FDIC Quarterly 1 2009, Volume 3, No. 3

Quarterly Banking Profile Second Quarter 2009

The Industry Posts a Net Loss for the Quarter

Burdened by costs associated with rising levels of troubled loans and falling asset values, FDIC-insured 

commercial banks and savings institutions reported an 

aggregate net loss of $3.7 billion in the second quarter 

of 2009. Increased expenses for bad loans were chiefly 

responsible for the industry’s loss. Insured institutions 

added $66.9 billion in loan-loss provisions to their 

reserves during the quarter, an increase of $16.5 billion 

(32.8 percent) compared to the second quarter of 2008. 

Quarterly earnings were also adversely affected by 

writedowns of asset-backed commercial paper, and by 

higher assessments for deposit insurance. Almost two 

out of every three institutions (64.4 percent) reported 

lower quarterly earnings than a year ago, and more than 

one in four (28.3 percent) reported a net loss for the 

quarter. A year ago, the industry reported a quarterly 

profit of $4.7 billion, and fewer than one in five institutions (18 percent) were unprofitable. The average 

return on assets (ROA) was -0.11 percent, compared to 

0.14 percent in the second quarter of 2008.

Noninterest Income Grows 10.6 Percent 

Year-Over-Year

In addition to the $16.5-billion increase in loss provisions, the industry reported a $3.3 billion increase in 

extraordinary losses and a $1.7 billion (1.7 percent) 

year-over-year increase in noninterest expenses. The 

extraordinary losses stemmed from asset-backed 

commercial paper writedowns, while the increased 

noninterest expenses primarily reflected higher deposit 

insurance assessments. These negative factors were 

partially offset by higher noninterest income (up 

$6.5 billion, or 10.6 percent), increased net interest 

income (up $3.4 billion, or 3.5 percent), and a 

$1.5-billion reduction in realized losses on securities 

and other assets. Gains on asset sales (up $4.5 billion), 

increased trading revenue (up $4.5 billion), and higher 

servicing fees (up $3.6 billion) were the largest contributors to the year-over-year improvement in noninterest 

income.

■ Higher Loss Provisions Lead to a $3.7 Billion Net Loss

■ More Than One in Four Institutions Are Unprofitable

■ Charge-Offs and Noncurrent Loans Continue to Rise

■ Net Interest Margins Show Modest Improvement

■ Industry Assets Decline by $238 Billion

INSURED INSTITUTION PERFORMANCE

The Industry Posted Its Second Quarterly Loss

in the Past 18 Years

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

$ Billions

2005 2006 2007 2008 2009

-40

-30

-20

-10

0

10

20

30

40

50

60

Securities and Other Gains/Losses, Net

Net Operating Income

34.0 33.2 34.7 32.6

36.9 38.0 38.0 35.3 35.6 36.8

28.7

0.5

19.3

4.7 0.9

-37.3

5.5

-3.7

Chart 1 Chart 2

Increase in

Net Interest

Income

Increase in

Noninterest

Income

Decline in

Realized Losses

on Securities

Increase in

Extraordinary

Losses 

Increase in

Loan Loss

Provisions

Increase in

Noninterest

Expense

2nd Quarter 2009 vs. 2nd Quarter 2008

($ Billions) 

Higher Loss Provisions Still Weigh Heavily

on Industry Earnings

1.7

3.3

16.5

1.5

6.5

3.4

0

2

4

6

8

10

12

14

16

18

Positive Factors Negative

Factors
FDIC Quarterly 2 2009, Volume 3, No. 3

Chart 4

Margins Improved Slightly in the Second Quarter

Quarterly Net Interest Margin

(Percent)

3.60%

3.47%

2.5

3.0

3.5

4.0

4.5

1 2 3412341234 1 2 3412

Assets < $1 Billion

Assets > $1 Billion

2005 2006 2007 2008 2009

Margins Improve at a Majority of Institutions

Average net interest margins (NIMs) improved slightly 

from first quarter levels, as average funding costs fell 

more rapidly than average asset yields. The average 

margin increased to 3.48 percent from 3.39 percent in 

the first quarter and 3.37 percent in the second quarter 

of 2008. The consecutive-quarter improvement was 

relatively broad-based: more than half (56.5 percent) of 

all institutions reported higher NIMs than in the first 

quarter. However, the year-over-year improvement was 

concentrated among larger institutions. Only 45.3 

percent of insured institutions reported year-over-year 

NIM improvement. Despite the widening in margins, 

net interest income growth has been limited by recent 

shrinkage in earning asset portfolios. Interest-earning 

assets declined by $149.6 billion during the second 

quarter, following a $163.7 billion decline in the 

first quarter. In the 12 months ended June 30, the 

industry’s earning assets increased by only $18.3 billion 

(0.2 percent).

Net Charge-Off Rate Sets a Quarterly Record

Net charge-offs continued to rise, propelling the quarterly net charge-off rate to a record high. Insured institutions charged-off $48.9 billion in the second quarter, 

compared to $26.4 billion a year earlier. The annualized 

net charge-off rate in the second quarter was 2.55 

percent, eclipsing the previous quarterly record of 1.95 

percent reached in the fourth quarter of 2008. The 

$22.5 billion (85.3 percent) year-over-year increase in 

net charge-offs was led by loans to commercial and 

industrial (C&I) borrowers, which increased by $5.3 

billion (165.0 percent). Net charge-offs of credit card 

loans were $4.6 billion (84.5 percent) higher than a 

year earlier, and the annualized net charge-off rate on 

credit card loans reached a record 9.95 percent in the 

second quarter. Net charge-offs of real estate construction and development loans were up by $4.2 billion 

(117.0 percent), and charge-offs of loans secured by 

1–4 family residential properties were $4.0 billion 

(41.1 percent) higher than a year ago.

Noncurrent Loan Rate Rises to Record Level

The amount of loans and leases that were noncurrent 

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

increased for a 13th consecutive quarter, and the 

percentage of total loans and leases that were noncurrent reached a new record. Noncurrent loans and leases 

increased by $41.4 billion (14.3 percent) during the 

second quarter, led by 1–4 family residential mortgages 

(up $15.4 billion, or 12.7 percent), real estate construction and development loans (up $10.2 billion, or 16.6 

percent), and loans secured by nonfarm nonresidential 

real estate properties (up $7.1 billion, or 29.2 percent). 

Noncurrent home equity loans and junior lien mortgages fell for the first time in three years, declining by 

$1.7 billion and $1.5 billion, respectively. Noncurrent 

levels rose in all other major loan categories. Although 

the increase in total noncurrent loans was almost onethird smaller than the $59.7 billion increase in the first 

quarter, the average noncurrent rate on all loans and 

leases rose from 3.76 percent to 4.35 percent. This is 

the highest level for the noncurrent rate in the 26 years 

that insured institutions have reported noncurrent loan 

data. On a more positive note, loans that were 30–89 

days past due declined by $16.7 billion (10.6 percent). 

Chart 3

Provision Expenses Have Been Growing

in Signicance for Two Years

Loan Loss Provisions

(Percent of Quarterly Net Operating Revenue*)

0

10

20

30

40

50

60

2001 2002 2003 2004 2005 2006 2007 2008 2009

 40%

* Net operating revenue equals net interest income plus total noninterest income 
FDIC Quarterly 3 2009, Volume 3, No. 3

Quarterly Banking Profile

from 8.02 percent to 8.25 percent, while the total riskbased capital ratio rose from 13.42 percent to 13.76 

percent. However, fewer than half of all institutions 

reported increases in their regulatory capital ratios. 

Only 43.2 percent reported increased leverage capital 

ratios, and 47.0 percent had increased total risk-based 

capital ratios. Insured institutions paid $6.2 billion in 

dividends in the quarter, about two-thirds less than the 

$17.7 billion in dividends paid in the second quarter 

of 2008.

Industry Assets Decline for a Second 

Consecutive Quarter

Total assets declined by $238.1 billion (1.8 percent), 

following a $303.2-billion decline in the first quarter. 

Loans and leases accounted for more than half of the 

decline ($125.5 billion, or 52.7 percent of the total), 

while the industry’s balances at Federal Reserve banks 

fell by $99.4 billion (a 20.4 percent decline). As was 

the case in the first quarter, much of the decline in 

industry assets was concentrated at a few large institutions. More than 57 percent of institutions increased 

their assets during the second quarter, and a similar 

majority increased their loan balances. Among the loan 

categories registering the largest declines during the 

quarter were C&I loans (down $67.7 billion, or 4.7 

percent), 1–4 family residential mortgage loans (down 

$33.2 billion, or 1.6 percent), and real estate construction and development loans (down $31.0 billion, or 

5.5 percent). Assets in trading accounts declined by 

$65.5 billion (7.9 percent). The industry’s total securities holdings increased by $130.6 billion (5.9 percent).

This is the largest quarterly decline in dollar terms in 

the 26 years that these data have been reported, and 

the largest percentage decline since the first quarter of 

2004, when 30–89 day past due loans were one-third 

the current level. The decline in past due loans 

occurred across all major loan categories, but real estate 

loans accounted for 83.5 percent ($13.9 billion) of the 

total improvement. Restructured loans and leases that 

were in compliance with their modified terms increased 

by $13.7 billion (41.6 percent) at commercial and 

savings banks that file Call reports, as restructured 1–4 

family residential real estate loans rose by $10.2 billion 

(55.4 percent).

Institutions Continue to Add to Reserves

The industry’s reserves for loan losses increased by 

$16.8 billion (8.6 percent) during the second quarter, 

as loss provisions of $66.9 billion exceeded net chargeoffs of $48.9 billion. The ratio of reserves to total loans 

and leases set another new record, rising from 2.51 

percent to 2.77 percent. However, the pace of reserve 

building fell short of the rise in noncurrent loans, and 

the industry’s ratio of reserves to noncurrent loans fell 

from 66.8 percent to 63.5 percent, the lowest level 

since the third quarter of 1991.

Overall Capital Levels Register Improvement

Equity capital increased by $32.5 billion (2.4 percent), 

raising the industry’s equity-to-assets ratio from 10.13 

percent to 10.56 percent, the highest level since 

March 31, 2007. Average regulatory capital ratios 

increased as well. The leverage capital ratio increased 

Chart 5

Troubled Loans Increased at a Slower Rate

in the Second Quarter

$ Billions

-10

10

30

50

70

90

110

123412 3 4 123 412

2006 2007 2008 2009

Quarterly Change in Noncurrent Loans

Quarterly Net Charge-Offs

Chart 6

Noncurrent Loan Growth Is Outpacing

Growth in Reserves

0

50

100

150

200

250

300

350

12341234123412

0

20

40

60

80

100

120

140

160

180

$ Billions Percent

Noncurrent Loans ($ Billions)

Loan-Loss Reserves ($ Billions)

Coverage Ratio (Percent)

2006 2007 2008 2009
FDIC Quarterly 4 2009, Volume 3, No. 3

(4.9 percent), and deposits in interest-bearing accounts 

fell by $16.9 billion. Nondeposit liabilities declined by 

$337.3 billion (10.6 percent), as trading liabilities fell 

by $85.0 billion (23.7 percent), and FHLB advances 

dropped by $62.2 billion (8.9 percent). At the end of 

June, deposits funded 67.8 percent of the industry’s 

assets, the highest proportion since March 1998.

“Problem List” Expands to 15-Year High

The number of insured commercial banks and savings 

institutions reporting financial results fell to 8,195 in 

the quarter, down from 8,247 reporters in the first quarter. Thirty-nine institutions were merged into other 

institutions during the quarter, 24 institutions failed, 

and there were 12 new charters added. During the quarter, the number of institutions on the FDIC’s “Problem 

List” increased from 305 to 416, and the combined 

assets of “problem” institutions rose from $220.0 billion 

to $299.8 billion. This is the largest number of “problem” institutions since June 30, 1994, and the largest 

amount of assets on the list since December 31, 1993.

Author: Ross Waldrop, Sr. Banking Analyst

Division of Insurance and Research

(202) 898-3951

Small Business Loan Balances Declined Over the 

Past 12 Months

Annual data on loans to small businesses and farms 

indicate that the industry’s balances of these loans 

experienced shrinkage during the 12 months ended 

June 30 while loans to larger borrowers had a slight 

increase. Small C&I, agricultural, and nonresidential 

real estate loans1 declined by $14.8 billion (1.9 percent) 

between June 30, 2008, and June 30, 2009, compared to 

an increase of $2.2 billion (0.1 percent) in larger business and farm loans.

Institutions Reduce Their Reliance on Nondeposit 

Funding Sources

In contrast to the decline in industry assets, total deposits of insured institutions increased by $66.7 billion (0.7 

percent). Deposits in foreign offices accounted for more 

than three quarters ($51.0 billion, or 76.5 percent) of 

the increase in deposits. Domestic office deposits 

increased by only $15.7 billion (0.2 percent), as deposits in large denomination (> $250,000) non-interestbearing transaction accounts increased by $42.0 billion 

1

 C&I loans with original amounts of $1 million or less, loans secured 

by nonfarm nonresidential real estate with original amounts of $1 

million or less, real estate loans secured by farmland with original 

amounts of $500 thousand or less, and agricultural production loans 

with original amounts of $500 thousand or less.

Chart 7

Quarterly Percent Change in Total Loans and Leases

-3

-2

-1

0

1

2

3

4

5

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

All FDIC-Insured Institutions

(Percent)

Recessions

Chart 8

The Number of “Problem” Institutions

Is at a 15-Year High

48 50 47 50 53 61 65 76 90

117

171

252

305

416

0

50

100

150

200

250

300

350

400

450

1 2 3 4 1234123412

Number of Insured Institutions on the FDIC’s “Problem List” 

2006 2007 2008 2009
FDIC Quarterly 5 2009, Volume 3, No. 3

Quarterly Banking Profile

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2009** 2008** 2008 2007 2006 2005 2004

Return on assets (%)������������������������������������������������������������������������������������������������������ 0.04 0.36 0.04 0.81 1.28 1.

Return on equity (%)������������������������������������������������������������������������������������������������������� 0.38 3.55 0.37 7.75 12.30 12.4

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 8.25 7.89 7.47 7.97 8.22 8.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 2.77 1.40 1.89 0.95 0.54 0.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 2.24 1.16 1.29 0.59 0.39 0.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 0.01 8.47 6.20 9.89 9.04 7.6

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.43 3.35 3.18 3.29 3.31 3.

Net operating income growth (%)����������������������������������������������������������������������������������� -74.96 -65.31 -90.42 -27.58 8.53 11.

Number of institutions reporting������������������������������������������������������������������������������������� 8,195 8,451 8,305 8,534 8,680 8,833 8,976

Commercial banks��������������������������������������������������������������������������������������������������� 6,995 7,203 7,086 7,283 7,401 7,526 7,631

Savings institutions ������������������������������������������������������������������������������������������������� 1,200 1,248 1,219 1,251 1,279 1,307 1,345

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 26.94 16.99 24.67 12.08 7.94 6.

Number of problem institutions �������������������������������������������������������������������������������������� 416 117 252 76 50 52 80

Assets of problem institutions (in billions) ��������������������������������������������������������������������� $300 $78 $159 $22 $8 $7 $28

Number of failed institutions������������������������������������������������������������������������������������������� 24 4 25 3 0 0 4

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

* Excludes insured branches of foreign banks (IBAs)

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

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

(dollar figures in millions) 2nd Quarter

2009

1st Quarter

2009

2nd Quarter

2008

%Change 

08Q2-09Q2

Number of institutions reporting������������������������������������������������������������������������������������� 8,195 8,247 8,451 -3.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 2,092,896 2,114,672 2,203,854 -5.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $13,301,455 $13,539,556 $13,300,518 0.

Loans secured by real estate���������������������������������������������������������������������������������� 4,651,381 4,700,666 4,794,433 -3.

 1-4 family residential mortgages ��������������������������������������������������������������������� 2,012,095 2,045,299 2,154,127 -6.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 1,086,525 1,076,902 1,019,215 6.

 Construction and development 535,760 566,721 626,520 -14.

 Home equity lines��������������������������������������������������������������������������������������������� 672,882 674,196 646,905 4.

Commercial & industrial loans �������������������������������������������������������������������������������� 1,364,911 1,432,578 1,489,931 -8.

Loans to individuals������������������������������������������������������������������������������������������������� 1,037,110 1,046,382 1,069,473 -3.

 Credit cards ������������������������������������������������������������������������������������������������������ 398,233 403,071 396,041 0.

Farm loans��������������������������������������������������������������������������������������������������������������� 58,350 56,136 58,426 -0.

Other loans & leases����������������������������������������������������������������������������������������������� 516,334 500,616 586,289 -11.

Less: Unearned income ������������������������������������������������������������������������������������������ 2,903 2,480 2,515 15.

Total loans & leases ������������������������������������������������������������������������������������������������ 7,625,183 7,733,899 7,996,037 -4.

Less: Reserve for losses����������������������������������������������������������������������������������������� 210,973 194,211 144,412 46.

Net loans and leases����������������������������������������������������������������������������������������������� 7,414,210 7,539,687 7,851,624 -5.

Securities����������������������������������������������������������������������������������������������������������������� 2,336,756 2,206,202 2,017,365 15.

Other real estate owned������������������������������������������������������������������������������������������ 33,963 29,707 18,901 79.

Goodwill and other intangibles ������������������������������������������������������������������������������� 431,459 415,140 481,432 -10.

All other assets�������������������������������������������������������������������������������������������������������� 3,085,068 3,348,819 2,931,196 5.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 13,301,455 13,539,556 13,300,518 0.

Deposits������������������������������������������������������������������������������������������������������������������� 9,020,606 8,953,913 8,572,675 5.

 Domestic office deposits���������������������������������������������������������������������������������� 7,554,674 7,538,992 7,029,143 7.

 Foreign office deposits������������������������������������������������������������������������������������� 1,465,932 1,414,921 1,543,532 -5.

Other borrowed funds ��������������������������������������������������������������������������������������������� 2,162,917 2,417,352 2,597,860 -16.

Subordinated debt��������������������������������������������������������������������������������������������������� 168,126 170,929 185,078 -9.

All other liabilities ���������������������������������������������������������������������������������������������������� 527,613 607,637 593,682 -11.

Equity capital ����������������������������������������������������������������������������������������������������������� 1,422,192 1,389,725 1,351,224 5.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 141,216 157,920 110,799 27.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 332,040 290,619 166,067 99.

Restructured loans and leases �������������������������������������������������������������������������������������� 46,516 32,853 18,865 146.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 1,365,603 1,313,146 1,322,214 3.

Earning assets���������������������������������������������������������������������������������������������������������������� 11,459,081 11,608,632 11,440,781 0.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 634,488 696,696 840,543 -24.

Unused loan commitments��������������������������������������������������������������������������������������������� 6,307,212 6,620,592 8,147,556 -22.

Trust assets��������������������������������������������������������������������������������������������������������������������� 17,502,519 16,271,324 21,409,065 -18.

Assets securitized and sold ������������������������������������������������������������������������������������������� 1,865,634 1,884,227 1,747,262 6.

Notional amount of derivatives***���������������������������������������������������������������������������������� 204,956,755 203,388,080 183,302,532 11.

INCOME DATA

First Half 

2009

First Half 

2008 %Change

2nd Quarter 

2009

2nd Quarter 

2008

%Change 

08Q2-09Q2

Total interest income ������������������������������������������������������������������� $280,368 $343,169 -18.3 $138,698 $164,881 -15

Total interest expense ����������������������������������������������������������������� 81,460 152,034 -46.4 38,741 68,305 -43

Net interest income �������������������������������������������������������������� 198,907 191,136 4.1 99,957 96,576 3

Provision for loan and lease losses �������������������������������������������� 127,731 87,580 45.8 66,876 50,371 32

Total noninterest income������������������������������������������������������������� 136,118 121,485 12.1 67,454 60,991 10

Total noninterest expense ����������������������������������������������������������� 196,675 188,419 4.4 99,379 97,708 1

Securities gains (losses)������������������������������������������������������������� 884 -1,084 N/M -796 -2,309 N/M

Applicable income taxes ������������������������������������������������������������� 4,819 11,027 -56.3 292 2,063 -85

Extraordinary gains, net�������������������������������������������������������������� -3,654 -498 N/M -3,625 -366 N/M

Net income���������������������������������������������������������������������������� 2,613 24,012 -89.1 -3,712 4,750 N/

Net charge-offs���������������������������������������������������������������������������� 86,464 46,012 87.9 48,897 26,386 85

Cash dividends ���������������������������������������������������������������������������� 13,483 31,718 -57.5 6,246 17,747 -64

Retained earnings ����������������������������������������������������������������������� -10,871 -7,706 N/M -9,958 -12,998 N/M

Net operating income����������������������������������������������������������� 6,244 24,939 -75.0 424 6,091 -93

*** Call Report filers only. N/M - Not Meaningf
FDIC Quarterly 6 2009, Volume 3, No. 3

TABLE III-A. Second Quarter 2009, All FDIC-Insured Institutions

Asset Concentration Groups*

Secon

(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����������������������� 8,195 24 5 1,551 4,637 809 81 294 742 52

Commercial banks������������������������������������� 6,995 20 5 1,546 4,150 223 64 262 685 40

Savings institutions ����������������������������������� 1,200 4 0 5 487 586 17 32 57 12

Total assets (in billions)������������������������������������ $13,301.5 $484.8 $3,204.0 $170.1 $5,947.3 $933.2 $86.3 $36.0 $101.

Commercial banks������������������������������������� 11,895.1 462.5 3,204.0 169.7 5,447.0 241.0 43.5 30.4 88

Savings institutions ����������������������������������� 1,406.4 22.3 0.0 0.5 500.2 692.2 42.7 5.6 

Total deposits (in billions)��������������������������������� 9,020.6 163.7 1,996.8 137.5 4,400.5 554.6 71.5 27.3 83

Commercial banks������������������������������������� 8,077.2 151.1 1,996.8 137.1 4,058.4 101.0 34.0 23.8 73

Savings institutions ����������������������������������� 943.4 12.5 0.0 0.4 342.1 453.6 37.5 3.5

Net income (in millions)������������������������������������ -3,712 -873 -4,296 336 -2,429 1,299 119 110 188 1,833

Commercial banks������������������������������������� -3,694 -1,087 -4,296 337 -1,786 893 56 64 186 1,939

Savings institutions ����������������������������������� -18 214 0 -1 -643 406 63 46 2 -105

Performance Ratios (annualized, %

Yield on earning assets������������������������������������ 4.83 11.83 3.92 5.69 5.08 5.13 5.84 3.87

Cost of funding earning assets ������������������������ 1.35 1.39 0.99 1.79 1.48 1.89 1.74 1.18

Net interest margin������������������������������������ 3.48 10.44 2.93 3.90 3.60 3.24 4.10 2.68

Noninterest income to assets��������������������������� 2.01 4.84 1.78 0.64 1.87 0.97 3.14 8.03

Noninterest expense to assets������������������������� 2.96 5.86 2.73 2.84 3.28 1.95 3.16 8.49

Loan and lease loss provision to assets���������� 1.99 8.69 1.76 0.50 1.86 1.12 2.52 0.18

Net operating income to assets ����������������������� 0.01 -0.92 -0.10 0.76 -0.16 0.57 0.56 1.20

Pretax return on assets ������������������������������������ -0.10 -1.08 -0.71 0.93 -0.13 0.90 1.32 1.82

Return on assets����������������������������������������������� -0.11 -0.73 -0.54 0.79 -0.16 0.56 0.57 1.21

Return on equity ����������������������������������������������� -1.07 -3.03 -6.36 7.14 -1.56 6.13 6.07 7.51

Net charge-offs to loans and leases���������������� 2.55 10.78 3.07 0.60 2.04 1.27 2.85 0.71

Loan and lease loss provision to 

net charge-offs ������������������������������������������ 136.77 111.26 151.96 127.12 131.55 134.42 111.19 103.31 119

Efficiency ratio �������������������������������������������������� 57.07 41.06 63.68 65.68 61.91 48.56 44.73 80.75 7

% of unprofitable institutions���������������������������� 28.30 41.67 40.00 11.48 37.57 21.76 16.05 22.79 1

% of institutions with earnings gains���������������� 34.72 29.17 40.00 38.68 31.16 45.36 40.74 34.35 3

Structural Changes

New charters ��������������������������������������������� 12 0 0 1 2 0 0 7 0 2

Institutions absorbed by mergers ������������� 39 0 0 2 33 1 0 0 2 1

Failed institutions �������������������������������������� 24 0 0 1 20 1 0 0 2 0

PRIOR Seco

(The way it was...)

Return on assets (%)������������������������������� 2008 0.14 2.39 0.26 1.17 0.24 -1.46 0.82 1.82

������������������������������������� 2006 1.34 4.64 1.01 1.31 1.33 1.07 1.79 2.76

������������������������������������� 2004 1.31 4.08 0.68 1.27 1.36 1.21 1.54 1.28

Net charge-offs to loans & leases (%) ���� 2008 1.32 5.87 1.27 0.26 1.00 1.82 1.75 0.66

������������������������������������� 2006 0.35 3.43 0.59 0.17 0.17 0.13 0.92 0.56

������������������������������������� 2004 0.58 5.08 0.99 0.18 0.32 0.11 1.15 0.41

* See Table IV-A (page 8) for explanations
FDIC Quarterly 7 2009, Volume 3, No. 3

Quarterly Banking Profile

TABLE III-A. Second Quarter 2009, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions

Second

(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����������������������������� 8,195 3,010 4,487 582 116 996 1,164 1,685 1,914 1,680 756

Commercial banks������������������������������������������� 6,995 2,682 3,780 445 88 524 1,025 1,387 1,812 1,558 689

Savings institutions ����������������������������������������� 1,200 328 707 137 28 472 139 298 102 122 67

Total assets (in billions)������������������������������������������ $13,301.5 $165.1 $1,348.6 $1,501.3 $10,286.5 $2,458.4 $3,495.1 $3,124.3 $1,063.1 $777

Commercial banks������������������������������������������� 11,895.1 147.8 1,101.1 1,158.0 9,488.3 1,749.0 3,345.2 2,975.8 1,014.9 65

Savings institutions ����������������������������������������� 1,406.4 17.4 247.5 343.3 798.2 709.4 149.9 148.5 48.2 

Total deposits (in billions)��������������������������������������� 9,020.6 136.3 1,090.2 1,119.4 6,674.7 1,514.1 2,505.6 2,059.2 783.3 58

Commercial banks������������������������������������������� 8,077.2 122.9 900.8 863.7 6,189.9 1,022.0 2,395.0 1,951.1 747.7 50

Savings institutions ����������������������������������������� 943.4 13.4 189.4 255.7 484.8 492.0 110.5 108.1 35.6

Net income (in millions)������������������������������������������ -3,712 29 -266 -2,800 -675 -3,331 -413 1,532 2,019 494 -4,013

Commercial banks������������������������������������������� -3,694 4 -155 -2,741 -801 -3,530 -200 1,779 2,036 528 -4,305

Savings institutions ����������������������������������������� -18 25 -110 -59 126 199 -212 -247 -17 -34 293

Performance Ratios (annualized, %

Yield on earning assets������������������������������������������ 4.83 5.64 5.54 5.18 4.66 5.22 4.58 4.20 5.6

Cost of funding earning assets ������������������������������ 1.35 1.81 1.97 1.84 1.18 1.50 1.33 1.19 1.1

Net interest margin������������������������������������������ 3.48 3.82 3.57 3.34 3.49 3.73 3.25 3.01 4.5

Noninterest income to assets��������������������������������� 2.01 1.28 1.00 1.34 2.25 1.86 2.22 2.29 3.3

Noninterest expense to assets������������������������������� 2.96 3.88 3.31 3.31 2.86 2.93 2.77 2.98 4.1

Loan and lease loss provision to assets���������������� 1.99 0.70 1.04 1.87 2.16 1.92 2.08 1.68 1.6

Net operating income to assets ����������������������������� 0.01 0.06 -0.08 -0.75 0.13 0.10 0.02 0.12 0.89

Pretax return on assets ������������������������������������������ -0.10 0.19 -0.07 -0.81 -0.01 -0.48 -0.05 0.33 1.24

Return on assets����������������������������������������������������� -0.11 0.07 -0.08 -0.75 -0.03 -0.54 -0.05 0.19 0.76

Return on equity ����������������������������������������������������� -1.07 0.55 -0.79 -7.02 -0.25 -4.34 -0.44 2.30 7.33

Net charge-offs to loans and leases���������������������� 2.55 0.89 1.10 2.17 2.89 2.90 2.25 2.38 2.5

Loan and lease loss provision to net charge-offs�� 136.77 125.49 135.64 126.39 138.33 122.59 154.45 136.69 100.00 14

Efficiency ratio �������������������������������������������������������� 57.07 80.91 75.89 68.28 53.35 55.43 53.22 59.67 55.33 

% of unprofitable institutions���������������������������������� 28.30 27.14 27.75 34.88 46.55 28.41 52.92 23.03 19.28 

% of institutions with earnings gains���������������������� 34.72 39.80 32.34 28.01 28.45 34.94 24.57 38.16 35.84 

Structural Changes

New charters ��������������������������������������������������� 12 10 0 1 1 0 6 2 0 3 1

Institutions absorbed by mergers ������������������� 39 12 22 4 1 9 7 6 9 7 1

Failed institutions �������������������������������������������� 24 3 17 3 1 1 8 4 3 1 7

PRIOR Sec

(The way it was...)

Return on assets (%)������������������������������������� 2008 0.14 0.57 0.53 0.25 0.07 0.76 0.16 0.11 0.91

������������������������������������������� 2006 1.34 1.02 1.26 1.34 1.36 1.28 1.32 1.09 1.6

������������������������������������������� 2004 1.31 0.98 1.17 1.46 1.32 1.08 1.40 1.36 1.5

Net charge-offs to loans & leases (%) ���������� 2008 1.32 0.30 0.47 1.00 1.53 1.30 1.14 1.27 1.3

������������������������������������������� 2006 0.35 0.15 0.15 0.20 0.42 0.56 0.15 0.23 0.3

������������������������������������������� 2004 0.58 0.23 0.23 0.45 0.68 0.85 0.32 0.41 0.7

* See Table IV-A (page 9) for explanations
FDIC Quarterly 8 2009, Volume 3, No. 3

TABLE IV-A. First Half 2009, All FDIC-Insured Institutions

Asset Concentration Groups*

Fir

(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����������������������������������������� 8,195 24 5 1,551 4,637 809 81 294 742 52

Commercial banks������������������������������������������������������� 6,995 20 5 1,546 4,150 223 64 262 685 40

Savings institutions ����������������������������������������������������� 1,200 4 0 5 487 586 17 32 57 12

Total assets (in billions)������������������������������������������������������ $13,301.5 $484.8 $3,204.0 $170.1 $5,947.3 $933.2 $86.3 $36.0 $101.

Commercial banks������������������������������������������������������� 11,895.1 462.5 3,204.0 169.7 5,447.0 241.0 43.5 30.4 88

Savings institutions ����������������������������������������������������� 1,406.4 22.3 0.0 0.5 500.2 692.2 42.7 5.6 

Total deposits (in billions)��������������������������������������������������� 9,020.6 163.7 1,996.8 137.5 4,400.5 554.6 71.5 27.3 83

Commercial banks������������������������������������������������������� 8,077.2 151.1 1,996.8 137.1 4,058.4 101.0 34.0 23.8 73

Savings institutions ����������������������������������������������������� 943.4 12.5 0.0 0.4 342.1 453.6 37.5 3.5

Net income (in millions)������������������������������������������������������ 2,613 -2,538 774 750 -4,918 2,599 75 124 409 5,338

Commercial banks������������������������������������������������������� 4,513 -2,973 774 750 -1,549 1,262 -3 45 403 5,804

Savings institutions ����������������������������������������������������� -1,901 436 0 0 -3,369 1,338 78 78 5 -467

Performance Ratios (annualized, %

Yield on earning assets������������������������������������������������������ 4.84 11.75 3.98 5.72 5.11 5.19 5.84 4.02

Cost of funding earning assets ������������������������������������������ 1.41 1.39 1.03 1.85 1.54 2.02 1.67 1.25

Net interest margin������������������������������������������������������ 3.43 10.35 2.95 3.87 3.57 3.17 4.17 2.77

Noninterest income to assets��������������������������������������������� 2.01 5.38 2.05 0.63 1.76 0.99 2.48 8.01

Noninterest expense to assets������������������������������������������� 2.90 5.87 2.60 2.73 3.26 1.88 3.01 9.14

Loan and lease loss provision to assets���������������������������� 1.89 9.68 1.62 0.44 1.67 1.18 2.89 0.20

Net operating income to assets ����������������������������������������� 0.09 -1.19 0.27 0.86 -0.11 0.52 0.18 0.67

Pretax return on assets ������������������������������������������������������ 0.11 -1.62 0.05 1.04 -0.11 0.92 0.51 1.19

Return on assets����������������������������������������������������������������� 0.04 -1.04 0.05 0.89 -0.16 0.57 0.19 0.68

Return on equity ����������������������������������������������������������������� 0.38 -4.55 0.60 8.02 -1.60 6.41 1.99 4.18

Net charge-offs to loans and leases���������������������������������� 2.24 9.57 2.73 0.47 1.74 1.13 2.74 0.81

Loan and lease loss provision to net charge-offs�������������� 147.73 138.13 156.76 142.88 138.53 158.05 132.04 98.67 129

Efficiency ratio �������������������������������������������������������������������� 55.35 39.63 57.17 64.29 60.90 47.60 46.47 80.51 6

% of unprofitable institutions���������������������������������������������� 26.94 54.17 40.00 10.19 36.45 20.77 12.35 19.05 1

% of institutions with earnings gains���������������������������������� 35.06 16.67 40.00 39.97 29.35 54.88 46.91 36.05 3

Condition Ratios (%

Earning assets to total assets �������������������������������������������� 86.15 80.15 83.77 91.89 87.66 92.62 93.66 89.74 9

Loss Allowance to:

Loans and leases �������������������������������������������������������� 2.77 9.01 3.82 1.39 2.24 1.45 3.00 1.42

Noncurrent loans and leases �������������������������������������� 63.54 264.41 67.63 79.22 53.30 34.89 203.44 60.53 7

Noncurrent assets plus

other real estate owned to assets������������������������������� 2.77 2.45 2.25 1.45 3.36 3.00 1.23 0.72

Equity capital ratio�������������������������������������������������������������� 10.56 24.51 8.42 11.08 10.55 9.47 9.96 16.58 1

Core capital (leverage) ratio����������������������������������������������� 8.25 18.26 7.03 10.01 8.18 8.93 9.61 14.19 

Tier 1 risk-based capital ratio��������������������������������������������� 11.05 12.68 11.38 13.59 9.96 17.14 12.39 33.93 1

Total risk-based capital ratio ���������������������������������������������� 13.76 14.73 14.72 14.69 12.56 18.14 14.31 34.69 1

Net loans and leases to deposits��������������������������������������� 82.19 194.39 57.57 80.79 91.62 107.61 93.75 31.10 6

Net loans to total assets����������������������������������������������������� 55.74 65.62 35.88 65.28 67.79 63.95 77.68 23.53 5

Domestic deposits to total assets �������������������������������������� 56.80 31.68 30.33 80.80 70.64 59.36 81.20 73.49 8

Structural Changes

New charters ��������������������������������������������������������������� 25 0 0 1 5 1 0 15 1 2

Institutions absorbed by mergers ������������������������������� 89 0 0 6 75 2 0 1 4 1

Failed institutions �������������������������������������������������������� 45 0 0 3 38 2 0 0 2 0

PRIOR Fi

(The way it was...)

Number of institutions ������������������������������������������������2008 8,451 27 6 1,585 4,788 844 98 306 754 43

��������������������������������������������������������2006 8,777 29 5 1,681 4,708 861 123 404 910 56

��������������������������������������������������������2004 9,078 36 6 1,775 4,350 997 144 488 1,195 87

Total assets (in billions)����������������������������������������������2008 $13,300.5 $450.1 $2,980.5 $165.7 $5,362.5 $1,376.1 $71.3 $32.8 $98.

��������������������������������������������������������2006 11,526.1 376.8 2,097.8 146.6 4,552.3 1,765.2 97.5 45.3 117

��������������������������������������������������������2004 9,648.5 334.4 1,554.5 135.7 3,031.1 1,402.0 160.7 57.1 155

Return on assets (%)��������������������������������������������������2008 0.36 3.49 0.31 1.18 0.51 -0.84 1.04 2.28

��������������������������������������������������������2006 1.34 4.58 1.08 1.29 1.33 1.06 2.00 0.88

��������������������������������������������������������2004 1.33 3.97 0.89 1.26 1.35 1.22 1.58 1.36

Net charge-offs to loans & leases (%) �����������������������2008 1.16 5.38 1.20 0.21 0.86 1.48 1.72 0.46

��������������������������������������������������������2006 0.34 3.14 0.55 0.14 0.17 0.12 0.94 0.74

��������������������������������������������������������2004 0.60 5.03 1.13 0.15 0.32 0.12 1.29 0.50

Noncurrent plus OREO to assets (%) ������������������������2008 1.40 1.67 0.86 1.06 1.67 2.56 0.80 0.27

��������������������������������������������������������2006 0.47 1.28 0.40 0.68 0.47 0.54 0.60 0.21

��������������������������������������������������������2004 0.60 1.33 0.75 0.80 0.59 0.58 0.79 0.30

Equity capital ratio (%)������������������������������������������������2008 10.16 21.98 7.86 10.94 11.31 7.90 9.39 20.93 

��������������������������������������������������������2006 10.27 27.09 8.05 10.73 10.20 10.64 9.92 21.35 

��������������������������������������������������������2004 9.50 18.01 7.18 10.52 9.35 8.65 7.99 16.25 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 their total loans and leases

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

exceed 25 percent of total assets

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

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

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

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

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

concentrations
FDIC Quarterly 9 2009, Volume 3, No. 3

Quarterly Banking Profile

TABLE IV-A. First Half 2009, All FDIC-Insured Institutions

Asset Size Distribution Geographic Regions

Fir

(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��������������������� 8,195 3,010 4,487 582 116 996 1,164 1,685 1,914 1,680 756

Commercial banks����������������������������������� 6,995 2,682 3,780 445 88 524 1,025 1,387 1,812 1,558 689

Savings institutions ��������������������������������� 1,200 328 707 137 28 472 139 298 102 122 67

Total assets (in billions)���������������������������������� $13,301.5 $165.1 $1,348.6 $1,501.3 $10,286.5 $2,458.4 $3,495.1 $3,124.3 $1,063.1 $777

Commercial banks����������������������������������� 11,895.1 147.8 1,101.1 1,158.0 9,488.3 1,749.0 3,345.2 2,975.8 1,014.9 65

Savings institutions ��������������������������������� 1,406.4 17.4 247.5 343.3 798.2 709.4 149.9 148.5 48.2 

Total deposits (in billions)������������������������������� 9,020.6 136.3 1,090.2 1,119.4 6,674.7 1,514.1 2,505.6 2,059.2 783.3 58

Commercial banks����������������������������������� 8,077.2 122.9 900.8 863.7 6,189.9 1,022.0 2,395.0 1,951.1 747.7 50

Savings institutions ��������������������������������� 943.4 13.4 189.4 255.7 484.8 492.0 110.5 108.1 35.6

Net income (in millions)���������������������������������� 2,613 139 694 -3,420 5,199 -2,975 2,255 2,484 3,524 -886 -1,789

Commercial banks����������������������������������� 4,513 96 721 -3,033 6,729 -2,631 2,830 2,833 3,485 729 -2,731

Savings institutions ��������������������������������� -1,901 43 -27 -387 -1,530 -344 -575 -348 39 -1,615 942

Performance Ratios (annualized, %

Yield on earning assets���������������������������������� 4.84 5.68 5.61 5.26 4.66 5.27 4.46 4.29 5.6

Cost of funding earning assets ���������������������� 1.41 1.87 2.04 1.91 1.23 1.58 1.38 1.25 1.1

Net interest margin���������������������������������� 3.43 3.80 3.57 3.36 3.42 3.69 3.08 3.05 4.4

Noninterest income to assets������������������������� 2.01 1.27 0.98 1.23 2.26 1.91 2.04 2.20 3.1

Noninterest expense to assets����������������������� 2.90 3.87 3.22 3.11 2.82 2.84 2.68 3.02 3.9

Loan and lease loss provision to assets�������� 1.89 0.60 0.89 1.67 2.06 2.03 1.81 1.61 1.9

Net operating income to assets ��������������������� 0.09 0.16 0.09 -0.49 0.17 0.10 0.05 0.09 0.76

Pretax return on assets ���������������������������������� 0.11 0.28 0.16 -0.47 0.18 -0.19 0.23 0.28 1.04 

Return on assets��������������������������������������������� 0.04 0.17 0.10 -0.46 0.10 -0.24 0.12 0.16 0.66 

Return on equity ��������������������������������������������� 0.38 1.34 1.04 -4.31 0.99 -1.98 1.21 1.87 6.59 

Net charge-offs to loans and leases�������������� 2.24 0.75 0.93 1.78 2.56 2.55 1.97 2.00 2.3

Loan and lease loss provision to net 

charge-offs ���������������������������������������������� 147.73 127.22 137.28 136.47 149.87 147.60 155.52 155.00 124.21 14

Efficiency ratio ������������������������������������������������ 55.35 80.06 74.34 66.96 51.64 53.51 54.25 57.84 54.55 

% of unprofitable institutions�������������������������� 26.94 25.75 26.34 34.88 41.38 26.81 49.57 22.02 17.97 

% of institutions with earnings gains�������������� 35.06 40.53 33.12 23.54 25.86 38.86 23.63 39.17 36.00 

Condition Ratios (%

Earning assets to total assets ������������������������ 86.15 91.33 91.65 90.45 84.72 85.08 84.48 86.52 87.60 

Loss Allowance to:

Loans and leases ������������������������������������ 2.77 1.48 1.56 2.00 3.14 2.99 2.52 2.89 2.6

Noncurrent loans and leases ������������������ 63.54 62.78 48.65 47.47 68.00 94.96 55.10 57.89 64.16 

Noncurrent assets plus

other real estate owned to assets����������� 2.77 2.03 2.94 3.43 2.67 1.81 3.08 2.87 3.1

Equity capital ratio������������������������������������������ 10.56 12.46 9.95 10.62 10.60 12.53 10.97 8.55 10.80

Core capital (leverage) ratio��������������������������� 8.25 12.02 9.47 9.14 7.90 9.37 7.44 7.11 9.1

Tier 1 risk-based capital ratio������������������������� 11.05 17.81 12.92 12.12 10.55 12.46 9.68 9.70 10.35 

Total risk-based capital ratio �������������������������� 13.76 18.88 14.10 13.46 13.68 14.57 12.95 12.92 13.04 

Net loans and leases to deposits������������������� 82.19 75.30 84.83 89.82 80.62 85.70 82.37 75.84 88.53 

Net loans to total assets��������������������������������� 55.74 62.13 68.58 66.97 52.31 52.78 59.05 49.99 65.23 

Domestic deposits to total assets ������������������ 56.80 82.52 80.76 74.04 50.72 54.43 64.25 51.96 66.40 

Structural Changes

New charters ������������������������������������������� 25 22 0 1 2 1 10 5 0 5 4

Institutions absorbed by mergers ����������� 89 34 46 7 2 18 12 19 20 17 3

Failed institutions ������������������������������������ 45 4 35 5 1 2 14 7 5 2 15

PRIOR Fi

(The way it was...)

Number of institutions ��������������������������� 2008 8,451 3,303 4,474 558 116 1,034 1,214 1,738 1,959 1,722 784

����������������������������������� 2006 8,777 3,805 4,332 518 122 1,103 1,234 1,864 2,043 1,777 756

����������������������������������� 2004 9,078 4,277 4,217 468 116 1,148 1,228 1,990 2,120 1,846 746

Total assets (in billions)������������������������� 2008 $13,300.5 $177.0 $1,333.3 $1,464.5 $10,325.7 $2,478.5 $3,397.0 $2,937.6 $989.0 $763

����������������������������������� 2006 11,526.1 198.6 1,269.5 1,422.7 8,635.3 2,952.0 2,861.6 2,679.3 825.3 63

����������������������������������� 2004 9,648.5 221.4 1,172.2 1,293.6 6,961.4 3,326.1 2,041.3 1,701.9 760.3 57

Return on assets (%)����������������������������� 2008 0.36 0.67 0.66 0.50 0.30 0.90 0.24 0.43 1.15

����������������������������������� 2006 1.34 0.99 1.18 1.34 1.37 1.29 1.32 1.09 1.6

����������������������������������� 2004 1.33 0.99 1.17 1.47 1.34 1.15 1.37 1.37 1.5

Net charge-offs to loans & leases (%) �� 2008 1.16 0.25 0.38 0.85 1.35 1.23 0.95 1.06 1.2

����������������������������������� 2006 0.34 0.13 0.13 0.19 0.40 0.51 0.15 0.23 0.3

����������������������������������� 2004 0.60 0.20 0.23 0.41 0.72 0.86 0.34 0.42 0.8

Noncurrent plus OREO to assets (%) ��� 2008 1.40 1.20 1.57 1.77 1.33 0.92 1.43 1.26 1.6

����������������������������������� 2006 0.47 0.70 0.52 0.45 0.47 0.42 0.29 0.51 0.8

����������������������������������� 2004 0.60 0.83 0.62 0.55 0.60 0.61 0.42 0.73 0.6

Equity capital ratio (%)��������������������������� 2008 10.16 13.35 10.27 10.96 9.98 12.05 10.06 9.20 9.7

����������������������������������� 2006 10.27 12.51 10.22 10.90 10.12 11.03 9.49 8.92 10.62 

����������������������������������� 2004 9.50 11.49 9.90 10.49 9.19 9.65 8.32 8.56 10.28

* 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 2009, Volume 3, No. 3

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

Asset Concentration Groups*

June 30, 2009 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 ��������������������������������������� 2.16 1.41 3.30 1.29 1.87 2.16 1.23 1.61

Construction and development��������������������������������� 2.86 0.00 2.56 3.02 2.96 3.94 2.48 2.09

Nonfarm nonresidential��������������������������������������������� 1.17 0.00 0.72 1.23 1.21 1.29 1.99 0.95

Multifamily residential real estate ����������������������������� 1.22 0.00 0.83 1.08 1.37 1.31 0.03 1.17

Home equity loans����������������������������������������������������� 1.24 1.96 1.79 0.59 0.93 1.41 1.11 0.33

Other 1-4 family residential��������������������������������������� 2.98 1.73 4.90 1.82 2.50 2.25 1.21 2.07

Commercial and industrial loans ������������������������������������� 0.91 4.55 0.49 1.74 0.99 0.82 1.31 1.31

Loans to individuals���������������������������������������������������������� 2.43 3.00 2.22 2.06 2.38 1.68 2.22 1.54

Credit card loans ������������������������������������������������������� 2.84 2.88 3.29 2.46 2.46 3.09 1.42 1.86

Other loans to individuals ����������������������������������������� 2.17 3.88 1.80 2.04 2.37 1.31 2.45 1.53

All other loans and leases (including farm) ��������������������� 0.55 0.01 0.47 0.74 0.72 0.15 0.39 0.90

Total loans and leases������������������������������������������������������ 1.85 2.82 2.15 1.27 1.68 2.09 1.82 1.52

Percent of Loans Noncurrent**

All real estate loans ���������������������������������������������������������� 5.64 2.13 7.76 2.11 5.43 4.39 1.46 2.88

Construction and development.................................. 13.45 0.0

Nonfarm nonresidential��������������������������������������������� 2.88 0.00 3.20 2.49 2.77 2.80 1.43 2.09

Multifamily residential real estate ����������������������������� 3.13 0.00 2.39 1.76 3.52 2.35 1.21 3.01

Home equity loans����������������������������������������������������� 1.73 1.84 1.82 0.76 1.31 1.94 0.72 0.47

Other 1-4 family residential��������������������������������������� 6.79 2.81 12.07 1.43 5.94 4.42 1.98 2.87

Commercial and industrial loans ������������������������������������� 2.79 5.05 4.83 2.18 2.20 1.53 0.60 2.56

Loans to individuals���������������������������������������������������������� 2.20 3.67 2.81 0.95 1.33 1.24 1.61 0.68

Credit card loans ������������������������������������������������������� 3.56 3.56 4.63 3.40 3.11 3.66 1.64 2.30

Other loans to individuals ����������������������������������������� 1.35 4.45 2.10 0.81 1.01 0.61 1.60 0.61

All other loans and leases (including farm) ��������������������� 1.52 0.02 2.52 0.78 1.12 0.30 0.13 0.83

Total loans and leases������������������������������������������������������ 4.35 3.41 5.64 1.75 4.21 4.16 1.46 2.34

Percent of Loans Charged-off (net, YTD)

All real estate loans ���������������������������������������������������������� 1.73 1.90 2.71 0.33 1.57 1.03 1.37 0.31

Construction and development��������������������������������� 4.42 0.00 1.46 2.15 4.51 5.01 2.50 1.09

Nonfarm nonresidential��������������������������������������������� 0.50 0.00 0.35 0.33 0.53 0.65 0.13 0.12

Multifamily residential real estate ����������������������������� 0.81 0.00 0.43 0.15 0.97 0.85 0.00 0.94

Home equity loans����������������������������������������������������� 2.70 0.00 3.18 0.35 1.95 3.18 1.84 0.72

Other 1-4 family residential��������������������������������������� 1.50 2.78 3.42 0.22 1.05 0.76 0.85 0.21

Commercial and industrial loans ������������������������������������� 2.13 14.35 2.48 1.12 1.81 1.18 4.79 0.56

Loans to individuals���������������������������������������������������������� 5.26 9.89 4.41 0.94 3.35 3.24 3.22 2.36

Credit card loans ������������������������������������������������������� 8.77 9.26 7.22 8.20 9.37 9.58 5.31 13.57

Other loans to individuals ����������������������������������������� 2.99 14.30 3.21 0.51 2.28 1.52 2.55 0.41

All other loans and leases (including farm) ��������������������� 1.06 0.01 1.30 0.00 1.11 0.81 1.46 1.85

Total loans and leases������������������������������������������������������ 2.24 9.57 2.73 0.47 1.74 1.13 2.72 0.81

Loans Outstanding (in billions)

All real estate loans ���������������������������������������������������������� $4,651.4 $0.2 $590.7 $65.4 $2,741.4 $562.4 $21.1 $5.5 $4

Construction and development��������������������������������� 535.8 0.0 12.0 4.7 452.6 12.8 0.7 0.

Nonfarm nonresidential��������������������������������������������� 1,086.5 0.0 33.5 18.4 910.9 29.6 0.9 1.

Multifamily residential real estate ����������������������������� 213.5 0.0 40.7 1.3 144.5 12.2 0.1 0.

Home equity loans����������������������������������������������������� 672.9 0.0 143.4 1.3 332.3 38.4 10.4 0.2

Other 1-4 family residential��������������������������������������� 2,012.1 0.1 312.1 17.3 850.6 468.4 9.0 2.6 

Commercial and industrial loans ������������������������������������� 1,364.9 30.7 249.7 15.3 801.5 12.7 5.1 1.2

Loans to individuals���������������������������������������������������������� 1,037.1 282.3 187.9 6.4 337.2 25.8 42.2 1.5

Credit card loans ������������������������������������������������������� 398.2 247.3 53.1 0.4 51.4 5.3 9.4 0.

Other loans to individuals ����������������������������������������� 638.9 35.0 134.8 6.1 285.8 20.4 32.8 1.4

All other loans and leases (including farm) ��������������������� 574.7 36.5 168.1 25.5 245.0 4.8 1.2 0.

Total loans and leases������������������������������������������������������ 7,628.1 349.6 1,196.4 112.6 4,125.2 605.7 69.6 8.6 57

Memo: Other Real Estate Owned (in millions

All other real estate owned����������������������������������������������� 33,963.3 -29.7 2,452.0 498.7 25,602.3 2,741.2 40.7 46.2 311

Construction and development��������������������������������� 13,467.7 0.0 19.0 176.5 11,910.8 903.8 17.0 13.8 

Nonfarm nonresidential��������������������������������������������� 4,837.1 0.2 128.0 140.2 4,199.5 103.9 3.5 13.3 

Multifamily residential real estate ����������������������������� 1,579.6 0.0 42.4 22.4 1,358.9 34.0 0.7 0.0

1-4 family residential ������������������������������������������������� 11,486.8 0.1 1,548.6 119.7 6,536.5 1,437.0 18.8 17.9 119

Farmland�������������������������������������������������������������������� 173.8 0.0 0.0 39.3 124.7 1.0 0.7 1

GNMA properties������������������������������������������������������� 2,303.5 0.0 580.0 0.6 1,461.2 261.4 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 2009, Volume 3, No. 3

Quarterly Banking Profile

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

Asset Size Distribution Geographic Regions

June 30, 2009 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 ������������������������������ 2.16 1.75 1.67 1.50 2.44 1.43 2.45 2.41 1.4

Construction and development������������������������ 2.86 2.28 2.61 2.59 3.12 2.40 2.68 3.57 2.6

Nonfarm nonresidential������������������������������������ 1.17 1.51 1.39 1.11 1.08 1.17 1.20 1.41 1.0

Multifamily residential real estate �������������������� 1.22 1.10 1.53 1.47 1.06 0.95 1.32 1.21 0.8

Home equity loans�������������������������������������������� 1.24 0.95 0.89 0.75 1.31 0.60 1.30 1.39 1.2

Other 1-4 family residential������������������������������ 2.98 2.17 1.76 1.55 3.41 1.58 3.58 3.41 1.6

Commercial and industrial loans ���������������������������� 0.91 1.91 1.44 1.01 0.83 1.29 0.78 0.97 1.2

Loans to individuals������������������������������������������������� 2.43 2.48 2.00 2.07 2.48 2.94 2.49 2.00 2.9

Credit card loans ���������������������������������������������� 2.84 3.03 2.78 1.90 2.89 3.07 2.60 2.62 2.9

Other loans to individuals �������������������������������� 2.17 2.47 1.94 2.14 2.19 2.72 2.46 1.83 2.8

All other loans and leases (including farm) ������������ 0.55 0.71 0.65 0.95 0.51 0.44 0.37 0.71 0.6

Total loans and leases��������������������������������������������� 1.85 1.71 1.61 1.46 1.97 1.66 2.00 1.94 1.5

Percent of Loans Noncurrent** 

All real estate loans ������������������������������������������������� 5.64 2.69 3.64 5.10 6.32 3.41 6.25 6.80 5.8

Construction and development������������������������ 13.45 8.00 10.79 15.24 13.84 12.15 12.99 16.61 12.55

Nonfarm nonresidential������������������������������������ 2.88 2.69 2.38 2.53 3.33 2.91 3.21 3.55 2.4

Multifamily residential real estate �������������������� 3.13 2.54 2.89 4.08 2.88 1.93 4.43 4.01 1.9

Home equity loans�������������������������������������������� 1.73 1.11 1.08 1.03 1.84 0.74 2.27 1.62 2.0

Other 1-4 family residential������������������������������ 6.79 1.95 2.42 3.38 8.13 2.95 7.44 9.35 9.8

Commercial and industrial loans ���������������������������� 2.79 2.51 2.10 2.31 2.95 2.70 2.15 2.56 2.0

Loans to individuals������������������������������������������������� 2.20 1.11 0.89 1.17 2.36 3.23 1.38 1.44 2.1

Credit card loans ���������������������������������������������� 3.56 3.06 2.42 1.72 3.67 3.93 2.72 3.24 3.0

Other loans to individuals �������������������������������� 1.35 1.08 0.77 0.98 1.44 1.98 0.96 0.95 1.4

All other loans and leases (including farm) ������������ 1.52 0.87 0.88 0.72 1.65 1.09 0.91 2.12 0.6

Total loans and leases��������������������������������������������� 4.35 2.36 3.20 4.21 4.61 3.14 4.58 5.00 4.0

Percent of Loans Charged-off (net, YTD) 

All real estate loans ������������������������������������������������� 1.73 0.59 0.82 1.62 2.00 0.69 2.03 1.98 1.6

Construction and development������������������������ 4.42 2.67 2.82 5.44 4.65 2.85 3.98 5.26 3.4

Nonfarm nonresidential������������������������������������ 0.50 0.38 0.33 0.56 0.57 0.43 0.42 0.83 0.4

Multifamily residential real estate �������������������� 0.81 0.43 0.51 1.09 0.79 0.62 0.94 0.99 0.3

Home equity loans�������������������������������������������� 2.70 0.75 0.63 0.98 2.99 0.82 3.57 1.98 3.4

Other 1-4 family residential������������������������������ 1.50 0.34 0.49 0.77 1.80 0.48 1.69 1.95 1.0

Commercial and industrial loans ���������������������������� 2.13 1.46 1.38 1.96 2.24 3.12 1.33 1.79 2.4

Loans to individuals������������������������������������������������� 5.26 1.37 1.77 3.32 5.63 8.12 3.55 3.26 6.5

Credit card loans ���������������������������������������������� 8.77 12.71 9.89 6.73 8.87 9.45 8.32 7.83 10.3

Other loans to individuals �������������������������������� 2.99 0.89 1.14 2.07 3.26 5.73 2.12 1.89 3.4

All other loans and leases (including farm) ������������ 1.06 0.00 0.62 1.00 1.11 0.61 0.75 1.02 0.5

Total loans and leases��������������������������������������������� 2.24 0.75 0.93 1.78 2.56 2.55 1.97 2.00 2.3

Loans Outstanding (in billions) 

All real estate loans ������������������������������������������������� $4,651.4 $71.7 $734.8 $755.1 $3,089.8 $812.1 $1,343.7 $984.7 $403.0 $3

Construction and development������������������������ 535.8 7.5 117.3 138.4 272.6 63.8 186.6 97.8 46.

Nonfarm nonresidential������������������������������������ 1,086.5 21.8 267.1 271.9 525.7 204.1 289.3 206.8 109.1 

Multifamily residential real estate �������������������� 213.5 2.0 31.4 45.5 134.6 54.1 38.2 62.3 11

Home equity loans�������������������������������������������� 672.9 2.4 39.6 51.1 579.8 71.8 231.7 200.7 80.

Other 1-4 family residential������������������������������ 2,012.1 29.2 247.7 233.2 1,502.0 413.3 578.3 399.9 133.9 

Commercial and industrial loans ���������������������������� 1,364.9 14.0 122.2 151.3 1,077.4 177.9 382.7 314.0 135.3 

Loans to individuals������������������������������������������������� 1,037.1 7.4 44.5 83.0 902.2 269.2 232.6 177.1 92.3

Credit card loans ���������������������������������������������� 398.2 0.1 3.2 21.5 373.5 172.3 55.9 38.0 41

Other loans to individuals �������������������������������� 638.9 7.3 41.3 61.5 528.7 96.9 176.8 139.1 50.9

All other loans and leases (including farm) ������������ 574.7 11.0 38.4 37.4 487.8 78.8 158.5 132.5 81.5

Total loans and leases��������������������������������������������� 7,628.1 104.2 939.9 1,026.8 5,557.2 1,338.0 2,117.6 1,608.4 712.1 51

Memo: Other Real Estate Owned (in millions)

All other real estate owned�������������������������������������� 33,963.3 874.1 9,466.1 8,094.8 15,528.3 2,209.1 10,665.0 8,510.8 4,194.4 3,43

Construction and development������������������������ 13,467.7 304.9 4,846.7 4,211.9 4,104.3 660.2 4,575.9 2,435.4 1,507.9 1,68

Nonfarm nonresidential������������������������������������ 4,837.1 227.9 1,827.6 1,378.8 1,402.8 462.7 1,380.1 1,030.4 678.8 

Multifamily residential real estate �������������������� 1,579.6 20.9 318.0 744.1 496.6 90.0 414.3 711.2 91.5 

1-4 family residential ���������������������������������������� 11,486.8 299.3 2,358.8 1,598.5 7,230.3 947.2 4,081.6 3,232.7 945.8 88

Farmland����������������������������������������������������������� 173.8 20.5 107.1 30.3 15.8 16.5 28.3 26.2 35

GNMA properties���������������������������������������������� 2,303.5 0.7 8.8 132.0 2,161.9 21.3 185.2 1,071.1 935.

* 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 2009, Volume 3, No. 3

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

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

2nd Quarter

2009

1st Quarter 

2009

4th Quarter 

2008

3rd Quarter 

2008

2nd Quarter 

2008

%Change 

08Q2-

09Q2

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����������������� 1,213 1,169 1,102 1,070 1,068 13.6 106 709 315 8

Total assets of institutions reporting derivatives ���������� $10,593,234 $10,671,165 $10,975,131 $10,723,566 $10,105,030 4.8 $7,460 $298,237 $893,695 $9,393,84

Total deposits of institutions reporting derivatives������� 7,095,896 6,982,180 7,091,683 6,801,835 6,451,181 10.0 6,106 238,282 666,189 6,185,31

Total derivatives������������������������������������������������������������� 204,956,755 203,388,080 212,114,644 177,121,812 183,302,532 11.8 294 20,859 66,244 204,869,35

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 171,919,307 169,395,791 175,894,783 137,207,613 144,933,910 18.6 282 20,354 62,286 171,836,38

Foreign exchange*��������������������������������������������������������� 16,646,702 16,272,941 16,922,815 19,729,753 19,419,103 -14.3 0 72 2,360 16,644,27

Equity ����������������������������������������������������������������������������� 2,041,640 2,174,368 2,206,793 2,786,005 2,343,165 -12.9 12 181 1,294 2,040,15

Commodity & other (excluding credit derivatives)�������� 909,033 938,063 1,061,132 1,250,074 1,137,544 -20.1 0 191 221 908,62

Credit������������������������������������������������������������������������������ 13,440,073 14,606,916 16,029,122 16,148,367 15,468,809 -13.1 0 61 84 13,439,92

Total�������������������������������������������������������������������������������� 204,956,755 203,388,080 212,114,644 177,121,812 183,302,532 11.8 294 20,859 66,244 204,869,35

Derivative Contracts by Transaction Type 

Swaps ���������������������������������������������������������������������������� 135,613,797 133,873,113 143,110,842 108,289,345 114,178,373 18.8 21 10,429 38,733 135,564,61

Futures & forwards �������������������������������������������������������� 24,706,040 23,587,666 22,528,731 24,492,578 23,581,083 4.8 134 4,518 14,430 24,686,95

Purchased options��������������������������������������������������������� 14,928,717 14,936,181 14,824,429 13,491,255 14,501,600 2.9 19 931 4,003 14,923,76

Written options��������������������������������������������������������������� 14,787,496 14,983,349 14,922,615 13,454,312 14,415,336 2.6 120 4,859 8,607 14,773,90

Total�������������������������������������������������������������������������������� 190,036,050 187,380,309 195,386,617 159,727,490 166,676,391 14.0 294 20,737 65,773 189,949,24

Fair Value of Derivative Contracts

Interest rate contracts���������������������������������������������������� 126,040 138,559 131,483 27,300 75,945 66.0 1 -83 104 126,01

Foreign exchange contracts������������������������������������������ -10,569 -10,460 -16,942 15,054 32,017 N/M 0 0 6 -10,576

Equity contracts������������������������������������������������������������� 679 3,114 2,871 3,742 -3,742 N/M 0 3 9 667

Commodity & other (excluding credit derivatives)�������� 1,156 4,158 3,848 3,173 5,064 -77.2 0 1 2 1,15

Credit derivatives as guarantor������������������������������������� -476,973 -959,080 -975,755 -566,035 -398,893 N/M 0 0 2 -476,975

Credit derivatives as beneficiary����������������������������������� 525,587 1,031,185 1,046,813 603,936 428,844 22.6 0 0 -2 525,58

Derivative Contracts by Maturity** 

Interest rate contracts ����������������������������� < 1 year 72,457,870 68,442,052 58,618,112 40,400,427 44,995,355 61.0 101 3,887 17,083 72,436,80

 ������������������������������������������ 1-5 years 35,921,531 37,293,223 47,456,432 37,760,963 39,521,416 -9.1 15 7,579 18,358 35,895,58

 ������������������������������������������ > 5 years 28,356,868 29,984,848 36,868,247 28,785,015 29,704,390 -4.5 12 3,581 16,391 28,336,88

Foreign exchange contracts ������������������� < 1 year 9,490,042 9,234,329 10,561,395 12,664,219 12,345,486 -23.1 0 7 1,445 9,488,58

 ������������������������������������������ 1-5 years 2,293,453 2,163,751 2,168,136 1,787,926 1,929,554 18.9 0 3 11 2,293,43

 ������������������������������������������ > 5 years 1,193,852 1,056,793 1,079,943 676,596 734,445 62.6 0 0 0 1,193,85

Equity contracts��������������������������������������� < 1 year 343,418 348,777 409,029 508,748 504,258 -31.9 0 36 83 343,29

 ������������������������������������������ 1-5 years 291,182 286,171 256,252 332,908 207,513 40.3 4 83 441 290,65

 ������������������������������������������ > 5 years 75,716 82,843 72,337 81,967 76,283 -0.7 0 1 5 75,71

Commodity & other contracts ����������������� < 1 year 252,705 279,748 264,916 294,036 315,202 -19.8 0 12 172 252,52

 ������������������������������������������ 1-5 years 211,329 206,173 261,768 288,860 267,344 -21.0 0 111 4 211,21

 ������������������������������������������ > 5 years 45,443 41,546 45,031 88,832 28,377 60.1 0 10 0 45,43

Risk-Based Capital: Credit Equivalent Amount

Total current exposure to tier 1 capital (%)������������������� 66.7 86.1 107.4 60.3 57.8 0.1 0.5

Total potential future exposure to tier 1 capital (%)������ 80.6 89.2 103.2 122.3 118.5 0.1 0.4

Total exposure (credit equivalent amount) 

to tier 1 capital (%)�������������������������������������������������� 147.3 175.3 210.6 182.6 176.3 0.2 0.9 

Credit losses on derivatives***���������������������������������� 383.4 217.1 1072.4 226.7 134.8 184.4 0.0 0.6

HELD FOR TRADIN

Number of institutions reporting derivatives����������������� 204 199 181 187 183 11.5 7 72 69 5

Total assets of institutions reporting derivatives ���������� 8,912,447 9,016,731 9,413,833 9,236,235 8,598,255 3.7 512 31,269 279,235 8,601,43

Total deposits of institutions reporting derivatives������� 5,989,045 5,886,190 6,085,115 5,856,346 5,502,730 8.8 403 25,096 202,953 5,760,59

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 169,591,905 167,216,659 173,827,598 135,190,125 142,694,501 18.8 8 1,004 19,496 169,571,39

Foreign exchange���������������������������������������������������������� 15,058,288 14,766,077 16,147,796 18,396,233 18,166,939 -17.1 0 0 1,604 15,056,68

Equity ����������������������������������������������������������������������������� 2,034,228 2,162,149 2,195,068 2,773,712 2,331,974 -12.8 0 1 258 2,033,97

Commodity & other�������������������������������������������������������� 906,108 935,634 1,058,678 1,246,952 1,134,781 -20.2 0 11 115 905,98

Total�������������������������������������������������������������������������������� 187,590,530 185,080,519 193,229,140 157,607,022 164,328,194 14.2 8 1,016 21,472 187,568,03

Trading Revenues: Cash & Derivative Instruments

Interest rate�������������������������������������������������������������������� 1,078 9,078 -5,282 -137 1,926 -44.0 0 0 -11 1,09

Foreign exchange���������������������������������������������������������� 2,132 2,436 3,422 3,098 2,379 -10.4 0 0 7 2,12

Equity ����������������������������������������������������������������������������� -281 1,043 -1,061 561 372 N/M 0 0 0 -281

Commodity & other (including credit derivatives) �������� 2,212 -2,378 -6,264 2,900 -2,837 N/M 0 0 1 2,212

Total trading revenues��������������������������������������������������� 5,141 10,179 -9,186 6,422 1,839 179.6 0 0 -5 5,14

Share of Revenue

Trading revenues to gross revenues (%) ���������������������� 3.9 7.6 -8.0 4.6 1.3 0.0 0.0

Trading revenues to net operating revenues (%)���������� 94.6 138.0 44.1 66.9 24.8 0.0 -0.8

HELD FOR PURPOSES OTHER THAN TRA

Number of institutions reporting derivatives����������������� 1,083 1,046 998 970 975 11.1 98 638 270 7

Total assets of institutions reporting derivatives ���������� 10,215,027 10,303,184 10,464,341 10,396,557 9,806,940 4.2 6,894 268,553 751,001 9,188,57

Total deposits of institutions reporting derivatives������� 6,845,052 6,728,712 6,820,742 6,589,371 6,256,369 9.4 5,661 214,130 559,832 6,065,42

Derivative Contracts by Underlying Ris

Exposure 

Interest rate�������������������������������������������������������������������� 2,327,403 2,179,131 2,067,185 2,017,489 2,239,410 3.9 274 19,350 42,790 2,264,98

Foreign exchange���������������������������������������������������������� 107,782 106,011 76,113 87,565 94,832 13.7 0 11 369 107,40

Equity ����������������������������������������������������������������������������� 7,412 12,219 11,725 12,293 11,191 -33.8 12 181 1,036 6,18

Commodity & other�������������������������������������������������������� 2,924 2,429 2,454 3,121 2,763 5.8 0 180 106 2,63

Total notional amount ���������������������������������������������������� 2,445,520 2,299,790 2,157,477 2,120,468 2,348,196 4.1 286 19,721 44,301 2,381,21

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 2009, Volume 3, No. 3

Quarterly Banking Profile

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

Savings Banks)

Asset Size Distribution

(dollar figures in millions)

2nd 

Quarter

2009

1st 

Quarter 

2009

4th 

Quarter 

2008

3rd 

Quarter 

2008

2nd 

Quarter 

2008

%Change 

08Q2-

09Q2

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 Enhancement

Number of institutions reporting securitization activities ����������������������������������������� 143 132 132 128 130 10.0 16 62 25 4

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� $1,222,450 $1,234,585 $1,256,021 $1,217,682 $1,087,215 12.4 $154 $835 $2,360 $1,219,10

Home equity loans��������������������������������������������������������������������������������������������� 6,594 6,595 6,692 6,880 7,822 -15.7 0 0 46 6,54

Credit card receivables�������������������������������������������������������������������������������������� 397,918 399,113 398,261 417,832 409,883 -2.9 0 3,304 11,863 382,75

Auto loans ���������������������������������������������������������������������������������������������������������� 10,266 11,230 12,040 13,842 6,224 64.9 0 0 100 10,16

Other consumer loans ��������������������������������������������������������������������������������������� 26,006 26,692 27,427 28,090 28,870 -9.9 0 0 0 26,00

Commercial and industrial loans����������������������������������������������������������������������� 9,019 8,317 9,705 11,080 12,491 -27.8 0 4 3,365 5,65

All other loans, leases, and other assets* �������������������������������������������������������� 193,380 197,693 198,471 197,010 194,756 -0.7 53 103 145 193,07

Total securitized and sold������������������������������������������������������������������������������������������ 1,865,634 1,884,227 1,908,617 1,892,416 1,747,262 6.8 207 4,247 17,879 1,843,30

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 6,046 6,279 6,892 7,514 7,121 -15.1 4 16 0 6,02

Home equity loans��������������������������������������������������������������������������������������������� 1,063 1,120 1,247 1,347 1,527 -30.4 0 0 0 1,06

Credit card receivables�������������������������������������������������������������������������������������� 129,373 39,100 23,228 24,039 23,129 459.4 0 482 1,681 127,21

Auto loans ���������������������������������������������������������������������������������������������������������� 722 912 707 447 352 105.1 0 0 7 71

Other consumer loans ��������������������������������������������������������������������������������������� 1,399 1,429 1,532 1,428 1,417 -1.3 0 0 0 1,39

Commercial and industrial loans����������������������������������������������������������������������� 184 367 137 170 311 -40.8 0 0 0 18

All other loans, leases, and other assets���������������������������������������������������������� 299 301 612 714 1,128 -73.5 1 19 2 27

Total credit exposure ������������������������������������������������������������������������������������������������� 139,087 49,509 34,355 35,660 34,984 297.6 5 517 1,691 136,87

Total unused liquidity commitments provided to institution's own securitizations ��� 378 397 830 1,273 1,902 -80.1 0 0 0 37

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

1-4 family residential loans�������������������������������������������������������������������������������� 4.3 4.1 4.4 3.8 2.8 1.9 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.8 1.1 1.4 1.3 0.6 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 2.6 3.0 2.9 2.5 2.1 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 2.2 2.0 2.5 2.1 2.2 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 2.9 3.1 3.9 3.2 2.7 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 2.6 3.1 2.6 1.6 1.3 0.0 8.

All other loans, leases, and other assets���������������������������������������������������������� 1.9 0.6 0.6 0.2 0.3 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 3.7 3.5 3.7 3.1 2.3 1.4 1.

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

1-4 family residential loans�������������������������������������������������������������������������������� 6.6 5.8 4.5 3.2 1.9 1.4 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.9 1.4 1.2 0.7 0.7 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 2.9 3.0 2.5 2.1 2.1 0.0 1.

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

Other consumer loans ��������������������������������������������������������������������������������������� 3.3 3.5 3.7 2.9 2.4 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 1.3 3.1 2.1 1.5 1.3 0.0 13.

All other loans, leases, and other assets���������������������������������������������������������� 1.6 1.1 0.4 0.2 0.2 0.8 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 5.2 4.6 3.6 2.6 1.8 1.2 1.

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans�������������������������������������������������������������������������������� 0.5 0.2 0.3 0.3 0.1 0.0 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.9 0.6 0.1 0.4 0.2 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 4.8 2.1 6.4 4.4 2.8 0.0 3.

Auto loans ���������������������������������������������������������������������������������������������������������� 1.1 0.8 0.8 1.3 0.9 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 0.5 0.2 0.8 0.6 0.4 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 6.9 2.6 5.9 3.6 1.9 0.0 0.0

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

Total loans, leases, and other assets ����������������������������������������������������������������������� 1.4 0.6 1.6 1.2 0.7 0.0 2.

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

Home equity loans��������������������������������������������������������������������������������������������� 134 165 124 166 435 -69.2 0 0 0 13

Credit card receivables�������������������������������������������������������������������������������������� 68,128 77,212 113,017 98,826 82,604 -17.5 0 322 3,867 63,93

Commercial and industrial loans����������������������������������������������������������������������� 451 450 436 636 3,506 -87.1 0 0 295 15

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

Home equity loans��������������������������������������������������������������������������������������������� 4 5 5 6 7 -42.9 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 594 556 584 623 403 47.4 0 3 592 

Commercial and industrial loans����������������������������������������������������������������������� 0 0 16 15 1 -100.0 0 0 0 

Assets Sold with Recourse and Not Securitized

Number of institutions reporting asset sales ���������������������������������������������������� 821 815 795 786 776 5.8 161 499 116 4

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 69,597 69,811 70,660 73,001 65,959 5.5 1,202 9,929 4,589 53,87

Home equity, credit card receivables, auto, and other consumer loans ��������� 1,160 1,348 1,477 1,611 1,786 -35.1 0 31 12 1,11

Commercial and industrial loans����������������������������������������������������������������������� 3,195 6,028 6,698 7,314 4,794 -33.4 1 60 8 3,12

All other loans, leases, and other assets���������������������������������������������������������� 47,558 46,438 46,254 45,203 33,191 43.3 0 98 178 47,28

Total sold and not securitized������������������������������������������������������������������������������������ 121,511 123,625 125,088 127,129 105,730 14.9 1,203 10,118 4,786 105,40

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 14,917 15,198 15,290 15,586 14,543 2.6 121 2,118 2,838 9,84

Home equity, credit card receivables, auto, and other consumer loans ��������� 113 183 189 203 240 -52.9 0 7 3 10

Commercial and industrial loans����������������������������������������������������������������������� 2,224 4,995 5,617 6,180 3,614 -38.5 1 50 8 2,16

All other loans, leases, and other assets���������������������������������������������������������� 10,009 9,790 9,528 9,312 8,541 17.2 0 44 59 9,90

Total credit exposure ������������������������������������������������������������������������������������������������� 27,263 30,166 30,625 31,280 26,937 1.2 122 2,219 2,908 22,01

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others ������� 59 55 51 49 47 25.5 21 28 5 

Total credit exposure ������������������������������������������������������������������������������������������������� 3,808 2,131 3,319 6,050 12,668 -69.9 10 57 14 3,72

Total unused liquidity commitments ������������������������������������������������������������������������� 475 936 1,416 3,531 5,492 -91.4 0 0 0 47

Other

Assets serviced for others**�������������������������������������������������������������������������������������� 5,880,038 5,683,430 5,615,123 5,528,963 3,921,914 49.9 4,299 72,657 95,231 5,707,85

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others������������������ 20,210 22,981 23,064 20,830 21,083 -4.1 5 0 455 19,75

Unused liquidity commitments to conduits sponsored by institutions 

 and others �������������������������������������������������������������������������������������������������� 210,026 273,542 297,908 311,683 339,007 -38.0 0 0 0 210,02

Net servicing income (for the quarter)���������������������������������������������������������������������� 10,858 5,947 -336 4,110 7,280 49.1 9 188 307 10,35

Net securitization income (for the quarter)��������������������������������������������������������������� -142 2,124 2,393 3,120 4,206 -103.4 0 48 62 -25

Total credit exposure to Tier 1 capital (%)***������������������������������������������������������������ 15.7 7.7 6.8 7.4 7.3 0.7 2.2

* Line item titled “All other loans and all leases” for quarters prior to March 31, 2006

** 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 2009, Volume 3, No. 3

During the second quarter of 2009, total assets of the 

nation’s 8,195 FDIC-insured commercial banks and 

savings institutions decreased by 1.8 percent ($238.1 

billion). During this period, total deposits increased by 

0.7 percent ($66.7 billion), foreign office deposits 

increased by 3.6 percent ($51.0 billion), and domestic 

office deposits increased by 0.2 percent ($15.7 billion). 

Domestic non-interest-bearing deposits increased by 

2.3 percent ($32.6 billion) and savings deposits and 

interest bearing checking accounts increased by 2.8 

percent ($92.9 billion), while domestic time deposits 

decreased by 4.0 percent ($109.8 billion). For the 12 

months ending June 30, total domestic deposits grew by 

7.5 percent ($525.5 billion), as interest-bearing deposits 

increased by 4.7 percent ($274.3 billion) and noninterest-bearing deposits rose by 20.5 percent ($251.3 

billion). Over the past year, the share of assets funded 

by domestic deposits increased from 52.8 percent to 

56.8 percent. In contrast, over the same 12 months, 

Federal Home Loan Bank (FHLB) advances as a share 

of asset funding declined from 6.3 percent to 4.8 

percent and foreign deposits’ share of assets declined 

from 11.6 percent to 11.0 percent. FHLB advances 

decreased by 24.5 percent ($206.1 billion) and foreign 

office deposits decreased by 5.0 percent ($77.6 billion) 

over the 12 months ending June 30. 

Beginning in the second quarter of 2009, brokered 

deposits that exceed 10 percent of an institution’s 

domestic deposits are included in the metrics used to 

price an institution’s deposit insurance.1 Brokered 

1

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

depends, in part, on the institution’s 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, regardless of the rate of growth of assets. Reciprocal 

brokered deposits are included in the amount of brokered deposits for 

purposes of computing this ratio.

deposits decreased by 5.8 percent ($45.2 billion) during 

the second quarter, the largest quarterly decline since 

the first quarter of 2005, when brokered deposits 

decreased by 9.6 percent. At mid-year 2009, 46 percent 

(3,758) of FDIC-insured banks and thrifts used brokered 

deposits to fund a portion of their balance sheet, and 

roughly 40 percent (1,488) of these institutions had 

brokered deposits that exceeded 10 percent of their 

domestic deposits. Insured institutions began itemizing 

reciprocal brokered deposits2 on their reports of condition beginning June 30, 2009; 1,352 institutions 

reported $34.2 billion in reciprocal brokered deposits, 

amounting to 4.7 percent of total outstanding brokered 

deposits. 

Estimated insured deposits at all FDIC-insured institutions (based on the $100,000 coverage limit) decreased 

by 0.3 percent during the second quarter of 2009 but 

increased 7.8 percent during the past four quarters 

combined. For institutions existing as of March 31, 

2009, and June 30, 2009, insured deposits increased 

during the second quarter at 4,724 institutions (58 

percent), decreased at 3,419 institutions (42 percent), 

and remained unchanged at 40 institutions.

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 (from the permanent limit of 

$100,000 for deposits other than retirement accounts) 

through the end of 2013. The legislation also eliminated the provision in the Emergency Economic Stabilization Act of 2008 that prevented the FDIC from 

considering this temporary increase in deposit insurance 

2

 Reciprocal brokered deposits are deposits that an insured depository 

institution receives through a deposit placement network on a reciprocal basis, such that: (1) For any deposit received, the institution (as 

agent for depositors) places the same amount with other insured 

depository institutions through the network; and (2) each member of 

the network sets the interest rate to be paid on the entire amount of 

funds it places with other network members.

■ DIF Reserve Ratio Declines 5 Basis Points to 0.22 Percent

■ Insured Deposit Growth Was Flat in Second Quarter

■ 24 Institutions Failed during Second Quarter

■ 5-Basis-Point Special Assessment Levied on Industry Assets

INSURANCE FUND INDICATORS
FDIC Quarterly 15 2009, Volume 3, No. 3

Quarterly Banking Profile

The reduction in the DIF was primarily due to an $11.6 

billion increase in loss provisions for bank failures. 

Twenty-four insured institutions with combined assets 

of $26.4 billion failed during the second quarter of 

2009, the largest number of quarterly failures since the 

fourth quarter of 1992, when 42 insured institutions 

failed. For 2009 through the end of the second quarter, 

45 insured institutions with combined assets of $35.9 

billion failed at an estimated current cost to the DIF of 

$10.5 billion.

The DIF’s reserve ratio was 0.22 percent on June 30, 

2009, down from 0.27 percent at March 31, 2009, and 

1.01 percent one year ago. The June figure is the lowest 

reserve ratio for the combined bank and thrift insurance 

fund since March 31, 1993, when the reserve ratio was 

0.06 percent. All else being equal, an increase in 

insured deposits, will reduce the reserve ratio.

Author: Kevin Brown, Sr. Financial Analyst

Division of Insurance and Research

(202) 898-6817

coverage for purposes of setting deposit insurance assessments. Starting on September 30, 2009, insured deposit 

estimates will be based on the increased insurance 

coverage limit of $250,000. 

On June 30, 2009, a special assessment was imposed on 

all insured banks and thrifts. For 8,106 institutions, 

with assets of $9.3 trillion, the special assessment was 5 

basis points of each institution’s assets minus Tier 1 

capital; 89 other institutions, with assets of $4.0 trillion, 

had their special assessment capped at 10 basis points of 

their second quarter assessment base.

The Deposit Insurance Fund (DIF) decreased by $2.6 

billion (20.3 percent) during the second quarter to 

$10.4 billion (unaudited). Accrued assessment income 

from the regular and the special assessment increased 

the fund by $9.1 billion. Interest earned, combined with 

realized gains on securities and debt guarantee 

surcharges from the Temporary Liquidity Guarantee 

Program added $1.1 billion to the fund. Unrealized 

losses on available-for-sale securities combined with 

operating expenses reduced the fund by $1.3 billion.
FDIC Quarterly 16 2009, Volume 3, No. 3

DIF Reserve Ratios***

Percent of Insured Deposits

1.25 1.23 1.23 1.22 1.21 1.20 1.21 1.22 1.22 1.19

1.01

0.76

0.36

0.27

0.22

12/05 6/06 12/06 6/07 12/07 6/08 12/08 6/09

Table I-B. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund

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

4th 

Quarter 

2006

3rd 

Quarter 

2006

2nd 

Quarter 

2006

Beginning Fund Balance ................. $13,007 $17,276 $34,588 $45,217 $52,843 $52,413 $51,754 $51,227 $50,745 $50,165 $49,992 $49,564 $49,193

Changes in Fund Balance:

Assessments earned .......................... 9,095 2,615 996 881 640 448 239 170 140 94 10 10 7

Interest earned on investment 

securities ..................................... 240 212 277 526 651 618 585 640 748 567 476 622 665

Realized gain on sale of investments .. 521 136 302 473 0 0 0 0 0 0 0 0 0

Operating expenses ........................... 298 266 290 249 256 238 262 243 248 239 248 237 242

Provision for insurance losses ........... 11,615 6,637 19,163 11,930 10,221 525 39 132 -3 -73 49 -50 -6

All other income, net of expenses ...... 375 2 15 16 1 0 -2 24 1 4 5 1 12

Unrealized gain/(loss) on 

available-for-sale securities ........ -957 -331 551 -346 1,559 127 138 68 -162 81 -21 -18 -77

Total fund balance change ................. -2,639 -4,269 -17,312 -10,629 -7,626 430 659 527 482 580 173 428 371

Ending Fund Balance ....................... 10,368 13,007 17,276 34,588 45,217 52,843 52,413 51,754 51,227 50,745 50,165 49,992 49,564

Percent change from four 

 quarters earlier ..................... -77.07 -75.39 -67.04 -33.17 -11.73 4.13 4.48 3.52 3.36 3.15 3

Reserve Ratio (%) ............................. 0.22 0.27 0.36 0.76 1.01 1.19 1.22 1.22 1.21 1.20

Estimated Insured Deposits**......... 4,817,712 4,832,842 4,750,724 4,545,316 4,467,808 4,438,141 4,292,221 4,242,607 4,235,044 4,245,266 4,153,786 4,100,013 4,040,353

Percent change from four 

 quarters earlier ..................... 7.83 8.89 10.68 7.13 5.50 4.54 3.33 3.48 .82 .08 6.76

Domestic Deposits ........................... 7,561,458 7,546,973 7,505,409 7,230,328 7,036,248 7,076,718 6,921,687 6,747,998 6,698,886 6,702,598 6,640,105 6,484,372 6,446,868

Percent change from four 

 quarters earlier ..................... 7.46 6.65 8.43 7.15 5.04 5.58 4.24 4.07 3.91 5.71 6

Number of institutions reporting ... 8,205 8,257 8,315 8,394 8,462 8,505 8,545 8,570 8,625 8,661 8,692 8,755 8,790

Deposit Insurance Fund Balance 

and Insured Deposits***

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

9/05 48,373 3,830,950

12/05 48,597 3,890,941

3/06 49,193 4,001,906

6/06 49,564 4,040,353

9/06 49,992 4,100,013

12/06 50,165 4,153,786

3/07 50,745 4,245,266

6/07 51,227 4,235,044

9/07 51,754 4,242,607

12/07 52,413 4,292,221

3/08 52,843 4,438,141

6/08 45,217 4,467,808

9/08 34,588 4,545,316

12/08 17,276 4,750,724

3/09 13,007 4,832,842

6/09 10,368 4,817,712

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

(dollar figures in millions) 2009***** 2008***** 2008 2007 2006 2005 2004

Problem Institutions

Number of institutions ��������������������������������������������������������� 416 117 252 76 50 52 80

Total assets�������������������������������������������������������������������������� $299,837 $78,343 $159,405 $22,189 $8,265 $6,607 $28,250

Failed Institutions

Number of institutions ��������������������������������������������������������� 45 4 25 3 0 0 4

Total assets�������������������������������������������������������������������������� $35,868 $2,020 $371,945 $2,615 $0 $0 $170

Assisted Institutions****

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

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

* For 2009, preliminary unaudited fund data, which are subject to change

** 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 the second quarter of 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 will included the temporary coverage increase to $250,000

*** Prior to 2006, amounts represent sum of separate BIF and SAIF amounts

  Five institutions under the same holding company received assistance under a systemic risk determination

** *** Through June 30
FDIC Quarterly 17 2009, Volume 3, No. 3

Quarterly Banking Profile

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

(dollar figures in millions) 

June 30, 2009

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ����������������������������������������������� 6,995 $11,895,077 $6,611,400 $4,054,368

 FDIC-Supervised ������������������������������������������������������������������� 4,632 2,009,048 1,511,377 1,079,959

 OCC-Supervised�������������������������������������������������������������������� 1,505 8,177,336 4,138,412 2,399,642

 Federal Reserve-Supervised������������������������������������������������� 858 1,708,693 961,611 574,767

FDIC-Insured Savings Institutions ���������������������������������������������� 1,200 1,406,377 943,274 758,921

 OTS-Supervised Savings Institutions������������������������������������ 793 1,098,694 722,687 586,779

 FDIC-Supervised State Savings Banks��������������������������������� 407 307,683 220,587 172,142

Total Commercial Banks and Savings Institutions ���������������������� 8,195 13,301,455 7,554,674 4,813,289

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks ������������������������������������������������� 10 28,162 6,783 4,4

Total FDIC-Insured Institutions���������������������������������������������������� . 8,205 13,329,617 7,561,458 4,817,7

* Excludes $1.47 trillion in foreign office deposits, which are uninsure

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

Quarter Ending March 31, 2009

(dollar figures in billions)

Risk Categor

Annual 

Rate in

Basis Points

Number of 

Institutions

Percent 

of Total 

Institutions

Domestic 

Deposits

Percent 

of Total 

Domestic 

Deposits

I - Minimum.......................

I - Middle..............................

I - Middle..............................

I - Maximum.....................

II.....................

III.................

IV...............

Note: Institutions are categorized based on supervisory ratings, debt ratings, and financial data as of March 31, 2009

Rates do not reflect the application of assessment credits. See notes to users for further information on risk categories and rate
FDIC Quarterly 18 2009, Volume 3, No. 3

FDIC Responds to Market Disruptions with TLGP

The FDIC Board approved the Temporary Liquidity 

Guarantee Program (TLGP)1 on October 13, 2008, as 

major disruptions in credit markets blocked access to 

liquidity for financial institutions. The TLGP improved 

access to liquidity by fully guaranteeing non-interestbearing transaction deposit accounts above $250,000, 

regardless of dollar amount, in the Transaction Account 

Guarantee Program, and by guaranteeing eligible senior 

unsecured debt issued by eligible institutions in the 

Debt Guarantee Program.

Although financial markets have improved significantly since the TLGP was implemented, portions of 

the industry are still suffering from recent economic 

turmoil. To facilitate the orderly phase-out of the 

TLGP, and to continue access to FDIC guarantees 

where they are needed, the FDIC Board has extended 

both components of the program.

A final rule extending the Transaction Account Guarantee component of the TLGP by six months, to June 30, 

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

participating in the Transaction Account Guarantee 

Program will have an opportunity to opt out of the 

extended program. Depository institutions that remain 

in the extended program will be subject to increased fees 

that are adjusted to reflect the institution’s risk.2

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 beginning in the second quarter of 2009.3

1

 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 2

 See http://www.fdic.gov/news/board/Aug26no4.pdf 3

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

All insured depository institutions are eligible to participate in the Transaction Account Guarantee Program. 

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 insured 

depository institutions that the FDIC designates as 

eligible entities.

Program Funded by Industry Fees and Assessments

The TLGP does not rely on taxpayer funding or the 

Deposit Insurance Fund. Both components of the 

program are paid for by direct user fees. Institutions 

participating in the Transaction Account Guarantee 

Program provide customers full coverage on noninterest-bearing transaction accounts for an annual fee 

of 10 basis points through year-end 2009. Fees for qualifying non-interest-bearing transaction accounts guaranteed between January 1, 2010, and June 30, 2010, will 

be based on the participating entity’s risk category 

assignment under the FDIC’s risk-based premium 

system. Annualized fees will be either 15, 20, or 25 basis 

points, depending on an institution’s risk category.

Fees for participation in the Debt Guarantee Program 

depend on the maturity of debt issued and range from 

50 to 100 basis points (annualized). A surcharge will be 

imposed on debt issued with a maturity of one year or 

greater after April 1, 2009. For debt that is not issued 

under the extension, that is, debt that is issued on or 

before June 30, 2009, and matures on or before June 30, 

2012, surcharges will be 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 will be 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 June 30, 

2009, a total of $8.7 billion in fees had been assessed 

under the Debt Guarantee Program.

■ Transaction Account Guarantee Program Extended to June 30, 2010

■ Debt Guarantee Program Extended to October 31, 2009

■ More Than 600,000 Additional Transaction Accounts Receive Full Coverage

■ $339 Billion in Debt Outstanding in Program

TEMPORARY LIQUIDITY GUARANTEE PROGRAM
FDIC Quarterly 19 2009, Volume 3, No. 3

Quarterly Banking Profile

Table I-C. Participation in Temporary Liquidity Guarantee Program

June 30, 2009 Total Eligible Entities Number Opting In Percent Opting In

Transaction Account Guarantee Program

Depository Institutions with Assets <= $10 Billion�������������������������������� 8,087 6,992 86.5

Depository Institutions with Assets > $10 Billion ���������������������������������� 117 109 93.2

 Total Depository Institutions*���������������������������������������������������������� 8,204 7,101 86.6

Debt Guarantee Program

Depository Institutions with Assets <= $10 Billion�������������������������������� 8,087 4,356 53.9

Depository Institutions with Assets > $10 Billion ���������������������������������� 117 108 92.3

 Total Depository Institutions*���������������������������������������������������������� 8,204 4,464 54.4

Bank and Thrift Holding Companies and 

Non-Insured Affiliates���������������������������������������������������������������������������� 6,324 3,574 56.5

 All Entities���������������������������������������������������������������������������������������� 14,528 8,038 55.3

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

$339 Billion in FDIC-Guaranteed Debt Was 

Outstanding at June 30, 2009

Ninety-seven financial entities—64 insured depository 

institutions and 33 bank and thrift holding companies 

and nonbank affiliates—had $339 billion in guaranteed 

debt outstanding at the end of the second quarter. 

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 82 percent of FDIC-guaranteed debt outstanding 

at June 30, 2009.

Debt outstanding at June 30 had longer terms at 

issuance, compared with debt outstanding at year-end. 

Only 17 percent of debt outstanding matures in 180 

days or less, compared with 49 percent at year-end; and 

62 percent matures more than two years after issuance, 

compared with 39 percent at December 31, 2008. 

Among types of debt instruments, almost threequarters, 74 percent, was in medium-term notes, 

compared with 44 percent at year-end. The share of 

outstanding debt in commercial paper fell to 15 percent 

from 43 percent at year-end.

Author: Katherine Wyatt

Chief, Financial Analysis Section

Division of Insurance and Research

(202) 898-6755

A Majority of Eligible Entities Have Chosen to 

Participate in the TLGP

More than 86 percent of FDIC-insured institutions 

have opted in to the Transaction Account Guarantee 

Program, and more than half of all eligible entities have 

opted in to the Debt Guarantee Program. Lists of institutions that opted out of the guarantee programs are 

posted at http://www.fdic.gov/regulations/resources/

TLGP/optout.html.

$700 Billion in Transaction Accounts Over 

$250,000 Guaranteed

According to second quarter 2009 Call and Thrift 

Financial Reports, insured institutions reported 655,427 

non-interest-bearing transaction accounts over 

$250,000, an increase of 12 percent compared with first 

quarter 2009. These deposit accounts totaled $900 

billion, of which $736 billion was guaranteed under the 

Transaction Account Guarantee Program. More than 

5,800 FDIC-insured institutions reported non-interestbearing transaction accounts over $250,000 in value.

Debt Outstanding Represents 43 Percent of 

Total Cap on Issuers’ Guaranteed Debt

The amount of FDIC-guaranteed debt that can be 

issued by each eligible entity, or its “cap,” is based on 

the amount of its senior unsecured debt outstanding as 

of September 30, 2008, that matures on or before June 

30, 2009. Eligible entities may issue debt up to 125 

percent of that outstanding amount. The cap for FDICinsured institutions that had no outstanding short-term 

senior unsecured debt other than Fed funds is set at 

2 percent of liabilities as of September 30, 2008. Total 

debt outstanding at quarter end represented 43 percent 

of issuing entities’ total cap.
FDIC Quarterly 20 2009, Volume 3, No. 3

Table V-C. Fees Assessed Under TLGP

(dollar figures in millions)

Debt Guarantee Program

Transaction Account 

Guarantee Program*

Total Fees 

Assessed Surcharges 

Total Fee 

Amount Fees Collected

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

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

Second Quarter 2009 1,413 385 1,797 179

Total��������������������������������������������������������������������������������� $8,283 $385 $8,667 $269

* Pro-rated payment in arrears

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

June 30, 2009

(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�������������������������������������� 24,390 35 0 134 0 794 25,353 7.5%

91-180 days������������������������������������������� 24,134 528 0 1,812 480 5,330 32,283 9.5%

181-364 days����������������������������������������� 2,608 22 3,400 1,587 1 2,371 9,988 2.9%

1-2 years ����������������������������������������������� 0 3 56,341 37 0 4,790 61,172 18.0%

Over 2-3 years �������������������������������������� 0 0 70,697 0 3,352 5,991 80,039 23.6%

Over 3 years������������������������������������������ 1 0 120,235 4 3,713 6,251 130,203 38.4%

Total ������������������������������������������������ 51,133 588 250,673 3,573 7,545 25,527 339,038

Share of Total���������������������������������������� 15.1% 0.2% 73.9% 1.1% 2.2% 7.5%

Table IV-C. Debt Outstanding in Guarantee Program 

June 30, 2009

(dollar figures in millions) Number Debt Outstanding Cap1 for Group

Debt Outstanding 

Share of Cap

Insured Depository Institutions

Assets <= $10 Billion ������������������������������������������������������� 44 1,635 3,059 53.5

Assets > $10 Billion ��������������������������������������������������������� 20 59,691 314,778 19.0

Bank and Thrift Holding Companies,

Non-Insured Affiliates ������������������������������������������������������������ 33 277,712 471,205 58.9

All Issuers����������������������������������������������������������������������� 97 339,038 789,042 43.0

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) December 31, 

2008

March 31, 

2009

June 30, 

2009

% Change 

09Q1-09Q2

Number of Non-Interest-Bearing Transaction Accounts over $250,000������� 526,158 584,839 655,427 12.1

Amount in Non-Interest-Bearing Transaction Accounts over $250,000�������� $853,671 $858,023 $899,982 4.9

Amount Guaranteed ��������������������������������������������������������������������������������������� $722,132 $711,813 $736,125 3.4

Table II-C. Cap on FDIC-Guaranteed Debt for Opt-In Entities

June 30, 2009

(dollar figures in millions)

Opt-In Entities with Senior Unsecured

Debt Outstanding at 9/30/2008

Opt-In Depository Institutions 

with no Senior Unsecured

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*������������������������������������ 116 $3,532 $4,415 4,240 $33,336 4,356 $37,751

Depository Institutions with Assets 

> $10 Billion*�������������������������������������� 44 295,879 369,849 64 28,988 108 398,837

Bank and Thrift Holding 

Companies, Non-Insured Affiliates ��������� 88 398,008 497,511 3,486 N/A 3,574 497,511

Total��������������������������������������������������������� 248 697,420 871,775 7,790 62,324 8,083 934,099

* Depository institutions include insured branches of foreign banks (IBAs) N/A - Not applicable
FDIC Quarterly 21 2009, Volume 3, No. 3

Quarterly Banking Profile

All asset and liability figures used in calculating performance 

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

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

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

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

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

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

across state lines or change their charters, resulting in an 

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

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

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-than-temporary. To determine whether 

the impairment is other-than-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 

Notes to Users

This publication contains financial data and other information for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding 

the comparability of source data and reporting differences 

over time.

Tables I-A through VIII-A.

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

FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and savings 

institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

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

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

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

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

while other tables aggregate institutions by asset size and 

geographic region. Quarterly and full-year data are provided 

for selected indicators, including aggregate condition and 

income data, performance ratios, condition ratios, and structural changes, as well as past due, noncurrent, and charge-off 

information for loans outstanding and other assets.

Tables I-B through IV-B.

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

comparative quarterly data related to the Deposit Insurance 

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

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by 

the FDIC through the DIF are not included in the FDIC 

Quarterly Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. 

However, in some cases, final financial reports are not available for institutions that have closed or converted their 

charters.

DATA SOURCES

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. 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.
FDIC Quarterly 22 2009, Volume 3, No. 3

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.

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-for-sale 

securities and held-to-maturity debt securities are written down 

to fair value if impairment is other than temporary and loans 

held for sale are reported at the lower of cost or fair value.

FAS 159 allows institutions to report certain financial assets 

and liabilities at fair value with subsequent changes in fair 

value included in earnings. In general, an institution may 

elect the fair value option for an eligible financial asset or liability when it first recognizes the instrument on its balance 

sheet or enters into an eligible firm commitment.

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 

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.

security before recovery of its amortized cost basis, an otherthan-temporary 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.

Extended Net Operating Loss Carryback Period 

for Small Businesses

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.

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 
FDIC Quarterly 23 2009, Volume 3, No. 3

Quarterly Banking Profile

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

DEFINITIONS (in alphabetical order)

All other assets—total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, and other 

assets.

All other liabilities—bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance-sheet 

credit losses, fair market value of derivatives, and other 

liabilities.

Assessment base—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 

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 Interpretation No. 46—The FASB issued Interpretation 

No. 46, Consolidation of Variable Interest Entities, in January 

2003 and revised it in December 2003. Generally, banks with 

variable interests in variable interest entities created after 

December 31, 2003, must consolidate them. The timing of 

consolidation varies with certain situations with application 

as late as 2005. The assets and liabilities of a consolidated 

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

according to the asset and liability categories shown on the 

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

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

variable interest entities.

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.
FDIC Quarterly 24 2009, Volume 3, No. 3

Fair Value—the valuation of various assets and liabilities on 

the balance sheet—including trading assets and liabilities, 

available-for-sale securities, loans held for sale, assets and liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods 

of market stress, the fair values of some financial instruments 

and nonfinancial assets may decline.

FHLB advances—all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers.

Goodwill and other intangibles—intangible assets include servicing rights, purchased credit card relationships, and other 

identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired, less subsequent impairment adjustments. Other 

intangible assets are recorded at fair value, less subsequent 

quarterly amortization and impairment adjustments.

Loans secured by real estate—includes home equity loans, 

junior liens secured by 1–4 family residential properties, and 

all other loans secured by real estate.

Loans to individuals—includes outstanding credit card balances 

and other secured and unsecured consumer loans.

Long-term assets (5+ years)—loans and debt securities with 

remaining maturities or repricing intervals of over five years.

Maximum credit exposure—the maximum contractual credit 

exposure remaining under recourse arrangements and other 

seller-provided credit enhancements provided by the reporting bank to securitizations.

Mortgage-backed securities—certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

private enterprises. Also, see “Securities,” below.

Net charge-offs—total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off.

Net interest margin—the difference between interest and dividends earned on interest-bearing assets and interest paid to 

depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt.

Net loans to total assets—loans and lease financing receivables, net of unearned income, allowance and reserves, as a 

percent of total assets on a consolidated basis.

Net operating income—income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from 

operating income have been adjusted to exclude the portion 

applicable to securities gains (or losses).

Noncurrent assets—the sum of loans, leases, debt securities, 

and other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases—the sum of loans and leases 90 days 

or more past due, and loans and leases in nonaccrual status.

Number of institutions reporting—the number of institutions 

that actually filed a financial report.

Other borrowed funds—federal funds purchased, securities 

sold with agreements to repurchase, demand notes issued to 

the U.S. Treasury, FHLB advances, other borrowed money, 

the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent 

the amounts used to calculate contractual cash flows to be 

exchanged.

Derivatives credit equivalent amount—the fair value of the 

derivative plus an additional amount for potential future 

credit exposure based on the notional amount, the remaining 

maturity and type of the contract.

Derivatives transaction types:

Futures and forward contracts—contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified 

future date, a specific quantity of an underlying variable or 

index at a specified price or yield. These contracts exist for 

a variety of variables or indices, (traditional agricultural or 

physical commodities, as well as currencies and interest 

rates). Futures contracts are standardized and are traded on 

organized exchanges which set limits on counterparty credit 

exposure. Forward contracts do not have standardized terms 

and are traded over the counter.

Option contracts—contracts in which the buyer acquires the 

right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

(strike price) during a period or on a specified future date, 

in return for compensation (such as a fee or premium). The 

seller is obligated to purchase or sell the variable or index at 

the discretion of the buyer of the contract.

Swaps—obligations between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable 

or index by specified reference rates or prices. Except for 

currency swaps, the notional principal is used to calculate 

each payment but is not exchanged.

Derivatives underlying risk exposure—the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk, and operational risk, as well as, 

interest rate risk.

Domestic deposits to total assets—total domestic office deposits 

as a percent of total assets on a consolidated basis.

Earning assets—all loans and other investments that earn 

interest or dividend income.

Efficiency ratio—Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, 

so that a lower value indicates greater efficiency.

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.

Failed/assisted institutions—an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives some insurance funds in order to continue operating.
FDIC Quarterly 25 2009, Volume 3, No. 3

Quarterly Banking Profile

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, 

mortgage indebtedness, obligations under capitalized leases 

and trading liabilities, less revaluation losses on assets held in 

trading accounts.

Other real estate owned—primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that file a Thrift Financial Report (TFR), the 

valuation allowance subtracted also includes allowances for 

other repossessed assets. Also, for TFR filers the components 

of other real estate owned are reported gross of valuation 

allowances.

Percent of institutions with earnings gains—the percent of institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier.

“Problem” institutions—federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on a 

scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

risk and supervisory concern, they are rated either a “4” or 

“5.” 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—net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total assets. The basic yardstick of bank profitability.

Return on equity—net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total equity capital.

Risk-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.
FDIC Quarterly 26 2009, Volume 3, No. 3

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 provides a full guarantee of non-interest-bearing deposit transaction accounts 

above $250,000, at depository institutions that elected to 

participate in the program. The guarantee is in effect until 

December 31, 2009.

Debt Guarantee Program 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.

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.

minimum and maximum total base assessment rates for each 

risk category are as follows:

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

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. 

Risk-weighted assets—assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balancesheet items multiplied by risk-weights that range from zero to 

200 percent. A conversion factor is used to assign a balance 

sheet equivalent amount for selected off-balance-sheet accounts.

Securities—excludes securities held in trading accounts. Banks’ 

securities portfolios consist of securities designated as “heldto-maturity,” which are reported at amortized cost (book 

value), and securities designated as “available-for-sale,” 

reported at fair (market) value.

Securities gains (losses)—realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments 

for income taxes. Thrift Financial Report (TFR) filers also 

include gains (losses) on the sales of assets held for sale.

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