Quarterly Banking Profile
 

THIRD QUARTER 2005 

� Strong Growth In Noninterest Income Propels Industry Profits To New Record 

� Higher Trading Revenue, Servicing Income Outweigh Rise In Credit Expenses 

�	 Stable Net Interest Margins And Continued Loan Growth Lift Net Interest 

Income 

� Rising Interest Rates Translate Into Lower Gains On Securities Sales 

� Number Of “Problem” Institutions Declines To New Low 

Chart 1	 Chart 2 

The Three Best Earnings Quarters Have	 Margins Were Flat at Large Institutions 

All Come in 2005	 in the Third Quarter 

Net Interest Margin (%) $ Billions 

Securities and Other Gains/Losses, Net 

3.00 

3.50 

4.00 

4.50 

5.00 

4.17 

4.33 

4.07 

4.25 

3.67 

4.06 

3.48 

3.49 

Assets > $100 Million 

Assets < $100 Million 

Net Operating Income (Billions) 

34.6 34.2 33.2 31.8 31.2 32.4 31.2 29.5 30.2 30.4 31.0 

30 27.2 27.3 25.4 25.3 

22.7 22.4 20.9 21.9 

20 

10 

0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 

Rebound in trading income at large banks lifts industry 

earnings 

Higher income from trading activities at a few large 

banks, combined with increased servicing income at 

mortgage and credit-card lenders provided a boost to 

industry earnings in the third quarter, as insured commercial banks and savings institutions reported a recordhigh $34.6 billion in net income. Third-quarter profits 

exceeded the previous record, set in the first quarter, by 

$492 million (1.4 percent), and were $1.4 billion (4.2 

percent) more than the industry earned in the second 

quarter. Large banks accounted for most of the increase 

in income, but more than half of all institutions (57.6 

percent) reported higher earnings than in the second 

quarter. Income from trading was a quarterly record $4.5 

billion, $2.0 billion (84.1 percent) greater than in the 

second quarter. Servicing fees were up by $2.1 billion 

(74.2 percent), as rising interest rates caused the value 

of servicing assets to appreciate. These improvements 

were largely responsible for a $4.2-billion (7.7-percent) 

increase in total noninterest income during the quarter. 

Net interest income also grew, rising by $1.9 billion (2.4 

percent) above the level of the second quarter. These 

positive contributions to industry earnings were partially 

offset by higher loan-loss provisions (up $2.3 billion, or 

34.5 percent). Another factor that limited the improvement in earnings was a decline in gains on sales of securities and other assets (down $1.0 billion, or 45.1 

percent), as higher interest rates caused the market values of fixed-rate securities to decline. Absent the significant merger-related charges and litigation expenses that 

have inflated noninterest expenses in recent quarters, 

overhead costs in the third quarter were only $470 million (0.6 percent) higher than in the second quarter. 

The industry’s return on assets (ROA) improved to 1.31 

percent from 1.28 percent in the second quarter, but was 

slightly below the 1.33 percent registered in the third 

quarter of 2004. More than half of the 8,854 institutions reporting third-quarter results (57.9 percent) had 

ROAs of 1 percent or better, 53.0 percent had higher 

ROAs than in the second quarter, and 52.9 percent had 

higher ROAs than a year earlier. 

FEDERAL DEPOSIT INSURANCE CORPORATION Data received through 11/16/05	 ALL FDIC-INSURED INSTITUTIONS 
 

 

 

FDIC Quarterly Banking Profile 

Net interest margins end slide at large institutions 

Smaller institutions continued to eke out modest 

improvements in their net interest margins as shortterm interest rates increased. The average yield on 

interest-bearing assets at institutions with less than 

$100 million in assets rose by 22 basis points during 

the quarter, while the average interest expense of 

funding those assets increased by 18 basis points, 

producing a 3 basis-point improvement in their net 

interest margin. Larger institutions, where average 

margins had declined for six consecutive quarters, 

saw their average margin increase by one basis point 

in the third quarter. Slightly more than half of all 

insured banks and thrifts — 53.2 percent — reported 

improved net interest margins in the third quarter. 

With margins only slightly changed from second 

quarter levels, the 2.3-percent growth in interestbearing assets was largely responsible for the 

improvement in net interest income. 

Higher losses and credit expenses may signal an 

end to improving trend in asset quality 

The improving trend in expenses for loan losses, 

which has persisted for almost three years, showed 

signs of coming to an end in the third quarter. Both 

loan-loss provisions and net loan losses were higher 

than a year earlier for the first time in three years. 

Insured institutions set aside $8.9 billion in provisions for loan losses, the highest quarterly total since 

the second quarter of 2003, and $1.5 billion (20.4 

percent) more than they set aside in the third quarter of 2004. Net charge-offs totaled $8.3 billion, an 

increase of $1.7 billion (24.7 percent) from the second quarter, and $903 million (12.1 percent) more 

than in the third quarter of 2004. Much of the 

increase was concentrated in a few large institutions. 

Chart 3 

Noninterest Income Provided aBoost to 

Revenues in the Third Quarter 

$ Billions 

0 

$3.8 

-$1.2 

$4.5 

Positive Factors Negative Factors 

$1.5 

$7.6 

Increase in Increase in Increase in Decrease in Increase in 

Net Interest Noninterest Loan Loss Gains on Noninterest 

Income Income Provision Securities Sales Expense 

Five institutions accounted for almost three quarters 

(73.3 percent) of the increase in loss provisions over 

the second quarter. One large bank reported a $1.2­

billion increase in charge-offs of loans to individuals. 

Among positive signs, there was continued improvement in commercial and industrial (C&I) loans, 

where net charge-offs were $70 million (9.8 percent) 

lower than in the second quarter. A surge in personal bankruptcy filings did not cause a significant 

increase in losses on credit cards; net charge-offs 

increased by only $4 million (0.1 percent). But, for 

the first time in almost three years, large institutions 

added more in loan-loss provisions to their loss 

reserves than they took out in net charge-offs, suggesting the anticipation of higher loan losses in the 

near future. 

Higher levels of noncurrent loans reflect application 

of new accounting rules 

Noncurrent loans (loans 90 days or more past due or 

in nonaccrual status) increased by $2.9 billion during 

the quarter. This is the first time in three years that 

noncurrent loans have increased. The increase was 

caused by a $3.4-billion increase in residential mortgage loans that were 90 days or more past due. 

Much of this growth reflected the rebooking of 

delinquent loans in securitized pools guaranteed by 

the Government National Mortgage Association 

(GNMA). New accounting rules that took effect 

earlier this year require that when such loans become 

eligible for repurchase, they must be rebooked as 

delinquent loan assets.1 At the end of September, 

delinquent GNMA loans represented more than 

two-thirds (67.5 percent) of all residential mortgage 

loans that were 90 days or more past due. Because of 

1

See Notes to Users, page 17. 

Chart 4 

Provisions Exceeded Net Charge-Offs for 

the First Time Since 2002 

$ Billions 

14 14 

Loan Loss Provisions 12 12 12 12 12 Net Loan Charge-Offs 11 11 

10 10 10 10 10 

9 9 9 9 

8 8 8 8 8 

7 7 7 7 7 7 

6 

0 

3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 6/05 9/05 

THIRD QUARTER 2005 2 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

the GNMA guarantees, these delinquent loans pose 

a lower risk of credit losses than other noncurrent 

loans. In contrast to the increase in loans 90 days or 

more past due, nonaccrual loans declined for the 

twelfth quarter in a row, falling by $1.3 billion (4.4 

percent). Apart from residential mortgage loans, the 

only other major loan categories that experienced 

increases in noncurrent levels were credit-card loans, 

where noncurrent loans rose by $596 million (9.8 

percent), and home equity loans, where noncurrents 

increased by $171 million (19.0 percent). All other 

loan categories registered declines in noncurrent 

loans. The percent of the industry’s loans that were 

noncurrent increased from 0.71 percent to 0.74 percent during the quarter. This is still the second-lowest level for this percentage in the 22 years that 

insured banks and thrifts have reported noncurrent 

loan amounts. 

Large institutions reverse drawdown of reserves 

Stepped-up loan-loss provisioning activity at large 

banks, combined with a smaller increase in loan losses, resulted in a slight rise in the industry’s reserves 

for loan losses of $320 million (0.4 percent). Insured 

institutions added $8.9 billion in loss provisions to 

their reserves while charging-off $8.3 billion. This is 

the first time since the fourth quarter of 2002 that 

provisions have exceeded charge-offs and the first 

time since the fourth quarter of 2003 that the industry’s reserves have grown. The modest increase in 

reserves did not keep pace with the growth in loans 

during the quarter, and the industry’s ratio of reserves 

to total loans declined for the fourteenth consecutive 

quarter, from 1.23 percent to 1.21 percent. Growth 

in noncurrent loans caused the “coverage ratio” to 

decline for only the second time in the past three 

Chart 5 

More than Three-Quarters of Credit Losses 

Occurred in Consumer Loans 

Composition of Institutions' Loan Charge-Offs 

6% 6% 8%

Credit Cards 

48% Other Consumer 

32% 

Real Estate All Other

Commercial and Industrial 

years, from $1.73 in reserves for every $1.00 in noncurrent loans to $1.63. 

Capital growth lags behind growth in assets 

Equity capital increased by $10.0 billion (0.9 percent) in the third quarter, the smallest quarterly capital increase in two years. Equity growth was 

hindered by a $9.2-billion decline in other comprehensive income that stemmed largely from lower 

unrealized gains in available-for-sale securities portfolios. Additionally, a $3.3-billion (18.6-percent) 

increase in quarterly dividends compared to the level 

of a year ago meant that retained earnings contributed $1.1 billion (7.7 percent) less to capital 

growth in the third quarter of this year than in the 

third quarter of 2004. Meanwhile, the industry’s 

assets increased by 2.2 percent during the quarter, so 

the equity-to-assets ratio declined from 10.38 percent to 10.25 percent. All three regulatory capital 

ratios declined as well during the quarter. Still, capital levels remain near all-time highs, and more than 

90 percent of all insured institutions continue to 

meet or exceed the highest regulatory capital standards. 

Nonmortgage assets account for largest share of 

asset growth 

For the first time in the last four quarters, mortgage 

assets accounted for less than half of the quarterly 

increase in interest-earning assets. Residential mortgage loans increased by $66.6 billion (3.4 percent), 

but home equity loans grew by only $4.3 billion (0.8 

percent), and the industry’s holdings of mortgagebacked securities (MBS) declined by $2.5 billion 

(0.2 percent). Together, these mortgage assets repreChart 6 

Growth in Home Equity Credit 

Continued to Slow 

Quarterly Change ($ Billion) 

107 

Unused Commitments
 

Loans Outstanding
 

71 67 62 

30 39 44 

77 32 23 49 50 48 

24 

25 

45 42 38 32 

20 19 20 

18 13 22 

31 25 

18 

29 

19 20 

7 

11 

4 

15 15 

11 

9 11 

0 31 

19 

17 

28 

26 

36 

4 

27 

17 

8 

16 

13 

31 

17 

13 

2 

15 

-4 

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

2001 2002 2003 2004 2005 

ALL FDIC-INSURED INSTITUTIONS 3 THIRD QUARTER 2005 
FDIC Quarterly Banking Profile 

sented only 34 percent of the $211.0-billion increase 

in interest-earning assets during the quarter. The 

increase in home equity loans was the smallest quarterly increase in this category in four and a half 

years. Total loan growth of $171.6 billion was supported by a $28.2-billion (7.2-percent) increase in 

real estate construction and development loans, a 

$24.6-billion (3.1-percent) increase in commercial 

real estate loans, and a $22.3-billion (4.5-percent) 

increase in loans to individuals other than credit 

cards. Loans to commercial and industrial (C&I) 

borrowers increased by only $7.5 billion (0.7 percent), after growing by an average of almost $30 billion per quarter in the previous four quarters. 

Interest-bearing deposits post strong growth 

Total deposits increased by $147.7 billion (2.2 percent) in the third quarter. Noninterest-bearing 

deposits in domestic offices (primarily checking 

accounts) fell by $1.4 billion (0.1 percent), while 

domestic interest-bearing deposits grew by $141.5 

billion (3.0 percent). Large-denomination deposits 

(accounts with balances of $100,000 or more) 

increased by $83.5 billion (2.7 percent), accounting 

for 60 percent of the total growth in domestic office 

deposits. Deposits in foreign offices increased by 

$7.6 billion (0.8 percent). Nondeposit liabilities registered strong growth, increasing by $68.0 billion 

(2.6 percent). 

Chart 7 

“Problem List” shrinks to historic low 

The number of insured commercial banks and savings institutions reporting financial results declined 

by only 14 during the third quarter, as merger activity dropped off sharply from recent levels. This is the 

smallest decline in reporting institutions since the 

fourth quarter of 1984, and the final net reduction 

will be smaller, since as many as four more institutions may file delayed September financial reports. 

Only 52 institutions were absorbed by mergers in the 

third quarter, the fewest since 1980. There were 45 

new institutions reporting financial results in the 

third quarter. For the fifth consecutive quarter, no 

FDIC-insured financial institution failed. This is the 

longest interval without a failure since 1945-46. 

Four mutually-owned savings institutions, with combined assets of $874 million, converted to stock 

ownership during the third quarter; one of these 

institutions was merged into another institution 

before the end of the quarter. The number of institutions on the FDIC’s “Problem List” declined from 

74 to 68 during the third quarter. This is the smallest number of “problem” institutions in the thirtyfive years for which problem institution statistics are 

available. Assets of “problem” institutions fell from 

$21.8 billion to $20.9 billion, and are now at the 

lowest level since the third quarter of 2000. 

Chart 8 

20 

30 

Annual Growth Rate (%) 

18.9 

30.4 Construction and Land Development Loans 

Real Estate Construction Lending 

Has Been Accelerating 

Number of Problem 

Institutions Assets of Problem 

Institutions ($ Billion) 

$24 

$40 $39 

$30 $28 $28 

$22 $21 

92 

84 79 

94 

114 

136 

116 

80 79 74 68 

The “Problem List” Continues to Shrink 

14.0 12.8 12.6

10 9.7 

$11 $10 

4.9 $6 

1996 1997 1998 1999 2000 2001 2002 2003 2004 9/2005 

0 

4.9 4.7 Commercial Real Estate Loans 1-4 Family Residential Property Loans 

5.8 

1 2 3 4 1 2 3 4 1 2 3 

2003 2004 2005

THIRD QUARTER 2005 4 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

2005** 2004** 2004 2003 2002 2001 2000 

Return on assets (%) ................................................................ 1.31 1.29 1.28 1.38 1.30 1.14 1.14 

Return on equity (%) ................................................................ 12.69 13.50 13.22 15.04 14.11 12.96 13.53 

Core capital (leverage) ratio (%) .............................................. 8.23 8.09 8.11 7.88 7.86 7.78 7.71 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.50 0.57 0.53 0.75 0.90 0.87 0.71 

Net charge-offs to loans (%) ..................................................... 0.47 0.55 0.56 0.78 0.97 0.83 0.59 

Asset growth rate (%) ............................................................... 8.33 10.44 11.35 7.58 7.20 5.44 8.41 

Net interest margin (%) ............................................................ 3.50 3.52 3.53 3.73 3.96 3.78 3.77 

Net operating income growth (%) ............................................. 13.92 5.41 4.03 15.99 18.44 -0.98 1.71 

Number of institutions reporting ............................................... 8,854 9,024 8,976 9,181 9,354 9,614 9,904 

Commercial banks ................................................................. 7,540 7,660 7,631 7,770 7,888 8,080 8,315 

Savings institutions ................................................................ 1,314 1,364 1,345 1,411 1,466 1,534 1,589 

Percentage of unprofitable institutions (%) ............................... 5.77 5.73 5.96 5.98 6.67 8.24 7.53 

Number of problem institutions ................................................ 68 95 80 116 136 114 94 

Assets of problem institutions (in billions) ................................ $21 $25 $28 $30 $39 $40 $24 

Number of failed/assisted institutions ....................................... 0 4 4 3 11 4 7 

* Excludes insured branches of foreign banks (IBAs).
 

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

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

(dollar figures in millions) 

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

3rd Quarter 

2005 

2nd Quarter 

2005 

3rd Quarter 

2004 

%Change 

04:3-05:3 

8,854 8,868 9,024 -1.9 

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

CONDITION DATA 

2,137,953 2,130,266 2,092,598 2.2 

Total assets ........................................................................................................................... $10,700,024 $10,474,299 $9,877,215 8.3 

Loans secured by real estate ............................................................................................. 4,063,490 3,932,402 3,554,708 14.3 

1-4 Family residential mortgages .................................................................................... 2,019,176 1,952,537 1,782,681 13.3 

Commercial real estate ................................................................................................... 806,971 782,343 734,635 9.8 

Construction and development ....................................................................................... 417,490 389,274 319,043 30.9 

Home equity lines ........................................................................................................... 538,145 533,854 459,830 17.0 

Commercial & industrial loans ............................................................................................ 1,050,432 1,042,964 951,711 10.4 

Loans to individuals ............................................................................................................ 932,760 907,666 895,490 4.2 

Credit cards .................................................................................................................... 368,479 366,447 365,001 1.0 

Farm loans ......................................................................................................................... 50,725 48,300 48,937 3.7 

Other loans & leases .......................................................................................................... 482,308 476,850 533,773 -9.6 

Less: Unearned income ..................................................................................................... 3,188 3,084 3,196 -0.2 

Total loans & leases ........................................................................................................... 6,576,671 6,405,098 5,981,425 10.0 

Less: Reserve for losses .................................................................................................... 79,384 79,065 83,797 -5.3 

Net loans and leases .......................................................................................................... 6,497,287 6,326,033 5,897,627 10.2 

Securities ........................................................................................................................... 1,891,031 1,889,413 1,796,092 5.3 

Other real estate owned ..................................................................................................... 4,138 4,093 4,647 -10.9 

Goodwill and other intangibles ........................................................................................... 329,451 322,362 293,345 12.3 

All other assets ................................................................................................................... 1,978,116 1,932,398 1,885,493 4.9 

Total liabilities and capital ..................................................................................................... 10,700,024 10,474,299 9,877,215 8.3 

Deposits ............................................................................................................................. 6,968,673 6,820,976 6,383,713 9.2 

Domestic office deposits ................................................................................................ 6,065,922 5,925,808 5,563,853 9.0 

Foreign office deposits ................................................................................................... 902,751 895,168 819,860 10.1 

Other borrowed funds ........................................................................................................ 2,073,687 2,017,261 1,963,955 5.6 

Subordinated debt .............................................................................................................. 125,014 123,091 110,803 12.8 

All other liabilities ............................................................................................................... 435,746 426,108 417,845 4.3 

Equity capital ...................................................................................................................... 1,096,903 1,086,863 1,000,898 9.6 

Loans and leases 30-89 days past due .................................................................................. 53,426 47,412 49,624 7.7 

Noncurrent loans and leases .................................................................................................. 48,707 45,814 50,636 -3.8 

Restructured loans and leases .............................................................................................. 3,010 2,757 2,524 19.2 

Direct and indirect investments in real estate ........................................................................ 925 912 851 8.8 

Mortgage-backed securities ................................................................................................... 1,138,776 1,141,237 1,048,580 8.6 

Earning assets ....................................................................................................................... 9,354,179 9,143,176 8,597,080 8.8 

FHLB Advances ..................................................................................................................... 591,590 584,909 531,224 11.4 

Unused loan commitments .................................................................................................... 6,901,613 6,681,169 6,332,087 9.0 

Trust assets ........................................................................................................................... 16,143,066 15,470,980 13,980,803 15.5 

Assets securitized and sold*** ............................................................................................... 1,023,356 971,141 891,565 14.8 

Notional amount of derivatives*** .......................................................................................... 99,595,468 96,943,476 84,866,147 17.4 

INCOME DATA 

3rd Quarter 

2004 

%Change 

04:3-05:3 

First Three 

Qtrs 2005 

First Three 

Qtrs 2004 %Change 

3rd Quarter 

2005 

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

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

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

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

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

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

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

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

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

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

From international operations .............................................................. 

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

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

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

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

$382,288 $306,120 24.9 $136,135 $110,126 23.6 

144,237 88,350 63.3 55,190 33,105 66.7 

238,050 217,771 9.3 80,945 77,020 5.1 

21,706 21,703 0.0 8,912 7,404 20.4 

168,367 149,290 12.8 58,650 51,038 14.9 

237,197 216,660 9.5 80,275 75,644 6.1 

$4,339 $6,523 -33.5 $1,238 $2,453 -49.5 

49,822 43,594 14.3 16,919 14,917 13.4 

-80 112 N/M -91 -104 12.9 

101,952 91,737 11.1 34,637 32,443 6.8 

7,626 8,614 -11.5 2,107 2,094 0.6 

22,197 23,167 -4.2 8,349 7,446 12.1 

54,673 46,891 16.6 21,022 17,691 18.8 

47,279 44,846 5.4 13,615 14,752 -7.7 

99,116 87,002 13.9 33,877 30,710 10.3 

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

ALL FDIC-INSURED INSTITUTIONS 5 THIRD QUARTER 2005 
FDIC Quarterly Banking Profile 

TABLE III-A. Third Quarter 2005, All FDIC-Insured Institutions 

THIRD QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,854 29 4 1,732 4,553 928 125 420 993 70 

Commercial banks .............................................. 7,540 26 4 1,727 4,133 219 94 373 908 56 

Savings institutions ............................................. 1,314 3 0 5 420 709 31 47 85 14 

Total assets (in billions) ......................................... $10,700.0 $359.9 $1,838.9 $143.0 $3,666.7 $1,677.0 $109.2 $47.7 $128.7 $2,728.9 

Commercial banks .............................................. 8,903.6 346.8 1,838.9 142.4 3,288.2 406.5 52.1 39.3 110.4 2,679.0 

Savings institutions ............................................. 1,796.4 13.1 0.0 0.6 378.4 1,270.5 57.2 8.4 18.3 50.0 

Total deposits (in billions) ...................................... 6,968.7 111.3 1,096.4 114.9 2,666.1 961.1 66.3 34.4 105.2 1,812.9 

Commercial banks .............................................. 5,917.0 109.8 1,096.4 114.4 2,417.6 242.5 31.5 28.5 90.6 1,785.6 

Savings institutions ............................................. 1,051.7 1.5 0.0 0.4 248.5 718.6 34.9 5.9 14.6 27.3 

Net income (in millions) ......................................... 34,637 2,892 4,632 477 12,579 4,247 474 210 357 8,769 

Commercial banks .............................................. 29,776 2,811 4,632 476 11,461 1,068 222 161 326 8,620 

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

Performance Ratios (annualized,%) 

4,860 81 0 1 1,118 3,178 252 49 31 149 

Yield on earning assets ......................................... 5.89 12.31 5.14 6.28 6.16 5.50 7.49 4.69 5.72 5.34 

Cost of funding earning assets .............................. 2.39 3.30 2.60 2.11 2.18 2.75 2.74 1.70 1.92 2.21 

Net interest margin ............................................. 3.50 9.01 2.55 4.17 3.97 2.75 4.75 2.99 3.79 3.13 

Noninterest income to assets ................................ 2.22 10.16 3.17 0.72 1.54 1.02 2.46 8.31 1.08 2.15 

Noninterest expense to assets .............................. 3.03 9.01 3.32 2.74 2.87 2.06 3.14 8.12 3.03 2.77 

Loan and lease loss provision to assets ................ 0.34 3.81 0.45 0.14 0.22 0.09 0.96 0.06 0.12 0.09 

Net operating income to assets ............................. 1.28 2.98 1.01 1.36 1.38 0.90 1.72 1.77 1.11 1.31 

Pretax return on assets ......................................... 1.95 4.98 1.51 1.66 2.03 1.59 2.78 2.76 1.42 1.94 

Return on assets ................................................... 1.31 3.16 1.02 1.35 1.39 1.03 1.76 1.77 1.12 1.30 

Return on equity .................................................... 12.69 14.43 12.34 12.34 13.55 9.59 18.23 9.18 10.27 13.27 

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

Loan and lease loss provision to net charge-offs .. 106.74 120.34 85.62 136.14 138.47 127.00 87.75 141.52 110.52 67.89 

Efficiency ratio ....................................................... 56.15 48.36 61.37 59.66 55.05 57.54 45.94 72.72 66.08 56.36 

% of unprofitable institutions ................................. 5.95 6.90 0.00 2.25 6.39 7.44 3.20 17.86 4.43 4.29 

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

Structural Changes 

60.41 51.72 100.00 52.14 71.36 41.49 54.40 46.90 49.14 57.14 

New Charters ..................................................... 45 0 0 0 9 5 0 31 0 0 

Institutions absorbed by mergers ....................... 52 0 0 4 42 3 0 0 1 2 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ................................... 2004 1.33 4.10 0.86 1.33 1.34 1.15 1.16 1.53 1.14 1.34

 ............................. 2002 1.34 3.76 0.65 1.38 1.31 1.36 1.18 1.60 1.20 1.51

 ............................. 2000 1.21 3.59 1.03 1.29 1.17 0.87 1.16 1.03 1.16 1.32 

Net charge-offs to loans and leases (%) ..... 2004 0.51 4.24 0.89 0.20 0.28 0.10 1.10 0.27 0.26 0.26

 ............................. 2002 0.98 5.35 2.17 0.30 0.68 0.15 1.29 0.42 0.34 0.86

 ............................. 2000 0.53 3.69 0.37 0.21 0.43 0.11 0.26 1.50 0.25 0.65 

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

THIRD QUARTER 2005 6 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE III-A. Third Quarter 2005, All FDIC-Insured Institutions 

THIRD QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,854 3,940 4,293 503 118 1,113 1,219 1,888 2,074 1,804 756 

Commercial banks .............................................. 7,540 3,522 3,552 380 86 585 1,075 1,551 1,967 1,682 680 

Savings institutions ............................................. 1,314 418 741 123 32 528 144 337 107 122 76 

Total assets (in billions) ......................................... $10,700.0 $205.7 $1,225.4 $1,365.7 $7,903.2 $2,756.0 $2,635.3 $2,494.2 $784.0 $584.9 $1,445.6 

Commercial banks .............................................. 8,903.6 184.2 982.5 1,022.6 6,714.3 2,149.7 2,470.1 2,342.6 739.5 491.7 710.0 

Savings institutions ............................................. 1,796.4 21.5 242.9 343.2 1,188.9 606.3 165.3 151.6 44.5 93.2 735.6 

Total deposits (in billions) ...................................... 6,968.7 168.6 979.1 951.0 4,870.0 1,811.6 1,776.9 1,538.8 559.6 442.4 839.4 

Commercial banks .............................................. 5,917.0 152.2 796.2 719.7 4,248.9 1,422.2 1,668.4 1,431.3 531.5 390.3 473.4 

Savings institutions ............................................. 1,051.7 16.3 182.9 231.3 621.1 389.4 108.5 107.5 28.1 52.1 366.0 

Net income (in millions) ......................................... 34,637 552 3,846 4,532 25,707 8,515 8,731 6,625 3,352 1,704 5,709 

Commercial banks .............................................. 29,776 491 3,354 3,534 22,397 6,898 8,301 6,334 3,254 1,372 3,619 

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

Performance Ratios (annualized,%) 

4,860 61 492 998 3,310 1,617 430 291 98 333 2,091 

Yield on earning assets ......................................... 5.89 6.21 6.30 6.02 5.79 5.84 5.67 5.35 6.64 6.21 6.71 

Cost of funding earning assets .............................. 2.39 1.96 2.15 2.28 2.46 2.47 2.32 2.45 2.09 2.19 2.47 

Net interest margin ............................................. 3.50 4.25 4.15 3.75 3.33 3.37 3.35 2.90 4.54 4.02 4.24 

Noninterest income to assets ................................ 2.22 1.41 1.26 1.66 2.48 2.64 1.84 2.21 3.17 1.59 1.84 

Noninterest expense to assets .............................. 3.03 3.73 3.17 2.97 3.01 3.24 2.63 2.92 4.21 3.25 2.82 

Loan and lease loss provision to assets ................ 0.34 0.18 0.20 0.19 0.39 0.51 0.14 0.19 0.37 0.39 0.56 

Net operating income to assets ............................. 1.28 1.07 1.25 1.28 1.29 1.22 1.32 1.06 1.73 1.16 1.48 

Pretax return on assets .......................................... 1.95 1.42 1.73 2.00 1.99 1.83 1.99 1.61 2.56 1.58 2.51 

Return on assets .................................................... 1.31 1.09 1.27 1.34 1.31 1.24 1.34 1.08 1.73 1.18 1.60 

Return on equity .................................................... 12.69 8.83 12.37 12.64 12.87 11.64 13.48 11.64 16.13 12.31 13.11 

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

Loan and lease loss provision to net charge-offs .. 106.74 185.17 164.11 123.97 102.16 95.25 90.98 113.96 92.87 251.72 125.13 

Efficiency ratio ....................................................... 56.15 69.79 62.02 57.41 54.72 56.59 54.37 60.61 57.60 61.91 48.52 

% of unprofitable institutions .................................. 5.95 10.30 2.47 2.58 1.69 7.01 8.61 5.77 3.04 5.65 9.26 

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

Structural Changes 

60.41 53.32 65.43 71.57 66.95 54.90 72.27 56.20 54.97 60.53 74.60 

New Charters ...................................................... 45 39 3 3 0 8 12 10 2 3 10 

Institutions absorbed by mergers ........................ 52 22 27 3 0 4 5 16 11 8 8 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) .................................... 2004 1.33 1.08 1.21 1.47 1.33 1.13 1.46 1.21 1.48 1.46 1.67

 ............................. 2002 1.34 1.11 1.23 1.54 1.33 1.10 1.38 1.29 1.64 1.44 1.75

 ............................. 2000 1.21 1.00 1.15 1.35 1.20 1.28 1.28 1.00 1.31 1.08 1.21 

Net charge-offs to loans and leases (%) ...... 2004 0.51 0.25 0.22 0.34 0.60 0.73 0.26 0.43 0.61 0.30 0.54

 ............................. 2002 0.98 0.31 0.36 0.76 1.21 1.51 0.73 0.80 1.15 0.42 0.77

 ............................. 2000 0.53 0.21 0.29 0.54 0.60 0.63 0.46 0.38 0.67 0.34 0.67 

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

ALL FDIC-INSURED INSTITUTIONS 7 THIRD QUARTER 2005 
FDIC Quarterly Banking Profile 

TABLE IV-A. First Three Quarters 2005, All FDIC-Insured Institutions 

FIRST THREE QUARTERS 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,854 29 4 1,732 4,553 928 125 420 993 70 

Commercial banks .............................................. 7,540 26 4 1,727 4,133 219 94 373 908 56 

Savings institutions ............................................. 1,314 3 0 5 420 709 31 47 85 14 

Total assets (in billions) ......................................... $10,700.0 $359.9 $1,838.9 $143.0 $3,666.7 $1,677.0 $109.2 $47.7 $128.7 $2,728.9 

Commercial banks .............................................. 8,903.6 346.8 1,838.9 142.4 3,288.2 406.5 52.1 39.3 110.4 2,679.0 

Savings institutions ............................................. 1,796.4 13.1 0.0 0.6 378.4 1,270.5 57.2 8.4 18.3 50.0 

Total deposits (in billions) ...................................... 6,968.7 111.3 1,096.4 114.9 2,666.1 961.1 66.3 34.4 105.2 1,812.9 

Commercial banks .............................................. 5,917.0 109.8 1,096.4 114.4 2,417.6 242.5 31.5 28.5 90.6 1,785.6 

Savings institutions ............................................. 1,051.7 1.5 0.0 0.4 248.5 718.6 34.9 5.9 14.6 27.3 

Net income (in millions) .......................................... 101,952 8,804 11,898 1,391 36,232 13,401 1,331 610 1,072 27,213 

Commercial banks .............................................. 87,218 8,564 11,898 1,387 33,081 3,447 628 464 969 26,778 

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

Performance Ratios (annualized,%) 

14,733 240 0 3 3,150 9,954 702 145 103 435 

Yield on earning assets .......................................... 5.62 11.49 4.98 6.03 5.85 5.21 7.39 4.49 5.57 5.13 

Cost of funding earning assets .............................. 2.12 2.96 2.37 1.91 1.94 2.40 2.59 1.54 1.77 1.94 

Net interest margin .............................................. 3.50 8.53 2.61 4.12 3.91 2.81 4.80 2.95 3.80 3.18 

Noninterest income to assets ................................. 2.16 10.24 2.87 0.69 1.50 1.09 2.42 7.70 1.08 2.11 

Noninterest expense to assets ............................... 3.04 9.14 3.37 2.72 2.85 2.09 3.04 7.66 3.04 2.75 

Loan and lease loss provision to assets ................ 0.28 3.43 0.31 0.14 0.19 0.07 1.15 0.05 0.14 0.05 

Net operating income to assets ............................. 1.27 3.00 0.91 1.33 1.35 0.98 1.66 1.70 1.11 1.33 

Pretax return on assets .......................................... 1.95 4.99 1.29 1.62 1.99 1.72 2.65 2.63 1.41 2.06 

Return on assets .................................................... 1.31 3.19 0.88 1.32 1.36 1.12 1.70 1.73 1.12 1.37 

Return on equity ..................................................... 12.69 14.79 10.71 12.17 13.42 10.33 16.67 8.97 10.42 13.87 

Net charge-offs to loans and leases ...................... 0.47 4.27 0.88 0.15 0.22 0.10 1.46 0.29 0.27 0.20 

Loan and lease loss provision to net charge-offs ... 97.79 106.95 80.08 141.63 124.61 101.29 100.13 71.59 93.19 47.10 

Efficiency ratio ........................................................ 56.94 49.80 65.59 60.19 55.70 56.09 44.53 72.97 66.17 56.01 

% of unprofitable institutions .................................. 5.77 6.90 0.00 1.50 6.92 5.93 3.20 16.90 3.52 4.29 

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

Condition Ratios(%) 

63.95 58.62 100.00 57.85 73.40 52.59 52.00 47.86 50.76 55.71 

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

Loss Allowance to: 

87.42 81.45 82.35 91.89 89.74 92.03 91.82 87.85 91.95 85.05 

Loans and leases ................................................ 1.21 4.65 1.49 1.40 1.21 0.47 1.71 1.49 1.28 0.97 

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

Noncurrent assets plus 

162.98 253.52 146.29 158.46 199.52 64.50 256.36 191.62 155.05 156.50 

other real estate owned to assets .......................... 0.50 1.36 0.48 0.68 0.48 0.57 0.54 0.25 0.57 0.37 

Equity capital ratio .................................................. 10.25 22.07 8.23 10.87 10.21 10.67 9.58 19.27 10.83 9.66 

Core capital (leverage) ratio ................................... 8.23 16.73 6.24 10.58 8.47 9.14 9.48 16.68 10.69 7.12 

Tier 1 risk-based capital ratio ................................. 10.71 16.00 8.14 14.54 10.16 15.53 11.62 37.55 17.79 9.22 

Total risk-based capital ratio .................................. 13.03 18.72 11.57 15.65 12.16 16.97 13.05 38.81 19.02 11.75 

Net loans and leases to deposits ........................... 93.24 228.97 73.29 81.00 95.28 124.02 125.54 33.62 67.36 79.87 

Net loans to total assets ......................................... 60.72 70.82 43.70 65.07 69.28 71.08 76.24 24.24 55.08 53.06 

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

Structural Changes 

56.69 26.93 30.54 80.33 70.58 56.94 59.81 69.53 81.77 56.65 

New Charters ...................................................... 122 0 0 1 33 9 0 78 1 0 

Institutions absorbed by mergers ........................ 234 2 0 15 158 14 0 5 6 34 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Number of institutions .................................. 2004 9,024 35 6 1,783 4,385 1,000 136 458 1,138 83

 ................................ 2002 9,415 41 5 1,877 4,081 1,159 206 453 1,495 98

 ................................ 2000 9,989 58 7 2,045 3,947 1,309 304 507 1,731 81 

Total assets (in billions) ............................... 2004 $9,877.2 $367.9 $1,565.9 $137.7 $3,195.3 $1,405.2 $211.7 $54.0 $147.6 $2,791.9

 ................................ 2002 8,272.8 291.0 1,232.2 124.7 3,394.2 1,279.5 168.3 49.0 192.5 1,541.3

 ................................ 2000 7,269.5 277.5 1,165.0 120.9 3,781.1 1,000.0 78.3 50.6 208.2 587.9 

Return on assets (%) ................................... 2004 1.29 3.90 0.89 1.28 1.33 1.20 0.82 1.47 1.13 1.23

 ................................ 2002 1.34 3.55 0.85 1.31 1.30 1.34 1.40 1.39 1.19 1.40

 ................................ 2000 1.16 2.92 1.10 1.31 1.12 0.99 1.19 1.56 1.17 0.92 

Net charge-offs to loans & leases (%) ......... 2004 0.55 4.69 1.05 0.17 0.29 0.11 0.94 0.46 0.26 0.25

 ................................ 2002 0.97 6.07 1.78 0.26 0.67 0.16 1.12 0.47 0.30 0.86

 ................................ 2000 

Noncurrent assets plus 

0.51 3.68 0.44 0.18 0.40 0.12 0.20 1.98 0.23 0.55 

OREO to assets (%) ................................. 2004 0.57 1.30 0.69 0.77 0.55 0.59 0.63 0.30 0.63 0.40

 ................................ 2002 0.92 1.61 1.28 0.93 0.88 0.68 1.34 0.36 0.70 0.80

 ................................ 2000 0.67 1.51 0.66 0.76 0.70 0.48 0.95 0.30 0.56 0.45 

Equity capital ratio (%) ................................. 2004 10.13 20.78 7.27 10.87 10.40 8.74 13.62 16.95 10.92 10.25

 ................................ 2002 9.22 15.39 7.26 11.04 9.53 8.81 7.78 16.73 10.89 8.87

 ................................ 2000 8.55 12.60 6.92 10.48 8.62 8.12 7.99 15.78 10.14 8.61 

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

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

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

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

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


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

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

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

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

All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending

 activity with no identified asset concentrations. 

All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending

 activity with no identified asset concentrations. 

THIRD QUARTER 2005 8 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE IV-A. First Three Quarters 2005, All FDIC-Insured Institutions 

FIRST THREE QUARTERS 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,854 3,940 4,293 503 118 1,113 1,219 1,888 2,074 1,804 756 

Commercial banks .............................................. 7,540 3,522 3,552 380 86 585 1,075 1,551 1,967 1,682 680 

Savings institutions ............................................. 1,314 418 741 123 32 528 144 337 107 122 76 

Total assets (in billions) ......................................... $10,700.0 $205.7 $1,225.4 $1,365.7 $7,903.2 $2,756.0 $2,635.3 $2,494.2 $784.0 $584.9 $1,445.6 

Commercial banks .............................................. 8,903.6 184.2 982.5 1,022.6 6,714.3 2,149.7 2,470.1 2,342.6 739.5 491.7 710.0 

Savings institutions ............................................. 1,796.4 21.5 242.9 343.2 1,188.9 606.3 165.3 151.6 44.5 93.2 735.6 

Total deposits (in billions) ...................................... 6,968.7 168.6 979.1 951.0 4,870.0 1,811.6 1,776.9 1,538.8 559.6 442.4 839.4 

Commercial banks .............................................. 5,917.0 152.2 796.2 719.7 4,248.9 1,422.2 1,668.4 1,431.3 531.5 390.3 473.4 

Savings institutions ............................................. 1,051.7 16.3 182.9 231.3 621.1 389.4 108.5 107.5 28.1 52.1 366.0 

Net income (in millions) ......................................... 101,952 1,624 10,980 13,173 76,175 25,590 26,427 18,338 9,509 5,253 16,835 

Commercial banks .............................................. 87,218 1,427 9,500 10,379 65,912 20,769 25,176 17,474 9,299 4,343 10,158 

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

Performance Ratios (annualized,%) 

14,733 197 1,480 2,794 10,263 4,821 1,251 864 210 910 6,678 

Yield on earning assets ......................................... 5.62 5.94 6.05 5.77 5.52 5.64 5.40 5.13 6.31 5.91 6.30 

Cost of funding earning assets .............................. 2.12 1.77 1.95 2.04 2.17 2.24 2.05 2.20 1.84 1.94 2.12 

Net interest margin ............................................. 3.50 4.17 4.09 3.73 3.34 3.40 3.35 2.93 4.47 3.97 4.18 

Noninterest income to assets ................................ 2.16 1.37 1.24 1.64 2.41 2.57 1.81 2.09 3.02 1.53 1.90 

Noninterest expense to assets .............................. 3.04 3.65 3.15 2.96 3.03 3.28 2.62 2.97 4.13 3.21 2.81 

Loan and lease loss provision to assets ................ 0.28 0.17 0.19 0.17 0.31 0.42 0.10 0.13 0.38 0.25 0.55 

Net operating income to assets ............................. 1.27 1.06 1.22 1.28 1.29 1.23 1.33 1.02 1.64 1.23 1.50 

Pretax return on assets .......................................... 1.95 1.41 1.69 1.99 2.00 1.87 2.07 1.47 2.43 1.68 2.54 

Return on assets ................................................... 1.31 1.08 1.24 1.34 1.32 1.27 1.38 1.01 1.65 1.25 1.62 

Return on equity .................................................... 12.69 8.82 12.09 12.59 12.93 11.97 13.86 10.86 15.47 13.06 13.13 

Net charge-offs to loans and leases ...................... 0.47 0.16 0.18 0.22 0.58 0.81 0.22 0.29 0.54 0.22 0.61 

Loan and lease loss provision to net charge-offs .. 97.79 175.12 158.89 119.68 92.37 93.19 75.24 80.64 96.38 178.74 119.18 

Efficiency ratio ....................................................... 56.94 69.79 62.65 57.73 55.66 57.71 54.44 63.01 58.02 62.14 48.12 

% of unprofitable institutions .................................. 5.77 10.15 2.35 1.79 0.85 6.38 9.35 4.82 3.04 5.21 10.32 

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

Condition Ratios (%) 

63.95 57.39 68.46 74.95 72.03 61.90 74.82 59.75 58.34 63.69 75.93 

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

Loss Allowance to: 

87.42 91.92 91.82 90.87 86.03 86.65 86.66 86.16 87.36 89.92 91.48 

Loans and leases ................................................ 1.21 1.35 1.22 1.17 1.21 1.42 1.01 1.20 1.32 1.24 1.13 

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

Noncurrent assets plus 

162.98 146.99 187.04 169.46 158.74 177.68 231.29 139.51 131.37 126.04 156.99 

other real estate owned to assets .......................... 0.50 0.71 0.54 0.50 0.49 0.46 0.31 0.54 0.80 0.73 0.58 

Equity capital ratio ................................................. 10.25 12.25 10.26 10.57 10.14 10.63 9.86 9.18 10.67 9.57 12.13 

Core capital (leverage) ratio .................................. 8.23 12.20 9.85 9.28 7.69 8.35 7.31 7.36 8.84 8.75 10.62 

Tier 1 risk-based capital ratio ................................. 10.71 18.13 13.53 12.45 9.84 11.75 9.30 8.98 10.73 12.27 14.10 

Total risk-based capital ratio .................................. 13.03 19.21 14.67 13.77 12.52 14.43 11.46 11.69 12.86 13.59 15.83 

Net loans and leases to deposits ........................... 93.24 76.03 84.38 93.94 95.47 83.31 87.89 91.23 101.63 82.08 129.96 

Net loans to total assets ........................................ 60.72 62.32 67.42 65.41 58.83 54.76 59.26 56.28 72.54 62.08 75.46 

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

Structural Changes 

56.69 81.95 79.76 68.92 50.34 47.87 61.34 53.16 68.40 75.05 57.37 

New Charters ...................................................... 122 110 7 4 1 17 32 18 10 15 30 

Institutions absorbed by mergers ........................ 234 83 121 22 8 33 32 72 39 36 22 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions .................................. 2004 9,024 4,204 4,223 480 117 1,136 1,223 1,968 2,104 1,840 753

 ................................ 2002 9,415 4,809 4,059 441 106 1,222 1,249 2,067 2,180 1,910 787

 ................................ 2000 9,989 5,558 3,902 428 101 1,304 1,320 2,221 2,277 2,035 832 

Total assets (in billions) ................................ 2004 $9,877.2 $217.7 $1,177.2 $1,326.4 $7,155.9 $3,403.0 $2,104.7 $1,745.7 $763.1 $588.8 $1,271.9

 ................................ 2002 8,272.8 243.9 1,113.3 1,256.3 5,659.4 2,826.3 1,667.5 1,561.3 429.8 569.2 1,218.7

 ................................ 2000 7,269.5 264.6 1,019.3 1,215.6 4,770.1 2,489.3 1,565.9 1,227.6 450.5 549.2 986.9 

Return on assets (%) ................................... 2004 1.29 1.02 1.19 1.48 1.28 1.14 1.40 1.13 1.51 1.35 1.61

 ................................ 2002 1.34 1.05 1.18 1.45 1.36 1.17 1.36 1.32 1.59 1.42 1.60

 ................................ 2000 1.16 1.06 1.18 1.26 1.14 1.24 1.01 1.04 1.36 1.10 1.28 

Net charge-offs to loans & leases (%) ........ 2004 0.55 0.22 0.23 0.35 0.66 0.81 0.31 0.36 0.75 0.26 0.60

 ................................ 2002 0.97 0.28 0.33 0.74 1.19 1.48 0.69 0.77 1.19 0.40 0.79

 ................................ 2000 

Noncurrent assets plus 

0.51 0.22 0.27 0.53 0.58 0.63 0.42 0.34 0.73 0.32 0.64 

OREO to assets (%) ................................ 2004 0.57 0.82 0.61 0.53 0.56 0.56 0.39 0.68 0.61 0.65 0.66

 ................................ 2002 0.92 0.87 0.75 0.73 1.00 1.05 0.79 1.04 0.87 0.84 0.72

 ................................ 2000 0.67 0.69 0.59 0.64 0.70 0.70 0.69 0.67 0.60 0.66 0.59 

Equity capital ratio (%) ................................ 2004 10.13 11.94 10.19 10.83 9.94 10.16 8.45 10.47 10.52 10.17 12.14

 ................................ 2002 9.22 11.42 10.05 10.08 8.78 8.92 9.42 8.62 10.32 9.76 9.79

 ................................ 2000 8.55 11.34 9.70 8.90 8.06 8.46 8.44 8.18 9.46 8.78 8.84 

* Regions:
 

New York - Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico,
 

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

ALL FDIC-INSURED INSTITUTIONS 9 THIRD QUARTER 2005 
FDIC Quarterly Banking Profile 

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

September 30, 2005 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 ....................................... 0.71 3.64 0.89 1.01 0.63 0.77 2.00 1.22 1.20 0.67 

Construction and development ..................................... 0.58 0.00 1.91 1.28 0.55 0.61 0.32 1.55 1.07 0.49 

Commercial real estate ................................................. 0.51 0.20 0.99 0.98 0.51 0.37 0.48 0.67 0.98 0.41 

Multifamily residential real estate .................................. 0.27 0.00 0.80 0.62 0.31 0.13 0.52 0.42 0.45 0.30 

Home equity loans ........................................................ 0.43 3.47 0.54 0.50 0.36 0.46 0.26 0.60 0.56 0.44 

Other 1-4 family residential ........................................... 0.93 3.82 0.88 1.65 0.96 0.88 3.03 1.56 1.44 0.87 

Commercial and industrial loans ..................................... 0.65 2.07 0.54 1.38 0.75 0.53 1.16 1.73 1.26 0.43 

Loans to individuals ......................................................... 1.70 2.18 1.87 2.18 1.35 0.91 1.51 2.44 1.98 1.41 

Credit card loans ........................................................... 2.19 2.24 2.29 2.26 2.10 1.33 1.45 3.03 2.08 2.02 

Other loans to individuals ............................................. 1.37 1.56 1.61 2.18 1.27 0.85 1.53 2.38 1.98 1.31 

All other loans and leases (including farm) ...................... 0.35 0.13 0.27 0.54 0.61 0.52 0.06 0.56 0.54 0.23 

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

Percent of Loans Noncurrent** 

0.81 2.13 0.90 1.03 0.71 0.77 1.59 1.42 1.27 0.65 

All real estate loans ......................................................... 0.67 1.00 1.07 0.85 0.56 0.75 0.51 0.77 0.81 0.66 

Construction and development ..................................... 0.41 0.00 1.52 0.60 0.37 0.72 0.28 1.28 0.64 0.37 

Commercial real estate ................................................. 0.62 1.59 1.32 1.15 0.58 0.54 0.70 0.90 1.15 0.58 

Multifamily residential real estate .................................. 0.25 0.00 0.46 0.58 0.26 0.09 0.00 0.11 0.92 0.53 

Home equity loans ........................................................ 0.20 1.10 0.24 0.22 0.19 0.17 0.05 0.16 0.19 0.21 

Other 1-4 family residential ........................................... 0.88 0.93 1.26 0.81 0.82 0.88 0.68 0.68 0.73 0.89 

Commercial and industrial loans ..................................... 0.89 1.15 1.27 1.48 0.82 0.84 0.80 0.96 1.30 0.68 

Loans to individuals ......................................................... 1.14 1.92 1.49 0.80 0.51 0.37 0.72 0.76 0.65 0.69 

Credit card loans ........................................................... 1.81 1.96 1.76 1.98 1.31 1.04 1.16 0.50 1.24 1.48 

Other loans to individuals ............................................. 0.70 1.48 1.32 0.73 0.42 0.27 0.60 0.79 0.63 0.56 

All other loans and leases (including farm) ...................... 0.31 0.03 0.15 0.63 0.54 0.24 0.42 0.51 0.52 0.26 

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

Percent of Loans Charged-off (net, YTD) 

0.74 1.83 1.02 0.88 0.61 0.73 0.67 0.78 0.82 0.62 

All real estate loans ......................................................... 0.05 0.15 0.09 0.04 0.07 0.04 0.09 0.06 0.11 0.03 

Construction and development ..................................... 0.03 0.00 0.02 0.02 0.03 0.04 0.01 0.09 0.07 0.02 

Commercial real estate ................................................. 0.05 1.75 0.08 0.04 0.06 0.00 0.12 0.04 0.24 -0.01 

Multifamily residential real estate .................................. 0.02 0.00 0.35 0.12 0.03 -0.02 -0.30 0.60 0.12 -0.01 

Home equity loans ........................................................ 0.09 0.16 0.11 0.05 0.11 0.05 0.04 0.03 0.05 0.08 

Other 1-4 family residential ........................................... 0.05 0.04 0.08 0.07 0.09 0.04 0.12 0.04 0.04 0.03 

Commercial and industrial loans ..................................... 0.27 2.63 -0.01 0.42 0.39 0.19 2.71 0.36 0.44 0.09 

Loans to individuals ......................................................... 2.59 4.66 3.40 0.80 1.01 1.20 1.94 1.16 0.86 1.08 

Credit card loans ........................................................... 4.41 4.80 3.88 5.43 3.75 3.39 4.36 4.08 6.21 3.37 

Other loans to individuals ............................................. 1.35 3.07 3.07 0.49 0.71 0.89 1.15 0.76 0.62 0.65 

All other loans and leases (including farm) ...................... 0.19 0.00 -0.06 0.00 0.35 1.20 0.29 0.49 0.46 0.33 

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

Loans Outstanding (in billions) 

0.50 4.30 0.90 0.20 0.20 0.10 1.50 0.30 0.30 0.20 

All real estate loans ......................................................... $4,063.5 $2.4 $236.6 $51.3 $1,743.2 $1,100.1 $23.1 $7.8 $50.1 $848.9 

Construction and development ..................................... 417.5 0.0 6.5 3.9 313.2 27.9 0.6 0.8 3.1 61.5 

Commercial real estate ................................................. 807.0 0.0 18.6 13.2 572.4 48.8 2.0 2.2 12.1 137.7 

Multifamily residential real estate .................................. 185.6 0.0 2.2 0.9 110.9 51.5 0.2 0.2 0.9 18.8 

Home equity loans ........................................................ 538.1 1.0 63.5 1.0 187.4 114.5 5.8 0.3 2.1 162.5 

Other 1-4 family residential ........................................... 2,019.2 1.4 106.3 15.0 533.5 856.5 14.3 4.1 28.5 459.6 

Commercial and industrial loans ..................................... 1,050.4 8.6 199.8 13.2 503.1 40.7 7.5 1.5 7.5 268.5 

Loans to individuals ......................................................... 932.8 248.5 198.3 6.9 200.4 49.6 52.7 1.7 9.7 164.9 

Credit card loans ........................................................... 368.5 229.1 77.2 0.4 19.6 6.3 11.3 0.1 0.3 24.1 

Other loans to individuals ............................................. 564.3 19.4 121.1 6.5 180.8 43.3 41.5 1.6 9.4 140.8 

All other loans and leases (including farm) ...................... 533.0 7.9 182.3 23.0 125.8 7.3 1.5 0.7 4.4 180.2 

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

Memo: Other Real Estate Owned (in millions) 

6,579.9 267.4 817.0 94.4 2,572.6 1,197.7 84.8 11.7 71.9 1,462.4 

All other real estate owned ........................................... 4,138.2 0.1 195.0 137.5 2,092.4 758.4 26.0 19.2 129.6 780.1 

Construction and development ..................................... 407.9 0.0 2.0 9.3 322.7 39.1 1.4 2.5 14.3 16.6 

Commercial real estate ................................................. 1,468.2 0.0 9.0 60.8 912.5 59.4 6.3 10.0 45.2 365.0 

Multifamily residential real estate .................................. 108.0 0.0 0.0 5.2 56.2 8.4 0.4 0.1 9.0 28.7 

1-4 family residential ..................................................... 2,021.5 1.8 131.0 37.9 766.7 650.4 17.8 6.1 55.7 354.1 

Farmland ....................................................................... 69.9 0.0 0.0 24.3 34.9 1.1 0.1 0.5 5.4 3.5 

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

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

THIRD QUARTER 2005 10 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

September 30, 2005 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 0.71 1.24 0.74 0.59 0.72 0.64 0.60 0.84 0.76 1.20 0.63 

Construction and development ........................... 0.58 0.89 0.67 0.50 0.55 0.58 0.36 0.77 0.72 0.85 0.44 

Commercial real estate ....................................... 0.51 1.02 0.58 0.44 0.46 0.46 0.40 0.67 0.53 0.80 0.32 

Multifamily residential real estate ........................ 0.27 0.62 0.50 0.22 0.23 0.13 0.36 0.54 0.43 1.02 0.11 

Home equity loans .............................................. 0.43 0.58 0.46 0.40 0.43 0.35 0.43 0.47 0.54 0.48 0.34 

Other 1-4 family residential ................................. 0.93 1.74 1.01 0.87 0.91 0.75 0.82 1.14 1.03 1.95 0.84 

Commercial and industrial loans ............................ 0.65 1.38 1.02 1.03 0.51 0.67 0.49 0.53 0.80 1.27 0.74 

Loans to individuals ............................................... 1.70 2.38 1.79 1.40 1.71 1.88 1.47 1.23 2.13 1.74 1.80 

Credit card loans ................................................. 2.19 1.74 3.63 1.55 2.20 2.15 2.29 1.73 2.95 0.84 2.22 

Other loans to individuals ................................... 1.37 2.39 1.61 1.36 1.33 1.61 1.35 1.07 1.37 1.94 1.17 

All other loans and leases (including farm) ............ 0.35 0.60 0.51 0.43 0.33 0.25 0.17 0.60 0.35 0.90 0.28 

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

Percent of Loans Noncurrent** 

0.81 1.30 0.83 0.72 0.81 0.87 0.63 0.80 0.92 1.25 0.81 

All real estate loans ............................................... 0.67 0.82 0.58 0.66 0.69 0.56 0.38 0.91 1.08 1.06 0.60 

Construction and development ........................... 0.41 0.53 0.47 0.38 0.39 0.62 0.26 0.58 0.39 0.47 0.32 

Commercial real estate ....................................... 0.62 0.86 0.64 0.60 0.59 0.59 0.46 0.90 0.67 0.74 0.38 

Multifamily residential real estate ........................ 0.25 0.66 0.35 0.27 0.21 0.15 0.42 0.50 0.59 0.72 0.04 

Home equity loans .............................................. 0.20 0.26 0.21 0.23 0.20 0.14 0.15 0.27 0.30 0.15 0.12 

Other 1-4 family residential ................................. 0.88 0.92 0.64 0.98 0.90 0.54 0.44 1.34 1.85 1.87 0.81 

Commercial and industrial loans ............................ 0.89 1.47 1.05 0.95 0.84 0.95 0.60 1.06 0.78 1.06 0.89 

Loans to individuals ............................................... 1.14 0.90 0.69 0.53 1.23 1.56 0.78 0.59 1.30 0.50 1.25 

Credit card loans ................................................. 1.81 1.10 2.05 1.05 1.84 1.93 1.59 1.33 2.17 0.60 1.81 

Other loans to individuals ................................... 0.70 0.89 0.56 0.38 0.75 1.19 0.66 0.37 0.50 0.48 0.41 

All other loans and leases (including farm) ............ 0.31 0.78 0.55 0.50 0.26 0.18 0.23 0.42 0.42 0.72 0.37 

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

Percent of Loans Charged-off (net, YTD) 

0.74 0.92 0.65 0.69 0.76 0.80 0.44 0.86 1.01 0.98 0.72 

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

Construction and development ........................... 0.03 0.04 0.03 0.04 0.02 0.02 0.02 0.04 0.04 0.04 0.00 

Commercial real estate ....................................... 0.05 0.05 0.05 0.07 0.04 0.03 0.04 0.11 0.03 0.05 0.02 

Multifamily residential real estate ........................ 0.02 0.12 0.04 0.02 0.01 0.01 0.06 0.03 0.06 0.06 -0.01 

Home equity loans .............................................. 0.09 0.04 0.05 0.08 0.09 0.02 0.07 0.14 0.13 0.09 0.03 

Other 1-4 family residential ................................. 0.05 0.06 0.05 0.04 0.06 0.04 0.04 0.11 0.04 0.08 0.04 

Commercial and industrial loans ............................ 0.27 0.38 0.40 0.45 0.21 0.11 0.19 0.20 0.40 0.39 0.82 

Loans to individuals ............................................... 2.59 0.66 1.20 1.23 2.84 3.54 1.28 1.39 2.92 0.94 3.39 

Credit card loans ................................................. 4.41 1.95 6.34 2.73 4.47 4.33 4.33 3.58 4.93 1.86 4.91 

Other loans to individuals ................................... 1.35 0.63 0.67 0.78 1.51 2.75 0.69 0.72 0.71 0.69 1.01 

All other loans and leases (including farm) ............ 0.19 0.09 0.24 0.29 0.18 0.02 0.42 0.18 0.14 0.32 0.18 

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

Loans Outstanding (in billions) 

0.50 0.20 0.20 0.20 0.60 0.80 0.20 0.30 0.50 0.20 0.60 

All real estate loans ............................................... $4,063.5 $85.5 $641.3 $661.2 $2,675.4 $789.6 $1,047.6 $819.4 $356.9 $249.8 $800.2 

Construction and development ........................... 417.5 9.6 110.4 104.5 193.0 47.2 137.0 89.2 37.6 50.8 55.7 

Commercial real estate ....................................... 807.0 24.1 222.4 198.9 361.6 156.2 208.9 172.3 76.2 77.8 115.7 

Multifamily residential real estate ........................ 185.6 2.0 26.4 45.1 112.1 48.3 24.1 31.8 8.8 6.1 66.4 

Home equity loans .............................................. 538.1 3.1 35.7 49.0 450.3 65.6 164.1 159.5 65.5 17.3 66.2 

Other 1-4 family residential ................................. 2,019.2 36.8 224.5 255.1 1,502.8 430.9 500.4 353.9 153.3 89.6 491.1 

Commercial and industrial loans ............................ 1,050.4 18.9 110.5 135.2 785.9 250.7 245.4 292.6 86.6 62.4 112.7 

Loans to individuals ............................................... 932.8 11.8 53.0 74.1 793.9 327.1 149.2 172.3 79.9 39.3 165.0 

Credit card loans ................................................. 368.5 0.2 4.6 16.4 347.2 162.5 19.7 40.8 38.6 7.3 99.5 

Other loans to individuals ................................... 564.3 11.5 48.4 57.7 446.7 164.6 129.4 131.5 41.3 32.0 65.5 

All other loans and leases (including farm) ............ 533.0 13.8 32.1 34.0 453.1 165.1 136.0 136.7 53.1 16.2 25.9 

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

Memo: Other Real Estate Owned (in millions) 

6,579.9 130.0 837.0 904.5 4,708.4 1,532.6 1,578.2 1,421.0 576.4 367.9 1,103.9 

All other real estate owned .................................... 4,138.2 269.7 1,143.9 630.4 2,094.2 414.9 1,055.6 1,101.4 443.1 661.9 461.4 

Construction and development ........................... 407.9 28.9 189.9 75.0 114.2 16.9 112.1 84.5 50.1 115.1 29.1 

Commercial real estate ....................................... 1,468.2 104.2 520.6 264.7 578.7 101.3 510.5 302.9 154.2 279.6 119.8 

Multifamily residential real estate ........................ 108.0 6.1 47.8 37.7 16.3 9.5 27.3 22.2 11.9 29.4 7.8 

1-4 family residential ........................................... 2,021.5 111.8 351.0 242.3 1,316.4 224.5 397.1 685.8 209.0 208.6 296.5 

Farmland ............................................................. 69.9 18.9 34.7 11.2 5.0 2.6 4.0 6.2 18.4 29.3 9.4 

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

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

ALL FDIC-INSURED INSTITUTIONS 11 THIRD QUARTER 2005 
 

FDIC Quarterly Banking Profile 

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

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

%Change 

04:3-05:3 

3rd Quarter 

2005 

2nd Quarter 

2005 

1st Quarter 

2005 

4th Quarter 

2004 

3rd Quarter 

2004 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion

 $1 Billion 

to 

$10 Billion 

Greater 

than 

$10 Billion 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ................................. 899 858 781 764 760 18.3 67 526 222 84 

Total assets of institutions reporting derivatives ........................... $7,593,163 $7,431,802 $7,270,002 $7,109,151 $6,977,653 8.8 $4,463 $214,630 $725,173 $6,648,897 

Total deposits of institutions reporting derivatives ........................ 4,950,722 4,831,248 4,713,732 4,609,010 4,476,601 10.6 3,533 168,204 520,191 4,258,795 

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

Derivative Contracts by Underlying Risk Exposure 

99,595,468 96,943,476 91,861,153 88,305,599 84,866,147 17.4 164 9,957 77,938 99,507,408 

Interest rate .......................................................................... 82,895,333 81,860,886 77,989,806 75,531,881 73,022,222 13.5 122 9,562 64,906 82,820,742 

Foreign exchange* ............................................................... 9,724,990 9,383,991 9,251,143 9,026,107 8,573,528 13.4 9 21 4,545 9,720,415 

Equity ................................................................................. 1,343,257 1,194,866 1,174,583 1,112,283 1,043,460 28.7 32 325 1,618 1,341,281 

Commodity & other (excluding credit derivatives) ........................ 538,213 398,589 321,361 288,606 289,200 86.1 0 5 3,250 534,958 

Credit ................................................................................ 5,093,675 4,105,143 3,124,260 2,346,722 1,937,738 162.9 0 44 3,619 5,090,012 

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

Derivative Contracts by Transaction Type 

99,595,468 96,943,476 91,861,153 88,305,599 84,866,147 17.4 164 9,957 77,938 99,507,408 

Swaps ................................................................................ 62,135,068 60,921,599 58,335,659 56,416,576 52,914,550 17.4 30 3,735 45,370 62,085,933 

Futures & forwards ................................................................. 11,928,467 11,919,720 11,634,985 11,370,492 11,375,932 4.9 39 2,138 13,576 11,912,713 

Purchased options ................................................................. 9,796,462 9,428,221 8,785,659 8,873,344 9,065,040 8.1 14 1,930 5,631 9,788,887 

Written options .................................................................... 9,841,295 9,837,801 9,242,869 8,879,583 8,927,268 10.2 81 2,099 9,473 9,829,642 

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

Fair Value of Derivative Contracts 

93,701,292 92,107,341 87,999,172 85,539,995 82,282,789 13.9 164 9,903 74,050 93,617,175 

Interest rate contacts .............................................................. 22,432 20,909 28,403 26,867 24,184 -7.2 1 -24 -190 22,645 

Foreign exchange contacts ...................................................... 73 828 1,415 -1,379 -628 -111.6 0 0 11 62 

Equity contracts .................................................................... -5,130 -2,268 -1,521 -1,308 4,029 N/M 1 0 9 -5,139 

Commodity & other (excluding credit derivatives) ........................ 3,856 1,257 3,551 1,941 1,458 164.5 0 0 21 3,835 

Credit derivatives as guarantor ................................................ -368 -847 6,821 15,680 9,856 N/M 0 0 0 -369 

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

Derivative Contracts by Maturity** 

1,876 2,510 -5,937 -15,124 -8,895 N/M 0 -8 -12 1,896 

Interest rate contracts ............................................... < 1 year 16,642,430 17,138,062 15,560,325 15,919,803 16,212,436 2.7 30 2,770 15,401 16,624,229 

............................ 1-5 years 27,693,826 26,722,873 26,568,782 25,893,298 24,310,740 13.9 15 3,760 23,145 27,666,906 

............................ > 5 years 18,865,697 18,113,546 17,381,274 16,491,764 15,364,195 22.8 5 922 15,550 18,849,220 

Foreign exchange contracts ....................................... < 1 year 5,437,648 5,318,532 5,192,310 5,348,729 4,862,841 11.8 9 10 3,303 5,434,327 

............................ 1-5 years 1,355,674 1,313,066 1,314,144 1,286,372 1,250,835 8.4 0 0 241 1,355,433 

............................ > 5 years 687,274 684,755 691,433 760,131 644,084 6.7 0 0 0 687,274 

Equity contracts ....................................................... < 1 year 342,343 342,334 275,704 272,658 237,624 44.1 1 33 251 342,058 

............................ 1-5 years 1,097,573 952,801 892,602 735,736 646,479 69.8 18 136 440 1,096,979 

............................ > 5 years 268,326 166,107 173,442 139,858 86,222 211.2 0 0 31 268,294 

Commodity & other contracts ..................................... < 1 year 182,218 154,314 128,653 107,032 101,318 79.8 0 0 5 182,214 

............................ 1-5 years 647,773 480,423 299,126 237,581 212,627 204.7 0 4 14 647,754 

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

Risk-Based Capital: Credit Equivalent Amount 

163,351 81,626 55,119 42,450 32,281 406.0 0 0 0 163,351 

Total current exposure to tier 1 capital (%) ................................. 38.7 37.6 38.5 44.0 37.5 0.5 0.2 0.6 45.3 

Total potential future exposure to tier 1 capital (%) ..................... 73.6 76.5 80.5 76.3 73.5 0.3 0.2 0.7 86.2 

Total exposure (credit equivalent amount) to tier 1 capital (%) ......... 112.4 114.1 119.0 120.4 111.0 0.7 0.5 1.3 131.5 

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

HELD FOR TRADING 

23.0 14.0 1.0 5.0 92.0 -75.0 0.0 0.0 0.0 23.0 

Number of institutions reporting derivatives ................................. 128 120 121 117 124 3.2 6 31 39 52 

Total assets of institutions reporting derivatives ........................... 6,095,314 5,911,924 5,874,460 5,687,915 5,564,219 9.5 326 14,286 167,859 5,912,843 

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

Derivative Contracts by Underlying Risk Exposure 

3,924,223 3,795,345 3,765,359 3,689,919 3,577,651 9.7 255 10,842 115,433 3,797,692 

Interest rate .......................................................................... 80,439,127 79,451,914 75,576,677 73,012,099 70,526,446 14.1 2 175 10,736 80,428,214 

Foreign exchange ................................................................. 8,822,150 8,554,016 8,412,594 8,506,865 7,833,447 12.6 0 10 3,432 8,818,709 

Equity ................................................................................ 1,339,268 1,192,086 1,170,944 1,109,519 1,040,859 28.7 0 35 169 1,339,063 

Commodity & other .............................................................. 534,963 398,536 321,329 288,574 289,138 85.0 0 0 5 534,958 

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

Trading Revenues: Cash & Derivative Instruments 

91,135,508 89,596,552 85,481,544 82,917,057 79,689,890 14.4 3 220 14,342 91,120,943 

Interest rate .......................................................................... 1,642 315 1,634 880 -449 -465.7 0 0 7 1,635 

Foreign exchange ................................................................. 1,454 1,283 1,700 1,274 1,162 25.1 0 0 -2 1,456 

Equity ................................................................................ 1,243 130 887 348 485 156.3 0 0 1 1,242 

Commodity & other (including credit derivatives) ........................ 507 166 212 -307 24 N/M 0 0 0 507 

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

Share of Revenue 

4,846 1,895 4,433 2,194 1,222 296.6 0 0 6 4,840 

Trading revenues to gross revenues (%) .................................... 4.4 1.9 4.5 2.4 1.5 0.0 0.1 0.2 4.5 

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

HELD FOR PURPOSES OTHER THAN TRADING 

25.5 11.4 22.6 14.0 7.9 0.0 0.5 1.2 26.1 

Number of institutions reporting derivatives ................................. 840 799 724 713 702 19.7 61 494 205 80 

Total assets of institutions reporting derivatives ........................... 7,427,974 7,306,339 7,083,907 6,998,707 6,798,200 9.3 4,111 200,876 667,913 6,555,073 

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

Derivative Contracts by Underlying Risk Exposure 

4,829,801 4,731,111 4,582,273 4,519,742 4,371,932 10.5 3,260 157,284 476,558 4,192,699 

Interest rate .......................................................................... 2,456,206 2,408,972 2,413,129 2,519,782 2,495,775 -1.6 120 9,387 54,170 2,392,529 

Foreign exchange ................................................................. 102,338 98,984 100,828 100,360 94,461 8.3 9 1 844 101,485 

Equity ................................................................................ 3,989 2,780 3,639 2,764 2,600 53.4 32 290 1,449 2,218 

Commodity & other .............................................................. 3,250 53 32 32 62 N/M 0 4 3,245 0 

Total notional amount ........................................................... 2,565,784 2,510,789 2,517,627 2,622,938 2,592,899 -1.0 161 9,683 59,708 2,496,232 

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.
 

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

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

THIRD QUARTER 2005 12 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

Insurance Fund Indicators 

� BIF Reserve Ratio Dips One Basis Point to 1.25 Percent, the Lowest Level in Three Years 

� SAIF Reserve Ratio Declines to 1.30 Percent 

� No Insured Institutions Fail, Marking the Fifth Consecutive Quarter 

During the third quarter of 2005, total assets of the nation’s 

8,854 FDIC-insured institutions increased by $225.7 billion 

to $10.7 trillion. Deposits increased by $147.7 billion during the period, funding 65 percent of the growth in assets. 

Domestic office deposits grew by $140.1 billion (2.4 percent) while deposits in foreign offices grew by $7.6 billion 

(0.8 percent). Deposits in domestic accounts greater than 

$100 thousand increased by $83.4 billion and deposits in 

accounts less than $100 thousand rose by $57.1 billion. 

Deposits insured by the FDIC increased by 1.9 percent during the quarter and by 7.7 percent during the previous 12 

months. During the third quarter, insured deposits increased 

at 5,106 institutions, remained unchanged at 51 institutions, 

and declined at 3,651 institutions. For the three months 

ending on September 30, deposits insured by the Bank 

Insurance Fund (BIF) grew by 1.7 percent and for the first 

time surpassed the $2.8 trillion mark. Deposits insured by 

the Savings Association Insurance Fund (SAIF) increased 

by 2.5 percent to $1.0 trillion. The cumulative four quarter 

growth of BIF-insured deposits was 7.9 percent as compared 

to SAIF-insured deposits which increased by 6.4 percent. 

The BIF grew by 0.7 percent ($240 million) during the third 

quarter, ending the quarter with a balance of $35.3 billion 

(unaudited). Most of the increase was attributable to 

investment income and from a $65 million reduction in 

reserves previously set aside for estimated failure costs. The 

growth of the BIF was not strong enough to offset the 

growth of BIF-insured deposits. As a result, the BIF reserve 

ratio declined 1 basis point to 1.25 percent. The BIF reserve 

ratio has declined during each of the last four quarters mainly as a result of rapid deposit growth. The SAIF increased 

by 0.9 percent during the third quarter, rising for the first 

time above $13.0 billion. The growth of the SAIF did not 

keep pace with the quarterly increase in SAIF-insured 

deposits causing the SAIF reserve ratio to decline from 1.32 

on June 30 to 1.30 on September 30. Robust growth of 

SAIF-insured deposits has caused the SAIF reserve ratio to 

decline during each of the last three quarters. 

No insured institutions failed during the third quarter of 

2005, making this the fifth consecutive quarter without a 

failure. The most recent bank failure occurred in June 2004. 

9/98 9/99 9/00 9/01 9/02 9/03 9/04 9/05 

0 

2 

4 

6 

8 

Percent 

Deposits insured by BIF 

Deposits insured by SAIF 

*Cumulative previous 4 quarters 

5.5% 

8.0% 7.9% 

6.4% 

Annual* Estimated Insured Deposit Growth 

Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 

2005 2005 2005 2004 2004 2004 2004 

Savings Association Insurance Fund 

3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 

2005 2005 2005 2004 2004 2004 2004 

Beginning Fund Balance $35,094 $34,824 $34,787 $34,467 $34,110 $34,164 $33,782 

Unrealized Gain (Loss) on 

Available-For-Sale Securities –36 –53 –127 –32 77 –332 175 

Provision for Insurance Losses –65 –46 –6 –136 –64 –32 –37 

All Other Income, Net of Expenses 211 277 158 216 216 246 170 

Total Fund Balance Change 240 270 37 320 357 –54 382 

Ending Fund Balance $35,334 $35,094 $34,824 $34,787 $34,467 $34,110 $34,164 

$12,929 $12,793 $12,720 $12,523 $12,411 $12,394 $12,240 

–11 –18 –41 –10 24 –109 59 

0 –10 –14 –95 24 –2 1 

121 144 100 112 112 124 96 

110 136 73 197 112 17 154 

$13,039 $12,929 $12,793 $12,720 $12,523 $12,411 $12,394 

ALL FDIC-INSURED INSTITUTIONS 13 THIRD QUARTER 2005 
 

 

1.35 

FDIC Quarterly Banking Profile 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

Preliminary 

3rd Quarter 

2005 

2nd Quarter 

2005 

3rd Quarter 

2004 

%Change 

04:3-05:3 

Reserve ratio (%)................................................................. 1.25 1.26 1.32 -5.2 

Fund Balance ..................................................................... $35,334 $35,094 $34,467 2.5 

Estimated insured deposits ................................................... 2,776,974 2,825,366 2,611,916 8.2 

SAIF-member Oakars......................................................... 109,644 112,027 105,554 6.1 

BIF-members .................................................................. 2,667,330 2,713,339 2,506,362 8.3 

Assessment base ............................................................... 4,665,351 4,782,354 4,387,985 9.0 

SAIF-member Oakars......................................................... 132,635 138,391 111,307 24.3 

BIF-members .................................................................. 

Savings Association Insurance Fund 

 4,532,716 4,643,963 4,276,678 8.6 

Reserve ratio (%) ............................................................... 1.30 1.32 1.33 -2.3 

Fund Balance ..................................................................... $13,039 $12,929 $12,523 4.1 

Estimated insured deposits ................................................... 980,711 1,005,554 943,666 6.6 

BIF-member Oakars ......................................................... 446,952 451,958 441,935 2.3 

SAIF-member Sassers ...................................................... 87,927 92,146 92,183 0.0 

Other SAIF members ......................................................... 445,831 461,451 409,548 12.7 

Assessment base ............................................................... 1,213,522 1,254,070 1,128,078 11.2 

BIF-member Oakars ......................................................... 473,247 484,578 447,269 8.3 

SAIF-member Sassers ...................................................... 117,061 124,082 119,590 3.8 

Other SAIF members ......................................................... 645,411 561,218 623,215 15.0 

Target 

Ratio 

1.25 

Insurance Fund Reserve Ratios* 

Percent of Insured Deposits 1.42 

1.40 

BIF Ratio 1.38 SAIF Ratio 1.37 1.37 1.37 

1.36 1.36 

1.34 1.34 

1.33 1.33 

1.32 1.32 1.32 1.32 1.32 

1.31 

1.30 1.30 

1.28 1.28 1.28 

1.27 

1.26 1.26 

1.25 

12/00 12/0112/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 6/05 9/05 

Fund Balances and Insured Deposits* 

($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

12/00 30,975 2,299,932 10,759 755,156 

12/01 30,439 2,409,566 10,935 801,171 

3/02 30,697 2,495,498 11,049 810,902 

6/02 31,187 2,490,954 11,323 818,806 

9/02 31,383 2,513,160 11,586 833,029 

12/02 32,050 2,524,474 11,747 859,205 

3/03 32,382 2,531,307 11,906 867,908 

6/03 32,800 2,562,053 12,083 876,305 

9/03 33,462 2,541,540 12,186 872,777 

12/03 33,782 2,556,288 12,240 896,123 

3/04 34,164 2,585,283 12,394 914,182 

6/04 34,110 2,605,707 12,411 926,769 

9/04 34,467 2,611,916 12,523 943,666 

12/04 34,787 2,677,355 12,720 951,217 

3/05 34,824 2,724,389 12,793 965,445 

6/05 35,094 2,776,974 12,929 980,711 

9/05 35,334 2,825,366 13,039 1,005,554 

* Estimated insured deposits are based on preliminary data. A reserve ratio is the fund balance as a percentage of estimated insured deposits. 

As with other Call Report items, prior periods may reflect adjustments. As a result, prior period reserve ratios may differ from previously 

reported values. Only year-end fund balances are audited by GAO. Fund balances for the most recent period are unaudited. BIF-insured 

deposit totals include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 

2005** 2004** 2004 2003 2002 2001 2000 

BIF Members 

Number of institutions .................................. ... ......... 0 3 3 3 10 3 6 

Total assets ......................................... ... ............... $0 $151 $151 $1,097 $2,508 $54 $378 

SAIF Members 

Number of institutions ........................... ... ............... 0 1 1 0 1 1 1 

Total assets ........................................ ... ............... $0 $15 $15 $0 $50 $2,200 $30 

**Through September 30. 

THIRD QUARTER 2005 14 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE III-B. Selected Indicators, By Fund Membership* 

(dollar figures in millions) 

BIF Members 

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

BIF-member Oakars ................................. 

Other BIF-members ................................. 

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

Total deposits ............................................. 

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

Return on assets (%) ................................. 

Return on equity (%) .................................... 

Noncurrent assets plus OREO to assets (%) ... 

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

Assets of problem institutions ........................ 

Number of failed/assisted institutions ............... 

Assets of failed/assisted institutions ............... 

SAIF Members 

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

SAIF-member Oakars .............................. 

Other SAIF-members ................................. 

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

Total deposits ............................................. 

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

Return on assets (%) .................................... 

Return on equity (%) .................................... 

Noncurrent assets plus OREO to assets (%) ... 

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

Assets of problem institutions ........................ 

Number of failed/assisted institutions ............... 

Assets of failed/assisted institutions ............... 

2005** 2004** 2004 2003 2002 2001 2000 

7,748 

758 

6,990 

$9,206,648 

6,072,380 

89,849 

1.34 

13.16 

0.49 

58 

$18,714 

0 

$0 

1,106 

146 

960 

$1,493,376 

896,294 

12,103 

1.13 

10.04 

0.58 

10 

$2,151 

0 

$0 

7,875 

763 

7,112 

$8,565,430 

5,589,951 

81,621 

1.32 

14.04 

0.57 

86 

$24,446 

3 

$151 

1,150 

147 

1,003 

$1,311,785 

793,762 

10,117 

1.09 

10.29 

0.52 

9 

$625 

1 

$15 

7,839 

773 

7,066 

$8,744,799 

5,773,936 

108,672 

1.31 

13.75 

0.54 

69 

$27,161 

3 

$151 

1,136 

149 

987 

$1,360,815 

810,621 

13,740 

1.09 

10.14 

0.50 

11 

$1,089 

1 

$15 

7,995 

766 

7,229 

$7,897,823 

5,216,328 

106,205 

1.40 

15.21 

0.76 

102 

$28,812 

3 

$1,097 

1,186 

146 

1,040 

$1,177,455 

744,022 

14,307 

1.25 

13.84 

0.69 

14 

$1,105 

0 

$0 

8,125 8,327 8,572 

801 766 743 

7,324 7,561 7,829 

$7,335,658 $6,857,373 $6,510,744 

4,854,908 4,567,603 4,337,661 

92,452 76,388 73,430 

1.32 1.14 1.18 

14.31 12.89 13.86 

0.91 0.89 0.72 

116 90 74 

$32,176 $31,881 $10,787 

10 3 6 

$2,508 $54 $378 

1,229 1,287 1,332 

133 130 122 

1,096 1,157 1,210 

$1,099,965 $1,011,736 $952,154 

713,599 621,824 577,100 

12,462 10,623 8,071 

1.17 1.11 0.89 

12.79 13.46 11.12 

0.79 0.75 0.65 

20 24 20 

$6,751 $7,923 $13,053 

1 1 1 

$50 $2,200 $30 

*Excludes insured branches of foreign banks (IBAs)
 

**Through September 30, ratios annualized where appropriate.
 

TABLE IV-B. Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

(dollar figures in millions) 

September 30, 2005 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Depostis*** 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks ..................... 7,540 8,903,600 5,014,270 2,565,640 480,745 3,046,386 

BIF-member ............................................. 7,430 8,696,073 4,885,964 2,527,408 423,475 2,950,883 

SAIF-member ............................................. 110 207,526 128,306 38,232 57,271 95,503 

FDIC-Supervised ....................................... 4,795 1,663,222 1,229,135 721,974 110,740 832,714 

OCC-Supervised ....................................... 1,846 5,946,140 3,012,881 1,452,175 281,026 1,733,201 

Federal Reserve-Supervised ........................ 899 1,294,238 772,254 391,491 88,980 480,471 

FDIC-Insured Savings Institutions ..................... 1,314 1,796,424 1,051,652 258,790 524,809 783,599 

OTS-Supervised Savings Institutions ............... 864 1,475,455 823,806 138,392 473,307 611,699 

BIF-member ............................................. 43 250,492 101,861 66,444 11,856 78,300 

SAIF-member ............................................. 821 1,224,963 721,945 71,948 461,451 533,399 

FDIC-Supervised State Savings Banks ............... 450 320,969 227,846 120,398 51,502 171,900 

BIF-member ............................................. 275 260,082 183,747 118,551 16,627 135,178 

SAIF-member ............................................. 

Total Commercial Banks and 

175 60,887 44,098 1,847 34,875 36,722 

Savings Institutions .................................... 8,854 10,700,024 6,065,922 2,824,430 1,005,554 3,829,984 

BIF-member ................................................ 7,748 9,206,648 5,171,573 2,712,403 451,958 3,164,360 

SAIF-member ............................................. 

Other FDIC-Insured Institutions 

1,106 1,493,376 894,349 112,027 553,597 665,624 

U.S. Branches of Foreign Banks ..................... 13 10,632 6,123 936 0 936 

Total FDIC-Insured Institutions ........................ 8,867 10,710,656 6,072,045 2,825,366 1,005,554 3,830,920 

***Excludes $903 billion in foreign office deposits, which are uninsured. 

ALL FDIC-INSURED INSTITUTIONS 15 THIRD QUARTER 2005 
FDIC Quarterly Banking Profile FDIC Quarterly Banking Profile 

TABLE V-B. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of September 30, 2005
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2006
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

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

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

2. Adequately capitalized

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

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

3. Undercapitalized

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

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

7,307 

$4,690 

49 

$7 

0 

$0 

94.2% 

98.1% 

0.6% 

0.1% 

0.0% 

0.0% 

344 4.4% 

$72 1.5% 

5 0.1% 

$1 0.0% 

0 0.0% 

$0 0.0% 

47 

$13 

7 

$0 

2 

$0 

0.6%

0.3% 

0.1%

0.0% 

0.0%

0.0% 

NOTE: "Number" reflects the number of BIF members; "Base" reflects the BIF-assessable deposits held by both SAIF and BIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of September 30, 2005
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2006
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

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

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

2. Adequately capitalized

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

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

3. Undercapitalized

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

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

1,034 

$1,231 

3 

$0 

0 

$0 

93.5% 

98.1% 

0.3% 

0.0% 

0.0% 

0.0% 

58 5.2% 

$21 1.7% 

0 0.0% 

$0 0.0% 

0 0.0% 

$0 0.0% 

11 

$2 

0 

$0 

0 

$0 

1.0%

0.2% 

0.0%

0.0% 

0.0%

0.0% 

NOTE: "Number" reflects the number of SAIF members; "Base" reflects the SAIF-assessable deposits held by both BIF and SAIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. 

Assessment Rate Schedule
 

First Semiannual 2006 Assessment Period
 

Cents per $100 of Assessable Deposits
 

Supervisory Risk Subgroup 

Capital Group A B C 

1. Well-capitalized .................................... 0 3 17 

2. Adequately capitalized ........................... 3 10 24 

3. Undercapitalized .................................... 10 24 27 

Note: Rates for the BIF and the SAIF are set separately by the FDIC. 

Currently, the rate schedules are identical. 

THIRD QUARTER 2005 16 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

Notes To Users 

This publication contains financial data and other information for 

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

and provide information regarding the comparability of source data 

and reporting differences over time. 

Tables I-A through VI-A. 

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

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

aggregated for all insured commercial banks and state-chartered savings banks that file quarterly Call Reports. Some tables are arrayed 

by groups of FDIC-insured institutions based on predominant types of 

asset concentration, while other tables aggregate institutions by asset 

size and geographic region. Quarterly and full-year data are provided 

for selected indicators, including aggregate condition and income 

data, performance ratios, condition ratios and structural changes, as 

well as past due, noncurrent and charge-off information for loans outstanding and other assets. 

Tables I-B through V-B. 

A separate set of tables(Tables I-B through V-B) provides quarterly 

and annual data related to the bank (BIF) and savings association 

(SAIF) insurance funds, closed/assisted institutions, and assessments. 

Summary balance-sheet and earnings data are provided for commercial banks and savings institutions according to insurance fund membership. BIF-member institutions may acquire SAIF-insured deposits, 

resulting in institutions with some deposits covered by both insurance funds. Also, SAIF members may acquire BIF-insured deposits. 

Therefore, the BIF-member and the SAIF-member tables each 

include deposits from both insurance funds. Prior to the fourth quarter of 2004, all SAIF deposits held by BIF-member institutions and 

all BIF deposits held by SAIF members (Adjusted Attributable 

Deposit Amounts, or AADAs) were treated as fully insured. Beginning in the fourth quarter of 2004, the insured portions of newly 

acquired AADAs are based on the estimated insured share of 

deposits at the acquired institution. Effective with this change, the 

insured portion of the AADA is assumed to grow at the same rate as 

each institution’s total estimated insured deposits. Depository institutions that are not insured by the FDIC through either the BIF or 

SAIF are not included in the FDIC Quarterly Banking Profile. U.S. 

branches of institutions headquartered in foreign countries and nondeposit 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 charter. 

DATA SOURCES 

The financial information appearing in this publication is obtained 

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

stored on and retrieved from the FDIC’s Research Information System (RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial Reports to 

provide closer conformance with the reporting and accounting 

requirements of the FFIEC Call Reports. Parent institutions are 

required to file consolidated reports, while their subsidiary financial 

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

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

for any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance ratios 

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

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

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

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

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

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

in the current period. 

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

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

and liabilities located outside of the reporting institution’s home 

state. 

ACCOUNTING CHANGES 

Purchased Impaired Loans and Debt Securities — Statement of Position 

03-3, Accounting for Certain Loans or Debt Securities Acquired in a 

Transfer. The SOP applies to loans and debt securities acquired in fiscal years beginning after December 15, 2004. In general, this Statement of Position applies to "purchased impaired loans and debt 

securities," i.e., loans and debt securities that a bank has purchased, 

including those acquired in a purchase business combination, when it 

is probable, at the purchase date, that the bank will be unable to collect all contractually required payments receivable. Banks must follow Statement of Position 03-3 for Call Report purposes. The SOP 

does not apply to the loans that a bank has originated, prohibits "carrying over" or creation of valuation allowances in the initial accounting and any subsequent valuation allowances reflect only those losses 

incurred by the investor after acquisition. 

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

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

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

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

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

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

GNMA loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms 

FASB Interpretation No. 45 — In November 2002, the FASB issued 

Interpretation No. 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of 

Others. This interpretation clarifies that a guarantor is required to 

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

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

value of the obligation undertaken in issuing the guarantee. Banks 

apply the initial recognition and measurement provisions of Interpretation No. 45 on a prospective basis to guarantees issued or modified 

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

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

2003, is not revised. 

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

Consolidation of Variable Interest Entities, in January 2003 and revised 

it in December 2003. Generally, banks with variable interests in 

variable interest entities created after December 31, 2003, must consolidate them. The timing of consolidation varies with certain situations with application as late as 2005. The assets and liabilities of a 

consolidated variable interest entity are reported on a line-by-line 

basis according to the asset and liability categories shown on the 

bank’s balance sheet, as well as related income items. Most small 

banks are unlikely to have any “variable interests” in variable interest 

entities. 

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

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

amortized each quarter. In addition companies are required to test 

for impairment of both goodwill and other intangibles once each fiscal year. The year 2002, the first fiscal year affected by this accounting change, has been designated a transitional year and the amount 

of initial impairments are to be recorded as extraordinary losses on a 

“net of tax” basis (and not as noninterest expense). Subsequent 

annual review of intangibles and goodwill impairment may require 

additional noninterest expense recognition. FASB Statement No. 

147 clarifies that acquisitions of financial institutions (except transactions between two or more mutual enterprises), including branch 

ALL FDIC-INSURED INSTITUTIONS 17 THIRD QUARTER 2005 
 

FDIC Quarterly Banking Profile 

acquisitions that meet the definition of a business combination, 

should be accounted for by the purchase method under FASB Statement No. 141. This accounting standard includes transition provisions that apply to unidentifiable intangible assets previously 

accounted for in accordance with FASB Statement No. 72. If the 

transaction (such as a branch acquisition) in which an unidentifiable 

intangible asset arose does not meet the definition of a business combination, this intangible asset is not be reported as “Goodwill” on the 

Call Report balance sheet. Rather, this unidentifiable intangible asset 

is reported as “Other intangible assets,” and must continue to be 

amortized and the amortization expense should be reported in the 

Call Report income statement. 

FASB Statement No. 133 Accounting for Derivative Instruments and Hedging 

Activities — All banks must recognize derivatives as either assets or 

liabilities on the balance sheet, measured at fair value. A derivative 

may be specifically designated as a “fair value hedge,” a “cash flow 

hedge,” or a hedge of a foreign currency exposure. The accounting 

for changes in the value of a derivative (gains and losses) depends on 

the intended use of the derivative, its resulting designation, and the 

effectiveness of the hedge. Derivatives held for purposes other than 

trading are reported as “other assets” (positive fair values) or “other 

liabilities” (negative fair values). For a fair value hedge, the gain or 

loss is recognized in earnings and “effectively” offsets loss or gain on 

the hedged item attributable to the risk being hedged. Any ineffectiveness of the hedge could result in a net gain or loss on the income 

statement. Accumulated net gains (losses) on cash flow hedges are 

recorded on the balance sheet as “accumulated other comprehensive 

income” and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of 

the derivative changes. FASB Statement No. 149, Amendment of 

Statement 133 on Derivative Instruments and Hedging Activities 

provides guidance on the circumstances in which a loan commitment 

must be accounted for as derivative. Under Statement No. 149, loan 

commitments that relate to the origination of mortgage loans that 

will be held for sale, commonly referred to as interest rate lock commitments, must be accounted for as derivatives on the balance sheet 

by the issuer of the commitment. 

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal funds 

sold, securities purchased with agreements to resell, fair market value 

of derivatives, and other assets. 

All other liabilities — bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance sheet credit losses, 

fair market value of derivatives, and other liabilities. 

Assessment base distribution — assessable deposits consist of BIF and 

SAIF deposits in banks’ domestic offices with certain adjustments. 

Each institution’s assessment depends on its assigned risk-based capital category and supervisory risk subgroup: 

Total Tier 1
 

Risk-Based Risk-Based Tier 1 Tangible
 

(Percent) Capital * Capital * Leverage Equity
 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

undercapitalized <6 or <3 or <3 and >2 

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based assessment rules 

combine the three lowest capital rating categories into a single 

“undercapitalized” group. Supervisory risk subgroup assignments are 

based on supervisory ratings. Generally, the strongest institutions 

(those rated 1 or 2) are in subgroup A, those rated 3 are in subgroup 

B, and those rated 4 or 5 are in subgroup C. 

Assets securitized and sold — total outstanding principal balance of 

assets sold and securitized with servicing retained or other seller-provided credit enhancements. 

BIF-insured deposits (estimated) — the portion of estimated insured 

deposits that is insured by the BIF. For SAIF-member “Oakar” institutions, it is based on the adjusted attributable amount acquired from 

BIF members. 

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. 

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 — a contract 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 — a contract 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 — an obligation between two parties to exchange a series of cash flows at periodic intervals (settlement dates), for a specified period. The cash flows of a swap are either fixed, or determined for each settlement date by multiplying the quantity

(notional principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the

notional principal is used to calculate each payment but is not

exchanged. 

Derivatives underlying risk exposure — the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk and operational risk, as well as, interest rate risk. 

Domestic deposits to total assets — total domestic office deposits as a 

percent of total assets on a consolidated basis.
 

Earning assets — all loans and other investments that earn interest or
 

dividend income.
 

Efficiency Ratio — Noninterest expense less amortization of intangible
 

assets as a percent of net interest income plus noninterest income.
 

This ratio measures the proportion of net operating revenues that are
 

absorbed by overhead expenses, so that a lower value indicates
 

greater efficiency.
 

Estimated insured deposits — in general, insured deposits are total
 

domestic deposits minus estimated uninsured deposits. While the
 

uninsured estimate is calculated as the sum of the excess amounts in
 

accounts over $100,000, beginning June 30, 2000 the amount of esti-


THIRD QUARTER 2005 18 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

mated uninsured deposits was adjusted to consider a financial institution’s better estimate. Since March 31, 2002, all institutions provide 

a reasonable estimate of uninsured deposits from their systems and 

records. 

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 some insurance funds in order to continue 

operating. 

FHLB advances — all borrowings by FDIC insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers and by TFR filers. 

Goodwill and other intangibles — intangible assets include servicing 

rights, purchased credit card relationships and other identifiable 

intangible assets. 

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.
 

Mortgage-backed securities — certificates of participation in pools of
 

residential mortgages and collateralized mortgage obligations issued or
 

guaranteed by government-sponsored or private enterprises. Also, see
 

“Securities”, below.
 

Net charge-offs — total loans and leases charged off (removed from
 

balance sheet because of uncollectibility), less amounts recovered on
 

loans and leases previously charged off.
 

Net interest margin — the difference between interest and dividends
 

earned on interest-bearing assets and interest paid to depositors and
 

other creditors, expressed as a percentage of average earning assets.
 

No adjustments are made for interest income that is tax exempt.
 

Net loans to total assets — loans and lease financing receivables, net of
 

unearned income, allowance and reserves, as a percent of total assets
 

on a consolidated basis.
 

Net operating income — income excluding discretionary transactions
 

such as gains (or losses) on the sale of investment securities and
 

extraordinary items. Income taxes subtracted from operating income
 

have been adjusted to exclude the portion applicable to securities
 

gains (or losses).
 

Noncurrent assets — the sum of loans, leases, debt securities and other 

assets that are 90 days or more past due, or in nonaccrual status. 

Noncurrent loans & leases — the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting — the number of institutions that 

actually filed a financial report.
 

Other borrowed funds — federal funds purchased, securities sold with
 

agreements to repurchase, demand notes issued to the U.S. Treasury,
 

FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation
 

losses on assets held in trading accounts.
 

Other real estate owned — primarily foreclosed property. Direct and
 

indirect investments in real estate ventures are excluded. The
 

amount is reflected net of valuation allowances. For institutions that
 

file a Thrift Financial Report (TFR), the valuation allowance subtracted also includes allowances for other repossessed assets. Also, for
 

TFR filers the components of other real estate owned are reported
 

gross of valuation allowances. 


Percent of institutions with earnings gains — the percent of institutions
 

that increased their net income (or decreased their losses) compared
 

to the same period a year earlier.
 

“Problem” institutions — federal regulators assign a composite rating to
 

each financial institution, based upon an evaluation of financial and
 

operational criteria. The rating is based on a scale of 1 to 5 in
 

ascending order of supervisory concern. “Problem” institutions are
 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated either 

a “4” or “5”. For all BIF-member institutions, and for all SAIF-member institutions for which the FDIC is the primary federal regulator, 

FDIC composite ratings are used. For all SAIF-member institutions 

whose primary federal regulator is the OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease losses on a consolidated basis. Between March 31, 2001 and March 31, 2003 

reserves for losses did not include the allocated transfer risk reserve, 

which was netted from loans and leases. 

Restructured loans and leases — loan and lease financing receivables 

with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance with the modified 

terms. 

Retained earnings — net income less cash dividends on common and 

preferred stock for the reporting period.
 

Return on assets — net income (including gains or losses on securities
 

and extraordinary items) as a percentage of average total assets. The
 

basic yardstick of bank profitability.
 

Return on equity — net income (including gains or losses on securities
 

and extraordinary items) as a percentage of average total equity capital.
 

Risk-weighted assets — assets adjusted for risk-based capital definitions
 

which include on-balance-sheet as well as off-balance-sheet items
 

multiplied by risk-weights that range from zero to 100 percent. A
 

conversion factor is used to assign a balance sheet equivalent amount
 

for selected off-balance-sheet accounts.
 

SAIF-insured deposits (estimated) — the portion of estimated insured
 

deposits that is insured by the SAIF. For BIF-member “Oakar” institutions, it is based on the adjusted attributable amount acquired from
 

SAIF members.
 

Securities — excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”,
 

which are reported at amortized cost (book value), and securities designated as “available-for-sale”, reported at fair (market) value.
 

Securities gains (losses) — realized gains (losses) on held-to-maturity
 

and available-for-sale securities, before adjustments for income taxes.
 

Thrift Financial Report (TFR) filers also include gains (losses) on the
 

sales of assets held for sale.
 

Subchapter S Corporation — A Subchapter S corporation is treated as a
 

pass-through entity, similar to a partnership, for federal income tax
 

purposes. It is generally not subject to any federal income taxes at
 

the corporate level. This can have the effect of reducing institutions’
 

reported taxes and increasing their after-tax earnings.
 

Troubled real estate asset rate — noncurrent real estate loans plus
 

other real estate owned as a percent of total real estate loans and
 

other real estate owned.
 

Trust assets — market value, or other reasonably available value of
 

fiduciary and related assets, to include marketable securities, and
 

other financial and physical assets. Common physical assets held
 

in fiduciary accounts include real estate, equipment, collectibles,
 

and household goods. Such fiduciary assets are not included in the
 

assets of the financial institution.
 

Unearned income & contra accounts — unearned income for Call 

Report filers only. 

Unused loan commitments — includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured by 

commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.) 

Volatile liabilities — the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities sold under 

agreements to repurchase, and other borrowings. 

Yield on earning assets — total interest, dividend and fee income 

earned on loans and investments as a percentage of average earning 

assets. 

ALL FDIC-INSURED INSTITUTIONS 19 THIRD QUARTER 2005 
The FDIC Quarterly Banking Profile is published quarterly by the Division of Insurance and Research of the 

Federal Deposit Insurance Corporation. Single copy subscriptions of the FDIC Quarterly Banking Profile can be 

obtained through the FDIC Public Information Center, 801 17th Street, NW, Washington, DC 20434; Telephone 

(202) 416-6940 or (877) 275-3342; or Email: publicinfo@fdic.gov.

The FDIC Quarterly Banking Profile is available on-line by visiting the FDIC’s website at www.fdic.gov. Comparable financial data for individual institutions can now be obtained from the FDIC’s Institution Directory (I.D.) 

System on this web site. 

Acting Chairman Martin J. Gruenberg 

Director, Division of Insurance Arthur J. Murton 

and Research 

Media Inquiries (202) 898-6993

Authors Richard Brown 

Associate Director, Risk Analysis Branch 

Chief Economist, FDIC 

(202) 898-3927

Kevin Brown 

(202) 898-6817

Ross Waldrop 

(202) 898-3951