QUARTERLY BANKING PROFILE Second Quarter 2018

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income Rises 25.1 Percent Over Second Quarter 2017 Income, Led by Higher Net Operating Revenue and a 

Lower Effective Tax Rate

Margins Increase as Average Yields Outpace Growth in Funding Costs

Loan Balances Expand 4.2 Percent From Second Quarter 2017

Noncurrent Loan Rate Declines, While Net Charge-Off Rate Remains Stable

Two New Charters Added in Second Quarter 2018

Net Income Rises 

25.1 Percent Over Second 

Quarter 2017, Led by Higher 

Net Operating Revenue and 

a Lower Effective Tax Rate

The 5,542 FDIC-insured commercial banks and savings institutions reported net income 

of $60.2 billion during the three months ended June 30, an increase of $12.1 billion 

(25.1 percent) from a year earlier. Higher net operating revenue (the sum of net interest 

income and noninterest income) and a lower effective tax rate contributed to the increase 

in industry net income. Assuming the effective tax rate before the new tax law, net income 

would have totaled an estimated $53.8 billion, an increase of $5.6 billion (11.7 percent) from 

second quarter 2017.1 The average return on assets was 1.37 percent, up from 1.13 percent a 

year earlier. Only 3.8 percent of institutions were unprofitable during the quarter, down from 

4.3 percent in second quarter 2017.

Margins Increase as Average 

Yields Outpace Growth in 

Funding Costs

Net interest income totaled $134.1 billion, an increase of $10.7 billion (8.7 percent) from 

12 months earlier and the largest annual dollar increase ever reported by the industry. More 

than four out of five banks (85.1 percent) reported year-over-year increases. Net interest 

margin (NIM) rose to 3.38 percent, up 16 basis points from a year earlier, as average asset 

yields grew more rapidly than average funding costs. Institutions with assets of $10 billion 

to $250 billion reported the largest annual increase in average funding costs (up 30 basis 

points). The improvement in NIM was widespread, as more than two out of three banks 

(70.2 percent) reported increases from a year earlier.

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

28.5

35.2

25.3

37.5 40.3 38.2

36.1

39.8

37.3

40.1 38.5 36.539.8

43.0 40.6

45.6 43.9

48.1

25.3

56.0

60.2

34.8 34.5 34.4

40.4 39.0

43.6 43.2

47.9

0

10

20

30

40

50

60

70

2011 2012 2013 2014 2015 2016 2017 2018

Chart 1

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

20

40

60

80

100

120

140

160

180

200

220

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 2

1 This estimate of net income applies the average quarterly tax rate between fourth quarter 2011 and third quarter 2017 to income 

before taxes and discontinued operations. 
2 0 1 8  •  Volume 1 2  • Number 3

2 FDIC QUARTERLY

Provisions Decline Modestly 

From Second Quarter 2017

Banks set aside $11.7 billion in loan-loss provisions during the second quarter, a decline 

of $293.5 million (2.4 percent) from the previous year. Almost one-third of all banks 

(31.3 percent) reported lower loan-loss provisions than in second quarter 2017. Loan-loss 

provisions as a percentage of net operating revenue declined to 5.8 percent for the current 

quarter, the lowest level since third quarter 2015.

Noninterest Income 

Expands 2 Percent From a 

Year Earlier

Noninterest income totaled $68.1 billion, an increase of $1.3 billion (2 percent) from the 

previous year. The 12-month increase in noninterest income was attributable to servicing 

fees (up $638.2 million, or 29.5 percent), fiduciary activity (up $558.4 million, or 6.3 percent), 

and net gains on sales of other assets (up $388.3 million). Slightly more than half of all institutions (55.6 percent) reported increases in noninterest income from a year earlier.

Noninterest Expense Grows 

4.6 Percent Year Over Year

Noninterest expenses rose by $5 billion (4.6 percent) from a year earlier, as salary and 

employee benefits grew by $2.7 billion (5.2 percent) and other noninterest expense increased 

by $1.8 billion (4.2 percent).2 Average assets per employee totaled $8.4 million for the current 

quarter, up from $8.2 million in second quarter 2017. The efficiency ratio (noninterest 

expense as a percent of net operating revenue) improved to 55.5 percent in the second quarter, the lowest level since first quarter 2010.

Net Charge-Off Rate 

Remains Stable

For the past eleven quarters in a row, net charge-offs increased compared with a year 

earlier but at a slower rate. During the second quarter, banks charged-off $11.7 billion 

in uncollectable loans, an increase of $446.4 billion (4 percent) over the past 12 months. 

The annual increase in net charge-offs was led by credit card balances (up $918.9 million, 

or 12.8 percent). The average net charge-off rate remained stable from a year earlier at 

0.48 percent.

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Noncurrent Loan Rate

Quarterly Net Charge-O Rate

Chart 3

Source: FDIC.

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

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio

All FDIC-Insured Institutions

0

50

100

150

200

250

300

350

400

450

0

20

40

60

80

100

120

140

160

180

 Loan-Loss Reserves ($) 

 Noncurrent Loans ($)

 Noncurrents Adjusted for GNMA Guaranteed Loans ($)

 Coverage Ratio (%) 

 Coverage Adjusted for GNMA Guaranteed Loans (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 4

2 Other noninterest expense includes, but is not limited to, information technology costs, legal fees, consulting services, and 

audit fees.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Noncurrent Loan Rate 

Declines to 1.06 Percent

Noncurrent loan balances (90 days or more past due or in nonaccrual status) declined by 

$7.7 billion (6.8 percent) from the first quarter, as more than half (52 percent) of all institutions reported quarterly declines. The improvement was led by residential mortgages 

(down $5.2 billion, or 9.7 percent), commercial and industrial loans (down $1.2 billion, or 

6.8 percent), and credit cards (down $848.6 million, or 7.4 percent). The average noncurrent 

rate fell from 1.15 percent in the first quarter to 1.06 percent.

Reserve Coverage of 

Noncurrent Loans 

Continues to Grow

Loan-loss reserves declined by $330 million (0.3 percent) from the first quarter, as less than 

one-third (25.3 percent) of all institutions reported a quarterly decline. At banks that itemize their loan-loss reserves, which represent almost 91 percent of total industry loan-loss 

reserves, losses on credit cards increased by $284.2 million (0.7 percent). Itemized reserves 

for residential real estate losses fell by $522.3 million (3.7 percent). As noncurrent loan 

balances declined at a faster quarterly rate than loan-loss reserves, the coverage ratio (loanloss reserves to noncurrent loan balances) grew from 110 percent in the first quarter to 

117.7 percent.

Equity Capital Increases 

From the First Quarter

Equity capital of $2 trillion rose by $15.3 billion (0.8 percent) from the first quarter. Retained 

earnings contributed $22.4 billion to equity growth but were partly offset by a $7.8 billion 

reduction in accumulated other comprehensive income. With a decline in market value of 

available-for-sale securities, unrealized losses totaled $40.2 billion for the current quarter, 

an increase of $6 billion (17.4 percent) from the previous quarter. Declared dividends totaled 

$37.8 billion, an increase of $9.5 billion (33.4 percent) from the year before. At the end of 

the quarter, 99.6 percent of all insured institutions, which account for 99.97 percent of total 

industry assets, met or exceeded the requirements for the highest regulatory capital category, 

as defined for Prompt Corrective Action purposes.

Balances at Federal Reserve 

Banks Decline Almost 

12 Percent

Total assets rose modestly (up $1.3 billion) from the previous quarter, as cash and balances 

due from depository institutions declined by $126.4 billion (6.5 percent), the largest quarterly dollar decline since second quarter 2015. Balances at Federal Reserve banks declined 

by $139.7 billion (11.7 percent), and mortgage-backed securities rose by $43.5 billion 

(2.1 percent).

Held-to-Maturity Securities

Available-for-Sale Securities

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-80

-60

-40

-20

0

20

40

60

80

2013 2014 2015 2016 2017 2018

-66.4

Chart 5

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Source: FDIC.

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

balances back onto banks’ balance sheets in the rst quarter of 2010. Although the total amount

consolidated cannot be precisely quantied, the industry would have reported a decline in loan balances 

for the quarter absent this change in accounting standards. 

Quarterly Change in Loans ($ Billions) 12-Month Growth Rate (Percent)

-300

-200

-100

0

100

200

300

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

189 203

61

28

-6

-116-140

-109

-210

-133

-7-14

-126

67

24

134 102

65

117

-37

74 70

38

178

51

149

53

95

197

99

182

112

-8

161

99 104

237 221

-107

-63

91

185

72

164

31

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 6
2 0 1 8  •  Volume 1 2  • Number 3

4 FDIC QUARTERLY

Loan Balances Expand 

4.2 Percent From Second 

Quarter 2017

Total loan and lease balances increased by $104.3 billion (1.1 percent) from the first quarter, as more than three out of four banks (76.2 percent) reported quarterly increases. All 

major loan categories registered quarterly increases, led by commercial and industrial loans 

(up $25.5 billion, or 1.2 percent); consumer loans, which include credit card balances (up 

$23.7 billion, or 1.4 percent); nonfarm nonresidential loans (up $18.9 billion, or 1.3 percent); 

and residential mortgage loans (up $17.9 billion, or 0.9 percent).3 Over the past year, total 

loan and lease balances grew by $398.5 billion (4.2 percent), a slight decline from last quarter’s annual growth rate of 4.9 percent. Commercial and industrial loans rose by $95.2 billion 

(4.8 percent); consumer loans, which include credit card balances, increased by $84.4 billion 

(5.4 percent); residential mortgage loans grew by $70.6 billion (3.5 percent); and nonfarm 

nonresidential loans expanded by $56.4 billion (4.1 percent).

Deposits Decline From the 

Previous Quarter

Total deposits fell by $60.2 billion (0.4 percent) from the previous quarter, as deposits in both 

foreign offices (down $38.8 billion, or 3 percent) and domestic offices (down $21.5 billion, or 

0.2 percent) declined. Domestic interest-bearing deposits rose by $13.5 billion (0.1 percent), 

while noninterest-bearing deposits declined by $34.9 billion (1.1 percent). Banks increased 

their nondeposit liabilities by $46.3 billion (2.3 percent) from the first quarter, led by 

Federal Home Loan Bank advances (up $30 billion, or 5.4 percent) and other liabilities (up 

$11.7 billion, or 3.1 percent).

Two New Charters Added in 

Second Quarter 2018

During the three months ended June 30, the number of FDIC-insured commercial banks 

and savings institutions declined by 65 to 5,542. Two new charters were added, 64 institutions were absorbed by mergers, and no banks failed. The number of institutions on the 

FDIC’s “Problem Bank List” fell from 92 to 82, the lowest number since fourth quarter 2007. 

Assets of problem banks declined from $56.4 billion to $54.4 billion.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6578

Source: FDIC.

Number Assets ($ Billions)

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

0

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

300

350

400

450

500

Number of Problem Banks

Assets of Problem Banks

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 7

3 Major loan categories include commercial and industrial loans, residential mortgage loans, consumer loans, and nonfarm 

nonresidential loans. Consumer loans include credit card loans, automobile loans, and all other consumer loans.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2018** 2017** 2017 2016 2015 2014 2013

Return on assets (%) 1.33 1.09 0.97 1.04 1.04 1.01 1.07

Return on equity (%) 11.83 9.72 8.61 9.29 9.29 9.01 9.54

Core capital (leverage) ratio (%) 9.74 9.69 9.63 9.48 9.59 9.44 9.40

Noncurrent assets plus other real estate owned to assets (%) 0.64 0.75 0.72 0.86 0.97 1.20 1.63

Net charge-offs to loans (%) 0.49 0.49 0.50 0.47 0.44 0.49 0.69

Asset growth rate (%) 2.71 3.24 3.79 5.09 2.66 5.59 1.94

Net interest margin (%) 3.36 3.20 3.25 3.13 3.07 3.14 3.26

Net operating income growth (%) 27.30 12.17 -3.25 4.57 7.11 -0.73 12.82

Number of institutions reporting 5,542 5,787 5,670 5,913 6,182 6,509 6,812

Commercial banks 4,833 5,011 4,918 5,112 5,338 5,607 5,847

Savings institutions 709 776 752 801 844 902 965

Percentage of unprofitable institutions (%) 3.70 4.08 5.61 4.46 4.80 6.27 8.16

Number of problem institutions 82 105 95 123 183 291 467

Assets of problem institutions (in billions) $54 $17 $14 $28 $47 $87 $153

Number of failed institutions 0 6 8 5 8 18 24

* Excludes insured branches of foreign banks (IBAs).

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

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

(dollar figures in millions)  2nd Quarter

2018

1st Quarter

2018

2nd Quarter

2017

%Change 

17Q2-18Q2

Number of institutions reporting 5,542 5,607 5,787 -4.2

Total employees (full-time equivalent) 2,077,035 2,076,978 2,093,283 -0.8

CONDITION DATA

Total assets $17,532,848 $17,531,541 $17,069,453 2.7

Loans secured by real estate 4,831,855 4,795,206 4,691,032 3.0

 1-4 Family residential mortgages 2,090,483 2,072,611 2,019,883 3.5

 Nonfarm nonresidential 1,421,579 1,402,650 1,365,216 4.1

 Construction and development 346,939 344,173 324,111 7.0

 Home equity lines 389,047 398,436 424,044 -8.3

Commercial & industrial loans 2,077,261 2,051,797 1,982,090 4.8

Loans to individuals 1,658,216 1,634,554 1,573,842 5.4

 Credit cards 837,188 820,415 779,714 7.4

Farm loans 79,845 75,619 79,441 0.5

Other loans & leases 1,211,852 1,197,490 1,133,844 6.9

Less: Unearned income 2,347 2,283 2,040 15.0

Total loans & leases 9,856,682 9,752,384 9,458,208 4.2

Less: Reserve for losses 123,413 123,743 121,386 1.7

Net loans and leases 9,733,269 9,628,641 9,336,822 4.2

Securities 3,633,321 3,598,925 3,568,971 1.8

Other real estate owned 7,614 8,133 9,627 -20.9

Goodwill and other intangibles 391,735 388,766 376,684 4.0

All other assets 3,766,910 3,907,076 3,777,350 -0.3

Total liabilities and capital 17,532,848 17,531,541 17,069,453 2.7

Deposits 13,468,726 13,528,940 13,105,310 2.8

 Domestic office deposits 12,235,438 12,256,900 11,780,618 3.9

 Foreign office deposits 1,233,288 1,272,040 1,324,692 -6.9

Other borrowed funds 1,494,288 1,471,092 1,447,746 3.2

Subordinated debt 67,197 69,852 77,428 -13.2

All other liabilities 518,827 493,059 500,766 3.6

Total equity capital (includes minority interests) 1,983,810 1,968,598 1,938,203 2.4

 Bank equity capital 1,980,329 1,965,000 1,933,123 2.4

Loans and leases 30-89 days past due 59,368 63,138 58,410 1.6

Noncurrent loans and leases 104,823 112,481 116,520 -10.0

Restructured loans and leases 57,618 58,438 62,818 -8.3

Mortgage-backed securities 2,156,874 2,113,396 2,072,554 4.1

Earning assets 15,851,976 15,883,667 15,406,743 2.9

FHLB Advances 583,974 553,988 565,704 3.2

Unused loan commitments 7,736,767 7,721,910 7,348,535 5.3

Trust assets 20,369,312 20,360,217 18,547,441 9.8

Assets securitized and sold 589,409 657,750 714,598 -17.5

Notional amount of derivatives 209,828,300 205,986,536 187,865,984 11.7

INCOME DATA First Half 2018 First Half 2017 %Change

2nd Quarter 

2018

2nd Quarter 

2017

%Change 

17Q2-18Q2

Total interest income $316,505 $276,737 14.4 $161,891 $140,570 15.2

Total interest expense 51,329 32,658 57.2 27,781 17,191 61.6

Net interest income 265,176 244,079 8.6 134,109 123,379 8.7

Provision for loan and lease losses 24,108 24,037 0.3 11,712 12,006 -2.4

Total noninterest income 135,391 129,049 4.9 68,051 66,722 2.0

Total noninterest expense 228,733 217,259 5.3 113,379 108,401 4.6

Securities gains (losses) 422 1,318 -68.0 175 772 -77.3

Applicable income taxes 31,726 41,044 -22.7 16,804 22,266 -24.5

Extraordinary gains, net* -188 16 N/M -180 19 N/M

Total net income (includes minority interests) 116,234 92,122 26.2 60,259 48,220 25.0

 Bank net income 116,083 91,943 26.3 60,201 48,132 25.1

Net charge-offs 23,738 22,732 4.4 11,682 11,235 4.0

Cash dividends 68,331 55,598 22.9 37,788 28,330 33.4

Retained earnings 47,753 36,345 31.4 22,413 19,802 13.2

Net operating income 116,083 91,192 27.3 60,301 47,662 26.5

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 8  •  Volume 1 2  • Number 3

6 FDIC QUARTERLY

TABLE III-A. Second Quarter 2018, All FDIC-Insured Institutions

Asset Concentration Groups*

SECOND QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,542 12 5 1,383 2,894 405 71 246 475 51

Commercial banks 4,833 11 5 1,370 2,599 115 51 222 418 42

Savings institutions 709 1 0 13 295 290 20 24 57 9

Total assets (in billions) $17,532.8 $626.4 $4,222.2 $283.8 $6,167.7 $356.3 $216.8 $39.4 $80.8 $5,539.5

Commercial banks 16,366.7 541.9 4,222.2 277.7 5,708.0 102.5 106.3 35.1 69.4 5,303.5

Savings institutions 1,166.1 84.5 0.0 6.0 459.7 253.8 110.5 4.3 11.3 236.1

Total deposits (in billions) 13,468.7 367.5 3,062.3 235.6 4,832.7 277.1 177.4 31.5 68.4 4,416.1

Commercial banks 12,543.9 305.9 3,062.3 230.6 4,485.9 83.1 85.6 28.6 59.2 4,202.7

Savings institutions 924.9 61.7 0.0 5.0 346.8 194.0 91.8 2.9 9.2 213.4

Bank net income (in millions) 60,201 4,249 13,021 951 19,577 967 648 369 230 20,190

Commercial banks 56,667 3,703 13,021 922 18,445 383 460 178 212 19,342

Savings institutions 3,534 545 0 29 1,132 584 188 190 18 848

Performance Ratios (annualized, %)

Yield on earning assets 4.08 12.15 3.24 4.49 4.23 3.64 4.62 3.35 4.16 3.62

Cost of funding earning assets 0.70 1.89 0.71 0.66 0.68 0.68 0.62 0.41 0.49 0.60

Net interest margin 3.38 10.26 2.53 3.83 3.56 2.95 4.00 2.94 3.66 3.02

Noninterest income to assets 1.55 3.48 2.00 0.65 1.13 1.29 1.45 8.38 0.87 1.49

Noninterest expense to assets 2.59 6.03 2.48 2.54 2.62 2.60 2.90 6.59 2.87 2.21

Loan and lease loss provision to assets 0.27 3.33 0.17 0.18 0.14 -0.01 0.47 0.07 0.09 0.16

Net operating income to assets 1.38 2.73 1.23 1.35 1.28 1.06 1.51 3.76 1.15 1.45

Pretax return on assets 1.76 3.65 1.57 1.51 1.61 1.53 1.66 4.41 1.30 1.87

Return on assets 1.37 2.73 1.23 1.35 1.28 1.08 1.20 3.75 1.14 1.45

Return on equity 12.22 17.77 12.36 11.95 10.75 9.55 11.71 22.69 9.64 13.15

Net charge-offs to loans and leases 0.48 4.02 0.50 0.19 0.16 0.01 1.14 0.04 0.09 0.36

Loan and lease loss provision to 

net charge-offs 100.26 105.87 93.49 140.18 118.62 -242.62 58.97 657.79 178.89 87.59

Efficiency ratio 55.47 45.85 58.19 59.62 59.37 63.10 53.36 59.36 66.87 51.46

% of unprofitable institutions 3.79 0.00 0.00 2.89 3.28 6.67 7.04 6.10 5.89 0.00

% of institutions with earnings gains 74.12 100.00 100.00 68.04 78.44 67.16 66.20 70.33 71.79 92.16

Structural Changes

New reporters 2 0 0 0 0 0 0 2 0 0

Institutions absorbed by mergers 64 1 0 5 54 1 1 0 1 1

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

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2017 1.13 2.05 0.95 1.22 1.08 0.92 1.13 2.97 0.91 1.25

 2015 1.09 2.89 0.94 1.21 0.96 0.92 1.21 0.34 1.02 1.17

 2013 1.06 3.27 1.03 1.21 0.79 1.07 1.68 1.79 0.95 1.05

Net charge-offs to loans & leases (%) 2017 0.48 4.07 0.51 0.21 0.22 0.00 0.59 0.19 0.16 0.39

 2015 0.42 2.80 0.57 0.12 0.17 0.13 0.58 0.20 0.19 0.39

 2013 0.73 3.38 1.05 0.14 0.46 0.41 1.07 0.45 0.38 0.48

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

FDIC QUARTERLY 7

TABLE III-A. Second Quarter 2018, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

SECOND QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,542 1,372 3,399 637 125 9 675 645 1,195 1,412 1,205 410

Commercial banks 4,833 1,220 2,976 516 112 9 351 588 1,025 1,364 1,131 374

Savings institutions 709 152 423 121 13 0 324 57 170 48 74 36

Total assets (in billions) $17,532.8 $81.8 $1,112.3 $1,706.7 $5,951.5 $8,680.6 $3,276.4 $3,614.2 $3,957.2 $3,626.6 $1,114.0 $1,944.4

Commercial banks 16,366.7 73.0 953.4 1,352.4 5,307.3 8,680.6 2,836.8 3,512.2 3,851.0 3,586.2 977.9 1,602.6

Savings institutions 1,166.1 8.8 158.8 354.3 644.1 0.0 439.7 102.0 106.2 40.3 136.1 341.8

Total deposits (in billions) 13,468.7 68.1 927.0 1,359.4 4,532.0 6,582.3 2,473.8 2,845.6 2,923.8 2,780.8 903.9 1,540.8

Commercial banks 12,543.9 61.4 801.7 1,085.4 4,013.1 6,582.3 2,139.8 2,764.6 2,849.2 2,749.5 795.1 1,245.6

Savings institutions 924.9 6.6 125.3 274.0 518.9 0.0 334.0 81.1 74.6 31.3 108.8 295.2

Bank net income (in millions) 60,201 222 3,512 5,451 21,724 29,293 9,805 13,505 12,890 11,621 3,932 8,448

Commercial banks 56,667 195 3,034 4,686 19,459 29,293 8,799 13,286 12,680 11,514 3,407 6,982

Savings institutions 3,534 27 477 765 2,265 0 1,006 219 210 108 525 1,466

Performance Ratios (annualized, %)

Yield on earning assets 4.08 4.37 4.47 4.39 4.65 3.58 4.24 4.16 3.38 4.11 4.45 4.81

Cost of funding earning assets 0.70 0.54 0.63 0.68 0.81 0.64 0.86 0.62 0.61 0.75 0.56 0.75

Net interest margin 3.38 3.83 3.85 3.71 3.83 2.94 3.38 3.54 2.77 3.36 3.89 4.06

Noninterest income to assets 1.55 1.36 1.15 1.20 1.51 1.70 1.37 1.53 2.00 1.29 1.28 1.66

Noninterest expense to assets 2.59 3.55 3.13 2.77 2.67 2.42 2.54 2.52 2.67 2.46 2.97 2.67

Loan and lease loss provision to assets 0.27 0.10 0.13 0.18 0.45 0.18 0.37 0.27 0.11 0.26 0.14 0.51

Net operating income to assets 1.38 1.10 1.27 1.32 1.47 1.34 1.19 1.50 1.32 1.26 1.43 1.76

Pretax return on assets 1.76 1.24 1.48 1.65 1.90 1.73 1.51 1.92 1.67 1.64 1.74 2.31

Return on assets 1.37 1.09 1.27 1.29 1.47 1.34 1.20 1.50 1.30 1.27 1.42 1.76

Return on equity 12.22 8.18 11.26 11.03 12.10 12.75 9.64 12.43 12.50 12.55 12.34 15.47

Net charge-offs to loans and leases 0.48 0.12 0.11 0.27 0.69 0.43 0.60 0.54 0.25 0.49 0.21 0.70

Loan and lease loss provision to 

net charge-offs 100.26 140.36 175.71 97.78 105.46 89.84 108.18 87.11 86.38 98.93 103.99 116.60

Efficiency ratio 55.47 72.27 65.80 59.17 52.63 55.31 56.95 52.99 59.31 55.60 60.43 48.30

% of unprofitable institutions 3.79 9.11 2.32 0.94 0.00 0.00 3.70 4.81 5.02 2.90 2.82 4.63

% of institutions with earnings gains 74.12 65.31 75.14 84.46 88.80 100.00 79.11 79.07 72.22 70.40 74.02 76.83

Structural Changes

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

Institutions absorbed by mergers 64 16 39 8 1 0 12 10 11 15 10 6

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

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2017 1.13 0.94 1.12 1.26 1.14 1.10 0.95 1.20 1.04 1.08 1.28 1.54

 2015 1.09 0.95 0.97 1.31 1.04 1.10 0.96 1.10 0.96 1.23 1.15 1.29

 2013 1.06 0.77 0.95 1.27 0.88 1.17 0.54 1.02 1.12 1.28 1.17 1.60

Net charge-offs to loans & leases (%) 2017 0.48 0.21 0.12 0.22 0.72 0.44 0.60 0.57 0.24 0.48 0.26 0.66

 2015 0.42 0.14 0.14 0.21 0.55 0.45 0.49 0.47 0.25 0.50 0.21 0.49

 2013 0.73 0.35 0.37 0.43 0.97 0.72 1.00 0.70 0.48 0.95 0.34 0.58

* See Table V-A (page 11) for explanations.
2 0 1 8  •  Volume 1 2  • Number 3

8 FDIC QUARTERLY

TABLE IV-A. First Half 2018, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST HALF

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,542 12 5 1,383 2,894 405 71 246 475 51

Commercial banks 4,833 11 5 1,370 2,599 115 51 222 418 42

Savings institutions 709 1 0 13 295 290 20 24 57 9

Total assets (in billions) $17,532.8 $626.4 $4,222.2 $283.8 $6,167.7 $356.3 $216.8 $39.4 $80.8 $5,539.5

Commercial banks 16,366.7 541.9 4,222.2 277.7 5,708.0 102.5 106.3 35.1 69.4 5,303.5

Savings institutions 1,166.1 84.5 0.0 6.0 459.7 253.8 110.5 4.3 11.3 236.1

Total deposits (in billions) 13,468.7 367.5 3,062.3 235.6 4,832.7 277.1 177.4 31.5 68.4 4,416.1

Commercial banks 12,543.9 305.9 3,062.3 230.6 4,485.9 83.1 85.6 28.6 59.2 4,202.7

Savings institutions 924.9 61.7 0.0 5.0 346.8 194.0 91.8 2.9 9.2 213.4

Bank net income (in millions) 116,083 8,524 25,826 1,868 37,788 1,966 1,402 711 434 37,564

Commercial banks 109,061 7,487 25,826 1,808 35,540 798 921 338 398 35,944

Savings institutions 7,022 1,037 0 60 2,249 1,167 481 372 35 1,620

Performance Ratios (annualized, %)

Yield on earning assets 4.01 12.05 3.16 4.40 4.14 3.58 4.67 3.28 4.08 3.54

Cost of funding earning assets 0.65 1.79 0.65 0.62 0.63 0.64 0.63 0.39 0.47 0.55

Net interest margin 3.36 10.26 2.51 3.78 3.51 2.94 4.04 2.90 3.61 2.99

Noninterest income to assets 1.55 3.59 2.02 0.63 1.12 1.24 1.44 8.25 0.85 1.47

Noninterest expense to assets 2.62 6.15 2.50 2.52 2.61 2.57 2.94 6.55 2.85 2.29

Loan and lease loss provision to assets 0.28 3.38 0.18 0.14 0.14 -0.01 0.51 0.07 0.11 0.17

Net operating income to assets 1.33 2.71 1.22 1.33 1.24 1.08 1.46 3.64 1.09 1.35

Pretax return on assets 1.69 3.57 1.56 1.49 1.56 1.49 1.76 4.29 1.23 1.73

Return on assets 1.33 2.71 1.22 1.32 1.24 1.10 1.31 3.63 1.08 1.35

Return on equity 11.83 17.96 12.34 11.77 10.44 9.74 12.79 21.84 9.08 12.23

Net charge-offs to loans and leases 0.49 4.02 0.53 0.13 0.17 0.02 0.97 0.10 0.13 0.37

Loan and lease loss provision to 

net charge-offs 101.56 107.09 90.23 160.56 121.60 -94.09 74.17 251.44 154.50 89.08

Efficiency ratio 56.49 46.45 58.57 60.39 59.90 63.47 53.97 59.88 67.69 53.86

% of unprofitable institutions 3.70 0.00 0.00 2.53 3.14 7.16 7.04 6.91 5.89 0.00

% of institutions with earnings gains 76.02 83.33 100.00 71.01 80.72 69.38 73.24 70.33 69.05 90.20

Condition Ratios (%)

Earning assets to total assets 90.41 92.74 87.86 93.44 90.95 94.43 96.89 92.04 92.95 90.78

Loss allowance to:

Loans and leases 1.25 4.46 1.31 1.40 1.01 0.71 1.03 1.49 1.29 1.08

Noncurrent loans and leases 117.73 334.66 124.21 125.29 126.16 27.38 161.90 120.63 126.39 80.75

Noncurrent assets plus

other real estate owned to assets 0.64 1.05 0.41 0.88 0.65 1.61 0.47 0.44 0.76 0.71

Equity capital ratio 11.29 15.29 10.02 11.31 11.91 11.24 10.35 16.59 11.89 11.12

Core capital (leverage) ratio 9.74 13.47 8.86 11.19 10.24 10.89 10.57 16.32 12.22 9.18

Common equity tier 1 capital ratio 13.14 13.85 13.46 14.68 12.39 21.95 17.12 36.04 20.82 12.93

Tier 1 risk-based capital ratio 13.22 13.95 13.55 14.69 12.47 21.97 17.36 36.05 20.85 13.01

Total risk-based capital ratio 14.59 15.91 14.95 15.81 13.74 22.84 18.36 37.06 21.93 14.47

Net loans and leases to deposits 72.27 127.90 50.89 81.65 89.31 75.99 85.51 34.89 66.00 62.91

Net loans to total assets 55.51 75.05 36.91 67.79 69.98 59.12 69.97 27.88 55.92 50.15

Domestic deposits to total assets 69.79 57.36 48.08 83.02 78.08 77.49 81.81 79.91 84.73 76.56

Structural Changes

New reporters 5 0 0 0 0 0 0 5 0 0

Institutions absorbed by mergers 129 1 0 12 108 2 1 0 3 2

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

PRIOR FIRST HALVES

(The way it was...)

Number of institutions 2017 5,787 12 5 1,418 2,958 454 60 276 546 58

 2015 6,348 14 4 1,484 3,146 545 55 353 681 66

 2013 6,940 16 4 1,521 3,455 603 47 416 810 68

Total assets (in billions) 2017 $17,069.5 $505.5 $4,194.3 $280.9 $5,911.7 $359.5 $261.7 $48.0 $97.0 $5,410.8

 2015 15,753.6 510.3 3,747.4 258.3 5,194.6 445.4 178.4 60.6 122.6 5,236.1

 2013 14,409.8 590.5 3,650.4 236.0 4,723.8 562.0 103.9 64.1 143.9 4,335.2

Return on assets (%) 2017 1.09 2.05 0.95 1.20 1.03 0.90 1.10 2.83 0.92 1.16

 2015 1.06 2.95 0.92 1.19 0.93 0.86 1.15 1.12 0.99 1.11

 2013 1.09 3.19 1.00 1.17 0.87 1.01 1.60 1.73 0.94 1.11

Net charge-offs to loans & leases (%) 2017 0.49 3.97 0.58 0.15 0.21 0.05 0.62 0.15 0.14 0.40

 2015 0.43 2.78 0.59 0.07 0.16 0.14 0.59 0.17 0.17 0.40

 2013 0.78 3.37 1.12 0.12 0.49 0.42 1.13 0.44 0.33 0.55

Noncurrent assets plus 

OREO to assets (%) 2017 0.75 1.06 0.50 0.84 0.76 1.63 0.62 0.50 0.92 0.83

 2015 1.04 0.74 0.76 0.80 0.96 1.94 1.03 0.69 1.27 1.28

 2013 1.90 0.92 1.28 1.03 1.94 2.30 0.89 1.00 1.60 2.56

Equity capital ratio (%) 2017 11.33 15.91 9.90 11.47 12.04 11.13 10.28 15.28 11.88 11.23

 2015 11.23 14.83 9.78 11.40 11.96 11.51 10.26 15.12 11.71 11.13

 2013 11.16 15.10 8.86 11.01 11.85 11.23 9.84 14.42 11.32 11.79

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

FDIC QUARTERLY 9

TABLE IV-A. First Half 2018, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST HALF

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,542 1,372 3,399 637 125 9 675 645 1,195 1,412 1,205 410

Commercial banks 4,833 1,220 2,976 516 112 9 351 588 1,025 1,364 1,131 374

Savings institutions 709 152 423 121 13 0 324 57 170 48 74 36

Total assets (in billions) $17,532.8 $81.8 $1,112.3 $1,706.7 $5,951.5 $8,680.6 $3,276.4 $3,614.2 $3,957.2 $3,626.6 $1,114.0 $1,944.4

Commercial banks 16,366.7 73.0 953.4 1,352.4 5,307.3 8,680.6 2,836.8 3,512.2 3,851.0 3,586.2 977.9 1,602.6

Savings institutions 1,166.1 8.8 158.8 354.3 644.1 0.0 439.7 102.0 106.2 40.3 136.1 341.8

Total deposits (in billions) 13,468.7 68.1 927.0 1,359.4 4,532.0 6,582.3 2,473.8 2,845.6 2,923.8 2,780.8 903.9 1,540.8

Commercial banks 12,543.9 61.4 801.7 1,085.4 4,013.1 6,582.3 2,139.8 2,764.6 2,849.2 2,749.5 795.1 1,245.6

Savings institutions 924.9 6.6 125.3 274.0 518.9 0.0 334.0 81.1 74.6 31.3 108.8 295.2

Bank net income (in millions) 116,083 428 6,759 10,724 41,678 56,494 19,155 25,283 25,399 22,452 7,596 16,198

Commercial banks 109,061 375 5,828 9,053 37,312 56,494 17,191 24,821 24,834 22,227 6,601 13,388

Savings institutions 7,022 54 931 1,671 4,366 0 1,965 462 566 226 995 2,809

Performance Ratios (annualized, %)

Yield on earning assets 4.01 4.30 4.40 4.33 4.57 3.50 4.15 4.10 3.30 4.03 4.36 4.76

Cost of funding earning assets 0.65 0.52 0.59 0.64 0.75 0.59 0.80 0.57 0.56 0.70 0.52 0.70

Net interest margin 3.36 3.78 3.80 3.69 3.81 2.91 3.36 3.53 2.73 3.33 3.84 4.06

Noninterest income to assets 1.55 1.35 1.12 1.19 1.52 1.70 1.37 1.49 1.97 1.34 1.26 1.67

Noninterest expense to assets 2.62 3.55 3.11 2.78 2.70 2.46 2.54 2.56 2.67 2.53 2.96 2.73

Loan and lease loss provision to assets 0.28 0.10 0.12 0.19 0.46 0.19 0.37 0.29 0.11 0.26 0.15 0.54

Net operating income to assets 1.33 1.06 1.23 1.30 1.42 1.29 1.17 1.41 1.29 1.22 1.39 1.70

Pretax return on assets 1.69 1.18 1.44 1.63 1.83 1.65 1.48 1.80 1.63 1.57 1.68 2.22

Return on assets 1.33 1.05 1.23 1.28 1.42 1.29 1.17 1.41 1.29 1.23 1.38 1.70

Return on equity 11.83 7.90 10.88 10.98 11.67 12.32 9.47 11.66 12.37 12.16 12.02 14.90

Net charge-offs to loans and leases 0.49 0.14 0.10 0.22 0.71 0.44 0.61 0.55 0.25 0.51 0.21 0.72

Loan and lease loss provision to 

net charge-offs 101.56 128.45 180.33 119.75 106.09 89.36 107.10 90.63 90.98 95.78 108.27 120.58

Efficiency ratio 56.49 72.97 66.46 59.79 53.49 56.60 57.21 54.66 60.04 57.00 61.12 49.40

% of unprofitable institutions 3.70 9.18 2.12 1.10 0.00 0.00 4.15 5.58 4.94 2.27 2.57 4.63

% of institutions with earnings gains 76.02 65.60 77.52 86.81 92.80 100.00 81.78 79.07 72.97 72.80 76.60 80.00

Condition Ratios (%)

Earning assets to total assets 90.41 92.64 93.21 92.54 91.06 89.17 89.86 89.63 89.23 90.66 91.68 94.02

Loss allowance to:

Loans and leases 1.25 1.39 1.25 1.11 1.35 1.21 1.28 1.26 1.12 1.30 1.07 1.45

Noncurrent loans and leases 117.73 113.23 146.73 133.19 137.96 97.13 129.76 108.70 106.23 99.60 112.07 205.19

Noncurrent assets plus

other real estate owned to assets 0.64 0.99 0.80 0.69 0.63 0.62 0.61 0.72 0.57 0.74 0.76 0.46

Equity capital ratio 11.29 13.36 11.32 11.74 12.14 10.61 12.49 12.08 10.49 10.26 11.55 11.26

Core capital (leverage) ratio 9.74 13.44 11.34 10.86 10.47 8.79 10.49 9.59 9.20 9.21 10.36 10.55

Common equity tier 1 capital ratio 13.14 21.35 15.52 14.12 13.17 12.51 13.47 12.83 13.00 12.41 13.29 14.75

Tier 1 risk-based capital ratio 13.22 21.39 15.54 14.14 13.33 12.56 13.53 12.93 13.05 12.50 13.39 14.90

Total risk-based capital ratio 14.59 22.45 16.63 15.12 14.76 14.02 14.90 14.24 14.22 14.40 14.45 15.96

Net loans and leases to deposits 72.27 71.04 82.25 87.86 79.68 62.55 74.66 72.16 67.84 69.67 80.54 76.84

Net loans to total assets 55.51 59.10 68.55 69.98 60.68 47.43 56.37 56.82 50.12 53.42 65.35 60.89

Domestic deposits to total assets 69.79 83.19 83.34 79.41 73.19 63.70 69.27 76.33 64.91 60.97 81.09 78.36

Structural Changes

New reporters 5 5 0 0 0 0 0 2 0 0 1 2

Institutions absorbed by mergers 129 33 77 18 1 0 23 18 18 26 33 11

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

PRIOR FIRST HALVES

(The way it was...)

Number of institutions 2017 5,787 1,471 3,564 631 112 9 709 693 1,232 1,464 1,253 436

 2015 6,348 1,799 3,847 591 102 9 787 788 1,371 1,571 1,338 493

 2013 6,940 2,141 4,146 546 100 7 858 884 1,483 1,686 1,468 561

Total assets (in billions) 2017 $17,069.5 $87.1 $1,159.0 $1,752.2 $5,432.6 $8,638.6 $3,137.2 $3,540.4 $3,890.5 $3,692.3 $1,045.1 $1,763.9

 2015 15,753.6 105.7 1,203.2 1,616.8 4,737.8 8,090.2 3,063.0 3,292.1 3,537.0 3,405.9 930.3 1,525.4

 2013 14,409.8 124.8 1,256.7 1,413.8 4,702.8 6,911.6 2,855.1 2,980.2 3,344.1 3,087.9 867.2 1,275.3

Return on assets (%) 2017 1.09 0.93 1.09 1.18 1.10 1.06 0.93 1.10 1.01 1.08 1.22 1.45

 2015 1.06 0.92 1.00 1.18 1.04 1.06 0.90 1.04 0.95 1.20 1.09 1.32

 2013 1.09 0.76 0.92 1.19 0.99 1.18 0.70 1.07 1.11 1.26 1.14 1.55

Net charge-offs to loans & leases (%) 2017 0.49 0.17 0.12 0.21 0.71 0.46 0.56 0.58 0.29 0.49 0.27 0.66

 2015 0.43 0.14 0.12 0.20 0.54 0.48 0.47 0.50 0.26 0.52 0.19 0.48

 2013 0.78 0.31 0.34 0.42 1.01 0.80 1.05 0.76 0.52 1.00 0.35 0.61

Noncurrent assets plus 

OREO to assets (%) 2017 0.75 1.06 0.90 0.74 0.71 0.75 0.67 0.88 0.67 0.86 0.86 0.48

 2015 1.04 1.35 1.27 1.04 0.80 1.15 0.76 1.28 1.00 1.30 1.09 0.57

 2013 1.90 1.90 2.11 2.15 1.17 2.31 1.26 2.77 1.74 2.18 1.86 1.12

Equity capital ratio (%) 2017 11.33 13.09 11.36 11.82 12.37 10.55 12.46 12.21 10.38 10.08 11.32 12.22

 2015 11.23 12.53 11.28 11.84 12.40 10.39 11.74 12.36 10.13 10.32 11.14 12.37

 2013 11.16 11.76 10.85 11.78 12.43 10.22 12.00 12.22 9.17 10.83 10.74 13.14

* See Table V-A (page 11) for explanations.
2 0 1 8  •  Volume 1 2  • Number 3

10 FDIC QUARTERLY

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

Asset Concentration Groups*

June 30, 2018 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.59 2.54 0.80 0.62 0.39 0.74 0.40 1.22 1.09 0.91

Construction and development 0.32 0.32 0.34 0.59 0.31 0.37 0.51 1.72 0.80 0.29

Nonfarm nonresidential 0.24 0.00 0.30 0.47 0.22 0.23 0.42 0.90 0.71 0.23

Multifamily residential real estate 0.09 70.06 0.05 0.55 0.10 0.11 0.11 0.49 0.48 0.07

Home equity loans 0.63 0.00 0.99 0.35 0.48 0.49 0.35 0.48 0.66 0.74

Other 1-4 family residential 0.98 0.15 1.12 0.95 0.70 0.84 0.41 1.51 1.37 1.32

Commercial and industrial loans 0.31 0.71 0.48 0.94 0.26 0.56 0.21 0.68 1.10 0.23

Loans to individuals 1.32 1.40 1.01 1.17 1.25 1.03 0.73 1.70 1.42 1.60

Credit card loans 1.23 1.41 1.02 0.99 1.21 0.80 0.69 1.75 2.28 1.09

Other loans to individuals 1.40 1.21 0.97 1.18 1.26 1.04 0.74 1.70 1.39 1.89

All other loans and leases (including farm) 0.20 0.57 0.22 0.65 0.17 0.26 0.15 0.60 0.53 0.16

Total loans and leases 0.60 1.34 0.63 0.68 0.41 0.71 0.62 1.18 1.08 0.73

Percent of Loans Noncurrent**

All real estate loans 1.47 1.88 1.98 1.10 0.82 2.72 1.26 1.34 1.12 2.55

Construction and development 0.48 17.93 0.24 0.62 0.48 0.30 0.70 1.70 0.90 0.49

Nonfarm nonresidential 0.60 0.67 0.66 0.96 0.56 0.57 1.12 1.13 1.29 0.71

Multifamily residential real estate 0.14 0.00 0.07 0.30 0.15 0.44 0.49 1.80 0.53 0.12

Home equity loans 2.38 48.19 4.08 0.45 1.21 1.15 1.65 0.59 0.44 3.78

Other 1-4 family residential 2.33 0.99 2.63 0.84 1.34 3.24 1.25 1.42 1.13 3.39

Commercial and industrial loans 0.79 0.67 0.74 1.31 0.92 4.58 0.44 1.17 0.95 0.56

Loans to individuals 0.88 1.40 0.84 0.52 0.72 0.44 0.46 0.86 0.52 0.64

Credit card loans 1.27 1.44 1.09 0.28 1.13 0.69 1.19 0.85 0.98 1.09

Other loans to individuals 0.49 0.60 0.31 0.54 0.68 0.42 0.28 0.86 0.50 0.38

All other loans and leases (including farm) 0.24 0.77 0.10 1.18 0.33 0.20 0.18 0.74 0.53 0.20

Total loans and leases 1.06 1.33 1.05 1.12 0.80 2.59 0.64 1.23 1.02 1.34

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.01 0.22 -0.03 0.01 0.02 -0.01 0.51 0.04 0.03 0.01

Construction and development -0.04 0.00 0.00 -0.07 -0.04 -0.01 -0.06 0.19 0.05 -0.05

Nonfarm nonresidential 0.02 0.00 0.00 0.02 0.03 -0.02 0.64 0.00 -0.02 0.01

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

Home equity loans 0.07 83.73 0.11 -0.02 0.08 -0.26 0.21 -0.03 0.07 0.06

Other 1-4 family residential 0.01 0.04 -0.07 0.03 0.02 0.01 0.57 0.06 0.05 0.00

Commercial and industrial loans 0.28 2.37 0.21 0.32 0.27 0.05 0.68 -0.32 0.51 0.17

Loans to individuals 2.39 4.17 2.67 0.49 1.07 1.07 1.17 0.63 0.58 1.80

Credit card loans 3.88 4.27 3.56 2.06 4.15 2.58 2.99 1.39 1.73 3.31

Other loans to individuals 0.86 2.15 0.79 0.35 0.78 0.93 0.71 0.57 0.54 0.92

All other loans and leases (including farm) 0.13 4.20 0.10 0.29 0.13 0.17 0.03 0.74 0.20 0.13

Total loans and leases 0.49 4.02 0.53 0.13 0.17 0.02 0.97 0.10 0.13 0.37

Loans Outstanding (in billions)

All real estate loans $4,831.9 $0.6 $574.4 $121.2 $2,692.9 $191.0 $35.3 $7.9 $34.9 $1,173.6

Construction and development 346.9 0.0 16.6 7.1 261.3 6.0 0.5 0.7 2.2 52.5

Nonfarm nonresidential 1,421.6 0.0 51.6 33.1 1,046.0 16.9 2.5 2.6 7.9 260.9

Multifamily residential real estate 419.0 0.0 77.8 4.0 285.3 4.5 0.6 0.2 1.0 45.5

Home equity loans 389.0 0.0 49.2 2.4 198.5 10.9 4.3 0.3 1.3 122.3

Other 1-4 family residential 2,090.5 0.5 331.0 28.8 854.6 151.7 27.3 3.7 19.5 673.5

Commercial and industrial loans 2,077.3 43.3 343.1 22.7 988.0 5.9 7.3 1.4 4.0 661.6

Loans to individuals 1,658.2 447.3 273.7 6.6 341.3 4.2 107.4 1.3 4.0 472.4

Credit card loans 837.2 425.9 186.6 0.6 28.5 0.3 21.0 0.1 0.1 174.2

Other loans to individuals 821.0 21.4 87.2 6.0 312.8 3.9 86.5 1.2 3.9 298.2

All other loans and leases (including farm) 1,291.7 0.9 388.4 44.6 339.1 11.0 3.4 0.5 2.9 500.9

Total loans and leases (plus unearned income) 9,859.0 492.0 1,579.6 195.1 4,361.2 212.2 153.4 11.2 45.8 2,808.5

Memo: Other Real Estate Owned (in millions)

All other real estate owned 7,613.8 0.3 457.8 309.2 4,907.5 228.1 29.9 36.3 143.3 1,501.5

Construction and development 2,146.5 0.0 5.2 75.7 1,825.8 51.4 4.6 11.7 28.5 143.6

Nonfarm nonresidential 2,239.7 0.0 67.0 103.1 1,602.8 19.4 8.1 14.6 56.6 368.1

Multifamily residential real estate 108.7 0.0 0.0 9.7 84.1 11.3 0.1 0.0 0.6 3.0

1-4 family residential 2,918.4 0.3 366.6 51.5 1,292.6 142.9 17.0 9.5 53.5 984.5

Farmland 180.4 0.0 0.0 69.2 102.1 3.1 0.1 0.5 4.1 1.3

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

June 30, 2018 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.59 1.04 0.53 0.30 0.47 0.89 0.45 0.67 0.63 0.89 0.54 0.25

Construction and development 0.32 0.59 0.48 0.29 0.29 0.29 0.50 0.25 0.20 0.35 0.37 0.16

Nonfarm nonresidential 0.24 0.84 0.37 0.21 0.22 0.17 0.28 0.19 0.30 0.22 0.27 0.14

Multifamily residential real estate 0.09 0.70 0.19 0.07 0.11 0.06 0.14 0.06 0.06 0.18 0.08 0.04

Home equity loans 0.63 0.65 0.43 0.39 0.48 0.82 0.51 0.71 0.69 0.71 0.46 0.34

Other 1-4 family residential 0.98 1.43 0.78 0.45 0.79 1.32 0.70 1.12 0.94 1.46 1.06 0.39

Commercial and industrial loans 0.31 1.30 0.58 0.42 0.22 0.32 0.21 0.27 0.40 0.29 0.39 0.31

Loans to individuals 1.32 1.74 1.32 1.28 1.23 1.41 1.09 1.85 0.90 1.25 0.87 1.35

Credit card loans 1.23 4.69 2.00 2.93 1.33 1.05 1.11 1.38 1.03 1.09 0.67 1.60

Other loans to individuals 1.40 1.69 1.28 0.98 1.11 1.76 1.06 2.32 0.84 1.51 0.96 1.13

All other loans and leases (including farm) 0.20 0.57 0.60 0.26 0.15 0.19 0.09 0.11 0.26 0.24 0.19 0.31

Total loans and leases 0.60 1.05 0.58 0.37 0.55 0.71 0.49 0.73 0.55 0.70 0.51 0.53

Percent of Loans Noncurrent** 

All real estate loans 1.47 1.21 0.83 0.73 1.17 2.39 1.21 1.82 1.63 2.13 0.97 0.48

Construction and development 0.48 0.76 0.95 0.52 0.31 0.36 0.51 0.70 0.46 0.34 0.30 0.62

Nonfarm nonresidential 0.60 1.40 0.75 0.60 0.54 0.59 0.71 0.53 0.70 0.67 0.60 0.38

Multifamily residential real estate 0.14 0.80 0.35 0.15 0.12 0.09 0.15 0.18 0.14 0.13 0.22 0.05

Home equity loans 2.38 0.51 0.55 0.56 1.22 3.92 2.34 3.00 2.25 2.86 1.00 0.63

Other 1-4 family residential 2.33 1.22 0.88 1.12 2.07 3.23 1.94 2.74 2.37 3.35 1.90 0.56

Commercial and industrial loans 0.79 1.68 1.01 1.45 0.85 0.58 0.74 0.64 0.67 0.75 1.28 1.15

Loans to individuals 0.88 0.82 0.65 0.80 1.02 0.74 0.99 0.98 0.50 0.89 0.76 0.93

Credit card loans 1.27 2.16 1.48 2.94 1.38 1.08 1.24 1.27 1.06 1.15 1.16 1.62

Other loans to individuals 0.49 0.80 0.60 0.41 0.56 0.41 0.60 0.69 0.27 0.47 0.58 0.33

All other loans and leases (including farm) 0.24 1.11 0.89 0.46 0.31 0.13 0.30 0.16 0.16 0.28 0.29 0.37

Total loans and leases 1.06 1.23 0.85 0.83 0.98 1.24 0.99 1.16 1.05 1.30 0.96 0.70

Percent of Loans Charged-Off (net, YTD) 

All real estate loans 0.01 0.02 0.02 0.03 0.02 -0.01 0.04 0.02 0.00 0.00 0.01 -0.01

Construction and development -0.04 -0.06 -0.01 -0.05 -0.05 -0.05 0.00 -0.04 -0.01 -0.07 -0.02 -0.16

Nonfarm nonresidential 0.02 0.01 0.02 0.02 0.04 0.00 0.04 0.03 0.03 0.00 0.02 0.00

Multifamily residential real estate 0.00 -0.10 -0.01 -0.01 0.00 0.00 0.00 0.00 -0.01 0.01 0.00 -0.01

Home equity loans 0.07 0.02 0.04 0.05 0.07 0.08 0.12 0.08 0.09 0.02 0.00 -0.01

Other 1-4 family residential 0.01 0.04 0.03 0.08 0.03 -0.03 0.04 0.01 -0.02 0.01 0.02 0.00

Commercial and industrial loans 0.28 0.39 0.25 0.40 0.37 0.18 0.37 0.24 0.23 0.19 0.33 0.45

Loans to individuals 2.39 0.86 1.05 2.05 2.69 2.16 2.64 2.38 1.48 2.77 1.44 2.59

Credit card loans 3.88 17.39 6.50 7.88 4.11 3.45 3.62 3.98 3.70 3.67 2.72 4.70

Other loans to individuals 0.86 0.54 0.69 0.99 0.80 0.90 1.07 0.77 0.58 1.34 0.86 0.69

All other loans and leases (including farm) 0.13 0.19 0.20 0.20 0.11 0.13 0.11 0.12 0.16 0.12 0.09 0.17

Total loans and leases 0.49 0.14 0.10 0.22 0.71 0.44 0.61 0.55 0.25 0.51 0.21 0.72

Loans Outstanding (in billions) 

All real estate loans $4,831.9 $33.6 $596.3 $884.7 $1,663.3 $1,654.0 $994.4 $905.8 $1,005.6 $871.9 $471.3 $582.8

Construction and development 346.9 2.0 55.8 82.6 136.4 70.1 65.2 59.8 58.2 52.0 73.5 38.2

Nonfarm nonresidential 1,421.6 8.2 226.5 358.9 540.2 287.8 326.8 277.8 217.7 194.3 196.1 208.9

Multifamily residential real estate 419.0 0.9 32.7 98.7 165.4 121.2 150.7 42.2 108.5 35.7 20.5 61.3

Home equity loans 389.0 0.8 22.6 41.8 141.4 182.4 78.2 96.7 96.4 69.2 20.9 27.6

Other 1-4 family residential 2,090.5 15.3 207.3 279.6 661.8 926.5 368.9 415.6 500.8 428.4 142.2 234.6

Commercial and industrial loans 2,077.3 5.7 96.8 186.8 787.3 1,000.7 318.5 502.2 455.9 425.6 144.3 230.8

Loans to individuals 1,658.2 3.1 31.3 73.1 819.7 731.0 359.9 406.6 228.7 310.2 64.9 287.8

Credit card loans 837.2 0.1 1.9 11.2 460.7 363.3 219.4 203.9 67.2 192.9 19.8 134.0

Other loans to individuals 821.0 3.1 29.4 61.9 359.0 367.6 140.5 202.7 161.6 117.3 45.1 153.9

All other loans and leases (including farm) 1,291.7 6.6 48.1 63.7 391.1 782.2 198.6 265.3 315.9 355.9 55.7 100.4

Total loans and leases 

(plus unearned income) 9,859.0 49.0 772.4 1,208.3 3,661.4 4,167.9 1,871.4 2,079.9 2,006.1 1,963.6 736.2 1,201.9

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 7,613.8 202.9 2,283.7 1,710.7 1,829.1 1,587.5 1,380.8 1,788.9 1,408.0 1,287.0 1,335.0 414.2

Construction and development 2,146.5 50.7 974.3 622.7 352.6 146.2 238.2 575.9 257.1 378.3 535.4 161.6

Nonfarm nonresidential 2,239.7 61.1 778.7 573.7 534.7 291.5 405.2 493.1 418.5 339.5 478.8 104.7

Multifamily residential real estate 108.7 5.0 47.3 33.3 20.3 2.9 22.7 33.1 18.0 16.8 10.0 8.0

1-4 family residential 2,918.4 64.1 402.5 411.6 914.6 1,125.6 701.0 674.2 691.4 450.3 270.7 130.8

Farmland 180.4 22.0 81.0 69.4 6.8 1.3 13.7 12.6 22.9 82.2 40.2 8.9

* Regions:

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

U.S. Virgin Islands

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
2 0 1 8  •  Volume 1 2  • Number 3

12 FDIC QUARTERLY

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

2nd 

Quarter 

2018

1st 

Quarter 

2018

4th

Quarter 

2017

3rd

Quarter 

2017

2nd 

Quarter 

2017

% 

Change 

17Q2

18Q2

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,359 1,360 1,367 1,397 1,423 -4.5 44 759 429 118 9

Total assets of institutions reporting derivatives $15,926,402 $15,928,570 $15,815,208 $15,675,909 $15,459,961 3.0 $3,236 $325,748 $1,286,437 $5,630,349 $8,680,632

Total deposits of institutions reporting derivatives 12,187,330 12,247,546 12,133,179 11,947,224 11,796,323 3.3 2,704 268,929 1,018,035 4,315,385 6,582,278

Total derivatives 209,828,300 205,986,536 173,483,956 190,609,917 187,865,984 11.7 178 22,630 142,428 62,339,270 147,323,793

Derivative Contracts by Underlying Risk Exposure 

Interest rate 157,435,118 155,478,363 130,423,065 141,278,946 139,831,983 12.6 173 19,505 136,600 54,751,870 102,526,970

Foreign exchange* 43,280,045 41,064,224 34,422,180 39,707,400 38,856,459 11.4 0 0 4,331 7,037,368 36,238,346

Equity 3,420,624 3,466,899 3,079,607 3,055,705 2,908,473 17.6 0 0 190 173,155 3,247,279

Commodity & other (excluding credit derivatives) 1,510,765 1,631,020 1,372,891 1,477,532 1,334,384 13.2 0 0 18 95,176 1,415,571

Credit 4,178,619 4,345,494 4,186,122 5,090,240 4,934,591 -15.3 0 1 1,289 281,702 3,895,627

Total 209,816,738 205,976,797 173,477,230 190,601,362 187,856,881 11.7 40 11,277 142,358 62,339,270 147,323,793

Derivative Contracts by Transaction Type 

Swaps 107,957,920 105,094,180 94,523,862 101,820,942 103,004,241 4.8 17 6,724 79,913 29,430,295 78,440,970

Futures & forwards 46,024,430 45,497,597 34,407,162 40,132,650 39,846,961 15.5 13 2,094 33,818 11,294,511 34,693,994

Purchased options 23,883,350 23,840,759 19,163,376 20,398,592 19,127,368 24.9 0 275 13,247 10,076,250 13,793,579

Written options 25,142,037 24,973,515 19,677,317 20,908,669 18,608,635 35.1 10 2,183 13,934 10,930,742 14,195,168

Total 203,007,738 199,406,052 167,771,716 183,260,854 180,587,205 12.4 40 11,276 140,913 61,731,798 141,123,711

Fair Value of Derivative Contracts 

Interest rate contracts 49,616 51,494 49,032 52,123 68,960 -28.1 0 111 1,195 6,917 41,393

Foreign exchange contracts 23,843 27,846 10,372 13,938 -430 N/M 0 0 1 5,556 18,286

Equity contracts 5,006 6,582 -7,514 -5,742 -4,898 N/M 0 0 1 20 4,985

Commodity & other (excluding credit derivatives) 1,181 -867 -829 -1,390 -1,300 N/M 0 0 0 128 1,053

Credit derivatives as guarantor** 23,965 33,701 33,170 34,840 31,164 -23.1 0 -1 0 1,021 22,945

Credit derivatives as beneficiary** -24,348 -34,976 -34,547 -37,666 -31,788 N/M 0 0 -34 -1,134 -23,180

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 91,960,164 95,441,267 72,590,567 72,171,780 65,977,189 39.4 36 5,187 33,251 27,851,146 64,070,544

 1-5 years 42,279,176 40,334,549 36,154,531 43,431,393 48,374,437 -12.6 12 4,689 36,527 9,152,484 33,085,464

 > 5 years 24,373,707 23,687,625 23,565,841 27,041,460 29,634,366 -17.8 19 6,578 49,473 6,996,867 17,320,770

Foreign exchange and gold contracts < 1 year 31,341,488 29,696,500 24,379,652 28,385,819 27,411,021 14.3 0 5 2,724 5,071,690 26,267,068

 1-5 years 4,906,416 5,021,957 4,805,216 4,987,149 4,813,394 1.9 0 0 891 813,844 4,091,681

 > 5 years 2,472,893 2,630,013 2,525,329 2,574,435 2,496,193 -0.9 0 0 8 623,741 1,849,144

Equity contracts < 1 year 2,679,109 2,747,190 2,295,686 2,159,633 2,236,176 19.8 0 0 43 77,846 2,601,220

 1-5 years 867,817 843,259 732,909 780,834 730,676 18.8 0 0 65 51,797 815,954

 > 5 years 123,737 139,432 113,150 119,191 116,759 6.0 0 0 1 6,012 117,723

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 1,994,605 2,314,371 2,172,996 2,542,161 2,544,432 -21.6 0 2 24 59,314 1,935,264

 1-5 years 3,019,612 2,862,714 2,814,096 3,173,395 3,069,752 -1.6 0 5 254 185,512 2,833,841

 > 5 years 309,072 527,870 312,753 524,420 311,157 -0.7 0 23 363 32,132 276,554

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 24.5 24.8 23.3 24.2 24.6 0.1 0.8 1.3 14.2 37.6

Total potential future exposure to tier 1 capital (%) 39.6 41.9 38.5 45.1 46.9 0.1 0.4 0.8 19.6 63.5

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 64.1 66.7 61.9 69.3 71.4 0.2 1.2 2.1 33.8 101.0

Credit losses on derivatives  2.8 -1.1 11.4 1.2 9.9 -71.7 0.0 0.0 1.5 -0.6 1.9

HELD FOR TRADING 

Number of institutions reporting derivatives 196 198 200 200 205 -4.4 3 36 86 63 8

Total assets of institutions reporting derivatives 12,462,036 12,556,298 12,460,269 12,403,492 12,228,056 1.9 241 18,817 291,064 3,763,024 8,388,890

Total deposits of institutions reporting derivatives 9,500,260 9,620,609 9,538,277 9,421,994 9,306,454 2.1 216 15,516 229,366 2,920,877 6,334,285

Derivative Contracts by Underlying Risk Exposure 

Interest rate 155,241,882 153,262,602 128,177,040 138,893,663 137,316,308 13.1 4 710 32,313 54,196,843 101,012,011

Foreign exchange 40,144,539 38,353,254 32,402,215 36,960,571 36,002,239 11.5 0 0 3,797 6,682,214 33,458,529

Equity 3,402,588 3,450,109 3,063,576 3,040,023 2,893,124 17.6 0 0 37 159,836 3,242,715

Commodity & other 1,481,752 1,602,648 1,343,837 1,450,053 1,306,894 13.4 0 0 9 67,446 1,414,298

Total 200,270,761 196,668,613 164,986,668 180,344,309 177,518,566 12.8 4 710 36,156 61,106,338 139,127,552

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  255 2,648 2,229 2,917 4,521 -94.4 0 0 8 -1,879 2,127

Foreign exchange** 4,535 2,894 1,793 1,540 681 565.9 0 0 3 2,802 1,730

Equity** 1,486 1,865 989 1,183 1,122 32.4 0 0 7 -84 1,563

Commodity & other (including credit derivatives)** 594 789 13 754 314 89.2 0 0 1 -36 629

Total trading revenues** 6,871 8,197 5,024 6,394 6,637 3.5 0 0 19 804 6,048

Share of Revenue 

Trading revenues to gross revenues (%)** 4.5 5.6 3.6 4.6 4.8 0.0 0.0 0.5 1.8 5.8

Trading revenues to net operating revenues (%)** 16.6 21.4 31.3 19.9 20.5 0.0 0.0 2.0 6.8 21.2

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 758 758 783 801 821 -7.7 9 229 397 114 9

Total assets of institutions reporting derivatives 15,479,274 15,475,559 15,370,175 15,239,665 15,029,964 3.0 668 109,500 1,209,545 5,478,929 8,680,632

Total deposits of institutions reporting derivatives 11,827,656 11,881,099 11,775,231 11,593,669 11,445,122 3.3 569 90,913 957,598 4,196,299 6,582,278

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,184,804 2,206,558 2,239,391 2,376,823 2,506,666 -12.8 36 10,565 104,217 555,027 1,514,959

Foreign exchange 505,125 485,719 500,573 496,561 519,135 -2.7 0 0 378 29,384 475,362

Equity 18,036 16,790 16,031 15,682 15,349 17.5 0 0 153 13,318 4,564

Commodity & other 29,012 28,371 29,054 27,479 27,490 5.5 0 0 9 27,730 1,273

Total notional amount 2,736,977 2,737,439 2,785,049 2,916,545 3,068,640 -10.8 36 10,566 104,757 625,460 1,996,158

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

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

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

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

**** Credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and banks filing the FFIEC 041 report form that have $300 million or more in total assets, but is 

not applicaable to banks filing the FFIEC 051 form.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

2nd 

Quarter 

2018

1st 

Quarter

2018

4th 

Quarter

2017

3rd 

Quarter

2017

2nd 

Quarter

2017

% 

Change 

17Q2-

18Q2

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 64 65 67 66 68 -5.9 0 5 20 32 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $560,132 $571,205 $590,211 $606,755 $620,524 -9.7 $0 $805 $16,087 $85,783 $457,457

Home equity loans 16 18 20 21 22 -27.3 0 0 0 16 0

Credit card receivables 26 4,781 4,553 16,114 17,306 -99.8 0 0 0 0 26

Auto loans 4,647 8,221 9,770 10,494 11,566 -59.8 0 0 0 4,647 0

Other consumer loans 1,887 2,914 3,052 3,610 3,778 -50.1 0 0 0 845 1,042

Commercial and industrial loans 271 381 380 316 309 -12.3 0 0 0 0 271

All other loans, leases, and other assets 67,948 62,410 60,869 55,105 54,266 25.2 0 9 10,650 3,736 53,553

Total securitized and sold 581,566 649,931 668,855 692,414 707,771 -17.8 0 0 0 69,217 512,349

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,327 1,527 1,716 1,718 1,750 -24.2 0 0 29 924 373

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

Credit card receivables 0 392 353 1,405 1,508 -100.0 0 0 0 0 0

Auto loans 125 164 147 161 183 -31.7 0 0 0 125 0

Other consumer loans 82 88 86 87 96 -14.6 0 0 0 0 82

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

All other loans, leases, and other assets 1,266 1,194 1,131 908 874 44.9 0 0 171 0 1,095

Total credit exposure 2,565 3,365 3,431 4,279 4,410 -41.8 0 0 0 1,015 1,550

Total unused liquidity commitments provided to institution’s own 

securitizations 144 143 215 246 172 -16.3 0 0 0 19 125

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

1-4 family residential loans 3.5 3.2 4.7 4.3 3.4 0.0 2.6 1.6 3.0 3.7

Home equity loans 8.4 9.5 9.7 5.9 8.2 0.0 0.0 0.0 8.4 0.0

Credit card receivables 0.0 0.3 0.3 0.4 0.4 0.0 0.0 0.0 0.0 0.0

Auto loans 1.8 1.6 2.1 1.6 1.4 0.0 0.0 0.0 1.8 0.0

Other consumer loans 4.7 4.5 4.7 4.2 4.1 0.0 0.0 0.0 2.2 6.8

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

All other loans, leases, and other assets 0.3 0.3 0.5 0.7 1.3 0.0 0.0 0.5 0.8 0.3

Total loans, leases, and other assets 3.2 2.9 4.2 3.9 3.1 0.0 0.0 0.0 2.7 3.3

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

1-4 family residential loans 1.2 1.4 1.6 1.3 1.3 0.0 1.5 1.0 1.6 1.2

Home equity loans 42.6 44.1 45.7 47.1 47.4 0.0 0.0 0.0 42.6 0.0

Credit card receivables 0.0 0.2 0.2 0.3 0.3 0.0 0.0 0.0 0.0 0.0

Auto loans 0.4 0.3 0.4 0.3 0.3 0.0 0.0 0.0 0.4 0.0

Other consumer loans 6.0 4.3 4.6 4.2 4.0 0.0 0.0 0.0 1.7 9.5

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

All other loans, leases, and other assets 0.7 1.2 1.2 1.2 1.4 0.0 0.0 0.4 0.1 0.8

Total loans, leases, and other assets 1.2 1.4 1.5 1.2 1.3 0.0 0.0 0.0 1.2 1.2

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 11.4 4.9 11.7 8.7 5.9 0.0 0.0 0.0 11.4 0.0

Credit card receivables 3.8 0.3 1.2 1.2 0.8 0.0 0.0 0.0 0.0 3.8

Auto loans 0.6 0.4 1.2 0.8 0.5 0.0 0.0 0.0 0.6 0.0

Other consumer loans 0.6 0.3 1.5 1.0 0.6 0.0 0.0 0.0 0.4 0.7

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

All other loans, leases, and other assets 0.3 0.0 1.7 1.3 0.7 0.0 0.0 0.2 0.2 0.3

Total loans, leases, and other assets 0.0 -0.1 0.4 0.3 0.2 0.0 0.0 0.0 0.1 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 0 0

Credit card receivables 0 1,730 2,460 8,171 7,260 -100.0 0 0 0 0 0

Commercial and industrial loans 306 426 463 401 334 -8.4 0 0 0 0 306

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

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 475 463 509 511 534 -11.0 14 197 200 56 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 24,763 24,532 180,648 26,404 26,211 -5.5 161 5,237 11,113 6,219 2,033

All other loans, leases, and other assets 109,138 102,630 101,529 97,455 95,098 14.8 0 20 201 34,650 74,267

Total sold and not securitized 133,901 127,163 282,177 123,859 121,309 10.4 161 5,257 11,314 40,869 76,300

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 7,659 7,987 162,126 7,895 7,932 -3.4 41 753 3,452 2,502 910

All other loans, leases, and other assets 30,545 28,449 28,110 27,057 26,299 16.1 0 20 64 10,082 20,379

Total credit exposure 38,204 36,436 190,236 34,952 34,231 11.6 41 773 3,517 12,584 21,288

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 45 46 49 50 52 -13.5 1 11 15 12 6

Total credit exposure 26,570 29,676 32,237 34,334 34,998 -24.1 0 0 0 1,244 25,326

Total unused liquidity commitments 1,031 1,148 1,259 1,298 1,150 -10.3 0 0 0 323 708

Other

Assets serviced for others* 5,918,727 6,034,343 5,996,389 5,928,869 5,946,667 -0.5 4,608 183,993 307,947 1,353,138 4,069,041

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 16,069 15,554 16,909 16,618 16,698 -3.8 0 0 0 0 16,069

Unused liquidity commitments to conduits sponsored by institutions 

 and others 30,593 29,497 26,928 27,458 28,342 7.9 0 0 0 2,811 27,782

Net servicing income (for the quarter) 2,805 3,655 2,355 2,306 2,167 29.4 7 242 227 1,110 1,219

Net securitization income (for the quarter) -49 151 131 395 472 -110.4 0 1 3 -71 18

Total credit exposure to Tier 1 capital (%)** 3.7 4.2 13.9 4.5 4.6 0.0 0.0 0.0 0.0 2.2 6.5

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

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

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

COMMUNITY BANK PERFORMANCE

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

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

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

banks designated during the previous quarter.

Net Income Growth Reaches 21.1 Percent Annually on Higher Net Operating Revenue and Lower Effective Tax Rate

Loan and Lease Growth Remains Strong at 7 Percent Year Over Year

Net Interest Margin Expands 8 Basis Points to 3.69 Percent

Noncurrent and Net Charge-Off Rates Remain Low

Most Community Banks 

Report Increased Net 

Income Year Over Year

More than seven out of ten community banks (73 percent) reported higher net income 

compared with a year earlier. Reports from 5,111 insured community banks reflected net 

income of $6.5 billion—up $1.1 billion (21.1 percent) from second quarter 2017—as higher 

net operating revenue and lower income tax expenses offset an increase in noninterest 

expense.1 Absent the benefits of a lower corporate tax rate, estimated quarterly net income 

would have been $6.1 billion—up 15.4 percent from the $5.3 billion reported in second 

quarter 2017.2

The pretax return on assets rose from 1.33 percent to 1.41 percent between first and second 

quarter 2018 and was up 5 basis points since second quarter 2017. Loan-loss provisions 

declined by $193.5 million (22.5 percent), while noninterest expenses were $934.2 million 

(6.6 percent) higher.

Contributors to the Year-Over-Year Change in Income 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income NetInterest

Income

Loan Loss

Provisions NoninterestIncome NoninterestExpense RealizedGains on

Securities

Income

Taxes

Positive Factor Negative Factor

-0.5

0.0

0.5

1.0

1.5

2.0

$1.13 $1.56 -$0.19 $0.20 $0.93 -$0.07 -$0.33

+21% +9% -23% +4% +7% -70% -20%

Chart 1

Source: FDIC.

Quarterly Average Net Interest Margin

Percent 

Community Banks 

Industry

3.69%

3.38%

2.0

2.5

3.0

3.5

4.0

4.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 2

1 The number of insured community banks reflects one new community bank charter and no community bank failures during the 

second quarter.

2 This estimate of net income applies the average quarterly tax rate at community banks between fourth quarter 2011 and third 

quarter 2017 to income before taxes and discontinued operations. 
2 0 1 8  •  Volume 1 2  • Number 3

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions Change 2Q 2018 vs. 2Q 2017

Change 2Q 2018 vs. 1Q 2018

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

C&I

Loans

1–4 Family

Residential

RE

C&D

Loans

Agricultural

Production

Loans

CRE &

C&D

C&I

Loans

36.2

15.4

11.3

18.8

0.6

9.4 7.8 9.0

6.8 7.9

2.6 3.1 4.4

1.4

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Percent of Loan Portfolio Noncurrent

0

2

4

6

8

10

12

14

C&D Loans

Nonfarm Nonresidential RE

1–4 Family RE

C&I Loans 

Farm Loans

Home Equity

2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 4

Higher Net Interest Income 

Lifts Net Operating Revenue

Net operating revenue rose by $1.8 billion (8 percent) from second quarter 2017, led by 

increases in net interest income and noninterest income. More than four out of five community banks (84.9 percent) reported higher net interest income, which totaled $19 billion 

and increased by $1.6 billion (9 percent) from the year before. Growth in non 1–4 family 

real estate loan income (up $1.2 billion or 14.7 percent) contributed most to this increase.3

Increases in earning asset yields exceeded increases in funding costs, compared with the 

same period last year, causing an 8 basis point expansion in the average net interest margin 

(NIM) at community banks to 3.69 percent. This ratio was 35 basis points higher than that of 

noncommunity banks, although the distance between the two ratios continued to contract.

More Than Half of 

Community Banks Report 

Higher Noninterest Income

Noninterest income rose $201.9 million (4.5 percent) to $4.7 billion since second quarter 

2017, despite a $28 million (5.61 percent) decline in net gains on loan sales and sales of other 

assets. Community banks continue to report a much lower ratio of noninterest income as 

a percentage of average assets (0.86 percent) compared with that of noncommunity banks 

(1.65 percent). More than half of community banks (55.3 percent) reported higher noninterest income compared with second quarter 2017.

Noninterest Expense Up on 

Higher Payroll Expense as 

Assets Per Employee Rises

Higher salary and employee benefits of $589.1 million (up 7.3 percent) pushed noninterest expense up $934.2 million (6.6 percent) since second quarter 2017. Salary and employee 

benefit growth accompanied an increase in the number of full-time equivalent employees, 

which increased by 10,923 (2.7 percent) during the year ending second quarter 2018, while 

average assets per employee rose by 3.9 percent to $5.3 million.

3 Non 1–4 family real estate loans include construction and development, farmland, multifamily, and nonfarm nonresidential 

loans.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Community Bank Loan and 

Lease Growth Rate Outpaces 

That of the Industry

Loan and lease balances increased by $35.8 billion (2.3 percent) during the quarter to 

$1.6 trillion. Among the categories that led quarterly loan growth were nonfarm nonresidential loans, up $8.9 billion or 2 percent; 1-4 family residential real estate loans, up $7.9 billion 

or 2 percent; commercial and industrial (C&I) loans, up $6.8 billion or 3.4 percent; and 

construction and development (C&D) loans, up $2.6 billion or 2.4 percent.

Loan and lease balances rose by $103.2 billion (7 percent) in the past 12 months, exceeding 

the growth rate for noncommunity banks by more than 3 percentage points. Nearly eight out 

of ten community banks (79 percent) reported higher loan balances compared with second 

quarter 2017, and more than six out of ten community banks (60.5 percent) increased small 

loans to businesses. Community banks added $9 billion (3.1 percent) in small loans to businesses since second quarter 2017 to a collective total of $297 billion. This figure represents 

42 percent of the industry total.

More than seven out of ten community banks (78.5 percent) reported annual loan and lease 

growth. The following categories led annual loan growth: nonfarm nonresidential loans, 

up $36.2 billion or 8.4 percent; 1–4 family residential loans, up $18.8 billion or 4.9 percent; 

C&I loans, up $15.4 billion or 7.9 percent; C&D loans, up $11.3 billion or 11.6 percent; and 

multifamily residential loans, up $10.1 billion or 9.4 percent. Unused loan commitments 

of $303.3 billion were up $25.2 billion (9.1 percent) during the year ending second quarter 

2018. Commitments to lend against commercial real estate properties—including C&D 

properties—increased by $9.4 billion (11.4 percent) from a year earlier.

Noncurrent Loan Balances 

Shrink Despite Slight 

Increase in Noncurrent 

Farm Loans

Total noncurrent loan and lease balances declined by $229.7 million (1.7 percent) quarterly, supporting a 3 basis point decline in the noncurrent rate to 0.82 percent—29 basis 

points below that of noncommunity banks. As a result, six out of ten community banks 

(63.2 percent) reported a lower or unchanged noncurrent loan rate compared with the 

previous quarter. The noncurrent rate for all major loan categories declined compared with 

first quarter 2018; C&I loans showed the most improvement—as the noncurrent rate for 

this category decreased by 10 basis points during the quarter. The noncurrent rate for farm 

loans increased 6 basis points during the quarter to 1.15 percent because of increases in the 

noncurrent rates for farmland loans (up 10 basis points to 1.38 percent) and agricultural 

production loans (up 3 basis points to 0.82 percent).

Net Charge-Off Rates 

Remain Relatively Low

Community banks reported a 3 basis point decline in the net charge-off rate to 0.15 percent 

during the year ending second quarter 2018—a rate that remained well below that of 

noncommunity banks (0.54 percent). Despite an overall decline, the net charge-off rates 

for 1–4 family loans (up 6 basis points) and C&D loans (up 3 basis points) increased year 

over year.

Community Bank Equity 

Capital Up Since First 

Quarter

Equity capital totaled $248 billion, up $4.1 billion (1.7 percent) during the quarter. An 

increase in risk-weighted assets slightly outpaced the rate of capital formation during the 

quarter, causing a small decline in the tier 1 risk-based capital ratio (down 3 basis points to 

14.67 percent) and the total risk-based capital ratio (down 4 basis points to 15.72 percent). 

However, the leverage capital ratio increased 7 basis points to 10.97 percent.

Author:

Erica Jill Tholmer

Senior Financial Analyst

Division of Insurance and Research

(202) 898-3935
2 0 1 8  •  Volume 1 2  • Number 3

18 FDIC QUARTERLY

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

2018* 2017* 2017 2016 2015 2014 2013

Return on assets (%) 1.14 1.03 0.96 0.99 0.99 0.93 0.90

Return on equity (%) 10.26 9.23 8.65 8.81 8.85 8.45 8.27

Core capital (leverage) ratio (%) 10.97 10.82 10.80 10.69 10.67 10.57 10.43

Noncurrent assets plus other real estate owned to assets (%) 0.74 0.86 0.78 0.94 1.07 1.34 1.73

Net charge-offs to loans (%) 0.14 0.15 0.16 0.16 0.15 0.21 0.32

Asset growth rate (%) 0.70 2.78 1.17 2.97 2.71 2.21 0.39

Net interest margin (%) 3.66 3.58 3.62 3.57 3.57 3.61 3.59

Net operating income growth (%) 14.30 7.37 0.14 2.42 9.54 4.81 14.64

Number of institutions reporting 5,111 5,338 5,228 5,461 5,735 6,037 6,307

Percentage of unprofitable institutions (%) 3.89 4.33 5.74 4.65 5.02 6.44 8.40

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

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

(dollar figures in millions)  2nd Quarter

2018

1st Quarter

2018

2nd Quarter

2017

%Change 

17Q2-18Q2

Number of institutions reporting 5,111 5,170 5,338 -4.3

Total employees (full-time equivalent) 415,507 412,810 425,216 -2.3

CONDITION DATA

Total assets $2,221,502 $2,207,543 $2,206,024 0.7

Loans secured by real estate 1,216,862 1,199,955 1,185,836 2.6

 1-4 Family residential mortgages 400,062 394,746 396,680 0.9

 Nonfarm nonresidential 468,396 461,534 453,545 3.3

 Construction and development 108,623 106,251 102,498 6.0

 Home equity lines 48,773 48,596 49,596 -1.7

Commercial & industrial loans 210,271 205,409 205,864 2.1

Loans to individuals 62,699 61,526 60,779 3.2

 Credit cards 1,885 1,925 1,988 -5.2

Farm loans 52,103 48,602 51,397 1.4

Other loans & leases 39,711 38,169 40,442 -1.8

Less: Unearned income 701 702 696 0.7

Total loans & leases 1,580,945 1,552,960 1,543,622 2.4

Less: Reserve for losses 18,233 18,187 18,326 -0.5

Net loans and leases 1,562,712 1,534,773 1,525,296 2.5

Securities 402,667 406,458 423,934 -5.0

Other real estate owned 3,573 3,783 4,448 -19.7

Goodwill and other intangibles 15,200 14,185 14,432 5.3

All other assets 237,351 248,344 237,913 -0.2

Total liabilities and capital 2,221,502 2,207,543 2,206,024 0.7

Deposits 1,818,268 1,817,595 1,802,189 0.9

 Domestic office deposits 1,817,682 1,816,806 1,801,423 0.9

 Foreign office deposits 587 789 766 -23.4

 Brokered deposits 74,850 93,002 86,752 -13.7

Estimated insured deposits 1,335,036 1,339,087 1,339,266 -0.3

Other borrowed funds 138,438 129,042 139,055 -0.4

Subordinated debt 629 629 759 -17.2

All other liabilities 16,072 15,579 15,849 1.4

Total equity capital (includes minority interests) 248,095 244,698 248,172 0.0

 Bank equity capital 247,978 244,583 248,045 0.0

Loans and leases 30-89 days past due 7,437 8,970 7,309 1.8

Noncurrent loans and leases 12,913 13,198 14,464 -10.7

Restructured loans and leases 6,558 6,622 7,443 -11.9

Mortgage-backed securities 177,154 174,963 181,021 -2.1

Earning assets 2,072,207 2,062,765 2,056,176 0.8

FHLB Advances 115,387 106,697 112,725 2.4

Unused loan commitments 303,314 298,830 290,478 4.4

Trust assets 293,501 303,544 259,882 12.9

Assets securitized and sold 9,544 19,462 21,310 -55.2

Notional amount of derivatives 78,099 70,273 69,794 11.9

INCOME DATA First Half 2018 First Half 2017 %Change

2nd Quarter 

2018

2nd Quarter 

2017

%Change 

17Q2-18Q2

Total interest income $43,779 $41,133 6.4 $22,381 $20,995 6.6

Total interest expense 6,399 4,951 29.3 3,401 2,575 32.1

Net interest income 37,380 36,183 3.3 18,981 18,420 3.0

Provision for loan and lease losses 1,475 1,549 -4.8 666 876 -23.9

Total noninterest income 9,212 9,508 -3.1 4,715 4,844 -2.7

Total noninterest expense 30,017 29,753 0.9 15,126 15,026 0.7

Securities gains (losses) 91 228 -59.9 30 102 -70.8

Applicable income taxes 2,540 3,443 -26.2 1,314 1,746 -24.8

Extraordinary gains, net* -162 -1 N/M -163 -7 N/M

Total net income (includes minority interests) 12,490 11,172 11.8 6,457 5,711 13.1

 Bank net income 12,481 11,161 11.8 6,452 5,703 13.1

Net charge-offs 1,077 1,093 -1.4 587 695 -15.6

Cash dividends 5,291 5,103 3.7 2,903 2,541 14.3

Retained earnings 7,190 6,058 18.7 3,549 3,162 12.2

Net operating income 12,577 11,003 14.3 6,597 5,634 17.1

* See Notes to Users for explanation. N/M - Not Meaningful
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  2nd Quarter 

2018

1st Quarter 

2018

2nd Quarter

2017

%Change 

17Q2-18Q2

Number of institutions reporting 5,111 5,110 5,104 0.1

Total employees (full-time equivalent) 415,507 409,455 404,584 2.7

CONDITION DATA

Total assets $2,221,502 $2,198,222 $2,114,530 5.1

Loans secured by real estate 1,216,862 1,193,695 1,135,133 7.2

 1-4 Family residential mortgages 400,062 392,154 381,228 4.9

 Nonfarm nonresidential 468,396 459,413 432,226 8.4

 Construction and development 108,623 106,029 97,291 11.6

 Home equity lines 48,773 48,437 47,848 1.9

Commercial & industrial loans 210,271 203,451 194,838 7.9

Loans to individuals 62,699 61,487 59,850 4.8

 Credit cards 1,885 1,887 1,910 -1.3

Farm loans 52,103 49,035 51,505 1.2

Other loans & leases 39,711 38,204 37,058 7.2

Less: Unearned income 701 704 687 2.0

Total loans & leases 1,580,945 1,545,167 1,477,697 7.0

Less: Reserve for losses 18,233 18,120 17,702 3.0

Net loans and leases 1,562,712 1,527,047 1,459,995 7.0

Securities 402,667 405,948 408,549 -1.4

Other real estate owned 3,573 3,785 4,320 -17.3

Goodwill and other intangibles 15,200 14,372 12,888 17.9

All other assets 237,351 247,070 228,778 3.7

Total liabilities and capital 2,221,502 2,198,222 2,114,530 5.1

Deposits 1,818,268 1,811,164 1,733,087 4.9

 Domestic office deposits 1,817,682 1,810,375 1,732,640 4.9

 Foreign office deposits 587 789 447 31.2

 Brokered deposits 74,850 93,063 83,305 -10.1

Estimated insured deposits 1,335,036 1,331,919 1,292,104 3.3

Other borrowed funds 138,438 126,977 128,671 7.6

Subordinated debt 629 629 575 9.4

All other liabilities 16,072 15,470 15,031 6.9

Total equity capital (includes minority interests) 248,095 243,981 237,166 4.6

 Bank equity capital 247,978 243,867 237,059 4.6

Loans and leases 30-89 days past due 7,437 8,940 7,081 5.0

Noncurrent loans and leases 12,913 13,143 14,011 -7.8

Restructured loans and leases 6,558 6,594 7,254 -9.6

Mortgage-backed securities 177,154 175,419 172,770 2.5

Earning assets 2,072,207 2,053,971 1,971,330 5.1

FHLB Advances 115,387 104,360 104,028 10.9

Unused loan commitments 303,314 298,715 278,113 9.1

Trust assets 293,501 288,874 264,808 10.8

Assets securitized and sold 9,544 19,462 21,310 -55.2

Notional amount of derivatives 78,099 71,145 67,398 15.9

INCOME DATA First Half 2018 First Half 2017 %Change

2nd Quarter 

2018

2nd Quarter 

2017

%Change 

17Q2-18Q2

Total interest income $43,779 $38,823 12.8 $22,381 $19,829 12.9

Total interest expense 6,399 4,629 38.2 3,401 2,409 41.2

Net interest income 37,380 34,194 9.3 18,981 17,420 9.0

Provision for loan and lease losses 1,475 1,504 -1.9 666 860 -22.5

Total noninterest income 9,212 8,873 3.8 4,715 4,513 4.5

Total noninterest expense 30,017 28,095 6.8 15,126 14,191 6.6

Securities gains (losses) 91 224 -59.3 30 99 -69.9

Applicable income taxes 2,540 3,208 -20.8 1,314 1,643 -20.0

Extraordinary gains, net* -162 -1 N/M -163 -7 N/M

Total net income (includes minority interests) 12,490 10,482 19.2 6,457 5,332 21.1

 Bank net income 12,481 10,473 19.2 6,452 5,326 21.1

Net charge-offs 1,077 1,052 2.4 587 675 -13.1

Cash dividends 5,291 4,594 15.2 2,903 2,309 25.7

Retained earnings 7,190 5,880 22.3 3,549 3,017 17.6

Net operating income 12,577 10,315 21.9 6,597 5,257 25.5

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 8  •  Volume 1 2  • Number 3

20 FDIC QUARTERLY

TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks

Second Quarter 2018

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 5,111 585 591 1,127 1,359 1,130 319

Total employees (full-time equivalent) 415,507 86,763 46,283 86,904 71,955 90,794 32,808

CONDITION DATA

Total assets $2,221,502 $617,166 $219,474 $398,591 $362,015 $423,481 $200,775

Loans secured by real estate 1,216,862 386,896 121,777 208,905 177,098 210,465 111,722

 1-4 Family residential mortgages 400,062 141,360 39,712 71,456 53,126 67,108 27,300

 Nonfarm nonresidential 468,396 138,760 52,235 76,947 59,802 86,718 53,934

 Construction and development 108,623 25,380 13,701 15,378 15,603 29,282 9,278

 Home equity lines 48,773 16,395 6,354 10,558 5,418 5,007 5,040

Commercial & industrial loans 210,271 52,271 17,469 41,429 37,616 42,245 19,241

Loans to individuals 62,699 15,384 6,630 12,327 10,834 12,870 4,653

 Credit cards 1,885 422 117 364 558 224 200

Farm loans 52,103 609 1,396 8,386 29,068 9,648 2,997

Other loans & leases 39,711 11,874 2,808 7,289 6,760 7,507 3,473

Less: Unearned income 701 180 115 53 98 126 129

Total loans & leases 1,580,945 466,854 149,966 278,282 261,278 282,609 141,957

Less: Reserve for losses 18,233 4,615 1,714 3,209 3,455 3,449 1,791

Net loans and leases 1,562,712 462,239 148,252 275,073 257,822 279,160 140,165

Securities 402,667 95,105 40,094 77,243 66,629 89,193 34,402

Other real estate owned 3,573 623 815 604 575 774 182

Goodwill and other intangibles 15,200 5,067 1,277 2,785 2,168 2,686 1,215

All other assets 237,351 54,131 29,035 42,885 34,820 51,668 24,811

Total liabilities and capital 2,221,502 617,166 219,474 398,591 362,015 423,481 200,775

Deposits 1,818,268 485,539 184,692 328,242 298,578 354,712 166,505

 Domestic office deposits 1,817,682 485,026 184,692 328,195 298,578 354,712 166,478

 Foreign office deposits 587 513 0 47 0 0 27

 Brokered deposits 74,850 25,629 4,605 13,752 13,272 9,337 8,255

 Estimated insured deposits 1,335,036 343,720 135,852 259,025 231,526 254,383 110,529

Other borrowed funds 138,438 55,796 9,090 23,199 21,368 19,299 9,686

Subordinated debt 629 508 15 39 10 42 15

All other liabilities 16,072 5,741 1,441 2,676 2,072 2,499 1,642

Total equity capital (includes minority interests) 248,095 69,582 24,235 44,435 39,987 46,929 22,927

 Bank equity capital 247,978 69,512 24,231 44,415 39,986 46,907 22,927

Loans and leases 30-89 days past due 7,437 1,708 856 1,377 1,316 1,772 407

Noncurrent loans and leases 12,913 4,290 1,247 2,356 1,978 2,333 710

Restructured loans and leases 6,558 2,046 730 1,567 936 877 402

Mortgage-backed securities 177,154 54,222 17,104 30,702 22,980 35,112 17,034

Earning assets 2,072,207 578,350 202,867 371,434 338,289 392,816 188,452

FHLB Advances 115,387 50,156 7,350 18,634 16,199 15,782 7,267

Unused loan commitments 303,314 83,154 26,148 56,290 53,756 52,976 30,990

Trust assets 293,501 70,015 8,562 73,403 87,874 44,947 8,700

Assets securitized and sold 9,544 5,357 72 1,105 2,686 153 170

Notional amount of derivatives 78,099 36,246 5,742 15,410 10,320 7,502 2,879

INCOME DATA

Total interest income $22,381 $5,980 $2,246 $3,842 $3,732 $4,448 $2,133

Total interest expense 3,401 1,144 297 541 581 582 255

Net interest income 18,981 4,837 1,949 3,301 3,151 3,866 1,878

Provision for loan and lease losses 666 165 58 89 135 160 59

Total noninterest income 4,715 986 447 1,198 778 968 338

Total noninterest expense 15,126 3,748 1,633 2,897 2,440 3,047 1,361

Securities gains (losses) 30 33 -4 3 4 -5 -1

Applicable income taxes 1,314 430 116 251 169 184 163

Extraordinary gains, net** -163 0 0 -164 0 0 1

Total net income (includes minority interests) 6,457 1,514 585 1,100 1,189 1,437 632

 Bank net income 6,452 1,512 585 1,098 1,189 1,435 632

Net charge-offs 587 119 34 216 73 107 37

Cash dividends 2,903 482 276 670 600 607 269

Retained earnings 3,549 1,031 310 428 589 828 363

Net operating income 6,597 1,486 589 1,262 1,186 1,441 633

* See Table V-A for explanation.

** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Second Quarter 2018, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Second Quarter 2018, Geographic Regions*

 2nd Quarter 

2018

1st Quarter 

2018 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.35 4.23 4.18 4.49 4.17 4.43 4.55 4.55

Cost of funding earning assets 0.66 0.60 0.80 0.59 0.59 0.69 0.60 0.54

Net interest margin 3.69 3.64 3.38 3.89 3.58 3.74 3.95 4.01

Noninterest income to assets 0.86 0.83 0.65 0.83 1.21 0.86 0.92 0.68

Noninterest expense to assets 2.75 2.75 2.46 3.02 2.93 2.71 2.89 2.73

Loan and lease loss provision to assets 0.12 0.15 0.11 0.11 0.09 0.15 0.15 0.12

Net operating income to assets 1.20 1.10 0.97 1.09 1.28 1.32 1.37 1.27

Pretax return on assets 1.41 1.33 1.27 1.30 1.36 1.51 1.54 1.60

Return on assets 1.17 1.11 0.99 1.08 1.11 1.32 1.36 1.27

Return on equity 10.53 9.98 8.81 9.87 9.98 11.98 12.37 11.16

Net charge-offs to loans and leases 0.15 0.13 0.10 0.09 0.31 0.11 0.15 0.11

Loan and lease loss provision to net charge-offs 113.55 164.17 138.08 169.19 41.32 184.54 149.72 159.48

Efficiency ratio 63.52 64.82 64.06 67.86 64.02 61.72 62.79 61.15

Net interest income to operating revenue 80.10 80.43 83.06 81.34 73.37 80.20 79.98 84.74

% of unprofitable institutions 3.99 4.24 4.10 5.08 5.32 2.94 2.83 5.64

% of institutions with earnings gains 73.35 73.21 78.63 78.00 71.34 70.05 73.54 75.55

Table V-B. First Half 2018, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks First Half 2018, Geographic Regions*

First Half 2018 First Half 2017 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.29 4.07 4.12 4.42 4.14 4.35 4.47 4.50

Cost of funding earning assets 0.63 0.49 0.75 0.56 0.58 0.65 0.56 0.51

Net interest margin 3.66 3.58 3.36 3.86 3.57 3.70 3.91 3.99

Noninterest income to assets 0.84 0.88 0.64 0.82 1.19 0.84 0.90 0.67

Noninterest expense to assets 2.75 2.74 2.47 3.00 2.94 2.69 2.89 2.71

Loan and lease loss provision to assets 0.13 0.14 0.16 0.11 0.09 0.14 0.14 0.13

Net operating income to assets 1.15 1.01 0.90 1.06 1.22 1.28 1.33 1.26

Pretax return on assets 1.37 1.35 1.18 1.28 1.40 1.46 1.50 1.60

Return on assets 1.14 1.03 0.92 1.06 1.14 1.28 1.32 1.26

Return on equity 10.26 9.23 8.22 9.66 10.23 11.59 12.02 11.17

Net charge-offs to loans and leases 0.14 0.15 0.16 0.09 0.19 0.10 0.14 0.10

Loan and lease loss provision to net charge-offs 136.97 141.75 137.02 179.18 71.04 194.89 150.07 195.83

Efficiency ratio 64.12 64.81 64.85 68.08 64.80 62.43 63.48 60.93

Net interest income to operating revenue 80.23 79.19 83.12 81.31 73.68 80.44 80.06 84.81

% of unprofitable institutions 3.89 4.33 4.62 5.92 5.15 2.35 2.65 5.33

% of institutions with earnings gains 75.17 60.72 80.85 78.17 72.05 72.55 76.02 78.37

* See Table V-A for explanation.
2 0 1 8  •  Volume 1 2  • Number 3

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

June 30, 2018

Geographic Regions*

All Community Banks New York Atlanta Chicago Kansas City Dallas San Francisco

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.43 0.34 0.53 0.50 0.46 0.57 0.20

Construction and development 0.40 0.34 0.38 0.41 0.44 0.52 0.20

Nonfarm nonresidential 0.30 0.23 0.33 0.35 0.36 0.37 0.18

Multifamily residential real estate 0.11 0.06 0.26 0.19 0.29 0.09 0.02

Home equity loans 0.41 0.43 0.46 0.40 0.32 0.54 0.28

Other 1-4 family residential 0.67 0.54 0.88 0.75 0.61 0.90 0.27

Commercial and industrial loans 0.45 0.28 0.56 0.35 0.53 0.57 0.55

Loans to individuals 1.30 1.46 1.48 0.83 0.89 1.98 0.82

Credit card loans 2.13 2.61 1.08 1.19 3.35 1.16 1.18

Other loans to individuals 1.27 1.43 1.49 0.82 0.75 1.99 0.81

All other loans and leases (including farm) 0.48 0.23 0.35 0.51 0.56 0.45 0.53

Total loans and leases 0.47 0.37 0.57 0.49 0.50 0.63 0.29

Percent of Loans Noncurrent**

All loans secured by real estate 0.80 0.93 0.87 0.87 0.72 0.76 0.42

Construction and development 0.76 0.75 1.18 0.83 0.71 0.50 0.89

Nonfarm nonresidential 0.69 0.82 0.67 0.80 0.65 0.68 0.27

Multifamily residential real estate 0.20 0.18 0.27 0.31 0.20 0.31 0.03

Home equity loans 0.49 0.60 0.50 0.51 0.27 0.38 0.43

Other 1-4 family residential 1.05 1.36 1.07 1.01 0.61 0.96 0.58

Commercial and industrial loans 0.96 1.10 0.66 0.87 0.92 1.09 0.84

Loans to individuals 0.62 0.56 0.68 0.31 0.40 1.22 0.34

Credit card loans 1.25 2.11 0.52 0.99 1.29 0.48 1.06

Other loans to individuals 0.60 0.52 0.68 0.29 0.35 1.23 0.31

All other loans and leases (including farm) 0.78 0.36 0.58 0.89 0.87 0.73 1.05

Total loans and leases 0.82 0.92 0.83 0.85 0.76 0.83 0.50

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.03 0.03 0.01 0.11 0.02 0.02 -0.03

Construction and development -0.01 0.03 -0.02 -0.06 -0.06 0.03 -0.12

Nonfarm nonresidential 0.03 0.04 0.01 0.05 0.03 0.02 -0.01

Multifamily residential real estate -0.01 0.00 -0.02 -0.04 -0.01 0.02 0.00

Home equity loans 0.05 0.05 0.04 0.15 -0.01 0.04 -0.04

Other 1-4 family residential 0.07 0.04 0.03 0.25 0.03 0.02 -0.03

Commercial and industrial loans 0.43 0.86 0.36 0.17 0.19 0.49 0.19

Loans to individuals 1.19 0.92 0.80 1.58 1.10 1.01 2.27

Credit card loans 7.94 3.45 1.00 10.40 15.54 1.78 2.62

Other loans to individuals 0.97 0.85 0.80 1.29 0.29 0.99 2.26

All other loans and leases (including farm) 0.16 0.13 0.20 0.23 0.13 0.12 0.31

Total loans and leases 0.14 0.16 0.09 0.19 0.10 0.14 0.10

Loans Outstanding (in billions)

All loans secured by real estate $1,216.9 $386.9 $121.8 $208.9 $177.1 $210.5 $111.7

Construction and development 108.6 25.4 13.7 15.4 15.6 29.3 9.3

Nonfarm nonresidential 468.4 138.8 52.2 76.9 59.8 86.7 53.9

Multifamily residential real estate 117.0 62.5 5.4 17.5 10.4 8.6 12.7

Home equity loans 48.8 16.4 6.4 10.6 5.4 5.0 5.0

Other 1-4 family residential 400.1 141.4 39.7 71.5 53.1 67.1 27.3

Commercial and industrial loans 210.3 52.3 17.5 41.4 37.6 42.2 19.2

Loans to individuals 62.7 15.4 6.6 12.3 10.8 12.9 4.7

Credit card loans 1.9 0.4 0.1 0.4 0.6 0.2 0.2

Other loans to individuals 60.8 15.0 6.5 12.0 10.3 12.6 4.5

All other loans and leases (including farm) 91.8 12.5 4.2 15.7 35.8 17.2 6.5

Total loans and leases 1,581.6 467.0 150.1 278.3 261.4 282.7 142.1

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 303,314 83,154 26,148 56,290 53,756 52,976 30,990

Construction and development: 1-4 family residential 25,908 5,457 3,397 3,267 3,462 7,407 2,918

Construction and development: CRE and other 64,432 20,426 6,140 10,695 8,540 12,980 5,652

Commercial and industrial 95,075 25,962 6,966 19,410 16,276 16,468 9,994

* See Table V-A for explanation.

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

FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $2.5 Billion

DIF Reserve Ratio Rises 3 Basis Points to 1.33 Percent

The Deposit Insurance Fund (DIF) balance increased by $2.5 billion, to $97.6 billion, 

during the second quarter. Assessment income of $2.6 billion, which includes temporary 

assessment surcharges on large banks, drove the fund balance increase. Interest on investments of $381 million, a negative provision for insurance losses of $141 million, and other 

miscellaneous income of $3 million also added to the fund balance. Operating expenses of 

$445 million and unrealized losses on available-for-sale securities of $162 million partly 

offset the increase in the fund balance.

The deposit insurance assessment base—average consolidated total assets minus average 

tangible equity—increased by 0.3 percent in the second quarter and by 2.8 percent over 

12 months.1,2 Total estimated insured deposits increased by 0.3 percent in the second quarter of 2018 and by 4.5 percent year over year. The DIF’s reserve ratio (the fund balance as 

a percent of estimated insured deposits) was 1.33 percent on June 30, up from 1.30 percent at 

March 31, 2018, and 1.24 percent on June 30 of last year. The June 30, 2018, reserve ratio of 

1.33 percent is the highest since March 31, 2004, when the reserve ratio was also 1.33 percent.3

By law, the reserve ratio must reach a minimum of 1.35 percent by September 30, 2020. The 

law also requires that, in setting assessments, the FDIC offset the effect of the increase in the 

reserve ratio from 1.15 percent to 1.35 percent on banks with less than $10 billion in assets. 

To satisfy these requirements, large banks are subject to a temporary surcharge of 4.5 basis 

points of their assessment base, after making certain adjustments.45 Surcharges began in the 

third quarter of 2016 and will continue through the quarter in which the reserve ratio first 

meets or exceeds 1.35 percent. If, however, the reserve ratio has not reached 1.35 percent by 

the end of 2018, large banks will pay a shortfall assessment in early 2019 to close the gap.

Small banks will receive credits to offset the portion of their assessments that help to raise 

the reserve ratio from 1.15 percent to 1.35 percent. When the reserve ratio is at or above 

1.38 percent, the FDIC will automatically apply a small bank’s credits to reduce its regular 

assessment up to the entire amount of the assessment.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

1 There are additional adjustments to the assessment base for banker’s banks and custodial banks.

2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

3 The reserve ratio for March 31, 2004, represents the combined balances of the Bank Insurance Fund and Savings Association 

Insurance Fund as a percent of estimated insured deposits.

4 Large banks are generally those with assets of $10 billion or more.

5 The assessment base for the surcharge is a large bank’s regular assessment base reduced by $10 billion (and subject to additional 

adjustment for affiliated banks).
2 0 1 8  •  Volume 1 2  • Number 3

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.07 1.09 1.11 1.13 1.17 1.18 1.20 1.20 1.24 1.28 1.30 1.30 1.33

6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 3/18 6/18

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

2nd 

Quarter 

2018

1st 

Quarter 

2018

4th 

Quarter 

2017

3rd 

Quarter 

2017

2nd 

Quarter 

2017

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd 

Quarter 

2016

1st 

Quarter 

2016

4th 

Quarter 

2015

3rd 

Quarter 

2015

2nd 

Quarter 

2015

Beginning Fund Balance $95,072 $92,747 $90,506 $87,588 $84,928 $83,162 $80,704 $77,910 $75,120 $72,600 $70,115 $67,589 $65,296

Changes in Fund Balance:

Assessments earned 2,598 2,850 2,656 2,568 2,634 2,737 2,688 2,643 2,328 2,328 2,160 2,170 2,328

Interest earned on 

investment securities 381 338 305 274 251 227 189 171 164 147 128 122 113

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 445 433 443 404 450 442 437 422 441 415 447 410 434

Provision for insurance 

losses -141 -65 -203 -512 -233 765 -332 -566 -627 -43 -930 -578 -317

All other income, 

net of expenses 3 1 3 1 4 2 3 3 2 5 12 2 3

Unrealized gain/(loss) on 

available-for-sale 

securities** -162 -496 -481 -33 -12 7 -317 -167 110 412 -298 64 -34

Total fund balance change 2,516 2,325 2,242 2,918 2,660 1,766 2,457 2,794 2,790 2,520 2,485 2,526 2,293

Ending Fund Balance 97,588 95,072 92,747 90,506 87,588 84,928 83,162 80,704 77,910 75,120 72,600 70,115 67,589

Percent change from 

 four quarters earlier 11.42 11.95 11.53 12.14 12.42 13.06 14.55 15.10 15.27 15.05 15.64 29.08 32.37

Reserve Ratio (%) 1.33 1.30 1.30 1.28 1.24 1.20 1.20 1.18 1.17 1.13 1.11 1.09 1.07

Estimated Insured 

Deposits 7,358,053 7,334,746 7,150,781 7,094,247 7,042,281 7,075,301 6,910,937 6,813,258 6,672,294 6,659,996 6,519,715 6,406,678 6,333,620

Percent change from 

 four quarters earlier 4.48 3.67 3.47 4.12 5.55 6.24 6.00 6.35 5.35 5.15 5.23 4.61 3.91

Domestic Deposits 12,280,939 12,305,835 12,129,503 11,966,478 11,827,933 11,856,691 11,693,371 11,506,877 11,242,960 11,156,523 10,952,922 10,698,306 10,632,635

Percent change from 

 four quarters earlier 3.83 3.79 3.73 3.99 5.20 6.28 6.76 7.56 5.74 5.06 5.21 4.75 5.28

Assessment Base*** 15,111,840 15,067,636 15,001,495 14,834,520 14,703,227 14,621,071 14,563,563 14,383,166 14,194,203 13,994,619 13,833,140 13,662,743 13,589,490

Percent change from 

 four quarters earlier 2.78 3.05 3.01 3.14 3.59 4.48 5.28 5.27 4.45 3.41 3.65 4.19 5.33

Number of Institutions 

Reporting 5,551 5,616 5,679 5,747 5,796 5,865 5,922 5,989 6,067 6,131 6,191 6,279 6,357

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

6/15 $67,589 $6,333,620

9/15 70,115 6,406,678

12/15 72,600 6,519,715

3/16 75,120 6,659,996

6/16 77,910 6,672,294

9/16 80,704 6,813,258

12/16 83,162 6,910,937

3/17 84,928 7,075,301

6/17 87,588 7,042,281

9/17 90,506 7,094,247

12/17 92,747 7,150,781

3/18 95,072 7,334,746

6/18 97,588 7,358,053

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2018  2017** ** 2017 2016 2015 2014 2013 2012

Problem Institutions

Number of institutions 82 105 95 123 183 291 467 651

Total assets $54,378 $17,168 $13,939 $27,624 $46,780 $86,712 $152,687 $232,701

Failed Institutions

Number of institutions 0 6 8 5 8 18 24 51

Total assets***** $0 $4,882 $5,082 $277 $6,706 $2,914 $6,044 $11,617

* Quarterly financial statement results are unaudited.

** Includes unrealized postretirement benefit gain (loss).

*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

  Through June 30.

** *** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

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

(dollar figures in millions)

June 30, 2018

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 4,833 $16,366,715 $11,310,604 $6,573,691

 FDIC-Supervised 3,219 2,526,405 2,004,793 1,375,315

 OCC-Supervised 851 11,100,443 7,396,603 4,150,057

 Federal Reserve-Supervised 763 2,739,867 1,909,208 1,048,319

FDIC-Insured Savings Institutions 709 1,166,133 924,834 747,790

 OCC-Supervised 320 728,240 593,586 486,964

 FDIC-Supervised 350 407,380 307,133 241,283

 Federal Reserve-Supervised 39 30,513 24,115 19,543

Total Commercial Banks and Savings Institutions 5,542 17,532,848 12,235,438 7,321,481

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 82,785 45,501 36,572

Total FDIC-Insured Institutions 5,551 17,615,634 12,280,939 7,358,053

* Excludes $1.2 trillion in foreign office deposits, which are not FDIC insured.

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

Quarter Ending March 31, 2018 (dollar figures in billions)

Annual Rate in Basis Points*

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base**

Percent of Total 

Assessment Base

1.50 - 3.00 3,398 60.51 $3,091.4 20.52

3.01 - 6.00 1,498 26.67 11,055.7 73.37

6.01 - 10.00 558 9.94 770.9 5.12

10.01 - 15.00 62 1.10 114.6 0.76

15.01 - 20.00 85 1.51 15.4 0.10

20.01 - 25.00 8 0.14 1.0 0.01

> 25.00 7 0.12 18.7 0.12

* Assessment rates do not incorporate temporary surcharges on large banks.

** 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.
2 0 1 8  •  Volume 1 2  • Number 3

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call Report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered 

community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), 

problem institutions, failed institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository insti1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

tutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions 

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports (TFR) submitted 

by all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

which is the sum of the individual numerator values divided by the 

sum of individual denominator values. All asset and liability figures 

used in calculating performance ratios represent average amounts for 

the period (beginning-of-period amount plus end-of-period amount 

plus any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

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

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

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

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup. When community 

bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions 

that were subsequently merged into current community banks.

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

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

and liabilities located outside of the reporting institution’s home 

state. In addition, institutions may relocate across state lines or 

change their charters, resulting in an inter-regional or inter-industry 

migration; institutions can move their home offices between regions, 

savings institutions can convert to commercial banks, or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Financial accounting pronouncements by the Financial Accounting 

Standards Board (FASB) can result in changes in an individual 

bank’s accounting policies and in the Call Reports they submit. Such 

accounting changes can affect the aggregate amounts presented in the 

QBP for the current period and the period-to-period comparability of 

such financial data. 

The current quarter’s Financial Institution Letter (FIL) and related 

Call Report supplemental instructions can provide additional explanation to the QBP reader beyond any material accounting changes 

discussed in the QBP analysis. 

https://www.fdic.gov/news/news/financial/2018/fil18039.html

https://www.fdic.gov/news/news/financial/2018/fil18039.pdf

https://www.fdic.gov/regulations/resources/call/call.html

Further information on changes in financial statement presentation, 

income recognition and disclosure is available from the FASB. http://

www.fasb.org/jsp/FASB/Page/LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of deposits in banks’ domestic offices with certain 

adjustments.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 
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28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity Tier 1 capital ratio – ratio of common equity 

Tier 1 capital to risk-weighted assets. Common equity Tier 1 capital 

includes common stock instruments and related surplus, retained 

earnings, accumulated other comprehensive income (AOCI), and 

limited amounts of common equity Tier 1 minority interest, minus 

applicable regulatory adjustments and deductions. Items that are fully 

deducted from common equity Tier 1 capital include goodwill, other 

intangible assets (excluding mortgage servicing assets) and certain 

deferred tax assets; items that are subject to limits in common equity 

Tier 1 capital include mortgage servicing assets, eligible deferred tax 

assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative plus an additional amount for potential future credit exposure 

based on the notional amount, the remaining maturity and type of 

the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified future 

date, a specific quantity of an underlying variable or index at a 

specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, 

as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning 

March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Beginning September 30, 2009, insured deposits include deposits in 

accounts of $100,000 to $250,000 that are covered by a temporary 

increase in the FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and Consumer 

Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. 

Also, the Dodd-Frank Act amended the Federal Deposit Insurance 

Act to include noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing transaction accounts were fully insured, without 

limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on the 

balance sheet—including trading assets and liabilities, available-forsale securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 

of fair values. During periods of market stress, the fair values of some 

financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC-insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships, and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, 

less subsequent quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other loans 

secured by real estate.

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed from 

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions that 

actually filed a financial report.

New reporters – insured institutions filing quarterly financial reports 

for the first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that filed a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“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.
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30 FDIC QUARTERLY

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet 

items multiplied by risk-weights that range from zero to 200 percent. 

A conversion factor is used to assign a balance sheet equivalent 

amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity” 

(reported at amortized cost (book value)), securities designated as 

“available-for-sale” (reported at fair (market) value), and equity 

securities with readily determinable fair values not held for trading.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for 

income taxes. Thrift Financial Report (TFR) filers also include gains 

(losses) on the sales of assets held for sale. (TFR filers began filing 

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

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have been 

securitized, except an interest that is a form of recourse or other 

seller-provided credit enhancement. Seller’s interests differ from 

the securities issued to investors by the securitization structure. The 

principal amount of a seller’s interest is generally equal to the total 

principal amount of the pool of assets included in the securitization 

structure less the principal amount of those assets attributable to 

investors, i.e., in the form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending Fund 

(SBLF) was enacted into law in September 2010 as part of the Small 

Business Jobs Act of 2010 to encourage lending to small businesses 

by providing capital to qualified community institutions with assets 

of less than $10 billion. The SBLF Program is administered by the 

U.S. Treasury Department (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.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal income 

tax purposes. It is generally not subject to any federal income taxes at 

the corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings.

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the assets 

of the financial institution.

Unearned income and contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured 

by commercial real estate, and unused commitments to originate 

or purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.