 0.52 0.48

Asset growth rate (%) -1.06 6.33 -0.51 8.46 17.29 3.92 3.03

Net interest margin (%) 3.31 2.54 2.95 2.54 2.82 3.36 3.40

Net operating income growth (%) 35.56 -20.37 -3.64 96.90 -38.77 -3.14 45.45

Number of institutions reporting 4,672 4,796 4,706 4,839 5,002 5,177 5,406

 Commercial banks 4,096 4,196 4,127 4,232 4,375 4,518 4,715

 Savings institutions 576 600 579 607 627 659 691

Percentage of unprofitable institutions (%) 4.43 5.59 3.46 3.10 4.68 3.73 3.46

Number of problem institutions 43 40 39 44 56 51 60

Assets of problem institutions (in billions)*** $58 $173 $47 $170 $56 $46 $48

Number of failed institutions 2 0 0 0 4 4 0

* Excludes insured branches of foreign banks (IBAs).

** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31.

*** Assets shown are what were on record as of the last day of the quarter.
QUARTERLY 2023 VOLUME 17, NUMBER 2

9 

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

(dollar figures in millions)

1st Quarter

2023

4th Quarter

2022

1st Quarter

2022

%Change 

22Q1-23Q1

Number of institutions reporting 4,672 4,706 4,796 -2.6

Total employees (full-time equivalent) 2,128,293 2,124,250 2,088,158 1.9

CONDITION DATA

Total assets $23,719,547 $23,599,954 $23,973,288 -1.1

 Loans secured by real estate 5,801,454 5,766,002 5,327,173 8.9

 1-4 Family residential mortgages 2,506,251 2,479,491 2,274,101 10.2

 Nonfarm nonresidential 1,782,796 1,777,490 1,673,417 6.5

 Construction and development 479,664 467,600 413,001 16.1

 Home equity lines 269,798 273,007 261,284 3.3

 Commercial & industrial loans 2,529,298 2,533,047 2,390,620 5.8

 Loans to individuals 2,037,721 2,070,565 1,881,273 8.3

 Credit cards 982,813 1,009,401 851,150 15.5

 Farm loans 69,942 76,748 67,794 3.2

 Other loans & leases 1,775,287 1,782,301 1,691,927 4.9

 Less: Unearned income 1,635 1,953 1,905 -14.2

 Total loans & leases 12,212,067 12,226,711 11,356,883 7.5

 Less: Reserve for losses* 202,219 195,298 175,461 15.3

 Net loans and leases 12,009,849 12,031,413 11,181,423 7.4

 Securities** 5,611,460 5,883,915 6,260,482 -10.4

 Other real estate owned 2,687 2,593 2,935 -8.4

 Goodwill and other intangibles 435,471 430,064 415,294 4.9

 All other assets 5,660,079 5,251,969 6,113,155 -7.4

Total liabilities and capital 23,719,547 23,599,954 23,973,288 -1.1

 Deposits 18,742,486 19,214,547 19,932,264 -6.0

 Domestic office deposits 17,303,965 17,725,358 18,381,103 -5.9

 Foreign office deposits 1,438,522 1,489,189 1,551,160 -7.3

 Other borrowed funds 1,900,791 1,351,869 980,556 93.8

 Subordinated debt 60,822 65,187 65,733 -7.5

 All other liabilities 752,685 761,223 734,760 2.4

 Total equity capital (includes minority interests) 2,262,762 2,207,128 2,259,973 0.1

 Bank equity capital 2,260,484 2,204,942 2,257,770 0.1

Loans and leases 30-89 days past due 63,506 67,922 54,100 17.4

Noncurrent loans and leases 92,129 89,810 95,194 -3.2

Restructured loans and leases 12,980 44,061 41,843 -69.0

Mortgage-backed securities 3,032,304 3,150,204 3,521,605 -13.9

Earning assets 21,522,467 21,399,665 21,838,746 -1.4

FHLB Advances 803,855 587,575 203,679 294.7

Unused loan commitments 9,693,060 9,569,428 9,359,485 3.6

Trust assets 18,815,310 18,095,390 18,954,357 -0.7

Assets securitized and sold 388,906 392,102 416,932 -6.7

Notional amount of derivatives 220,468,525 192,875,723 203,157,729 8.5

INCOME DATA Full Year 

2022

Full Year 

2021 %Change

1st Quarter

2023

1st Quarter

2022

%Change 

22Q1-23Q1

Total interest income $750,897 $563,569 33.2 $261,353 $146,492 78.4

Total interest expense 117,580 36,143 225.3 85,612 8,462 911.7

 Net interest income 633,317 527,426 20.1 175,741 138,030 27.3

Provision for credit losses*** 51,599 -30,998 N/M 20,732 5,214 297.6

Total noninterest income 290,917 300,417 -3.2 85,988 76,657 12.2

Total noninterest expense 538,038 510,160 5.5 141,337 133,870 5.6

Securities gains (losses) -3,903 3,010 -229.7 -2,180 -588 N/M

Applicable income taxes 67,287 72,409 -7.1 17,581 15,207 15.6

Extraordinary gains, net**** -233 47 -592.2 5 0 N/M

 Total net income (includes minority interests) 263,176 279,328 -5.8 79,904 59,807 33.6

 Bank net income 262,919 279,126 -5.8 79,807 59,751 33.6

Net charge-offs 31,439 27,359 14.9 12,422 6,289 97.5

Cash dividends 152,333 156,162 -2.5 44,257 28,853 53.4

Retained earnings 110,585 122,964 -10.1 35,550 30,898 15.1

 Net operating income 266,764 276,847 -3.6 81,723 60,287 35.6

* 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 2023 VOLUME 17, NUMBER 2

10 

TABLE III-A. First Quarter 2023, All FDIC-Insured Institutions

FIRST QUARTER

(The way it is...)

All Insured 

Institutions

Asset Concentration Groups*

Credit 

Card

Banks

International

Banks

Agricultural

Banks

Commercial

Lenders

Mortgage

Lenders

Consumer

Lenders

Other

Specialized

<$1 Billion

All Other

<$1 Billion

All Other

>$1 Billion

Number of institutions reporting 4,672 10 5 1,015 2,516 314 41 282 417 72

 Commercial banks 4,096 9 5 1,002 2,283 92 31 258 355 61

 Savings institutions 576 1 0 13 233 222 10 24 62 11

 Total assets (in billions) $23,719.5 $464.1 $5,768.6 $279.7 $8,328.6 $730.7 $382.3 $62.0 $97.1 $7,606.4

 Commercial banks 22,431.3 364.7 5,768.6 273.5 7,913.4 154.5 375.6 57.4 82.5 7,441.0

 Savings institutions 1,288.3 99.4 0.0 6.2 415.2 576.2 6.7 4.6 14.5 165.4

Total deposits (in billions) 18,742.5 357.0 4,457.8 241.0 6,612.6 595.3 316.2 53.7 84.4 6,024.4

 Commercial banks 17,698.8 279.3 4,457.8 237.3 6,286.6 122.4 310.5 50.3 72.4 5,882.1

 Savings institutions 1,043.7 77.6 0.0 3.8 326.0 472.9 5.7 3.4 12.1 142.3

Bank net income (in millions) 79,807 3,629 17,981 882 31,895 1,230 1,281 333 261 22,315

 Commercial banks 77,145 3,099 17,981 844 30,932 334 1,272 180 238 22,265

 Savings institutions 2,662 530 0 39 963 896 8 154 23 49

Performance Ratios (annualized, %)

Yield on earning assets 4.92 13.49 4.77 4.55 4.84 3.06 6.50 3.92 4.28 4.71

Cost of funding earning assets 1.61 3.04 1.95 1.08 1.38 1.23 2.75 0.74 0.80 1.54

 Net interest margin 3.31 10.45 2.82 3.47 3.46 1.83 3.75 3.17 3.48 3.18

Noninterest income to assets 1.47 6.48 1.78 0.53 1.40 0.62 1.04 4.10 0.93 1.12

Noninterest expense to assets 2.41 9.09 2.30 2.30 2.38 1.47 2.11 4.28 2.89 2.21

Credit loss provision to assets** 0.35 3.27 0.29 0.04 0.29 0.02 0.75 0.08 0.06 0.32

Net operating income to assets 1.39 3.17 1.30 1.29 1.60 0.68 1.34 2.15 1.10 1.21

Pretax return on assets 1.66 4.13 1.63 1.40 1.84 0.88 1.71 2.67 1.22 1.43

Return on assets 1.36 3.17 1.25 1.26 1.57 0.67 1.35 2.15 1.08 1.18

Return on equity 14.42 29.86 13.40 14.18 15.89 12.17 16.55 21.49 12.36 12.48

Net charge-offs to loans and leases 0.41 3.18 0.48 0.03 0.15 0.04 0.85 0.20 0.06 0.48

Loan and lease loss provision to net 

charge-offs 156.85 123.84 160.65 157.14 252.66 171.11 133.17 115.63 136.38 135.58

Efficiency ratio 53.02 54.64 53.34 60.58 50.27 61.83 46.22 60.47 68.85 55.00

% of unprofitable institutions 4.43 0.00 0.00 2.56 3.38 11.78 19.51 8.16 4.80 11.11

% of institutions with earnings gains 66.70 40.00 80.00 73.69 65.54 55.10 53.66 70.21 66.67 55.56

Condition Ratios (%)

Earning assets to total assets 90.74 96.06 88.96 93.87 91.07 96.07 93.92 92.59 93.61 90.55

Loss allowance to:

 Loans and leases 1.66 6.89 1.92 1.37 1.25 0.63 2.12 1.64 1.25 1.64

 Noncurrent loans and leases 219.49 506.18 265.39 268.16 184.14 161.54 336.41 245.83 215.54 188.31

Noncurrent assets plus other real estate 

owned to assets 0.40 1.12 0.24 0.35 0.47 0.14 0.48 0.21 0.35 0.43

Equity capital ratio 9.53 10.50 9.38 9.12 9.98 5.79 8.15 10.37 8.98 9.54

Core capital (leverage) ratio 9.15 10.98 8.42 10.72 9.72 9.06 9.45 13.77 11.18 8.84

Common equity tier 1 capital ratio*** 13.67 12.73 16.05 14.06 11.88 23.53 14.16 30.24 17.57 13.85

Tier 1 risk-based capital ratio*** 13.75 12.89 16.12 14.06 11.94 23.53 14.19 30.24 17.57 13.98

Total risk-based capital ratio*** 15.07 14.75 17.28 15.16 13.24 24.03 15.24 31.14 18.60 15.45

Net loans and leases to deposits 64.08 99.62 41.24 71.50 82.28 42.16 89.15 30.46 62.57 59.77

Net loans and leases to total assets 50.63 76.63 31.87 61.61 65.32 34.34 73.73 26.37 54.44 47.34

Domestic deposits to total assets 72.95 76.92 55.25 86.17 79.30 81.31 82.71 86.57 86.98 77.11

Structural Changes

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

 Institutions absorbed by mergers 31 0 0 6 24 0 0 0 1 0

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

PRIOR FIRST QUARTERS

(The way it was...)

Number of institutions 2022 4,796 11 5 1,081 2,403 283 39 368 501 105

2020 5,116 11 5 1,261 2,706 384 50 214 428 57

2018 5,606 11 5 1,355 2,936 412 61 274 495 57

Total assets (in billions) 2022 $23,973.3 $503.9 $6,065.8 $298.5 $7,357.8 $341.0 $361.2 $84.5 $127.3 $8,833.4

2020 20,255.2 503.8 5,232.5 279.1 7,548.6 388.1 154.6 37.0 78.8 6,032.7

2018 17,530.3 542.0 4,278.6 270.7 6,143.8 353.4 278.1 45.6 85.5 5,532.6

Return on assets (%) 2022 1.01 4.65 0.77 1.10 1.04 0.95 1.69 1.19 0.88 0.90

2020 0.38 0.11 0.44 1.28 0.22 0.15 1.79 2.63 0.93 0.47

2018 1.28 2.64 1.21 1.30 1.23 1.04 1.42 3.16 1.01 1.25

Net charge-offs to loans & leases (%) 2022 0.22 1.94 0.28 0.01 0.09 0.00 0.40 0.08 0.03 0.17

2020 0.54 4.32 0.74 0.10 0.26 0.04 0.54 0.27 0.09 0.46

2018 0.50 4.26 0.55 0.07 0.19 0.04 0.61 0.15 0.15 0.40

Noncurrent assets plus

OREO to assets (%) 2022 0.41 0.85 0.26 0.44 0.52 0.26 0.51 0.25 0.39 0.41

2020 0.54 1.39 0.30 0.94 0.64 1.18 0.41 0.40 0.65 0.50

2018 0.70 1.25 0.47 0.87 0.69 1.77 0.42 0.55 0.78 0.77

Equity capital ratio (%) 2022 9.42 12.78 8.70 9.50 10.20 8.82 8.60 11.59 9.74 9.09

2020 10.44 11.51 8.77 11.85 11.63 9.66 9.61 17.77 12.65 10.26

2018 11.20 16.03 9.81 11.20 11.90 11.27 10.05 15.71 11.56 11.04

* See Table IV-A (page 12) 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 2023 VOLUME 17, NUMBER 2

11 

TABLE III-A. First Quarter 2023, All FDIC-Insured Institutions

FIRST QUARTER

(The way it is...)

All Insured

Institutions

Asset Size Distribution Geographic Regions*

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 4,672 744 2,940 828 146 14 551 529 1,002 1,194 1,048 348

 Commercial banks 4,096 651 2,608 694 130 13 291 483 865 1,157 982 318

 Savings institutions 576 93 332 134 16 1 260 46 137 37 66 30

Total assets (in billions) $23,719.5 $44.9 $1,085.4 $2,265.2 $6,814.5 $13,509.5 $4,505.0 $4,868.1 $5,755.4 $4,186.8 $2,029.3 $2,374.9

 Commercial banks 22,431.3 39.7 953.6 1,942.8 6,332.8 13,162.4 4,134.6 4,816.1 5,683.3 4,129.3 1,451.4 2,216.6

 Savings institutions 1,288.3 5.2 131.8 322.4 481.7 347.2 370.5 52.0 72.1 57.5 577.9 158.3

Total deposits (in billions) 18,742.5 37.9 931.7 1,870.0 5,294.3 10,608.7 3,549.1 3,863.0 4,439.4 3,421.9 1,662.8 1,806.5

 Commercial banks 17,698.8 34.0 824.5 1,611.9 4,911.6 10,316.8 3,250.6 3,825.2 4,387.8 3,373.3 1,184.1 1,677.8

 Savings institutions 1,043.7 3.9 107.2 258.1 382.7 291.9 298.5 37.8 51.5 48.6 478.7 128.7

Bank net income (in millions) 79,807 111 3,263 6,520 30,078 39,835 13,586 23,633 17,669 13,034 5,131 6,753

 Commercial banks 77,145 100 2,876 5,852 28,879 39,437 12,855 23,543 17,358 12,824 4,507 6,057

 Savings institutions 2,662 10 387 667 1,199 398 731 90 311 210 624 696

Performance Ratios (annualized, %)

Yield on earning assets 4.92 4.44 4.62 5.04 5.33 4.71 5.09 4.70 4.63 5.06 4.37 5.93

Cost of funding earning assets 1.61 0.74 1.02 1.35 1.70 1.67 1.97 1.31 1.53 1.71 1.23 1.88

 Net interest margin 3.31 3.70 3.60 3.69 3.64 3.05 3.12 3.39 3.09 3.35 3.14 4.06

Noninterest income to assets 1.47 1.56 1.02 0.97 1.91 1.37 1.26 1.89 1.57 1.23 0.72 1.84

Noninterest expense to assets 2.41 3.79 2.88 2.64 2.61 2.23 2.24 2.25 2.37 2.36 2.26 3.39

Credit loss provision to assets** 0.35 0.05 0.08 0.22 0.48 0.34 0.26 0.47 0.31 0.33 0.12 0.64

Net operating income to assets 1.39 1.00 1.23 1.23 1.82 1.22 1.26 2.01 1.31 1.25 1.04 1.20

Pretax return on assets 1.66 1.15 1.41 1.47 2.14 1.48 1.52 2.20 1.59 1.56 1.23 1.58

Return on assets 1.36 0.99 1.21 1.16 1.80 1.19 1.22 2.00 1.25 1.24 1.02 1.15

Return on equity 14.42 7.97 12.87 11.92 18.66 12.81 12.20 20.52 13.36 13.20 12.80 12.07

Net charge-offs to loans and leases 0.41 0.04 0.05 0.22 0.45 0.48 0.39 0.50 0.28 0.38 0.11 0.77

Loan and lease loss provision to net 

charge-offs 156.85 249.61 218.09 144.24 158.87 156.15 122.44 170.06 215.44 161.88 207.75 126.20

Efficiency ratio 53.02 75.50 65.43 59.49 47.40 54.28 54.46 45.09 54.25 55.18 61.68 55.04

% of unprofitable institutions 4.43 10.48 3.30 2.66 6.16 7.14 5.99 5.48 4.39 2.93 3.63 8.05

% of institutions with earnings gains 66.70 73.39 67.59 58.82 59.59 64.29 57.35 76.18 64.27 67.50 68.61 65.52

Condition Ratios (%)

Earning assets to total assets 90.74 92.92 93.82 93.09 92.14 89.38 89.70 90.32 89.81 90.69 93.02 93.93

Loss Allowance to:

 Loans and leases 1.66 1.45 1.31 1.36 1.68 1.76 1.63 1.63 1.56 1.74 1.28 2.03

 Noncurrent loans and leases 219.49 171.84 278.23 234.82 219.18 212.86 184.52 228.37 224.75 219.43 147.97 339.61

Noncurrent assets plus other real estate 

owned to assets 0.40 0.49 0.34 0.43 0.50 0.35 0.48 0.38 0.34 0.40 0.47 0.40

Equity capital ratio 9.53 12.57 9.56 9.84 9.72 9.37 10.04 9.72 9.44 9.52 8.12 9.61

Core capital (leverage) ratio 9.15 14.13 11.15 10.49 9.66 8.48 9.36 8.87 8.91 8.91 9.53 9.95

Common equity tier 1 capital ratio*** 13.67 22.50 15.45 13.49 13.01 13.98 13.75 12.84 14.23 13.28 14.51 13.92

Tier 1 risk-based capital ratio*** 13.75 22.50 15.48 13.53 13.20 14.01 13.78 12.89 14.29 13.37 14.62 14.20

Total risk-based capital ratio*** 15.07 23.54 16.60 14.58 14.49 15.40 15.05 14.10 15.68 14.93 15.75 15.39

Net loans and leases to deposits 64.08 62.08 73.50 81.50 80.37 52.05 66.07 63.94 58.88 58.73 62.22 85.07

Net loans and leases to total assets 50.63 52.37 63.09 67.28 62.44 40.88 52.05 50.74 45.41 48.00 50.98 64.71

Domestic deposits to total assets 72.95 84.37 85.84 82.46 76.43 68.53 74.72 76.93 68.23 66.96 81.92 75.80

Structural Changes

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

 Institutions absorbed by mergers 31 5 16 8 2 0 1 6 10 6 6 2

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

PRIOR FIRST QUARTERS

(The way it was...)

Number of institutions 2022 4,796 784 3,027 825 147 13 569 544 1,032 1,228 1,069 354

 2020 5,116 1,124 3,168 680 131 13 617 582 1,099 1,317 1,126 375

 2018 5,606 1,393 3,453 628 123 9 684 656 1,208 1,426 1,214 418

Total assets (in billions) 2022 $23,973.3 $47.8 $1,109.3 $2,204.3 $7,084.9 $13,527.0 $4,530.6 $4,750.7 $5,833.3 $4,222.7 $2,064.7 $2,571.4

 2020 20,255.2 66.6 1,066.7 1,802.6 5,770.4 11,548.9 3,787.4 4,128.7 4,721.0 4,027.1 1,547.4 2,043.5

 2018 17,530.3 83.2 1,130.2 1,700.5 5,827.3 8,789.1 3,273.9 3,604.2 3,969.6 3,674.5 1,102.9 1,905.3

Return on assets (%) 2022 1.01 0.77 1.02 1.23 1.25 0.84 0.92 1.06 0.89 0.89 0.98 1.53

 2020 0.38 0.83 1.09 0.76 -0.16 0.52 0.55 0.04 0.49 0.49 0.77 0.00

 2018 1.28 0.93 1.18 1.27 1.37 1.24 1.15 1.31 1.27 1.17 1.35 1.63

Net charge-offs to loans and 

leases (%) 2022 0.22 0.04 0.03 0.10 0.30 0.22 0.21 0.30 0.15 0.23 0.08 0.33

 2020 0.54 0.12 0.11 0.22 0.76 0.53 0.51 0.62 0.43 0.53 0.31 0.81

 2018 0.50 0.19 0.08 0.18 0.74 0.46 0.62 0.56 0.24 0.53 0.21 0.74

Noncurrent assets plus OREO 

to assets (%) 2022 0.41 0.54 0.39 0.44 0.52 0.35 0.45 0.39 0.35 0.45 0.56 0.34

 2020 0.54 0.97 0.74 0.68 0.68 0.43 0.49 0.55 0.47 0.61 0.70 0.52

 2018 0.70 1.02 0.83 0.70 0.68 0.69 0.63 0.79 0.66 0.79 0.82 0.47

Equity capital ratio (%) 2022 9.42 12.50 9.90 10.15 9.96 8.96 9.89 9.84 8.88 9.42 8.56 9.71

 2020 10.44 14.05 11.98 11.69 11.27 9.67 10.71 11.24 9.83 9.75 10.94 10.76

 2018 11.20 13.10 11.24 11.71 12.19 10.43 12.36 12.04 10.37 10.04 11.48 11.45

* See Table IV-A (page 13) 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 2023 VOLUME 17, NUMBER 2

12 

TABLE IV-A. Full Year 2022, All FDIC-Insured Institutions

FULL YEAR

(The way it is...)

All Insured

Institutions

Asset Concentration Groups*

Credit 

Card

Banks

International

Banks

Agricultural

Banks

Commercial

Lenders

Mortgage

Lenders

Consumer

Lenders

Other

Specialized

<$1 Billion

All Other

<$1Billion

All Other

>$1 Billion

Number of institutions reporting 4,706 10 5 1,054 2,501 320 35 300 410 71

 Commercial banks 4,127 9 5 1,041 2,268 94 27 275 349 59

 Savings institutions 579 1 0 13 233 226 8 25 61 12

Total assets (in billions) $23,600.0 $452.7 $5,745.9 $298.5 $8,139.0 $720.6 $590.4 $70.3 $95.9 $7,486.7

 Commercial banks 22,319.4 356.4 5,745.9 292.4 7,730.3 151.6 584.8 65.6 81.8 7,310.6

 Savings institutions 1,280.6 96.3 0.0 6.1 408.8 569.0 5.6 4.6 14.1 176.1

Total deposits (in billions) 19,214.5 339.2 4,488.3 257.5 6,660.1 631.7 494.2 61.1 84.2 6,198.2

 Commercial banks 18,132.6 264.9 4,488.3 253.5 6,333.4 125.0 489.5 58.0 72.4 6,047.6

 Savings institutions 1,082.0 74.3 0.0 4.0 326.7 506.8 4.7 3.1 11.8 150.6

Bank net income (in millions) 262,919 15,015 55,970 3,581 93,035 6,630 7,444 1,461 975 78,807

 Commercial banks 249,959 12,112 55,970 3,422 88,975 1,653 7,416 643 897 78,870

 Savings institutions 12,960 2,903 0 159 4,060 4,977 27 819 77 -63

Performance Ratios (%)

Yield on earning assets 3.50 11.87 2.99 3.84 3.75 2.31 4.27 2.96 3.57 3.21

Cost of funding earning assets 0.55 1.51 0.67 0.46 0.45 0.36 0.93 0.32 0.36 0.50

 Net interest margin 2.95 10.36 2.32 3.38 3.30 1.96 3.34 2.64 3.22 2.71

Noninterest income to assets 1.23 6.84 1.56 0.56 0.89 0.40 1.02 5.93 0.87 1.12

Noninterest expense to assets 2.28 9.51 2.15 2.25 2.28 1.15 1.96 5.71 2.68 2.10

Credit loss provision to assets** 0.22 2.49 0.19 0.05 0.14 0.02 0.47 0.03 0.04 0.21

Net operating income to assets 1.13 3.68 0.99 1.25 1.19 0.88 1.32 2.06 1.03 1.04

Pretax return on assets 1.40 4.77 1.23 1.39 1.48 1.10 1.74 2.49 1.15 1.27

Return on assets 1.11 3.68 0.95 1.22 1.18 0.86 1.33 1.99 1.02 1.03

Return on equity 11.82 31.61 10.58 13.25 11.81 13.46 15.63 17.98 11.37 10.97

Net charge-offs to loans and leases 0.27 2.12 0.32 0.04 0.11 0.01 0.38 0.13 0.04 0.31

Loan and lease loss provision to net 

charge-offs 159.85 138.39 172.80 196.59 180.97 405.84 161.62 85.67 211.06 155.15

Efficiency ratio 57.74 56.26 59.06 59.93 57.53 50.16 46.84 68.45 68.83 58.28

% of unprofitable institutions 3.46 0.00 0.00 1.80 2.60 9.38 8.57 10.67 2.20 7.04

% of institutions with earnings gains 56.01 30.00 20.00 45.54 59.82 57.81 51.43 59.33 56.59 60.56

Condition Ratios (%)

Earning assets to total assets 90.68 95.70 88.43 93.38 90.93 96.12 94.28 92.76 93.50 90.85

Loss Allowance to:

 Loans and leases 1.60 6.46 1.88 1.34 1.21 0.62 1.46 1.60 1.25 1.61

 Noncurrent loans and leases 217.46 520.12 275.64 267.74 175.88 152.57 333.71 236.69 226.40 189.08

Noncurrent assets plus other real estate 

owned to assets 0.39 1.06 0.23 0.35 0.48 0.15 0.34 0.22 0.33 0.42

Equity capital ratio 9.34 10.71 9.26 8.66 9.76 5.27 8.15 10.27 8.36 9.38

Core capital (leverage) ratio 8.98 11.53 8.20 10.57 9.54 8.70 9.23 14.00 10.94 8.68

Common equity tier 1 capital ratio*** 13.56 12.87 16.01 13.68 11.83 23.08 12.52 29.02 17.32 13.79

Tier 1 risk-based capital ratio*** 13.65 13.03 16.08 13.68 11.90 23.08 13.45 29.02 17.32 13.83

Total risk-based capital ratio*** 14.94 14.90 17.26 14.75 13.14 23.55 14.49 29.89 18.35 15.30

Net loans and leases to deposits 62.62 106.37 41.37 72.14 80.59 38.93 89.70 30.88 61.46 56.49

Net loans and leases to total assets 50.98 79.69 32.31 62.24 65.94 34.13 75.08 26.85 53.95 46.77

Domestic deposits to total assets 75.11 74.91 55.46 86.28 81.73 87.51 83.70 86.96 87.75 80.41

Structural Changes

 New reporters 15 0 0 1 0 0 0 14 0 0

 Institutions absorbed by mergers 134 0 1 20 98 2 0 4 3 6

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

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2021 4,839 12 5 1,121 2,417 293 33 357 506 95

 2019 5,177 12 5 1,291 2,733 393 58 210 428 47

 2017 5,670 11 5 1,389 2,944 420 59 272 510 60

Total assets (in billions) 2021 $23,719.7 $499.8 $5,827.2 $302.8 $7,372.0 $776.3 $353.0 $83.4 $130.4 $8,374.9

 2019 18,645.7 530.8 4,481.5 283.5 6,735.8 392.7 230.7 38.3 76.3 5,876.2

 2017 17,415.4 562.7 4,196.0 282.6 6,026.0 349.2 270.9 46.9 88.8 5,592.2

Return on assets (%) 2021 1.23 5.32 1.09 1.33 1.24 0.88 1.98 1.66 1.06 1.05

 2019 1.29 3.27 1.23 1.33 1.18 1.20 1.21 3.56 1.17 1.27

 2017 0.97 1.52 0.62 1.05 1.02 0.93 1.02 2.61 0.91 1.10

Net charge-offs to loans & leases (%) 2021 0.25 2.00 0.38 0.05 0.11 0.01 0.27 0.08 0.04 0.20

 2019 0.52 4.15 0.72 0.18 0.20 0.03 0.82 0.17 0.13 0.39

 2017 0.50 3.95 0.56 0.16 0.21 0.04 0.60 0.23 0.15 0.43

Noncurrent assets plus OREO 

to assets (%) 2021 0.44 0.78 0.28 0.47 0.55 0.18 0.48 0.27 0.39 0.46

 2019 0.55 1.39 0.33 0.81 0.60 1.18 0.48 0.45 0.62 0.52

 2017 0.73 1.25 0.51 0.77 0.70 1.70 0.36 0.59 0.81 0.82

Equity capital ratio (%) 2021 9.94 12.56 9.20 10.78 10.71 8.17 9.00 12.96 10.79 9.74

 2019 11.32 12.81 10.20 11.85 12.27 10.94 10.41 18.48 12.79 10.93

 2017 11.22 15.10 9.83 11.18 11.95 11.21 10.00 15.26 11.94 11.09

*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.

** 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 2023 VOLUME 17, NUMBER 2

13 

TABLE IV-A. Full Year 2022, All FDIC-Insured Institutions

FULL YEAR

(The way it is...)

All Insured

Institutions

Asset Size Distribution Geographic Regions*

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 4,706 761 2,964 823 145 13 558 534 1,011 1,198 1,053 352

 Commercial banks 4,127 666 2,632 687 130 12 295 488 874 1,161 987 322

 Savings institutions 579 95 332 136 15 1 263 46 137 37 66 30

Total assets (in billions) $23,600.0 $46.3 $1,098.0 $2,277.4 $7,091.4 $13,086.9 $4,547.5 $4,614.2 $5,575.4 $4,243.2 $1,992.9 $2,626.9

 Commercial banks 22,319.4 41.1 967.9 1,945.7 6,626.5 12,738.1 4,177.3 4,560.2 5,504.3 4,187.9 1,416.5 2,473.2

 Savings institutions 1,280.6 5.2 130.1 331.7 464.9 348.7 370.2 54.0 71.0 55.3 576.3 153.6

Total deposits (in billions) 19,214.5 39.0 948.4 1,899.1 5,796.8 10,531.2 3,690.8 3,825.2 4,360.7 3,468.8 1,710.9 2,158.2

 Commercial banks 18,132.6 35.2 841.9 1,631.7 5,418.7 10,205.2 3,388.5 3,786.6 4,309.0 3,421.7 1,192.4 2,034.3

 Savings institutions 1,082.0 3.9 106.6 267.4 378.1 326.0 302.3 38.5 51.7 47.0 518.5 123.9

Bank net income (in millions) 262,919 400 12,816 28,633 86,338 134,732 45,780 53,737 61,716 40,759 22,712 38,215

 Commercial banks 249,959 354 11,117 25,765 81,135 131,587 43,057 53,989 60,216 40,155 17,895 34,646

 Savings institutions 12,960 46 1,699 2,867 5,203 3,145 2,723 -253 1,500 604 4,816 3,568

Performance Ratios (%)

Yield on earning assets 3.50 3.58 3.88 4.11 3.92 3.14 3.52 3.48 3.10 3.60 3.36 4.29

Cost of funding earning assets 0.55 0.36 0.42 0.48 0.58 0.55 0.70 0.41 0.52 0.61 0.37 0.64

 Net interest margin 2.95 3.22 3.46 3.63 3.34 2.58 2.82 3.07 2.58 2.98 3.00 3.65

Noninterest income to assets 1.23 1.56 1.08 1.10 1.22 1.27 1.16 1.03 1.47 1.08 0.81 1.79

Noninterest expense to assets 2.28 3.50 2.84 2.65 2.39 2.12 2.16 2.18 2.21 2.35 2.14 2.80

Credit loss provision to assets** 0.22 0.03 0.08 0.19 0.29 0.20 0.23 0.24 0.17 0.17 0.09 0.45

Net operating income to assets 1.13 0.87 1.21 1.32 1.27 1.02 1.05 1.16 1.11 0.98 1.13 1.52

Pretax return on assets 1.40 0.98 1.39 1.62 1.61 1.26 1.30 1.37 1.38 1.24 1.36 1.95

Return on assets 1.11 0.84 1.19 1.30 1.25 1.01 1.03 1.15 1.09 0.97 1.12 1.49

Return on equity 11.82 6.72 12.35 13.13 12.82 11.02 10.42 11.64 12.03 10.34 13.41 15.51

Net charge-offs to loans and leases 0.27 0.06 0.05 0.15 0.28 0.32 0.26 0.34 0.18 0.27 0.09 0.43

Loan and lease loss provision to net 

charge-offs 159.85 106.04 250.22 192.43 160.83 153.28 168.95 137.45 206.16 137.57 185.20 161.82

Efficiency ratio 57.74 76.77 65.31 58.61 54.78 58.58 57.60 56.69 58.11 61.83 59.00 53.23

% of unprofitable institutions 3.46 10.38 2.29 1.58 2.07 0.00 4.66 5.43 3.56 1.84 2.56 6.53

% of institutions with earnings gains 56.01 51.51 56.04 60.39 55.17 46.15 59.68 70.04 54.01 42.49 64.39 55.68

Condition Ratios (%)

Earning assets to total assets 90.68 92.70 93.59 92.85 92.12 89.26 90.54 89.94 89.30 90.37 92.84 93.97

Loss Allowance to:

 Loans and leases 1.60 1.39 1.29 1.29 1.57 1.75 1.57 1.60 1.52 1.69 1.19 1.90

 Noncurrent loans and leases 217.46 162.36 272.24 201.87 217.75 216.90 181.16 222.67 226.21 217.63 145.23 334.23

Noncurrent assets plus other real 

estate owned to assets 0.39 0.50 0.34 0.47 0.46 0.35 0.47 0.39 0.33 0.39 0.44 0.37

Equity capital ratio 9.34 12.37 9.22 9.65 9.50 9.20 9.84 9.73 9.24 9.21 7.83 9.38

Core capital (leverage) ratio 8.98 14.19 11.03 10.43 9.42 8.29 9.32 8.61 8.68 8.79 9.35 9.70

Common equity tier 1 capital ratio*** 13.56 22.26 15.24 13.37 12.89 13.91 13.67 12.64 14.18 13.21 14.39 13.78

Tier 1 risk-based capital ratio*** 13.65 22.26 15.29 13.41 13.09 13.95 13.72 12.70 14.23 13.29 14.51 14.03

Total risk-based capital ratio*** 14.94 23.29 16.38 14.44 14.33 15.33 15.03 13.85 15.60 14.86 15.58 15.16

Net loans and leases to deposits 62.62 62.57 72.80 81.00 75.71 51.18 64.99 62.62 58.48 58.16 59.10 76.84

Net loans and leases to total assets 50.98 52.73 62.88 67.55 61.89 41.18 52.75 51.92 45.74 47.55 50.74 63.13

Domestic deposits to total assets 75.11 84.28 86.38 83.29 80.29 69.90 76.97 80.29 69.02 66.57 85.82 81.38

Structural Changes

 New reporters 15 15 0 0 0 0 3 4 0 1 2 5

 Institutions absorbed by mergers 134 29 67 29 9 0 26 11 23 39 29 6

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

PRIOR FULL YEARS 

(The way it was...)

Number of institutions 2021 4,839 817 3,049 813 147 13 577 551 1,040 1,237 1,075 359

 2019 5,177 1,156 3,225 656 130 10 625 587 1,118 1,330 1,138 379

 2017 5,670 1,407 3,513 627 114 9 693 668 1,214 1,438 1,235 422

Total assets (in billions) 2021 $23,719.7 $50.0 $1,125.0 $2,221.9 $7,076.0 $13,246.9 $4,454.9 $4,787.7 $5,666.0 $4,198.7 $2,041.5 $2,570.9

 2019 18,645.7 68.6 1,087.9 1,753.9 6,071.6 9,663.8 3,407.7 3,847.5 4,235.6 3,796.7 1,204.6 2,153.7

 2017 17,415.4 83.7 1,154.2 1,751.7 5,699.2 8,726.7 3,248.1 3,601.0 3,918.1 3,683.2 1,090.0 1,875.1

Return on assets (%) 2021 1.23 1.04 1.29 1.41 1.46 1.07 1.08 1.26 1.25 1.10 1.12 1.71

 2019 1.29 1.02 1.29 1.30 1.35 1.26 1.09 1.29 1.34 1.20 1.32 1.66

 2017 0.97 0.83 1.04 1.05 1.04 0.89 0.85 1.00 1.00 0.76 1.12 1.36

Net charge-offs to loans & leases (%) 2021 0.25 0.07 0.06 0.12 0.30 0.27 0.26 0.26 0.19 0.31 0.10 0.33

 2019 0.52 0.21 0.14 0.21 0.70 0.51 0.48 0.58 0.42 0.53 0.24 0.78

 2017 0.50 0.21 0.15 0.22 0.71 0.47 0.58 0.61 0.27 0.51 0.28 0.67

Noncurrent assets plus OREO 

to assets (%) 2021 0.44 0.58 0.42 0.44 0.56 0.37 0.45 0.39 0.37 0.49 0.69 0.35

 2019 0.55 0.94 0.70 0.57 0.62 0.48 0.51 0.57 0.49 0.61 0.84 0.42

 2017 0.73 1.01 0.83 0.66 0.70 0.74 0.65 0.83 0.67 0.86 0.81 0.45

Equity capital ratio (%) 2021 9.94 13.49 10.83 10.86 10.31 9.50 10.32 10.21 9.52 9.81 9.64 10.14

 2019 11.32 14.27 12.01 12.03 11.86 10.76 11.83 12.23 10.89 10.24 12.16 11.15

 2017 11.22 13.01 11.29 11.82 12.13 10.47 12.34 12.06 10.42 9.99 11.49 11.58

* 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

** 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 2023 VOLUME 17, NUMBER 2

14 

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

March 31, 2023 All Insured 

Institutions

Asset Concentration Groups*

Credit 

Card

Banks

International

Banks

Agricultural

Banks

Commercial

Lenders

Mortgage

Lenders

Consumer

Lenders

Other

Specialized

<$1 Billion

All Other

<$1 Billion

All Other

>$1 

Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.41 0.25 0.45 0.46 0.40 0.31 0.14 0.97 0.67 0.43

 Construction and development 0.36 0.63 0.16 0.49 0.33 0.72 0.53 1.42 0.56 0.47

 Nonfarm nonresidential 0.25 0.00 1.53 0.37 0.19 0.23 0.03 0.66 0.42 0.23

 Multifamily residential real estate 0.20 0.00 0.34 0.06 0.18 0.21 0.08 0.94 0.12 0.14

 Home equity loans 0.49 0.00 0.70 0.40 0.48 0.38 0.33 0.74 0.61 0.49

 Other 1-4 family residential 0.59 0.27 0.34 0.68 0.79 0.30 0.15 1.13 0.83 0.52

Commercial and industrial loans 0.33 0.82 0.58 0.76 0.25 0.26 0.42 0.80 0.82 0.29

Loans to individuals 1.32 1.37 0.97 0.88 0.97 0.30 2.01 1.51 1.82 1.53

 Credit card loans 1.28 1.40 0.94 1.20 1.40 1.01 2.14 0.33 8.24 1.46

 Other loans to individuals 1.36 1.08 1.08 0.84 0.94 0.27 2.01 1.56 1.48 1.60

All other loans and leases (including farm) 0.24 0.75 0.35 0.64 0.24 0.04 0.06 0.46 0.36 0.14

Total loans and leases 0.52 1.30 0.56 0.54 0.39 0.30 1.29 0.97 0.76 0.56

Percent of Loans Noncurrent**

All real estate loans 0.93 0.67 1.12 0.50 0.74 0.42 0.20 0.65 0.55 1.48

 Construction and development 0.38 0.00 1.58 0.18 0.29 0.45 0.11 0.35 0.21 0.55

 Nonfarm nonresidential 0.70 0.76 0.75 0.46 0.53 0.29 0.32 0.53 0.65 1.57

 Multifamily residential real estate 0.20 2.61 0.10 0.55 0.16 0.18 0.00 0.00 0.08 0.40

 Home equity loans 1.73 0.00 5.79 0.21 1.02 0.36 2.20 0.53 0.29 2.62

 Other 1-4 family residential 1.31 0.64 1.26 0.44 1.37 0.44 0.16 0.79 0.56 1.55

Commercial and industrial loans 0.65 0.61 0.79 0.75 0.70 0.36 0.71 0.90 0.81 0.49

Loans to individuals 0.91 1.47 0.79 0.40 0.63 0.10 0.82 0.50 0.66 0.90

 Credit card loans 1.35 1.56 0.97 0.49 1.32 0.69 2.94 0.13 3.92 1.51

 Other loans to individuals 0.49 0.43 0.19 0.39 0.59 0.08 0.79 0.52 0.49 0.36

All other loans and leases (including farm) 0.17 0.74 0.21 0.43 0.21 0.13 0.02 0.65 0.44 0.11

Total loans and leases 0.75 1.36 0.72 0.51 0.68 0.39 0.63 0.67 0.58 0.87

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.03 0.01 -0.01 0.01 0.02 0.01 -0.01 -0.05 0.01 0.06

 Construction and development 0.01 0.00 0.00 0.02 0.01 0.00 0.00 -0.02 0.00 -0.02

 Nonfarm nonresidential 0.09 0.00 0.06 0.00 0.05 0.03 0.00 -0.02 0.02 0.31

 Multifamily residential real estate 0.03 0.00 0.00 -0.02 0.01 0.00 0.00 0.00 0.00 0.13

 Home equity loans -0.07 0.00 -0.33 0.03 -0.03 -0.03 0.07 0.10 0.00 -0.11

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

Commercial and industrial loans 0.26 1.95 0.21 0.12 0.28 0.04 0.32 0.20 0.25 0.17

Loans to individuals 1.93 3.38 1.92 0.48 1.02 0.32 1.34 2.21 0.25 1.93

 Credit card loans 3.09 3.50 2.35 2.53 4.07 2.56 7.10 0.73 0.16 3.29

 Other loans to individuals 0.84 1.97 0.49 0.25 0.82 0.24 1.27 2.26 0.26 0.72

All other loans and leases (including farm) 0.12 0.93 0.10 0.02 0.12 0.08 0.08 0.95 0.15 0.13

Total loans and leases 0.41 3.18 0.48 0.03 0.15 0.04 0.85 0.20 0.06 0.48

Loans Outstanding (in billions)

All real estate loans $5,801.5 $4.6 $573.4 $114.7 $3,384.0 $222.7 $62.0 $12.7 $41.3 $1,386.0

 Construction and development 479.7 0.1 18.3 8.3 377.0 7.4 0.7 1.4 3.1 63.5

 Nonfarm nonresidential 1,782.8 0.3 62.5 29.5 1,363.5 18.2 8.4 4.5 9.1 286.8

 Multifamily residential real estate 593.1 0.0 92.9 4.3 390.4 6.6 1.1 0.4 1.3 96.1

 Home equity loans 269.8 0.0 19.4 1.8 170.1 9.0 0.8 0.3 1.3 67.0

 Other 1-4 family residential 2,506.3 4.1 338.4 26.7 1,021.8 180.6 50.9 5.3 23.1 855.3

Commercial and industrial loans 2,529.3 42.0 360.0 21.7 1,256.5 7.3 38.1 1.9 4.6 797.1

Loans to individuals 2,037.7 334.9 400.6 5.8 371.2 15.0 173.0 1.3 4.6 731.3

 Credit card loans 982.8 307.4 306.1 0.6 22.7 0.5 2.3 0.0 0.2 342.9

 Other loans to individuals 1,054.9 27.5 94.4 5.3 348.5 14.5 170.7 1.3 4.4 388.4

All other loans and leases (including farm) 1,845.2 0.4 540.5 32.5 499.2 7.6 14.9 0.8 2.9 746.3

Total loans and leases (plus unearned income) 12,213.7 381.9 1,874.6 174.8 5,510.9 252.6 288.0 16.6 53.5 3,660.7

Memo: Other Real Estate Owned 

(in millions)

All other real estate owned 2,687.4 0.9 224.0 81.0 1,547.4 50.3 13.8 18.0 27.7 724.3

 Construction and development 473.0 0.0 5.0 7.7 400.4 9.5 0.9 8.7 10.9 29.9

 Nonfarm nonresidential 1,262.9 0.9 72.0 33.2 744.8 12.1 0.5 5.6 9.9 383.9

 Multifamily residential real estate 27.4 0.0 0.0 0.9 26.0 0.2 0.0 0.0 0.2 0.0

 1-4 family residential 843.2 0.0 146.0 10.4 325.3 28.5 12.4 3.5 6.6 310.5

 Farmland 78.8 0.0 0.0 28.8 49.6 0.0 0.0 0.1 0.2 0.0

* See Table IV-A (page 12) for explanations.

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
QUARTERLY 2023 VOLUME 17, NUMBER 2

15 

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

March 31, 2023 All Insured

Institutions

Asset Size Distribution Geographic Regions*

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 0.41 0.98 0.42 0.24 0.44 0.47 0.40 0.39 0.34 0.53 0.65 0.20

 Construction and development 0.36 1.06 0.43 0.28 0.38 0.37 0.62 0.29 0.22 0.38 0.26 0.42

 Nonfarm nonresidential 0.25 0.80 0.29 0.15 0.20 0.44 0.26 0.18 0.24 0.55 0.19 0.11

 Multifamily residential real estate 0.20 0.04 0.13 0.10 0.20 0.28 0.25 0.25 0.10 0.53 0.24 0.03

 Home equity loans 0.49 0.64 0.45 0.41 0.53 0.50 0.46 0.45 0.62 0.53 0.46 0.37

 Other 1-4 family residential 0.59 1.20 0.59 0.40 0.72 0.53 0.54 0.58 0.43 0.62 1.54 0.27

Commercial and industrial loans 0.33 1.13 0.54 0.40 0.30 0.32 0.23 0.28 0.40 0.36 0.27 0.49

Loans to individuals 1.32 1.38 1.14 1.63 1.20 1.39 1.06 1.88 0.83 1.21 0.90 1.58

 Credit card loans 1.28 3.28 3.67 3.07 1.30 1.22 1.46 1.60 0.88 1.07 0.59 1.43

 Other loans to individuals 1.36 1.36 1.06 1.33 1.12 1.60 0.75 2.14 0.79 1.51 0.99 1.71

All other loans and leases (including farm) 0.24 0.71 0.49 0.39 0.23 0.22 0.21 0.13 0.37 0.23 0.23 0.16

Total loans and leases 0.52 0.99 0.46 0.36 0.53 0.56 0.45 0.61 0.43 0.53 0.57 0.58

Percent of Loans Noncurrent** 

All real estate loans 0.93 0.76 0.44 0.43 0.89 1.44 1.03 0.92 1.02 1.14 1.00 0.39

 Construction and development 0.38 0.32 0.28 0.31 0.29 0.71 0.79 0.13 0.61 0.22 0.16 0.38

 Nonfarm nonresidential 0.70 0.86 0.45 0.37 0.70 1.27 1.08 0.76 0.55 0.86 0.35 0.45

 Multifamily residential real estate 0.20 0.32 0.22 0.20 0.18 0.22 0.28 0.34 0.13 0.13 0.06 0.15

 Home equity loans 1.73 0.49 0.43 0.38 1.00 3.03 1.49 1.31 2.18 3.98 0.71 0.45

 Other 1-4 family residential 1.31 0.79 0.47 0.63 1.37 1.61 1.24 1.19 1.42 1.50 2.44 0.41

Commercial and industrial loans 0.65 1.44 0.69 1.18 0.68 0.53 0.98 0.48 0.57 0.55 0.74 0.80

Loans to individuals 0.91 0.90 0.42 1.02 0.89 0.92 0.97 1.10 0.51 0.89 0.57 1.09

 Credit card loans 1.35 2.29 1.92 3.74 1.43 1.25 1.62 1.62 0.89 1.12 1.02 1.56

 Other loans to individuals 0.49 0.89 0.38 0.45 0.46 0.52 0.48 0.64 0.18 0.41 0.44 0.67

All other loans and leases (including farm) 0.17 0.74 0.48 0.28 0.17 0.16 0.12 0.11 0.24 0.20 0.16 0.13

Total loans and leases 0.75 0.84 0.47 0.58 0.77 0.83 0.88 0.72 0.69 0.79 0.86 0.60

Percent of Loans Charged-Off

(net, YTD) 

All real estate loans 0.03 0.00 0.00 0.01 0.06 0.00 0.02 0.01 0.01 0.00 0.01 0.11

 Construction and development 0.01 -0.02 0.00 -0.01 0.02 0.01 0.02 -0.02 0.05 -0.01 0.00 0.01

 Nonfarm nonresidential 0.09 0.02 0.00 0.02 0.16 0.09 0.08 0.07 0.04 0.05 0.03 0.28

 Multifamily residential real estate 0.03 0.00 -0.01 0.01 0.05 0.00 0.00 0.00 0.01 0.00 0.00 0.12

 Home equity loans -0.07 0.00 -0.01 0.01 -0.03 -0.15 -0.04 -0.12 -0.10 -0.14 -0.03 0.02

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

Commercial and industrial loans 0.26 0.18 0.15 0.26 0.34 0.22 0.21 0.26 0.30 0.09 0.12 0.74

Loans to individuals 1.93 0.38 0.76 2.64 1.90 1.93 2.00 2.03 1.22 2.28 0.94 2.42

 Credit card loans 3.09 13.96 4.21 9.47 3.21 2.85 3.55 3.31 2.13 2.87 1.86 3.73

 Other loans to individuals 0.84 0.28 0.65 1.17 0.89 0.76 0.83 0.89 0.40 1.01 0.67 1.23

All other loans and leases (including farm) 0.12 -0.09 0.06 0.07 0.06 0.14 0.09 0.22 0.10 0.10 0.12 0.04

Total loans and leases 0.41 0.04 0.05 0.22 0.45 0.48 0.39 0.50 0.28 0.38 0.11 0.77

Loans Outstanding (in billions) 

All real estate loans $5,801.5 $16.7 $547.0 $1,141.7 $2,217.0 $1,879.1 $1,233.7 $992.3 $1,151.6 $902.9 $707.4 $813.4

 Construction and development 479.7 1.1 57.0 127.6 203.6 90.4 86.7 74.5 76.5 69.2 116.8 56.2

 Nonfarm nonresidential 1,782.8 3.4 201.4 481.1 730.5 366.4 402.7 331.3 279.7 224.2 283.1 261.8

 Multifamily residential real estate 593.1 0.4 32.4 129.2 266.2 164.9 188.0 52.5 149.3 60.2 35.7 107.4

 Home equity loans 269.8 0.3 15.7 37.4 103.2 113.2 71.9 57.6 64.8 29.5 20.7 25.4

 Other 1-4 family residential 2,506.3 8.1 187.9 328.5 896.1 1,085.6 478.9 461.0 554.9 430.9 227.7 352.8

Commercial and industrial loans 2,529.3 2.8 83.0 240.6 842.1 1,360.8 435.5 646.6 602.6 436.3 195.2 213.1

Loans to individuals 2,037.7 1.6 26.8 96.5 782.6 1,130.2 383.7 475.9 406.5 300.3 78.4 392.9

 Credit card loans 982.8 0.0 0.8 16.6 339.8 625.6 165.4 223.5 188.7 203.8 17.4 184.1

 Other loans to individuals 1,054.9 1.5 26.0 79.8 442.8 504.6 218.4 252.4 217.8 96.5 61.0 208.8

All other loans and leases (including farm) 1,845.2 2.8 37.4 66.9 486.7 1,251.4 331.0 396.4 494.8 405.9 67.3 149.8

Total loans and leases (plus unearned income) 12,213.7 23.9 694.2 1,545.6 4,328.5 5,621.6 2,384.1 2,511.2 2,655.5 2,045.4 1,048.4 1,569.2

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 2,687.4 16.4 397.5 639.1 701.4 933.0 413.7 641.6 521.4 480.9 469.1 160.7

 Construction and development 473.0 3.7 128.8 189.1 129.8 21.5 47.5 83.0 34.3 94.6 179.4 34.2

 Nonfarm nonresidential 1,262.9 6.4 156.8 328.0 223.4 548.2 103.0 401.0 216.8 289.4 213.0 39.6

 Multifamily residential real estate 27.4 0.1 10.4 5.5 6.9 4.5 9.6 2.3 10.3 2.3 2.8 0.0

 1-4 family residential 843.2 5.8 70.9 87.7 324.9 353.8 253.6 154.1 248.4 68.2 55.0 63.9

 Farmland 78.8 0.4 30.6 27.5 16.4 4.0 0.0 0.6 10.8 25.4 18.8 23.1

* See Table IV-A (page 13) for explanations.

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
QUARTERLY 2023 VOLUME 17, NUMBER 2

16 

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

(dollar figures in millions;

notional amounts unless otherwise indicated)

1st 

Quarter

2023

4th 

Quarter

2022

3rd

 Quarter

2022

2nd 

Quarter

2022

1st 

Quarter

2022

%

Change

22Q1-

23Q1

Asset Size Distribution

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 1,177 1,141 1,212 1,254 1,295 -9.1 13 503 512 135 14

Total assets of institutions reporting derivatives $21,778,016 $21,631,670 $21,656,143 $21,873,055 $22,148,693 -1.7 $932 $257,557 $1,607,427 $6,402,551 $13,509,549

Total deposits of institutions reporting derivatives 17,123,410 17,562,378 17,673,277 17,982,075 18,368,847 -6.8 729 218,275 1,323,510 4,972,223 10,608,672

Total derivatives 220,468,525 192,875,723 198,385,321 197,421,142 203,157,729 8.5 130 10,616 190,485 4,402,848 215,864,447

Derivative Contracts by Underlying 

Risk Exposure 

Interest rate 160,283,032 139,774,359 141,989,523 142,884,741 145,900,883 9.9 130 10,314 183,422 2,469,637 157,619,529

Foreign exchange* 48,529,675 43,001,986 45,988,455 44,459,158 46,356,534 4.7 0 0 2,811 1,680,794 46,846,070

Equity 5,001,131 4,423,904 4,409,702 4,330,864 4,489,264 11.4 0 30 24 50,809 4,950,268

Commodity & other (excluding credit derivatives) 1,574,689 1,432,977 1,606,776 1,779,436 1,905,829 -17.4 0 0 56 135,309 1,439,324

Credit 5,079,273 4,241,352 4,389,784 3,965,766 4,504,316 12.8 0 15 3,703 66,299 5,009,256

Total 220,467,800 192,874,578 198,384,240 197,419,965 203,156,826 8.5 130 10,359 190,016 4,402,848 215,864,447

Derivative Contracts by Transaction Type 

Swaps 137,729,743 118,597,662 121,132,626 121,285,181 124,396,704 10.7 0 1,584 130,896 2,576,131 135,021,132

Futures & forwards 34,502,393 28,748,693 31,661,060 32,045,336 33,523,101 2.9 0 1,384 8,485 1,358,752 33,133,771

Purchased options 20,067,871 19,695,467 19,118,334 18,596,675 18,875,284 6.3 0 286 20,381 173,107 19,874,097

Written options 20,222,587 19,693,855 18,780,453 18,958,408 19,054,957 6.1 0 1,307 9,590 161,297 20,050,393

Total 212,522,593 186,735,678 190,692,473 190,885,599 195,850,046 8.5 0 4,561 169,352 4,269,287 208,079,393

Fair Value of Derivative Contracts 

Interest rate contracts 64,098 72,856 76,860 76,672 71,330 -10.1 0 47 1,486 -3,252 65,817

Foreign exchange contracts 2,918 -14,980 15,025 11,233 11,938 -75.6 0 0 3 1,089 1,825

Equity contracts -5,957 4,403 16,949 12,308 -3,383 N/M 0 0 0 -649 -5,308

Commodity & other (excluding credit derivatives) 2,790 8,892 18,933 22,615 21,140 -86.8 0 0 0 100 2,690

Credit derivatives as guarantor** 12,908 5,346 -16,373 -18,433 13,388 -3.6 0 3 12 -59 12,951

Credit derivatives as beneficiary** -14,427 -4,002 23,163 22,643 -14,304 N/M 0 0 9 -163 -14,273

Derivative Contracts by Maturity*** 

 Interest rate contracts < 1 year 109,261,215 92,694,359 97,477,065 96,672,591 102,946,312 6.1 0 971 18,317 1,322,011 107,919,917

 1-5 years 30,208,263 27,375,717 26,085,681 26,253,904 26,322,685 14.8 0 718 71,133 584,128 29,552,284

 > 5 years 21,259,200 20,667,400 19,919,888 22,979,692 23,004,026 -7.6 0 810 60,899 354,367 20,843,124

 Foreign exchange and gold contracts < 1 year 36,896,856 33,156,693 34,753,442 33,883,174 34,852,149 5.9 0 0 1,691 1,539,853 35,355,312

 1-5 years 4,979,588 4,811,621 4,481,609 4,545,526 4,822,181 3.3 0 0 324 117,883 4,861,380

 > 5 years 2,528,186 2,444,283 2,226,842 2,476,418 2,618,402 -3.4 0 0 1 8,798 2,519,388

 Equity contracts < 1 year 4,990,234 4,335,420 4,315,354 4,272,177 4,491,365 11.1 0 7 2 21,624 4,968,601

 1-5 years 1,150,946 999,329 1,057,822 911,068 1,000,719 15.0 0 23 4 25,715 1,125,204

 > 5 years 106,507 98,766 140,485 174,232 175,183 -39.2 0 0 0 1,169 105,338

 Commodity & other contracts (including 

 credit derivatives, excluding 

 gold contracts) < 1 year

3,102,457 2,743,038 2,933,679 3,007,398 3,560,248 -12.9 0 0 166 50,487 3,051,804

 1-5 years 3,290,311 2,844,783 2,819,537 2,653,707 2,658,498 23.8 0 2 1,079 55,044 3,234,187

 > 5 years 487,351 272,418 468,669 680,264 469,467 3.8 0 12 2,179 9,493 475,667

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 13.0 14.9 21.0 17.5 16.7 0.0 0.2 2.2 3.6 19.9

Total potential future exposure to tier 1 capital (%) 32.0 31.8 32.2 35.2 38.6 0.0 0.1 0.9 5.3 51.5

Total exposure (credit equivalent amount)

to tier 1 capital (%) 45.1 46.7 53.2 52.7 55.3 0.0 0.3 3.1 8.9 71.4

Credit losses on derivatives  -12.5 101.1 106.6 104.6 109.5 -111.4 0.0 1.2 -1.9 0.2 -12.1

HELD FOR TRADING

Number of institutions reporting derivatives 158 165 173 172 180 -12.2 0 13 75 58 12

Total assets of institutions reporting derivatives 16,517,738 16,459,085 16,478,700 16,613,157 17,113,163 -3.5 0 7,086 324,528 3,425,004 12,761,119

Total deposits of institutions reporting derivatives 12,895,162 13,224,437 13,290,145 13,518,784 14,065,252 -8.3 0 5,970 265,842 2,618,313 10,005,037

Derivative Contracts by Underlying 

Risk Exposure 

Interest rate 155,617,896 135,502,495 137,555,249 138,592,472 141,764,396 9.8 0 320 42,182 1,064,258 154,511,137

Foreign exchange 45,123,349 40,604,230 42,216,283 41,401,741 43,028,040 4.9 0 0 2,542 1,561,266 43,559,541

Equity 4,948,378 4,375,929 4,363,822 4,283,905 4,463,312 10.9 0 0 0 41,105 4,907,273

Commodity & other 1,532,080 1,391,961 1,565,817 1,737,954 1,865,296 -17.9 0 0 40 127,632 1,404,407

Total 207,221,703 181,874,615 185,701,171 186,016,071 191,121,044 8.4 0 320 44,765 2,794,260 204,382,358

Trading Revenues: Cash & Derivative 

Instruments 

Interest rate**  5,724 4,623 -1,179 894 415 1,279.3 0 0 6 79 5,639

Foreign exchange** 4,438 1,168 8,156 6,366 6,341 -30.0 0 0 1 195 4,242

Equity** 5,335 3,099 3,308 777 1,458 265.9 0 0 3 223 5,109

Commodity & other (including credit derivatives)** 2,086 785 2,453 2,363 2,396 -12.9 0 0 0 177 1,909

Total trading revenues** 17,582 9,675 12,739 10,401 10,610 65.7 0 0 10 674 16,898

Share of Revenue

Trading revenues to gross revenues (%)** 7.6 4.8 7.1 6.8 7.4 0.0 0.0 0.2 1.5 9.3

Trading revenues to net operating revenues (%)** 33.5 20.8 27.7 25.6 28.5 0.0 0.0 0.9 6.1 42.0

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 546 528 541 553 564 -3.2 0 102 298 132 14 Total assets of institutions reporting derivatives 20,871,016 20,707,296 20,730,925 20,822,172 21,091,915 -1.0 0 53,953 1,180,335 6,127,178 13,509,549

Total deposits of institutions reporting derivatives 16,454,728 16,786,145 16,882,713 17,089,251 17,465,032 -5.8 0 44,897 966,798 4,834,361 10,608,672

Derivative Contracts by Underlying Risk 

Exposure 

Interest rate 4,642,380 4,252,676 4,412,573 4,267,827 4,110,189 12.9 0 4,212 124,397 1,405,379 3,108,392

Foreign exchange 563,149 519,396 491,890 513,259 552,327 2.0 0 0 151 52,267 510,731

Equity 52,752 47,975 45,880 46,959 25,951 103.3 0 30 24 9,704 42,994

Commodity & other 42,609 41,016 40,959 41,482 40,534 5.1 0 0 15 7,677 34,917

Total notional amount 5,300,890 4,861,062 4,991,302 4,869,528 4,729,001 12.1 0 4,242 124,587 1,475,027 3,697,035

All line items are reported on a quarterly basis. 

* 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 applicable to banks 

filing the FFIEC 051 form. N/M - Not Meaningful 
QUARTERLY 2023 VOLUME 17, NUMBER 2

17 

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

(dollar figures in millions)

1st 

Quarter

2023

4th 

Quarter

2022

3rd 

Quarter

2022

2nd 

Quarter

2022

1st 

Quarter

2022

%

Change

22Q1-

23Q1

Asset Size Distribution

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 63 64 64 64 62 1.6 0 4 11 38 10

Outstanding Principal Balance by Asset Type** 

 1-4 family residential loans 255,482 257,640 275,921 286,245 285,743 -10.6 0 4,778 14,427 60,256 176,021

 Home equity loans 4 5 5 6 6 -33.3 0 0 0 4 0

 Credit card receivables 118 103 76 39 12 883.3 0 0 0 118 0

 Auto loans 1,237 1,102 541 59 72 1,618.1 0 0 0 835 402

 Other consumer loans 1,654 1,202 1,277 1,347 1,169 41.5 0 0 0 644 1,011

 Commercial and industrial loans 4,703 4,988 4,626 5,265 6,228 -24.5 0 0 0 0 4,703

 All other loans, leases, and other assets 113,937 115,199 113,555 114,372 111,531 2.2 0 0 6,734 9,768 97,435

Total securitized and sold 377,135 380,239 396,001 407,333 404,761 -6.8 0 4,778 21,161 71,625 279,572

Maximum Credit Exposure by Asset Type** 

 1-4 family residential loans 648 633 650 726 847 -23.5 0 0 0 399 249

 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 12 19 19 0 0 0.0 0 0 0 0 12

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

 Commercial and industrial loans 207 219 203 226 263 -21.3 0 0 0 0 207

 All other loans, leases, and other assets 2,783 2,790 2,975 2,525 2,486 11.9 0 0 63 372 2,348

Total credit exposure 3,650 3,661 3,847 3,477 3,596 1.5 0 0 63 771 2,816

Total unused liquidity commitments provided to 

institution’s own securitizations 251 236 210 187 225 11.6 0 0 0 0 251

Securitized Loans, Leases, and Other Assets 30-89 Days 

Past Due (%)** 

 1-4 family residential loans 2.3 2.9 2.5 2.4 2.2 0.0 1.8 0.2 2.6 2.4

 Home equity loans 7.1 5.5 3.4 9.3 8.6 0.0 0.0 0.0 7.1 0.0

 Credit card receivables 5.1 5.8 3.9 2.6 0.0 0.0 0.0 0.0 5.1 0.0

 Auto loans 2.1 1.2 0.4 0.0 0.0 0.0 0.0 0.0 2.8 0.7

 Other consumer loans 2.1 3.3 3.1 2.9 3.4 0.0 0.0 0.0 1.2 2.7

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

 All other loans, leases, and other assets 0.6 0.3 0.3 0.3 0.3 0.0 0.0 0.5 2.0 0.5

Total loans, leases, and other assets 1.7 2.0 1.8 1.9 1.7 0.0 0.0 0.0 2.4 1.7

Securitized Loans, Leases, and Other Assets 

90 Days or More Past Due (%)** 

 1-4 family residential loans 0.8 0.8 1.1 1.4 1.6 0.0 1.2 0.1 2.0 0.4

 Home equity loans 28.6 28.1 27.5 26.0 27.4 0.0 0.0 0.0 28.6 0.0

 Credit card receivables 6.8 5.8 2.6 0.0 0.0 0.0 0.0 0.0 6.8 0.0

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

 Other consumer loans 1.7 2.8 2.8 2.5 2.8 0.0 0.0 0.0 0.8 2.3

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

 All other loans, leases, and other assets 0.6 0.5 0.9 0.7 1.1 0.0 0.0 1.3 0.7 0.5

Total loans, leases, and other assets 0.5 0.5 0.9 1.1 1.3 0.0 0.0 0.0 0.9 0.5

Securitized Loans, Leases, and Other Assets 

Charged-Off (net, YTD, annualized, %)** 

 1-4 family residential loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

 Home equity loans 0.1 4.0 2.1 2.3 2.0 0.0 0.0 0.0 0.1 0.0

 Credit card receivables 4.2 1.9 0.0 0.0 0.0 0.0 0.0 0.0 4.2 0.0

 Auto loans 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0

 Other consumer loans 0.4 0.6 0.4 0.3 0.1 0.0 0.0 0.0 0.3 0.5

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

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

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

Seller’s Interests in Institution’s Own Securitizations 

- Carried as Securities or 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 0 0.0 0 0 0 0 0

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 307 311 316 318 321 -4.4 3 94 138 62 10

Outstanding Principal Balance by Asset Type 

 1-4 family residential loans 20,300 24,182 27,018 27,429 29,138 -30.3 18 2,851 8,934 7,413 1,085

 All other loans, leases, and other assets 144,741 144,016 142,239 141,862 140,553 3.0 0 31 48 40,591 104,072

Total sold and not securitized 165,041 168,198 169,257 169,291 169,691 -2.7 18 2,881 8,981 48,004 105,157

Maximum Credit Exposure by Asset Type 

 1-4 family residential loans 6,352 8,620 9,015 9,893 9,796 -35.2 1 261 2,759 2,690 642

 All other loans, leases, and other assets 41,996 41,742 41,221 41,203 40,923 2.6 0 31 35 12,472 29,458

Total credit exposure 48,348 50,362 50,235 51,095 50,720 -4.7 1 291 2,794 15,162 30,099

Support for Securitization Facilities Sponsored by 

Other Institutions 

Number of institutions reporting securitization facilities 

sponsored by others 34 36 36 36 37 -8.1 0 11 11 5 7

Total credit exposure 20,875 20,092 21,922 22,526 23,468 -11.0 0 0 0 727 20,149

Total unused liquidity commitments 3,049 3,165 3,576 1,995 2,194 39.0 0 0 0 295 2,754

Other

Assets serviced for others  6,223,402 6,329,175 6,178,078 6,111,536 6,046,070 2.9 2,790 140,718 406,571 1,456,543 4,216,779

Asset-backed commercial paper conduits 

 Credit exposure to conduits sponsored by institutions 

 and others 4,090 4,128 3,803 5,836 6,289 -35.0 0 0 0 0 4,090

 Unused liquidity commitments to conduits 

 sponsored by institutions and others 59,759 60,714 59,659 61,747 64,654 -7.6 0 0 0 62 59,697

Net servicing income (for the quarter) 1,749 1,412 3,224 3,489 4,523 -61.3 7 86 444 494 717

Net securitization income (for the quarter) 29 38 -11 -2 -10 N/M 0 0 2 17 9

Total credit exposure to Tier 1 capital (%)** *** 3.2 3.1 3.3 3.3 3.4 -5.9 0.0 0.1 0.1 2.2 4.8

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

** Beginning in June 2018, for banks that file the FFIEC 041 report form, all other loans include home equity loans, credit card receivables, auto loans, other consumer loans, and 

commercial and industrial loans.

*** Beginning in June 2018, only includes banks that file the FFIEC 031 report form.

  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. N/M- Not Meaningful
PAGE INTENTIONALLY LEFT BLANK
19 

QUARTERLY 2023 VOLUME 17, NUMBER 2

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 ratios are based on 

community banks designated during the previous quarter. 

Net Income Decreased Quarter Over Quarter 

The Net Interest Margin Declined in the Quarter but Increased From a Year Ago 

Loan Growth Continued and Was Broad-Based Across Most Portfolio Segments 

Total Deposit Growth Was Modest Quarter Over Quarter 

Asset Quality Remained Favorable Overall

QUARTERLY NET INCOME DECLINED 

FROM FOURTH QUARTER

Quarterly net income for the 4,230 community banks declined $306.0 

million (4.2 percent) from one quarter ago to $7.0 billion in first 

quarter 2023. Lower net interest income and noninterest income 

exceeded the declines in losses on the sale of securities, provisions for 

credit losses, and noninterest expense. More than half (56.8 percent) of 

all community banks reported lower net income compared with fourth 

quarter 2022. The share of unprofitable community banks dropped 

slightly to 4.4 percent. The pretax return on average assets (ROAA) 

ratio fell 21 basis points from one quarter ago to 1.27 percent. 

Net income increased $403.6 million (6.1 percent) from first quarter 

2022, driven by higher net interest income that was partially offset 

by higher noninterest and provision expenses and lower noninterest 

income. Pretax ROAA rose 1 basis point from the year-ago quarter.

Chart 1

Contributors to the Year-Over-Year Change in Income

FDIC-Insured Community Banks

$ Billions

Source: FDIC.

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Positive Factor Negative Factor

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

17% 164% -11% 9% 182% 9%

$0.40 $3.20 $0.48 -$0.57 $1.34 -$0.29 $0.13

6%

Chart 2

Source: FDIC.

Percent

Net Interest Margin

Industry (3.31)

Community Banks (3.49)

2.25

2.50

2.75

3.00

3.25

3.50

3.75

4.00

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
QUARTERLY 2023 VOLUME 17, NUMBER 2

20 

THE NET INTEREST MARGIN 

DECLINED OVER THE QUARTER BUT 

INCREASED FROM A YEAR AGO

The average community bank quarterly NIM decreased 22 basis points 

from the prior quarter to 3.49 percent, falling below the pre-pandemic 

average of 3.63 percent.1 The NIM widened 37 basis points from the 

year-ago quarter. The quarterly decrease in the NIM was due mainly to 

the increase in the average cost of deposits outpacing the increase in 

average yield on loans. 

The average cost of deposits increased 39 basis points from the prior 

quarter and 92 basis points from the year-ago quarter to 1.14 percent. 

Yields on total loans increased 16 basis points from the prior quarter 

and 94 basis points from the year-ago quarter to 5.36 percent, largely 

due to higher yields on commercial real estate (CRE) loans.

NET OPERATING REVENUE DECLINED 

QUARTER OVER QUARTER ON 

FALLING NET INTEREST INCOME

Community bank net operating revenue (net interest income plus 

noninterest income) decreased $1.2 billion (4.3 percent) from fourth 

quarter 2022. Higher interest expense, mainly on domestic deposits, drove 

the quarterly decline in net interest income. Noninterest income declined 

$237.0 million (4.9 percent) from the prior quarter due to lower net gains 

on sales of other assets and ATM fees. More than 70 percent of community 

banks reported lower net interest income in the first quarter.

From the year-ago quarter, a $3.2 billion increase in net interest income 

was only partially offset by a $566.0 million decline in noninterest income, 

resulting in a $2.6 billion (11.0 percent) increase in net operating revenue. 

Lower net gains on loan sales drove the annual decline in noninterest 

income, while higher interest income on loans secured by farmland, and 

nonfarm, nonresidential CRE, and 1–4 family residential real estate loans 

drove the year-over-year growth in net interest income.

1 The “pre-pandemic average” refers to the period first quarter 2015 through fourth quarter 2019 and is used consistently throughout this report.

Chart 3

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks

Source: FDIC. Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

Commercial

& Industrial

1–4 Family

Residential

RE

Construction &

Development

Farm

Loans

Commercial RE

& Construction

Commercial

& Industrial

Change 1Q 2023 vs. 1Q 2022

Change 1Q 2023 vs. 4Q 2022

67.2

18.9

63.1

28.4

2.0

9.8 13.7 11.0

1.7

9.4 4.8

-4.5 -4.1

1.8

-10

0

10

20

30

40

50

60

70

80

$ Billions

Chart 4

Source: FDIC.

Share of Loan Portfolio Noncurrent

Percent

Noncurrent Loan Rates for FDIC-Insured Community Banks

C&D Loans

Nonfarm Nonresidential RE

1–4 Family RE

C&I Loans

Farm Loans

Home Equity

0

2

4

6

8

10

12

14

16

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
QUARTERLY 2023 VOLUME 17, NUMBER 2

21 

NONINTEREST EXPENSE DECLINED 

QUARTER OVER QUARTER BUT 

INCREASED YEAR OVER YEAR

Noninterest expense of $16.8 billion was $120.2 million (0.7 percent) 

lower than the fourth quarter but $1.3 billion (8.7 percent) higher than 

first quarter 2022. A reduction in data processing expenses drove the 

quarterly decline in noninterest expense, and higher salary and data 

processing expenses drove the annual increase. Noninterest expense 

as a share of average assets dropped 6 basis points to 2.49 percent from 

one quarter ago as noninterest expense declined and average assets 

rose. The community bank efficiency ratio (noninterest expense as a 

share of net operating revenue) rose 218 basis points from one quarter 

ago to 62.83 percent, as noninterest expense declined by a lesser share 

than net operating revenue. The higher efficiency ratio indicates that 

banks were less efficient at generating revenue.

PROVISION EXPENSE DECLINED 

OVER THE QUARTER, BUT 

INCREASED YEAR OVER YEAR

Quarterly provision expense of $767.9 million was $160.2 million (17.3 

percent) lower than one quarter ago but $476.5 million higher than one 

year ago.2 As of first quarter 2023, 3,993 community banks had adopted 

current expected credit loss (CECL) accounting. New community bank 

CECL adopters in the quarter made a “Day One” adjustment of $922 

million, which flowed through retained earnings and increased the 

allowance for credit losses but did not affect provision expense.3

The reserve coverage ratio (the ratio of the allowance for credit losses 

to noncurrent loans) decreased 1.3 percentage points from the previous 

quarter, but increased 37.3 percentage points from the year-ago quarter 

to 272.9 percent. This is the second-highest level in the history of the 

Quarterly Banking Profile following last quarter’s peak. The reserve 

coverage ratio for community banks was 58.7 percentage points above 

the reserve coverage ratio for noncommunity banks.

COMMUNITY BANK ASSETS ROSE ON 

SOLID, YET SLOWING QUARTERLY 

LOAN GROWTH

Total assets increased $32.9 billion (1.2 percent) from fourth quarter 

2022 and $119.3 billion (4.6 percent) from the previous year. Growth in 

total loans and leases slowed from the prior quarter, increasing $32.1 

billion (1.8 percent) in first quarter 2023 compared with $64.3 billion 

(3.7 percent) in fourth quarter 2022. Total loans and leases grew $238.4 

billion (15.0 percent) from one year ago. The balance of securities fell 

$11.9 billion (2.0 percent) from fourth quarter 2022 and $21.5 billion 

(3.5 percent) from one year ago, weighing on quarterly asset growth. 

Increases in cash and balances due from depository institutions of 

$14.0 billion (8.9 percent) from the previous quarter added to growth, 

but this asset category was down $104.7 billion (37.9 percent) from the 

year-ago quarter.

2 Provisions for credit losses include both losses for loans and securities for CECL adopters but only loan losses for non-adopters. 

3 The Day-One adjustment is the difference, if any, between the amount of Allowance for Losses on Loans and Leases (ALLL) required under the incurred loss methodology and 

the Allowance for Credit Loss (ACL) required under CECL and booked on the first day of the quarter that a bank adopts CECL. This amount is transferred from retained earnings 

to the ACL, and is not recognized as a provision in the income statement.
QUARTERLY 2023 VOLUME 17, NUMBER 2

22 

UNREALIZED LOSSES ON SECURITIES 

DECREASED BUT REMAIN ELEVATED4

Unrealized losses on securities totaled $59.2 billion in the first quarter, 

down from $67.9 billion in the fourth quarter. Unrealized losses on 

held-to-maturity securities totaled $9.4 billion in first quarter 2023, 

while unrealized losses on available-for-sale securities totaled $49.8 

billion.

LOAN GROWTH WAS STEADY AND 

BROAD-BASED

Total loan and lease balances in most major portfolios increased from 

one quarter ago, except for agriculture production loans, a category 

that is affected by seasonal factors. Slightly more than two-thirds 

of community banks (66.8 percent) reported quarterly loan growth. 

Growth in nonfarm, nonresidential CRE loan balances (up $11.0 billion, 

or 2.0 percent) and 1–4 family residential real estate loan balances 

(up $9.4 billion, or 2.2 percent) drove the quarterly increase.

Loan balances in all portfolios grew from one year ago, and 89.7 

percent of community banks reported annual loan growth. Growth 

in nonfarm, nonresidential CRE loan balances (up 67.2 billion, or 13.4 

percent) and 1–4 family residential real estate loan balances (up $63.1 

billion, or 17.1 percent) drove the annual increase.

DEPOSITS WERE UP SLIGHTLY FROM 

THE PREVIOUS QUARTER

Community banks reported deposit growth of 0.5 percent ($10.3 billion) 

during first quarter 2023, up from growth of 0.03 percent reported in 

fourth quarter 2022. Slightly more than half of all community banks 

(52.0 percent) reported an increase in deposit balances from the prior 

quarter. Growth in deposit accounts with less than $250,000 (up $73.1 

billion) drove total deposit growth and was largely offset by a decline 

in uninsured balances. In the first quarter, growth in interest-bearing 

deposit balances (up $41.6 billion, or 2.5 percent) was mostly offset by 

a decline in noninterest-bearing deposits. Deposit balances rose 1.6 

percent ($35.1 billion) from one year ago.

Wholesale funds increased $52.9 billion (10.2 percent) in the quarter. 

This increase largely consisted of growth in brokered deposits of 

$21.2 billion (25.1 percent), reciprocal deposits (net of brokered) of 

$14.9 billion (21.6 percent), and other borrowings of $9.4 billion (182.7 

percent) from one quarter ago. The share of wholesale funds to total 

assets was 21.1 percent in first quarter, up from 19.2 percent in fourth 

quarter 2022 and above the pre-pandemic average of 17.5 percent.5

4 Unrealized losses on securities reflect the difference between the market value as of quarter end and the book value of non-equity securities. This calculation does not 

account for any unrealized gains or losses in “accumulated other comprehensive income” because unrealized gains and losses cannot be derived from Call Reports. 

5 Wholesale funding includes federal funds purchased and securities sold under agreement to repurchase, Federal Home Loan Bank and other borrowings, brokered and 

reciprocal deposits, listing service deposits, municipal and state deposits, and foreign deposits (which are not FDIC insured).
QUARTERLY 2023 VOLUME 17, NUMBER 2

23 

EARLY-STAGE DELINQUENCIES 

REMAINED LOW

The rate of loans and leases 30 to 89 days past due grew 1 basis point 

from one quarter ago and was unchanged from a year ago at 0.37 

percent, a level that remains below the pre-pandemic average of 0.55 

percent. The nonfarm, nonresidential CRE loan past-due rate rose 4 

basis points from the prior quarter and 3 basis points from the yearago quarter to 0.21 percent, and the farm loan past-due rate was up 15 

basis points to 0.39 percent quarter over quarter. Farm lending is highly 

seasonal; while first-quarter delinquencies are normally elevated, the 

past-due rate was down 1 basis point from the year-ago quarter.

THE NONCURRENT LOAN RATE 

EDGED HIGHER FROM A RECORD 

LOW LAST QUARTER

Loans and leases 90 days or more past due or in nonaccrual status 

(noncurrent loan balances) increased, and the noncurrent rate 

increased 1 basis point from fourth quarter 2022 to 0.45 percent. 

Still, slightly more than half of community banks (51.7 percent) 

reported quarter-over-quarter reductions in noncurrent loan 

balances. Noncurrent loan balances for nonfarm, nonresidential 

CRE, multifamily, and commercial and industrial loans increased 

slightly from the prior quarter; these increases were somewhat offset 

by declines in the noncurrent loan balances of residential real estate 

loans.

THE NET CHARGE-OFF RATE 

REMAINED LOW

The community bank net charge-off rate increased to 0.09 percent 

from 0.03 percent in first quarter 2022 but remained low compared to 

the average rate of the previous decade. In addition, most movement 

occurred in relatively small loan portfolio segments. The net chargeoff rate for consumer loans (which account for 4.6 percent of total loan 

balances) increased 55 basis points from one year ago to 1.20 percent.
QUARTERLY 2023 VOLUME 17, NUMBER 2

24 

CAPITAL RATIOS REMAINED STRONG The tier one risk-based capital ratio for community banks that did not 

file the community bank leverage ratio (CBLR) was 13.71 percent, up 

10 basis points from the prior quarter, as reductions in higher riskweighted assets outpaced tier 1 capital declines. The average CBLR for 

the 1,618 community banks that elected to use the CBLR framework 

was 11.92 percent, up 6 basis points from fourth quarter 2022. The 

leverage capital ratio for community banks increased 6 basis points to 

10.56 percent in first quarter 2023. Equity capital rose $5.9 billion (2.4 

percent) in first quarter 2023 as a decline in certain market interest 

rates improved the value of available-for-sale investment securities, 

resulting in a slight reversal in the negative accumulated other 

comprehensive income observed in previous quarters. However, no 

community banks are advanced approach institutions and, therefore, 

these losses did not directly affect their regulatory capital ratios.

ONE COMMUNITY BANK OPENED AND 

NO COMMUNITY BANKS FAILED IN 

FIRST QUARTER 2023

The number of community banks declined to 4,230 in the first quarter, 

down 28 from the previous quarter. One community bank opened, none 

failed, several transitioned from community to noncommunity banks 

or vice versa, and 26 merged out of existence during the quarter.

Author:

Brian Webb, CFA, FRM

Senior Financial Analyst

Division of Insurance and Research
QUARTERLY 2023 VOLUME 17, NUMBER 2

25 

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

2023* 2022* 2022 2021 2020 2019 2018

Return on assets (%) 1.04 1.04 1.15 1.26 1.09 1.20 1.19

Return on equity (%) 11.13 10.19 12.00 11.70 9.72 10.24 10.51

Core capital (leverage) ratio (%) 10.56 10.15 10.50 10.16 10.32 11.14 11.13

Noncurrent assets plus other real estate owned to assets (%) 0.34 0.38 0.33 0.40 0.60 0.65 0.71

Net charge-offs to loans (%) 0.09 0.03 0.07 0.07 0.12 0.13 0.12

Asset growth rate (%) -0.70 3.87 -1.61 8.86 12.15 2.55 0.23

Net interest margin (%) 3.49 3.12 3.45 3.28 3.39 3.66 3.73

Net operating income growth (%) 4.45 -11.78 -3.72 29.69 -2.07 0.13 25.30

Number of institutions reporting 4,230 4,348 4,258 4,386 4,556 4,750 4,978

Percentage of unprofitable institutions (%) 4.37 5.80 3.52 3.26 4.52 3.96 3.66

* Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31.
QUARTERLY 2023 VOLUME 17, NUMBER 2

26 

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

(dollar figures in millions)

1st Quarter

2023

4th Quarter 

2022

1st Quarter 

2022

% Change

22Q1-23Q1

Number of institutions reporting 4,230 4,258 4,348 -2.7

Total employees (full-time equivalent) 372,778 375,597 382,295 -2.5

CONDITION DATA

Total assets $2,715,076 $2,711,722 $2,734,287 -0.7

 Loans secured by real estate 1,416,330 1,410,255 1,302,614 8.7

 1-4 Family residential mortgages 431,165 426,107 391,151 10.2

 Nonfarm nonresidential 567,679 569,803 533,802 6.3

 Construction and development 152,441 150,768 133,911 13.8

 Home equity lines 43,454 43,904 39,886 8.9

 Commercial & industrial loans 237,364 240,589 234,668 1.1

 Loans to individuals 83,839 80,240 67,951 23.4

 Credit cards 2,721 2,740 2,197 23.9

 Farm loans 43,412 48,071 42,195 2.9

 Other loans & leases 46,943 47,283 47,809 -1.8

 Less: Unearned income 685 758 716 -4.3

 Total loans & leases 1,827,203 1,825,680 1,694,521 7.8

 Less: Reserve for losses* 22,568 22,095 21,800 3.5

 Net loans and leases 1,804,635 1,803,584 1,672,721 7.9

 Securities** 586,188 599,532 619,174 -5.3

 Other real estate owned 784 790 1,058 -25.9

 Goodwill and other intangibles 18,059 18,582 19,306 -6.5

 All other assets 305,410 289,233 422,027 -27.6

Total liabilities and capital 2,715,076 2,711,722 2,734,287 -0.7

 Deposits 2,287,430 2,303,513 2,370,921 -3.5

 Domestic office deposits 2,286,704 2,302,835 2,368,109 -3.4

 Foreign office deposits 726 677 2,812 -74.2

 Brokered deposits 105,622 84,442 51,416 105.4

 Other borrowed funds 144,143 130,734 72,931 97.6

 Subordinated debt 315 320 283 11.1

 All other liabilities 25,623 25,492 22,222 15.3

 Total equity capital (includes minority interests) 257,565 251,663 267,928 -3.9

 Bank equity capital 257,439 251,534 267,797 -3.9

Loans and leases 30-89 days past due 6,744 6,507 6,193 8.9

Noncurrent loans and leases 8,270 8,057 9,255 -10.6

Restructured loans and leases 2,760 3,957 4,289 -35.7

Mortgage-backed securities 238,895 243,422 270,828 -11.8

Earning assets 2,543,822 2,534,038 2,564,897 -0.8

FHLB Advances 109,435 103,488 48,908 123.8

Unused loan commitments 422,356 427,129 417,011 1.3

Trust assets 301,038 350,255 331,122 -9.1

Assets securitized and sold 25,473 26,348 25,434 0.2

Notional amount of derivatives 112,920 103,647 123,507 -8.6

INCOME DATA

Full Year 

2022

Full Year 

2021 % Change

1st Quarter 

2023

1st Quarter 

2022

% Change 

22Q1-23Q1

Total interest income $96,349 $88,251 9.2 $29,727 $21,478 38.4

Total interest expense 11,147 7,655 45.6 7,706 1,552 396.4

 Net interest income 85,202 80,596 5.7 22,021 19,926 10.5

Provision for credit losses*** 2,583 1,091 136.7 768 304 153.0

Total noninterest income 19,920 24,900 -20.0 4,570 5,316 -14.0

Total noninterest expense 64,899 64,973 -0.1 16,805 16,256 3.4

Securities gains (losses) -789 845 -193.4 -443 -95 364.8

Applicable income taxes 6,495 7,342 -11.5 1,556 1,550 0.4

Extraordinary gains, net**** 23 30 N/M 4 0 N/M

 Total net income (includes minority interests) 30,379 32,964 -7.8 7,024 7,037 -0.2

 Bank net income 30,370 32,936 -7.8 7,022 7,033 -0.2

Net charge-offs 1,114 1,097 1.6 419 131 219.3

Cash dividends 12,369 14,072 -12.1 2,881 2,958 -2.6

Retained earnings 18,000 18,864 -4.6 4,142 4,076 1.6

 Net operating income 31,032 32,230 -3.7 7,436 7,119 4.5

* 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 2023 VOLUME 17, NUMBER 2

27 

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)

1st Quarter 

2023

4th Quarter 

2022

1st Quarter 

2022

% Change 

22Q1-23Q1

Number of institutions reporting 4,230 4,229 4,217 0.3

Total employees (full-time equivalent) 372,778 371,862 369,686 0.8

CONDITION DATA

Total assets $2,715,076 $2,682,163 $2,595,747 4.6

 Loans secured by real estate 1,416,330 1,386,136 1,221,418 16.0

 1-4 Family residential mortgages 431,165 421,786 368,077 17.1

 Nonfarm nonresidential 567,679 556,725 500,456 13.4

 Construction and development 152,441 147,602 124,067 22.9

 Home equity lines 43,454 43,098 37,405 16.2

 Commercial & industrial loans 237,364 235,712 218,440 8.7

 Loans to individuals 83,839 79,952 65,032 28.9

 Credit cards 2,721 2,736 1,986 37.0

 Farm loans 43,412 47,925 41,426 4.8

 Other loans & leases 46,943 46,066 43,087 8.9

 Less: Unearned income 685 726 639 7.2

 Total loans & leases 1,827,203 1,795,064 1,588,763 15.0

 Less: Reserve for losses* 22,568 21,717 20,590 9.6

 Net loans and leases 1,804,635 1,773,347 1,568,173 15.1

 Securities** 586,188 598,085 607,693 -3.5

 Other real estate owned 784 779 1,015 -22.7

 Goodwill and other intangibles 18,059 17,970 16,883 7.0

 All other assets 305,410 291,983 401,983 -24.0

Total liabilities and capital 2,715,076 2,682,163 2,595,747 4.6

 Deposits 2,287,430 2,277,087 2,252,299 1.6

 Domestic office deposits 2,286,704 2,276,409 2,251,551 1.6

 Foreign office deposits 726 677 748 -2.9

 Brokered deposits 105,622 84,123 40,920 158.1

 Other borrowed funds 144,143 132,202 69,065 108.7

 Subordinated debt 315 320 245 28.4

 All other liabilities 25,623 24,928 20,218 26.7

 Total equity capital (includes minority interests) 257,565 247,627 253,918 1.4

 Bank equity capital 257,439 247,501 253,796 1.4

Loans and leases 30-89 days past due 6,744 6,444 5,869 14.9

Noncurrent loans and leases 8,270 7,966 8,726 -5.2

Restructured loans and leases 2,760 3,850 4,079 -32.3

Mortgage-backed securities 238,895 242,579 260,382 -8.3

Earning assets 2,543,822 2,506,722 2,436,991 4.4

FHLB Advances 109,435 105,571 45,799 138.9

Unused loan commitments 422,356 418,631 389,438 8.5

Trust assets 301,038 350,703 313,938 -4.1

Assets securitized and sold 25,473 26,348 25,369 0.4

Notional amount of derivatives 112,920 101,353 103,202 9.4

INCOME DATA

Full Year 

2022

Full Year 

2021 % Change

1st Quarter 

2023

1st Quarter 

 2022

% Change 

22Q1-23Q1

Total interest income $95,065 $81,669 16.4 $29,727 $20,282 46.6

Total interest expense 11,011 7,123 54.6 7,706 1,458 428.5

 Net interest income 84,054 74,546 12.8 22,021 18,824 17.0

Provision for credit losses*** 2,519 1,195 110.9 768 291 163.6

Total noninterest income 19,768 23,570 -16.1 4,570 5,136 -11.0

Total noninterest expense 64,045 61,106 4.8 16,805 15,465 8.7

Securities gains (losses) -1,689 816 -307.1 -443 -157 182.2

Applicable income taxes 6,388 6,519 -2.0 1,556 1,425 9.2

Extraordinary gains, net**** 23 8 N/M 4 0 N/M

 Total net income (includes minority interests) 29,204 30,120 -3.0 7,024 6,622 6.1

 Bank net income 29,195 30,098 -3.0 7,022 6,618 6.1

Net charge-offs 1,091 965 13.1 419 117 256.6

Cash dividends 12,044 13,004 -7.4 2,881 2,808 2.6

Retained earnings 17,151 17,093 0.3 4,142 3,810 8.7

 Net operating income 30,754 29,430 4.5 7,436 6,752 10.1

* 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 2023 VOLUME 17, NUMBER 2

28 

Table III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks

First Quarter 2023

(dollar figures in millions) All Community 

Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 4,230 461 476 931 1,148 956 258

Total employees (full-time equivalent) 372,778 72,685 39,107 77,451 71,354 82,018 30,163

CONDITION DATA

Total assets $2,715,076 $642,979 $288,611 $507,723 $495,943 $529,303 $250,516

 Loans secured by real estate 1,416,330 381,233 149,996 257,635 242,069 262,178 123,218

 1-4 Family residential mortgages 431,165 141,233 44,164 74,267 69,034 75,597 26,869

 Nonfarm nonresidential 567,679 141,479 68,875 101,496 84,716 109,891 61,223

 Construction and development 152,441 26,716 18,587 24,002 26,489 45,633 11,015

 Home equity lines 43,454 11,035 5,765 10,597 5,556 5,396 5,106

 Commercial & industrial loans 237,364 48,041 23,458 51,088 50,153 47,260 17,364

 Loans to individuals 83,839 18,593 7,378 13,767 13,404 13,432 17,266

 Credit cards 2,721 398 113 188 980 254 789

 Farm loans 43,412 556 1,274 7,231 24,918 7,071 2,363

 Other loans & leases 46,943 14,142 3,030 11,236 7,946 7,658 2,930

 Less: Unearned income 685 67 97 72 130 187 133

 Total loans & leases 1,827,203 462,499 185,039 340,884 338,360 337,413 163,008

 Less: Reserve for losses** 22,568 4,772 2,284 4,275 4,448 4,481 2,308

 Net loans and leases 1,804,635 457,727 182,755 336,609 333,911 332,932 160,700

 Securities*** 586,188 115,730 65,631 115,043 109,644 125,786 54,354

 Other real estate owned 784 140 106 150 186 164 39

 Goodwill and other intangibles 18,059 4,538 854 4,429 3,470 3,632 1,137

 All other assets 305,410 64,845 39,265 51,492 48,732 66,790 34,287

Total liabilities and capital 2,715,076 642,979 288,611 507,723 495,943 529,303 250,516

 Deposits 2,287,430 527,116 250,227 427,446 418,885 456,492 207,263

 Domestic office deposits 2,286,704 526,415 250,226 427,446 418,885 456,492 207,239

 Foreign office deposits 726 701 1 0 0 0 24

 Brokered deposits 105,622 35,559 11,070 19,190 16,991 13,175 9,636

 Other borrowed funds 144,143 43,906 10,279 28,398 27,368 19,465 14,727

 Subordinated debt 315 148 0 16 1 139 10

 All other liabilities 25,623 8,307 2,540 4,014 3,904 3,804 3,054

 Total equity capital (includes minority interests) 257,565 63,501 25,564 47,849 45,785 49,403 25,462

 Bank equity capital 257,439 63,476 25,566 47,758 45,784 49,393 25,461

Loans and leases 30-89 days past due 6,744 1,487 703 1,110 1,264 1,734 447

Noncurrent loans and leases 8,270 2,384 615 1,598 1,330 1,731 611

Restructured loans and leases 2,760 712 246 723 483 439 157

Mortgage-backed securities 238,895 59,523 29,561 42,445 35,900 46,062 25,404

Earning assets 2,543,822 602,701 270,600 474,255 465,322 494,859 236,086

FHLB Advances 109,435 38,127 8,424 22,098 19,370 13,568 7,848

Unused loan commitments 422,356 90,327 38,565 84,347 91,750 79,130 38,237

Trust assets 301,038 55,885 11,124 67,608 122,681 34,822 8,918

Assets securitized and sold 25,473 10,820 10 3,926 5,585 4,613 519

Notional amount of derivatives 112,920 42,605 13,456 15,399 24,107 8,920 8,433

INCOME DATA

Total interest income $29,727 $6,847 $3,183 $5,402 $5,321 $6,011 $2,965

Total interest expense 7,706 2,079 735 1,382 1,466 1,377 668

 Net interest income 22,021 4,768 2,448 4,020 3,855 4,633 2,297

Provision for credit losses  768 131 81 116 116 151 173

Total noninterest income 4,570 871 426 1,030 934 900 407

Total noninterest expense 16,805 3,665 1,748 3,091 3,040 3,381 1,880

Securities gains (losses) -443 -27 -20 -73 -16 -34 -272

Applicable income taxes 1,556 406 194 309 204 230 213

Extraordinary gains, net** *** 4 -1 9 0 -4 0 0

 Total net income (includes minority interests) 7,024 1,409 840 1,462 1,410 1,738 165

 Bank net income 7,022 1,409 840 1,461 1,410 1,737 165

Net charge-offs 419 92 28 31 65 58 145

Cash dividends 2,881 493 219 676 611 638 244

Retained earnings 4,142 916 621 785 798 1,099 -79

 Net operating income 7,436 1,434 848 1,523 1,428 1,767 435

* See Table IV-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 2023 VOLUME 17, NUMBER 2

29 

Table IV-B. First Quarter 2023, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks First Quarter 2023, Geographic Regions*

1st Quarter 

 2023

4th Quarter 

2022 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.71 4.53 4.59 4.76 4.59 4.61 4.90 5.02

Cost of funding earning assets 1.22 0.82 1.39 1.10 1.17 1.27 1.12 1.13

 Net interest margin 3.49 3.71 3.19 3.66 3.42 3.34 3.78 3.89

Noninterest income to assets 0.68 0.72 0.55 0.60 0.82 0.76 0.69 0.65

Noninterest expense to assets 2.49 2.56 2.30 2.45 2.45 2.46 2.58 2.99

Loan and lease loss provision to assets 0.11 0.14 0.08 0.11 0.09 0.09 0.12 0.28

Net operating income to assets 1.10 1.23 0.90 1.19 1.21 1.16 1.35 0.69

Pretax return on assets 1.27 1.48 1.14 1.45 1.40 1.31 1.50 0.60

Return on assets 1.04 1.23 0.88 1.18 1.16 1.14 1.32 0.26

Return on equity 11.13 13.42 9.01 13.50 12.53 12.57 14.39 2.63

Net charge-offs to loans and leases 0.09 0.11 0.08 0.06 0.04 0.08 0.07 0.36

Loan and lease loss provision to net 

charge-offs 167.36 186.55 125.59 262.70 339.74 153.49 237.24 117.34

Efficiency ratio 62.83 60.65 64.72 60.39 60.77 63.04 60.70 69.31

Net interest income to operating revenue 82.81 82.74 84.55 85.19 79.60 80.49 83.73 84.93

% of unprofitable institutions 4.37 5.85 6.29 5.88 4.30 3.05 3.24 8.53

% of institutions with earnings gains 67.42 70.43 55.75 77.31 64.98 67.86 70.08 67.05

*See Table IV-A for explanation. 

Table V-B. Full Year 2022, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks Full Year 2022, Geographic Regions*

Full Year

2022

Full Year 

2021 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 3.90 3.59 3.85 3.89 3.77 3.87 4.07 4.00

Cost of funding earning assets 0.45 0.31 0.51 0.39 0.44 0.51 0.41 0.35

 Net interest margin 3.45 3.28 3.33 3.49 3.33 3.36 3.66 3.65

Noninterest income to assets 0.76 0.95 0.58 0.64 0.97 0.80 0.76 0.83

Noninterest expense to assets 2.46 2.48 2.31 2.44 2.45 2.44 2.56 2.74

Loan and lease loss provision to assets 0.10 0.04 0.10 0.10 0.07 0.09 0.12 0.13

Net operating income to assets 1.18 1.23 1.00 1.12 1.28 1.23 1.33 1.07

Pretax return on assets 1.40 1.54 1.23 1.35 1.54 1.41 1.49 1.38

Return on assets 1.15 1.26 0.95 1.10 1.27 1.21 1.32 1.06

Return on equity 12.00 11.70 9.38 12.22 13.33 12.93 14.11 10.41

Net charge-offs to loans and leases 0.07 0.07 0.08 0.05 0.04 0.07 0.07 0.09

Loan and lease loss provision to net 

charge-offs 227.00 99.95 173.13 298.36 270.40 193.09 278.38 254.90

Efficiency ratio 61.37 61.21 62.06 61.90 59.64 61.22 60.89 63.94

Net interest income to operating revenue 81.05 76.40 84.38 83.59 76.35 79.85 81.83 80.51

% of unprofitable institutions 3.52 3.26 5.54 5.43 3.41 1.91 2.60 7.39

% of institutions with earnings gains 55.94 74.72 59.70 71.40 53.46 42.46 65.52 54.09

*See Table IV-A for explanation. 
QUARTERLY 2023 VOLUME 17, NUMBER 2

30 

Table VI-B. Loan Performance, FDIC-Insured Community Banks

All Community 

Banks

Geographic Regions*

March 31, 2023 New York Atlanta Chicago Kansas City Dallas San Francisco

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.31 0.26 0.33 0.33 0.32 0.41 0.18

 Construction and development 0.34 0.25 0.27 0.32 0.40 0.40 0.28

 Nonfarm nonresidential 0.21 0.23 0.21 0.20 0.22 0.25 0.09

 Multifamily residential real estate 0.09 0.10 0.05 0.13 0.08 0.07 0.04

 Home equity loans 0.41 0.41 0.40 0.41 0.33 0.44 0.52

 Other 1-4 family residential 0.48 0.35 0.58 0.57 0.43 0.67 0.32

Commercial and industrial loans 0.41 0.37 0.49 0.29 0.40 0.53 0.46

Loans to individuals 1.22 1.54 1.04 0.63 1.05 2.40 0.66

 Credit card loans 3.26 2.08 1.28 0.87 5.11 0.88 3.19

 Other loans to individuals 1.16 1.52 1.04 0.62 0.73 2.43 0.54

All other loans and leases (including farm) 0.35 0.12 0.33 0.17 0.46 0.55 0.49

Total loans and leases 0.37 0.32 0.38 0.33 0.37 0.51 0.27

Percent of Loans Noncurrent

All loans secured by real estate 0.42 0.48 0.31 0.49 0.36 0.42 0.29

 Construction and development 0.26 0.41 0.14 0.29 0.35 0.16 0.29

 Nonfarm nonresidential 0.41 0.47 0.32 0.55 0.35 0.42 0.22

 Multifamily residential real estate 0.22 0.27 0.09 0.29 0.17 0.12 0.11

 Home equity loans 0.39 0.48 0.22 0.30 0.35 0.32 0.65

 Other 1-4 family residential 0.49 0.58 0.40 0.53 0.32 0.55 0.35

Commercial and industrial loans 0.69 0.89 0.49 0.50 0.58 0.84 0.81

Loans to individuals 0.51 0.50 0.34 0.25 0.45 1.15 0.36

 Credit card loans 2.41 1.53 0.53 0.59 2.51 0.67 3.99

 Other loans to individuals 0.45 0.48 0.34 0.24 0.29 1.16 0.19

All other loans and leases (including farm) 0.34 0.13 0.32 0.22 0.36 0.44 1.05

Total loans and leases 0.45 0.52 0.33 0.47 0.39 0.51 0.37

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.01 0.00 -0.01 0.01 0.01 0.00 0.05

 Construction and development -0.01 -0.02 -0.01 0.00 -0.01 0.00 0.00

 Nonfarm nonresidential 0.02 0.02 0.00 0.01 0.01 0.01 0.06

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

 Home equity loans 0.00 -0.04 -0.02 -0.02 0.00 0.00 0.14

 Other 1-4 family residential 0.00 0.00 -0.01 0.00 0.00 0.00 0.07

Commercial and industrial loans 0.22 0.25 0.12 0.10 0.07 0.06 1.43

Loans to individuals 1.20 1.18 1.05 0.34 1.56 1.36 1.63

 Credit card loans 9.93 4.30 1.67 1.25 16.20 1.66 10.73

 Other loans to individuals 0.90 1.11 1.04 0.32 0.37 1.35 1.16

All other loans and leases (including farm) 0.08 0.13 0.55 0.06 0.01 0.05 0.24

Total loans and leases 0.09 0.08 0.06 0.04 0.08 0.07 0.36

Loans Outstanding (in billions)

All real estate loans $1,416.3 $381.2 $150.0 $257.6 $242.1 $262.2 $123.2

 Construction and development 152.4 26.7 18.6 24.0 26.5 45.6 11.0

 Nonfarm nonresidential 567.7 141.5 68.9 101.5 84.7 109.9 61.2

 Multifamily residential real estate 136.7 58.3 8.0 27.7 17.7 9.5 15.5

 Home equity loans 43.5 11.0 5.8 10.6 5.6 5.4 5.1

 Other 1-4 family residential 431.2 141.2 44.2 74.3 69.0 75.6 26.9

Commercial and industrial loans 237.4 48.0 23.5 51.1 50.2 47.3 17.4

Loans to individuals 83.8 18.6 7.4 13.8 13.4 13.4 17.3

 Credit card loans 2.7 0.4 0.1 0.2 1.0 0.3 0.8

 Other loans to individuals 81.1 18.2 7.3 13.6 12.4 13.2 16.5

All other loans and leases (including farm) 90.4 14.7 4.3 18.5 32.9 14.7 5.3

Total loans and leases (plus unearned income) 1,827.9 462.6 185.1 341.0 338.5 337.6 163.1

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 422,356 90,327 38,565 84,347 91,750 79,130 38,237

 Construction and development: 1-4 family 

 residential 35,408 5,949 5,157 4,129 5,463 12,129 2,581

 Construction and development: CRE and other 99,923 22,013 10,037 18,604 17,790 24,355 7,124

 Commercial and industrial 126,588 28,554 10,036 29,586 25,923 21,371 11,118

* See Table IV-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 2023 VOLUME 17, NUMBER 2

31 

INSURANCE FUND INDICATORS

Two Institutions Fail During the First Quarter

Deposit Insurance Fund Decreases by $12.1 Billion

DIF Reserve Ratio Falls 14 Basis Points, Ends First Quarter at 1.11 Percent

During the first quarter, the Deposit Insurance Fund (DIF) balance 

decreased by $12.1 billion to $116.1 billion. The vast majority of the 

decline in the DIF was for loss provisions, which subtracted $16.4 

billion from the DIF, driven by the failure of two banks and amounts 

set aside for the anticipated failure of First Republic Bank. The decline 

in the DIF balance does not include the cost of covering uninsured 

deposits pursuant to the systemic risk determination made for two 

banks that failed in March 2023. The FDIC is required by statute to 

recover those losses through special assessments, offsetting the losses 

associated with protecting uninsured depositors and eliminating any 

effect on the DIF balance and reserve ratio. Other costs included a $1.7 

billion realized loss on the sale of investments and $508 million in 

operating expenses. Assessment revenue of $3.3 billion was the largest 

source of income. A net decrease in unrealized losses on available-forsale securities of $2.5 billion, interest earned on investments of $661 

million, and other miscellaneous income of $12 million also partially 

offset the decline in the fund balance. 

The deposit insurance assessment base—average consolidated total 

assets minus average tangible equity—decreased by 1.4 percent in the 

first quarter and fell by 1.3 percent over the last 12 months.1,2 

Total estimated insured deposits increased by 2.5 percent in the first 

quarter of 2023 and increased by 3.1 percent year over year. The DIF’s 

reserve ratio (the fund balance as a percent of insured deposits) was 

1.11 percent on March 31, 2023, down 14 basis points from the previous 

quarter and 10 basis points lower than the previous year. Prior quarters 

were impacted by significant revisions to insured deposits reported by 

the industry.

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.
QUARTERLY 2023 VOLUME 17, NUMBER 2

32 

The FDIC adopted a DIF Restoration Plan on September 15, 2020, that 

would return the reserve ratio to 1.35 percent, the statutory minimum, 

by September 2028 as required by law. In spite of recent stress in the 

banking industry, the reserve ratio currently remains on track to 

reach 1.35 percent by the statutory deadline. The FDIC will continue to 

monitor factors affecting the reserve ratio, including but not limited to, 

insured deposit growth and potential losses due to bank failures and 

related reserves as required under the current Restoration Plan.

Author:

Charles James

Financial Economist

Division of Insurance and Research
QUARTERLY 2023 VOLUME 17, NUMBER 2

33 

Table I-C. Insurance Fund Balances and Selected Indicators* 

 Deposit Insurance Fund**

(dollar figures in millions)

 1st 

Quarter 

2023

4th 

Quarter 

2022

3rd 

Quarter 

2022

 2nd 

Quarter 

2022

 1st 

Quarter 

2022

4th 

Quarter

 2021

 3rd 

Quarter 

2021

 2nd 

Quarter 

2021

 1st 

Quarter 

2021

 4th 

Quarter 

2020

 3rd 

Quarter 

2020

 2nd 

Quarter 

2020

 1st 

Quarter 

2020

Beginning Fund Balance $128,218 $125,457 $124,458 $123,039 $123,141 $121,935 $120,547 $119,362 $117,897 $116,434 $114,651 $113,206 $110,347

Changes in Fund Balance:

Assessments earned 3,306 2,142 2,145 2,086 1,938 1,967 1,662 1,589 1,862 1,884 2,047 1,790 1,372

Interest earned on investment 

securities 661 498 332 225 191 197 221 251 284 330 392 454 507

Realized gain on sale of 

investments -1,666 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 508 515 456 460 453 475 448 466 454 470 451 465 460

Provision for insurance losses 16,402 -48 -49 -86 100 8 -53 -42 -57 -48 -74 -47 12

All other income, net of 

expenses 12 114 6 29 8 61 65 2 1 9 5 2 2

Unrealized gain/(loss) on 

available-for-sale securities*** 2,450 474 -1,077 -547 -1,686 -536 -165 -233 -285 -338 -284 -383 1,450

Total fund balance change -12,147 2,761 999 1,419 -102 1,206 1,388 1,185 1,465 1,463 1,783 1,445 2,859

Ending Fund Balance 116,071 128,218 125,457 124,458 123,039 123,141 121,935 120,547 119,362 117,897 116,434 114,651 113,206

Percent change from four 

quarters earlier -5.66 4.12 2.89 3.24 3.08 4.45 4.72 5.14 5.44 6.84 6.88 6.71 7.95

Reserve Ratio (%) 1.11 1.25 1.24 1.23 1.21 1.24 1.25 1.27 1.25 1.29 1.31 1.30 1.38

Estimated Insured Deposits 10,480,533 10,224,399 10,146,846 10,110,979 10,169,251 9,932,314 9,764,250 9,487,834 9,512,792 9,122,542 8,920,927 8,834,894 8,175,568

 Percent change from four 

quarters earlier 3.06 2.94 3.92 6.57 6.90 8.88 9.45 7.39 16.36 16.79 15.40 14.95 6.30

 Percent of Total Deposit 

Liabilites After Exclusions 58.64 55.93 55.14 54.51 53.88 53.14 53.81 53.68 54.56 54.36 55.14 55.21 55.32

Estimated Uninsured 

Deposits 7,391,235 8,057,715 8,254,299 8,436,963 8,703,725 8,756,907 8,380,722 8,187,867 7,921,356 7,659,451 7,258,145 7,168,231 6,602,736

Percent change from four 

quarters earlier -15.08 -7.98 -1.51 3.04 9.88 14.33 15.47 14.22 19.97 30.42 27.30 30.51 22.09

Percent of Total Deposit 

Liabilites After Exclusions 41.36 44.07 44.86 45.49 46.12 46.86 46.19 46.32 45.44 45.64 44.86 44.79 44.68

Total Deposit Liabilities 

After Exclusions  17,871,768 18,282,114 18,401,145 18,547,941 18,872,976 18,689,222 18,144,972 17,675,701 17,434,148 16,781,993 16,179,071 16,003,125 14,778,304

Percent change from four 

quarters earlier -5.30 -2.18 1.41 4.93 8.25 11.36 12.15 10.45 17.97 22.64 20.46 21.43 12.82

Assessment Base** *** 20,679,188 20,976,743 20,990,194 21,026,237 20,942,714 20,686,127 20,131,363 19,780,295 19,313,207 18,909,427 18,575,121 18,267,307 16,589,826

Percent change from four 

quarters earlier -1.26 1.40 4.27 6.30 8.44 9.40 8.38 8.28 16.42 16.23 15.93 15.71 5.90

Number of Institutions 

Reporting 4,681 4,715 4,755 4,780 4,805 4,848 4,923 4,959 4,987 5,011 5,042 5,075 5,125

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2023****** 2022****** 2022 2021 2020 2019 2018 2017

Problem Institutions

 Number of institutions 43 40 39 44 56 51 60 95

 Total assets******* $57,993 $173,078 $47,463 $170,172 $55,830 $46,190 $48,481 $13,939

Failed Institutions

 Number of institutions 2 0 0 0 4 4 0 8

 Total assets******** $319,390 $0 $0 $0 $455 $209 $0 $5,082

* Includes insured branches of foreign banks (IBAs) and any revisions to prior quarter data.

** Quarterly financial statement results are unaudited.

*** Includes unrealized postretirement benefit gain (loss).

  Does not equal total deposits and domestic office deposits in the tables above due to adjustments to align with the determination of deposit insurance coverage in the event of a bank 

failure.

** *** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

****** Through March 31.

******* Assets shown are what were on record as of the last day of the quarter.

******** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY 2023 VOLUME 17, NUMBER 2

34 

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

3/20 $113,206 $8,175,568

6/20 114,651 8,834,894

9/20 116,434 8,920,927

12/20 117,897 9,122,542

3/21 119,362 9,512,792

6/21 120,547 9,487,834

9/21 121,935 9,764,250

12/21 123,141 9,932,314

3/22 123,039 10,169,251

6/22 124,458 10,110,979

9/22 125,457 10,146,846

12/22 128,218 10,224,399

3/23 116,071 10,480,533

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions)

March 31, 2023

Number of

Institutions

Total

Assets

Domestic

Deposits*

Est. Insured

Deposits

Commercial Banks and Savings Institutions

 FDIC-Insured Commercial Banks 4,096 $22,431,267 $16,260,589 $9,569,624

 FDIC-Supervised 2,718 4,128,509 3,196,593 2,119,889

 OCC-Supervised 716 14,914,569 10,623,349 6,093,033

 Federal Reserve-Supervised 662 3,388,189 2,440,647 1,356,702

 FDIC-Insured Savings Institutions 576 1,288,280 1,043,376 866,119

 OCC-Supervised 251 549,184 435,777 370,398

 FDIC-Supervised 288 307,428 247,347 188,837

 Federal Reserve-Supervised 37 431,668 360,252 306,883

Total Commercial Banks and Savings Institutions 4,672 23,719,547 17,303,965 10,435,742

Other FDIC-Insured Institutions

 U.S. Branches of Foreign Banks 9 95,818 50,580 44,791

Total FDIC-Insured Institutions 4,681 23,815,365 17,354,545 10,480,533

* 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 December 31, 2022 (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 2,853 60.5 $6,941.9 33.09

3.01 - 6.00 1,328 28.2 12,371.0 58.97

6.01 - 10.00 440 9.3 1,528.7 7.29

10.01 - 15.00 49 1.0 118.1 0.56

15.01 - 20.00 45 1.0 17.0 0.08

20.01 - 25.00 0 0.0 0.0 0.00

> 25.00 0 0.0 0.0 0.00

* Values do not reflect updates to assessment rates which took effect starting January 1, 2023.

DIF Reserve Ratios

Percent of Insured Deposits

1.38

1.30 1.31 1.29 1.25 1.27 1.25 1.24 1.21 1.23 1.24 1.25

1.11

3/20 6/20 9/20 12/20 3/21 6/21 9/21 12/21 3/22 6/22 9/22 12/22 3/23
QUARTERLY 2023 VOLUME 17, NUMBER 2

35 

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: https://www.fdic.gov/resources/

community-banking/cbi-study.html.

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 
QUARTERLY 2023 VOLUME 17, NUMBER 2

36 

offices, banks must have more than one office, and the maximum number of 

offices is 40 in 1985 and reached 104 in 2023. The maximum level of deposits 

for any one office is $1.25 billion in deposits in 1985 and reached $10.28 billion 

in deposits in 2023. 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 

$2.06 billion in 2023. 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

— Assets held in foreign branches ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum number of 

offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch deposit size.4

TABLES I-C THROUGH IV-C. A separate set of tables (Tables I-C through IV-C) provides comparative 

quarterly data related to the Deposit Insurance Fund (DIF), problem 

institutions, failed institutions, estimated FDIC-insured deposits, as well as 

assessment rate information. Depository institutions that are not insured 

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

1 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 $2.06 billion in 2023.

3 Maximum number of offices indexed to equal 40 in 1985 and 104 in 2023.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $10.28 billion in 2023.
QUARTERLY 2023 VOLUME 17, NUMBER 2

37 

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

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

of the acquired institution(s) are included in average assets, since the yearto-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.
QUARTERLY 2023 VOLUME 17, NUMBER 2

38 

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 periodto-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/2023/fil23011.html

https://www.fdic.gov/resources/bankers/call-reports/index.html

Further information on changes in financial statement presentation, income 

recognition and disclosure is available from the FASB. 

https://www.fasb.org/page/index?pageId=standards/index.html

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 

(except new 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.

Initial rates for small institutions are subject to minimums and maximums 

based on an institution’s CAMELS composite rating.

The current assessment rate schedule became effective January 1, 2023. Under 

the current schedule, initial base assessment rates range from 5 to 32 basis 

points. An institution’s total base assessment rate 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 
QUARTERLY 2023 VOLUME 17, NUMBER 2

39 

example, an institution with an IBAR of 5 basis points would have a maximum 

unsecured debt adjustment of 2.5 basis points and could not have a total base 

assessment rate lower than 2.5 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 January 1, 2023, 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 5 to 18 8 to 32 18 to 32 5 to 32

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 2.5 to 18 4 to 32 13 to 32 2.5 to 42

* 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.

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 
QUARTERLY 2023 VOLUME 17, NUMBER 2

40 

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 specified period. The cash 

flows of a swap are either fixed, or determined for each settlement date by 

multiplying the quantity (notional principal) of the underlying variable or 

index by specified reference rates or prices. Except for currency swaps, the 

notional principal is used to calculate each payment but is not exchanged.
QUARTERLY 2023 VOLUME 17, NUMBER 2

41 

Derivatives underlying risk exposure – the potential exposure characterized 

by the level of banks’ concentration in particular underlying instruments, in 

general. Exposure can result from market risk, credit risk, and operational risk, 

as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as a percent 

of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or dividend 

income.

Efficiency ratio – noninterest expense less amortization of intangible assets as 

a percent of net interest income plus noninterest income. This ratio measures 

the proportion of net operating revenues that are absorbed by overhead 

expenses, so that a lower value indicates greater efficiency.

Estimated insured deposits – in general, insured deposits are total domestic 

deposits minus estimated uninsured deposits. Beginning March 31, 2008, for 

institutions that file Call Reports, insured deposits are total assessable deposits 

minus estimated uninsured deposits. Beginning September 30, 2009, insured 

deposits include deposits in accounts of $100,000 to $250,000 that are covered 

by a temporary increase in the FDIC’s standard maximum deposit insurance 

amount (SMDIA). The Dodd-Frank Wall Street Reform and Consumer Protection 

Act enacted on July 21, 2010, made permanent the standard maximum deposit 

insurance amount (SMDIA) of $250,000. Also, the Dodd-Frank Act amended 

the Federal Deposit Insurance Act to include noninterest-bearing transaction 

accounts as a new temporary deposit insurance account category. All funds held 

in noninterest-bearing transaction accounts were fully insured, without limit, 

from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators take 

control of the institution, placing the assets and liabilities into a bridge bank, 

conservatorship, receivership, or another healthy institution. This action may 

require the FDIC to provide funds to cover losses. An institution is defined as 

“assisted” when the institution remains open and receives assistance in order 

to continue operating.

Fair Value – the valuation of various assets and liabilities on the balance 

sheet—including trading assets and liabilities, available-for-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.

Liquidity ratio – liquid assets to total assets. Liquid assets include cash, federal 

funds sold, and securities including unrealized gains/losses on held-to-maturity 

securities less pledged securities. 
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Loans secured by real estate – includes home equity loans, junior liens secured 

by 1-4 family residential properties, and all other loans secured by real estate.

Loans to individuals – includes outstanding credit card balances and other 

secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining 

maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit exposure 

remaining under recourse arrangements and other seller-provided credit 

enhancements provided by the reporting bank to securitizations.

Mortgage-backed securities – certificates of participation in pools of 

residential mortgages and collateralized mortgage obligations issued or 

guaranteed by government-sponsored or private enterprises. Also, see 

“Securities,” below.

Net charge-offs – total loans and leases charged off (removed from balance 

sheet because of 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.)
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43 

Percent of institutions with earnings gains – the percent of institutions that 

increased their net income (or decreased their losses) compared to the same 

period a year earlier.

“Problem” institutions – federal regulators assign a composite rating to each 

financial institution, based upon an evaluation of financial and operational 

criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory 

concern. “Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their continued financial 

viability. Depending upon the degree of risk and supervisory concern, they are 

rated either a “4” or “5.” The number and assets of “problem” institutions are 

based on FDIC composite ratings. Prior to March 31, 2008, for institutions whose 

primary federal regulator was the OTS, the OTS composite rating was used.

Recourse – an arrangement in which a bank retains, in form or in substance, 

any credit risk directly or indirectly associated with an asset it has sold (in 

accordance with generally accepted accounting principles) that exceeds a pro 

rata share of the bank’s claim on the asset. If a bank has no claim on an asset it 

has sold, then the retention of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a consolidated 

basis.

Restructured loans and leases – loan and lease financing receivables with 

terms restructured from the original contract. Excludes restructured loans and 

leases that are not in compliance with the modified terms.

Retained earnings – net income less cash dividends on common and preferred 

stock for the reporting period.

Return on assets – bank net income (including gains or losses on securities and 

extraordinary items) as a percentage of average total (consolidated) assets. The 

basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on securities and 

extraordinary items) as a percentage of average total equity capital.

Risk-weighted assets – assets adjusted for risk-based capital definitions which 

include on-balance-sheet as well as off-balance-sheet items multiplied by 

risk-weights that range from zero to 200 percent. A conversion factor is used 

to assign a balance sheet equivalent amount for selected off-balance-sheet 

accounts.

Securities – excludes securities held in trading accounts. Banks’ securities 

portfolios consist of securities designated as “held-to-maturity” (reported 

at amortized cost (book value)), securities designated as “available-forsale” (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-to-maturity and 

available-for-sale securities, before adjustments for income taxes. Thrift 

Financial Report (TFR) filers also include gains (losses) on the sales of assets 

held for sale. (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 
QUARTERLY 2023 VOLUME 17, NUMBER 2

44 

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 passthrough 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.