FDIC Quarterly

Quarterly Banking Profile:

Third Quarter 2013

Community Bank Developments 

in 2012

2013, Volume 7, Number 4
Chairman Martin J. Gruenberg

Director, Division of Insurance Diane Ellis

and Research

Executive Editors Richard A. Brown

Maureen E. Sweeney

Managing Editors Matthew Green

Jack Reidhill

Philip A. Shively

Editors Peggi Gill

Frank Solomon

Publication Manager Lynne Montgomery

Media Inquiries (202) 898-6993

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

Insurance Corporation and contains a comprehensive summary of the most current financial results 

for the banking industry. Feature articles appearing in the FDIC Quarterly range from timely analysis 

of economic and banking trends at the national and regional level that may affect the risk exposure of 

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2013, Volume 7, Number 4

FDIC Quarterly

The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance

Corporation. Some of the information used in the preparation of this publication was obtained from publicly available sources 

that are considered reliable. However, the use of this information does not constitute an endorsement of its accuracy by the 

Federal Deposit Insurance Corporation. Articles may be reprinted or abstracted if the publication and author(s) are credited. 

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

Quarterly Banking Profile: Third Quarter 2013

FDIC-insured institutions reported aggregate net income of $36 billion in the third quarter of 2013, a 

$1.5 billion (3.9 percent) decline from the $37.5 billion in profits that the industry reported a year earlier. 

This is the first time in 17 quarters—since the second quarter of 2009—that earnings registered a year-overyear decline. The earnings decline was mainly attributable to a $4 billion increase in litigation expenses at 

one institution. Lower revenue from reduced mortgage activity and lower gains on asset sales also contributed to the reduction in earnings. Half of the 6,891 insured institutions reporting had year-over-year growth 

in earnings, while half reported declines. The proportion of banks that were unprofitable fell to 8.6 percent, 

from 10.7 percent a year earlier. See page 1.

Insurance Fund Indicators

Estimated insured deposit growth was flat in the third quarter of 2013. The DIF reserve ratio was 0.68 

percent at September 30, 2013, up from 0.64 percent at June 30, 2013, and 0.35 percent at September 30, 

2012. Six FDIC-insured institutions failed during the quarter. See page 15.

Community Bank Developments in 2012

This paper updates the 2012 FDIC Community Banking Study to reflect developments in the structure and 

performance of U.S. community banks through the end of 2012. It finds that while the community banking 

sector changed little in structural terms during the year, community banks showed continued improvement 

in financial performance following the disruptions associated with the recent financial crisis. Problem loans 

and failures declined among community banks in 2012, while their pretax profitability was the highest since 

2007. While community banks hold just 14 percent of industry assets, they make up almost 95 percent of all 

U.S. banking organizations. The sector continues to hold nearly half of the industry’s small loans to farms 

and businesses, as well as the majority of deposits in U.S. rural and micropolitan counties. See page 27.

FDIC Quarterly 1 2013, Volume 7, No. 4

Quarterly Banking Profile Third Quarter 2013

Earnings Are $1.5 Billion Lower Than a Year Ago

Lower revenue from mortgage banking and a large 

expense for litigation reserves combined to limit the net 

income of FDIC-insured institutions to $36 billion in 

the third quarter. This is $1.5 billion (3.9 percent) less 

than banks earned a year earlier, and represents the first 

time since second quarter 2009 that the industry has 

reported a year-over-year decline in quarterly earnings. 

The increase in medium- and long-term interest rates in 

second quarter 2013 lowered the market values of some 

fixed-rate assets. The higher rates reduced demand for 

mortgage refinancings, leading to a drop in mortgage 

origination and sales activity in the third quarter. Lower 

values and reduced origination volume were reflected in 

a decline in income from loan sales. Realized gains on 

investment securities were also well below year-ago 

levels. Net interest margins benefited from the wider 

gap between short-term and longer-term interest rates, 

but average margins and total net interest income were 

still lower than in third quarter 2012.

Higher Interest Rates Lead to Revenue Decline

Net operating revenue—the sum of total noninterest 

income and net interest income—declined by $6.1 

billion (3.6 percent) from third quarter 2012. Noninterest income was $4.7 billion (7.4 percent) lower, as 

income from sale, securitization, and servicing of 1-to-4 

family mortgage loans at major mortgage lenders fell by 

$4 billion (45.2 percent).1 Noninterest income from 

changes in the fair values of financial instruments was 

$2.2 billion (54.6 percent) lower than a year ago. Net 

interest income was $1.3 billion (1.3 percent) lower 

than in third quarter 2012, as interest income declined 

more rapidly than interest expense. However, net interest income was $714 million (0.7 percent) higher than 

in second quarter 2013, only the second time in the 

last seven quarters that there has been a consecutivequarter increase. Noninterest expenses were $2 billion 

1

 Quarterly information on origination and sales activity is reported by 

insured institutions with more than $1 billion in assets and by smaller 

institutions with quarterly origination volumes greater than $10 million 

or quarter-end mortgages held for sale in excess of $10 million.

■ Quarterly Net Income Posts First Year-Over-Year Decline in Over 4 Years

■ Litigation Expense, Lower Revenues Contribute to Earnings Decline

■ Net Charge-Offs Fall to 6-Year Low; Loan-Loss Provisions Drop to 14-Year Low

■ Mortgage Lending Declines After Rise in Interest Rates

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income

Billions of Dollars

-$50

-$40

-$30

-$20

-$10

$0

$10

$20

$30

$40

$50

1234123412341234123

-6.1

-12.6

2009 2010

2.1

-1.7

17.4 20.9 23.8 21.4

28.7

2011

28.5

35.2

25.3

34.8

2012

34.4 37.5 34.5

2013

40.3 38.1 36.0

Securities and Other Gains/Losses, Net

Net Operating Income

Chart 1 Chart 2

Quarterly Revenue and Loan-Loss Provision

Billions of Dollars

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

1 2 3 4 1 2 3 412 3 4 1 2 3 4 1 2 3

2009 2010

* Net operating revenue = net interest income + noninterest income.

2011 2012 2013 

Quarterly Net Operating Revenue*

Quarterly Loan-Loss Provision
FDIC Quarterly 2 2013, Volume 7, No. 4

(1.9 percent) higher than a year ago, as one large institution reported a $4 billion year-over-year increase in 

litigation expenses. Premises and fixed asset expenses 

fell by $182 million (1.6 percent), and salary and 

benefit expenses were only $55 million (0.1 percent) 

higher than a year ago. The one significant positive 

contribution to third-quarter earnings came from lower 

loan-loss provisions. Banks set aside $5.8 billion in 

provisions in the quarter, down $8.8 billion (60.4 

percent) from third quarter 2012. This is the smallest 

quarterly loss provision reported by the industry since 

third quarter 1999.

Loan Losses Decline by Almost One-Half

Net charge-offs totaled $11.7 billion in the quarter, 

down $10.5 billion (47.4 percent) from third quarter 

2012. This is the lowest quarterly total for charge-offs 

since third quarter 2007. All major loan categories had 

year-over-year declines in charge-offs. Net charge-offs of 

1-to-4 family residential real estate loans fell by $7.1 

billion (72.5 percent), with charge-offs on home equity 

lines of credit declining by $3 billion (72.5 percent), 

and other 1-to-4 family residential real estate chargeoffs falling by $4.1 billion (72.5 percent).

Residential Real Estate Loans Post Large Decline in 

Noncurrent Balances

The amount of loans and leases that were noncurrent— 

90 days or more past due or in nonaccrual status—

declined by $18.3 billion (7.7 percent) between June 30 

and September 30. Noncurrent levels improved across 

all major loan categories. Noncurrent 1-to-4 family 

residential real estate loans fell by $13.2 billion (7.9 

percent) during the quarter, noncurrent nonfarm 

nonresidential real estate loans declined by $2.3 billion 

(9 percent), and noncurrent construction and development loans fell by $2 billion (16.4 percent).

Decline in Noncurrent Loan Balances Outpaces 

Reserve Reductions

Banks reduced their loan-loss reserves by $6.5 billion 

(4.3 percent) in the third quarter, as net charge-offs of 

$11.7 billion took more out of reserves than the $5.8 

billion in provisions that banks put into their reserves. 

This is the 14th quarter in a row that loss reserves have 

declined. At the end of the quarter, reserves represented 

1.83 percent of total loans and leases, the lowest level 

since mid-year 2008, and well below the peak of 3.51 

percent at the end of first quarter 2010. Reserve coverage of noncurrent loans increased for the fourth quarter 

in a row—from 62.3 percent to 64.5 percent—as a 

result of the $18.3 billion decline in noncurrent loan 

balances.

Chart 4

Quarterly Net Interest Margins

Percent

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2007 2008 2009 2010 2011 2012 2013

Assets < $1 Billion

Assets $1 Billion - $10 Billion

Assets $10 Billion - $100 Billion

Assets > $100 Billion

All Insured Institutions

Chart 3

Quarterly Noninterest Income From Sale,

Securitization, and Servicing of 1-to-4 Family 

Residential Mortgage Loans* Billions of Dollars

*Beginning in Q4 2008, includes income from HELOCs. Call Reporters only, subject to 

de minimis reporting conditions.

1.51.20.9

-0.8

1.2 1.71.5

0.9

4.7

7.1

4.7

5.6

3.7

4.3

6.2

3.63.23.7

8.0

7.3

8.8

8.17.9 8.1

4.8 4.4 4.7

-$2

$0

$2

$4

$6

$8

$10

1 2 3 4 1 2 3 4 1234 123 412 3 4 1 2 3412 3

2007 2008 2009 2010 2011 2012 2013
FDIC Quarterly 3 2013, Volume 7, No. 4

Quarterly Banking Profile

Equity Capital Resumes Growth After Drop in 

Second Quarter

Equity capital increased by $13.9 billion (0.9 percent), 

after declining by $18.1 billion in the previous quarter, 

as retained earnings contributed $13.1 billion to equity 

growth. Insured institutions declared $22.9 billion in 

dividends in the quarter, an increase of $2.4 billion 

(11.9 percent) compared with third quarter 2012. A 

decline in unrealized gains on securities held for sale 

reduced equity by $1.9 billion, much less than the $32.6 

billion reduction in equity that lower unrealized gains 

produced in second quarter 2012. At the end of the 

quarter, almost 98 percent of all insured institutions, 

representing 99.8 percent of total industry assets, met or 

exceeded the requirements for the highest regulatory 

capital category, as defined for Prompt Corrective 

Action purposes.

Loan Balances Rise by $69.7 Billion

Assets increased by $191.1 billion (1.3 percent) in the 

quarter. Loan and lease balances rose for the 8th time in 

the last ten quarters, increasing by $69.7 billion (0.9 

percent). Apart from 1-to-4 family residential real 

estate loans, all major loan categories registered growth 

in the quarter. Auto loans increased by $10.6 billion 

(3.2 percent), while credit card balances rose by $6.8 

billion (1 percent). Real estate loans secured by multifamily residential properties increased by $8.1 billion 

(3.3 percent), and loans to states and municipalities 

increased by $7.5 billion (7.3 percent). In contrast, 

home equity lines of credit fell by $10.9 billion (2.1 

percent), while balances of other 1-to-4 family residential real estate loans declined by $13.7 billion (0.7 

percent). At major mortgage lenders, originations of 

1-to-4 family residential real estate loans were $136.8 

billion (30.1 percent) lower than in in the previous 

quarter, while sales were down $114.7 billion (23.8 

percent). Banks reported a $204.7 billion (21.7 percent) 

increase in balances due from Federal Reserve banks. 

These balances now exceed $1.1 trillion, and represent 

7.9 percent of industry assets.

Large Denomination Deposits Register 

Strong Increase

Deposits increased by $247.8 billion (2.3 percent). 

Most of the growth—$235.6 billion—occurred in 

accounts with balances greater than $250,000. Deposits in foreign offices increased by $43.6 billion (3.1 

percent). Noninterest-bearing deposits accounted for 

$103.1 billion of the $204.2 billion increase in domestic deposits. At the end of the quarter, deposits funded 

75.6 percent of industry assets, the highest level since 

mid-year 1993. Nondeposit liabilities declined by 

$70.6 billion (3.5 percent) as banks reduced their securities sold under repurchase agreements by $30 billion 

(7.9 percent).

Chart 5

Year-Over-Year Change in Quarterly

Loan-Loss Provisions

Billions of Dollars

-$35

-$30

-$25

-$20

-$15

-$10

-$5

$0

1 2 3 4 1 2 341 2 3

-30.7

-8.8

2011 2012 2013

Chart 6

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

Percent

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013

Noncurrent Loan Rate

Quarterly Net Charge-Off Rate
FDIC Quarterly 4 2013, Volume 7, No. 4

Trend in Bank Failures Continues to Improve

The number of insured commercial banks and savings 

institutions reporting quarterly financial results fell to 

6,891, from 6,940 in the previous quarter. During the 

third quarter, 43 insured institutions were absorbed in 

mergers, while six insured institutions failed. One new 

reporting institution was added as a credit union 

converted to an FDIC-insured cooperative savings 

bank. The number of banks on the FDIC’s “Problem 

List” declined from 553 to 515, and total assets of 

“problem” banks fell from $192.5 billion to $174.2 

billion. This is the 10th consecutive quarter that the 

number of “problem” banks has fallen. Insured institutions reported 2,080,371 full-time equivalent employees, down from 2,097,284 in second quarter 2013 and 

2,105,843 in third quarter 2012.

Author: Ross Waldrop, Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

Chart 9

Originations of Closed-End 1-to-4 Family

Residential Mortgages for Sale*

$0

$100

$200

$300

$400

$500

$600

123412341234 1 2 3

Total Originations

Total Sales

*Beginning in Q1 2012, data include new Call Report filers that previously filed 

Thrift Financial Reports (TFRs).

2010 2011 2012 2013

Quarterly Activity (Billions of Dollars)

Chart 7

Reserve Coverage Ratio*

Billions of Dollars Percent

* Loan-loss reserves to noncurrent loans & leases.

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

2006 2007 2008 2009 2010 2011 2012 2013

0

20

40

60

80

100

120

140

160

180 Coverage Ratio

(Percent)

Loan-Loss Reserves ($ Billions)

Noncurrent Loans & Leases

($ Billions)

Chart 10

Quarterly Changes in the Number of

Troubled Institutions

27

81

53

111

136 150

73 54 31 24

4 -23 -21 -31 -40 -38 -43 -39 -59 -38

50 45

41

45

41

30

26 22 26 18 16 15 12 8 12 14

54

-41

27

81

53

111

136 150

73 54 31 24

4 -23 -21 -31 -40 -38 -43 -39 -59 -38

14

54

-41

2

2

9

12

21

24

4 6

-75

-50

-25

0

25

50

75

100

125

150

175

200

123412341234123 4 1 2341 2 3

2008 2009 2010 2011 2012 2013

Quarterly Failures

Net Quarterly Change in

Number of Problem Banks

Chart 8

Quarterly Change in Loan Balances

Billions of Dollars

221*

43

189

237

203

61

28

-6

-116-140

-109

-210

-133 -107

-7 -14

-126

67

24

-63

102

65

118

-37

73 70

134

-$250

-$200

-$150

-$100

-$50

$0

$50

$100

$150

$200

$250

$300

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

2007 2008 2009 2010

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

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

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

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

2011 2012 2013
FDIC Quarterly 5 2013, Volume 7, No. 4

Quarterly Banking Profile

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2013** 2012** 2012 2011 2010 2009 2008

Return on assets (%)������������������������������������������������������������������������������������������������������ 1.06 1.02 1.00 0.88 0.65 -0.

Return on equity (%)������������������������������������������������������������������������������������������������������� 9.45 9.02 8.91 7.79 5.85 -0.

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 9.40 9.28 9.15 9.07 8.89 8.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 1.75 2.37 2.20 2.61 3.11 3.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 0.72 1.14 1.10 1.55 2.55 2.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 2.62 2.98 4.02 4.30 1.77 -5.

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.26 3.45 3.42 3.60 3.76 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 10.67 12.52 17.78 43.58 1594.70 -155.98

Number of institutions reporting������������������������������������������������������������������������������������� 6,891 7,181 7,083 7,357 7,658 8,012 8,305

Commercial banks��������������������������������������������������������������������������������������������������� 5,937 6,168 6,096 6,291 6,530 6,840 7,087

Savings institutions ������������������������������������������������������������������������������������������������� 954 1,013 987 1,066 1,128 1,172 1,218

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 7.95 10.79 10.93 16.22 22.15 30.8

Number of problem institutions �������������������������������������������������������������������������������������� 515 694 651 813 884 702 252

Assets of problem institutions (in billions) ��������������������������������������������������������������������� $174 $262 $233 $319 $390 $403 $159

Number of failed institutions������������������������������������������������������������������������������������������� 22 43 51 92 157 140 25

Number of assisted institutions�������������������������������������������������������������������������������������� 0 0 0 0 0 8 5

* Excludes insured branches of foreign banks (IBAs)

** Through September 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending September 3

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

(dollar figures in millions)  3rd Quarter

2013

2nd Quarter

2013

3rd Quarter

2012

%Change 

12Q3-13Q3

Number of institutions reporting������������������������������������������������������������������������������������� 6,891 6,940 7,181 -4.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 2,080,371 2,097,284 2,105,843 -1.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $14,596,235 $14,405,155 $14,223,318 2.

Loans secured by real estate���������������������������������������������������������������������������������� 4,053,172 4,046,909 4,087,033 -0.

 1-4 Family residential mortgages �������������������������������������������������������������������� 1,841,445 1,855,188 1,889,348 -2.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 1,092,487 1,083,287 1,058,001 3.

 Construction and development 206,145 202,506 210,435 -2.

 Home equity lines��������������������������������������������������������������������������������������������� 517,749 528,652 567,481 -8.

Commercial & industrial loans �������������������������������������������������������������������������������� 1,571,822 1,563,440 1,454,634 8.

Loans to individuals������������������������������������������������������������������������������������������������� 1,331,685 1,310,292 1,295,525 2.

 Credit cards ������������������������������������������������������������������������������������������������������ 677,074 670,289 668,309 1.

Farm loans��������������������������������������������������������������������������������������������������������������� 67,996 65,072 65,451 3.

Other loans & leases����������������������������������������������������������������������������������������������� 779,222 748,474 677,339 15.

Less: Unearned income ������������������������������������������������������������������������������������������ 1,857 1,831 1,925 -3.

Total loans & leases ������������������������������������������������������������������������������������������������ 7,802,040 7,732,356 7,578,057 3.

Less: Reserve for losses����������������������������������������������������������������������������������������� 142,572 149,042 167,010 -14.

Net loans and leases����������������������������������������������������������������������������������������������� 7,659,468 7,583,314 7,411,046 3.

Securities����������������������������������������������������������������������������������������������������������������� 2,957,637 2,945,331 2,986,431 -1.

Other real estate owned������������������������������������������������������������������������������������������ 31,823 32,615 41,038 -22.

Goodwill and other intangibles ������������������������������������������������������������������������������� 367,113 367,077 364,142 0.

All other assets�������������������������������������������������������������������������������������������������������� 3,580,194 3,476,817 3,420,660 4.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 14,596,235 14,405,154 14,223,318 2.

Deposits������������������������������������������������������������������������������������������������������������������� 11,028,212 10,780,396 10,504,236 5.

 Domestic office deposits���������������������������������������������������������������������������������� 9,599,681 9,395,455 9,060,211 6.

 Foreign office deposits������������������������������������������������������������������������������������� 1,428,531 1,384,942 1,444,025 -1.

Other borrowed funds ��������������������������������������������������������������������������������������������� 1,311,801 1,328,796 1,355,877 -3.

Subordinated debt��������������������������������������������������������������������������������������������������� 108,673 113,621 112,096 -3.

All other liabilities ���������������������������������������������������������������������������������������������������� 510,648 559,300 613,478 -16.

Total equity capital (includes minority interests)���������������������������������������������������� 1,636,901 1,623,041 1,637,631 0.

 Bank equity capital������������������������������������������������������������������������������������������� 1,622,084 1,608,225 1,619,234 0.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 73,138 75,327 86,955 -15.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 221,070 239,397 293,102 -24.

Restructured loans and leases �������������������������������������������������������������������������������������� 100,713 102,113 104,752 -3.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 1,668,561 1,678,439 1,732,775 -3.

Earning assets���������������������������������������������������������������������������������������������������������������� 12,928,881 12,704,592 12,470,382 3.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 372,904 368,408 318,120 17.

Unused loan commitments��������������������������������������������������������������������������������������������� 6,101,722 5,995,431 5,812,660 5.

Trust assets��������������������������������������������������������������������������������������������������������������������� 19,065,513 18,008,962 17,260,345 10.

Assets securitized and sold ������������������������������������������������������������������������������������������� 761,130 765,363 991,017 -23.

Notional amount of derivatives��������������������������������������������������������������������������������������� 242,915,692 236,525,673 229,460,777 5.

INCOME DATA

First Three 

Qtrs 2013

First Three 

Qtrs 2012 %Change

3rd Quarter 

2013

3rd Quarter 

2012

%Change 

12Q3-13Q3

Total interest income ������������������������������������������������������������������� $352,438 $367,713 -4.2 $117,676 $121,734 -3

Total interest expense ����������������������������������������������������������������� 41,086 50,876 -19.2 13,369 16,092 -16

Net interest income �������������������������������������������������������������� 311,352 316,837 -1.7 104,307 105,643 -1

Provision for loan and lease losses �������������������������������������������� 25,185 42,826 -41.2 5,798 14,642 -60

Total noninterest income������������������������������������������������������������� 192,292 185,346 3.8 59,015 63,736 -7

Total noninterest expense ����������������������������������������������������������� 314,671 314,005 0.2 106,493 104,475 1

Securities gains (losses)������������������������������������������������������������� 3,977 8,216 -51.6 540 2,717 -80

Applicable income taxes ������������������������������������������������������������� 52,900 46,178 14.6 15,684 15,316 2

Extraordinary gains, net�������������������������������������������������������������� 168 -55 N/M 259 -44 N/M

Total net income (includes minority interests)��������������������� 115,033 107,335 7.2 36,146 37,618 -3

 Bank net income������������������������������������������������������������ 114,468 106,823 7.2 36,008 37,485 -3

Net charge-offs���������������������������������������������������������������������������� 41,578 63,962 -35 11,677 22,199 -47.

Cash dividends ���������������������������������������������������������������������������� 58,153 60,916 -4.5 22,861 20,447 11

Retained earnings ����������������������������������������������������������������������� 56,315 45,907 22.7 13,147 17,038 -22

Net operating income����������������������������������������������������������� 112,026 101,225 10.7 35,529 35,556 -0

N/M - Not Meaningful
FDIC Quarterly 6 2013, Volume 7, No. 4

TABLE III-A. Third Quarter 2013, All FDIC-Insured Institutions

Asset Concentration Groups*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,891 17 4 1,536 3,434 596 47 400 791 66

Commercial banks������������������������������������� 5,937 14 4 1,516 3,099 165 36 361 688 54

Savings institutions ����������������������������������� 954 3 0 20 335 431 11 39 103 12

Total assets (in billions)������������������������������������ $14,596.2 $596.2 $3,721.7 $243.9 $4,774.5 $553.9 $149.3 $63.9 $137.

Commercial banks������������������������������������� 13,537.7 522.7 3,721.7 238.4 4,418.5 227.3 70.6 59.1 114

Savings institutions ����������������������������������� 1,058.6 73.5 0.0 5.5 356.0 326.7 78.7 4.9 

Total deposits (in billions)��������������������������������� 11,028.2 335.8 2,630.5 202.1 3,756.9 412.9 126.9 51.9 116

Commercial banks������������������������������������� 10,219.7 285.7 2,630.5 198.9 3,494.6 173.2 59.9 48.4 96

Savings institutions ����������������������������������� 808.5 50.0 0.0 3.3 262.3 239.6 67.0 3.5 

Bank net income (in millions) ��������������������������� 36,008 5,022 4,791 756 11,721 1,287 393 319 293 11,426

Commercial banks������������������������������������� 33,145 4,069 4,791 724 11,032 774 202 206 269 11,076

Savings institutions ����������������������������������� 2,863 952 0 32 688 512 191 114 24 350

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������ 3.67 10.24 2.82 4.24 4.00 3.79 3.81 3.07

Cost of funding earning assets ������������������������ 0.42 0.71 0.46 0.55 0.44 0.70 0.51 0.44

Net interest margin������������������������������������ 3.26 9.53 2.35 3.70 3.56 3.09 3.30 2.63

Noninterest income to assets��������������������������� 1.63 4.47 1.61 0.66 1.31 1.02 1.41 5.07

Noninterest expense to assets������������������������� 2.94 5.84 2.92 2.51 2.98 2.47 2.39 4.62

Loan and lease loss provision to assets���������� 0.16 2.04 0.01 0.10 0.16 0.10 0.43 0.08

Net operating income to assets ����������������������� 0.98 3.38 0.51 1.25 0.98 0.90 1.12 2.01

Pretax return on assets ������������������������������������ 1.43 5.36 0.73 1.47 1.35 1.36 1.66 2.73

Return on assets����������������������������������������������� 0.99 3.38 0.52 1.25 0.99 0.92 1.04 1.99

Return on equity ����������������������������������������������� 8.92 22.57 5.88 11.35 8.35 8.19 11.04 14.57

Net charge-offs to loans and leases���������������� 0.60 2.91 0.86 0.09 0.35 0.30 0.68 0.41

Loan and lease loss provision to 

net charge-offs ������������������������������������������ 49.66 89.71 2.73 164.91 68.88 55.15 94.06 66.11 7

Efficiency ratio �������������������������������������������������� 64.14 42.57 79.18 61.22 65.65 62.78 51.08 61.44 7

% of unprofitable institutions���������������������������� 8.59 0.00 0.00 3.26 9.99 13.93 2.13 12.00

% of institutions with earnings gains���������������� 50.02 76.47 50.00 45.44 55.18 38.59 46.81 48.25 4

Structural Changes

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

Institutions absorbed by mergers ������������� 43 0 0 10 28 1 0 0 1 3

Failed institutions �������������������������������������� 6 0 0 0 6 0 0 0 0 0

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%)��������������������������������2012 1.06 3.19 0.98 1.36 0.92 0.75 1.67 1.42

��������������������������������������2010 0.72 2.04 0.63 1.08 0.35 0.70 1.52 1.94

������������������������������������� 2008 0.03 0.36 0.49 1.01 -0.13 -1.34 0.94 0.12

Net charge-offs to loans & leases (%) �����2012 1.18 3.53 1.74 0.23 0.74 0.76 1.26 0.42

��������������������������������������2010 2.38 8.94 2.05 0.58 1.96 1.33 1.97 0.98

������������������������������������� 2008 1.43 6.24 1.44 0.43 1.23 1.02 2.04 0.43

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

Note: Blue font identifies data that are also presented in the prior quarters’ data at bottom of table
FDIC Quarterly 7 2013, Volume 7, No. 4

Quarterly Banking Profile

TABLE III-A. Third Quarter 2013, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,891 2,117 4,106 561 107 854 875 1,480 1,675 1,454 553

Commercial banks������������������������������������������� 5,937 1,875 3,523 450 89 466 788 1,227 1,600 1,355 501

Savings institutions ����������������������������������������� 954 242 583 111 18 388 87 253 75 99 52

Total assets (in billions)������������������������������������������ $14,596.2 $123.6 $1,245.4 $1,453.1 $11,774.2 $2,876.9 $2,981.8 $3,399.3 $3,158.9 $864

Commercial banks������������������������������������������� 13,537.7 110.1 1,041.6 1,175.7 11,210.3 2,414.5 2,896.3 3,285.3 3,098.9 76

Savings institutions ����������������������������������������� 1,058.6 13.5 203.8 277.4 563.9 462.4 85.4 114.0 60.0 

Total deposits (in billions)��������������������������������������� 11,028.2 104.7 1,041.7 1,135.0 8,746.8 2,132.5 2,305.0 2,452.2 2,417.6 71

Commercial banks������������������������������������������� 10,219.7 94.0 877.9 926.0 8,321.7 1,794.8 2,240.4 2,366.3 2,369.5 

Savings institutions ����������������������������������������� 808.5 10.7 163.8 209.0 425.1 337.8 64.7 85.9 48.1

Bank net income (in millions) ��������������������������������� 36,008 224 2,856 4,193 28,735 7,603 6,991 4,488 9,748 2,280 4,898

Commercial banks������������������������������������������� 33,145 213 2,445 3,613 26,873 6,895 6,850 4,191 9,639 1,950 3,620

Savings institutions ����������������������������������������� 2,863 11 411 580 1,862 708 140 298 109 330 1,278

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������������ 3.67 4.26 4.26 4.35 3.52 4.00 3.67 2.88 3.9

Cost of funding earning assets ������������������������������ 0.42 0.55 0.57 0.50 0.39 0.45 0.35 0.35 0.5

Net interest margin������������������������������������������ 3.26 3.71 3.70 3.85 3.13 3.55 3.32 2.53 3.4

Noninterest income to assets��������������������������������� 1.63 1.02 1.11 1.22 1.74 1.53 1.63 1.76 1.5

Noninterest expense to assets������������������������������� 2.94 3.41 3.17 3.07 2.89 2.79 3.07 3.21 2.6

Loan and lease loss provision to assets���������������� 0.16 0.15 0.18 0.16 0.16 0.36 0.11 -0.02 0.1

Net operating income to assets ����������������������������� 0.98 0.72 0.92 1.17 0.97 1.06 0.90 0.52 1.2

Pretax return on assets ������������������������������������������ 1.43 0.86 1.16 1.50 1.45 1.53 1.37 0.79 1.7

Return on assets����������������������������������������������������� 0.99 0.73 0.92 1.17 0.98 1.06 0.94 0.53 1.2

Return on equity ����������������������������������������������������� 8.92 6.16 8.51 9.90 8.87 8.84 7.66 5.82 11.62

Net charge-offs to loans and leases���������������������� 0.60 0.28 0.34 0.31 0.68 0.81 0.55 0.46 0.7

Loan and lease loss provision to 

net charge-offs ������������������������������������������������ 49.66 94.37 83.07 77.96 45.23 84.00 34.02 -8.32 36.83 7

Efficiency ratio �������������������������������������������������������� 64.14 77.20 69.99 64.17 63.38 58.21 67.32 80.04 56.61 

% of unprofitable institutions���������������������������������� 8.59 13.93 6.72 3.57 0.93 10.19 12.34 9.59 5.85

% of institutions with earnings gains���������������������� 50.02 46.72 50.78 56.33 53.27 45.08 57.83 44.93 48.96 

Structural Changes

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

Institutions absorbed by mergers ������������������� 43 13 28 2 0 4 7 1 13 11 7

Failed institutions �������������������������������������������� 6 2 3 1 0 1 1 1 0 2 1

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%)��������������������������������������2012 1.06 0.79 0.87 1.02 1.09 1.02 0.72 0.95 1.2

��������������������������������������������2010 0.72 0.39 0.34 0.27 0.83 0.77 0.58 0.61 0.9

������������������������������������������� 2008 0.03 0.27 -0.02 -0.60 0.12 0.01 0.22 0.10 0.50

Net charge-offs to loans & leases (%) �����������2012 1.18 0.38 0.58 0.79 1.33 1.15 1.33 1.04 1.5

��������������������������������������������2010 2.38 0.87 1.16 1.74 2.70 3.05 2.31 1.94 2.7

������������������������������������������� 2008 1.43 0.44 0.71 1.11 1.63 1.49 1.28 1.36 1.6

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

Note: Blue font identifies data that are also presented in the prior quarters’ data at bottom of table
FDIC Quarterly 8 2013, Volume 7, No. 4

TABLE IV-A. First Three Quarters 2013, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,891 17 4 1,536 3,434 596 47 400 791 66

Commercial banks������������������������������������� 5,937 14 4 1,516 3,099 165 36 361 688 54

Savings institutions ����������������������������������� 954 3 0 20 335 431 11 39 103 12

Total assets (in billions)������������������������������������ $14,596.2 $596.2 $3,721.7 $243.9 $4,774.5 $553.9 $149.3 $63.9 $137.

Commercial banks������������������������������������� 13,537.7 522.7 3,721.7 238.4 4,418.5 227.3 70.6 59.1 114

Savings institutions ����������������������������������� 1,058.6 73.5 0.0 5.5 356.0 326.7 78.7 4.9 

Total deposits (in billions)��������������������������������� 11,028.2 335.8 2,630.5 202.1 3,756.9 412.9 126.9 51.9 116

Commercial banks������������������������������������� 10,219.7 285.7 2,630.5 198.9 3,494.6 173.2 59.9 48.4 96

Savings institutions ����������������������������������� 808.5 50.0 0.0 3.3 262.3 239.6 67.0 3.5 

Bank net income (in millions) ��������������������������� 114,468 14,555 22,810 2,177 32,143 4,068 1,440 850 909 35,517

Commercial banks������������������������������������� 106,136 12,033 22,810 2,090 29,848 2,263 767 521 829 34,975

Savings institutions ����������������������������������� 8,332 2,521 0 87 2,294 1,805 672 329 81 543

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������ 3.69 10.13 2.87 4.15 4.01 3.74 3.74 3.01

Cost of funding earning assets ������������������������ 0.43 0.74 0.46 0.56 0.47 0.71 0.52 0.45

Net interest margin������������������������������������ 3.26 9.39 2.41 3.59 3.54 3.03 3.22 2.55

Noninterest income to assets��������������������������� 1.78 4.29 1.83 0.67 1.36 1.10 1.63 4.58

Noninterest expense to assets������������������������� 2.90 5.71 2.65 2.50 3.04 2.42 2.29 4.44

Loan and lease loss provision to assets���������� 0.23 2.05 0.09 0.10 0.21 0.14 0.43 0.11

Net operating income to assets ����������������������� 1.03 3.27 0.80 1.17 0.89 0.94 1.27 1.71

Pretax return on assets ������������������������������������ 1.55 5.14 1.21 1.40 1.29 1.42 2.03 2.41

Return on assets����������������������������������������������� 1.06 3.26 0.83 1.20 0.91 0.98 1.28 1.74

Return on equity ����������������������������������������������� 9.45 21.90 9.38 10.78 7.63 8.70 13.80 12.52

Net charge-offs to loans and leases���������������� 0.72 3.21 1.03 0.11 0.44 0.37 0.77 0.59

Loan and lease loss provision to 

net charge-offs ������������������������������������������ 60.57 81.79 26.25 156.59 71.11 60.99 85.34 68.54 8

Efficiency ratio �������������������������������������������������� 60.54 42.63 66.85 62.36 64.21 61.10 47.51 63.82 7

% of unprofitable institutions���������������������������� 7.95 0.00 0.00 2.60 9.55 12.75 0.00 10.50

% of institutions with earnings gains���������������� 52.46 82.35 75.00 45.57 59.23 41.44 55.32 43.50 4

Condition Ratios (%)

Earning assets to total assets �������������������������� 88.58 92.17 87.02 92.27 89.29 93.38 96.30 91.47 9

Loss allowance to:

Loans and leases �������������������������������������� 1.83 3.73 2.44 1.50 1.61 1.34 1.21 1.88

Noncurrent loans and leases �������������������� 64.49 325.13 82.09 132.46 77.01 43.62 132.73 87.81 7

Noncurrent assets plus

other real estate owned to assets������������� 1.75 0.90 1.13 0.98 1.81 2.16 0.66 0.96

Equity capital ratio�������������������������������������������� 11.11 14.89 8.82 11.01 11.81 11.40 9.64 13.71 1

Core capital (leverage) ratio ���������������������������� 9.40 13.09 7.56 10.45 10.18 10.49 9.60 13.22 

Tier 1 risk-based capital ratio��������������������������� 13.09 15.12 12.07 14.80 12.81 20.66 13.78 29.91 1

Total risk-based capital ratio ���������������������������� 14.97 17.39 14.38 15.94 14.46 21.80 14.61 30.90 2

Net loans and leases to deposits��������������������� 69.45 133.52 47.72 74.02 84.26 80.22 79.89 33.84 6

Net loans to total assets ���������������������������������� 52.48 75.19 33.73 61.34 66.30 59.79 67.91 27.49 5

Domestic deposits to total assets �������������������� 65.77 52.55 42.36 82.88 77.52 74.40 84.99 80.50 8

Structural Changes

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

Institutions absorbed by mergers ������������� 159 0 0 27 106 6 0 1 11 8

Failed institutions �������������������������������������� 22 0 0 0 20 0 0 0 2 0

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions ������������������������������2012 7,181 17 5 1,539 3,576 706 53 397 818 70

��������������������������������������2010 7,761 22 5 1,583 4,172 725 81 320 789 64

������������������������������������� 2008 8,384 26 4 1,588 4,810 827 100 298 691 40

Total assets (in billions)����������������������������2012 $14,223.3 $580.5 $3,774.2 $223.9 $4,125.4 $821.8 $116.9 $63.4 $142.

��������������������������������������2010 13,372.7 695.1 3,278.1 194.0 4,442.5 789.5 102.9 44.5 131

������������������������������������� 2008 13,572.5 467.9 3,263.3 168.1 6,077.4 1,060.5 71.0 36.0 93

Return on assets (%)��������������������������������2012 1.02 3.14 0.83 1.30 0.90 0.82 1.62 1.25

��������������������������������������2010 0.64 1.47 0.79 1.04 0.28 0.70 1.42 1.58

������������������������������������� 2008 0.32 2.42 0.31 1.12 0.23 -0.35 1.01 1.57

Net charge-offs to loans & leases (%) �����2012 1.14 3.81 1.53 0.22 0.75 0.78 1.44 0.33

��������������������������������������2010 2.63 11.94 2.27 0.53 1.89 1.22 2.20 0.81

������������������������������������� 2008 1.18 5.64 1.28 0.29 0.98 0.74 1.84 0.43

Noncurrent assets plus 

OREO to assets (%) ��������������������������2012 2.37 1.10 1.47 1.26 2.52 2.26 1.45 1.10

��������������������������������������2010 3.24 1.97 2.36 1.70 3.84 3.13 1.05 1.06

������������������������������������� 2008 1.55 1.73 1.17 1.15 1.93 2.30 0.80 0.28

Equity capital ratio (%)������������������������������2012 11.38 14.82 9.17 11.68 11.87 10.83 9.96 15.04 1

��������������������������������������2010 11.18 14.62 9.06 11.40 11.38 10.11 10.59 17.17 1

������������������������������������� 2008 9.62 20.85 7.13 11.07 10.66 7.95 9.14 19.61 

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

Note: Blue font identifies data that are also presented in the prior years’ data at bottom of table
FDIC Quarterly 9 2013, Volume 7, No. 4

Quarterly Banking Profile

TABLE IV-A. First Three Quarters 2013, All FDIC-Insured Institutions

Asset Size Distribution Geographic Regions*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,891 2,117 4,106 561 107 854 875 1,480 1,675 1,454 553

Commercial banks������������������������������������������� 5,937 1,875 3,523 450 89 466 788 1,227 1,600 1,355 501

Savings institutions ����������������������������������������� 954 242 583 111 18 388 87 253 75 99 52

Total assets (in billions)������������������������������������������ $14,596.2 $123.6 $1,245.4 $1,453.1 $11,774.2 $2,876.9 $2,981.8 $3,399.3 $3,158.9 $864

Commercial banks������������������������������������������� 13,537.7 110.1 1,041.6 1,175.7 11,210.3 2,414.5 2,896.3 3,285.3 3,098.9 76

Savings institutions ����������������������������������������� 1,058.6 13.5 203.8 277.4 563.9 462.4 85.4 114.0 60.0 

Total deposits (in billions)��������������������������������������� 11,028.2 104.7 1,041.7 1,135.0 8,746.8 2,132.5 2,305.0 2,452.2 2,417.6 71

Commercial banks������������������������������������������� 10,219.7 94.0 877.9 926.0 8,321.7 1,794.8 2,240.4 2,366.3 2,369.5 

Savings institutions ����������������������������������������� 808.5 10.7 163.8 209.0 425.1 337.8 64.7 85.9 48.1

Bank net income (in millions) ��������������������������������� 114,468 704 8,548 12,642 92,575 17,530 23,220 22,874 29,136 7,221 14,487

Commercial banks������������������������������������������� 106,136 651 7,321 10,549 87,615 15,734 22,767 21,884 28,764 6,093 10,895

Savings institutions ����������������������������������������� 8,332 54 1,227 2,093 4,960 1,797 453 990 372 1,128 3,593

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������������ 3.69 4.20 4.23 4.30 3.54 3.99 3.66 2.91 3.9

Cost of funding earning assets ������������������������������ 0.43 0.57 0.59 0.52 0.40 0.46 0.37 0.37 0.4

Net interest margin������������������������������������������ 3.26 3.63 3.64 3.78 3.14 3.52 3.29 2.54 3.4

Noninterest income to assets��������������������������������� 1.78 1.03 1.13 1.30 1.91 1.57 1.83 1.97 1.6

Noninterest expense to assets������������������������������� 2.90 3.33 3.16 3.06 2.85 3.00 3.01 2.89 2.6

Loan and lease loss provision to assets���������������� 0.23 0.14 0.18 0.18 0.25 0.39 0.21 0.07 0.2

Net operating income to assets ����������������������������� 1.03 0.73 0.89 1.16 1.04 0.79 1.00 0.88 1.2

Pretax return on assets ������������������������������������������ 1.55 0.89 1.16 1.55 1.59 1.33 1.51 1.27 1.7

Return on assets����������������������������������������������������� 1.06 0.75 0.92 1.18 1.06 0.82 1.03 0.91 1.2

Return on equity ����������������������������������������������������� 9.45 6.34 8.45 10.05 9.52 6.74 8.42 9.99 11.59 

Net charge-offs to loans and leases���������������������� 0.72 0.31 0.35 0.38 0.82 0.97 0.69 0.50 0.9

Loan and lease loss provision to 

net charge-offs ������������������������������������������������ 60.57 83.30 84.65 73.58 58.23 76.16 53.09 29.94 53.17 7

Efficiency ratio �������������������������������������������������������� 60.54 76.64 70.41 63.66 58.98 58.12 63.26 68.19 55.37 

% of unprofitable institutions���������������������������������� 7.95 12.33 6.50 3.03 2.80 10.66 13.14 8.78 4.36

% of institutions with earnings gains���������������������� 52.46 47.99 53.14 62.21 63.55 48.01 62.74 49.12 49.43 

Condition Ratios (%)

Earning assets to total assets ��������������������������������� 88.58 91.37 91.97 91.02 87.89 88.77 86.86 87.94 88.36 

Loss allowance to:

Loans and leases ��������������������������������������������� 1.83 1.71 1.66 1.63 1.88 1.80 1.71 1.95 2.0

Noncurrent loans and leases ��������������������������� 64.49 87.42 83.86 70.68 61.92 90.60 45.46 66.90 59.23 7

Noncurrent assets plus

other real estate owned to assets�������������������� 1.75 1.83 1.98 1.95 1.70 1.20 2.48 1.54 2.0

Equity capital ratio��������������������������������������������������� 11.11 11.82 10.83 11.76 11.06 12.00 12.30 9.13 10.66 

Core capital (leverage) ratio ����������������������������������� 9.40 11.74 10.64 10.67 9.08 9.84 9.52 7.93 9.28 

Tier 1 risk-based capital ratio���������������������������������� 13.09 19.19 15.79 15.01 12.53 14.02 12.81 11.65 12.37 

Total risk-based capital ratio ����������������������������������� 14.97 20.31 16.98 16.21 14.56 15.71 14.59 13.79 14.57 

Net loans and leases to deposits���������������������������� 69.45 65.67 74.45 81.58 67.33 71.26 74.39 60.67 67.90 

Net loans to total assets ����������������������������������������� 52.48 55.63 62.27 63.72 50.02 52.82 57.51 43.77 51.97 

Domestic deposits to total assets ��������������������������� 65.77 84.71 83.59 77.73 62.21 65.00 74.08 59.45 56.90 

Structural Changes

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

Institutions absorbed by mergers ������������������� 159 58 87 12 2 15 16 33 36 34 25

Failed institutions �������������������������������������������� 22 12 9 1 0 1 8 4 1 3 5

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions ������������������������������������2012 7,181 2,287 4,235 551 108 891 918 1,529 1,738 1,513 592

��������������������������������������������2010 7,761 2,682 4,414 556 109 961 1,041 1,609 1,841 1,637 672

������������������������������������������� 2008 8,384 3,240 4,470 560 114 1,027 1,197 1,721 1,943 1,719 777

Total assets (in billions)����������������������������������2012 $14,223.3 $132.4 $1,278.3 $1,424.4 $11,388.3 $2,927.6 $2,942.9 $3,231.4 $3,059.1 $845

��������������������������������������������2010 13,372.7 151.1 1,315.7 1,400.5 10,505.3 2,724.5 2,957.1 2,948.0 1,649.5 78

������������������������������������������� 2008 13,572.5 174.9 1,338.2 1,474.7 10,584.7 2,689.0 3,427.5 3,324.7 1,009.2 77

Return on assets (%)��������������������������������������2012 1.02 0.72 0.84 1.18 1.02 0.94 0.76 0.91 1.1

��������������������������������������������2010 0.64 0.40 0.37 0.27 0.73 0.72 0.36 0.62 0.7

������������������������������������������� 2008 0.32 0.47 0.44 0.18 0.33 0.59 0.30 0.31 0.93

Net charge-offs to loans & leases (%) �����������2012 1.14 0.39 0.60 0.75 1.29 1.26 1.23 0.93 1.4

��������������������������������������������2010 2.63 0.73 1.02 1.71 3.07 3.77 2.51 2.04 3.0

������������������������������������������� 2008 1.18 0.31 0.49 0.88 1.37 1.31 0.98 1.15 1.3

Noncurrent assets plus 

OREO to assets (%) ��������������������������������2012 2.37 2.20 2.61 2.70 2.30 1.53 3.66 2.13 2.5

��������������������������������������������2010 3.24 2.42 3.42 3.70 3.17 2.18 4.04 3.06 4.5

������������������������������������������� 2008 1.55 1.40 1.82 2.03 1.46 0.98 1.67 1.56 1.9

Equity capital ratio (%)������������������������������������2012 11.38 12.13 11.10 11.88 11.35 12.38 12.31 9.18 11.04 

��������������������������������������������2010 11.18 12.18 10.36 11.22 11.26 12.48 11.55 9.06 11.55 

������������������������������������������� 2008 9.62 13.14 10.18 10.87 9.32 10.92 10.14 8.56 9.6

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

Note: Blue font identifies data that are also presented in the prior years’ data at bottom of table
FDIC Quarterly 10 2013, Volume 7, No. 4

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

Asset Concentration Groups*

September 30, 2013 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 

Billion

All Other 

>$1 

Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate ��������������������������������������� 1.20 0.13 1.62 0.67 0.78 1.07 0.60 1.27

Construction and development��������������������������������� 0.78 0.00 0.62 0.68 0.66 0.94 0.50 1.76

Nonfarm nonresidential��������������������������������������������� 0.50 0.00 0.37 0.57 0.50 0.42 1.16 0.84

Multifamily residential real estate ����������������������������� 0.33 0.00 0.11 0.53 0.34 0.27 1.61 0.67

Home equity loans����������������������������������������������������� 0.77 0.00 1.08 0.62 0.62 0.77 0.54 0.48

Other 1-4 family residential��������������������������������������� 1.95 0.14 2.61 1.39 1.31 1.21 0.57 1.72

Commercial and industrial loans ������������������������������������� 0.30 0.90 0.25 0.95 0.29 0.66 0.09 1.17

Loans to individuals���������������������������������������������������������� 1.40 1.26 1.43 1.50 1.23 1.55 0.85 1.63

Credit card loans ������������������������������������������������������� 1.29 1.25 1.38 1.21 1.27 1.93 0.69 1.54

Other loans to individuals ����������������������������������������� 1.51 1.41 1.51 1.52 1.23 1.19 0.90 1.64

All other loans and leases (including farm) ��������������������� 0.15 0.23 0.14 0.31 0.21 0.11 0.14 0.59

Total loans and leases������������������������������������������������������ 0.94 1.22 0.97 0.66 0.67 1.03 0.75 1.26

Percent of Loans Noncurrent**

All real estate loans ���������������������������������������������������������� 4.77 0.85 6.80 1.42 2.90 3.32 2.01 2.62

Construction and development.................................. 4.89 

Nonfarm nonresidential��������������������������������������������� 2.18 4.04 1.55 2.09 2.13 2.05 2.95 2.80

Multifamily residential real estate ����������������������������� 0.96 0.00 0.63 1.46 1.05 0.94 0.99 1.08

Home equity loans����������������������������������������������������� 2.70 0.00 3.58 1.00 1.58 2.02 2.98 1.09

Other 1-4 family residential��������������������������������������� 7.66 0.75 11.50 1.40 4.16 3.68 1.42 1.91 

Commercial and industrial loans ������������������������������������� 0.72 0.91 0.71 1.46 0.81 1.72 0.13 1.39

Loans to individuals���������������������������������������������������������� 1.04 1.17 1.20 0.60 0.94 1.13 0.66 0.64

Credit card loans ������������������������������������������������������� 1.21 1.18 1.24 0.32 1.39 1.70 1.04 0.95

Other loans to individuals ����������������������������������������� 0.87 0.99 1.14 0.63 0.87 0.58 0.53 0.62

All other loans and leases (including farm) ��������������������� 0.29 0.17 0.24 0.35 0.45 0.23 0.13 0.69

Total loans and leases������������������������������������������������������ 2.83 1.15 2.97 1.13 2.08 3.07 0.91 2.14

Percent of Loans Charged-Off (net, YTD)

All real estate loans ���������������������������������������������������������� 0.52 0.06 0.95 0.10 0.45 0.36 0.85 0.58

Construction and development��������������������������������� 0.64 0.00 2.54 0.28 0.68 0.42 1.68 1.34

Nonfarm nonresidential��������������������������������������������� 0.28 0.00 0.15 0.15 0.32 0.34 0.56 0.44

Multifamily residential real estate ����������������������������� 0.10 0.00 0.01 -0.08 0.15 0.08 0.16 0.36

Home equity loans����������������������������������������������������� 1.14 2.15 1.20 0.09 0.75 1.12 1.67 3.37

Other 1-4 family residential��������������������������������������� 0.55 -0.02 1.21 0.15 0.53 0.32 0.42 0.33

Commercial and industrial loans ������������������������������������� 0.32 3.10 0.27 0.22 0.32 0.53 0.09 0.40

Loans to individuals���������������������������������������������������������� 2.17 3.25 3.02 0.31 1.00 0.85 0.80 0.54

Credit card loans ������������������������������������������������������� 3.44 3.30 4.01 0.58 3.72 0.80 2.16 2.43

Other loans to individuals ����������������������������������������� 0.82 1.95 1.33 0.29 0.58 0.88 0.34 0.41

All other loans and leases (including farm) ��������������������� 0.09 0.00 0.10 0.00 0.15 0.10 0.16 1.31

Total loans and leases������������������������������������������������������ 0.72 3.21 1.03 0.11 0.44 0.37 0.77 0.59

Loans Outstanding (in billions)

All real estate loans ���������������������������������������������������������� $4,053.2 $0.2 $478.6 $90.1 $1,985.4 $300.4 $21.9 $12.7 $57.

Construction and development��������������������������������� 206.1 0.0 6.2 4.4 148.0 6.1 0.3 0.

Nonfarm nonresidential��������������������������������������������� 1,092.5 0.0 36.2 25.0 777.8 28.5 1.1 4.6 

Multifamily residential real estate ����������������������������� 252.3 0.0 46.6 2.5 157.2 12.4 0.2 0.

Home equity loans����������������������������������������������������� 517.7 0.0 92.8 1.7 204.3 17.8 6.9 0.5

Other 1-4 family residential��������������������������������������� 1,841.4 0.2 239.9 23.4 663.8 234.2 13.4 5.7 

Commercial and industrial loans ������������������������������������� 1,571.8 35.0 273.5 18.7 740.3 9.4 5.9 2.2

Loans to individuals���������������������������������������������������������� 1,331.7 427.0 254.4 6.5 267.9 12.3 74.5 2.0

Credit card loans ������������������������������������������������������� 677.1 410.6 161.8 0.5 35.3 6.1 18.1 0.

Other loans to individuals ����������������������������������������� 654.6 16.4 92.6 6.0 232.7 6.2 56.4 1.9

All other loans and leases (including farm) ��������������������� 847.2 3.5 280.7 36.6 224.6 13.7 0.4 1.0

Total loans and leases (plus unearned income)�������������� 7,803.9 465.7 1,287.2 151.9 3,218.3 335.8 102.7 17.9 75

Memo: Other Real Estate Owned (in millions)

All other real estate owned����������������������������������������������� 31,823.3 0.1 2,783.9 663.9 18,902.2 1,609.9 43.5 221.8 640

Construction and development��������������������������������� 9,327.7 0.0 3.2 233.0 7,400.0 335.0 8.9 91.2 197

Nonfarm nonresidential��������������������������������������������� 7,650.0 0.0 32.2 254.0 5,784.3 199.0 16.5 81.5 206

Multifamily residential real estate ����������������������������� 832.5 0.0 6.0 16.3 660.2 31.5 0.0 1.3 

1-4 family residential ������������������������������������������������� 6,791.1 0.1 711.6 112.8 3,679.7 617.5 17.3 44.6 207

Farmland�������������������������������������������������������������������� 300.6 0.0 0.0 47.2 221.7 2.5 0.8 3.3

GNMA properties������������������������������������������������������� 6,862.5 0.0 1,974.0 0.7 1,156.3 424.3 0.0 0.0 0

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

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

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

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

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

exceed 25 percent of total assets

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 11 2013, Volume 7, No. 4

Quarterly Banking Profile

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

Asset Size Distribution Geographic Regions*

September 30, 2013 All Insured 

Institutions

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 ������������������������������ 1.20 1.33 0.84 0.76 1.38 0.82 1.43 1.11 1.7

Construction and development������������������������ 0.78 1.12 0.85 0.70 0.78 0.65 0.81 0.56 1.3

Nonfarm nonresidential������������������������������������ 0.50 1.06 0.65 0.49 0.42 0.53 0.49 0.54 0.5

Multifamily residential real estate �������������������� 0.33 0.99 0.49 0.31 0.30 0.31 0.66 0.22 0.5

Home equity loans�������������������������������������������� 0.77 0.90 0.66 0.62 0.79 0.52 0.90 0.92 0.7

Other 1-4 family residential������������������������������ 1.95 1.87 1.20 1.25 2.19 1.26 2.15 1.75 2.9

Commercial and industrial loans ���������������������������� 0.30 1.21 0.69 0.43 0.25 0.39 0.27 0.32 0.2

Loans to individuals������������������������������������������������� 1.40 1.97 1.76 1.57 1.37 1.21 2.08 1.22 1.4

Credit card loans ���������������������������������������������� 1.29 1.68 1.58 1.92 1.27 1.08 2.01 1.06 1.4

Other loans to individuals �������������������������������� 1.51 1.98 1.77 1.44 1.50 1.59 2.11 1.27 1.5

All other loans and leases (including farm) ������������ 0.15 0.40 0.30 0.23 0.14 0.14 0.09 0.26 0.0

Total loans and leases��������������������������������������������� 0.94 1.24 0.83 0.74 0.98 0.79 1.12 0.84 1.1

Percent of Loans Noncurrent** 

All real estate loans ������������������������������������������������� 4.77 2.28 2.17 2.83 5.87 3.06 6.44 5.04 6.3

Construction and development������������������������ 4.89 5.07 5.26 5.44 4.43 6.56 5.66 4.74 3.9

Nonfarm nonresidential������������������������������������ 2.18 2.83 2.12 2.28 2.13 2.43 2.18 2.39 2.1

Multifamily residential real estate �������������������� 0.96 2.53 1.47 1.11 0.80 0.70 1.14 1.13 1.2

Home equity loans�������������������������������������������� 2.70 1.36 1.09 1.25 2.95 1.95 3.41 2.77 2.8

Other 1-4 family residential������������������������������ 7.66 2.08 1.95 3.73 9.29 4.03 9.76 8.33 10.6

Commercial and industrial loans ���������������������������� 0.72 2.13 1.77 1.19 0.58 0.88 0.55 0.71 0.7

Loans to individuals������������������������������������������������� 1.04 0.92 0.97 0.98 1.05 1.03 1.09 0.91 1.3

Credit card loans ���������������������������������������������� 1.21 0.77 0.98 1.65 1.19 1.06 1.60 1.17 1.2

Other loans to individuals �������������������������������� 0.87 0.92 0.97 0.73 0.88 0.95 0.83 0.83 1.3

All other loans and leases (including farm) ������������ 0.29 0.50 0.60 0.46 0.26 0.19 0.24 0.18 0.3

Total loans and leases��������������������������������������������� 2.83 1.96 1.98 2.31 3.04 1.98 3.75 2.91 3.4

Percent of Loans Charged-Off (net, YTD) 

All real estate loans ������������������������������������������������� 0.52 0.29 0.31 0.30 0.63 0.46 0.65 0.52 0.7

Construction and development������������������������ 0.64 0.61 0.82 0.49 0.62 0.91 1.31 0.64 0.22

Nonfarm nonresidential������������������������������������ 0.28 0.43 0.29 0.25 0.29 0.36 0.41 0.35 0.1

Multifamily residential real estate �������������������� 0.10 0.32 0.18 0.21 0.05 0.05 0.10 0.18 0.0

Home equity loans�������������������������������������������� 1.14 0.35 0.42 0.49 1.25 0.65 1.55 1.00 1.4

Other 1-4 family residential������������������������������ 0.55 0.24 0.27 0.31 0.64 0.51 0.48 0.50 0.9

Commercial and industrial loans ���������������������������� 0.32 0.54 0.50 0.34 0.31 0.58 0.27 0.28 0.2

Loans to individuals������������������������������������������������� 2.17 0.43 0.77 1.37 2.26 2.59 1.94 1.28 2.9

Credit card loans ���������������������������������������������� 3.44 2.18 3.77 3.50 3.44 3.16 3.92 3.32 4.1

Other loans to individuals �������������������������������� 0.82 0.41 0.58 0.55 0.86 1.02 0.82 0.62 1.3

All other loans and leases (including farm) ������������ 0.09 0.08 0.15 0.17 0.08 0.07 0.08 0.03 0.1

Total loans and leases��������������������������������������������� 0.72 0.31 0.35 0.38 0.82 0.97 0.69 0.50 0.9

Loans Outstanding (in billions) 

All real estate loans ������������������������������������������������� $4,053.2 $48.5 $607.2 $671.4 $2,726.1 $801.3 $935.7 $786.8 $808.4 $3

Construction and development������������������������ 206.1 2.8 49.3 50.6 103.3 38.8 47.8 32.8 31.

Nonfarm nonresidential������������������������������������ 1,092.5 13.8 243.1 277.4 558.2 247.4 228.3 183.4 163.3 

Multifamily residential real estate �������������������� 252.3 1.5 31.2 56.6 163.0 85.7 30.0 70.5 22.

Home equity loans�������������������������������������������� 517.7 1.3 28.3 44.4 443.8 90.9 136.1 131.9 111.

Other 1-4 family residential������������������������������ 1,841.4 21.4 215.9 226.5 1,377.6 333.6 484.5 348.9 391.8 

Commercial and industrial loans ���������������������������� 1,571.8 8.5 102.7 150.3 1,310.3 233.9 393.8 323.0 339.4 

Loans to individuals������������������������������������������������� 1,331.7 4.5 35.2 72.8 1,219.2 375.0 234.7 193.2 290.9

Credit card loans ���������������������������������������������� 677.1 0.0 2.1 20.1 654.9 275.7 78.5 47.0 166.

Other loans to individuals �������������������������������� 654.6 4.5 33.1 52.7 564.4 99.4 156.2 146.2 124.

All other loans and leases (including farm) ������������ 847.2 8.5 44.0 47.1 747.6 137.7 180.4 214.4 238.

Total loans and leases (plus unearned income)����� 7,803.9 70.0 789.0 941.7 6,003.2 1,547.9 1,744.7 1,517.4 1,676.7 

Memo: Other Real Estate Owned (in millions) 

All other real estate owned�������������������������������������� 31,823.3 883.8 8,896.2 6,571.6 15,471.8 3,658.3 8,127.8 7,648.0 6,464.1 3,95

Construction and development������������������������ 9,327.7 287.1 4,034.8 2,774.6 2,231.2 836.9 2,678.2 1,333.4 1,868.9 1,

Nonfarm nonresidential������������������������������������ 7,650.0 307.7 2,929.9 2,145.4 2,267.0 1,053.9 1,607.1 1,592.4 1,480.2 1,

Multifamily residential real estate �������������������� 832.5 39.3 253.2 216.5 323.5 205.8 111.8 190.2 159.4

1-4 family residential ���������������������������������������� 6,791.1 230.7 1,523.7 1,277.4 3,759.2 1,226.5 1,773.0 1,788.1 949.7 

Farmland����������������������������������������������������������� 300.6 17.8 152.2 92.0 38.6 25.1 74.1 55.4 48.

GNMA properties���������������������������������������������� 6,862.5 1.1 2.5 65.7 6,793.2 310.2 1,883.5 2,688.5 1,898.

* 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 Islan

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 12 2013, Volume 7, No. 4

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

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

3rd

Quarter 

2013

2nd 

Quarter 

2013

1st 

Quarter 

2013

4th 

Quarter 

2012

3rd 

Quarter 

2012

% Change 

12Q3-

13Q3

Less 

Than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

Than 

$10 Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives����������������� 1,420 1,409 1,398 1,363 1,365 4.0 84 874 366 9

Total assets of institutions reporting derivatives ���������� $12,893,020 $12,689,398 $12,688,502 $12,662,780 $12,420,451 3.8 $6,200 $356,921 $1,049,670 $11,480,22

Total deposits of institutions reporting derivatives������� 9,671,930 9,409,428 9,427,223 9,383,383 9,074,347 6.6 5,241 294,689 834,916 8,537,08

Total derivatives������������������������������������������������������������� 242,915,548 236,525,669 232,753,745 224,271,474 229,460,777 5.9 204 19,982 79,885 242,815,47

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 195,486,177 188,302,678 185,029,694 179,126,476 181,573,620 7.7 203 18,116 73,458 195,394,39

Foreign exchange*��������������������������������������������������������� 31,199,117 31,485,719 30,329,231 28,600,020 30,098,397 3.7 0 1,642 4,855 31,192,61

Equity ����������������������������������������������������������������������������� 2,093,955 2,079,940 2,043,789 1,952,110 2,208,326 -5.2 0 102 620 2,093,23

Commodity & other (excluding credit derivatives)�������� 1,287,651 1,275,103 1,449,766 1,402,392 1,582,317 -18.6 1 3 560 1,287,08

Credit������������������������������������������������������������������������������ 12,848,648 13,382,229 13,901,264 13,190,476 13,998,117 -8.2 0 118 393 12,848,13

Total�������������������������������������������������������������������������������� 242,915,548 236,525,669 232,753,745 224,271,474 229,460,777 5.9 204 19,982 79,885 242,815,47

Derivative Contracts by Transaction Type 

Swaps ���������������������������������������������������������������������������� 150,157,095 141,708,887 138,360,564 134,929,637 135,584,411 10.7 37 7,398 48,666 150,100,99

Futures & forwards �������������������������������������������������������� 41,732,945 43,358,478 45,677,282 43,579,398 44,143,779 -5.5 70 6,811 15,976 41,710,08

Purchased options��������������������������������������������������������� 17,618,486 17,640,959 16,632,038 15,660,030 16,596,610 6.2 14 684 4,591 17,613,19

Written options��������������������������������������������������������������� 17,681,296 17,761,600 17,149,678 15,985,091 16,819,969 5.1 83 4,950 10,054 17,666,20

Total�������������������������������������������������������������������������������� 227,189,821 220,469,924 217,819,562 210,154,157 213,144,770 6.6 204 19,843 79,287 227,090,48

Fair Value of Derivative Contracts 

Interest rate contracts���������������������������������������������������� 64,826 61,166 67,451 96,554 98,516 -34.2 0 45 35 64,74

Foreign exchange contracts������������������������������������������ -10,390 -5,177 -6,644 -5,822 -13,618 N/M 0 0 -2 -10,388

Equity contracts������������������������������������������������������������� -1,928 1,396 -2,588 -2,029 -264 N/M 0 12 19 -1,959

Commodity & other (excluding credit derivatives)�������� 1,180 1,319 -2,530 -2,467 -2,590 N/M 0 0 0 1,180

Credit derivatives as guarantor������������������������������������� 27,246 -8,729 -20,833 -40,693 -84,508 N/M 0 0 1 27,245

Credit derivatives as beneficiary����������������������������������� -22,673 13,886 25,372 42,352 87,900 N/M 0 2 -23 -22,651

Derivative Contracts by Maturity** 

Interest rate contracts ����������������������������� < 1 year 91,851,951 88,194,834 86,868,881 83,065,281 84,190,445 9.1 53 5,005 17,669 91,829,22

 ������������������������������������������ 1-5 years 32,987,747 30,698,073 29,342,123 30,502,104 30,961,899 6.5 19 3,382 23,553 32,960,79

 ������������������������������������������ > 5 years 21,753,211 20,837,725 20,313,256 21,448,563 21,990,686 -1.1 41 3,929 20,634 21,728,60

Foreign exchange contracts ������������������� < 1 year 18,966,399 19,249,542 18,647,264 18,347,400 18,781,964 1.0 0 1,221 2,817 18,962,36

 ������������������������������������������ 1-5 years 2,870,025 2,734,201 2,738,365 2,868,426 2,894,870 -0.9 0 0 88 2,869,93

 ������������������������������������������ > 5 years 1,503,977 1,455,297 1,389,930 1,442,901 1,453,914 3.4 0 0 0 1,503,97

Equity contracts��������������������������������������� < 1 year 706,604 660,945 648,510 627,310 638,274 10.7 0 4 146 706,45

 ������������������������������������������ 1-5 years 311,790 271,219 255,625 262,230 290,474 7.3 0 11 117 311,66

 ������������������������������������������ > 5 years 88,294 80,891 74,515 81,851 85,427 3.4 0 28 16 88,25

Commodity & other contracts ����������������� < 1 year 375,292 424,514 480,077 391,393 460,565 -18.5 0 3 179 375,11

 ������������������������������������������ 1-5 years 175,069 163,094 179,413 242,068 247,795 -29.3 0 0 58 175,01

 ������������������������������������������ > 5 years 16,142 15,300 21,538 28,823 25,053 -35.6 0 0 0 16,14

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%)������������������� 27.1 30.5 32.6 35.9 37.2 0.1 0.4

Total potential future exposure to tier 1 capital (%)������ 62.5 62.8 62.1 62.8 66.4 0.1 0.2

Total exposure (credit equivalent amount) 

to tier 1 capital (%)�������������������������������������������������� 89.6 93.3 94.7 98.7 103.6 0.2 0.6 

Credit losses on derivatives***���������������������������������� 181.0 145.0 84.0 230.0 157.0 15.3 0.0 0.0

HELD FOR TRADING 

Number of institutions reporting derivatives����������������� 242 243 240 247 248 -2.4 12 88 79 6

Total assets of institutions reporting derivatives ���������� 10,414,708 10,170,206 10,138,207 10,122,382 9,955,537 4.6 941 42,673 275,535 10,095,55

Total deposits of institutions reporting derivatives������� 7,805,746 7,533,623 7,538,266 7,513,330 7,270,076 7.4 779 35,351 217,228 7,552,38

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 191,708,900 184,309,887 181,197,435 175,375,827 177,664,476 7.9 51 2,395 17,640 191,688,81

Foreign exchange���������������������������������������������������������� 27,526,399 28,055,673 28,425,810 26,892,025 26,858,878 2.5 0 2 2,583 27,523,81

Equity ����������������������������������������������������������������������������� 2,078,451 2,065,640 2,030,592 1,939,747 2,194,867 -5.3 0 0 220 2,078,23

Commodity & other�������������������������������������������������������� 1,278,658 1,264,349 1,433,289 1,386,727 1,559,924 -18.0 1 0 60 1,278,59

Total�������������������������������������������������������������������������������� 222,592,408 215,695,549 213,087,127 205,594,326 208,278,145 6.9 52 2,397 20,502 222,569,45

Trading Revenues: Cash & Derivative Instruments 

Interest rate�������������������������������������������������������������������� 3,080 2,762 2,216 4,155 4,458 -30.9 0 2 27 3,05

Foreign exchange���������������������������������������������������������� 499 3,139 3,190 759 1,020 -51.1 0 0 -1 50

Equity ����������������������������������������������������������������������������� 230 922 830 136 507 -54.6 0 0 0 23

Commodity & other (including credit derivatives) �������� 656 452 1,252 -683 -892 N/M 0 0 0 656

Total trading revenues��������������������������������������������������� 4,465 7,275 7,488 4,367 5,093 -12.3 0 2 25 4,43

Share of Revenue 

Trading revenues to gross revenues (%) ���������������������� 3.9 6.0 6.2 3.7 4.3 0.0 0.

Trading revenues to net operating revenues (%)���������� 20.7 31.2 29.0 19.9 22.4 0.0 1.8

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives����������������� 1,283 1,269 1,262 1,219 1,213 5.8 73 794 327 8

Total assets of institutions reporting derivatives ���������� 12,598,451 12,298,101 12,355,323 12,318,101 11,985,731 5.1 5,332 319,579 945,164 11,328,37

Total deposits of institutions reporting derivatives������� 9,438,733 9,102,437 9,167,823 9,111,173 8,728,198 8.1 4,526 263,463 750,780 8,419,96

Derivative Contracts by Underlying Risk 

Exposure 

Interest rate�������������������������������������������������������������������� 3,777,277 3,992,791 3,832,259 3,750,650 3,909,144 -3.4 152 15,722 55,818 3,705,58

Foreign exchange���������������������������������������������������������� 795,639 756,530 870,503 781,154 921,630 -13.7 0 1,620 2,067 791,95

Equity ����������������������������������������������������������������������������� 15,504 14,300 13,197 12,363 13,458 15.2 0 101 400 15,00

Commodity & other�������������������������������������������������������� 8,992 10,754 16,477 15,664 22,393 -59.8 0 3 500 8,48

Total notional amount ���������������������������������������������������� 4,597,413 4,774,375 4,732,435 4,559,831 4,866,625 -5.5 153 17,446 58,785 4,521,03

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

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

** 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
FDIC Quarterly 13 2013, Volume 7, No. 4

Quarterly Banking Profile

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

Asset Size Distribution

(dollar figures in millions)

3rd 

Quarter

2013

2nd 

Quarter

2013

1st 

Quarter

2013

4th 

Quarter

2012

3rd 

Quarter 

2012

% Change 

12Q3-

13Q3

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

Than $10 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities ����������������������������������������� 82 88 97 159 168 -51.2 1 30 19 3

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� $626,737 $634,882 $636,300 $641,236 $754,730 -17.0 $0 $3,724 $14,255 $608,75

Home equity loans��������������������������������������������������������������������������������������������� 44 46 47 49 51 -13.7 0 1 0 4

Credit card receivables�������������������������������������������������������������������������������������� 17,115 17,945 18,832 18,942 18,423 -7.1 0 273 0 16,84

Auto loans ���������������������������������������������������������������������������������������������������������� 4,708 3,860 4,505 4,684 4,311 9.2 0 0 0 4,70

Other consumer loans ��������������������������������������������������������������������������������������� 4,790 4,938 5,155 5,083 5,226 -8.3 0 3 0 4,78

Commercial and industrial loans����������������������������������������������������������������������� 3,941 4,467 4,025 1,839 3,373 16.8 0 11 1 3,92

All other loans, leases, and other assets���������������������������������������������������������� 104,897 99,224 142,783 199,968 204,902 -48.8 0 3,356 5,314 96,22

Total securitized and sold������������������������������������������������������������������������������������������ 762,231 765,363 811,646 871,800 991,017 -23.1 0 7,367 19,570 735,29

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 2,927 3,086 3,254 3,368 3,581 -18.3 0 7 39 2,88

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

Credit card receivables�������������������������������������������������������������������������������������� 554 557 588 605 666 -16.8 0 109 0 44

Auto loans ���������������������������������������������������������������������������������������������������������� 0 0 0 0 0 0.0 0 0 0 

Other consumer loans ��������������������������������������������������������������������������������������� 168 168 185 200 206 -18.4 0 0 0 16

Commercial and industrial loans����������������������������������������������������������������������� 20 33 41 7 14 42.9 0 0 0 2

All other loans, leases, and other assets���������������������������������������������������������� 1,729 1,861 2,438 2,280 2,317 -25.4 0 2 0 1,72

Total credit exposure ������������������������������������������������������������������������������������������������� 5,397 5,705 6,506 6,460 6,785 -20.5 0 117 39 5,24

Total unused liquidity commitments provided to institution's own securitizations ��� 121 121 121 130 125 -3.2 0 0 0 12

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

1-4 family residential loans�������������������������������������������������������������������������������� 4.1 4.3 4.0 4.5 4.1 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 10.7 9.5 11.5 12.5 12.2 0.0 0.0

Credit card receivables�������������������������������������������������������������������������������������� 1.0 0.8 0.8 0.8 0.9 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.6 0.4 0.3 0.4 0.4 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 5.4 6.0 4.9 6.2 5.5 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.0 0.0 0.0 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 1.1 1.2 1.2 0.9 1.1 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 3.6 3.8 3.4 3.6 3.4 0.0 0.

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

1-4 family residential loans�������������������������������������������������������������������������������� 3.7 4.2 4.7 5.0 4.8 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 34.4 32.3 31.7 29.6 29.1 0.0 0.0

Credit card receivables�������������������������������������������������������������������������������������� 0.6 0.4 0.4 0.3 0.3 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.0 0.0 0.0 0.0 0.0 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 7.1 6.3 6.8 6.9 5.6 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.0 0.1 0.0 0.0 6.6

All other loans, leases, and other assets���������������������������������������������������������� 8.9 10.2 8.7 7.8 8.0 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 4.3 4.9 5.2 5.5 5.3 0.0 0.

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans�������������������������������������������������������������������������������� 0.7 0.5 0.3 1.5 1.0 0.0 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.3 0.2 0.3 1.6 1.3 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 1.9 1.3 0.6 2.6 2.1 0.0 4.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.1 0.1 0.0 0.1 0.1 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 0.7 0.4 0.2 1.0 0.7 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.0 0.0 0.0 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 0.6 0.5 0.1 0.5 0.3 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 0.7 0.5 0.3 1.3 0.9 0.0 0.

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

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

Credit card receivables�������������������������������������������������������������������������������������� 13,451 13,076 11,868 14,514 13,291 1.2 0 321 0 13,13

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

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

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales������������������������������������������������������������ 1,065 1,063 1,058 1,025 1,007 5.8 162 693 163 4

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 48,266 49,471 51,539 52,099 55,384 -12.9 1,482 14,356 10,218 22,21

Home equity, credit card receivables, auto, and other consumer loans ��������� 802 829 852 857 863 -7.1 0 7 7 78

Commercial and industrial loans����������������������������������������������������������������������� 64 71 74 76 46 39.1 1 16 40 

All other loans, leases, and other assets���������������������������������������������������������� 62,143 63,988 64,769 64,999 63,170 -1.6 2 47 423 61,67

Total sold and not securitized������������������������������������������������������������������������������������ 111,275 114,359 117,234 118,031 119,463 -6.9 1,485 14,427 10,688 84,67

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 11,580 12,164 13,077 13,146 15,884 -27.1 110 2,766 3,757 4,94

Home equity, credit card receivables, auto, and other consumer loans ��������� 156 151 167 173 164 -4.9 0 7 4 14

Commercial and industrial loans����������������������������������������������������������������������� 29 34 36 42 38 -23.7 1 16 12 

All other loans, leases, and other assets���������������������������������������������������������� 15,316 15,360 15,216 15,043 14,438 6.1 2 20 66 15,22

Total credit exposure ������������������������������������������������������������������������������������������������� 27,081 27,709 28,496 28,403 30,524 -11.3 114 2,809 3,838 20,32

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others ������� 153 158 167 166 172 -11.0 13 90 31 1

Total credit exposure ������������������������������������������������������������������������������������������������� 44,841 45,095 48,946 57,798 61,957 -27.6 13 213 375 44,24

Total unused liquidity commitments ������������������������������������������������������������������������� 923 828 673 779 776 18.9 0 0 0 92

Other

Assets serviced for others*��������������������������������������������������������������������������������������� 4,771,558 4,872,943 5,184,983 5,349,564 5,500,385 -13.3 6,148 139,532 231,872 4,394,00

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others������������������ 13,050 8,267 7,875 8,372 8,009 62.9 5 0 3 13,04

Unused liquidity commitments to conduits sponsored by institutions 

 and others �������������������������������������������������������������������������������������������������� 40,363 51,893 63,355 68,619 70,886 -43.1 0 0 1,032 39,33

Net servicing income (for the quarter)���������������������������������������������������������������������� 3,407 5,174 4,225 4,497 2,802 21.6 8 186 181 3,03

Net securitization income (for the quarter)��������������������������������������������������������������� 352 273 394 430 509 -30.8 0 15 3 33

Total credit exposure to Tier 1 capital (%)** ������������������������������������������������������������� 5.9 6.0 6.5 7.3 7.8 0.9 2.

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

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

FDIC Quarterly 15 2013, Volume 7, No. 4

Quarterly Banking Profile

Total assets of the 6,891 FDIC-insured institutions 

increased by 1.3 percent ($191.1 billion) during the 

third quarter of 2013. Total deposits increased by 2.3 

percent ($247.8 billion), domestic office deposits 

increased by 2.2 percent ($204.2 billion), and foreign 

office deposits increased by 3.1 percent ($43.6 billion). 

Domestic noninterest-bearing deposits increased by 

4.2 percent ($103.1 billion) and savings deposits and 

interest-bearing checking accounts increased by 2.4 

percent ($123.9 billion), while domestic time deposits 

decreased by 1.4 percent ($22.8 billion). For the 12 

months ending September 30, total domestic deposits 

grew by 6 percent ($539.5 billion), with interest-bearing deposits increasing by 5.6 percent ($371.4 billion) 

and noninterest-bearing deposits rising by 7 percent 

($168.1 billion).1 Foreign deposits fell by 1.1 percent, 

other borrowed money increased by 3.8 percent, and 

securities sold under agreements to repurchase declined 

by 18 percent over the same 12-month period.2

At the end of the third quarter, domestic deposits 

funded 65.8 percent of industry assets, the largest share 

since the fourth quarter of 1993, when domestic deposits funded 67.9 percent of assets. Insured institutions 

held $2.6 trillion in domestic noninterest-bearing 

deposits on September 30, 2013, 71 percent ($1.8 trillion) of which was in noninterest-bearing transaction 

accounts larger than $250,000. Of the $1.8 trillion, $1.6 

trillion exceeded the $250,000 insurance limit. The 

expiration of the unlimited deposit insurance coverage 

for noninterest-bearing transaction accounts at the end 

of 2012 appeared to have no significant impact on 

deposit levels during the first nine months of 2013.3

1

 Throughout the insurance fund discussion, FDIC-insured institutions 

include insured commercial banks and savings associations and, 

except where noted, exclude insured branches of foreign banks. 

2

 Other borrowed money includes FHLB advances, term federal funds, 

mortgage indebtedness, and other borrowings.

3

 The Dodd-Frank Wall Street Reform and Consumer Protection Act 

(Dodd-Frank) enacted on July 21, 2010, provided temporary unlimited 

deposit insurance coverage for noninterest-bearing transaction 

accounts from December 31, 2010, through December 31, 2012, 

regardless of the balance in the account and the ownership capacity of 

the funds. The unlimited coverage was available to all depositors, 

including consumers, businesses, and government entities. The coverage was separate from, and in addition to, the insurance coverage 

provided for a depositor’s other accounts held at an FDIC-insured 

bank.

The aggregate amount exceeding the $250,000 limit in 

noninterest-bearing transaction deposits increased by 

$56 billion, or less than 4 percent, since the end of 

2012. Table 1 shows the distribution of noninterestbearing transaction accounts larger than $250,000 by 

institution asset size.

Total estimated insured deposits increased by 0.1 percent 

in the third quarter of 2013.4 For institutions existing at 

the start and the end of the most recent quarter, insured 

deposits increased during the quarter at 3,025 institutions (44 percent), decreased at 3,841 institutions (56 

percent), and remained unchanged at 29 institutions. 

Excluding those deposit amounts that received temporary insurance coverage through the end of 2012, estimated insured deposits increased by 3.7 percent over the 

12 months ending September 30, 2013.

The condition of the Deposit Insurance Fund (DIF) 

continues to improve. The DIF increased by $2.9 

billion during the third quarter to $40.8 billion (unaudited). Assessment income of $2.3 billion and a negative provision for insurance losses of $539 million were 

primarily responsible for the increase. Investment 

income, realized and unrealized gains on securities, and 

all other miscellaneous income net of expenses added 

another $307 million. Operating expenses reduced the 

fund balance by $298 million. The DIF’s reserve ratio 

was 0.68 percent on September 30, up from 0.64 

percent at June 30, 2013, and 0.35 percent four quarters 

ago. For the first nine months of 2013, 22 insured institutions, with combined assets of $5.9 billion, failed at a 

current estimated cost to the DIF of $1.2 billion.

Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets 

minus average tangible equity.5 Revisions to insurance 

assessment rates and risk-based pricing rules for large 

banks (banks with assets greater than $10 billion) also 

became effective on that date. The Fourth Quarter 

4

 Figures for estimated insured deposits in this discussion include 

insured branches of foreign banks, in addition to insured commercial 

banks and savings institutions.

5

 There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank.

■ Insured Deposit Growth Flat

■ DIF Reserve Ratio Rises 4 Basis Points to 0.68 Percent

■ Six Institutions Fail During Third Quarter

INSURANCE FUND INDICATORS
FDIC Quarterly 16 2013, Volume 7, No. 4

2010 Quarterly Banking Profile includes a more detailed 

explanation of these changes. Table 2 shows the distribution of the assessment base as of September 30 by 

institution asset size category.

Dodd-Frank requires that, for at least five years, the 

FDIC must make available to the public the reserve 

ratio and the Designated Reserve Ratio (DRR) using 

both estimated insured deposits and the new assessment 

base. As of September 30, 2013, the FDIC reserve ratio 

would have been 0.33 percent using the new assessment 

base (compared to 0.68 percent using estimated insured 

deposits), and the 2 percent DRR using estimated 

insured deposits would have been 0.95 percent using 

the new assessment base.

Author: Kevin Brown, Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

Table 1

Insured Commercial Banks and Savings Institutions as of September 30, 2013

Distribution of Noninterest-Bearing Domestic Deposits by Asset Size

Asset Size

Number of 

Institutions

Total Assets 

($ Bil.)

Domestic Noninterest-Bearing Transaction Accounts

Larger Than $250,000* Other 

NoninterestBearing 

Deposits** 

($ Bil.)

Total 

($ Bil.)

Amount Above 

the $250,000 

Coverage Limit 

($ Bil.)

Average 

Account 

Size 

($ Thou.)

Average 

Number of 

Accounts per 

Institution

Less Than $1 Billion 6,223 $1,369.0 $78.7 $49.9 $682 19 $129.2

$1 - $10 Billion 561 1,453.1 117.4 84.4 890 235 114.5

$10 - $50 Billion 71 1,461.3 120.7 96.7 1,260 1,349 91.4

$50 - $100 Billion 17 1,344.0 157.6 139.9 2,217 4,182 48.5

Over $100 Billion 19 8,968.9 1,345.4 1,227.6 2,855 24,804 356.9

Total 6,891 14,596.2 1,819.8 1,598.5 2,055 128 740.5

June 30, 2013 6,940 14,405.2 1,697.1 1,486.3 2,013 121 760.1

March 31, 2013 7,019 14,424.5 1,678.7 1,472.1 2,031 118 766.0

December 31, 2012 7,083 14,450.7 1,753.5 1,542.3 2,075 119 787.9

September 30, 2012 7,181 14,223.3 1,693.5 1,491.7 2,098 112 698.7

June 30, 2012 7,245 14,031.3 1,567.3 1,374.7 2,034 106 730.5

March 31, 2012 7,308 13,926.0 1,496.5 1,309.9 2,004 102 735.8

December 31, 2011 7,357 13,892.1 1,577.3 1,395.5 2,169 99 688.0

September 30, 2011 7,437 13,811.9 1,385.3 1,209.7 1,972 94 708.1

June 30, 2011 7,513 13,602.6 1,207.1 1,040.8 1,815 89 705.3

March 31, 2011 7,574 13,414.3 1,047.1 888.7 1,653 84 699.9

December 31, 2010 7,658 13,318.9 1,010.0 854.2 1,621 81 679.5

* The Dodd-Frank Act provided temporary unlimited coverage through 12/31/2012, after which these accounts are not insured above the basic $250,000 coverage limit.

** Includes noninterest-bearing transaction accounts smaller than $250,000 and noninterest-bearing deposits not classified as transaction accounts.

Table 2

Distribution of the Assessment Base for FDIC-Insured Institutions* 

by Asset Size

Data as of September 30, 2013

Asset Size

Number of 

Institutions

Percent of 

Total Institutions

Assessment Base** 

($ Bil.)

Percent of 

Base

Less Than $1 Billion 6,223 90.3 $1,214.4 9.7 

$1 - $10 Billion 561 8.1 1,285.0 10.3 

$10 - $50 Billion 71 1.0 1,303.9 10.4 

$50 - $100 Billion 17 0.2 1,129.4 9.0 

Over $100 Billion 19 0.3 7,555.9 60.5 

Total 6,891 100.0 12,488.6 100.0 

* Excludes insured U.S. branches of foreign banks.

** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.
FDIC Quarterly 17 2013, Volume 7, No. 4

Quarterly Banking Profile

DIF Reserve Ratios

Percent of Insured Deposits

-0.15 -0.12 -0.02

0.06

0.12

0.17

0.22

0.32 0.35

0.44

0.59

0.64

0.68

9/10 3/11 9/11 3/12 9/12 3/13 9/13

Table I-B. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

3rd 

Quarter 

2013

2nd 

Quarter 

2013

1st 

Quarter 

2013

4th 

Quarter 

2012

3rd 

Quarter 

2012

2nd 

Quarter 

2012

1st 

Quarter 

2012

4th 

Quarter 

2011

3rd 

Quarter 

2011

2nd 

Quarter 

2011

1st 

Quarter 

2011

4th 

Quarter 

2010

3rd 

Quarter 

2010

Beginning Fund Balance ..... $37,871 $35,742 $32,958 $25,224 $22,693 $15,292 $11,827 $7,813 $3,916 -$1,023 -$7,352 -$8,009 -$15,247

Changes in Fund Balance:

Assessments earned .............. 2,339 2,526 2,645 2,937 2,833 2,933 3,694 3,209 3,642 3,163 3,484 3,498 3,592

Interest earned on 

investment securities ...... 34 54 -9 66 -8 81 20 33 30 37 28 39 40

Realized gain on sale of

investments ...................... 156 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses ............... 298 439 436 469 442 407 460 334 433 463 395 452 414

Provision for insurance 

losses ............................... -539 -33 -499 -3,344 -84 -807 12 1,533 -763 -2,095 -3,089 2,446 -3,763

All other income, 

net of expenses ............... 46 51 55 1,878 57 4,095 63 2,599 83 80 66 48 94

Unrealized gain/(loss) on 

available-for-sale 

securities ......................... 71 -96 30 -22 7 -108 160 40 -188 27 57 -30 163

Total fund balance change ..... 2,887 2,129 2,784 7,734 2,531 7,401 3,465 4,014 3,897 4,939 6,329 657 7,238

Ending Fund Balance ........... 40,758 37,871 35,742 32,958 25,224 22,693 15,292 11,827 7,813 3,916 -1,023 -7,352 -8,009

Percent change from 

four quarters earlier ......... 61.58 66.88 133.73 178.67 222.85 479.49 NM NM NM NM NM

Reserve Ratio (%) ................. 0.68 0.64 0.59 0.44 0.35 0.32 0.22 0.17 0.12 0.06 -0.0

Estimated Insured 

Deposits** .............................. 5,969,177 5,963,323 6,010,216 7,406,652 7,250,062 7,083,433 7,032,875 6,974,690 6,756,302 6,524,750 6,380,407 6,302,329 5,421,425

Percent change from 

four quarters earlier ......... -17.67 -15.81 -14.54 6.19 7.31 8.56 10.23 10.67 24.62 20.00 16.

Domestic Deposits ............... 9,630,395 9,424,433 9,454,580 9,474,581 9,084,803 8,937,725 8,848,706 8,782,134 8,526,713 8,244,900 8,006,898 7,887,733 7,753,409

Percent change from 

four quarters earlier ......... 6.01 5.45 6.85 7.88 6.55 8.40 10.51 11.34 9.97 7.34 3

Number of Institutions 

Reporting ........................ 6,900 6,949 7,028 7,092 7,190 7,254 7,317 7,366 7,446 7,522 7,583 7,667 7,770

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

9/10 -$8,009 $5,421,425

12/10 -7,352 6,302,329

3/11 -1,023 6,380,407

6/11 3,916 6,524,750

9/11 7,813 6,756,302

12/11 11,827 6,974,690

3/12 15,292 7,032,875

6/12 22,693 7,083,433

9/12 25,224 7,250,062

12/12 32,958 7,406,652

3/13 35,742 6,010,216

6/13 37,871 5,963,323

9/13 40,758 5,969,177

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

(dollar figures in millions) 2013*** 2012*** 2012 2011 2010 2009 2008

Problem Institutions

Number of institutions ������������������������������������������������������������ 515 694 651 813 884 702 252

Total assets����������������������������������������������������������������������������� $174,188 $262,154 $232,701 $319,432 $390,017 $402,782 $159,405

Failed Institutions

Number of institutions ������������������������������������������������������������ 22 43 51 92 157 140 25

Total assets ����������������������������������������������������������������������� $5,860 $9,465 $11,617 $34,923 $92,085 $169,709 $371,945

Assisted Institutions** ***

Number of institutions ������������������������������������������������������������ 0 0 0 0 0 8 5

Total assets����������������������������������������������������������������������������� $0 $0 $0 $0 $0 $1,917,482 $1,306,042

* Quarterly financial statement results are unaudited. NM - Not meaningf

** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act

(Dodd-Frank) temporarily provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012

*** Through September 30

  Total assets are based on final Call Reports submitted by failed institutions

** ***Assisted institutions represent five institutions under a single holding company that received assistance in 2008, and eight institutions under a different single holding company that 

received assistance in 2009
FDIC Quarterly 18 2013, Volume 7, No. 4

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

(dollar figures in millions) 

September 30, 2013

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ����������������������������������������������� 5,937 $13,537,669 $8,791,210 $5,253,915

 FDIC-Supervised ������������������������������������������������������������������� 3,907 2,143,271 1,663,188 1,255,179

 OCC-Supervised�������������������������������������������������������������������� 1,184 9,396,946 5,833,476 3,285,919

 Federal Reserve-Supervised������������������������������������������������� 846 1,997,452 1,294,546 712,816

FDIC-Insured Savings Institutions ���������������������������������������������� 954 1,058,566 808,471 687,372

 OCC-Supervised Savings Institutions ����������������������������������� 515 712,555 547,435 468,783

 FDIC-Supervised Savings Institutions����������������������������������� 439 346,011 261,036 218,588

Total Commercial Banks and Savings Institutions ���������������������� 6,891 14,596,235 9,599,681 5,941,287

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks ������������������������������������������������� 9 68,807 30,714 27,8

Total FDIC-Insured Institutions���������������������������������������������������� . 6,900 14,665,042 9,630,395 5,969,1

* Excludes $1.4 trillion in foreign office deposits, which are uninsure

Table IV-B. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending June 30, 2013 (dollar figures in billions)

Annual Rate in Basis Points

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base*

Percent of Total 

Assessment Base

2.50-5.00 1,370 19.72 $818 

5.01-7.50 2,716 39.08 4,491 3

7.51-10.00 1,501 21.60 6,084 4

10.01-15.00 765 11.01 739 

15.01-20.00 39 0.56 59 

 20.01-25.00 461 6.63 223 

 25.01-30.00 9 0.13 35 

 30.01-35.00 83 1.19 22 

greater than 35.00 5 0.07 13 0

* Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as 

required by the Dodd-Frank Act
FDIC Quarterly 19 2013, Volume 7, No. 4

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 VIII-A.

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

the FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and savings institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

Securitization, and Asset Sales Activities) aggregate information only for insured commercial banks and state-chartered 

savings banks that file quarterly Call Reports. Table VIII-A 

(Trust Services) aggregates Trust asset and income information collected annually from all FDIC-insured institutions. 

Some tables are arrayed by groups of FDIC-insured institutions based on predominant types of asset concentration, 

while other tables aggregate institutions by asset size and geographic region. Quarterly and full-year data are provided for 

selected indicators, including aggregate condition and income 

data, performance ratios, condition ratios, and structural 

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

Tables I-B through IV-B.

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

comparative quarterly data related to the Deposit Insurance 

Fund (DIF), problem institutions, failed/assisted institutions, 

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by 

the FDIC through the DIF are not included in the FDIC 

Quarterly Banking Profile. U.S. branches of institutions 

headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. 

Efforts are made to obtain financial reports for all active 

institutions. However, in some cases, final financial reports 

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

DATA SOURCES

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. (TFR filers began filing Call Reports effective 

with the quarter ending March 31, 2012.) This information is 

stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required 

to file separate reports. Data from subsidiary institution 

reports are included in the Quarterly Banking Profile tables, 

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

for any double-counting of subsidiary data. Additionally, 

certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports. (TFR 

filers began filing Call Reports effective with the quarter ending March 31, 2012.)

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may relocate 

across state lines or change their charters, resulting in an 

inter-regional or inter-industry migration, e.g., institutions 

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Indemnification Assets and Accounting Standards Update No. 2012-

06 – In October 2012, the FASB issued Accounting Standards 

Update (ASU) No. 2012-06, “Subsequent Accounting for an 

Indemnification Asset Recognized at the Acquisition Date as 

a Result of a Government-Assisted Acquisition of a Financial 

Institution,” to address the subsequent measurement of an 

indemnification asset recognized in an acquisition of a financial institution that includes an FDIC loss-sharing agreement. 

This ASU amends ASC Topic 805, Business Combinations 

(formerly FASB Statement No. 141 (revised 2007),”Business 

Combinations”), which includes guidance applicable to FDICassisted acquisitions of failed institutions.

Under the ASU, when an institution experiences a change in 

the cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash 

flows expected to be collected on the assets covered by the 

loss-sharing agreement, the institution should account for the 

change in the measurement of the indemnification asset on 

the same basis as the change in the assets subject to indemnification. Any amortization of changes in the value of the 

indemnification asset should be limited to the lesser of the 

term of the indemnification agreement and the remaining life 

of the indemnified assets.

The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2012. 

For institutions with a calendar year fiscal year, the ASU takes 

effect January 1, 2013. Early adoption of the ASU is permitted. 

The ASU’s provisions should be applied prospectively to any 

new indemnification assets acquired after the date of adoption 

and to indemnification assets existing as of the date of adoption arising from an FDIC-assisted acquisition of a financial 

institution. Institutions with indemnification assets arising 

from FDIC loss-sharing agreements are expected to adopt ASU 

2012-06 for Call Report purposes in accordance with the effective date of this standard. For additional information, refer to 

ASU 2012-06, available at http:// www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.
FDIC Quarterly 20 2013, Volume 7, No. 4

ed accounting principles, institutions may not record the 

effect of this tax change in their balance sheets and income 

statements for financial and regulatory reporting purposes 

until the period in which the law was enacted, i.e., the first 

quarter of 2009.

Troubled Debt Restructurings and Current Market Interest Rates – 

Many institutions are restructuring or modifying the terms of 

loans to provide payment relief for those borrowers who have 

suffered deterioration in their financial condition. Such loan 

restructurings may include, but are not limited to, reductions 

in principal or accrued interest, reductions in interest rates, 

and extensions of the maturity date. Modifications may be 

executed at the original contractual interest rate on the loan, 

a current market interest rate, or a below-market interest rate. 

Many of these loan modifications meet the definition of a 

troubled debt restructuring (TDR).

The TDR accounting and reporting standards are set forth in 

ASC Subtopic 310-40, Receivables – Troubled Debt 

Restructurings by Creditors (formerly FASB Statement No. 

15, “Accounting by Debtors and Creditors for Troubled Debt 

Restructurings,” as amended). This guidance specifies that a 

restructuring of a debt constitutes a TDR if, at the date of 

restructuring, the creditor for economic or legal reasons related to a debtor’s financial difficulties grants a concession to 

the debtor that it would not otherwise consider.

In the Call Report, until a loan that is a TDR is paid in full or 

otherwise settled, sold, or charged off, it must be reported in 

the appropriate loan category, as well as identified as a performing TDR loan, if it is in compliance with its modified 

terms. If a TDR is not in compliance with its modified terms, 

it is reported as a past-due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past 

due and nonaccrual loans. To be considered in compliance 

with its modified terms, a loan that is a TDR must not be in 

nonaccrual status and must be current or less than 30 days past 

due on its contractual principal and interest payments under 

the modified repayment terms. A loan restructured in a TDR 

is an impaired loan. Thus, all TDRs must be measured for 

impairment in accordance with ASC Subtopic 310-10, 

Receivables – Overall (formerly FASB Statement No. 114, 

“Accounting by Creditors for Impairment of a Loan,” as 

amended), and the Call Report Glossary entry for “Loan 

Impairment.” Consistent with ASC Subtopic 310-10, TDRs 

may be aggregated and measured for impairment with other 

impaired loans that share common risk characteristics by using 

historical statistics, such as average recovery period and 

average amount recovered, along with a composite effective 

interest rate. The outcome of such an aggregation approach 

must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call Report 

instructions for loans that are “individually” considered 

impaired instead of the measurement method prescribed in 

ASC Subtopic 450-20, Contingencies – Loss Contingencies 

(formerly FASB Statement No. 5, “Accounting for Contingencies”) for loans not individually considered impaired that 

are collectively evaluated for impairment. When a loan not 

previously considered individually impaired is restructured and 

determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan 

to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the 

methods prescribed in ASC Subtopic 310-10.

Goodwill Impairment Testing – In September 2011, the FASB 

issued Accounting Standards Update (ASU) No. 2011-08, 

“Testing Goodwill for Impairment,” to address concerns about 

the cost and complexity of the existing goodwill impairment 

test in ASC Topic 350, Intangibles-Goodwill and Other 

(formerly FASB Statement No. 142, “Goodwill and Other 

Intangible Assets”). The ASU’s amendments to ASC 

Topic 350 are effective for annual and interim goodwill 

impairment tests performed for fiscal years beginning after 

December 15, 2011 (i.e., for annual or interim tests performed 

on or after January 1, 2012, for institutions with a calendar 

year fiscal year). Early adoption of the ASU was permitted. 

Under ASU 2011-08, an institution has the option of first 

assessing qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering 

all relevant events and circumstances, an institution determines it is unlikely (that is, a likelihood of 50 percent or less) 

that the fair value of a reporting unit is less than its carrying 

amount (including goodwill), then the institution does not 

need to perform the two-step goodwill impairment test. If the 

institution instead concludes that the opposite is true (that is, 

it is likely that the fair value of a reporting unit is less than its 

carrying amount), then it is required to perform the first step 

and, if necessary, the second step of the two-step goodwill 

impairment test. Under ASU 2011-08, an institution may 

choose to bypass the qualitative assessment for any reporting 

unit in any period and proceed directly to performing the first 

step of the two-step goodwill impairment test.

Extended Net Operating Loss Carryback Period – The Worker, 

Homeownership, and Business Assistance Act of 2009, which 

was enacted on November 6, 2009, permits banks and other 

businesses, excluding those banking organizations that 

received capital from the U.S. Treasury under the Troubled 

Asset Relief Program, to elect a net operating loss carryback 

period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after 

December 31, 2007, and beginning before January 1, 2010. 

For calendar-year banks, this extended carryback period 

applies to either the 2008 or 2009 tax year. The amount of 

the net operating loss that can be carried back to the fifth 

carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to 

other carryback years.

Under generally accepted accounting principles, banks may 

not record the effects of this tax change in their balance 

sheets and income statements for financial and regulatory 

reporting purposes until the period in which the law was 

enacted, i.e., the fourth quarter of 2009. Therefore, banks 

should recognize the effects of this fourth quarter 2009 tax 

law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in 

their Call Reports for December 31, 2009. Banks should not 

amend their Call Reports for prior quarters for the effects of 

the extended net operating loss carryback period.

The American Recovery and Reinvestment Act of 2009, 

which was enacted on February 17, 2009, permits qualifying 

small businesses, including FDIC-insured institutions, to elect 

a net operating loss carryback period of three, four, or five 

years instead of the usual carryback period of two years for 

any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accept-
FDIC Quarterly 21 2013, Volume 7, No. 4

Quarterly Banking Profile

ASC Topic 805 (formerly Business Combinations and Noncontrolling 

(Minority) Interests) – In December 2007, the FASB issued 

Statement No. 141 (Revised), Business Combinations FAS 

141(R)), and Statement No. 160, Noncontrolling Interests in 

Consolidated Financial Statements (FAS 160). Under FAS 

141(R), all business combinations, including combinations of 

mutual entities, are to be accounted for by applying the acquisition method. FAS 160 defines a noncontrolling interest, also 

called a minority interest, as the portion of equity in an institution’s subsidiary not attributable, directly or indirectly, to the 

parent institution. FAS 160 requires an institution to clearly 

present in its consolidated financial statements the equity 

ownership in and results of its subsidiaries that are attributable 

to the noncontrolling ownership interests in these subsidiaries. 

FAS 141(R) applies prospectively to business combinations for 

which the acquisition date is on or after the beginning of the 

first annual reporting period beginning on or after December 

15, 2008. Similarly, FAS 160 is effective for fiscal years beginning on or after December 15, 2008. Thus, for institutions 

with calendar-year fiscal years, these two accounting standards 

take effect in 2009. Beginning in March 2009, Institution 

equity capital and Noncontrolling interests are separately 

reported in arriving at Total equity capital and Net income.

ASC Topic 820 (formerly FASB Statement No. 157 Fair Value 

Measurements issued in September 2006) and ASC Topic 825 

(formerly FASB Statement No. 159 The Fair Value Option for 

Financial Assets and Financial Liabilities) issued in February 2007 – 

both are effective in 2008 with early adoption permitted in 

2007. FAS 157 defines fair value and establishes a framework 

for developing fair value estimates for the fair value measurements that are already required or permitted under other standards. FASB FSP 157-4, issued in April 2009, provides 

additional guidance for estimating fair value in accordance 

with FAS 157 when the volume and level of activity for the 

asset or liability have significantly decreased. The FSP also 

includes guidance on identifying circumstances that indicate a 

transaction is not orderly. The FSP is effective for interim and 

annual reporting periods ending after June 15, 2009, with early 

adoption permitted for periods ending after March 15, 2009.

Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value go 

through earnings for trading securities and most derivatives. 

Changes in the fair value of available-for-sale securities are 

reported in other comprehensive income. Available-for-sale 

securities and held-to-maturity debt securities are written down 

to fair value if impairment is other than temporary and loans 

held for sale are reported at the lower of cost or fair value.

FAS 159 allows institutions to report certain financial assets 

and liabilities at fair value with subsequent changes in fair 

value included in earnings. In general, an institution may 

elect the fair value option for an eligible financial asset or 

liability when it first recognizes the instrument on its balance 

sheet or enters into an eligible firm commitment.

ASC Topic 715 (formerly FASB Statement No. 158 Employers’ 

Accounting for Defined Benefit Pension and Other Postretirement 

Plans) – refer to previously published Quarterly Banking Profile

notes: http://www2.fdic.gov/qbp/2011mar/qbpnot.html.

ASC Topic 860 (formerly FASB Statement No. 156 Accounting for 

Servicing of Financial Assets) – refer to previously published 

Quarterly Banking Profile notes: http://www2.fdic.gov/

qbp/2011mar/qbpnot.html.

Troubled Debt Restructurings and Accounting Standards Update 

No. 2011-02 – In April 2011, the FASB issued Accounting 

Standards Update (ASU) No. 2011-02, “A Creditor’s 

Determination of Whether a Restructuring Is a Troubled 

Debt Restructuring,” to provide additional guidance to help 

creditors determine whether a concession has been granted to 

a borrower and whether a borrower is experiencing financial 

difficulties. The guidance is also intended to reduce diversity 

in practice in identifying and reporting TDRs. This ASU was 

effective for public companies for interim and annual periods 

beginning on or after June 15, 2011, and should have been 

applied retrospectively to the beginning of the annual period 

of adoption for purposes of identifying TDRs. The measurement of impairment for any newly identified TDRs resulting 

from retrospective application should have been applied prospectively in the first interim or annual period beginning on 

or after June 15, 2011. (For most public institutions, the ASU 

takes effect July 1, 2011, but retrospective application begins 

as of January 1, 2011.) Nonpublic companies should apply the 

new guidance for annual periods ending after December 15, 

2012, including interim periods within those annual periods. 

(For most nonpublic institutions, the ASU took effect 

January 1, 2012.) Early adoption of the ASU was permitted 

for both public and nonpublic entities. Nonpublic entities 

that adopt early are subject to a retrospective identification 

requirement. For additional information, refer to ASU 2011-

02, available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Accounting for Loan Participations – Amended ASC Topic 860 

(formerly FAS 166) modified the criteria that must be met in 

order for a transfer of a portion of a financial asset, such as a 

loan participation, to qualify for sale accounting. These 

changes apply to transfers of loan participations on or after 

the effective date of amended ASC Topic 860 (January 1, 

2010, for banks with calendar year fiscal year), including 

advances under lines of credit that are transferred on or after 

the effective date of amended ASC Topic 860 even if the line 

of credit agreements were entered into before this effective 

date. Therefore, banks with a calendar-year fiscal year must 

account for transfers of loan participations on or after January 

1, 2010, in accordance with amended ASC Topic 860. In 

general, loan participations transferred before the effective 

date of amended ASC Topic 860 are not affected by this new 

accounting standard.

Under amended ASC Topic 860, if a transfer of a portion of 

an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender) 

must evaluate whether the transfer meets all of the conditions 

in this accounting standard to qualify for sale accounting.

Other-Than-Temporary Impairment – When the fair value of an 

investment in an individual available-for-sale or held-tomaturity security is less than its cost basis, the impairment is 

either temporary or other-than-temporary. The amount of the 

total other-than-temporary impairment related to credit loss 

must be recognized in earnings, but the amount of total 

impairment related to other factors must be recognized in 

other comprehensive income, net of applicable taxes. To 

determine whether the impairment is other-than-temporary, 

an institution must apply the applicable accounting guidance 

– refer to previously published Quarterly Banking Profile notes: 

http://www2.fdic.gov/qbp/2011mar/qbpnot.html.
FDIC Quarterly 22 2013, Volume 7, No. 4

ASC Topic 740 (formerly FASB Interpretation No. 48 on Uncertain 

Tax Positions) – refer to previously published Quarterly Banking 

Profile notes: http://www2.fdic.gov/qbp/2011mar/qbpnot.html.

ASC Topic 718 (formerly FASB Statement No. 123 (Revised 2004) 

and Share-Based Payments – refer to previously published 

Quarterly Banking Profile notes: http://www2.fdic.gov/

qbp/2008dec/qbpnot.html.

ASC Topic 815 (formerly FASB Statement No. 133 Accounting for 

Derivative Instruments and Hedging Activities) – refer to previously published Quarterly Banking Profile notes: http://www2.

fdic.gov/qbp/2008dec/qbpnot.html.

Accounting Standards Codification – refer to previously published 

Quarterly Banking Profile notes: http://www2.fdic.gov/

qbp/2011sep/qbpnot.html.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid 

deposit insurance assessments, and other assets.

All other liabilities – bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance assessment base has changed to “average consolidated 

total assets minus average tangible equity” with an additional 

adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the 

assessment base was “assessable deposits” and consisted of DIF 

deposits (deposits insured by the FDIC Deposit Insurance 

Fund) in banks’ domestic offices with certain adjustments.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller- provided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 

2008 under the TARP, the Treasury Department purchase of 

noncumulative perpetual preferred stock and related warrants 

that is treated as Tier 1 capital for regulatory capital purposes 

is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued 

by publicly-traded banks are reflected as well in “Surplus.” 

Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock are classified in 

a bank’s balance sheet as “Other liabilities.”

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.

ASC Topic 815 (formerly FASB Statement No. 155 Accounting for 

Certain Hybrid Financial Instruments) – refer to previously published Quarterly Banking Profile notes: http://www2.fdic.gov/

qbp/2011mar/qbpnot.html.

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, 

ASC Topic 860 (formerly 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 buy-back 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.

ASC Topics 860 & 810 (formerly FASB Statements 166 & 167) – 

In June 2009, the FASB issued Statement No. 166, 

Accounting for Transfers of Financial Assets (FAS 166), and 

Statement No. 167, Amendments to FASB Interpretation 

No. 46(R) (FAS 167), which change the way entities account 

for securitizations and special purpose entities. FAS 166 

revised FASB Statement No. 140, Accounting for Transfers 

and Servicing of Financial Assets and Extinguishments of 

Liabilities, by eliminating the concept of a “qualifying specialpurpose entity,” creating the concept of a “participating interest,” changing the requirements for derecognizing financial 

assets, and requiring additional disclosures. FAS 167 revised 

FASB Interpretation No. 46(R), Consolidation of Variable 

Interest Entities, by changing how a bank or other company 

determines when an entity that is insufficiently capitalized or 

is not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under 

FAS 167, a bank must perform a qualitative assessment to 

determine whether its variable interest or interests give it a 

controlling financial interest in a VIE. If a bank’s variable 

interest or interests provide it with the power to direct the 

most significant activities of the VIE, and the right to receive 

benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE.

Both FAS 166 and FAS 167 take effect as of the beginning of 

each bank’s first annual reporting period that begins after 

November 15, 2009, for interim periods therein, and for interim and annual reporting periods thereafter (i.e., as of January 

1, 2010, for banks with a calendar year fiscal year). Earlier 

application is prohibited. Banks are expected to adopt FAS 

166 and FAS 167 for Call Report purposes in accordance with 

the effective date of these two standards. Also, FAS 166 has 

modified the criteria that must be met in order for a transfer of 

a portion of a financial asset, such as a loan participation, to 

qualify for sale accounting. These changes apply to transfers of 

loan participations on or after the effective date of FAS 166. 

Therefore, banks with a calendar year fiscal year must account 

for transfers of loan participations on or after January 1, 2010, 

in accordance with FAS 166. In general, loan participations 

transferred before the effective date of FAS 166 (January 1, 

2010, for calendar year banks) are not affected by this new 

accounting standard and pre-FAS 166 participations that were 

properly accounted for as sales under FASB Statement No. 

140 will continue to be reported as having been sold.
FDIC Quarterly 23 2013, Volume 7, No. 4

Quarterly Banking Profile

Estimated insured deposits – in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Beginning March 31, 2008, for institutions that file Call 

Reports, insured deposits are total assessable deposits minus 

estimated uninsured deposits. Beginning September 30, 2009, 

insured deposits include deposits in accounts of $100,000 to 

$250,000 that are covered by a temporary increase in the 

FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and 

Consumer Protection Act enacted on July 21, 2010, made 

permanent the standard maximum deposit insurance amount 

(SMDIA) of $250,000. Also, the Dodd-Frank Act amended 

the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit 

insurance account category. All funds held in noninterestbearing transaction accounts were fully insured, without limit, 

from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on 

the balance sheet—including trading assets and liabilities, 

available-for-sale securities, loans held for sale, assets and 

liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods 

of market stress, the fair values of some financial instruments 

and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as 

reported by Call Report filers and by TFR filers.

Goodwill and other intangibles – intangible assets include 

servicing rights, purchased credit card relationships, and other 

identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired, less subsequent impairment adjustments. Other 

intangible assets are recorded at fair value, less subsequent 

quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties, and 

all other loans secured by real estate.

Loans to individuals – includes outstanding credit card balances 

and other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with 

remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other 

seller-provided credit enhancements provided by the reporting bank to securitizations.

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off.

Credit enhancements – techniques whereby a company attempts 

to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit 

enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be 

associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by 

the Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, 

amounts of derivatives represent the level of involvement in 

the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent 

the amounts used to calculate contractual cash flows to be 

exchanged.

Derivatives credit equivalent amount – the fair value of the 

derivative plus an additional amount for potential future credit exposure based on the notional amount, the remaining 

maturity and type of the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts 

exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and 

interest rates). Futures contracts are standardized and are 

traded on organized exchanges which set limits on counterparty credit exposure. Forward contracts do not have 

standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the 

right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

(strike price) during a period or on a specified future date, 

in return for compensation (such as a fee or premium). 

The seller is obligated to purchase or sell the variable or 

index at the discretion of the buyer of the contract.

Swaps – obligations between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying 

variable or index by specified reference rates or prices. 

Except for currency swaps, the notional principal is used 

to calculate each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk, and operational risk, as well as, 

interest rate risk.

Domestic deposits to total assets – total domestic office deposits 

as a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn 

interest or dividend income.

Efficiency ratio – Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, 

so that a lower value indicates greater efficiency.
FDIC Quarterly 24 2013, Volume 7, No. 4

Reserves for losses – the allowance for loan and lease losses on 

a consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms.

Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total (consolidated) assets. The basic yardstick of bank 

profitability.

Return on equity – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total equity capital.

Risk-based capital groups – definition:

(Percent)

Total 

Risk-Based 

Capital*

Tier 1

Risk-Based 

Capital*

Tier 1 

Leverage

Tangible

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.

Risk Categories and Assessment Rate Schedule – The current risk 

categories became effective January 1, 2007. Capital ratios 

and supervisory ratings distinguish one risk category from 

another. Effective April 1, 2011, risk categories for large institutions (generally those with at least $10 billion in assets) are 

eliminated. The following table shows the relationship of risk 

categories (I, II, III, IV) for small institutions to capital and 

supervisory groups as well as the initial base assessment rates 

(in basis points) for each risk category. Supervisory Group A 

generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite rating of 3; and Supervisory 

Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment 

capital groups, undercapitalized includes institutions that are 

significantly or critically undercapitalized.

Capital Category

Supervisory Group

A B C

1. Well Capitalized I

5–9 bps II

14 bps

III

23 bps 2. Adequately Capitalized II

14 bps

3. Undercapitalized III

23 bps

IV

35 bps

Effective April 1, 2011, the initial base assessment rates are 5 

to 35 basis points. An institution’s total assessment rate may 

be less than or greater than its initial base assessment rate as a 

result of additional risk adjustments.

Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to 

depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a 

percent of total assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from 

operating income have been adjusted to exclude the portion 

applicable to securities gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, 

and other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days 

or more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions 

that actually filed a financial report.

New reporters – insured institutions filing quarterly financial 

reports for the first time.

Other borrowed funds – federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the 

U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts.

Other real estate owned – primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that 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. (TFR filers began filing Call Reports effective 

with the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on a 

scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

risk and supervisory concern, they are rated either a “4” or 

“5.” The number and assets of “problem” institutions are 

based on FDIC composite ratings. Prior to March 31, 2008, 

for institutions whose primary federal regulator was the OTS, 

the OTS composite rating was used.

Recourse – an arrangement in which a bank retains, in form or 

in substance, any credit risk directly or indirectly associated 

with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the 

bank’s claim on the asset. If a bank has no claim on an asset 

it has sold, then the retention of any credit risk is recourse.
FDIC Quarterly 25 2013, Volume 7, No. 4

Quarterly Banking Profile

Beginning in 2007, each institution is assigned a risk-based 

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment is generally 

due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are 

effective for assessment purposes as of the examination transmittal date.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special 

assessment as of June 30, 2009. The special assessment was 

levied on each insured depository institution’s assets minus 

its Tier 1 capital as reported in its report of condition as of 

June 30, 2009. The special assessment was collected 

September 30, 2009, at the same time that the risk-based 

assessment for the second quarter of 2009 was collected. 

The special assessment for any institution was capped at 

10 basis points of the institution’s assessment base for the 

second quarter of 2009 risk-based assessment.

Prepaid Deposit Insurance Assessments – In November 2009, 

the FDIC Board of Directors adopted a final rule requiring 

insured depository institutions (except those that are 

exempted) to prepay their quarterly risk-based deposit 

insurance assessments for the fourth quarter of 2009, and 

for all of 2010, 2011, and 2012, on December 30, 2009. 

For regulatory capital purposes, an institution may assign 

a zero-percent risk weight to the amount of its prepaid 

deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment 

program, this program ended with the final application of 

prepaid assessments to the quarterly deposit insurance 

assessments payable March 29, 2013. The FDIC issued 

refunds of any unused prepaid deposit insurance assessments on June 28, 2013.

Risk-weighted assets – assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 200 percent. A conversion factor is used to assign 

a balance sheet equivalent amount for selected off-balancesheet accounts.

Securities – excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated as 

“held-to-maturity,” which are reported at amortized cost 

(book value), and securities designated as “available-for-sale,” 

reported at fair (market) value.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments 

for income taxes. Thrift Financial Report (TFR) filers also 

include gains (losses) on the sales of assets held for sale. 

(TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have 

been securitized, except an interest that is a form of recourse 

or other seller-provided credit enhancement. Seller’s interests 

differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is 

generally equal to the total principal amount of the pool of 

assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the 

form of securities issued to investors.

The base assessment rates for small institutions in Risk 

Category I are based on a combination of financial ratios and 

CAMELS component ratings (the financial ratios method).

As required by Dodd-Frank, the calculation of risk-based 

assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based 

on CAMELS ratings and certain forward-looking financial 

measures combined into two scorecards—one for most large 

institutions and another for the remaining very large institutions that are structurally and operationally complex or that 

pose unique challenges and risks in case of failure (highly 

complex institutions). In general, a highly complex institution is an institution (other than a credit card bank) with 

more than $500 billion in total assets that is controlled by a 

parent or intermediate parent company with more than $500 

billion in total assets or a processing bank or trust company 

with total fiduciary assets of $500 billion or more. The FDIC 

retains its ability to take additional information into account 

to make a limited adjustment to an institution’s total score 

(the large bank adjustment), which will be used to determine 

an institution’s initial base assessment rate.

Effective April 1, 2011, the three possible adjustments to 

an institution’s initial base assessment rate are as follows: 

(1) Unsecured Debt Adjustment: An institution’s rate may 

decrease by up to 5 basis points for unsecured debt. The unsecured debt adjustment cannot exceed the lesser of 5 basis 

points or 50 percent of an institution’s initial base assessment 

rate (IBAR). Thus, for example, an institution with an IBAR 

of 5 basis points would have a maximum unsecured debt 

adjustment of 2.5 basis points and could not have a total base 

assessment rate lower than 2.5 basis points. (2) Depository 

Institution Debt Adjustment: For institutions that hold longterm unsecured debt issued by another insured depository 

institution, a 50 basis point charge is applied to the amount 

of such debt held in excess of 3 percent of an institution’s 

Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for 

small institutions that are not in Risk Category I and for large 

institutions that are not well capitalized or do not have a 

composite CAMELS rating of 1 or 2 may increase (not to 

exceed 10 basis points) if their brokered deposits exceed 10 

percent of domestic deposits. After applying all possible 

adjustments (excluding the Depository Institution Debt 

Adjustment), minimum and maximum total base assessment 

rates for each risk category are as follows:

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

Large and 

Highly 

Complex 

Institutions

Initial base 

assessment rate 5–9 14 23 35 5–35

Unsecured debt 

adjustment -4.5–0 -5–0 -5–0 -5–0 -5–0

Brokered deposit 

adjustment — 0–10 0–10 0–10 0–10

Total Base 

Assessment rate 2.5–9 9–24 18–33 30–45 2.5–45

* All amounts for all categories are in basis points annually. Total base rates that are 

not the minimum or maximum rate will vary between these rates. Total base assessment rates do not include the depository institution debt adjustment.
FDIC Quarterly 26 2013, Volume 7, No. 4

Subchapter S corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. This can have the 

effect of reducing institutions’ reported taxes and increasing 

their after-tax earnings.

Trust assets – market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

equipment, collectibles, and household goods. Such fiduciary 

assets are not included in the assets of the financial 

institution.

Unearned income & contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home 

equity lines, commitments to make loans for construction, 

loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for 

sale, which are accounted for as derivatives on the balance 

sheet.)

Yield on earning assets – total interest, dividend, and fee 

income earned on loans and investments as a percentage of 

average earning assets.

Small Business Lending Fund – The Small Business Lending 

Fund (SBLF) was enacted into law in September 2010 as part 

of the Small Business Jobs Act of 2010 to encourage lending 

to small businesses by providing capital to qualified 

community institutions with assets of less than $10 billion. 

The SBLF Program is administered by the U.S. Treasury 

Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx). 

Under the SBLF Program, the Treasury Department 

purchased noncumulative perpetual preferred stock from 

qualifying depository institutions and holding companies 

(other than Subchapter S and mutual institutions). When 

this stock has been issued by a depository institution, it is 

reported as “Perpetual preferred stock and related surplus.” 

For regulatory capital purposes, this noncumulative perpetual 

preferred stock qualifies as a component of Tier 1 capital. 

Qualifying Subchapter S corporations and mutual institutions 

issue unsecured subordinated debentures to the Treasury 

Department through the SBLF. Depository institutions that 

issued these debentures report them as “Subordinated notes 

and debentures.” For regulatory capital purposes, the 

debentures are eligible for inclusion in an institution’s Tier 2 

capital in accordance with their primary federal regulator’s 

capital standards. To participate in the SBLF Program, an 

institution with outstanding securities issued to the Treasury 

Department under the Capital Purchase Program (CPP) was 

required to refinance or repay in full the CPP securities at the 

time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP 

remain outstanding after the refinancing of the CPP stock 

through the SBLF Program unless the institution chooses to 

repurchase them.
FDIC Quarterly 27 2013, Volume 7, No. 4

U.S. counties—almost 20 percent of the total—in 2011 

where the only FDIC-insured banking facilities in operation were those run by community banks.

The analysis of comparative financial performance in 

the Study also highlighted a combination of challenges 

and success stories for community banks. As measured 

by pretax return on assets (ROA), noncommunity 

banks outperformed community banks by an average of 

38 basis points per year in the 15 years leading up to the 

financial crisis that began in 2007. While community 

banks generally held the advantage in terms of provisions for loan losses, overhead expenses, and net interest income, noncommunity banks were much more 

successful at deriving noninterest income from offbalance-sheet activities. Moreover, the advantage that 

community banks have traditionally enjoyed in generating net interest income, which accounted for 81 

percent of their total revenue stream in 2005, has 

waned over time. The Study showed that more than 70 

percent of the deterioration in the community bank 

efficiency ratio between 1998 and 2011 could be attributed to a squeeze on net interest income, which has 

intensified during the zero-interest-rate period that 

began in 2008.3

The Study failed to find systematic evidence that 

community banks are predisposed to be less profitable than larger, noncommunity institutions. Among 

charters that operated continuously between 1984 

and 2011, community banks were actually a bit more 

profitable on average than were noncommunity banks. 

Analysis of average costs showed that economies of 

scale among community banks—where they existed at 

all—were mostly realized at a relatively modest asset 

size of $100 million to $300 million.4 More than 60 

percent of community banks in 2011 operated in one 

of three lending specialty groups—agricultural lending, 

mortgage lending, or diversified nonspecialty lending—

3

 The efficiency ratio compares the level of overhead costs (total 

noninterest expense) to net operating revenues (the sum of net interest income and total noninterest income). A higher efficiency ratio 

actually suggests inefficiency, because it indicates that the bank is less 

productive in converting expenditures into revenue.

4

 Stefan Jacewitz and Paul Kupiec, “Community Bank Efficiency 

and Economies of Scale” (Federal Deposit Insurance Corporation, 

December 2012), http://www.fdic.gov/regulations/resources/cbi/report/

cbi-eff.pdf.

Introduction

In December 2012, the FDIC published the FDIC 

Community Banking Study, a comprehensive report on 

trends in U.S. community banking over the 27-year 

period from year-end 1984 through 2011.1 Developing a 

new research definition of community banks, and 

addressing topics such as structural change, geography, 

financial performance, lending specialties, and capital 

formation, the Study showed that community banks 

continue to play a central role in the U.S. economy and 

in local communities across the country. At the same 

time, the Study highlighted a number of important 

long-term trends that have dramatically reshaped the 

community banking sector over time.

One such trend is consolidation: The total number of 

federally insured bank and thrift charters declined by 59 

percent between 1984 and 2011 to 7,357. This decline 

was driven not only by the failures that occurred in two 

major banking crises, but also by the voluntary mergers 

and intra-company consolidations that followed the 

dismantling of geographic restrictions in banking some 

two decades ago. All of the net consolidation that took 

place during this period was accounted for by the disappearance of the smallest banks—those with assets less 

than $100 million. The number of FDIC-insured institutions with assets between $100 million and $1 

billion—almost all of which met the FDIC’s research 

definition of a community bank—actually increased 

over this period.

This consolidation had little net effect on the relative 

number of community bank organizations and charters, 

both of which continued to exceed 90 percent of the 

total in 2011. Nevertheless, it led to a two-thirds 

decline in the share of industry assets held by community banks, which was just 14 percent by year-end 2011. 

Even so, at the end of the period, community banks 

continued to hold 46 percent of the industry’s small 

loans to U.S. farms and businesses as well as the majority of banking deposits at bank branches located in rural 

and micropolitan counties.2 The Study identified 627 

1 FDIC Community Banking Study, 2012, http://www.fdic.gov/

regulations/resources/cbi/study.html.

2

 Micropolitan counties are those centered on an urban core with a 

population between 10,000 and 50,000 people. There were 694 micropolitan counties in the United States in 2010, out of a total of 3,238.

Feature Article:

Community Bank Developments in 2012
FDIC Quarterly 28 2013, Volume 7, No. 4

updated for this report using year-end 2012 data. Designating at the level of the bank holding company, the 

definition is applied in two steps: (1) excluding banks 

that do not engage in certain basic banking activities, 

and (2) including banks that meet minimum requirements for lending and core deposit funding and that 

conform to limits on the number and size of their banking offices and the number of states and large metropolitan areas in which they operate.6

 The requirements 

and limits of item (2) are waived for those institutions 

with assets below a certain time-indexed size threshold 

($1.12 billion in 2012), which are automatically considered to be community banks.7

Although size remains one factor in our definition of a 

community bank, it is not the only factor, as has been 

the case in much of the previous research on this topic. 

Moreover, where size-based metrics are employed in the 

FDIC definition, they have been indexed over time to 

adjust for increases in banking industry assets as well as 

increases in the nominal level of economic activity.8

Establishing the definition in this way allows for meaningful distinctions between community and noncommunity banks across a 28-year period. It is also worth 

noting that the FDIC’s community bank designations 

for previous years have been updated to reflect annual 

revisions to historical data; however, the changes to 

historical designations as a result of data revisions were 

relatively inconsequential. For example, of the 6,721 

banking organizations reporting at year-end 2011, only 

one had its community bank designation changed as a 

result of revisions to historical data during 2012.

Table 1 depicts changes in the designations of community and noncommunity institutions between 2011 and 

2012. The number of community bank charters fell by 

255 (3.8 percent) during the year, while the number of 

noncommunity bank charters fell by 19 (3.4 percent). 

The following section explores structural change during 

2012 in more detail.

6

 For a complete description of the community bank definition 

developed for the FDIC Community Banking Study, see Appendix A of 

the Study: http://www.fdic.gov/regulations/resources/cbi/report/

CBSI-A.pdf.

7

 Analysis of these institutions shows that 92 percent of them would 

have conformed to all of the requirements for inclusion as a community bank at year-end 2012 even if they had not been automatically 

designated as community banks because of their size.

8

 Between 1984 and 2012, both total assets of FDIC-insured institutions and nominal U.S. GDP rose by an approximate factor of four. 

that generally enjoyed high and stable earnings and low 

rates of failure during the study period. It was this type 

of steady earnings performance that enabled community banks to generate almost half of all the new equity 

capital they added during the study period through 

retained earnings.

As instructive as these long-term results are, they 

merely set the stage for a more pressing question: How 

will community banks fare in the post-crisis 

environment?

This paper seeks to answer this question by extending 

the results of the Study. It applies the community bank 

definition from the Study to year-end 2012 data, and 

recapitulates key elements of the analysis for 2012. 

Consistent with the previous Study, it focuses on recent 

trends in industry structure, balance sheet composition, 

geography, earnings, and capital formation.

Trends observed in 2012 suggest a positive outlook for 

the community banking sector. Overall, FDIC-insured 

institutions have seen problem loans decline from the 

peak levels of 2009. Net income has recently exceeded 

pre-crisis levels even if profitability—as measured by 

ROA—has not.5 The Study and other FDIC analyses 

show that smaller institutions have tended to lag larger 

ones in this respect, owing in part to their greater 

dependence on loans secured by real estate. Community 

banks continue to hold a majority of deposits in rural 

and micropolitan areas, and remain an important source 

of credit in many sectors. Community bank earnings 

improved substantially in 2012 primarily because of 

lower loss provisions and higher noninterest income. 

Higher earnings, in turn, led to greater capital formation through retained earnings, which has traditionally 

been the most consistent source of new capital for 

community banks. While the recovery of the community banking sector remains incomplete, and in some 

respects continues to lag that of noncommunity banks, 

2012 represented the best year for community banks 

since the onset of the financial crisis in 2007.

Defining the Community Bank

The FDIC Community Banking Study was conducted 

using a definition of a community bank that emphasized both traditional banking activities and a limited 

geographic scope of operations. This definition has been 

5

 Industry net income peaked at $215 billion in 2006. Industry net 

income was $201 billion in 2012, the second-highest level on record. 
FDIC Quarterly 29 2013, Volume 7, No. 4

Community Bank Developments in 2012

failures, intercompany mergers, intracompany consolidations, voluntary liquidations, and new charters.

The number of bank failures continued to fall in 2012, 

but was still elevated compared with pre-crisis levels (see 

Chart 2). A total of 51 institutions, all of which were 

community banks, failed in 2012. This is down from 88 

community bank failures in 2011, and down from a 

cyclical peak of 144 failures in 2010. The community 

bank failure rate, defined as the number of community 

Structural Change

The banking industry continued to experience a net 

consolidation of charters during 2012, but at a slower 

pace than that experienced in 2010 or 2011. The total 

number of federally insured banks and thrifts fell by 274 

(3.7 percent) during the year (see Chart 1), compared 

with a 4.4 percent decline in 2010 and a 3.9 percent 

decline in 2011. Meanwhile, the number of community 

bank charters fell by 255 (3.8 percent) in 2012, 

compared with 3.2 percent in 2010 and 3.1 percent 

in 2011.

Although the pace of industry consolidation has slowed 

for two consecutive years, it continues at a rate that is 

slightly higher than the historical average. Between 

1984 and 2012, the number of insured institutions fell 

at an average annual rate of 3.3 percent (Chart 1), 

while the number of community bank charters fell at an 

average rate of 3.1 percent. Net consolidation of banking charters has taken place in every year since 1985, 

but slowed somewhat around 2000 before increasing 

again during the recent financial crisis. As the effects of 

the crisis recede, it remains to be seen whether charter 

consolidation will continue at an above-average pace or 

slow to the historically low rates experienced in the precrisis years. The answer depends on future trends in the 

various components of charter consolidation, namely 

Table 1

Designation of Community Banking Organizations Using FDIC Research Criteria

6,141

organizations designated as

“community institutions” out of

6,501 banking organizations

6,544 community bank charters

out of 7,083 total FDIC-insured

banking charters

83

small

organizations

excluded

$20.1 billion

in assets

27

large

organizations

excluded

$4.3 trillion

in assets

250 organizations

$8.1 trillion in assets

297 organizations

$655 billion in assets

5,844

organizations

$1.4 trillion

in assets

83

small

organizations

excluded

$18.9 billion

in assets

32

large

organizations

excluded

$4.2 trillion

in assets

249 organizations

$7.7 trillion in assets

314 organizations

$630 billion in assets

6,043

organizations

$1.3 trillion

 in assets

2011 2012

2011

Asset Size

Threshold:

$1.06 billion

2012

Asset Size

Threshold:

$1.12 billion

6,357

organizations designated as

“community institutions”out of

6,721 banking organizations

6,799 community bank charters

out of 7,357 total FDIC-insured

banking charters

Size

Source: FDIC.

Chart 1

The Banking Industry Experienced Net Consolidation

in Every Year Since 1985

-3.7%

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

1985–2012 Average:

-3.3%

Source: FDIC.

Year-Over-Year Percent Change in the Number of Bank and Thrift Charters
FDIC Quarterly 30 2013, Volume 7, No. 4

After slowing in the post-crisis years, voluntary closings 

picked up again in 2011 and 2012.10 Chart 5 and 

Chart 6 show that the number of voluntary charter 

closings among community banks, which averaged 243 

per year between 2003 and 2008, reached a low of 102 

in 2010. A total of 188 community bank charters closed 

through voluntary deals in 2012, up from 148 in 2011. 

Of these 188 closings, 142 were intercompany mergers, 

35 were intracompany consolidations, and 11 were 

voluntary liquidations.

10 Transactions in which a charter exits the industry without failing are 

referred to as voluntary charter consolidations. Voluntary charter 

consolidations comprise intercompany mergers, intracompany charter 

consolidations, and voluntary liquidations. The number of voluntary 

liquidations is typically small, averaging seven per year since 1985.

bank failures as a percent of all community banks at the 

end of the previous year, fell to 0.75 percent in 2012 

from 1.25 percent in 2011 (see Chart 3).

As has been the case throughout much of the post-crisis 

period, most of the community banks that failed in 

2012 were commercial real estate (CRE) lending 

specialists.9 A total of 33 CRE specialist community 

banks failed during the year, representing 64 percent of 

all community bank failures (see Chart 4). This is down 

from 79 CRE specialist community bank failures, 90 

percent of total community bank failures, in 2011. The 

high rate of failure among community bank CRE 

specialists since 2008 illustrates both the shift of 

community banks toward CRE lending after 2000 and 

the vulnerability of this line of business to the downturn in U.S. real estate prices associated with the crisis. 

CRE prices as measured by the Moody’s/Real Capital 

Analytics Commercial Property Price Index bottomed 

out in 2009, while residential home prices, as measured 

by the Standard and Poor’s/Case-Shiller U.S. National 

Home Price Index, hit a cyclical low in 2012. Through 

the end of 2012, FDIC-insured institutions had charged 

off $33 billion in CRE loans, and failures had begun to 

moderate. These trends suggest that bank failures will 

contribute less to the pace of industry consolidation in 

the near future.

9

 CRE loans are composed of loans secured by multifamily residential 

properties, construction and development loans, and loans secured by 

nonfarm nonresidential properties. CRE lending specialists are institutions that either hold construction and development loans greater than 

10 percent of assets or hold total CRE loans greater than 30 percent of 

assets, and that do not meet any of the other single-specialty lender 

criteria. Detailed community bank lending specialty group definitions 

are available on page 5-3 of the FDIC Community Banking Study.

Chart 2

The Number of Bank Failures Continues to Decline

0

20

40

60

80

100

120

140

160

180

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Community Banks

Noncommunity Banks

Annual Number of Bank Failures

Source: FDIC.

Chart 3

Failure Rates Have Moderated 

Failed Institutions as a Percent of All Institutions Reporting at the Prior Year-End

0%

1%

2%

3%

4%

5%

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Community Banks

Noncommunity Banks

Source: FDIC.

0.75%

0.00%

Chart 4

CRE Specialists Accounted for the Majority of

Community Bank Failures in Recent Years

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011 2012

No 

Specialty

Agricultural 

Specialists

C&I 

Specialists

CRE 

Specialists

MultiSpecialists

Mortgage

Specialists

Source: FDIC. Lending specialty groups are defined on page 5-3 of the FDIC Community 

Banking Study.

Note: No community bank consumer lending specialists have failed since 2008.

Percent of Community Bank Failures
FDIC Quarterly 31 2013, Volume 7, No. 4

Community Bank Developments in 2012

absence of any new banking charters. Chart 7 shows 

how chartering activity—always cyclical in nature—

declined markedly after the onset of the crisis, and 

ceased altogether in 2012.11 A number of factors may 

have contributed to the steep drop-off in new charters 

in this cycle, including the availability to investors of 

hundreds of failed bank charters and the ongoing low 

interest rate environment that has squeezed net interest 

margins and profitability at many community banks 

(see Comparative Financial Performance: Community 

Versus Noncommunity Banks below).

To the extent that temporary factors have been important in the cyclical decline in new chartering, it seems 

likely that chartering activity will pick back up once 

these factors begin to abate. As of November 2013, 

there were two pending applications for deposit insurance by new community banks. In addition, the credit 

quality of bank balance sheets continued to improve, as 

evidenced by the decline in noncurrent loan rates for 

virtually every loan type in 2012. As the number of 

community bank failures has fallen by 65 percent from 

its peak in 2010, the availability of charters through 

failed bank acquisitions has been reduced.

For now, signs point to slowing in the pace of consolidation among community banks and the banking industry 

as a whole. Table 2 provides a summary of the factors 

contributing to net consolidation during 2012. As 

described above, failures are on the way down, voluntary 

deals are on the way up, and there appears to be greater 

interest in new banking charters. While gradual charter 

11 Two of the new charters issued in 2011 were “shelf charters,” used 

at their inception to acquire failed banks. 

Chart 5 shows that the number of voluntary deals 

among community banks in 2012 was lower than in any 

of the pre-crisis years between 2003 and 2008. During 

those years, a vibrant market for voluntary mergers—

many transacted at a premium to book value—was 

viewed by many as a sign of the high value of the 

community bank franchise. Chart 6 shows that the rate 

of voluntary closure among community banks has 

always been lower than that among noncommunity 

banks, and this trend continued in 2012. Community 

banks exited through this route at less than half the rate 

of noncommunity banks in 2012. Chart 6 also shows 

that the share of community banks exiting through 

voluntary closure recovered in 2010 and 2011 to a level 

more consistent with pre-crisis norms.

Perhaps the most important factor contributing to the 

net consolidation of the industry in 2012 was the 

Chart 5

The Number of Voluntary Community Bank Closings

Increased in 2012

0

50

100

150

200

250

300

350

400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Community Banks

Noncommunity Banks

Annual Number of Voluntary Closings

Source: FDIC. Voluntary closings include intracompany consolidations, intercompany 

mergers, and voluntary liquidations.

Chart 6

The Voluntary Closure Rate Among Community Banks

Rose in 2012

0%

5%

10%

15%

20%

25%

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Community Banks

Noncommunity Banks

Source: FDIC. Voluntary closings include intracompany consolidations, intercompany 

mergers, and voluntary liquidations.

Voluntarily Closed Institutions as a Percent of All Institutions Reporting at the Prior Year-End

2.8%

6.3%

Chart 7

No New Institutions Were Chartered in 2012

0

50

100

150

200

250

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: FDIC.

Annual Number of New Charters

Community Banks

Noncommunity Banks
FDIC Quarterly 32 2013, Volume 7, No. 4

offs tend to reduce outstanding loan balances, but high 

volumes of noncurrent loans tend to discourage banks 

from extending new credit while they are busy remediating problem loans.

The magnitude of the boom and subsequent bust in 

community bank CRE balances can be seen by comparing their total CRE loan growth between 2002 and 

2008 (+72 percent) and the rate of growth between 

2008 and 2012 (–14 percent). The relationship between 

high levels of problem loans and slow or negative 

growth in community bank loan balances is best illustrated by C&D loans. As has been the case in recent 

years, C&D loan balances showed the highest percentage decline of any community bank loan category in 

2012 (–9.5 percent, see Table 3), while they continued 

to show the highest rate of remaining noncurrent loans 

at year-end 2012 (7.8 percent, see Table 4). The 

progress that has been made to date in addressing these 

credit problems can be seen in the volume of total 

consolidation has been prevalent among community 

banks since the mid-1980s, the direction and pace of 

future industry consolidation are far from clear.

Community Bank Balance Sheet

Even as the number of FDIC-insured institutions 

declined in 2012, the total assets of both community 

and noncommunity banks increased during the year. 

Community bank assets grew by $47 billion (2.4 

percent) to $2 trillion in 2012 (see Chart 8), while 

noncommunity bank assets grew by $512 billion (4.3 

percent) to $12.4 trillion.

Net loans and leases held by community banks grew by 

1.6 percent in 2012. While this reversed the net decline 

in community bank lending observed in 2011, it 

remained below the 3.8 percent loan growth seen at 

noncommunity banks in 2012. Community banks saw 

expansion in agricultural, commercial and industrial 

(C&I), and consumer lending in 2012, and they 

continued to play a disproportionate role in providing 

credit to local farms and businesses. Community banks 

held 14 percent of industry assets at year-end 2012, but 

held 46 percent of small loans to businesses, shares that 

are unchanged from 2011.12

Meanwhile, community banks saw another substantial 

decline in their holdings of commercial real estate 

loans, especially construction and development (C&D) 

loans. It is in these portfolios that community banks 

have experienced the highest levels of noncurrent loans 

and the highest volumes of net loan charge-offs in the 

years following the financial crisis. Not only do charge12 Small loans to businesses include loans secured by nonfarm 

nonresidential properties and C&I loans in amounts under $1 million, 

and farmland and agricultural production loans in amounts under 

$500,000. 

Table 2

Change in the Number of Community and Noncommunity Banks Charters in 2012

Number of Institutions at Year-End 2011

Community 

Banks

Noncommunity 

Banks All Institutions

 6,799 558 7,357

Failures -51 0 -51

Intercompany Mergers -142 -10 -152

Intracompany Consolidations -35 -21 -56

Other Closings -11 -4 -15

All Closings -239 -35 -274

New Charters 0 0 0

Net Reclassifications to/from Community Bank Status -16 16 0

Number of Institutions at Year-End 2012 6,544 539 7,083

Source: FDIC.

Chart 8

Community Bank Assets Grew by 2.4 Percent in 2012

Billions of Dollars

$1,224 $1,243

$450 $464

$299 $313

$0

$500

$1,000

$1,500

$2,000

$2,500

2011 2012

Source: FDIC.

+1.6%

Net Loans and Leases

+3.0%

Securities

+4.7%

Other Assets

2012 Community Bank Asset Growth:

+2.4%
FDIC Quarterly 33 2013, Volume 7, No. 4

Community Bank Developments in 2012

historical levels, 1-to-4 family residential loan performance at community banks was better than that at 

noncommunity banks. The 1-to-4 family noncurrent 

rate at noncommunity banks actually rose to 8.9 

percent in 2012 from 8.7 percent in 2011.

The condition of balance sheets is not the only factor 

that influences loan volumes at community banks. 

Loan demand also declined sharply during and after 

the recession of 2007–2009, and has been slow to 

recover since the recession ended. The Federal Reserve 

Senior Loan Officer Opinion Survey showed that the 

net percent of banks reporting stronger demand for 

commercial loans on the part of small firms was consistently negative during a 13-quarter period that 

extended from the end of 2006 through the end of 

C&D loan charge-offs that community banks have 

made since 2007 ($21 billion) and the fact that their 

noncurrent loan rate for C&D loans has declined by 

more than 40 percent from its peak in the first quarter 

of 2010.

Other community bank loan categories also continue 

to display elevated levels of problem loans, even as 

noncurrent rates continue to recede. Some 2.3 percent 

of 1-to-4 family residential mortgage loans held by 

community banks were noncurrent at year-end 2012. 

Although this represents a decline from 2.5 percent in 

2011, the noncurrent rate for community bank 1-to-4 

family residential mortgage loans never exceeded 1.6 

percent between 1990 and 2008. While noncurrent 

rates for many loan categories are high relative to 

Table 3

Changes in the Community Bank Balance Sheet, 2011–2012

Loan or Asset Category

Year-End 2011 Year-End 2012 Change 2011–2012

Dollars in 

Billions

Percent of 

Total Assets

Dollars in 

Billions

Percent of 

Total Assets

Dollars in 

Billions

Percent 

Change

Mortgage Loans* $400.3 20.3% $404.6 20.0% $4.4 1.1%

Consumer Loans $53.0 2.7% $54.4 2.7% $1.3 2.5%

Commercial Real Estate (CRE) Loans** $523.8 26.6% $517.2 25.6% -$6.5 -1.2%

Construction and Development (C&D) 

Loans $83.8 4.2% $75.9 3.8% -$8.0 -9.5%

Commercial and Industrial (C&I) Loans $163.5 8.3% $171.0 8.5% $7.5 4.6%

Agricultural Loans*** $85.5 4.3% $92.5 4.6% $7.0 8.2%

Other Loans and Leases $21.4 1.1% $25.7 1.3% $4.3 19.9%

Less: Loan Loss Provisions and 

Unearned Income $23.5 1.2% $22.3 1.1% -$1.2 -5.2%

Net Loans and Leases $1,223.9 62.0% $1,243.1 61.6% $19.2 1.6%

Securities $450.2 22.8% $463.5 23.0% $13.4 3.0%

Other Assets $298.5 15.1% $312.5 15.5% $14.0 4.7%

Total Assets $1,972.6 100.0% $2,019.1 100.0% $46.5 2.4%

Source: FDIC.

* Mortgage loans include home equity lines of credit, junior liens, and other loans secured by residential real estate.

** CRE loans include construction and development loans, loans secured by multifamily properties, and loans secured by nonfarm, nonresidential real estate.

*** Agricultural loans include production loans and loans secured by farm real estate. 

Table 4

Community Bank Noncurrent Rates, 2011–2012

Loan Category

2011 Noncurrent 

Rate

2012 Noncurrent 

Rate

Change in 

Noncurrent Rate 

2011–2012

Mortgage Loans* 2.5% 2.3% -0.2%

Consumer Loans 0.9% 0.9% 0.0%

Commercial Real Estate (CRE) Loans** 4.4% 3.3% -1.1%

Construction and Development (C&D) Loans 11.2% 7.8% -3.4%

Commercial and Industrial (C&I) Loans 2.1% 1.7% -0.4%

Agricultural Loans*** 1.0% 0.8% -0.2%

All Loans and Leases 3.0% 2.4% -0.6%

Source: FDIC.

* Mortgage loans include home equity lines of credit, junior liens, and other loans secured by residential real estate.

** CRE loans include construction and development loans, loans secured by multifamily properties, and loans secured by nonfarm, nonresidential real estate.

*** Agricultural loans include production loans and loans secured by farm real estate.
FDIC Quarterly 34 2013, Volume 7, No. 4

counties by both measures since 1984. The relative 

concentration of noncommunity banks in metropolitan 

statistical areas (MSAs) is one of the factors that have 

allowed these institutions to grow their assets ten times 

faster than community banks since 1984.

Comparative Financial Performance: 

Community Versus Noncommunity Banks

Community banks continued to improve their earnings 

in 2012 following the severe downturn in profitability 

and earnings that they experienced during and after 

the financial crisis. Their aggregate pretax ROA rose 

to 1.06 percent in 2012 from 0.74 percent in 2011 

(see Chart 9). Moreover, the gap between community 

and noncommunity bank profitability narrowed to 

0.42 percent from 0.59 percent. Although the pretax 

ROA of community banks has increased in each of 

the past three years from a low of –0.13 percent in 

2009, it remains well below the average of 1.5 percent 

observed in the period 1992 through 2006. Likewise, although the disparity between community and 

noncommunity bank earnings has narrowed, it is still 

comparable to the gap that existed in 2005. It remains 

to be seen whether this disparity is a persistent trend 

or simply the result of a slower recovery on the part of 

community banks.

Low interest rates continued to squeeze net interest 

income in 2012 (see Chart 10). Community bank net 

interest income fell to 3.37 percent of average assets in 

2012 from 3.43 percent in 2011. Community banks still 

generated higher net interest income than did noncommunity banks, which saw their net interest income fall 

to 2.94 percent of average assets in 2012. As long as 

short-term interest rates remain at zero, net interest 

margins are likely to remain under pressure as higheryielding loans and securities come to maturity. Because 

community banks earned 78 percent of their net operating revenue from net interest income in 2012, versus 61 

percent for noncommunity banks, the squeeze on net 

2010. Since then, however, the net percent reporting 

stronger demand has been positive in all but one quarter. These trends point to a gradual improvement in 

loan demand, which should contribute to loan growth 

at community banks beyond 2012.

The Geography of Community Banks

As expected, the geographic characteristics of community banking changed little during 2012. While 

community banks held just 14 percent of industry 

assets at year-end, they continued to hold the majority of bank deposits in rural and micropolitan counties 

(see Table 5). Community banks were three times 

more likely than noncommunity banks to locate offices 

in a nonmetro area in 2012, and were four times more 

likely to operate offices in rural counties, as was the 

case in 2011.

In 2012, 615 U.S. counties (627 in 2011) would not 

have had any physical banking offices operated by 

FDIC-insured institutions if not for those operated by 

community banks. Another 642 counties where community banks operated had fewer than three noncommunity banking offices present. This means that more than 

1,200 U.S. counties (of 3,238 total), encompassing more 

than 16 million in population, would have very limited 

physical access to mainstream banking services without 

the presence of community banks. Although the office 

and deposit shares of community banks continue to 

decline, they still play a leading role in providing financial services in many parts of the country.

Noncommunity banks continued to hold a dominant 

market share in the nation’s 1,169 metropolitan counties in 2012. Noncommunity banks operated 71 percent 

of all banking offices and held 86 percent of total 

deposits in metropolitan counties at year-end, with both 

figures up slightly from 2011. As described in the Study, 

these counties not only account for the vast majority of 

U.S. population and gross domestic product (GDP), but 

also have grown faster than rural and micropolitan 

Table 5

Community Bank Share of Banking Offices and Total Deposits Located in Metro, Micro, and Rural Counties

Year

Community Bank Share of Banking Offices, 

by County Type (Percent)

Community Bank Share of Total Deposits, 

by County Type (Percent)

Metro Micro Rural Total Share Metro Micro Rural Total Share

1992 39% 65% 78% 46% 31% 62% 75% 36%

2002 33% 59% 72% 40% 21% 53% 71% 26%

2012 29% 57% 71% 36% 14% 56% 71% 18%

Source: FDIC.

Note: Based on 2010 county designations made by the U.S. Office of Management and Budget. Deposit and office data are merger-adjusted to year-end.
FDIC Quarterly 35 2013, Volume 7, No. 4

Community Bank Developments in 2012

percent in the first nine months of 2013.13 The higher 

long-term interest rates observed through September 

2013 will make it difficult for banks to replicate their 

2012 gains in noninterest income.

Community and noncommunity banks maintained 

similar levels of noninterest expenses in 2012. Community banks reported noninterest expenses equal to 3.01 

percent of average assets in 2012, versus 3 percent in 

2011 (see Chart 13). Noncommunity banks reported 

noninterest expenses of 2.99 percent of average assets in 

2012, down from 3.05 percent in 2011. As described in 

the Study, bank Call Report data do not facilitate the 

breakdown of noninterest expenses into regulatory and 

13 Source: Federal Reserve Board (Haver Analytics).

interest income has had a disproportionate impact on 

overall community bank earnings.

Both community and noncommunity banks earned 

higher levels of noninterest income in 2012. Community banks saw their ratio of noninterest income to 

average assets rise from 0.82 percent in 2011 to 0.96 

percent in 2012, while noncommunity banks saw 

their ratio rise from 1.85 percent to 1.9 percent (see 

Chart 11). Also, as depicted in Chart 12, virtually all of 

the increase in community bank noninterest income 

can be attributed to gains on asset sales, which were to 

some extent facilitated by the decline in long-term 

interest rates that occurred during the year. The tenyear Treasury yield fell from 2.8 percent in 2011 to 1.8 

percent in 2012, before rising again to an average of 2.2 

Chart 9

Pretax Return on Assets, 1985–2012

Percent

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Community Banks

Noncommunity Banks

1.06%

Source: FDIC.

1.48%

Chart 11

Noninterest Income to Average Assets, 1985–2012

Percent

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Community Banks

Noncommunity Banks

Source: FDIC.

0.96%

1.90%

Chart 12

Gains on Asset Sales Drove an Increase in

Community Bank Noninterest Income in 2012

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

2011 2012

Gains on Asset Sales

Fiduciary Income

Service Charges on

Deposit Accounts

Other

Source: FDIC.

Community Bank Noninterest Income as a Percent of Average Assets

0.82%

0.96%

Chart 10

Net Interest Income to Average Assets, 1985–2012

Percent

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Community Banks

Noncommunity Banks

Source: FDIC.

3.37%

2.94%
FDIC Quarterly 36 2013, Volume 7, No. 4

revenue—as has been the case in every year since 

2010—the post-crisis trend continues to be a narrowing 

of this efficiency gap. Despite this narrowing, declining 

net interest income continued to put upward pressure 

on the community bank efficiency ratio in 2012 (see 

Table 6). It may prove difficult for community banks to 

generate further improvements in this ratio until interest rates rise to levels more in line with historical norms.

For both community and noncommunity banks, a key 

element of improved profitability in 2012 was the 

continued rapid decline in loan-loss provisions. 

Community bank loss provisions fell to $6.5 billion 

(0.33 percent of average assets) in 2012 from $10.9 

billion (0.56 percent) in 2011 and a peak of $22.5 

billion (1.16 percent) in 2009 (see Chart 15). Noncommunity banks recorded loss provisions of $51.7 billion 

nonregulatory expenses. Appendix B of the Study 

discusses the results of interviews with bankers related 

to regulatory costs and overhead expenses.14 Although 

the stability of overhead expenses is a positive trend for 

the community banking sector, it does not preclude the 

possibility that the regulatory component of these costs 

could be rising.

A useful metric that relates the various elements of 

income and expense is the efficiency ratio, or the ratio of 

overhead expenses to net operating revenue.15 As 

described in the Study, a sizable gap has emerged since 

the late 1990s between the efficiency ratios of community and noncommunity banks. During that period, 

community banks experienced a marked increase (deterioration) in their efficiency ratio, most of which was 

attributable to the gradual decline of their net interest 

income.

The efficiency ratio of community banks improved in 

2012, declining to 69.8 percent from 70.6 percent in 

2011, while the efficiency ratio for noncommunity 

banks improved to a smaller extent, declining to 61.9 

percent from 62 percent (see Chart 14). These changes 

reduced the efficiency gap between community and 

noncommunity banks to 7.8 percentage points, or less 

than one-half the size of this gap as recently as 2010. 

While community banks on average remained less 

efficient than noncommunity banks in generating 

14 For a discussion of regulatory costs at community banks, see: 

http://www.fdic.gov/regulations/resources/cbi/report/CBSI-B.pdf.

15 Formally, the efficiency ratio is expressed as: 

Efficiency Ratio = 

 Noninterest Expense

Net Interest Income + Noninterest Income 

.

Chart 13

Noninterest Expense to Average Assets, 1985–2012

Percent

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Community Banks

Noncommunity Banks

Source: FDIC.

3.01%

2.99%

Chart 14

Efciency Ratio, 1985–2012

Percent

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Community Banks

Noncommunity Banks

Source: FDIC.

69.6%

61.9%

Chart 15

Loan-Loss Provisions to Average Assets, 1985–2012

Percent

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Community Banks

Noncommunity Banks

Source: FDIC.

0.33%

0.43%
FDIC Quarterly 37 2013, Volume 7, No. 4

Community Bank Developments in 2012

underperformed other community bank lending 

specialty groups, reflecting the ongoing effects of the 

real estate downturn. These two specialty groups did 

show a marked improvement in their profitability in 

2012, mostly due to lower loan-loss provisions (see 

Table 7). Nonetheless, consumer and agricultural 

specialists continued to outperform other types of 

community banks in 2012.

Capital Formation at Community Banks16

Improved profitability at community banks in 2012 was 

driven by higher levels of net income. Community 

banks as a group generated $16.4 billion in net income 

in 2012, up from $10.6 billion in 2011 and a crisis low 

of –$2.8 billion in 2009. The sustained improvement in 

community bank earnings since 2009 has once again 

afforded these institutions the opportunity to generate 

new capital through retained earnings. Community 

16 Although the term “capital formation” is frequently used in national 

income accounting to describe increases in the stock of physical 

capital, it is used here to represent additions to equity capital by 

individual financial institutions.

(0.43 percent of average assets) in 2012, down from 

$66.6 billion (0.57 percent) in 2011 and a peak of 

$141.4 billion (1.25 percent) in 2009.

Chart 15 shows that provision expenses of noncommunity banks far exceeded those of community banks at 

their 2009 peak, and have declined faster since then. 

As year-over-year reductions in provision expenses at 

FDIC-insured institutions become progressively smaller 

over time, growth in community bank earnings will 

increasingly depend on their ability to increase 

revenues.

Community banks are not a uniform group of institutions, and there has always been significant variation 

in performance among community bank lending 

specialty groups. The Study identified three lending 

specialty groups (agricultural specialists, diversified 

nonspecialty lenders, and consumer specialists) as 

consistently outperforming other groups in terms of 

pretax ROA during the 1984–2011 study period, while 

CRE specialists underperformed for the study period as 

a whole. During 2011, CRE and mortgage specialists 

Table 6

Sources of Change in the Community Bank Efficiency Ratio, 2011–2012

Ratio 2011 2012

Change in Income or 

Expense Ratio, 

Percentage Points 

2011–2012

Contribution to Change 

in Efficiency Ratio, 

Percentage Points 

2011–2012

Net Interest Income

Assets 3.43% 3.37% -0.06 0.97

Noninterest Income

Assets 0.82% 0.96% 0.14 -2.30

Noninterest Expense

Assets 3.00% 3.01% 0.02 0.40

Efficiency Ratio 70.6% 69.6% -0.93

Source: FDIC.

Table 7

Community Bank Pretax Return on Assets (ROA) by Lending Specialty Group

Lending Specialty Group

Year All Years: 

2006–2010 2011 2012 1985–2012

Agricultural Specialists 1.25% 1.38% 1.51% 1.41%

Consumer Specialists 0.89% 2.22% 1.53% 1.27%

C&I Specialists 1.04% 0.89% 1.30% 1.04%

Mortgage Specialists 0.64% 0.69% 0.93% 1.00%

CRE Specialists 0.26% 0.36% 0.82% 0.66%

No Specialty 1.05% 1.08% 1.18% 1.27%

Multi-Specialists 0.69% 0.72% 1.17% 0.99%

Total 0.61% 0.74% 1.06% 1.03%

Source: FDIC. Lending specialty groups are defined on page 5-3 of the FDIC Community Banking Study.

Note: Figures represent weighted average pretax return on assets for federally insured community banks reporting in each group during the period.
FDIC Quarterly 38 2013, Volume 7, No. 4

Reserve’s Comprehensive Capital Analysis and Review 

(CCAR) process or have moved cautiously in restoring 

their dividends in the wake of the crisis.18

Despite the importance of retained earnings to capital formation at both community and noncommunity 

banks, capital raising from external sources continues 

to be important to both groups. During 2012, 549 

community banks raised $3.4 billion in new capital 

from external sources. This capped a five-year period 

in which community banks as a group raised a total of 

nearly $40 billion from the capital markets, and reflects 

continued investor confidence in the community banking model. Altogether, this new capital represented 18 

percent of the total equity capital held by community 

banks at the end of 2012. In addition, none of the 

$3.4 billion in external capital raised by community 

banks during 2012 was obtained through participation 

in either the government-sponsored Capital Purchase 

Program, which stopped disbursing in 2009, or the 

Small Business Lending Fund, which stopped disbursing 

in 2011.

With the capital obtained during 2012 through retained 

earnings and from external sources, community banks 

were able to increase their capitalization levels as 

measured by both the leverage and total risk-based 

capital ratios (see Table 9).19 Community banks have 

historically held higher levels of capital than have 

noncommunity banks, and this pattern continued in 

2012. At the end of the year, community banks held 

equity capital equal to 10.20 percent of total assets, 

compared with 8.97 percent for noncommunity banks. 

18 For details on the CCAR process and the Federal Reserve’s dividend 

guidance to participating large banking organizations, see: http://

www.federalreserve.gov/newsevents/press/bcreg/20130314a.htm.

19 It should be noted that banks report other changes to equity capital, 

some of which are relatively large, but these changes do not represent 

net capital formation and are not part of the analysis in this chapter.

banks generated $7.5 billion in capital through retained 

earnings in 2012 (see Table 8), up from $4.2 billion in 

2011. Some 69 percent of the total increase in community bank capital in 2012 was generated through 

retained earnings, while the remaining $3.4 billion 

(31 percent of the total increase) was raised from 

external sources.

Although earnings were an important source of capital formation during 2012, community banks devoted 

a smaller share of net income to retained earnings 

during the year. Among community banks that earned 

a profit for the year, the earnings retention ratio fell 

to 51 percent in 2012 from 58 percent in 2011, with 

the remaining income being paid out in dividends. 

Although the community bank earnings retention 

ratio remained near its ten-year average in 2012, it is 

well below the average level of 62 percent reported 

between 1984 and 2002. Meanwhile, noncommunity 

banks continued to pay dividends at a much higher 

rate than did community banks, retaining only 31 

percent of 2012 earnings and paying out the remaining 

69 percent in dividends.

Community banks historically have been more reliant 

than noncommunity banks on capital raised through 

retained earnings, but the opposite was true in 2012.17

Noncommunity banks generated $37.3 billion in 

retained earnings during the year, accounting for 84 

percent of their total additions to equity capital. Part of 

the success by noncommunity banks in generating 

retained earnings is attributable to a more rapid recovery in their net income following the crisis, from a low 

of –$7.1 billion in 2009 to $124.7 billion in 2012. In 

addition, some of the nation’s largest banks either 

remain unable to pay dividends under the Federal 

17 For a historical comparison of capital raised from retained earnings 

by community and noncommunity banks, see Table 6.1 of the FDIC 

Community Banking Study.

Table 8

Total Additions to Equity Capital Through Retained Earnings and 

New Capital Raised From External Sources, 2012

Bank Type

Additions to Capital Through:

Retained Earnings Total

New Capital Raised From 

External Sources

$ Billions % of Total $ Billions % of Total $ Billions

Community Banks $7.5 69% $3.4 31% $10.9

Noncommunity Banks $37.3 84% $7.0 16% $44.3

Total $44.8 81% $10.4 19% $55.2

Source: FDIC.

Note: Figures are not adjusted to reflect merger activity.
FDIC Quarterly 39 2013, Volume 7, No. 4

Community Bank Developments in 2012

however, and future earnings growth will eventually 

need to be based on increases in net interest income. 

Even so, community banks were able to augment their 

equity capital by $10.9 billion during 2012, of which 

$7.5 billion was derived from retained earnings.

Despite their relatively low 14 percent share of banking 

industry assets, community banks continue to play an 

important role in the U.S. financial system. At year-end 

2012, community banks represented 92 percent of 

FDIC-insured banking charters and 95 percent of U.S. 

banking organizations, and held 46 percent of the 

industry’s small loans to farms and businesses—all 

percentages that were unchanged from 2011. Additionally, they continue to hold the majority of deposits in 

offices located in rural and micropolitan areas, and 

there were 615 U.S. counties in 2012 where the only 

physical banking offices were those operated by community banks.

The ability to generate capital and support balanced 

growth through retained earnings has traditionally been 

a recipe for long-term success for many community 

banks. Although operating conditions remain challenging on a number of fronts, these developments mark 

continued progress in the community banking sector’s 

recovery from the effects of the financial crisis.

Author: Benjamin R. Backup

Economic Analyst

Division of Insurance and Research

The community bank total risk-based capital ratio at 

year-end 2012 was 16.47 percent, compared with 14.89 

percent at noncommunity banks.

Conclusion

By many measures, 2012 was the best year for community banks since the beginning of the financial crisis. 

The number and rate of community bank failures 

declined, even as voluntary community bank closures 

increased. Although there were no new institutions 

chartered in 2012, recent signs point to renewed interest in new bank charters. Community banks continued 

to strengthen their balance sheets in 2012 by reducing 

problem assets and increasing capital levels. Although 

community bank assets grew at a slower rate than did 

those of noncommunity banks, the improvement in 

credit performance at community banks made it possible for them to achieve a net growth rate of 2.4 percent 

of total assets for the year.

Community bank earnings continued to recover in 

2012, with net income totaling $16.4 billion—the 

second-highest annual figure on record. Pretax ROA 

exceeded 1 percent for the first time since 2007, and 

the profitability gap between community and noncommunity banks narrowed by 17 basis points from 2011. 

The improvement in community bank profitability was 

driven by higher noninterest income and lower loss 

provisions, which more than offset a decline in net 

interest income. The factors that drove increased 

profitability in 2012 may prove to be short-lived, 

Table 9

Capital Ratios at Community and Noncommunity Banks, 2011–2012

Bank Type Year-End 2011 Year-End 2012

Leverage Ratio Community Banks 10.02% 10.20%

Noncommunity Banks 8.91% 8.97%

Total RBC Ratio Community Banks 16.27% 16.47%

Noncommunity Banks 15.16% 14.89%

Source: FDIC. The leverage ratio measures common equity, certain types of preferred equity, and retained earnings as a percentage of total assets. The total risk-based capital ratio uses a 

broader regulatory definition of capital and adjusts total assets to reflect a range of on- and off-balance-sheet exposures.

Note: Capital ratios for 2011 are adjusted to account for acquisitions that occurred in 2012.