FDIC Quarterly 1 2010, Volume 4, No. 2

Quarterly Banking Profile First Quarter 2010

Earnings Post Significant Increase

First quarter results for insured commercial banks and 

savings institutions contained positive signs of recovery 

for the industry. While new accounting rules had a major 

effect on several components of the industry’s balance 

sheet and income statement, there was clear improvement in certain performance indicators.1

 Lower provisions for loan losses and reduced expenses for goodwill 

impairment lifted the earnings of FDIC-insured commercial banks and savings institutions to $18.0 billion. 

While still low by historical standards, first quarter earnings represented a significant improvement from the $5.6 

billion the industry earned in first quarter 2009 and are 

the highest quarterly total since first quarter 2008. The 

largest year-over-year increases occurred at the biggest 

banks, but a majority of institutions (52.2 percent) 

reported net income growth. This is the highest percentage of institutions reporting increased quarterly earnings 

in more than three years (since third quarter 2006).

1

 FASB Statements 166 and 167. See Notes to Users.

New Accounting Rules Affect Reported Cash Flows

Implementation of FAS 166 and 167 caused a large 

amount of loans in securitized loan pools to be consolidated into the reported loan balances of a relatively 

small number of large insured institutions in the first 

quarter. As a result, the interest income, interest 

expense, and charge-offs associated with these balances 

also were included in first quarter financial reports, and 

the inclusion of the loan balances triggered changes to 

capital and reserves, as well. Net interest income 

totaled $109.1 billion in the first quarter, a $9.7 billion 

(9.7 percent) increase from first quarter 2009. Most of 

this increase reflected the application of the new 

accounting rules. It was somewhat offset by a $2.1 

billion (99.4 percent) year-over-year decline in income 

from securitization activities and a $1.1 billion (18.5 

percent) drop in servicing income that were also largely 

a result of the new rules. Application of the accounting 

changes had no significant effect on the year-over-year 

increase in the industry’s reported net income; lower 

provisions for loan losses and reduced expenses for 

■ Industry Net Income Improves to a Two-Year High of $18 Billion

■ Loss Provisions Decline but Remain above $50 Billion

■ Asset Quality Deterioration Continues to Moderate

■ New Accounting Rules Cause Sharp Increase in Reported Loan Balances

■ Number of Insured Institutions Falls below 8,000

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income

Billions of Dollars

-40

-30

-20

-10

0

10

20

30

40

50

60

1234123412341234 1

Securities and Other Gains/Losses, Net

Net Operating Income

36.9 38.0 38.0 35.3 35.6 36.8

28.7

0.5

19.3

4.7 0.9

-37.8

5.6

-4.4

2006 2007 2008 2009

2.0

-1.3

2010

18.0

Chart 1 Chart 2

Percentage of Insured Institutions with Earnings Gains

Percent of Institutions with Year-over-Year Increases in Quarterly Net Income

0

10

20

30

40

50

60

70

1234123412341234123 4 1

2005 2006 2007 2008 2009 2010
FDIC Quarterly 2 2010, Volume 4, No. 2

Chart 4

Quarterly Net Interest Margins

Percent

3.84

3.73

2.5

3.0

3.5

4.0

4.5

1 234123412341234123 4 1

2005 2006 2007 2008 2009 2010

Assets < $1 Billion

Assets > $1 Billion

goodwill impairment were the main sources of the 

improvement in industry earnings.

Reduced Loan-Loss Provisions Help Drive 

Earnings Improvement

Insured institutions set aside $51.3 billion in provisions 

for loan and lease losses in the first quarter, a $10.2 

billion (16.6 percent) decline from a year earlier. 

However, only about one-third of insured institutions 

reported year-over-year declines in loss provisions, with 

much of the overall reduction concentrated among a 

few of the largest banks. Another positive factor in the 

earnings improvement at larger institutions was a $2.2 

billion (2.3 percent) decline in noninterest expenses 

that was caused by lower goodwill impairment losses. 

Total noninterest income was $6.6 billion (9.7 percent) 

lower than a year earlier because of the declines in securitization and servicing income and a $1.5 billion (15.1 

percent) reduction in trading revenue. The average 

return on assets (ROA) rose to 0.54 percent, compared 

to 0.16 percent in first quarter 2009. This is the highest 

quarterly ROA for the industry since first quarter 2008. 

Almost half of all institutions—48.1 percent—reported 

improved ROAs.

Rise in Average Margin Reflects Impact of 

New Rules

The sharp increase in net interest income caused by 

adoption of the new accounting rules significantly 

boosted the industry’s net interest margin (NIM). The 

average margin increased to a seven-year high of 3.83 

percent, from 3.53 percent in fourth quarter 2009 and 

3.41 percent in first quarter 2009. Most of the improvement occurred at a few large credit card lenders; only 

40.7 percent of institutions reported higher NIMs 

compared to the fourth quarter, although 57.8 percent 

reported year-over-year improvement.

C&I Charge-Offs Decline for First Time in Four Years

Loan losses posted a year-over-year increase for a 13th 

consecutive quarter. Net charge-offs totaled $52.4 

billion, an increase of $14.5 billion (38.4 percent) from a 

year earlier. Credit cards accounted for almost threequarters ($10.4 billion) of the growth in charge-offs, 

reflecting the securitized receivables brought back onto 

balance sheets by the new accounting rules. Charge-offs 

were up from a year ago in most major loan categories, 

although the increases were smaller than in recent quarters. Most non-consumer loan categories were not 

affected by the new accounting rules. A notable exception to the rising trend was loans to commercial and 

industrial (C&I) borrowers, where charge-offs fell for the 

first time since first quarter 2006, declining by $675 

million (10.2 percent). Net charge-offs of real estate 

loans secured by nonfarm nonresidential real estate properties increased by $1.6 billion (155.5 percent). Chargeoffs of residential mortgage loans were $1.6 billion (22.9 

percent) higher than a year earlier, while charged-off 

home equity loans rose by $1.2 billion (29.9 percent).

Chart 3

Major Factors Contributing to the

Year-over-Year Change in Quarterly Earnings

Billions of Dollars

$10.2

$6.6

$9.7

$3.1

$2.2

Positive Factors

Negative Factors

Increase in

Income Taxes

Increase in Net

Interest Income

Decrease in

Noninterest Expense 

Decrease in

Noninterest

Income 

Decrease in Loan

Loss Provisions 

0

5

10

15

20

25
FDIC Quarterly 3 2010, Volume 4, No. 2

Quarterly Banking Profile

caused the industry’s “coverage ratio” of reserves to 

noncurrent loans and leases to increase for the first time 

in 16 quarters, from 58.3 percent to 64.2 percent, even 

though slightly fewer than half of all insured institutions (49.2 percent) improved their coverage ratios 

during the quarter.

Internal Capital Generation Turns Positive for 

First Time in Two Years

Total equity capital increased by $15.1 billion (1.0 

percent) in the first quarter. The increase would have 

been larger, but institutions reported almost $22 billion 

in reductions in equity capital stemming from the application of FAS 167. More than three-quarters of all 

institutions (76.6 percent) increased their equity capital 

by a combined total of $30 billion during the quarter, 

but these increases were partially offset by the accounting-related equity declines noted above. Retained earnings were positive for the first time since first quarter 

2008, as net income exceeded dividends by $13.6 

billion. Insured institutions paid $4.4 billion in dividends in the first quarter, down $2.9 billion (39.4 

percent) from a year earlier.

Accounting Change Lifts Reported Total Assets

Industry assets increased for the first time since fourth 

quarter 2008, and total loan and lease balances rose for 

the first time since second quarter 2008, but only 

because of the new accounting rules. Total assets 

reported by insured institutions were $248.6 billion (1.9 

percent) higher than at the end of 2009, but this was 

entirely due to a $294.9 billion (69.9 percent) increase 

Increase in Noncurrent Loans Is Smallest in 

Three Years

The amount of loans and leases that were noncurrent 

(90 days or more past due or in nonaccrual status) 

increased for a 16th consecutive quarter, rising by $17.4 

billion (4.4 percent) from the level at the end of 2009. 

This is the smallest quarterly increase in noncurrent 

loans since third quarter 2007, and all of the increase 

consisted of loans and leases 90 days or more past due. 

Loans and leases in nonaccrual status fell for the first 

time in four years, declining by $65 million. Noncurrent credit card loans increased during the quarter by 

$7.6 billion (51.9 percent), reflecting the inclusion of 

securitized credit card receivables. Noncurrent residential mortgage loans rose by $12.9 billion (7.2 percent), 

and noncurrent nonfarm nonresidential real estate 

loans increased by $3.7 billion (8.8 percent). In 

contrast, noncurrent C&I loans declined by $5.1 billion 

(12.2 percent), and noncurrent real estate construction 

and development loans fell by $1.8 billion (2.5 

percent). It was the second consecutive quarterly 

decline in noncurrent levels for both loan categories.

New Accounting Rules Require Higher Reserves at 

Some Institutions

Total reserves for loan losses of insured institutions 

increased by $34.5 billion (15.1 percent) during the 

first quarter, even though net charge-offs exceeded loss 

provisions by $1.2 billion. The large jump in reported 

reserves was associated with the requirements of FASB 

166 and 167, as affected institutions converted equity 

capital directly into reserves. The increased reserves 

Chart 5

Quarterly Net Charge-offs and Change in

Noncurrent Loans, 2007–2010

Billions of Dollars

-10

10

30

50

70

90

110

123412341234 1

Quarterly Change in Noncurrent Loans

Quarterly Net Charge-offs

2007 2008 2009 2010

Chart 6

Quarterly Change in Loan Balances,

First Quarter 2010

Billions of Dollars

$295

$28

-$29

-$2

-$33 -$40

-100

-50

0

50

100

150

200

250

300

350

Credit

Cards

Other

Consumer

Loans

Residential

Mortgage

Loans

Home

Equity

Lines of

Credit

C&I

Loans

Other

Loans &

Leases
FDIC Quarterly 4 2010, Volume 4, No. 2

Secured Borrowings Register Sharp Increase

A substantial amount of short-term secured borrowings 

accompanied securitized loans onto bank balance sheets 

in the first quarter. Total deposits fell for the first time 

in a year, declining by $28.6 billion (0.3 percent). 

Nondeposit liabilities increased by $262.9 billion (10.9 

percent). Federal Home Loan Bank advances fell for a 

sixth consecutive quarter, declining by $52.9 billion 

(9.9 percent), while other nondeposit borrowings 

increased by $294.3 billion (52.8 percent).

“Problem List” Continues to Grow

The number of institutions reporting quarterly financial results declined by 80 in the first quarter, from 

8,012 to 7,932. Forty-one FDIC-insured institutions 

failed during the quarter, while 37 institutions were 

merged into other charters. Only three new charters 

were added during the quarter, and all three were charters formed to acquire failed banks. The number of 

insured commercial banks and savings institutions on 

the FDIC’s “Problem List” increased from 702 to 775 

during the quarter, and total assets of “problem” institutions increased from $403 billion to $431 billion.

Author: Ross Waldrop, Sr. Banking Analyst

Division of Insurance and Research

(202) 898-3951

in credit card loans caused by the consolidation of more 

than $300 billion in securitized credit card receivables 

into reported loan balances at the end of the first quarter. Other consumer loan balances increased by $28.0 

billion, also reflecting similar consolidations of securitized loan pools into reported loan balances, but all 

other major loan categories registered net declines 

during the quarter. C&I loan balances fell by $33.1 

billion (2.7 percent), real estate construction and development loans declined by $33.1 billion (7.3 percent), 

and residential mortgage loans declined by $28.9 billion 

(1.5 percent). Real estate loans secured by nonfarm 

nonresidential real estate properties declined for the 

first time since third quarter 1992, falling by $891 

million (0.1 percent). In addition to the declines in 

most major loan categories, banks reduced their holdings of mortgage-backed securities by $8.9 billion (0.6 

percent). Institutions increased their portfolios of U.S. 

Treasury securities by $54.4 billion (53.0 percent) and 

their balances with Federal Reserve banks by $23.6 

billion (4.1 percent).

Securitized Consumer Loans Return to Balance Sheets

The increase in loan balances was mirrored by declines 

in loans securitized and sold. Securitized credit card 

receivables declined by $347.4 billion (95.6 percent) 

during the quarter, while securitized other consumer 

loans fell by $25.7 billion (80.5 percent), and securitized home equity lines of credit dropped by $5.8 billion 

(97.2 percent). In all, securitized assets posted a $403.1 

billion (22.2 percent) decline in the first quarter.

Chart 7

Quarterly Change in Loan Balances

Securitized and Sold, First Quarter 2010

Billions of Dollars

-$347

-$19 -$15 -$6 -$4 -$6

-400

-350

-300

-250

-200

-150

-100

-50

0

Credit

Cards

Other

Consumer

Loans

Residential

Mortgage

Loans

Home

Equity

Lines of

Credit

C&I

Loans

Other

Loans &

Leases

Chart 8

Number of FDIC-Insured “Problem” Institutions,

2006–2010

Number of Institutions

48 50 47 50 53 61 65 76 90 117

171

252

305

416

552

702

775

0

100

200

300

400

500

600

700

800

900

123412341234123 4 1

2006 2007 2008 2009 2010
FDIC Quarterly 5 2010, Volume 4, No. 2

Quarterly Banking Profile

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2010** 2009** 2009 2008 2007 2006 2005

Return on assets (%)������������������������������������������������������������������������������������������������������ 0.54 0.16 0.08 0.03 0.81 1.

Return on equity (%)������������������������������������������������������������������������������������������������������� 4.96 1.66 0.74 0.35 7.75 12.3

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 8.57 8.02 8.63 7.47 7.97 8.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 3.43 2.40 3.33 1.91 0.95 0.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 2.84 1.94 2.50 1.29 0.59 0.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� -1.34 1.26 -5.30 6.19 9.88 9.

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.83 3.41 3.47 3.16 3.29 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 230.35 -72.79 54.79 -90.68 -27.59 8.5

Number of institutions reporting������������������������������������������������������������������������������������� 7,932 8,247 8,012 8,305 8,534 8,680 8,833

Commercial banks��������������������������������������������������������������������������������������������������� 6,772 7,038 6,839 7,086 7,283 7,401 7,526

Savings institutions ������������������������������������������������������������������������������������������������� 1,160 1,209 1,173 1,219 1,251 1,279 1,307

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 18.67 22.31 30.45 24.86 12.09 7.

Number of problem institutions �������������������������������������������������������������������������������������� 775 305 702 252 76 50 52

Assets of problem institutions (in billions) ��������������������������������������������������������������������� $431 $220 $403 $159 $22 $8 $7

Number of failed institutions������������������������������������������������������������������������������������������� 41 21 140 25 3 0 0

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

* Excludes insured branches of foreign banks (IBAs)

** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 3

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

(dollar figures in millions) 1st Quarter

2010

4th Quarter

2009

1st Quarter

2009

%Change 

09Q1-10Q1

Number of institutions reporting������������������������������������������������������������������������������������� 7,932 8,012 8,247 -3.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 2,027,141 2,063,107 2,114,901 -4.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $13,356,625 $13,107,980 $13,538,166 -1.

Loans secured by real estate���������������������������������������������������������������������������������� 4,400,501 4,462,931 4,701,123 -6.

 1-4 family residential mortgages ��������������������������������������������������������������������� 1,887,370 1,916,253 2,045,744 -7.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 1,090,417 1,091,308 1,077,150 1.

 Construction and development 417,972 451,080 566,680 -26.

 Home equity lines��������������������������������������������������������������������������������������������� 659,603 661,429 674,238 -2.

Commercial & industrial loans �������������������������������������������������������������������������������� 1,187,609 1,220,672 1,432,211 -17.

Loans to individuals������������������������������������������������������������������������������������������������� 1,380,686 1,060,226 1,046,281 32.

 Credit cards ������������������������������������������������������������������������������������������������������ 716,995 422,092 403,071 77.

Farm loans��������������������������������������������������������������������������������������������������������������� 55,598 59,581 56,137 -1.

Other loans & leases����������������������������������������������������������������������������������������������� 480,932 482,524 500,602 -3.

Less: Unearned income ������������������������������������������������������������������������������������������ 2,710 3,765 2,481 9.

Total loans & leases ������������������������������������������������������������������������������������������������ 7,502,616 7,282,168 7,733,872 -3.

Less: Reserve for losses����������������������������������������������������������������������������������������� 262,875 228,348 194,321 35.

Net loans and leases����������������������������������������������������������������������������������������������� 7,239,742 7,053,820 7,539,551 -4.

Securities����������������������������������������������������������������������������������������������������������������� 2,531,562 2,500,459 2,206,200 14.

Other real estate owned������������������������������������������������������������������������������������������ 46,263 41,226 29,689 55.

Goodwill and other intangibles ������������������������������������������������������������������������������� 424,849 428,338 415,133 2.

All other assets�������������������������������������������������������������������������������������������������������� 3,114,209 3,084,137 3,347,594 -7.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 13,356,625 13,107,980 13,538,166 -1.

Deposits������������������������������������������������������������������������������������������������������������������� 9,198,191 9,226,795 8,953,914 2.

 Domestic office deposits���������������������������������������������������������������������������������� 7,691,747 7,696,820 7,538,993 2.

 Foreign office deposits������������������������������������������������������������������������������������� 1,506,444 1,529,974 1,414,921 6.

Other borrowed funds ��������������������������������������������������������������������������������������������� 2,051,797 1,782,222 2,417,120 -15.

Subordinated debt��������������������������������������������������������������������������������������������������� 150,540 156,989 170,929 -11.

All other liabilities ���������������������������������������������������������������������������������������������������� 476,073 476,254 606,739 -21.

Total equity capital (includes minority interests)���������������������������������������������������� 1,480,025 1,465,719 1,389,463 6.

 Bank equity capital������������������������������������������������������������������������������������������� 1,460,356 1,445,210 1,371,742 6.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 144,109 140,249 158,741 -9.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 409,279 391,898 291,904 40.

Restructured loans and leases �������������������������������������������������������������������������������������� 63,995 58,114 32,906 94.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 1,386,426 1,395,280 1,313,451 5.

Earning assets���������������������������������������������������������������������������������������������������������������� 11,552,854 11,267,422 11,587,244 -0.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 480,333 533,211 703,715 -31.

Unused loan commitments��������������������������������������������������������������������������������������������� 6,105,396 5,963,073 6,617,851 -7.

Trust assets��������������������������������������������������������������������������������������������������������������������� 18,096,616 18,622,040 15,786,613 14.

Assets securitized and sold***��������������������������������������������������������������������������������������� 1,414,197 1,817,280 1,881,015 -24.

Notional amount of derivatives***���������������������������������������������������������������������������������� 218,074,225 213,563,342 206,742,719 5.

INCOME DATA

Full Year 

2009

Full Year

 2008 %Change

1st Quarter 

2010

1st Quarter 

2009

%Change 

09Q1-10Q1

Total interest income ������������������������������������������������������������������� $541,155 $603,300 -10.3 $138,407 $142,437 -2

Total interest expense ����������������������������������������������������������������� 145,487 245,576 -40.8 29,280 42,975 -31

Net interest income �������������������������������������������������������������� 395,668 357,724 10.6 109,128 99,461 9

Provision for loan and lease losses �������������������������������������������� 249,151 176,217 41.4 51,264 61,444 -16

Total noninterest income������������������������������������������������������������� 260,403 207,711 25.4 61,591 68,229 -9

Total noninterest expense ����������������������������������������������������������� 384,868 368,313 4.5 95,288 97,514 -2

Securities gains (losses)������������������������������������������������������������� -1,607 -15,440 N/M 1,603 1,644 -2.

Applicable income taxes ������������������������������������������������������������� 5,619 6,294 -10.7 7,624 4,531 68

Extraordinary gains, net�������������������������������������������������������������� -3,787 5,360 N/M 58 -31 N/M

Total net income (includes minority interests)��������������������� 11,040 N/A N/A 18,203 5,813 213.

 Bank net income������������������������������������������������������������ 10,239 4,532 125.9 18,010 5,550 224

Net charge-offs���������������������������������������������������������������������������� 187,424 100,365 86.7 52,434 37,896 38

Cash dividends ���������������������������������������������������������������������������� 47,183 51,089 -7.7 4,386 7,242 -39

Retained earnings ����������������������������������������������������������������������� -36,944 -46,557 N/M 13,624 -1,692 N/M

Net operating income����������������������������������������������������������� 14,760 9,536 54.8 16,927 5,124 230

*** Call Report filers only. N/A - Data Not Available; N/M - Not Meaningf
FDIC Quarterly 6 2010, Volume 4, No. 2

TABLE III-A. First Quarter 2010, All FDIC-Insured Institutions

Asset Concentration Groups*

First Qu

(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����������������������� 7,932 21 4 1,553 4,355 745 75 304 813 62

Commercial banks������������������������������������� 6,772 17 4 1,548 3,890 189 59 276 742 47

Savings institutions ����������������������������������� 1,160 4 0 5 465 556 16 28 71 15

Total assets (in billions)������������������������������������ $13,356.6 $745.3 $3,157.3 $181.1 $4,498.0 $777.2 $94.7 $40.6 $126.

Commercial banks������������������������������������� 12,086.5 722.4 3,157.3 180.4 4,016.4 191.2 49.1 35.7 106

Savings institutions ����������������������������������� 1,270.1 22.9 0.0 0.7 481.6 586.1 45.6 4.9 

Total deposits (in billions)��������������������������������� 9,198.2 269.2 2,010.3 148.8 3,430.6 512.3 78.6 30.9 105

Commercial banks������������������������������������� 8,294.0 255.8 2,010.3 148.2 3,101.0 89.9 38.3 27.6 89

Savings institutions ����������������������������������� 904.2 13.4 0.0 0.6 329.6 422.4 40.3 3.3

Bank net income (in millions) ��������������������������� 18,010 1,071 5,842 438 2,084 1,525 331 121 276 6,321

Commercial banks������������������������������������� 15,841 857 5,842 436 1,644 811 245 72 251 5,683

Savings institutions ����������������������������������� 2,169 214 0 2 440 714 86 49 25 638

Performance Ratios (%

Yield on earning assets������������������������������������ 4.86 15.94 3.54 5.26 4.91 4.58 5.99 3.76

Cost of funding earning assets ������������������������ 1.03 1.82 0.72 1.40 1.22 1.50 1.41 1.04

Net interest margin������������������������������������ 3.83 14.12 2.82 3.87 3.68 3.08 4.58 2.72

Noninterest income to assets��������������������������� 1.86 3.06 2.19 0.59 1.31 0.78 1.96 7.15

Noninterest expense to assets������������������������� 2.88 4.59 2.84 2.63 2.93 1.75 2.66 7.74

Loan and lease loss provision to assets���������� 1.55 9.31 0.86 0.41 1.39 0.74 1.43 0.18

Net operating income to assets ����������������������� 0.51 0.65 0.67 0.94 0.15 0.75 1.43 1.20

Pretax return on assets ������������������������������������ 0.78 1.03 0.98 1.12 0.28 1.20 2.22 1.67

Return on assets����������������������������������������������� 0.54 0.68 0.75 0.97 0.19 0.79 1.43 1.20

Return on equity ����������������������������������������������� 4.96 3.48 8.52 8.71 1.74 8.21 13.49 7.05

Net charge-offs to loans and leases���������������� 2.84 14.26 2.50 0.44 1.88 1.15 2.69 0.54

Loan and lease loss provision to 

net charge-offs ������������������������������������������ 97.77 82.78 98.22 145.20 108.27 107.13 68.40 132.13 122

Efficiency ratio �������������������������������������������������� 54.39 28.70 61.29 63.12 62.84 47.53 41.62 80.21 6

% of unprofitable institutions���������������������������� 18.67 19.05 0.00 7.28 25.81 13.56 13.33 16.45

% of institutions with earnings gains���������������� 52.23 85.71 75.00 49.45 53.32 56.11 72.00 42.11 4

Condition Ratios (%

Earning assets to total assets �������������������������� 86.50 86.33 84.88 91.60 88.45 93.16 94.38 89.43 9

Loss allowance to: ��������������������������������������������

Loans and leases �������������������������������������� 3.50 10.29 4.18 1.55 2.61 1.49 2.98 1.77

Noncurrent loans and leases �������������������� 64.23 330.14 59.55 78.41 53.83 32.46 194.25 86.89 6

Noncurrent assets plus

other real estate owned to assets������������� 3.43 2.67 2.64 1.66 4.00 3.14 1.27 0.69

Equity capital ratio�������������������������������������������� 10.93 15.83 8.77 11.24 10.77 9.76 10.54 16.96 1

Core capital (leverage) ratio����������������������������� 8.57 10.35 7.09 10.12 8.91 9.14 10.22 15.18 

Tier 1 risk-based capital ratio��������������������������� 12.09 12.45 11.81 14.11 11.43 19.12 13.70 34.20 1

Total risk-based capital ratio ���������������������������� 14.74 15.30 14.95 15.24 13.66 20.14 15.46 35.09 1

Net loans and leases to deposits��������������������� 78.71 213.46 53.01 76.69 86.97 89.24 89.28 31.80 6

Net loans to total assets����������������������������������� 54.20 77.10 33.75 63.00 66.33 58.83 74.03 24.17 5

Domestic deposits to total assets �������������������� 57.59 32.87 30.52 82.16 74.52 65.83 81.85 73.89 8

Structural Change

New charters ��������������������������������������������� 3 0 0 0 2 0 0 0 0 1

Institutions absorbed by mergers ������������� 37 0 0 4 28 0 0 0 1 4

Failed institutions �������������������������������������� 41 0 0 1 37 2 0 1 0 0

PRIOR FIRST 

(The way it was...)

Number of institutions ����������������������������� 2009 8,247 25 5 1,524 4,680 838 80 305 745 45

������������������������������������� 2007 8,649 26 4 1,617 4,719 798 115 403 906 61

������������������������������������� 2005 8,931 28 5 1,698 4,489 971 134 459 1,079 68

Total assets (in billions)��������������������������� 2009 $13,538.2 $476.0 $3,203.0 $165.4 $6,002.1 $1,100.9 $73.2 $36.2 $103.

������������������������������������� 2007 11,982.3 407.2 2,435.7 149.0 4,757.4 1,507.4 99.4 45.7 119

������������������������������������� 2005 10,286.4 363.7 1,875.5 135.1 3,466.7 1,582.0 110.9 54.5 137

Return on assets (%)������������������������������� 2009 0.16 -1.36 0.61 0.73 -0.18 0.54 0.08 0.30

������������������������������������� 2007 1.20 3.84 0.93 1.19 1.14 0.91 1.77 2.03

������������������������������������� 2005 1.34 3.22 0.92 1.28 1.32 1.20 1.52 1.52

Net charge-offs to loans & leases (%) ���� 2009 1.94 8.57 2.42 0.52 1.45 1.05 2.56 0.43

������������������������������������� 2007 0.45 3.86 0.57 0.14 0.23 0.21 1.43 0.18

������������������������������������� 2005 0.47 4.39 0.76 0.13 0.22 0.10 1.49 0.22

Noncurrent assets plus 

OREO to assets (%) ������������������������� 2009 2.40 2.56 2.00 1.48 2.82 3.04 0.99 0.62

������������������������������������� 2007 0.57 1.32 0.41 0.78 0.62 0.67 0.55 0.18

������������������������������������� 2005 0.50 1.26 0.54 0.71 0.49 0.41 0.52 0.30

Equity capital ratio (%)����������������������������� 2009 10.13 23.55 8.44 11.05 10.26 8.92 9.25 16.24 

������������������������������������� 2007 10.58 24.50 7.67 10.87 11.32 10.15 10.25 20.27 

������������������������������������� 2005 10.26 21.96 8.17 10.78 9.95 10.83 11.10 17.09 

* See Table IV-A (page 8) for explanations
FDIC Quarterly 7 2010, Volume 4, No. 2

Quarterly Banking Profile

TABLE III-A. First Quarter 2010, All FDIC-Insured Institutions

Asset Size Distribution Geographic Region

FIRST QU

(The way it is...)

All Insured 

Institutions

Less than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San

Francisco

Number of institutions reporting����������������������������� 7,932 2,778 4,474 575 105 976 1,103 1,636 1,868 1,654 695

Commercial banks������������������������������������������� 6,772 2,469 3,780 440 83 512 977 1,346 1,769 1,535 633

Savings institutions ����������������������������������������� 1,160 309 694 135 22 464 126 290 99 119 62

Total assets (in billions)������������������������������������������ $13,356.6 $155.4 $1,339.6 $1,478.2 $10,383.4 $2,692.2 $2,989.1 $2,977.9 $1,664.4 $786

Commercial banks������������������������������������������� 12,086.5 138.7 1,098.1 1,136.3 9,713.4 1,998.6 2,864.8 2,848.1 1,612.9 69

Savings institutions ����������������������������������������� 1,270.1 16.7 241.5 342.0 669.9 693.6 124.4 129.7 51.6

Total deposits (in billions)��������������������������������������� 9,198.2 130.3 1,099.7 1,118.2 6,850.0 1,743.7 2,112.3 2,016.0 1,196.7 61

Commercial banks������������������������������������������� 8,294.0 117.2 911.3 859.1 6,406.5 1,262.8 2,020.5 1,919.7 1,157.6 54

Savings institutions ����������������������������������������� 904.2 13.1 188.3 259.1 443.6 480.9 91.8 96.2 39.2

Net income (in millions)������������������������������������������ 18,010 198 1,427 758 15,626 3,663 2,373 3,605 2,723 1,498 4,149

Commercial banks������������������������������������������� 15,841 155 1,185 310 14,192 2,721 2,278 3,722 2,627 1,287 3,206

Savings institutions ����������������������������������������� 2,169 44 242 448 1,435 942 94 -116 96 211 942

Performance Ratios (%

Yield on earning assets������������������������������������������ 4.86 5.28 5.22 5.02 4.77 5.66 4.55 3.93 5.9

Cost of funding earning assets ������������������������������ 1.03 1.41 1.50 1.38 0.90 1.25 0.98 0.86 0.9

Net interest margin������������������������������������������ 3.83 3.87 3.72 3.63 3.87 4.41 3.57 3.07 5.0

Noninterest income to assets��������������������������������� 1.86 1.27 0.89 1.23 2.09 1.72 1.81 2.02 2.3

Noninterest expense to assets������������������������������� 2.88 3.72 3.10 2.82 2.85 2.80 2.73 3.03 3.4

Loan and lease loss provision to assets���������������� 1.55 0.46 0.69 1.33 1.71 1.90 1.64 1.13 2.2

Net operating income to assets ����������������������������� 0.51 0.47 0.38 0.15 0.58 0.54 0.31 0.41 0.6

Pretax return on assets ������������������������������������������ 0.78 0.66 0.56 0.44 0.85 0.85 0.46 0.63 0.9

Return on assets����������������������������������������������������� 0.54 0.51 0.43 0.21 0.61 0.56 0.32 0.49 0.6

Return on equity ����������������������������������������������������� 4.96 4.28 4.27 1.90 5.48 4.31 2.83 5.69 5.7

Net charge-offs to loans and leases���������������������� 2.84 0.61 0.86 1.75 3.40 4.09 2.73 2.35 3.2

Loan and lease loss provision to net charge-offs�� 97.77 123.16 118.78 116.18 95.12 83.83 105.03 99.29 103.30 10

Efficiency ratio �������������������������������������������������������� 54.39 77.43 71.94 60.54 51.52 48.82 55.79 63.69 48.61 

% of unprofitable institutions���������������������������������� 18.67 19.76 17.30 22.96 24.76 15.37 34.90 16.26 12.85 

% of institutions with earnings gains���������������������� 52.23 49.32 53.20 56.87 62.86 64.86 49.14 47.25 51.71 

Condition Ratios (%

Earning assets to total assets ��������������������������������� 86.50 91.10 91.47 90.49 85.22 86.76 83.89 86.71 87.23 

Loss allowance to:

Loans and leases ��������������������������������������������� 3.50 1.64 1.81 2.33 4.01 4.09 3.33 3.38 3.7

Noncurrent loans and leases ��������������������������� 64.23 62.01 49.56 50.77 67.50 101.26 50.96 56.40 60.66 

Noncurrent assets plus

other real estate owned to assets�������������������� 3.43 2.31 3.37 3.69 3.42 2.44 4.16 3.22 4.7

Equity capital ratio��������������������������������������������������� 10.93 11.99 10.07 10.87 11.04 12.59 11.29 8.56 11.52 

Core capital (leverage) ratio ����������������������������������� 8.57 11.54 9.53 9.47 8.26 9.39 7.93 7.09 8.9

Tier 1 risk-based capital ratio���������������������������������� 12.09 17.57 13.52 13.52 11.62 13.36 11.03 10.50 11.03 

Total risk-based capital ratio ����������������������������������� 14.74 18.67 14.74 14.92 14.66 15.72 14.21 13.82 13.60 

Net loans and leases to deposits���������������������������� 78.71 71.87 80.09 84.00 77.75 84.15 77.48 68.50 93.88 

Net loans to total assets ����������������������������������������� 54.20 60.24 65.74 63.54 51.29 54.50 54.76 46.37 67.50 

Domestic deposits to total assets ��������������������������� 57.59 83.81 81.98 75.17 51.55 57.60 62.71 52.46 66.78 

Structural Change

New charters ��������������������������������������������������� 3 0 1 2 0 0 2 0 0 1 0

Institutions absorbed by mergers ������������������� 37 17 17 2 1 4 4 4 9 6 10

Failed institutions �������������������������������������������� 41 11 22 8 0 3 14 4 5 3 12

PRIOR FIRST Q

(The way it was...)

Number of institutions ����������������������������������� 2009 8,247 3,052 4,504 576 115 1,005 1,172 1,692 1,924 1,690 764

��������������������������������������������2007 8,649 3,597 4,397 536 119 1,087 1,222 1,818 2,007 1,742 773

��������������������������������������������2005 8,931 4,053 4,285 480 113 1,118 1,220 1,932 2,089 1,824 748

Total assets (in billions)��������������������������������� 2009 $13,538.2 $167.2 $1,359.5 $1,512.5 $10,498.9 $2,517.7 $3,520.2 $3,176.6 $1,064.7 $909

��������������������������������������������2007 11,982.3 189.6 1,298.2 1,420.9 9,073.6 2,204.0 2,948.8 2,778.8 863.4 66

��������������������������������������������2005 10,286.4 210.1 1,207.8 1,324.5 7,544.1 2,843.6 2,274.0 2,423.0 762.9 61

Return on assets (%)������������������������������������� 2009 0.16 0.25 0.27 -0.24 0.20 0.06 0.16 0.12 0.56

��������������������������������������������2007 1.20 0.85 1.08 1.14 1.23 1.12 1.22 1.07 1.7

��������������������������������������������2005 1.34 1.04 1.21 1.34 1.36 1.31 1.44 1.01 1.6

Net charge-offs to loans & leases (%) ���������� 2009 1.94 0.57 0.76 1.43 2.26 2.23 1.76 1.63 2.1

��������������������������������������������2007 0.45 0.15 0.13 0.25 0.55 0.81 0.22 0.31 0.6

��������������������������������������������2005 0.47 0.12 0.15 0.27 0.57 0.71 0.22 0.32 0.5

Noncurrent assets plus 

OREO to assets (%) ������������������������������� 2009 2.40 1.87 2.53 2.98 2.31 1.53 2.56 2.43 2.7

��������������������������������������������2007 0.57 0.77 0.67 0.58 0.55 0.56 0.36 0.60 1.0

��������������������������������������������2005 0.50 0.74 0.54 0.48 0.49 0.52 0.32 0.51 0.7

Equity capital ratio (%)����������������������������������� 2009 10.13 12.66 9.96 10.56 10.05 12.13 10.19 8.37 9.90

��������������������������������������������2007 10.58 13.24 10.50 11.24 10.43 12.72 10.04 9.13 10.57 

��������������������������������������������2005 10.26 11.85 10.08 10.74 10.16 11.29 8.49 9.24 10.55 

* See Table IV-A (page 9) for explanations
FDIC Quarterly 8 2010, Volume 4, No. 2

TABLE IV-A. Full Year 2009, All FDIC-Insured Institutions

Asset Concentration Groups*

Full 

(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����������������������������������������� 8,012 22 4 1,568 4,452 767 82 289 772 56

Commercial banks������������������������������������������������������� 6,839 18 4 1,563 3,974 203 66 258 708 45

Savings institutions ����������������������������������������������������� 1,173 4 0 5 478 564 16 31 64 11

Total assets (in billions)������������������������������������������������������ $13,108.0 $521.9 $3,107.1 $182.0 $4,547.3 $810.5 $96.2 $38.0 $116.

Commercial banks������������������������������������������������������� 11,843.8 498.3 3,107.1 181.3 4,059.4 203.5 50.8 32.8 99

Savings institutions ����������������������������������������������������� 1,264.2 23.6 0.0 0.7 487.9 606.9 45.4 5.2

Total deposits (in billions)��������������������������������������������������� 9,226.8 270.0 2,024.5 148.9 3,463.4 528.3 78.4 28.4 96

Commercial banks������������������������������������������������������� 8,333.2 256.2 2,024.5 148.3 3,129.4 99.8 38.9 25.0 83

Savings institutions ����������������������������������������������������� 893.6 13.8 0.0 0.6 334.1 428.5 39.5 3.4

Net income (in millions)������������������������������������������������������ 10,239 -1,409 2,407 1,446 -18,692 5,206 304 274 906 19,797

Commercial banks������������������������������������������������������� 8,559 -2,204 2,407 1,442 -17,674 3,067 186 156 862 20,317

Savings institutions ����������������������������������������������������� 1,680 795 0 4 -1,018 2,139 118 118 44 -520

Performance Ratios (annualized, %

Yield on earning assets������������������������������������������������������ 4.75 11.42 3.86 5.65 5.07 4.89 5.82 4.03

Cost of funding earning assets ������������������������������������������ 1.28 1.36 0.94 1.72 1.57 1.84 1.70 1.20

Net interest margin������������������������������������������������������ 3.47 10.06 2.92 3.92 3.50 3.05 4.12 2.83

Noninterest income to assets��������������������������������������������� 1.96 5.41 1.91 0.64 1.48 1.14 2.31 7.49

Noninterest expense to assets������������������������������������������� 2.89 5.75 2.59 2.75 3.15 1.85 2.93 8.65

Loan and lease loss provision to assets���������������������������� 1.87 8.38 1.48 0.58 1.92 0.98 2.67 0.22

Net operating income to assets ����������������������������������������� 0.11 -0.36 0.27 0.79 -0.42 0.69 0.34 0.70

Pretax return on assets ������������������������������������������������������ 0.12 -0.51 0.02 0.94 -0.49 1.06 0.59 1.13

Return on assets����������������������������������������������������������������� 0.08 -0.28 0.08 0.82 -0.41 0.65 0.34 0.72

Return on equity ����������������������������������������������������������������� 0.74 -1.20 0.92 7.39 -3.99 7.38 3.23 4.10

Net charge-offs to loans and leases���������������������������������� 2.50 9.77 2.97 0.65 2.01 1.21 2.74 0.78

Loan and lease loss provision to net charge-offs�������������� 132.93 120.45 134.78 136.01 135.64 132.68 123.95 105.35 129

Efficiency ratio �������������������������������������������������������������������� 55.57 39.41 58.88 64.04 62.71 46.16 46.79 82.92 6

% of unprofitable institutions���������������������������������������������� 30.45 31.82 75.00 11.54 42.72 22.56 17.07 19.03 1

% of institutions with earnings gains���������������������������������� 40.44 31.82 25.00 40.18 37.38 56.98 45.12 36.68 4

Condition Ratios (%

Earning assets to total assets �������������������������������������������� 85.96 80.29 84.68 91.04 88.43 92.38 94.74 89.16 9

Loss Allowance to:

Loans and leases �������������������������������������������������������� 3.14 9.33 4.34 1.50 2.53 1.43 3.01 1.59

Noncurrent loans and leases �������������������������������������� 58.27 277.71 58.58 81.70 53.87 30.96 172.33 82.91 7

Noncurrent assets plus

other real estate owned to assets������������������������������� 3.33 2.31 2.75 1.56 3.87 3.17 1.44 0.69

Equity capital ratio�������������������������������������������������������������� 11.03 24.56 8.75 10.96 10.49 9.48 11.16 17.72 1

Core capital (leverage) ratio����������������������������������������������� 8.63 19.60 6.98 9.95 8.70 8.92 10.46 15.62 

Tier 1 risk-based capital ratio��������������������������������������������� 11.66 14.24 11.28 13.54 11.00 18.57 14.13 35.79 1

Total risk-based capital ratio ���������������������������������������������� 14.31 16.50 14.35 14.66 13.22 19.55 15.91 36.63 1

Net loans and leases to deposits��������������������������������������� 76.45 120.53 51.23 78.08 87.91 90.65 93.32 33.33 6

Net loans to total assets����������������������������������������������������� 53.81 62.36 33.38 63.86 66.95 59.09 76.04 24.90 5

Domestic deposits to total assets �������������������������������������� 58.72 46.24 30.96 81.80 74.26 65.11 80.38 74.24 8

Structural Change

New charters ��������������������������������������������������������������� 31 0 0 1 7 1 0 19 1 2

Institutions absorbed by mergers ������������������������������� 179 1 0 24 137 4 0 1 7 5

Failed institutions �������������������������������������������������������� 140 0 0 4 123 8 0 0 5 0

PRIOR Full

(The way it was...)

Number of Institutions ������������������������������������������������2008 8,305 26 5 1,559 4,753 839 91 279 709 44

��������������������������������������������������������2006 8,680 26 4 1,634 4,713 817 123 411 895 57

��������������������������������������������������������2004 8,976 34 5 1,731 4,423 990 132 466 1,120 75

Total assets (in billions)����������������������������������������������2008 $13,841.2 $513.0 $3,410.1 $168.8 $5,461.2 $997.1 $122.2 $34.4 $94.

��������������������������������������������������������2006 11,861.9 408.4 2,337.2 149.2 4,905.0 1,445.0 109.9 42.2 119

��������������������������������������������������������2004 10,107.4 383.0 1,881.3 138.7 3,301.4 1,505.0 104.1 52.0 143

Return on assets (%)��������������������������������������������������2008 0.03 1.70 0.25 1.00 -0.13 -0.48 -0.01 1.43 

��������������������������������������������������������2006 1.28 4.19 1.01 1.23 1.28 0.94 1.75 1.54

��������������������������������������������������������2004 1.28 4.03 0.76 1.22 1.29 1.17 1.66 1.68

Net charge-offs to loans & leases (%) �����������������������2008 1.29 5.94 1.43 0.41 1.14 0.86 1.74 0.35

��������������������������������������������������������2006 0.39 3.48 0.48 0.17 0.22 0.15 1.40 0.42

��������������������������������������������������������2004 0.56 4.66 0.91 0.22 0.30 0.12 1.57 0.59

Noncurrent assets plus 

OREO to assets (%) ��������������������������������������������2008 1.91 2.08 1.59 1.17 2.34 2.55 1.31 0.35

��������������������������������������������������������2006 0.54 1.37 0.40 0.67 0.56 0.56 0.85 0.20

��������������������������������������������������������2004 0.53 1.50 0.57 0.68 0.51 0.43 0.53 0.31

Equity capital ratio (%)������������������������������������������������2008 9.33 20.47 7.01 10.99 10.04 7.45 9.85 18.63 

��������������������������������������������������������2006 10.52 22.88 7.75 10.73 11.16 9.91 14.16 21.12 

��������������������������������������������������������2004 10.28 20.54 8.05 10.78 10.10 10.53 11.36 17.47 1

*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
FDIC Quarterly 9 2010, Volume 4, No. 2

Quarterly Banking Profile

TABLE IV-A. Full Year 2009, All FDIC-Insured Institutions

Asset Size Distribution Geographic Region

Full 

(The way it is...)

All Insured 

Institutions

Less than 

$100 Million

$100 Million 

to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San

Francisco

Number of institutions reporting��������������������� 8,012 2,847 4,493 565 107 986 1,121 1,647 1,879 1,660 719

Commercial banks����������������������������������� 6,839 2,526 3,799 429 85 518 992 1,355 1,780 1,540 654

Savings institutions ��������������������������������� 1,173 321 694 136 22 468 129 292 99 120 65

Total assets (in billions)���������������������������������� $13,108.0 $158.9 $1,354.7 $1,461.8 $10,132.7 $2,587.8 $3,427.5 $2,934.5 $1,145.7 $784

Commercial banks����������������������������������� 11,843.8 141.4 1,111.7 1,119.6 9,471.1 1,894.9 3,303.2 2,803.4 1,094.8 69

Savings institutions ��������������������������������� 1,264.2 17.5 243.0 342.2 661.5 692.9 124.3 131.0 50.9

Total deposits (in billions)������������������������������� 9,226.8 132.5 1,106.4 1,107.9 6,880.0 1,749.4 2,464.5 2,020.1 867.7 60

Commercial banks����������������������������������� 8,333.2 119.0 918.2 850.6 6,445.4 1,272.5 2,373.1 1,922.7 829.2 53

Savings institutions ��������������������������������� 893.6 13.6 188.2 257.3 434.5 476.9 91.4 97.5 38.5

Net income (in millions)���������������������������������� 10,239 -48 -1,110 -4,989 16,386 -1,269 -333 5,616 8,716 2,819 -5,310

Commercial banks����������������������������������� 8,559 17 -1,019 -4,570 14,131 -1,915 53 6,419 8,718 2,472 -7,189

Savings institutions ��������������������������������� 1,680 -65 -92 -419 2,255 646 -386 -803 -2 346 1,878

Performance Ratios (annualized, %

Yield on earning assets���������������������������������� 4.75 5.59 5.54 5.18 4.56 5.17 4.42 4.13 5.5

Cost of funding earning assets ���������������������� 1.28 1.75 1.90 1.75 1.11 1.46 1.22 1.12 1.0

Net interest margin���������������������������������� 3.47 3.84 3.64 3.43 3.45 3.71 3.19 3.01 4.4

Noninterest income to assets������������������������� 1.96 0.99 1.02 1.39 2.17 1.93 1.87 2.11 3.1

Noninterest expense to assets����������������������� 2.89 3.76 3.29 3.09 2.80 2.84 2.73 2.87 3.8

Loan and lease loss provision to assets�������� 1.87 0.72 1.14 1.69 2.01 1.92 1.90 1.63 1.9

Net operating income to assets ��������������������� 0.11 -0.05 -0.10 -0.32 0.20 0.24 -0.08 0.14 0.79

Pretax return on assets ���������������������������������� 0.12 0.03 -0.05 -0.33 0.20 -0.05 0.00 0.28 1.18

Return on assets��������������������������������������������� 0.08 -0.03 -0.08 -0.35 0.16 -0.05 -0.01 0.19 0.77

Return on equity ��������������������������������������������� 0.74 -0.25 -0.83 -3.23 1.52 -0.39 -0.09 2.23 7.43

Net charge-offs to loans and leases�������������� 2.50 0.88 1.23 1.90 2.84 2.75 2.28 2.35 2.4

Loan and lease loss provision to net 

charge-offs ���������������������������������������������� 132.93 130.74 133.50 132.05 133.01 129.33 141.21 137.91 117.96 13

Efficiency ratio ������������������������������������������������ 55.57 82.22 73.46 63.23 52.31 52.92 55.43 57.49 54.03 

% of unprofitable institutions�������������������������� 30.45 28.42 30.49 38.05 42.99 27.89 55.93 26.41 20.17 

% of institutions with earnings gains�������������� 40.44 39.37 41.00 42.12 36.45 55.98 29.17 39.89 40.18 

Condition Ratios (%

Earning assets to total assets ����������������������� 85.96 90.76 91.32 90.23 84.55 85.95 83.26 86.66 86.80 

Loss Allowance to:

Loans and leases ����������������������������������� 3.14 1.62 1.78 2.20 3.57 3.40 2.99 3.32 2.7

Noncurrent loans and leases ����������������� 58.27 63.91 50.11 49.29 60.31 84.30 48.26 56.45 46.46 

Noncurrent assets plus

other real estate owned to assets���������� 3.33 2.24 3.28 3.57 3.31 2.31 4.04 3.20 4.2

Equity capital ratio����������������������������������������� 11.03 11.98 9.88 10.74 11.20 13.22 11.67 8.60 10.71 

Core capital (leverage) ratio�������������������������� 8.63 11.55 9.35 9.27 8.39 10.15 7.93 7.05 9.2

Tier 1 risk-based capital ratio������������������������ 11.66 17.34 13.05 12.82 11.23 13.47 10.42 10.06 10.64 

Total risk-based capital ratio ������������������������� 14.31 18.43 14.26 14.18 14.28 15.81 13.73 13.33 12.81 

Net loans and leases to deposits������������������ 76.45 73.47 81.86 84.84 74.29 77.11 79.67 68.61 84.17 

Net loans to total assets�������������������������������� 53.81 61.29 66.85 64.30 50.44 52.13 57.29 47.23 63.75 

Domestic deposits to total assets ����������������� 58.72 83.43 81.61 75.15 52.90 59.55 64.28 53.04 70.70 

Structural Change

New charters ������������������������������������������ 31 25 3 1 2 3 11 7 0 6 4

Institutions absorbed by mergers ���������� 179 78 81 11 9 27 25 36 48 29 14

Failed institutions ����������������������������������� 140 25 88 22 5 6 45 30 15 9 35

PRIOR Full

(The way it was...)

Number of Institutions ��������������������������� 2008 8,305 3,132 4,498 561 114 1,015 1,180 1,705 1,935 1,700 770

����������������������������������� 2006 8,680 3,632 4,399 530 119 1,092 1,218 1,826 2,018 1,753 773

����������������������������������� 2004 8,976 4,093 4,286 480 117 1,129 1,219 1,951 2,094 1,834 749

Total assets (in billions)������������������������� 2008 $13,841.2 $170.9 $1,354.7 $1,489.8 $10,825.8 $2,594.2 $3,745.9 $3,264.3 $1,057.2 $780

����������������������������������� 2006 11,861.9 189.9 1,290.0 1,397.9 8,984.0 2,216.1 2,911.4 2,746.2 859.8 65

����������������������������������� 2004 10,107.4 211.7 1,199.6 1,318.5 7,377.6 2,856.4 2,177.1 2,387.6 768.2 60

Return on assets (%)����������������������������� 2008 0.03 0.25 0.24 -0.30 0.05 0.25 -0.14 0.29 0.57

����������������������������������� 2006 1.28 0.92 1.16 1.22 1.31 1.27 1.31 1.10 1.7

����������������������������������� 2004 1.28 1.00 1.19 1.45 1.27 1.37 1.34 0.88 1.5

Net charge-offs to loans & leases (%) �� 2008 1.29 0.46 0.67 1.10 1.44 1.44 1.01 1.24 1.6

����������������������������������� 2006 0.39 0.18 0.16 0.20 0.47 0.72 0.19 0.28 0.5

����������������������������������� 2004 0.56 0.28 0.27 0.39 0.65 0.87 0.31 0.41 0.7

Noncurrent assets plus 

OREO to assets (%) ����������������������� 2008 1.91 1.66 2.16 2.46 1.80 1.20 2.02 1.93 2.2

����������������������������������� 2006 0.54 0.73 0.59 0.52 0.53 0.52 0.33 0.57 1.0

����������������������������������� 2004 0.53 0.74 0.56 0.51 0.53 0.58 0.35 0.55 0.8

Equity capital ratio (%)��������������������������� 2008 9.33 12.87 10.00 10.65 9.01 11.14 9.56 8.07 9.4

����������������������������������� 2006 10.52 13.01 10.39 10.97 10.42 12.47 10.05 9.07 10.64 

����������������������������������� 2004 10.28 11.82 10.19 10.87 10.15 11.20 8.74 9.36 10.62 

* Regions

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

U.S. Virgin Islan

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

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

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

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

San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming
FDIC Quarterly 10 2010, Volume 4, No. 2

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

Asset Concentration Groups*

March 31, 2010 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 ��������������������������������������� 2.23 3.66 2.93 1.48 1.83 1.94 1.13 1.44

Construction and development��������������������������������� 2.81 0.00 3.82 1.67 2.76 4.21 1.81 1.49

Nonfarm nonresidential��������������������������������������������� 1.44 0.00 0.81 1.31 1.42 1.78 2.33 0.95

Multifamily residential real estate ����������������������������� 1.28 0.00 0.62 0.84 1.46 1.36 5.09 1.86

Home equity loans����������������������������������������������������� 1.24 1.43 1.63 0.59 0.85 1.16 0.89 0.58

Other 1-4 family residential��������������������������������������� 3.07 4.47 4.41 2.01 2.37 1.97 1.25 1.82

Commercial and industrial loans ������������������������������������� 0.94 4.08 0.36 1.77 1.05 1.23 1.45 1.37

Loans to individuals���������������������������������������������������������� 2.29 2.69 2.06 1.89 1.79 1.52 1.91 1.90

Credit card loans ������������������������������������������������������� 2.61 2.66 2.72 1.62 2.08 2.93 1.16 2.43

Other loans to individuals ����������������������������������������� 1.95 3.33 1.83 1.90 1.73 1.11 2.27 1.84

All other loans and leases (including farm) ��������������������� 0.64 0.01 0.25 1.19 0.78 0.19 0.48 1.23

Total loans and leases������������������������������������������������������ 1.92 2.68 1.91 1.48 1.63 1.89 1.67 1.48

Percent of Loans Noncurrent**

All real estate loans ���������������������������������������������������������� 7.55 5.67 10.69 2.39 6.08 4.86 1.38 2.45 

Construction and development.................................. 16.82 0.00 1

Nonfarm nonresidential��������������������������������������������� 4.17 0.00 4.81 2.61 3.87 3.18 2.91 2.31

Multifamily residential real estate ����������������������������� 4.62 0.00 4.18 3.27 4.41 3.93 0.19 2.75

Home equity loans����������������������������������������������������� 1.72 6.07 1.86 0.68 1.15 1.99 0.83 1.23

Other 1-4 family residential��������������������������������������� 10.17 5.94 17.91 1.60 5.70 4.96 1.39 2.23 

Commercial and industrial loans ������������������������������������� 3.11 3.99 5.72 2.44 2.54 1.71 0.93 1.33

Loans to individuals���������������������������������������������������������� 2.27 3.18 2.37 0.76 1.37 1.20 1.63 0.91

Credit card loans ������������������������������������������������������� 3.09 3.14 3.10 0.63 2.98 3.37 1.43 1.92

Other loans to individuals ����������������������������������������� 1.37 3.94 2.11 0.76 1.04 0.59 1.72 0.80

All other loans and leases (including farm) ��������������������� 1.65 0.02 2.35 0.93 1.66 0.25 1.11 1.38

Total loans and leases������������������������������������������������������ 5.45 3.12 7.02 1.98 4.85 4.60 1.52 2.04

Percent of Loans Charged-off (net, YTD)

All real estate loans ���������������������������������������������������������� 2.04 3.54 2.73 0.35 1.87 1.04 1.98 0.33

Construction and development��������������������������������� 5.32 0.00 4.98 2.14 5.63 5.99 7.58 0.19

Nonfarm nonresidential��������������������������������������������� 0.97 0.00 0.90 0.30 1.01 0.59 0.11 0.17

Multifamily residential real estate ����������������������������� 1.10 0.00 0.94 0.59 1.26 1.01 0.00 1.47

Home equity loans����������������������������������������������������� 3.12 3.34 2.98 0.55 1.47 3.46 2.40 0.08

Other 1-4 family residential��������������������������������������� 1.76 3.83 3.44 0.24 1.37 0.78 1.31 0.42

Commercial and industrial loans ������������������������������������� 1.98 16.75 2.03 1.00 1.72 0.93 6.40 0.94

Loans to individuals���������������������������������������������������������� 7.41 14.96 3.45 0.53 2.73 3.63 2.62 1.11

Credit card loans ������������������������������������������������������� 13.13 15.01 6.69 3.03 8.42 11.36 5.45 5.66 

Other loans to individuals ����������������������������������������� 2.41 14.26 2.27 0.44 1.61 1.33 1.42 0.54

All other loans and leases (including farm) ��������������������� 0.92 0.01 1.11 0.00 1.35 0.40 2.20 0.82

Total loans and leases������������������������������������������������������ 2.84 14.26 2.50 0.44 1.88 1.15 2.67 0.54

Loans Outstanding (in billions)

All real estate loans ���������������������������������������������������������� $4,400.5 $0.1 $543.0 $68.6 $2,110.6 $431.2 $18.4 $6.8 $51.

Construction and development��������������������������������� 418.0 0.0 9.0 4.4 308.9 8.4 0.5 0.

Nonfarm nonresidential��������������������������������������������� 1,090.4 0.0 31.5 19.7 799.9 25.7 0.7 2.3 

Multifamily residential real estate ����������������������������� 214.9 0.0 41.3 1.5 128.7 8.8 0.1 0.

Home equity loans����������������������������������������������������� 659.6 0.0 134.2 1.5 223.4 26.4 9.6 0.2

Other 1-4 family residential��������������������������������������� 1,887.4 0.1 277.6 18.1 607.1 361.1 7.4 3.2 

Commercial and industrial loans ������������������������������������� 1,187.6 33.4 196.0 15.2 568.3 9.2 4.0 1.3

Loans to individuals���������������������������������������������������������� 1,380.7 585.6 208.5 6.0 231.3 20.8 49.8 1.3

Credit card loans ������������������������������������������������������� 717.0 556.6 53.6 0.1 39.3 4.6 16.2 0.

Other loans to individuals ����������������������������������������� 663.7 29.0 154.9 5.9 192.0 16.2 33.5 1.2

All other loans and leases (including farm) ��������������������� 536.5 21.3 165.7 26.1 154.2 3.1 0.7 0.6

Total loans and leases (plus unearned income)�������������� 7,505.3 640.5 1,113.2 115.9 3,064.4 464.2 72.9 10.0 70

Memo: Other Real Estate Owned (in millions

All other real estate owned����������������������������������������������� 46,263.3 -28.2 3,127.0 699.7 30,928.4 3,005.4 40.0 65.0 489

Construction and development��������������������������������� 17,621.6 0.0 29.0 242.0 15,492.6 410.6 17.5 23.1 120

Nonfarm nonresidential��������������������������������������������� 8,044.8 0.0 160.0 206.6 6,571.7 168.6 5.4 16.5 1

Multifamily residential real estate ����������������������������� 2,655.8 0.0 784.0 33.9 1,204.1 29.9 0.3 3.3 

1-4 family residential ������������������������������������������������� 14,552.7 0.1 1,219.0 163.7 6,697.4 2,070.8 16.7 20.1 195

Farmland�������������������������������������������������������������������� 245.7 0.0 0.0 52.1 169.4 1.6 0.1 1.

GNMA properties������������������������������������������������������� 2,996.4 0.0 750.0 1.6 782.8 344.6 0.0 0.0 0

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 11 2010, Volume 4, No. 2

Quarterly Banking Profile

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

Asset Size Distribution Geographic Region

March 31, 2010 All Insured 

Institutions

Less than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ������������������������������ 2.23 1.96 1.77 1.63 2.49 1.82 2.52 2.12 2.5

Construction and development������������������������ 2.81 2.65 2.64 2.72 2.92 3.52 2.18 2.70 3.6

Nonfarm nonresidential������������������������������������ 1.44 1.73 1.57 1.29 1.43 1.58 1.52 1.43 1.5

Multifamily residential real estate �������������������� 1.28 1.90 1.36 1.45 1.20 1.29 1.33 1.22 1.8

Home equity loans�������������������������������������������� 1.24 1.20 0.85 0.80 1.30 0.71 1.51 1.24 1.2

Other 1-4 family residential������������������������������ 3.07 2.27 1.94 1.81 3.49 2.00 3.73 3.06 3.5

Commercial and industrial loans ���������������������������� 0.94 1.89 1.49 1.12 0.83 1.56 0.84 0.76 1.0

Loans to individuals������������������������������������������������� 2.29 2.29 1.77 2.04 2.32 2.58 2.21 1.68 2.7

Credit card loans ���������������������������������������������� 2.61 2.42 2.31 2.29 2.62 2.65 2.50 2.32 3.0

Other loans to individuals �������������������������������� 1.95 2.29 1.73 1.94 1.96 2.33 2.05 1.50 2.2

All other loans and leases (including farm) ������������ 0.64 1.19 0.92 0.75 0.59 0.55 0.43 0.71 1.1

Total loans and leases��������������������������������������������� 1.92 1.89 1.70 1.56 2.02 1.94 2.08 1.70 2.2

Percent of Loans Noncurrent** 

All real estate loans ������������������������������������������������� 7.55 3.07 4.15 5.51 8.97 5.00 9.17 8.42 9.3

Construction and development������������������������ 16.82 10.21 13.05 16.72 18.59 18.80 16.33 17.11 16.87 

Nonfarm nonresidential������������������������������������ 4.17 3.15 3.17 3.57 5.04 3.87 4.57 4.39 4.8

Multifamily residential real estate �������������������� 4.62 2.91 3.37 4.16 5.08 3.32 7.14 4.48 5.0

Home equity loans�������������������������������������������� 1.72 1.38 1.18 1.38 1.79 0.88 2.10 1.75 2.2

Other 1-4 family residential������������������������������ 10.17 2.23 2.75 4.21 12.58 4.75 12.92 13.40 14.1

Commercial and industrial loans ���������������������������� 3.11 2.62 2.39 2.44 3.30 3.21 2.36 2.90 2.9

Loans to individuals������������������������������������������������� 2.27 1.10 0.81 1.39 2.37 3.04 1.62 1.45 2.3

Credit card loans ���������������������������������������������� 3.09 1.91 1.50 2.13 3.13 3.37 2.93 3.00 3.0

Other loans to individuals �������������������������������� 1.37 1.09 0.76 1.10 1.45 1.80 0.87 1.01 1.3

All other loans and leases (including farm) ������������ 1.65 0.98 1.12 1.31 1.74 1.28 0.99 2.00 1.2

Total loans and leases��������������������������������������������� 5.45 2.65 3.64 4.59 5.94 4.03 6.52 5.99 6.1

Percent of Loans Charged-off (net, YTD) 

All real estate loans ������������������������������������������������� 2.04 0.51 0.79 1.72 2.46 1.10 2.75 2.25 2.1

Construction and development������������������������ 5.32 2.29 2.61 6.08 6.16 5.41 5.24 6.42 4.2

Nonfarm nonresidential������������������������������������ 0.97 0.44 0.47 1.01 1.22 0.90 1.07 1.12 0.6

Multifamily residential real estate �������������������� 1.10 0.59 0.58 1.25 1.19 0.81 1.05 1.20 0.8

Home equity loans�������������������������������������������� 3.12 0.48 0.66 1.07 3.48 0.83 4.73 2.22 4.0

Other 1-4 family residential������������������������������ 1.76 0.32 0.56 0.88 2.14 0.69 2.27 2.30 1.9

Commercial and industrial loans ���������������������������� 1.98 1.09 1.17 1.49 2.17 3.14 1.53 2.26 1.7

Loans to individuals������������������������������������������������� 7.41 0.70 1.48 3.10 7.98 12.28 5.28 3.00 10.2

Credit card loans ���������������������������������������������� 13.13 4.88 7.80 8.94 13.30 14.71 12.65 8.53 18.3

Other loans to individuals �������������������������������� 2.41 0.64 1.04 1.14 2.66 5.31 1.90 1.45 2.1

All other loans and leases (including farm) ������������ 0.92 0.00 0.46 0.53 1.00 0.60 0.37 2.28 0.7

Total loans and leases��������������������������������������������� 2.84 0.61 0.86 1.75 3.40 4.09 2.73 2.35 3.2

Loans Outstanding (in billions) 

All real estate loans ������������������������������������������������� $4,400.5 $65.9 $704.1 $711.6 $2,918.9 $833.7 $1,081.6 $868.4 $645.9 $3

Construction and development������������������������ 418.0 5.6 90.9 100.7 220.8 57.7 133.0 70.3 55.

Nonfarm nonresidential������������������������������������ 1,090.4 19.8 269.5 278.0 523.0 221.9 247.7 196.0 153.7 

Multifamily residential real estate �������������������� 214.9 1.9 32.2 41.8 139.1 57.4 34.7 62.3 18

Home equity loans�������������������������������������������� 659.6 2.2 38.7 50.0 568.7 86.0 193.6 178.1 117.

Other 1-4 family residential������������������������������ 1,887.4 27.8 239.7 228.4 1,391.5 405.2 456.4 345.3 277.0 

Commercial and industrial loans ���������������������������� 1,187.6 12.5 112.8 141.2 921.1 182.1 275.7 253.4 175.7

Loans to individuals������������������������������������������������� 1,380.7 6.7 42.1 76.1 1,255.8 433.2 232.8 192.9 235.9

Credit card loans ���������������������������������������������� 717.0 0.1 2.5 21.5 692.9 340.9 84.6 43.0 143.

Other loans to individuals �������������������������������� 663.7 6.6 39.6 54.5 563.0 92.4 148.2 149.8 92.3

All other loans and leases (including farm) ������������ 536.5 10.1 38.4 33.8 454.3 81.2 103.1 114.6 109.8

Total loans and leases (plus unearned income)����� 7,505.3 95.2 897.3 962.7 5,550.1 1,530.3 1,693.2 1,429.3 1,167.3 51

Memo: Other Real Estate Owned (in millions)

All other real estate owned�������������������������������������� 46,263.3 1,061.4 12,295.9 10,232.8 22,673.2 3,693.0 13,639.5 9,797.5 7,560.0 4,86

Construction and development������������������������ 17,621.6 367.6 6,113.7 5,568.0 5,572.3 1,064.1 5,840.7 2,684.4 2,625.3 2,41

Nonfarm nonresidential������������������������������������ 8,044.8 294.4 2,823.0 2,065.5 2,862.0 828.5 1,899.7 1,828.0 1,302.3 1,05

Multifamily residential real estate �������������������� 2,655.8 35.3 429.4 402.1 1,789.1 250.5 471.7 368.7 494.0 

1-4 family residential ���������������������������������������� 14,552.7 341.5 2,778.3 1,972.9 9,460.0 1,357.6 5,186.8 3,454.2 1,977.6 1,13

Farmland����������������������������������������������������������� 245.7 21.1 150.2 52.9 21.4 15.9 35.3 31.7 45.

GNMA properties���������������������������������������������� 2,996.4 1.7 7.8 175.3 2,811.5 167.4 220.5 1,426.6 1,117.

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 12 2010, Volume 4, No. 2

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

Asset Size Distributio

(dollar figures in millions;

notional amounts unless otherwise indicated)

1st Quarter

2010

4th Quarter

2009

3rd Quarter 

2009

2nd Quarter 

2009

1st Quarter 

2009

% Change 

09Q1-

10Q1

Less 

than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater than 

$10 Billion

ALL DERIVATIVE HOLD

Number of institutions reporting derivatives����������������� 1,146 1,130 1,175 1,214 1,170 -2.1 86 677 306 7

Total assets of institutions reporting derivatives ���������� $10,766,357 $10,568,276 $10,546,529 $10,593,193 $10,671,375 0.9 $6,228 $291,379 $897,508 $9,571,24

Total deposits of institutions reporting derivatives������� 7,281,570 7,341,195 7,183,905 7,097,228 6,983,343 4.3 5,180 235,964 682,198 6,358,22

Total derivatives������������������������������������������������������������� 218,074,225 213,563,342 210,008,291 208,656,901 206,742,719 5.5 223 18,120 98,455 217,957,42

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 181,997,144 179,565,445 176,204,154 175,648,997 172,763,155 5.3 212 17,697 94,572 181,884,66

Foreign exchange*��������������������������������������������������������� 19,201,849 17,297,929 17,709,286 16,640,233 16,266,432 18.0 1 84 2,678 19,199,08

Equity ����������������������������������������������������������������������������� 1,570,950 1,685,227 2,182,431 2,041,638 2,174,365 -27.8 11 161 878 1,569,90

Commodity & other (excluding credit derivatives)�������� 939,818 978,922 926,295 909,250 938,063 0.2 0 116 134 939,56

Credit������������������������������������������������������������������������������ 14,364,464 14,035,819 12,986,125 13,416,784 14,600,703 -1.6 0 62 193 14,364,20

Total�������������������������������������������������������������������������������� 218,074,225 213,563,342 210,008,291 208,656,901 206,742,719 5.5 223 18,120 98,455 217,957,42

Derivative Contracts by Transaction Type 

Swaps ���������������������������������������������������������������������������� 136,341,268 142,022,036 139,477,065 137,993,983 135,835,552 0.4 30 9,792 79,969 136,251,47

Futures & forwards �������������������������������������������������������� 34,096,746 26,495,662 24,944,757 25,885,385 24,744,597 37.8 81 3,552 7,800 34,085,31

Purchased options��������������������������������������������������������� 15,757,712 15,151,690 15,424,802 15,020,266 15,053,701 4.7 10 760 3,202 15,753,74

Written options��������������������������������������������������������������� 15,908,657 15,113,322 15,063,184 14,859,851 15,106,838 5.3 102 3,900 7,053 15,897,60

Total�������������������������������������������������������������������������������� 202,104,384 198,782,710 194,909,809 193,759,485 190,740,687 6.0 223 18,004 98,024 201,988,13

Fair Value of Derivative Contracts 

Interest rate contracts���������������������������������������������������� 94,822 96,997 122,592 123,696 134,105 -29.3 1 -8 89 94,74

Foreign exchange contracts������������������������������������������ 1,431 9,671 -5,037 -10,568 -10,459 N/M 0 0 -2 1,433

Equity contracts������������������������������������������������������������� -856 1,236 -253 670 3,103 N/M 0 3 6 -865

Commodity & other (excluding credit derivatives)�������� 976 1,623 3,615 1,156 4,158 -76.5 0 8 2 96

Credit derivatives as guarantor������������������������������������� -121,491 -160,980 -234,357 -474,635 -959,080 N/M 0 0 2 -121,493

Credit derivatives as beneficiary����������������������������������� 141,273 188,641 266,208 523,242 1,031,185 -86.3 0 0 -1 141,27

Derivative Contracts by Maturity** 

Interest rate contracts ����������������������������� < 1 year 84,018,163 80,979,650 78,128,617 74,833,456 70,402,282 19.3 53 3,410 18,939 83,995,76

 ������������������������������������������ 1-5 years 33,334,943 33,638,337 33,977,577 35,928,119 37,299,179 -10.6 13 7,280 27,991 33,299,65

 ������������������������������������������ > 5 years 24,119,801 26,141,316 26,620,986 28,371,872 30,000,656 -19.6 19 2,444 38,161 24,079,17

Foreign exchange contracts ������������������� < 1 year 11,091,990 10,416,223 9,674,124 9,490,043 9,234,171 20.1 0 27 1,527 11,090,43

 ������������������������������������������ 1-5 years 2,440,019 2,448,723 2,405,751 2,293,453 2,162,670 12.8 0 2 61 2,439,95

 ������������������������������������������ > 5 years 1,328,830 1,343,778 1,325,262 1,193,852 1,056,327 25.8 0 0 0 1,328,83

Equity contracts��������������������������������������� < 1 year 320,739 312,066 358,462 343,416 348,774 -8.0 3 29 130 320,57

 ������������������������������������������ 1-5 years 220,441 227,854 301,995 291,182 286,171 -23.0 1 67 364 220,01

 ������������������������������������������ > 5 years 83,990 81,647 82,835 75,716 82,844 1.4 0 0 1 83,98

Commodity & other contracts ����������������� < 1 year 287,748 261,429 237,860 252,705 279,748 2.9 0 85 53 287,61

 ������������������������������������������ 1-5 years 177,250 223,654 233,829 211,329 206,173 -14.0 0 17 41 177,19

 ������������������������������������������ > 5 years 31,220 34,250 43,612 45,443 41,546 -24.9 0 0 0 31,22

Risk-Based Capital: Credit Equivalent Amount

Total current exposure to tier 1 capital (%)������������������� 41.2 45.9 57.3 66.8 86.2 0.1 0.4

Total potential future exposure to tier 1 capital (%)������ 88.9 83.3 83.6 80.6 89.2 0.1 0.3 

Total exposure (credit equivalent amount) 

to tier 1 capital (%)�������������������������������������������������� 130.2 129.2 140.9 147.3 175.3 0.2 0.7 

Credit losses on derivatives***���������������������������������� 103.6 767.1 605.3 384.7 217.1 -52.3 0.0 3.

HELD FOR TRADIN

Number of institutions reporting derivatives����������������� 195 196 207 204 199 -2.0 10 64 67 5

Total assets of institutions reporting derivatives ���������� 8,950,711 8,873,819 8,911,543 8,911,914 9,016,071 -0.7 756 27,257 279,526 8,643,17

Total deposits of institutions reporting derivatives������� 6,096,651 6,145,431 6,014,547 5,990,076 5,886,779 3.6 614 21,671 211,387 5,862,97

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 180,117,242 177,717,171 174,199,745 173,339,084 170,603,660 5.6 25 884 50,687 180,065,64

Foreign exchange���������������������������������������������������������� 17,462,255 16,437,639 15,510,657 15,051,809 14,759,077 18.3 0 0 1,989 17,460,26

Equity ����������������������������������������������������������������������������� 1,563,707 1,677,767 2,175,796 2,034,228 2,162,149 -27.7 0 1 234 1,563,47

Commodity & other�������������������������������������������������������� 932,983 974,849 924,183 906,325 935,634 -0.3 0 0 44 932,94

Total�������������������������������������������������������������������������������� 200,076,187 196,807,425 192,810,380 191,331,447 188,460,521 6.2 25 885 52,953 200,022,32

Trading Revenues: Cash & Derivative Instruments

Interest rate�������������������������������������������������������������������� 304 -1,208 5,436 900 9,265 -96.7 0 0 17 28

Foreign exchange���������������������������������������������������������� 3,906 2,560 -1,535 2,132 2,436 60.3 0 0 6 3,90

Equity ����������������������������������������������������������������������������� 965 144 153 -92 854 13.0 0 0 1 96

Commodity & other (including credit derivatives) �������� 3,004 417 1,648 2,320 -2,358 N/M 0 0 0 3,004

Total trading revenues��������������������������������������������������� 8,178 1,914 5,702 5,260 10,197 -19.8 0 0 24 8,15

Share of Revenu

Trading revenues to gross revenues (%) ���������������������� 6.6 1.6 4.7 4.0 7.6 0.0 0.

Trading revenues to net operating revenues (%)���������� 74.0 100.2 88.1 96.9 138.0 0.0 0.0 -

HELD FOR PURPOSES OTHER THAN T

Number of institutions reporting derivatives����������������� 1,028 1,010 1,048 1,086 1,048 -1.9 76 615 265 7

Total assets of institutions reporting derivatives ���������� 10,340,778 10,212,224 10,199,835 10,216,757 10,304,121 0.4 5,472 266,237 752,613 9,316,45

Total deposits of institutions reporting derivatives������� 7,031,798 7,098,524 6,955,097 6,847,472 6,730,432 4.5 4,566 215,652 570,211 6,241,36

Derivative Contracts by Underlying Ris

Exposure 

Interest rate�������������������������������������������������������������������� 1,879,902 1,848,275 2,004,409 2,309,913 2,159,495 -12.9 187 16,813 43,886 1,819,01

Foreign exchange���������������������������������������������������������� 134,216 115,478 86,272 107,791 106,027 26.6 1 29 451 133,73

Equity ����������������������������������������������������������������������������� 7,243 7,459 6,635 7,410 12,216 -40.7 11 161 644 6,42

Commodity & other�������������������������������������������������������� 6,835 4,073 2,112 2,924 2,429 181.4 0 116 90 6,62

Total notional amount ���������������������������������������������������� 2,028,197 1,975,285 2,099,429 2,428,038 2,280,166 -11.1 198 17,120 45,071 1,965,80

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

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

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

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

in total assets
FDIC Quarterly 13 2010, Volume 4, No. 2

Quarterly Banking Profile

TABLE VII-A. Servicing, Securitization, and Asset Sales Activities (All FDIC-Insured Commercial Banks and State-Chartered 

Savings Banks)

Asset Size Distributio

(dollar figures in millions)

1st 

Quarter

2010

4th 

Quarter

2009

3rd 

Quarter

2009

2nd 

Quarter 

2009

1st 

Quarter 

2009

% Change 

09Q1-

10Q1

Less than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

than $10 

Billion

Assets Securitized and Sold with Servicing Retained or with Recourse or Other Seller-Provided Credit Enhance

Number of institutions reporting securitization activities ����������������������������������������� 132 143 143 140 132 0.0 19 61 23 2

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� $1,194,691 $1,209,474 $1,225,694 $1,222,193 $1,230,735 -2.9 $232 $931 $2,045 $1,191,48

Home equity loans��������������������������������������������������������������������������������������������� 167 5,947 6,205 6,594 6,595 -97.5 14 0 0 15

Credit card receivables�������������������������������������������������������������������������������������� 16,133 363,486 391,417 397,918 399,113 -96.0 0 861 0 15,27

Auto loans ���������������������������������������������������������������������������������������������������������� 600 7,182 8,277 10,266 11,862 -94.9 0 0 79 52

Other consumer loans ��������������������������������������������������������������������������������������� 5,610 24,692 25,335 26,006 26,692 -79.0 0 0 0 5,61

Commercial and industrial loans����������������������������������������������������������������������� 4,127 7,649 8,436 9,019 8,317 -50.4 1 10 594 3,52

All other loans, leases, and other assets���������������������������������������������������������� 192,868 198,849 192,086 193,377 197,699 -2.4 4 41 143 192,68

Total securitized and sold������������������������������������������������������������������������������������������ 1,414,197 1,817,280 1,857,449 1,865,374 1,881,015 -24.8 252 1,843 2,861 1,409,24

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 5,166 5,780 6,115 6,058 6,279 -17.7 2 11 55 5,09

Home equity loans��������������������������������������������������������������������������������������������� 14 1,023 1,006 1,063 1,120 -98.8 14 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 730 134,193 136,043 129,373 39,100 -98.1 0 267 0 46

Auto loans ���������������������������������������������������������������������������������������������������������� 6 637 745 722 912 -99.3 0 0 6 

Other consumer loans ��������������������������������������������������������������������������������������� 237 1,410 1,434 1,399 1,429 -83.4 0 0 0 23

Commercial and industrial loans����������������������������������������������������������������������� 95 225 274 184 367 -74.1 0 0 86 

All other loans, leases, and other assets���������������������������������������������������������� 257 287 333 299 301 -14.6 0 5 0 25

Total credit exposure ������������������������������������������������������������������������������������������������� 6,506 143,555 145,950 139,100 49,509 -86.9 17 282 147 6,06

Total unused liquidity commitments provided to institution's own securitizations ��� 162 387 358 378 397 -59.2 1 0 2 15

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

1-4 family residential loans�������������������������������������������������������������������������������� 3.9 4.4 4.6 4.3 4.1 4.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 0.5 1.3 1.3 0.8 1.1 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 1.5 2.7 2.9 2.6 3.0 0.0 2.

Auto loans ���������������������������������������������������������������������������������������������������������� 1.2 2.3 2.4 2.2 1.9 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 3.3 4.0 3.6 2.9 3.1 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.3 2.3 2.9 2.6 3.1 0.0 16.

All other loans, leases, and other assets���������������������������������������������������������� 2.2 3.5 1.2 1.9 0.6 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 3.6 4.0 3.9 3.7 3.5 3.7 1.

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

1-4 family residential loans�������������������������������������������������������������������������������� 8.5 7.9 7.5 6.6 5.7 1.6 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.5 2.0 1.8 0.9 1.4 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 0.8 3.0 2.6 2.9 3.0 0.0 3.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.3 0.2 0.3 0.2 0.2 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 2.7 3.6 3.6 3.3 3.5 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.1 1.0 1.2 1.3 3.1 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 7.5 4.3 3.8 1.6 1.1 9.5 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 8.3 6.4 5.9 5.2 4.6 1.7 1.

Securitized Loans, Leases, and Other Assets Charged-off

(net, YTD, annualized, %) 

1-4 family residential loans�������������������������������������������������������������������������������� 0.2 1.0 0.7 0.5 0.2 0.0 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.2 1.8 1.4 0.9 0.6 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 2.2 10.2 7.6 4.8 2.1 0.0 3.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.3 2.5 1.9 1.1 0.7 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 0.4 1.0 0.7 0.5 0.2 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 13.9 10.0 6.9 2.6 0.0 0.

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

Total loans, leases, and other assets ����������������������������������������������������������������������� 0.2 2.8 2.1 1.4 0.6 0.0 1.

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

Home equity loans��������������������������������������������������������������������������������������������� 0 316 396 134 165 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 4,831 62,235 73,401 68,128 77,212 -93.7 0 53 0 4,77

Commercial and industrial loans����������������������������������������������������������������������� 4 894 930 451 450 -99.1 0 2 1 

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

Home equity loans��������������������������������������������������������������������������������������������� 0 1 2 4 5 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 0 789 788 594 556 -100.0 0 0 0 

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

Assets Sold with Recourse and Not Securitized Number of institutions reporting asset sales������������������������������������������������������������ 818 826 820 826 819 -0.1 158 501 11

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 62,493 66,985 67,999 70,504 70,061 -10.8 1,066 9,401 4,212 47,81

Home equity, credit card receivables, auto, and other consumer loans ��������� 40 908 1,024 1,159 1,348 -97.0 0 20 3 1

Commercial and industrial loans����������������������������������������������������������������������� 669 2,654 2,844 3,195 6,028 -88.9 1 43 15 61

All other loans, leases, and other assets���������������������������������������������������������� 48,372 48,757 47,971 47,560 46,438 4.2 0 95 44 48,23

Total sold and not securitized������������������������������������������������������������������������������������ 111,574 119,304 119,839 122,418 123,875 -9.9 1,067 9,559 4,273 96,67

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 13,701 16,541 15,418 15,836 15,421 -11.2 110 1,237 2,433 9,92

Home equity, credit card receivables, auto, and other consumer loans ��������� 21 100 104 112 183 -88.5 0 7 1 1

Commercial and industrial loans����������������������������������������������������������������������� 62 1,934 2,003 2,224 4,995 -98.8 1 32 15 1

All other loans, leases, and other assets���������������������������������������������������������� 10,450 10,412 10,136 10,011 9,790 6.7 0 66 5 10,37

Total credit exposure ������������������������������������������������������������������������������������������������� 24,233 28,986 27,661 28,183 30,389 -20.3 111 1,342 2,455 20,32

Support for Securitization Facilities Sponsored by Other Institutio

Number of institutions reporting securitization facilities sponsored by others ������� 74 57 60 60 56 32.1 26 33 7 

Total credit exposure ������������������������������������������������������������������������������������������������� 6,410 4,296 4,872 3,812 2,134 200.4 10 97 37 6,26

Total unused liquidity commitments ������������������������������������������������������������������������� 846 545 327 475 936 -9.6 0 0 0 84

Other

Assets serviced for others*��������������������������������������������������������������������������������������� 6,034,911 6,010,532 5,977,515 5,878,337 5,681,694 6.2 3,968 119,605 94,369 5,816,96

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others������������������ 7,268 15,967 17,658 20,210 22,981 -68.4 5 0 68 7,19

Unused liquidity commitments to conduits sponsored by institutions 

 and others �������������������������������������������������������������������������������������������������� 80,156 170,373 182,740 210,026 273,542 -70.7 0 0 1,272 78,88

Net servicing income (for the quarter)���������������������������������������������������������������������� 4,844 8,019 5,995 10,845 5,946 -18.5 7 180 177 4,48

Net securitization income (for the quarter)��������������������������������������������������������������� 13 1,615 1,163 -142 2,124 -99.4 1 2 2 

Total credit exposure to Tier 1 capital (%)** ������������������������������������������������������������� 3.3 15.9 16.2 15.8 7.7 0.8 1.

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

** Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above
FDIC Quarterly 14 2010, Volume 4, No. 2

Total assets of the nation’s 7,932 FDIC-insured 

commercial banks and savings institutions increased by 

$248.6 billion (1.9 percent) during first quarter 2010, 

funded primarily by an increase in nondeposit liabilities. 

Total deposits decreased by $28.6 billion, with domestic 

deposits almost flat, decreasing by $5.1 billion (0.1 

percent), and foreign office deposits declining by $23.5 

billion (1.5 percent). Domestic noninterest-bearing 

deposits decreased by $26.4 billion (1.7 percent), and 

domestic time deposits decreased by $116.1 billion 

(4.9 percent). Savings deposits and interest-bearing 

checking accounts increased by $137.4 billion (3.6 

percent) during the quarter. The share of assets funded 

by domestic deposits declined from 58.7 percent to 57.6 

percent, and the share funded by foreign office deposits 

decreased from 11.7 percent to 11.3 percent. Federal 

Home Loan Bank (FHLB) advances as a percentage of 

total assets continued to decline, from 4.1 percent to 

3.6 percent on March 31, 2010, the smallest percentage 

on record (2001 to present).

Brokered deposits decreased by $10.0 billion (1.6 

percent) during the first quarter and decreased by 

$164.4 billion (21.2 percent) during the previous 12 

months. Reciprocal brokered deposits decreased by 

$639.7 million (1.9 percent) to $33.3 billion during the 

three months ending March 31, 2010. Since the second 

quarter of 2009, the portion of brokered deposits 

exceeding 10 percent of an institution’s domestic deposits has been included in the formula used to price 

deposit insurance.1

1

 For an institution in Risk Category I, the initial base assessment rate 

is adjusted using the adjusted brokered deposit ratio. This ratio will 

exceed zero if an institution’s brokered deposits are greater than 10 

percent of its domestic deposits and its total assets are more than 40 

percent greater than they were four years previously. Certain reciprocal brokered deposits are excluded from the calculation of the adjusted 

brokered deposit ratio. For an institution in any other risk category, the 

initial base assessment rate is increased if the institution’s ratio of 

brokered deposits to domestic deposits is greater than 10 percent. 

Reciprocal brokered deposits are included in the amount of brokered 

deposits for purposes of computing this ratio.

Since September 30, 2009, insured deposit estimates 

have been based on the temporary $250,000 deposit 

insurance coverage limit.2 Estimated insured deposits 

(including U.S. branches of foreign banks) rose by 

$70.0 billion (1.3 percent) during first quarter 2010, 

down slightly from the previous quarter’s 1.7 percent 

growth. For the most recent 12-month period, insured 

deposits increased by 13.1 percent ($631.5 billion), 

which includes the effect of the temporary increase in 

FDIC deposit insurance coverage. For institutions 

reporting at December 31, 2009 and March 31, 2010, 

insured deposits increased at 5,027 institutions (63 

percent), decreased at 2,876 institutions (36 percent), 

and remained unchanged at 26 institutions.

The Deposit Insurance Fund (DIF) increased by $145 

million during the first quarter to a negative $20.7 

billion (unaudited). This was the first increase in the 

fund’s balance since first quarter 2008. Accrued assessment income added $3.3 billion to the DIF during the 

first quarter. The fund received $62 million from interest on securities and $149 million from net unrealized 

gains and losses on available-for-sale securities. The 

biggest reduction in the DIF came from a $3.0 billion 

increase in additional provisions for bank failures. Operating and other expenses, net of other revenue, reduced 

the fund by $323 million.

The small increase in the DIF combined with average 

insured deposit growth raised the first quarter reserve 

ratio to −0.38 percent, 1 basis point higher than the 

previous quarter, but the reserve ratio is 65 basis points 

2

 On May 20, 2009, the President signed the Helping Families Save 

Their Homes Act of 2009, which extended the temporary deposit 

insurance coverage limit increase to $250,000 for deposits other than 

retirement accounts (from the permanent limit of $100,000) through 

the end of 2013. The legislation also eliminated the provision in the 

Emergency Economic Stabilization Act of 2009 that prevented the FDIC 

from considering this temporary increase in deposit insurance coverage for purposes of setting deposit insurance assessments. Beginning 

September 30, 2009, insured deposit estimates are based on the 

$250,000 coverage limit.

■ Insured Deposits Grow by 1.3 Percent

■ DIF Reserve Ratio Rises 1 Basis Point to −0.38 Percent

■ Forty-one Institutions Fail during First Quarter

Insur
FDIC Quarterly 15 2010, Volume 4, No. 2

Quarterly Banking Profile

lower than a year earlier. The fund’s reserve ratio for 

March 31, 2010 (−0.38 percent) is the second lowest 

on record. Forty-one FDIC-insured institutions with 

combined assets of $22.1 billion failed during first quarter 2010, at an estimated cost of $6.3 billion. One 

hundred and sixty FDIC-insured institutions with 

combined assets of $182.4 billion failed during the 

latest 12 months, at an estimated cost of $39.6 billion.

Author: Kevin Brown, Sr. Financial Analyst

Division of Insurance and Research

(202) 898-6817
FDIC Quarterly 16 2010, Volume 4, No. 2

DIF Reserve Ratios

Percent of Insured Deposits

1.20 1.21 1.22 1.22 1.19

1.01

0.76

0.36

0.27 0.22

-0.16 -0.39 -0.38

3/07 9/07 3/08 9/08 3/09 9/09 3/10

Table I-B. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund

1st 

Quarter 

2010*

4th 

Quarter 

2009*

3rd 

Quarter 

2009

2nd 

Quarter 

2009

1st 

Quarter 

2009

4th 

Quarter 

2008

3rd 

Quarter 

2008

2nd 

Quarter 

2008

1st 

Quarter 

2008

4th 

Quarter 

2007

3rd 

Quarter 

2007

2nd 

Quarter 

2007

1st 

Quarter 

2007

Beginning Fund Balance ..... -$20,862 -$8,243 $10,368 $13,007 $17,276 $34,588 $45,217 $52,843 $52,413 $51,754 $51,227 $50,745 $50,165

Changes in Fund Balance:

Assessments earned .............. 3,278 3,042 2,965 9,095 2,615 996 881 640 448 239 170 140 94

Interest earned on 

investment securities ...... 62 76 176 240 212 277 526 651 618 585 640 748 567

Realized Gain on Sale of

Investments ...................... 0 0 732 521 136 302 473 0 0 0 0 0 0

Operating expenses ............... 345 379 328 298 266 290 249 256 238 262 243 248 239

Provision for insurance 

losses ............................... 3,021 17,766 21,694 11,615 6,637 19,163 11,930 10,221 525 39 132 -3 -73

All other income, 

net of expenses ............... 22 2,721 308 375 2 15 16 1 0 -2 24 1 4

Unrealized gain/(loss) on 

available-for-sale 

securities ......................... 149 -313 -770 -957 -331 551 -346 1,559 127 138 68 -162 81

Total fund balance change ..... 145 -12,619 -18,611 -2,639 -4,269 -17,312 -10,629 -7,626 430 659 527 482 580

Ending Fund Balance ........... -20,717 -20,862 -8,243 10,368 13,007 17,276 34,588 45,217 52,843 52,413 51,754 51,227 50,745

Percent change from 

four quarters earlier ......... NM NM NM -77.07 -75.39 -67.04 -33.17 -11.73 4.13 4.48 3.52

Reserve Ratio (%) ................. -0.38 -0.39 -0.16 0.22 0.27 0.36 0.76 1.01 1.19 1.22

Estimated Insured 

Deposits** .............................. 5,462,644 5,392,677 5,304,695 4,817,614 4,831,129 4,775,133 4,558,937 4,468,240 4,439,491 4,292,940 4,243,129 4,235,314 4,245,447

Percent change from 

four quarters earlier ......... 13.07 12.93 16.36 7.82 8.82 11.23 7.44 5.50 4.57 3.34 3

Domestic Deposits ............... 7,709,420 7,714,167 7,564,731 7,571,019 7,567,128 7,529,934 7,244,167 7,036,919 7,078,340 6,922,406 6,748,520 6,699,156 6,702,779

Percent change from 

four quarters earlier ......... 1.88 2.45 4.43 7.59 6.91 8.78 7.34 5.04 5.60 4.25 4

Number of institutions 

reporting ......................... 7,942 8,022 8,109 8,205 8,257 8,315 8,394 8,462 8,505 8,545 8,570 8,625 8,661

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

3/07 50,745 4,245,447

6/07 51,227 4,235,314

9/07 51,754 4,243,129

12/07 52,413 4,292,940

3/08 52,843 4,439,491

6/08 45,217 4,468,240

9/08 34,588 4,558,937

12/08 17,276 4,775,133

3/09 13,007 4,831,129

6/09 10,368 4,817,614

9/09 -8,243 5,304,695

12/09 -20,862 5,392,677

3/10 -20,717 5,462,644

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

(dollar figures in millions) 2010  2009** ** 2009 2008 2007 2006 2005

Problem Institutions

Number of institutions ��������������������������������������������������������������� 775 305 702 252 76 50 52

Total assets�������������������������������������������������������������������������������� $431,189 $220,047 $402,782 $159,405 $22,189 $8,265 $6,607

Failed Institutions

Number of institutions ��������������������������������������������������������������� 41 21 140 25 3 0 0

Total assets�������������������������������������������������������������������������������� $22,140 $9,498 $169,709 $371,945 $2,615 $0 $0

Assisted Institutions***

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

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

* Preliminary unaudited fund data, which are subject to change. NM - Not meaningf

** The Emergency Economic Stabilization Act of 2008 directs the FDIC not to consider the temporary coverage increase to $250,000 in setting assessments. Therefore, we do not include

the additional insured deposits in calculating the fund reserve ratio, which guides our assessment planning, from fourth quarter 2008 through second quarter 2009. The Helping Families

Save Their Homes Act of 2009 eliminated the prohibition against the FDIC’s taking the temporary increase into account when setting assessments. Beginning in the third quarter of 2009,

estimates of insured deposits include the temporary coverage increase to $250,000

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

received assistance in 2009

****Through March 31
FDIC Quarterly 17 2010, Volume 4, No. 2

Quarterly Banking Profile

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

(dollar figures in millions) 

March 31, 2010

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ����������������������������������������������� 6,772 $12,086,503 $6,787,692 $4,649,672

 FDIC-Supervised ������������������������������������������������������������������� 4,485 1,952,489 1,482,631 1,185,569

 OCC-Supervised�������������������������������������������������������������������� 1,446 8,471,255 4,305,510 2,826,502

 Federal Reserve-Supervised������������������������������������������������� 841 1,662,760 999,551 637,601

FDIC-Insured Savings Institutions ���������������������������������������������� 1,160 1,270,122 904,055 803,066

 OTS-Supervised Savings Institutions������������������������������������ 755 950,168 667,393 596,399

 FDIC-Supervised State Savings Banks��������������������������������� 405 319,954 236,662 206,667

Total Commercial Banks and Savings Institutions ���������������������� 7,932 13,356,625 7,691,747 5,452,738

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks ������������������������������������������������� 10 28,018 17,673 9,9

Total FDIC-Insured Institutions���������������������������������������������������� . 7,942 13,384,643 7,709,420 5,462,6

* Excludes $1.51 trillion in foreign office deposits, which are uninsure

Table IV-B. Distribution of Institutions and Domestic Deposits Among Risk Categories

Quarter Ending December 31, 2009

(dollar figures in billions)

Annual 

Rate in

Basis Points*

Number of 

Institutions

Percent 

of Total 

Institutions

Domestic 

Deposits

Percent 

of Total 

Domestic 

Deposits

Risk Category 

 7.00–12.00 1,812 22.59 619 

12.01–14.00 1,629 20.31 2,129 2

14.01–15.99 2,381 29.68 1,909 2

 16.00–24.00 259 3.23 349 

Risk Category I

 17.00–22.00 906 11.29 1,948 2

 22.01–43.00 307 3.83 447 

Risk Category II

 27.00–32.00 358 4.46 101 

 32.01–58.00 187 2.33 125 

Risk Category IV 40.00–45.00 107 1.33 36

 45.01–77.50 76 0.95 52 

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of December 31, 2009. Rates do not reflect

the application of assessment credits. See Notes to Users for further information on risk categories and rate

* Assessment rates with a given risk category vary for several reasons, see 12 CFR Part 327

http://www.fdic.gov/deposit/insurance/initiative/09FinalAD35.
FDIC Quarterly 18 2010, Volume 4, No. 2

FDIC Responds to Market Disruptions with TLGP

The FDIC Board approved the Temporary Liquidity 

Guarantee Program (TLGP) on October 13, 2008, 

as major disruptions in credit markets blocked access 

to liquidity for financial institutions.1 The TLGP 

improved access to liquidity through two programs: the 

Transaction Account Guarantee Program (TAGP), 

which fully guarantees noninterest-bearing transaction 

deposit accounts above $250,000, regardless of dollar 

amount; and the Debt Guarantee Program (DGP), 

which guarantees eligible senior unsecured debt issued 

by eligible institutions.

All insured depository institutions were eligible to 

participate in the TAGP. Institutions eligible for participation in the DGP were insured depository institutions, 

U.S. bank holding companies, certain U.S. savings and 

loan holding companies, and other affiliates of insured 

depository institutions that the FDIC designated as 

eligible entities.

FDIC Extends Guarantee Programs

Although financial markets improved significantly in 

the first half of 2009, portions of the industry were still 

affected by the recent economic turmoil. To facilitate 

the orderly phase-out of the TLGP, and to continue 

access to FDIC guarantees where they were needed, the 

FDIC Board extended both the DGP and TAGP.

On March 17, 2009, the Board of Directors of the FDIC 

voted to extend the deadline for issuance of guaranteed 

debt from June 30, 2009, to October 31, 2009, and 

extended the expiration date of the guarantee to the 

earlier of maturity of the debt or December 31, 2012, 

from June 30, 2012. The FDIC imposed a surcharge on 

debt issued with a maturity of one year or more begin1

 The FDIC invoked the systemic risk exception pursuant to section 

141 of the Federal Deposit Improvement Act of 1991, 12 U.S.C 

1823(c)(4) on October 13, 2008. For further information on the TLGP, 

see http://www.fdic.gov/regulations/resources/TLGP/index.html. 

ning in second quarter 2009.2 The Board adopted a 

final rule on October 20, 2009, that allowed the DGP 

to expire on October 31, 2009.3

A final rule extending the TAGP six months, to June 

30, 2010, was adopted on August 26, 2009. Entities 

participating in the TAGP had the opportunity to opt 

out of the extended program. Depository institutions 

that remain in the extended program are subject to 

increased fees that are adjusted to reflect the institution’s risk.4

On April 13, 2010, the FDIC adopted an interim final 

rule extending the TAGP for another six months, 

through December 31, 2010. Under the rule, the FDIC 

may extend the program for an additional 12 months 

without further rulemaking.5

Program Funded by Industry Fees and Assessments

The TLGP does not rely on taxpayer funding or the 

Deposit Insurance Fund. Both the TAGP and the DGP 

are paid for by direct user fees. Institutions participating 

in the TAGP through year-end 2009 were assessed 

an annual fee of 10 basis points. Fees for qualifying 

noninterest-bearing transaction accounts guaranteed 

between January 1, 2010, and June 30, 2010, are based 

on the participating entity’s risk category assignment 

under the FDIC’s risk-based premium system. Annualized fees are 15, 20, or 25 basis points, depending on an 

institution’s risk category.

Fees for participation in the DGP were based on the 

maturity of debt issued and ranged from 50 to 100 basis 

points (annualized). A surcharge was imposed on debt 

issued with a maturity of one year or greater after April 

1, 2009. For debt that was not issued under the exten2

 See http://www.fdic.gov/news/board/Mar1709rule.pdf 3

 See http://www.fdic.gov/regulations/laws/federal/2009/09finalAD37

Oct23.pdf. 4

 See http://www.fdic.gov/news/board/aug26no3.pdf. 5

 See http://www.fdic.gov/news/news/press/2010/pr10075.html. 

■ Debt Guarantee Program Ended October 31, 2009

■ Transaction Account Guarantee Program Extended to December 31, 2010

■ $279 Billion Guaranteed in Transaction Accounts over $250,000

■ $305 Billion Outstanding in Debt Guarantee Program

TEMPORARY LIQUIDITY GUARANTEE PROGRAM
FDIC Quarterly 19 2010, Volume 4, No. 2

Quarterly Banking Profile

Table I-C. Participation in Temporary Liquidity Guarantee Program

March 31, 2010 Total 

Eligible Entities

Number 

Opting In

Percent 

Opting In

Transaction Account Guarantee Program Extension to June 30, 2010

Depository Institutions with Assets <= $10 Billion�������������������������������������������������� 7,835 6,258 79.9

Depository Institutions with Assets > $10 Billion ���������������������������������������������������� 107 67 62.6

 Total Depository Institutions*���������������������������������������������������������������������������� 7,942 6,325 79.6

Debt Guarantee Program

Depository Institutions with Assets <= $10 Billion�������������������������������������������������� 7,835 4,161 53.1

Depository Institutions with Assets > $10 Billion ���������������������������������������������������� 107 96 89.7

 Total Depository Institutions*���������������������������������������������������������������������������� 7,942 4,257 53.6

Bank and Thrift Holding Companies and Non-Insured Affiliates ��������������������������� 6,071 3,421 56.3

 All Entities���������������������������������������������������������������������������������������������������������� 14,013 7,678 54.8

* Depository institutions include insured branches of foreign banks (IBAs)

$305 Billion in FDIC-Guaranteed Debt Was 

Outstanding at March 31, 2010

Seventy-nine financial entities—49 insured depository 

institutions and 30 bank and thrift holding companies 

and nonbank affiliates—had $305 billion in guaranteed 

debt outstanding at the end of first quarter 2010. Some 

banking groups issued FDIC-guaranteed debt at both 

the subsidiary and holding company level, but most 

guaranteed debt was issued by holding companies or 

nonbank affiliates of depository institutions. Bank and 

thrift holding companies and nonbank affiliates issued 

81 percent of FDIC-guaranteed debt outstanding at 

March 31, 2010.

Debt outstanding at March 31, 2010, had longer term 

at issuance, compared to debt outstanding at year-end 

2008. Less than 1 percent of debt outstanding matures 

in 180 days or less, compared to 49 percent at year-end 

2008; and 79 percent matures more than two years after 

issuance, compared to 39 percent at December 31, 

2008. Among types of debt instruments, 91 percent 

was in medium-term notes, compared to 44 percent at 

year-end. The share of outstanding debt in commercial 

paper fell to less than 0.1 percent from 43 percent at 

year-end 2008.

Author: Katherine Wyatt

Chief, Financial Analysis Section

Division of Insurance and Research

(202) 898-6755

sion, that is, debt issued on or before June 30, 2009, and 

maturing on or before June 30, 2012, surcharges were 

10 basis points (annualized) on debt issued by insured 

depository institutions and 20 basis points (annualized) 

on debt issued by other participating entities. For debt 

issued under the extension, that is, debt issued after 

June 30, 2009, or debt that matures after June 30, 2012, 

surcharges were 25 basis points (annualized) on debt 

issued by insured depository institutions and 50 basis 

points (annualized) on debt issued by other participating entities. As of March 31, 2010, fees totaling $10.4 

billion had been assessed under the DGP.

A Majority of Eligible Entities Have Chosen to 

Participate in the TLGP

Almost 80 percent of FDIC-insured institutions opted 

in to the TAGP extension through June 30, 2010. 

More than half of all eligible entities elected to opt in 

to the DGP. Lists of institutions that opted out of the 

guarantee programs are posted at http://www.fdic.gov/

regulations/resources/TLGP/optout.html.

$279 Billion in Transaction Accounts over $250,000 

Guaranteed

According to first quarter 2010 Call and Thrift Financial Reports, insured institutions reported 305,302 

noninterest-bearing transaction accounts over 

$250,000, about half the number of accounts reported 

at year-end 2009. These deposit accounts totaled $356 

billion, of which $279 billion was guaranteed under the 

TAGP. More than 5,500 FDIC-insured institutions 

reported noninterest-bearing transaction accounts over 

$250,000 in value.
FDIC Quarterly 20 2010, Volume 4, No. 2

Table V-C. Fees Assessed Under TLGP

(dollar figures in millions)

Debt Guarantee Program

Transaction Account 

Guarantee Program*

Fees Assessed Surcharges Total Fee Amount Fees Collecte

Fourth Quarter 2008�������������������������������������������������������������� $3,437 $3,437

First Quarter 2009 ����������������������������������������������������������������� 3,433 3,433 90

Second Quarter 2009 ������������������������������������������������������������ 1,413 385 1,797 179

Third Quarter 2009 ���������������������������������������������������������������� 691 280 971 182

Fourth Quarter 2009�������������������������������������������������������������� 503 207 709 188

First Quarter 2010** 14 14 207

Total��������������������������������������������������������������������������������� $9,491 $872 $10,363 $846

* Pro-rated payment in arrears

** A review of data systems led us to recognize a nominal fee amount that had been dropped in error from previously reported amounts

Table VI-C. Term at Issuance of Debt Instruments Outstanding

March 31, 2010

(dollar figures in millions)

Commercial 

Paper

Interbank

Eurodollar

Deposits

Medium 

Term Notes

Other 

Interbank 

Deposits

Other 

Senior

Unsecured

Debt

Other 

Term Note All Debt

Share 

by Term

Term at Issuance

90 days or less�������������������������������������� $0 $0 $0 $0 $0 $0 $0 0.0%

91-180 days������������������������������������������� 0 0 0 2 0 0 2 0.0%

181-364 days����������������������������������������� 0 0 0 65 1 1 67 0.0%

1-2 years ����������������������������������������������� 0 0 57,876 3 0 4,773 62,651 20.5%

Over 2-3 years �������������������������������������� 0 0 80,447 0 3,352 6,005 89,803 29.4%

Over 3 years������������������������������������������ 1 0 139,985 4 3,713 9,151 152,853 50.1%

Total������������������������������������������������ 1 0 278,307 74 7,065 19,929 305,376

Share of Total���������������������������������������� 0.0% 0.0% 91.1% 0.0% 2.3% 6.5%

Table IV-C. Debt Outstanding in Guarantee Program 

March 31, 2010

(dollar figures in millions) Number Debt Outstanding Cap1 for Group

Debt Outstanding 

Share of Ca

Insured Depository Institutions

Assets <= $10 Billion ������������������������������������������������������� 32 $1,593 $2,852 55.8

Assets > $10 Billion ��������������������������������������������������������� 17 55,881 210,244 26.6

Bank and Thrift Holding Companies,

Noninsured Affiliates�������������������������������������������������������������� 30 247,903 387,487 64.0

All Issuers����������������������������������������������������������������������� 79 305,376 600,582 50.8

1

 The amount of FDIC-guaranteed debt that can be issued by each eligible entity, or its “cap,” is based on the amount of senior unsecured debt outstanding as of 

September 30, 2008. The cap for a depository institution with no senior unsecured debt outstanding at September 30, 2008, is set at 2 percent of total liabilitie

See http://www2.fdic.gov/qbp/2008dec/tlgp2c.html for more informat

Table III-C. Transaction Account Guarantee Program

(dollar figures in millions) Mar. 31, 

2009

June 30, 

2009

Sep. 30,

2009

Dec. 31, 

2009

Mar. 31, 

2010

% Change 

09Q4-10Q1

Number of Noninterest-Bearing Transaction Accounts 

over $250,000�������������������������������������������������������������� 586,910 681,429 646,997 687,741 305,302 -55.6

Amount in Noninterest-Bearing Transaction Accounts 

over $250,000�������������������������������������������������������������� $854,934 $903,762 $926,401 $1,007,010 $355,800 -64.7

Amount Guaranteed ���������������������������������������������������������� $708,207 $733,405 $764,652 $835,074 $279,475 -66.5

Table II-C. Cap on FDIC-Guaranteed Debt for Opt-In Entities

March 31, 2010

(dollar figures in millions)

Opt-In Entities with Senior Unsecure

Debt Outstanding at 9/30/2008

Opt-In Depository Institutions 

with no Senior Unsecure

Debt at 9/30/2008

Number 

 Debt Amount 

as of 

9/30/2008 Initial Cap Number

2% Liabilities 

as of 

9/30/2008

Total 

Entities

Total Initial 

Cap 

Depository Institutions with Assets 

<= $10 Billion*������������������������������������ 114 $3,507 $4,384 4,047 $31,211 4,161 $35,595

Depository Institutions with Assets 

> $10 Billion*�������������������������������������� 39 269,228 336,535 57 24,392 96 360,927

Bank and Thrift Holding Companies, 

Noninsured Affiliates�������������������������������� 83 397,727 497,158 3,338 N/A 3,421 497,158

Total��������������������������������������������������������� 236 670,462 838,078 7,442 55,603 7,678 893,681

* Depository institutions include insured branches of foreign banks (IBAs). N/A - Not applicab
FDIC Quarterly 21 2010, Volume 4, No. 2

Quarterly Banking Profile

period amount plus end-of-period amount plus any interim 

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

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

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

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

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

across state lines or change their charters, resulting in an 

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

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Extended Net Operating Loss Carryback Period – The Worker, 

Homeownership, and Business Assistance Act of 2009, which 

was enacted on November 6, 2009, permits banks and other 

businesses, excluding those banking organizations that 

received capital from the U.S. Treasury under the Troubled 

Asset Relief Program, to elect a net operating loss carryback 

period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after 

December 31, 2007, and beginning before January 1, 2010. 

For calendar year banks, this extended carryback period 

applies to either the 2008 or 2009 tax year. The amount of 

the net operating loss that can be carried back to the fifth 

carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to 

other carryback years.

Under generally accepted accounting principles, banks may 

not record the effects of this tax change in their balance 

sheets and income statements for financial and regulatory 

reporting purposes until the period in which the law was 

enacted, i.e., the fourth quarter of 2009. Therefore, banks 

should recognize the effects of this fourth quarter 2009 tax 

law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in 

their Call Reports for December 31, 2009. Banks should not 

amend their Call Reports for prior quarters for the effects of 

the extended net operating loss carryback period.

The American Recovery and Reinvestment Act of 2009, 

which was enacted on February 17, 2009, permits qualifying 

small businesses, including FDIC-insured institutions, to elect 

a net operating loss carryback period of three, four, or five 

years instead of the usual carryback period of two years for 

any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accepted accounting principles, institutions may not record the 

effect of this tax change in their balance sheets and income 

statements for financial and regulatory reporting purposes 

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

quarter of 2009.

Other-Than-Temporary Impairment – When the fair value of an 

investment in a debt or equity security is less than its cost 

basis, the impairment is either temporary or other-thanNotes to Users

This publication contains financial data and other information for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

time.

Tables I-A through VIII-A.

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

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

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

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

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

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

while other tables aggregate institutions by asset size and 

geographic region. Quarterly and full-year data are provided 

for selected indicators, including aggregate condition and 

income data, performance ratios, condition ratios, and structural changes, as well as past due, noncurrent, and charge-off 

information for loans outstanding and other assets.

Tables I-B through IV-B.

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

comparative quarterly data related to the Deposit Insurance 

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

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by 

the FDIC through the DIF are not included in the FDIC 

Quarterly Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies 

are not included unless otherwise indicated. Efforts are made 

to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for 

institutions that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. This information is stored on and retrieved from 

the FDIC’s Research Information System (RIS) data base.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required 

to file separate reports. Data from subsidiary institution 

reports are included in the Quarterly Banking Profile tables, 

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

for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS Thrift Financial Reports

to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports.

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-of-
FDIC Quarterly 22 2010, Volume 4, No. 2

Business Combinations and Noncontrolling (Minority) Interests – 

In December 2007, the FASB issued Statement No. 141 

(Revised), Business Combinations (FAS 141(R)), and Statement No. 160, Noncontrolling Interests in Consolidated Financial 

Statements (FAS 160). Under FAS 141(R), all business combinations, including combinations of mutual entities, are to 

be accounted for by applying the acquisition method. FAS 

160 defines a noncontrolling interest, also called a minority 

interest, as the portion of equity in an institution’s subsidiary 

not attributable, directly or indirectly, to the parent institution. FAS 160 requires an institution to clearly present in its 

consolidated financial statements the equity ownership in and 

results of its subsidiaries that are attributable to the noncontrolling ownership interests in these subsidiaries. FAS 141(R) 

applies prospectively to business combinations for which the 

acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. 

Similarly, FAS 160 is effective for fiscal years beginning on or 

after December 15, 2008. Thus, for institutions with calendar 

year fiscal years, these two accounting standards take effect in 

2009. Beginning in March 2009, Institution equity capital 

and Noncontrolling interests are separately reported in arriving at Total equity capital and Net income.

FASB Statement No. 157 Fair Value Measurements issued in 

September 2006 and FASB Statement No. 159 The Fair Value 

Option for Financial Assets and Financial Liabilities issued in February 

2007 – both are effective in 2008 with early adoption permitted in 2007. FAS 157 defines fair value and establishes a 

framework for developing fair value estimates for the fair value 

measurements that are already required or permitted under 

other standards. FASB FSP 157-4, issued in April 2009, provides additional guidance for estimating fair value in accordance with FAS 157 when the volume and level of activity for 

the asset or liability have significantly decreased. The FSP also 

includes guidance on identifying circumstances that indicate a 

transaction is not orderly. The FSP is effective for interim and 

annual reporting periods ending after June 15, 2009, with early 

adoption permitted for periods ending after March 15, 2009.

Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value 

go through earnings for trading securities and most derivatives. Changes in the fair value of available-for-sale securities 

are reported in other comprehensive income. Available-forsale securities and held-to-maturity debt securities are written 

down to fair value if impairment is other than temporary and 

loans held for sale are reported at the lower of cost or fair 

value.

FAS 159 allows institutions to report certain financial assets 

and liabilities at fair value with subsequent changes in fair 

value included in earnings. In general, an institution may 

elect the fair value option for an eligible financial asset or liability when it first recognizes the instrument on its balance 

sheet or enters into an eligible firm commitment.

FASB Statement No. 158 Employers’ Accounting for Defined Benefit 

Pension and Other Postretirement Plans – issued in September 

2006 requires a bank to recognize in 2007, and subsequently, 

the funded status of its postretirement plans on its balance 

sheet. An overfunded plan is recognized as an asset and an 

underfunded plan is recognized as a liability. An adjustment is 

made to equity as accumulated other comprehensive income 

(AOCI) upon application of FAS 158, and AOCI is adjusted 

temporary. To determine whether the impairment is otherthan-temporary, an institution must apply other pertinent 

guidance such as paragraph 16 of FASB Statement No. 115, 

Accounting for Certain Investments in Debt and Equity Securities; 

FASB Staff Position (FSP) FAS 115-1 and FAS 124-1, 

The Meaning of Other-Than-Temporary Impairment and Its 

Application to Certain Investments; FSP FAS 115-2 and FAS 

124-2, Recognition and Presentation of Other-Than-Temporary 

Impairments; paragraph 6 of Accounting Principles Board 

Opinion No. 18, The Equity Method of Accounting for 

Investments in Common Stock; Emerging Issues Task Force 

(EITF) Issue No. 99-20, Recognition of Interest Income and 

Impairment on Purchased Beneficial Interests and Beneficial 

Interests That Continue to Be Held by a Transferor in Securitized 

Financial Assets; and FSP EITF 99-20-1, Amendments to the 

Impairment Guidance of EITF Issue No. 99-20.

Under FSP FAS 115-2 and FAS 124-2 issued on April 9, 

2009, if the present value of cash flows expected to be collected on a debt security is less than its amortized cost basis, a 

credit loss exists. In this situation, if an institution does not 

intend to sell the security and it is not more likely than not 

that the institution will be required to sell the debt security 

before recovery of its amortized cost basis less any currentperiod credit loss, an other-than-temporary impairment has 

occurred. The amount of the total other-than-temporary 

impairment related to the credit loss must be recognized in 

earnings, but the amount of the total impairment related to 

other factors must be recognized in other comprehensive 

income, net of applicable taxes. Although the debt security 

would be written down to its fair value, its new amortized cost 

basis is the previous amortized cost basis less the other-thantemporary impairment recognized in earnings. In addition, if 

an institution intends to sell a debt security whose fair value 

is less than its amortized costs basis or it is more likely than 

not that the institution will be required to sell the debt security before recovery of its amortized cost basis, an other-thantemporary impairment has occurred and the entire difference 

between the security’s amortized cost basis and its fair value 

must be recognized in earnings.

For any debt security held at the beginning of the interim 

period in which FSP FAS 115-2 and FAS 124-2 is adopted 

for which an other-than-temporary impairment loss has been 

previously recognized, if an institution does not intend to sell 

such a debt security and it is not more likely than not that 

the institution will be required to sell the debt security before 

recovery of its amortized cost basis, the institution should 

recognize the cumulative effect of initially applying the FSP 

as an adjustment to the interim period’s opening balance of 

retained earnings, net of applicable taxes, with a corresponding adjustment to accumulated other comprehensive income. 

The cumulative effect on retained earnings must be calculated by comparing the present value of the cash flows expected 

to be collected on the debt security with the security’s amortized cost basis as of the beginning of the interim period of 

adoption.

FSP FAS 115-2 and FAS 124-2 are effective for interim and 

annual reporting periods ending after June 15, 2009. Early 

adoption of this FSP is permitted for periods ending after 

March 15, 2009, if certain conditions are met. Institutions are 

expected to adopt FSP FAS 115-2 and 124-2 for regulatory 

reporting purposes in accordance with the FSP’s effective date.
FDIC Quarterly 23 2010, Volume 4, No. 2

Quarterly Banking Profile

qualitative assessment to determine whether its variable interest or interests give it a controlling financial interest in a VIE. 

If a bank’s variable interest or interests provide it with the 

power to direct the most significant activities of the VIE, and 

the right to receive benefits or the obligation to absorb losses 

that could potentially be significant to the VIE, the bank is 

the primary beneficiary of, and therefore must consolidate, 

the VIE.

Both FAS 166 and FAS 167 take effect as of the beginning of 

each bank’s first annual reporting period that begins after 

November 15, 2009, for interim periods therein, and for 

interim and annual reporting periods thereafter (i.e., as of 

January 1, 2010, for banks with a calendar year fiscal year). 

Earlier application is prohibited. Banks are expected to adopt 

FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also, 

FAS 166 has modified the criteria that must be met in order 

for a transfer of a portion of a financial asset, such as a loan 

participation, to qualify for sale accounting. These changes 

apply to transfers of loan participations on or after the effective date of FAS 166. Therefore, banks with a calendar year 

fiscal year must account for transfers of loan participations on 

or after January 1, 2010, in accordance with FAS 166. In general, loan participations transferred before the effective date 

of FAS 166 (January 1, 2010, for calendar year banks) are not 

affected by this new accounting standard and pre-FAS 166 

participations that were properly accounted for as sales under 

FASB Statement No. 140 will continue to be reported as 

having been sold.

FASB Interpretation No. 48 on Uncertain Tax Positions – FASB 

Interpretation No. 48, Accounting for Uncertainty in Income 

Taxes (FIN 48), was issued in June 2006 as an interpretation 

of FASB Statement No. 109, Accounting for Income Taxes. 

Under FIN 48, the term “tax position” refers to “a position in 

a previously filed tax return or a position expected to be 

taken in a future tax return that is reflected in measuring 

current or deferred income tax assets and liabilities.” FIN 48 

further states that a “tax position can result in a permanent 

reduction of income taxes payable, a deferral of income taxes 

otherwise currently payable to future years, or a change in the 

expected realizability of deferred tax assets.” FIN 48 was originally issued effective for fiscal years beginning after December 

15, 2006. Banks must adopt FIN 48 for Call Report purposes 

in accordance with the interpretation’s effective date except 

as follows. On December 31, 2008, the FASB decided to defer 

the effective date of FIN 48 for eligible nonpublic enterprises 

and to require those enterprises to adopt FIN 48 for annual 

periods beginning after December 15, 2008. A nonpublic 

enterprise under certain conditions is eligible for deferral, 

even if it opted to issue interim or quarterly financial information in 2007 under earlier guidance that reflected the 

adoption of FIN 48.

FASB Statement No. 123 (Revised 2004) and Share-Based 

Payments – refer to previously published Quarterly Banking 

Profile notes: http://www2.fdic.gov/qbp/2008dec/qbpnot.html

FASB Statement No. 133 Accounting for Derivative Instruments and 

Hedging Activities – refer to previously published Quarterly 

Banking Profile notes: http://www2.fdic.gov/qbp/2008dec/

qbpnot.html

in subsequent periods as net periodic benefit costs are recognized in earnings.

FASB Statement No. 156 Accounting for Servicing of Financial Assets

– issued in March 2006 and effective in 2007, requires all separately recognized servicing assets and liabilities to be initially 

measured at fair value and allows a bank the option to subsequently adjust that value by periodic revaluation and recognition of earnings or by periodic amortization to earnings.

FASB Statement No. 155 Accounting for Certain Hybrid Financial 

Instruments – issued in February 2006, requires bifurcation of 

certain derivatives embedded in interests in securitized financial assets and permits fair value measurement (i.e., a fair 

value option) for any hybrid financial instrument that contains an embedded derivative that would otherwise require 

bifurcation under FASB Statement No. 133, Accounting for 

Derivative Instruments and Hedging Activities (FAS 133). In 

addition, FAS 155 clarifies which interest-only and principalonly strips are not subject to FAS 133.

Purchased Impaired Loans and Debt Securities – Statement of 

Position 03-3, Accounting for Certain Loans or Debt Securities 

Acquired in a Transfer. The SOP applies to loans and debt 

securities acquired in fiscal years beginning after December 

15, 2004. In general, this Statement of Position applies to 

“purchased impaired loans and debt securities” (i.e., loans and 

debt securities that a bank has purchased, including those 

acquired in a purchase business combination, when it is probable, at the purchase date, that the bank will be unable to 

collect all contractually required payments receivable). Banks 

must follow Statement of Position 03-3 for Call Report purposes. The SOP does not apply to the loans that a bank has 

originated, prohibits “carrying over” or creation of valuation 

allowances in the initial accounting, and any subsequent valuation allowances reflect only those losses incurred by the 

investor after acquisition.

GNMA Buy-back Option – If an issuer of GNMA securities has 

the option to buy back the loans that collateralize the 

GNMA securities, when certain delinquency criteria are met, 

FASB Statement No. 140 requires that loans with this buyback option must be brought back on the issuer’s books as 

assets. The rebooking of GNMA loans is required regardless 

of whether the issuer intends to exercise the buy-back option. 

The banking agencies clarified in May 2005 that all GNMA 

loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms.

FASB Statements 166 & 167 – In June 2009, the FASB issued 

Statement No. 166, Accounting for Transfers of Financial 

Assets (FAS 166), and Statement No. 167, Amendments to 

FASB Interpretation No. 46(R) (FAS 167), which change 

the way entities account for securitizations and special purpose entities. FAS 166 revises FASB Statement No. 140, 

Accounting for Transfers and Servicing of Financial Assets 

and Extinguishments of Liabilities, by eliminating the concept of a “qualifying special-purpose entity,” creating the concept of a “participating interest,” changing the requirements 

for derecognizing financial assets, and requiring additional 

disclosures. FAS 167 revises FASB Interpretation No. 46(R), 

Consolidation of Variable Interest Entities, by changing how 

a bank or other company determines when an entity that is 

insufficiently capitalized or is not controlled through voting 

or similar rights, i.e., a “variable interest entity” (VIE), should 

be consolidated. Under FAS 167, a bank must perform a 
FDIC Quarterly 24 2010, Volume 4, No. 2

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified 

future date, a specific quantity of an underlying variable or 

index at a specified price or yield. These contracts exist for 

a variety of variables or indices, (traditional agricultural or 

physical commodities, as well as currencies and interest 

rates). Futures contracts are standardized and are traded on 

organized exchanges which set limits on counterparty credit 

exposure. Forward contracts do not have standardized terms 

and are traded over the counter.

Option contracts – contracts in which the buyer acquires the 

right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

(strike price) during a period or on a specified future date, 

in return for compensation (such as a fee or premium). The 

seller is obligated to purchase or sell the variable or index at 

the discretion of the buyer of the contract.

Swaps – obligations between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable 

or index by specified reference rates or prices. Except for 

currency swaps, the notional principal is used to calculate 

each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk, and operational risk, as well as, 

interest rate risk.

Domestic deposits to total assets – total domestic office deposits 

as a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn 

interest or dividend income.

Efficiency ratio – Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, 

so that a lower value indicates greater efficiency.

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).

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on 

the balance sheet—including trading assets and liabilities, 

available-for-sale securities, loans held for sale, assets and 

liabilities accounted for under the fair value option, and foreDEFINITIONS (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 – assessable deposits consist of DIF deposits 

(deposits insured by the FDIC Deposit Insurance Fund) in 

banks’ domestic offices with certain adjustments).

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller- provided credit enhancements.

Capital Purchase Program (CPP) – As announced in October 

2008 under the TARP, the Treasury Department purchase of 

noncumulative perpetual preferred stock and related warrants 

that is treated as Tier 1 capital for regulatory capital purposes 

is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued 

by publicly-traded banks are reflected as well in “Surplus.” 

Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock classified in a 

bank’s balance sheet as “Other liabilities.”

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land 

acquisition and development.

Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated 

subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including servicing 

rights) included in core capital is limited in accordance with 

supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

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.
FDIC Quarterly 25 2010, Volume 4, No. 2

Quarterly Banking Profile

trading liabilities, less revaluation losses on assets held in 

trading accounts.

Other real estate owned – primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that file a Thrift Financial Report (TFR), the 

valuation allowance subtracted also includes allowances for 

other repossessed assets. Also, for TFR filers the components 

of other real estate owned are reported gross of valuation 

allowances.

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on a 

scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

risk and supervisory concern, they are rated either a “4” or 

“5.” The number and assets of “problem” institutions are 

based on FDIC composite ratings. Prior to March 31, 2008, 

for institutions whose primary federal regulator was the OTS, 

the OTS composite rating was used.

Recourse – an arrangement in which a bank retains, in form or 

in substance, any credit risk directly or indirectly associated 

with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the 

bank’s claim on the asset. If a bank has no claim on an asset 

it has sold, then the retention of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on 

a consolidated basis.

Restructured loans and leases – loan and lease financing 

receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms.

Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total (consolidated) assets. The basic yardstick of bank 

profitability.

Return on equity – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital.

Risk-based capital groups – definition:

(Percent)

Total 

Risk-Based 

Capital*

Tier 1

Risk-Based 

Capital*

Tier 1 

Leverage

Tangible

Equity

Well-capitalized ≥10 and ≥6 and ≥5 –

Adequately 

capitalized ≥8 and ≥4 and ≥4 –

Undercapitalized ≥6 and ≥3 and ≥3 –

Significantly 

undercapitalized <6 or <3 or <3 and >2

Critically 

undercapitalized – – – ≤2

* As a percentage of risk-weighted assets.

closed assets—involves the use of fair values. During periods 

of market stress, the fair values of some financial instruments 

and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers.

Goodwill and other intangibles – intangible assets include servicing rights, purchased credit card relationships, and other 

identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired, less subsequent impairment adjustments. Other 

intangible assets are recorded at fair value, less subsequent 

quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties, and 

all other loans secured by real estate.

Loans to individuals – includes outstanding credit card balances 

and other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with 

remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other 

seller-provided credit enhancements provided by the reporting bank to securitizations.

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off.

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 charters – 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 
FDIC Quarterly 26 2010, Volume 4, No. 2

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

Initial base 

assessment rate 12–16 22 32 45

Unsecured debt 

adjustment -5 –0 -5–0 -5 –0 -5–0

Secured liability 

adjustment 0 –8 0 –11 0 –16 0 –22.5

Brokered deposit 

adjustment – 0 –10 0 –10 0 –10

Total base 

assessment rate 7–24.0 17–43.0 27–58.0 40–77.5

*All amounts for all risk categories are in basis points annually. Total base rates that are 

not the minimum or maximum rate will vary between these rates. 

Beginning in 2007, each institution is assigned a risk-based 

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment is generally 

due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are 

effective for assessment purposes as of the examination 

transmittal date. For institutions with long-term debt issuer 

ratings, changes in ratings are effective for assessment purposes as of the date the change was announced.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special 

assessment as of June 30, 2009. The special assessment was 

levied on each insured depository institution’s assets minus its 

Tier 1 capital as reported in its report of condition as of June 

30, 2009. The special assessment will be collected September 

30, 2009, at the same time that the risk-based assessment for 

the second quarter of 2009 is collected. The special assessment for any institution was capped at 10 basis points of the 

institution’s assessment base for the second quarter of 2009 

risk-based assessment.

Prepaid Deposit Insurance Assessments – On November 12, 

2009, the FDIC Board of Directors adopted a final rule requiring insured depository institutions (except those that are 

exempted) to prepay their quarterly risk-based deposit insurance assessments for the fourth quarter of 2009, and for all of 

2010, 2011, and 2012, on December 30, 2009. Each institution’s regular risk-based deposit insurance assessment for the 

third quarter of 2009, which is paid in arrears, also is payable 

on December 30, 2009.

Risk-weighted assets – assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 200 percent. A conversion factor is used to assign 

a balance sheet equivalent amount for selected off-balancesheet accounts.

Securities – excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated as 

“held-to-maturity,” which are reported at amortized cost 

(book value), and securities designated as “available-for-sale,” 

reported at fair (market) value.

Risk Categories and Assessment Rate Schedule – The current risk 

categories became effective January 1, 2007. Capital ratios 

and supervisory ratings distinguish one risk category from 

another. The following table shows the relationship of risk 

categories (I, II, III, IV) to capital and supervisory groups as 

well as the initial base assessment rates (in basis points), 

effective April 1, 2009 for each risk category. Supervisory 

Group A generally includes institutions with CAMELS 

composite ratings of 1 or 2; Supervisory Group B generally 

includes institutions with a CAMELS composite rating of 3; 

and Supervisory Group C generally includes institutions with 

CAMELS composite ratings of 4 or 5. For purposes of riskbased assessment capital groups, undercapitalized includes 

institutions that are significantly or critically undercapitalized.

Capital Category

Supervisory Group

A B C

1. Well Capitalized I

12–16 bps II

22 bps

III

32 bps

2. Adequately Capitalized II

22 bps

3. Undercapitalized III

32 bps

IV

45 bps

Effective April 1, 2009, the initial base assessment rates are 

12 to 45 basis points. An institution’s total assessment rate 

may be less than or greater than its initial base assessment 

rate as a result of additional risk adjustments.

The base assessment rates for most institutions in Risk 

Category I are based on a combination of financial ratios and 

CAMELS component ratings (the financial ratios method).

For large institutions in Risk Category I (generally those with 

at least $10 billion in assets) that have long-term debt issuer 

ratings, assessment rates are determined by equally weighting 

the institution’s CAMELS component ratings, long-term debt 

issuer ratings, and the financial ratios method assessment rate. 

For all large Risk Category I institutions, additional risk factors are considered to determine whether assessment rates 

should be adjusted. This additional information includes market data, financial performance measures, considerations of 

the ability of an institution to withstand financial stress, and 

loss severity indicators. Any adjustment is limited to no more 

than one basis point.

Effective April 1, 2009, the FDIC introduced three possible 

adjustments to an institution’s initial base assessment rate: 

(1) a decrease of up to 5 basis points for long-term unsecured 

debt and, for small institutions, a portion of Tier 1 capital; 

(2) an increase not to exceed 50 percent of an institution’s 

assessment rate before the increase for secured liabilities in 

excess of 25 percent of domestic deposits; and (3) for nonRisk Category I institutions, an increase not to exceed 10 

basis points for brokered deposits in excess of 10 percent of 

domestic deposits. After applying all possible adjustments, 

minimum and maximum total base assessment rates for each 

risk category are as follows:
FDIC Quarterly 27 2010, Volume 4, No. 2

Quarterly Banking Profile

Debt Guarantee Program (DGP) provides a full guarantee of 

senior unsecured debt1

 issued by eligible institutions after 

October 14, 2008. Initially, debt issued before June 30, 

2009, and maturing on or before June 30, 2012, could be 

guaranteed. On March 17, 2009, the deadline for issuance 

under the program was extended to October 31, 2009, and 

the expiration of the guarantee was set at the earlier of 

maturity of the debt or December 31, 2012. Institutions 

eligible for participation in the debt guarantee program 

include insured depository institutions, U.S. bank holding 

companies, certain U.S. savings and loan holding companies, and other affiliates of an insured depository institution 

that the FDIC designates as eligible entities. The FDIC 

Board adopted a final rule on October 20, 2009, that established a limited six-month emergency guarantee facility 

upon expiration of the DGP.

Trust assets – market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

equipment, collectibles, and household goods. Such fiduciary 

assets are not included in the assets of the financial 

institution.

Unearned income & contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home 

equity lines, commitments to make loans for construction, 

loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for 

sale, which are accounted for as derivatives on the balance 

sheet.)

Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities 

sold under agreements to repurchase, and other borrowings.

Yield on earning assets – total interest, dividend, and fee 

income earned on loans and investments as a percentage of 

average earning assets.

1

 Senior unsecured debt generally includes term Federal funds 

purchased, promissory notes, commercial paper, unsubordinated 

unsecured notes, certificates of deposit (CDs) standing to the credit of 

a bank, and U.S. dollar denominated bank deposits owed to an insured 

depository institution.

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.

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.

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.

Temporary Liquidity Guarantee Program (TLGP) – was approved 

by the FDIC Board on October 13, 2008. The TLGP was 

designed to help relieve the crisis in the credit markets by 

giving banks access to liquidity during a time of global financial distress. Participation in the TLGP is voluntary. The 

TLGP has two components:

Transaction Account Guarantee Program (TAGP) provides a full 

guarantee of non-interest-bearing deposit transaction 

accounts above $250,000, at depository institutions that 

elected to participate in the program. On August 26, 2009, 

the FDIC Board voted to extend the TAGP six months 

beyond its original expiration date to June 30, 2010. (On 

April 13, 2010, the FDIC Board adopted an interim rule 

extending the TAG program for six months through 

December 31, 2010, with a possibility of an additional 

12-month extension, through December 31, 2011.)