Quarterly Banking Profile Fourth Quarter 2007 

INSURED INSTITUTION PERFORMANCE 

■ Industry Earned $5.8 Billion In Fourth Quarter 

■ Expenses For Bad Loans, Trading Losses Weigh On Earnings 

■ Noncurrent Rate On Mortgage Loans Reaches New High 

■ Pace Of Reserve Building Picks Up 

■ Net Income Totaled $105.5 Billion In 2007 

Quarterly Net Income Declines to a 16-Year Low 

Record-high loan-loss provisions, record losses in trading 

activities and goodwill impairment expenses combined to 

dramatically reduce earnings at a number of FDIC-insured 

institutions in the fourth quarter of 2007. Fourth-quarter 

net income of $5.8 billion was the lowest amount reported 

by the industry since the fourth quarter of 1991, when 

earnings totaled $3.2 billion. It was $29.4 billion (83.5 percent) less than insured institutions earned in the fourth 

quarter of 2006. The average return on assets (ROA) in 

the quarter was 0.18 percent, down from 1.20 percent a 

year earlier. This is the lowest quarterly ROA since the 

fourth quarter of 1990, when it was a negative 0.19 percent. Insured institutions set aside a record $31.3 billion in 

provisions for loan losses in the fourth quarter, more than 

three times the $9.9 billion they set aside in the fourth 

quarter of 2006. Trading losses totaled $10.6 billion, marking the first time that the industry has posted a quarterly 

net trading loss. In the fourth quarter of 2006, the industry 

had trading revenue of $4.0 billion. Expenses for goodwill 

and other intangibles totaled $7.4 billion, compared to 

$1.6 billion a year earlier. Against these negative factors, 

net interest income remained one of the few positive elements in industry performance. Net interest income for 

the fourth quarter totaled $92.0 billion, an 11.8-percent 

($9.7-billion) year-over-year increase. 

Chart 1 

One in Four Large Institutions Lost Money in the 

Fourth Quarter 

Earnings weakness was fairly widespread in the fourth quarter. More than half of all institutions (51.2 percent) 

reported lower net income than in the fourth quarter of 

2006, and 57.1 percent reported lower quarterly ROAs. 

However, the magnitude of the decline in industry earnings was attributable to a relatively small number of large 

institutions. In contrast to the steep 102 basis-point drop 

in the industry’s ROA, the median ROA fell by only 14 

basis points, from 0.93 percent to 0.79 percent. Seven large 

institutions accounted for more than half of the total yearover-year increase in loss provisions. Ten large institutions 

accounted for the entire decline in trading results. Five 

institutions accounted for three-quarters of the increase in 

goodwill and intangibles expenses, and sixteen institutions 

accounted for three-quarters of the year-over-year decline 

in quarterly net income. One out of every four institutions 

with assets greater than $10 billion reported a net loss for 

the fourth quarter. Institutions associated with subprime 

mortgage lending operations and institutions engaged in 

significant trading activity were among those reporting the 

largest earnings declines. 

Chart 2 

0.0 

8.0 

16.0 

24.0 

32.0 

40.0 

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

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 

2003 2004 2005 2006 2007 

29.5 30.2 30.4 31.1 31.8 31.2 32.5 31.1 

34.0 33.2 34.7 

32.6 

36.9 38.0 38.1 

35.2 35.6 36.9 

28.8 

5.8 

Fourth Quarter Earnings Are the Lowest 

Since 1991 

-8.1 

21.4 

-4.1 

19.1 

9.7 

Increase in 

Net Interest 

Income 

Decrease in 

Noninterest 

Income 

Increase in 

Loan Loss 

Provision 

Decrease in 

Gains on 

Securities Sales 

Increase in 

Noninterest 

Expense 

Positive

Factor

Negative

Factors

4th Quarter 2006 to 4th Quarter 2007 ($ Billions) 

Loss Provisions Set a New Quarterly Record 

FDIC QUARTERLY 1 2008, VOLUME 2, NO.1 
 

Margin Erosion Persists 

As interest rates fell during the quarter, average asset yields 

declined more than average funding costs, and net interest 

margins (NIMs) narrowed slightly from third-quarter levels. 

The average NIM in the fourth quarter was 3.30 percent, 

compared to 3.36 percent in the third quarter. Except for the 

fourth quarter of 2006, when the accounting treatment of a 

few large corporate restructurings resulted in a reduction in 

reported net interest income, this is the lowest quarterly NIM 

for the industry since 1989. Almost 60 percent of all institutions had their margins decline from third-quarter levels. 

Margin erosion was especially pronounced at large mortgage 

lenders. 

Full-Year Earnings Fall to Five-Year Low 

For all of 2007, insured institutions earned $105.5 billion, a 

decline of $39.8 billion (27.4 percent) from 2006. This is the 

lowest annual net income for the industry since 2002 and is 

the first time since 1999-2000 that annual net income has 

declined. While much of the decline in industry earnings 

was concentrated among some of the largest institutions, evidence of broader weakness in earnings bespoke an operating 

environment that was less favorable than in previous years. 

Fewer than half of all insured institutions—49.2 percent— 

reported improved earnings in 2007, the first time in at least 

23 years that a majority of insured institutions have not posted full-year earnings increases. The percentage of institutions 

that were unprofitable in 2007—11.6 percent—was the highest since 1991. The average ROA for the year was 0.86 percent, the lowest yearly average since 1991, when it was 0.42 

percent, and the first time in 15 years that the industry’s 

annual ROA has been below 1 percent. More than half of all 

institutions—59.2 percent—reported lower ROAs in 2007 

than in 2006. Sharply higher loss provisions and a very rare 

decline in annual noninterest income were primarily responsible for the lower industry profits. Insured institutions set 

Chart 3 

Margins Remain Near 19-Year Lows 

Net Interest Margin (%) 

5.00 

Assets < $100 Million 

4.50 

4.08 

4.00 

3.50 3.29 

3.00 

Assets > $100 Million 

2.50 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 

2003 2004 2005 2006 2007 

aside $68.2 billion in provisions for loan losses in 2007, more 

than twice the $29.5 billion they set aside in 2006. Loss provisions represented 11.6 percent of net operating revenue 

(net interest income plus total noninterest income), the 

highest proportion for the industry since 1992. Total noninterest income of $233.4 billion was $7.0 billion (2.9 percent) 

less than in 2006, as trading revenue fell from $19.0 billion in 

2006 to only $4.1 billion in 2007, and net gains on loan sales 

fell by $5.1 billion (68.5 percent). This is the first time since 

the mid-1970s that full-year noninterest income has 

declined.1 Noninterest expenses were $30.2 billion (9.1 percent) higher than a year earlier. Net interest income 

increased by $22.7 billion (6.9 percent) in 2007, even though 

the industry’s full-year net interest margin declined to its lowest level since 1988, because interest-earning assets grew by 

9.4 percent during the year. 

Net Charge-Off Rate Rises to Five-Year High 

Net charge-offs registered a sharp increase in the fourth quarter, rising to $16.2 billion, compared to $8.5 billion in the 

fourth quarter of 2006. The annualized net charge-off rate in 

the fourth quarter was 0.83 percent, the highest since the 

fourth quarter of 2002. Net charge-offs were up year-overyear in all major loan categories except loans to the farm sector (agricultural production loans and real estate loans secured 

by farmland). Net charge-offs of loans to commercial and 

industrial (C&I) borrowers were $1.6 billion (104.5 percent) 

higher than in the fourth quarter of 2006. Net charge-offs of 

residential mortgage loans were up by $1.3 billion (144.2 percent), and charge-offs of home equity lines of credit were $1.0 

billion (378.4 percent) higher. Credit card charge-offs were 

up by $1.0 billion (33.0 percent), and charge-offs of other 

loans to individuals increased by $1.1 billion (58.4 percent). 

1 Total noninterest income of FDIC-insured commercial banks declined by 

$1.0 billion (11.7 percent) between 1975 and 1976. Noninterest income data 

for insured savings institutions are not available for those years. 

Chart 4 

-0.2 

0.0 

0.2 

0.4 

0.6 

0.8 

1.0 

1.2 

1.4 

1.6 

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 

Annual ROA % 

-2.0 

0.0 

2.0 

4.0 

6.0 

8.0 

10.0 

12.0 

14.0 

16.0 

Annual ROE % 

ROE 

ROA 

Annual ROA Fell to Its Lowest Level Since 1991 

FDIC QUARTERLY 2 2008, VOLUME 2, NO. 1 
 

 

Quarterly Banking Profile 

Growth in Noncurrent Loans Accelerates 

Despite the heightened level of charge-offs, the rising trend 

in noncurrent loans that began in mid-2006 continued to 

gain momentum in the fourth quarter. Total noncurrent 

loans — loans 90 days or more past due or in nonaccrual status — rose by $26.9 billion (32.5 percent) in the last three 

months of 2007. This is the largest percentage increase in a 

single quarter in the 24 years for which noncurrent loan data 

are available. Eight institutions accounted for half of the 

total increase in noncurrent loans in the fourth quarter, but 

noncurrent loans were up at half of all insured institutions. 

The percentage of loans that were noncurrent at year-end 

was 1.39 percent, the highest level since the third quarter of 

2002. The fourth-quarter increase in noncurrent loans was 

led by noncurrent residential mortgage loans, which grew by 

$11.1 billion (31.7 percent). The percentage of residential 

mortgage loans that were noncurrent rose from 1.57 percent 

to 2.06 percent during the quarter and is now at the highest 

level in the 17 years that noncurrent mortgage data have 

been reported. Noncurrent real estate construction and 

development loans increased by $8.4 billion (73.2 percent), 

noncurrent credit card loans rose by $1.9 billion (26.0 percent), noncurrent home equity loans were up by $1.6 billion 

(43.1 percent), and noncurrent other loans to individuals 

increased by $1.2 billion (26.7 percent). Only the farm loan 

categories registered declines in noncurrent amounts. 

Large Boost to Loss Reserves Fails to Stem Decline in 

Coverage Ratio 

Insured institutions’ loss reserves posted their largest increase 

in 20 years in the fourth quarter, but this growth did not keep 

pace with the growth in noncurrent loans. The industry’s 

$31.3-billion loss provision exceeded the $16.2 billion in net 

charge-offs by a considerable margin, and reserves grew by 

$14.8 billion (17.0 percent). The ratio of reserves to total 

Chart 5 

loans and leases rose from 1.13 percent to 1.29 percent during 

the quarter, its highest level since the first quarter of 2005. 

But the “coverage ratio” of reserves to noncurrent loans fell 

from $1.05 in reserves for every $1.00 of noncurrent loans to 

93 cents at the end of 2007. This is the first time since 1993 

that the industry’s noncurrent loans have exceeded its 

reserves. At year end, one in three institutions had noncurrent loans that exceeded reserves, compared to fewer than 

one in four institutions a year earlier. 

Capital Ratios Exhibit Mixed Results 

Total equity capital increased by $25.1 billion (1.9 percent) 

during the fourth quarter. This increase lagged behind the 

2.6-percent increase in assets during the quarter, and the 

industry’s equity-to-assets ratio declined from 10.44 percent 

to 10.37 percent. Goodwill accounted for almost one-third 

($7.9 billion) of the increase in equity, despite large writedowns of goodwill at several institutions. The industry’s 

leverage capital ratio registered a larger decline during the 

quarter, because leverage capital does not include goodwill. 

The leverage ratio fell from 8.14 percent to 7.98 percent, a 

four-year low. In contrast, the industry’s total risk-based capital ratio, which includes loss reserves, increased from 12.74 

percent to 12.79 percent. At the end of 2007, 99 percent of 

all insured institutions, representing more than 99 percent of 

total industry assets, met or exceeded the highest regulatory 

capital standards. 

Asset Growth Remains Strong in the Fourth Quarter 

Assets continued to grow strongly in the fourth quarter, but 

the focus of growth shifted away from residential mortgage 

loans. Total assets increased by $331.8 billion (2.6 percent) 

during the quarter. Fed funds sold and securities purchased 

under resale agreements increased by $71.5 billion (11.5 percent), assets in trading accounts grew by $64.6 billion (8.0 

Chart 6 

0.00 

0.50 

1.00 

1.50 

2.00 

2.50 

3.00 

3.50 

4.00 

Noncurrent Loan Rate 

Quarterly Net Charge-off Rate 

Percent 

1990 1992 1994 1996 1998 2000 2002 2004 2006 

Asset Quality Continues to Weaken 

1,1791,2271,2601,3361,3741,434 

1,5381,6091,6881,769

1,8711,9592,0342,104

2,1662,188

2,245

2,3042,3482,368 

0 

500 

1,000 

1,500 

2,000 

2,500 

03/03 09/03 03/04 09/04 03/05 09/05 03/06 09/06 03/07 09/07 

Number of insured institutions where construction loans exceed total capital 

A Growing Number of Institutions Have Concentrations 

of Exposure to Construction Lending 

FDIC QUARTERLY 3 2008, VOLUME 2, NO.1 
 

Author: 

Author: 

percent), C&I loans increased by $51.5 billion (3.7 percent), 

and credit card loans grew by $38.0 billion (9.9 percent). The 

industry’s portfolio of mortgage-backed securities rose by 

$36.9 billion (3.1 percent). Real estate loans secured by nonfarm nonresidential properties increased by $29.0 billion (3.1 

percent). Residential mortgage loans rose by only $7.1 billion (0.3 percent), compared to a $30.8-billion increase in 

the third quarter. Real estate construction and development 

loans increased by only $12.5 billion (2.0 percent) during the 

fourth quarter. This is the smallest quarterly increase since 

the fourth quarter of 2003. Despite the slowdown in growth 

of construction lending, the number of institutions with concentrations of exposure to construction lending continued to 

rise. During the fourth quarter, the number of institutions 

whose construction loans exceeded their total capital 

increased from 2,348 to 2,368. 

Domestic Deposits Post Record Growth 

Deposits in domestic offices of insured institutions increased 

by $170.6 billion (2.5 percent), the largest quarterly dollar 

increase ever reported by the industry. Deposits in noninterest-bearing accounts rose by $64.9 billion (5.8 percent), time 

deposits grew by $53.5 billion (2.1 percent), and deposits in 

other interest-bearing accounts increased by $49.1 billion 

(1.6 percent). Brokered deposits increased by $63.3 billion 

(12.4 percent). Nondeposit liabilities rose by $74.0 billion 

(2.3 percent), led by advances from Federal Home Loan 

Banks (up $38.4 billion, or 5.0 percent). Deposits in foreign 

offices grew by $62.2 billion (4.3 percent). The industry’s 

ratio of deposits to total assets, which hit an all-time low of 

64.4 percent at the end of the third quarter, rose slightly to 

64.5 percent at year end. 

Trust Income Rose in 2007 

Both trust assets and income from trust activities registered 

strong growth in 2007. Total assets in trust accounts 

increased by $2.6 trillion (13.4 percent) during the year, with 

assets in managed accounts increasing by $68.6 billion (1.6 

percent) and assets in non-managed accounts rising by $2.5 

trillion (16.9 percent). Assets in custodial and safekeeping 

accounts increased by $9.8 trillion (20.3 percent) in 2007. 

Net income from trust activities totaled $12.8 billion in 

2007, an increase of $2.8 billion (28.6 percent) over 2006. 

Five institutions accounted for 53 percent of the industry’s 

net trust income in 2007. 

Three Failures in 2007 Is Most Since 2004 

The number of FDIC-insured institutions reporting financial 

results declined from 8,559 to 8,533 during the fourth quarter.2 Fifty newly chartered institutions were added during the 

quarter, while 74 institutions were absorbed by mergers. One 

insured commercial bank failed in the fourth quarter. For the 

full year, 181 new insured institutions were chartered, 321 

charters were absorbed in mergers, and three insured institutions failed. In the previous two years, there were no failures 

of FDIC-insured institutions, an interval unprecedented since 

the inception of the FDIC. In 2004, four insured institutions 

failed. Five mutually owned savings institutions, with combined assets of $4.8 billion, converted to stock ownership in 

the fourth quarter. For the entire year, ten insured savings 

institutions with total assets of $10.1 billion converted from 

mutual ownership to stock ownership. At the end of 2007, 

there were 76 FDIC-insured commercial banks and savings 

institutions on the “Problem List,” with combined assets of 

$22.2 billion, up from 65 institutions with $18.5 billion at 

the end of the third quarter. 

2 At the time this issue of the Quarterly Banking Profile went to press, one 

insured commercial bank with assets of $1.2 billion had not yet submitted a 

year-end 2007 Call Report. 

Author: Ross Waldrop, Sr. Banking Analyst 

Division of Insurance and Research, FDIC 

(202) 898-3951 

Chart 7 Chart 8

140 

160 

180 

Commercial Loans 

Consumer Loans 

Quarterly Change ($ Billions) 

Commercial Lending Is Leading Overall 

Loan Growth 

600 

700 

Mergers 

Number of Institutions 

Chartering and Merger Activity Slowed in 2007 

120 500 

100 400 

20 

40 

60 

80 

100 

200 

300 

New Charters 

Failures 

0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 

2004 2005 2006 2007 4 

0 

1992 1994 1996 1998 2000 2002 2004 2006 

FDIC QUARTERLY 4 2008, VOLUME 2, NO. 1 
 

 

Quarterly Banking Profile 

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2007 2006 2005 2004 2003 2002 2001 

Return on assets (%) .................................................. 0.86 1.28 1.28 1.28 1.38 1.30 1.14 

Return on equity (%) ................................................... 8.17 . 12.30 12.43 13.20 15.05 14.08 13.02 

Core capital (leverage) ratio (%) ................................. 7.98 . 8.22 8.25 8.11 7.88 7.86 7.79 

Noncurrent assets plus 

other real estate owned to assets (%) ..................... 0.94 0.54 0.50 0.53 0.75 0.90 0.87 

Net charge-offs to loans (%) ....................................... 0.59 0.39 0.49 0.56 0.78 0.97 0.83 

Asset growth rate (%) ................................................. 9.94 9.03 7.64 11.36 7.58 7.20 5.44 

Net interest margin (%) ............................................... 3.29 . 3.31 3.47 3.52 3.73 3.96 3.78 

Net operating income growth (%) ............................... -23.72 8.50 11.39 4.02 16.39 17.58 -0.48 

Number of institutions reporting .................................. 8,533 . 8,680 8,833 8,976 9,181 9,354 9,614 

Commercial banks ................................................... 7,282 7,401 7,526 7,631 7,770 7,888 8,080 

Savings institutions .................................................. 1,251 1,279 1,307 1,345 1,411 1,466 1,534 

Percentage of unprofitable institutions (%) ................. 11.56 7.93 6.22 5.97 5.99 6.67 8.24 

Number of problem institutions ................................... 76 50 52 80 116 136 114 

Assets of problem institutions (in billions) ................... $22 $8 $7 $28 $30 $39 $40 

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

* Excludes insured branches of foreign banks (IBAs) 

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

(dollar figures in millions) 

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

4th Quarter 

2007 

3rd Quarter 

2007 

4th Quarter 

2006 

%Change 

06:4-07:4 

8,533 8,559 8,680 -1.7 

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

CONDITION DATA 

2,214,621 2,220,559 2,206,656 0.4 

Total assets ......................................................................................................... $13,038,765 $12,706,982 $11,860,042 9.9 

Loans secured by real estate ........................................................................... 4,780,631 4,701,042 4,507,714 6.1 

1-4 Family residential mortgages .................................................................. 2,245,323 2,238,248 2,175,790 3.2 

Nonfarm nonresidential ................................................................................. 968,401 939,426 904,368 7.1 

Construction and development ...................................................................... 628,918 616,447 565,282 11.3 

Home equity lines .......................................................................................... 607,396 591,363 559,307 8.6 

Commercial & industrial loans .......................................................................... 1,440,314 1,388,804 1,214,754 18.6 

Loans to individuals .......................................................................................... 1,059,143 1,013,345 955,263 10.9 

Credit cards ................................................................................................... 422,481 384,506 384,980 9.7 

Farm loans ....................................................................................................... 56,783 56,166 54,257 4.7 

Other loans & leases ........................................................................................ 571,798 546,314 503,608 13.5 

Less: Unearned income ................................................................................... 2,313 2,237 2,401 -3.7 

Total loans & leases ......................................................................................... 7,906,357 7,703,433 7,233,196 9.3 

Less: Reserve for losses .................................................................................. 101,715 86,948 77,533 31.2 

Net loans and leases ........................................................................................ 7,804,643 7,616,485 7,155,663 9.1 

Securities .......................................................................................................... 1,954,086 1,989,074 1,980,497 -1.3 

Other real estate owned ................................................................................... 12,138 9,806 6,057 100.4 

Goodwill and other intangibles ......................................................................... 465,680 461,065 413,434 12.6 

All other assets ................................................................................................. 2,802,218 2,630,552 2,304,391 21.6 

Total liabilities and capital ................................................................................... 13,038,765 12,706,982 11,860,042 9.9 

Deposits ........................................................................................................... 8,414,356 8,181,581 7,825,219 7.5 

Domestic office deposits ............................................................................... 6,911,780 6,741,172 6,631,184 4.2 

Foreign office deposits .................................................................................. 1,502,575 1,440,409 1,194,036 25.8 

Other borrowed funds ....................................................................................... 2,517,336 2,454,143 2,121,086 18.7 

Subordinated debt ............................................................................................ 185,409 177,474 160,547 15.5 

All other liabilities .............................................................................................. 569,405 566,582 505,335 12.7 

Equity capital .................................................................................................... 1,352,259 1,327,202 1,247,855 8.4 

Loans and leases 30-89 days past due ............................................................... 110,937 92,233 71,507 55.1 

Noncurrent loans and leases ............................................................................... 109,914 82,974 57,387 91.5 

Restructured loans and leases ............................................................................ 6,991 4,130 2,608 168.1 

Direct and indirect investments in real estate ...................................................... 1,104 1,098 1,091 1.2 

Mortgage-backed securities ................................................................................ 1,236,031 1,199,169 1,206,913 2.4 

Earning assets ..................................................................................................... 11,306,104 11,031,937 10,336,488 9.4 

FHLB advances ................................................................................................... 808,781 770,363 620,914 30.3 

Unused loan commitments .................................................................................. 8,359,380 8,302,064 7,572,935 10.4 

Trust assets ......................................................................................................... 21,865,518 21,501,132 19,277,633 13.4 

Assets securitized and sold** .............................................................................. 1,773,817 1,741,732 1,310,475 35.4 

Notional amount of derivatives** ......................................................................... 164,780,773 173,284,358 132,182,732 24.7 

INCOME DATA 

4th Quarter 

2006 

%Change 

06:4-07:4 

Full Year 

2007 

Full Year 

2006 %Change 

4th Quarter 

2007 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

$725,156 $643,459 12.7 $189,149 $171,499 10.3 

372,311 313,353 18.8 97,117 89,180 8.9 

352,845 330,106 6.9 92,032 82,319 11.8 

68,164 29,545 130.7 31,253 9,852 217.2 

233,419 240,430 -2.9 47,831 55,917 -14.5 

362,540 332,307 9.1 100,128 81,044 23.6 

-1,331 1,969 N/M -3,633 513 N/M 

47,019 68,081 -30.9 -731 14,709 N/M 

-1,740 2,669 N/M 237 2,094 -88.7 

105,470 145,242 -27.4 5,816 35,238 -83.5 

43,903 27,016 62.5 16,155 8,509 89.9 

110,160 93,445 17.9 20,550 34,104 -39.7 

-4,690 51,797 N/M -14,734 1,134 N/M

107,852 141,388 -23.7 7,762 32,879 -76.4 

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

FDIC QUARTERLY 5 2008, VOLUME 2, NO.1 
TABLE III-A. Full Year 2007, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,533 27 5 1,591 4,773 786 108 374 813 56 

Commercial banks .............................................. 7,282 23 5 1,586 4,279 183 83 332 749 42 

Savings institutions ............................................. 1,251 4 0 5 494 603 25 42 64 14 

Total assets (in billions) ......................................... $13,038.8 $479.3 $2,784.3 $157.5 $4,619.1 $1,333.6 $94.3 $37.9 $110.1 $3,422.5 

Commercial banks .............................................. 11,176.1 437.9 2,784.3 157.1 4,158.8 211.9 41.2 29.5 95.1 3,260.3 

Savings institutions ............................................. 1,862.7 41.4 0.0 0.4 460.3 1,121.7 53.2 8.4 15.0 162.3 

Total deposits (in billions) ...................................... 8,414.4 153.6 1,706.1 128.2 3,268.7 738.3 71.3 26.7 90.1 2,231.4 

Commercial banks .............................................. 7,308.9 143.2 1,706.1 127.8 2,966.0 79.2 27.4 21.1 78.2 2,159.9 

Savings institutions ............................................. 1,105.5 10.4 0.0 0.3 302.8 659.1 43.8 5.6 11.8 71.5 

Net income (in millions) .......................................... 105,470 15,390 14,893 1,808 38,261 3,931 1,179 959 1,111 27,938 

Commercial banks .............................................. 99,511 13,799 14,893 1,804 36,979 1,814 786 627 1,019 27,789 

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

Performance Ratios (%) 

5,959 1,591 0 4 1,282 2,117 393 332 92 149 

Yield on earning assets .......................................... 6.76 13.18 6.23 7.15 6.88 6.57 7.61 5.49 6.56 6.23 

Cost of funding earning assets .............................. 3.47 4.63 3.64 3.18 3.29 3.93 3.34 2.45 2.86 3.30 

Net interest margin .............................................. 3.29 8.56 2.59 3.97 3.59 2.63 4.26 3.04 3.70 2.94 

Noninterest income to assets ................................. 1.90 10.50 1.97 0.68 1.26 0.93 2.54 11.07 1.03 1.88 

Noninterest expense to assets ............................... 2.94 8.34 2.83 2.69 2.77 2.23 3.53 9.84 3.05 2.74 

Loan and lease loss provision to assets ................ 0.55 3.72 0.59 0.17 0.38 0.59 1.04 0.09 0.13 0.34 

Net operating income to assets ............................. 0.88 3.34 0.57 1.21 0.91 0.33 1.24 2.58 1.02 0.91 

Pretax return on assets .......................................... 1.24 5.39 0.75 1.45 1.26 0.47 1.99 3.88 1.27 1.27 

Return on assets .................................................... 0.86 3.46 0.58 1.21 0.86 0.30 1.27 2.60 1.04 0.89 

Return on equity ..................................................... 8.17 15.12 7.44 10.88 7.94 3.14 11.69 13.11 9.11 8.34 

Net charge-offs to loans and leases ...................... 0.59 3.95 0.76 0.22 0.35 0.40 0.87 0.29 0.21 0.39 

Loan and lease loss provision to net charge-offs ... 155.26 126.17 176.05 113.69 154.02 209.60 143.98 122.56 113.56 160.85 

Efficiency ratio ........................................................ 59.37 44.54 66.95 61.94 59.45 61.10 52.61 70.95 68.46 60.50 

% of unprofitable institutions .................................. 11.56 7.41 0.00 3.08 14.33 14.25 10.19 24.60 4.06 5.36 

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

Condition Ratios (%) 

49.19 55.56 40.00 61.28 47.18 32.70 49.07 44.92 55.23 46.43 

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

Loss allowance to: 

86.71 80.98 83.66 91.04 88.45 92.03 91.27 88.15 91.62 85.08 

Loans and leases ................................................ 1.29 4.15 1.46 1.27 1.23 0.86 1.22 1.33 1.18 0.92 

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

Noncurrent assets plus 

92.54 207.47 103.22 121.50 93.62 45.74 61.51 172.87 123.83 80.15 

other real estate owned to assets ....................... 0.94 1.54 0.67 0.83 1.06 1.52 1.65 0.23 0.66 0.68 

Equity capital ratio .................................................. 10.37 21.26 8.01 11.17 11.03 8.61 12.63 20.04 11.46 10.32 

Core capital (leverage) ratio ................................... 7.98 14.57 6.38 10.32 8.48 7.89 9.87 18.59 11.05 7.43 

Tier 1 risk-based capital ratio ................................. 10.12 13.26 8.59 13.70 9.74 12.94 11.33 41.05 18.13 9.86 

Total risk-based capital ratio .................................. 12.79 15.88 12.50 14.75 11.83 14.94 13.12 42.07 19.24 12.78 

Net loans and leases to deposits ........................... 92.75 229.92 71.46 80.85 98.54 126.71 105.89 33.55 68.80 81.82 

Net loans to total assets ......................................... 59.86 73.70 43.79 65.78 69.73 70.15 79.99 23.65 56.27 53.35 

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

Structural Changes 

53.01 29.57 26.68 81.37 68.18 55.29 74.58 68.15 81.79 53.36 

New Charters ...................................................... 181 1 0 5 49 5 0 120 1 0 

Institutions absorbed by mergers ........................ 321 1 0 24 254 12 2 2 7 19 

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

PRIOR FULL YEARS 

(The way it was...) 

3 0 0 0 0 2 0 0 0 1 

Number of institutions .................................. 2006 8,680 26 4 1,634 4,713 817 123 411 895 57

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

 ............................. 2002 9,354 40 5 1,823 4,070 1,107 196 488 1,525 100 

Total assets (in billions) ............................... 2006 $11,860.0 $408.4 $2,337.2 $149.2 $4,904.7 $1,445.0 $109.9 $42.2 $119.6 $2,343.9

 ............................. 2004 10,105.9 383.0 1,881.3 138.7 3,301.4 1,503.6 104.1 52.0 143.3 2,598.4

 ............................. 2002 8,435.7 299.3 1,273.1 123.8 2,960.6 1,342.0 166.5 60.2 197.4 2,013.0 

Return on assets (%) ................................... 2006 1.28 4.19 1.01 1.23 1.28 0.94 1.75 1.54 1.04 1.26

 ............................. 2004 1.28 4.03 0.76 1.22 1.29 1.18 1.66 1.68 1.10 1.32

 ............................. 2002 1.30 3.60 0.74 1.24 1.30 1.31 1.35 1.08 1.14 1.32 

Net charge-offs to loans & leases (%) ......... 2006 0.39 3.48 0.48 0.17 0.22 0.15 1.40 0.42 0.20 0.22

 ............................. 2004 0.56 4.66 0.91 0.22 0.30 0.12 1.57 0.59 0.29 0.25

 ............................. 2002 

Noncurrent assets plus 

0.97 6.12 1.77 0.29 0.65 0.20 1.07 1.36 0.35 0.81 

OREO to assets (%) ................................. 2006 0.54 1.37 0.40 0.67 0.55 0.56 0.85 0.20 0.56 0.45

 ............................. 2004 0.53 1.50 0.57 0.68 0.51 0.43 0.53 0.31 0.59 0.45

 ............................. 2002 0.90 1.68 1.19 0.85 0.87 0.71 1.28 0.59 0.70 0.75 

Equity capital ratio (%) ................................. 2006 10.52 22.88 7.75 10.73 11.16 9.91 14.16 21.12 10.98 9.78

 ............................. 2004 10.28 20.54 8.05 10.78 10.10 10.55 11.36 17.47 10.79 10.23

 ............................. 2002 9.20 15.48 7.14 10.76 9.36 9.07 7.35 17.18 10.62 9.10 

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

FDIC QUARTERLY 6 2008, VOLUME 2, NO. 1 
 

Quarterly Banking Profile 

TABLE III-A. Full Year 2007, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,533 3,440 4,425 549 119 1,042 1,220 1,763 1,987 1,743 778 

Commercial banks ............................................... 7,282 3,065 3,706 425 86 548 1,075 1,455 1,880 1,618 706 

Savings institutions .............................................. 1,251 375 719 124 33 494 145 308 107 125 72 

Total assets (in billions) .......................................... $13,038.8 $181.9 $1,310.1 $1,420.3 $10,126.5 $2,439.7 $3,329.1 $2,842.7 $977.9 $738.7 $2,710.7 

Commercial banks ............................................... 11,176.1 162.9 1,062.1 1,112.7 8,838.4 1,759.6 3,060.6 2,685.7 935.2 621.2 2,113.9 

Savings institutions .............................................. 1,862.7 19.0 247.9 307.5 1,288.2 680.1 268.6 157.0 42.7 117.5 596.9 

Total deposits (in billions) ....................................... 8,414.4 148.1 1,039.9 1,008.1 6,218.3 1,512.9 2,184.0 1,828.3 691.1 547.1 1,650.9 

Commercial banks ............................................... 7,308.9 133.8 854.8 792.0 5,528.4 1,066.5 2,023.6 1,717.8 661.1 476.6 1,363.2 

Savings institutions .............................................. 1,105.5 14.3 185.1 216.1 690.0 446.4 160.4 110.5 30.0 70.5 287.7 

Net income (in millions) .......................................... 105,470 1,322 12,440 13,473 78,235 18,068 26,050 23,630 13,304 7,192 17,226 

Commercial banks ............................................... 99,511 1,282 10,804 11,519 75,905 17,126 27,097 23,028 13,116 6,331 12,813 

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

Performance Ratios (%) 

5,959 39 1,636 1,954 2,330 942 -1,047 602 187 861 4,413 

Yield on earning assets .......................................... 6.76 6.96 7.14 7.07 6.65 6.81 6.56 6.08 7.61 7.15 7.25 

Cost of funding earning assets ............................... 3.47 2.91 3.29 3.37 3.52 3.45 3.47 3.35 3.26 3.28 3.73 

Net interest margin .............................................. 3.29 4.05 3.86 3.70 3.13 3.36 3.08 2.73 4.34 3.86 3.52 

Noninterest income to assets ................................. 1.90 1.22 1.13 1.43 2.08 2.18 1.53 2.05 3.36 1.37 1.56 

Noninterest expense to assets ............................... 2.94 3.77 3.13 2.83 2.92 3.14 2.57 2.77 4.21 3.19 2.89 

Loan and lease loss provision to assets ................. 0.55 0.21 0.25 0.42 0.62 0.67 0.37 0.39 0.85 0.32 0.80 

Net operating income to assets .............................. 0.88 0.74 0.98 1.05 0.84 0.83 0.88 0.87 1.44 1.01 0.68 

Pretax return on assets .......................................... 1.24 0.97 1.31 1.48 1.20 1.22 1.20 1.27 2.09 1.36 0.93 

Return on assets .................................................... 0.86 0.75 0.99 0.99 0.82 0.79 0.84 0.87 1.46 1.02 0.66 

Return on equity ..................................................... 8.17 5.39 9.44 8.79 7.98 6.45 8.10 9.66 14.29 10.00 6.17 

Net charge-offs to loans and leases ....................... 0.59 0.23 0.24 0.41 0.68 0.90 0.33 0.46 0.78 0.29 0.76 

Loan and lease loss provision to net charge-offs ... 155.26 145.31 149.06 149.28 156.29 130.05 184.23 154.10 154.18 165.05 164.10 

Efficiency ratio ........................................................ 59.37 76.03 66.10 57.57 58.43 56.25 59.87 61.13 57.70 64.13 59.60 

% of unprofitable institutions .................................. 11.56 18.11 7.12 6.19 11.76 16.03 17.54 10.72 6.14 8.20 19.41 

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

Condition Ratios (%) 

49.19 50.00 49.58 45.17 29.41 37.33 39.02 47.14 55.41 58.92 47.94 

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

Loss Allowance to: 

86.71 91.70 91.80 90.51 85.43 86.67 86.09 86.00 86.55 89.91 87.45 

Loans and leases ................................................ 1.29 1.28 1.17 1.29 1.30 1.52 1.06 1.29 1.39 1.16 1.36 

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

Noncurrent assets plus 

92.54 107.04 95.86 96.09 91.30 121.32 91.96 83.62 81.59 95.20 86.53 

other real estate owned to assets ....................... 0.94 0.95 1.06 1.06 0.90 0.76 0.81 0.95 1.37 0.97 1.09 

Equity capital ratio .................................................. 10.37 13.74 10.52 11.37 10.15 12.07 10.32 9.24 9.75 10.23 10.35 

Core capital (leverage) ratio ................................... 7.98 13.53 9.97 9.44 7.41 8.68 7.07 7.17 8.09 8.88 9.02 

Tier 1 risk-based capital ratio ................................. 10.12 19.67 13.21 11.95 9.32 11.86 8.93 8.79 9.46 11.14 11.59 

Total risk-based capital ratio .................................. 12.79 20.70 14.30 13.26 12.40 13.92 11.64 11.72 12.18 12.80 14.66 

Net loans and leases to deposits ........................... 92.75 76.66 87.98 96.38 93.35 90.83 93.25 84.19 97.15 89.09 102.72 

Net loans to total assets ......................................... 59.86 62.40 69.83 68.41 57.32 56.32 61.18 54.14 68.66 65.99 62.56 

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

Structural Changes 

53.01 81.39 79.26 70.31 46.68 52.94 58.30 50.45 63.54 73.19 39.97 

New Charters ...................................................... 181 174 5 2 0 22 53 16 12 33 45 

Institutions absorbed by mergers ........................ 321 114 167 31 9 74 45 77 48 46 31 

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

PRIOR FULL YEARS 

(The way it was...) 

3 2 0 1 0 1 1 1 0 0 0 

Number of institutions ................................... 2006 8,680 3,632 4,399 530 119 1,092 1,218 1,826 2,018 1,753 773

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

 ............................. 2002 9,354 4,680 4,118 450 106 1,212 1,237 2,055 2,167 1,901 782 

Total assets (in billions) ................................ 2006 $11,860.0 $189.9 $1,290.0 $1,397.5 $8,982.6 $2,214.3 $2,911.4 $2,746.2 $859.8 $652.3 $2,476.1

 ............................. 2004 10,105.9 211.7 1,199.6 1,317.0 7,377.6 2,855.0 2,177.1 2,387.6 768.2 603.1 1,315.1

 ............................. 2002 8,435.7 237.8 1,124.9 1,279.1 5,793.9 2,892.6 1,711.2 1,572.0 440.1 581.5 1,238.3 

Return on assets (%) .................................... 2006 1.28 0.92 1.16 1.22 1.31 1.27 1.31 1.10 1.76 1.23 1.29

 ............................. 2004 1.28 1.00 1.19 1.45 1.27 1.37 1.34 0.88 1.55 1.26 1.60

 ............................. 2002 1.30 0.99 1.16 1.44 1.31 1.11 1.32 1.28 1.58 1.41 1.58 

Net charge-offs to loans & leases (%) .......... 2006 0.39 0.18 0.16 0.20 0.47 0.72 0.19 0.28 0.55 0.21 0.43

 ............................. 2004 0.56 0.28 0.27 0.39 0.65 0.88 0.31 0.41 0.74 0.27 0.60

 ............................. 2002 

Noncurrent assets plus 

0.97 0.32 0.41 0.69 1.18 1.45 0.71 0.77 1.19 0.44 0.81 

OREO to assets (%) .................................. 2006 0.54 0.73 0.59 0.52 0.53 0.51 0.33 0.57 1.05 0.62 0.56

 ............................. 2004 0.53 0.74 0.56 0.51 0.53 0.58 0.35 0.55 0.81 0.61 0.51

 ............................. 2002 0.90 0.85 0.74 0.69 0.98 1.01 0.78 1.00 0.82 0.81 0.74 

Equity capital ratio (%) .................................. 2006 10.52 13.01 10.39 10.97 10.42 12.48 10.05 9.07 10.64 10.42 10.92

 ............................. 2004 10.28 11.82 10.19 10.89 10.15 11.21 8.74 9.36 10.62 10.78 12.10

 ............................. 2002 9.20 11.28 10.06 10.06 8.76 8.85 9.38 8.57 10.34 9.60 9.98 

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

FDIC QUARTERLY 7 2008, VOLUME 2, NO.1 
TABLE IV-A. Fourth Quarter 2007, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,533 27 5 1,591 4,773 786 108 374 813 56 

Commercial banks .............................................. 7,282 23 5 1,586 4,279 183 83 332 749 42 

Savings institutions ............................................. 1,251 4 0 5 494 603 25 42 64 14 

Total assets (in billions) ......................................... $13,038.8 $479.3 $2,784.3 $157.5 $4,619.1 $1,333.6 $94.3 $37.9 $110.1 $3,422.5 

Commercial banks .............................................. 11,176.1 437.9 2,784.3 157.1 4,158.8 211.9 41.2 29.5 95.1 3,260.3 

Savings institutions ............................................. 1,862.7 41.4 0.0 0.4 460.3 1,121.7 53.2 8.4 15.0 162.3 

Total deposits (in billions) ...................................... 8,414.4 153.6 1,706.1 128.2 3,268.7 738.3 71.3 26.7 90.1 2,231.4 

Commercial banks .............................................. 7,308.9 143.2 1,706.1 127.8 2,966.0 79.2 27.4 21.1 78.2 2,159.9 

Savings institutions ............................................. 1,105.5 10.4 0.0 0.3 302.8 659.1 43.8 5.6 11.8 71.5 

Net income (in millions) .......................................... 5,816 3,027 -1,383 424 3,948 -3,230 156 214 258 2,402 

Commercial banks .............................................. 10,540 2,797 -1,383 423 5,097 448 153 117 237 2,651 

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

Performance Ratios (annualized, %) 

-4,724 230 0 1 -1,148 -3,678 3 97 21 -249 

Yield on earning assets .......................................... 6.78 13.36 6.20 7.15 6.93 6.38 7.84 5.60 6.61 6.32 

Cost of funding earning assets .............................. 3.48 4.40 3.57 3.17 3.35 3.86 3.41 2.50 2.87 3.36 

Net interest margin .............................................. 3.30 8.97 2.63 3.99 3.58 2.52 4.43 3.10 3.73 2.96 

Noninterest income to assets ................................. 1.49 10.43 1.01 0.71 1.05 0.78 2.57 11.20 1.07 1.43 

Noninterest expense to assets ............................... 3.11 8.32 2.83 2.83 2.97 2.72 3.77 10.26 3.18 2.90 

Loan and lease loss provision to assets ................ 0.97 5.37 0.98 0.20 0.72 1.13 1.71 0.09 0.20 0.68 

Net operating income to assets ............................. 0.24 2.49 -0.19 1.09 0.36 -0.58 0.65 2.28 0.92 0.35 

Pretax return on assets .......................................... 0.16 4.10 -0.63 1.32 0.49 -1.34 1.14 3.61 1.14 0.26 

Return on assets .................................................... 0.18 2.61 -0.20 1.10 0.35 -0.94 0.66 2.30 0.95 0.29 

Return on equity ..................................................... 1.74 11.96 -2.55 9.73 3.14 -10.51 5.29 11.46 8.24 2.78 

Net charge-offs to loans and leases ...................... 0.83 4.23 1.05 0.31 0.60 0.66 1.03 0.26 0.33 0.55 

Loan and lease loss provision to net charge-offs ... 193.46 167.80 209.30 95.69 170.12 240.30 201.17 136.68 104.18 231.63 

Efficiency ratio ........................................................ 66.27 42.33 86.38 64.66 63.50 68.46 54.48 73.26 70.43 71.27 

% of unprofitable institutions .................................. 17.68 11.11 40.00 10.75 20.18 20.87 20.37 28.07 8.86 12.50 

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

Structural Changes 

47.56 48.15 0.00 58.39 43.08 47.20 51.85 46.26 53.38 46.43 

New Charters ...................................................... 50 0 0 1 17 1 0 31 0 0 

Institutions absorbed by mergers ........................ 74 0 0 2 63 4 0 0 4 1 

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

PRIOR FOURTH QUARTERS 

(The way it was...) 

1 0 0 0 0 1 0 0 0 0 

Return on assets (%) ................................... 2006 1.20 3.43 0.96 1.06 1.20 0.91 1.54 2.17 1.00 1.21

 ................................ 2004 1.25 3.72 0.77 1.04 1.25 1.22 1.50 1.74 0.99 1.25

 ................................ 2002 1.20 3.74 0.43 1.02 1.28 1.36 1.41 -0.80 1.02 1.17 

Net charge-offs to loans & leases (%) ......... 2006 0.47 3.88 0.36 0.30 0.35 0.19 1.62 0.32 0.28 0.29

 ................................ 2004 0.60 4.64 1.10 0.31 0.35 0.15 1.44 0.54 0.36 0.24

 ................................ 2002 0.98 5.36 1.73 0.45 0.65 0.29 1.15 2.33 0.49 0.90 

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations. 

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

activity with no identified asset concentrations. 

FDIC QUARTERLY 8 2008, VOLUME 2, NO. 1 
 

Quarterly Banking Profile 

TABLE IV-A. Fourth Quarter 2007, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,533 3,440 4,425 549 119 1,042 1,220 1,763 1,987 1,743 778 

Commercial banks ............................................... 7,282 3,065 3,706 425 86 548 1,075 1,455 1,880 1,618 706 

Savings institutions .............................................. 1,251 375 719 124 33 494 145 308 107 125 72 

Total assets (in billions) .......................................... $13,038.8 $181.9 $1,310.1 $1,420.3 $10,126.5 $2,439.7 $3,329.1 $2,842.7 $977.9 $738.7 $2,710.7 

Commercial banks ............................................... 11,176.1 162.9 1,062.1 1,112.7 8,838.4 1,759.6 3,060.6 2,685.7 935.2 621.2 2,113.9 

Savings institutions .............................................. 1,862.7 19.0 247.9 307.5 1,288.2 680.1 268.6 157.0 42.7 117.5 596.9 

Total deposits (in billions) ....................................... 8,414.4 148.1 1,039.9 1,008.1 6,218.3 1,512.9 2,184.0 1,828.3 691.1 547.1 1,650.9 

Commercial banks ............................................... 7,308.9 133.8 854.8 792.0 5,528.4 1,066.5 2,023.6 1,717.8 661.1 476.6 1,363.2 

Savings institutions .............................................. 1,105.5 14.3 185.1 216.1 690.0 446.4 160.4 110.5 30.0 70.5 287.7 

Net income (in millions) .......................................... 5,816 221 2,489 2,484 622 1,709 1,249 4,322 2,385 1,110 -4,960 

Commercial banks ............................................... 10,540 221 2,150 2,163 6,006 2,993 2,959 4,304 2,366 1,054 -3,136 

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

Performance Ratios (annualized, %) 

-4,724 0 339 321 -5,385 -1,284 -1,709 18 19 57 -1,824 

Yield on earning assets .......................................... 6.78 7.07 7.12 7.08 6.68 6.86 6.66 6.20 7.65 7.09 7.05 

Cost of funding earning assets ............................... 3.48 2.99 3.30 3.39 3.53 3.44 3.57 3.40 3.22 3.25 3.64 

Net interest margin .............................................. 3.30 4.08 3.82 3.69 3.15 3.42 3.08 2.80 4.43 3.83 3.42 

Noninterest income to assets ................................. 1.49 1.28 1.11 1.00 1.61 2.18 1.00 2.08 3.21 1.30 0.31 

Noninterest expense to assets ............................... 3.11 4.12 3.23 2.63 3.15 3.44 2.65 2.94 4.29 3.39 3.08 

Loan and lease loss provision to assets ................. 0.97 0.29 0.41 0.75 1.09 0.97 0.76 0.70 1.52 0.58 1.41 

Net operating income to assets .............................. 0.24 0.46 0.76 0.69 0.11 0.39 0.28 0.61 0.97 0.60 -0.67 

Pretax return on assets .......................................... 0.16 0.66 0.99 0.98 -0.07 0.58 0.04 0.86 1.26 0.79 -1.35 

Return on assets .................................................... 0.18 0.49 0.77 0.71 0.02 0.28 0.15 0.62 1.00 0.61 -0.73 

Return on equity ..................................................... 1.74 3.55 7.30 6.23 0.24 2.32 1.50 6.77 10.05 5.93 -6.95 

Net charge-offs to loans and leases ....................... 0.83 0.36 0.42 0.60 0.94 1.00 0.56 0.74 1.10 0.46 1.09 

Loan and lease loss provision to net charge-offs ... 193.46 126.15 138.87 179.53 199.30 171.70 222.53 172.84 196.92 189.26 203.52 

Efficiency ratio ........................................................ 66.27 81.69 67.93 57.38 66.98 56.21 70.15 63.36 59.62 67.45 83.58 

% of unprofitable institutions .................................. 17.68 24.65 12.86 11.29 25.21 20.54 25.16 16.39 13.89 13.20 24.81 

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

Structural Changes 

47.56 48.02 48.47 42.08 25.21 45.30 36.48 47.19 53.40 54.79 37.66 

New Charters ...................................................... 50 50 0 0 0 8 13 4 5 9 11 

Institutions absorbed by mergers ........................ 74 30 39 5 0 12 5 33 12 6 6 

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

PRIOR FOURTH QUARTERS 

(The way it was...) 

1 1 0 0 0 0 0 1 0 0 0 

Return on assets (%) .................................... 2006 1.20 0.68 1.08 1.10 1.24 1.26 1.21 1.19 1.82 1.10 0.94

 ................................ 2004 1.25 0.89 1.14 1.36 1.25 1.37 1.19 0.85 1.66 1.18 1.59

 ................................ 2002 1.20 0.84 0.99 1.47 1.20 0.94 1.21 1.14 1.57 1.36 1.66 

Net charge-offs to loans & leases (%) .......... 2006 0.47 0.31 0.26 0.26 0.55 0.94 0.26 0.38 0.70 0.25 0.40

 ................................ 2004 0.60 0.39 0.34 0.45 0.69 0.88 0.33 0.59 0.70 0.34 0.59

 ................................ 2002 0.98 0.47 0.53 0.66 1.17 1.36 0.81 0.79 1.18 0.55 0.86 

* Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC QUARTERLY 9 2008, VOLUME 2, NO.1 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

December 31, 2007 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ....................................... 1.58 2.87 2.71 1.32 1.30 1.85 2.55 1.25 1.73 1.41 

Construction and development ...................................... 1.83 0.00 2.01 2.47 1.84 3.37 1.43 0.96 1.47 1.28 

Nonfarm nonresidential ................................................. 0.78 0.00 0.60 1.04 0.75 0.64 1.59 0.98 1.27 0.85 

Multifamily residential real estate .................................. 0.56 0.00 0.37 0.86 0.77 0.21 1.34 1.63 0.85 0.31 

Home equity loans ......................................................... 1.14 2.98 1.05 0.70 0.84 1.75 0.82 1.33 1.13 1.16 

Other 1-4 family residential ........................................... 2.11 2.02 3.87 1.94 1.74 1.97 3.59 1.39 2.11 1.76 

Commercial and industrial loans ...................................... 0.73 2.80 0.41 1.45 0.81 1.01 1.05 1.25 1.55 0.54 

Loans to individuals .......................................................... 2.07 2.33 2.15 2.27 1.75 1.52 1.92 1.76 2.63 2.07 

Credit card loans ........................................................... 2.32 2.30 2.57 1.39 2.33 2.32 1.21 1.96 1.25 2.26 

Other loans to individuals .............................................. 1.90 2.57 1.95 2.33 1.68 0.98 2.16 1.74 2.68 2.03 

All other loans and leases (including farm) ...................... 0.47 0.15 0.40 0.81 0.77 0.50 0.14 0.75 0.66 0.26 

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

Percent of Loans Noncurrent** 

1.40 2.28 1.62 1.27 1.20 1.81 2.15 1.31 1.74 1.19 

All real estate loans .......................................................... 1.71 1.81 1.95 1.20 1.62 1.94 3.17 0.82 0.99 1.60 

Construction and development ...................................... 3.15 0.00 1.91 4.12 3.05 6.08 3.35 2.28 2.16 3.00 

Nonfarm nonresidential ................................................. 0.81 0.00 0.56 1.26 0.85 0.64 2.60 0.70 1.23 0.58 

Multifamily residential real estate .................................. 0.76 0.00 0.39 1.08 0.97 0.43 6.79 3.15 0.77 0.47 

Home equity loans ......................................................... 0.86 1.98 0.75 0.49 0.61 1.47 0.13 0.14 0.57 0.87 

Other 1-4 family residential ........................................... 2.06 0.31 2.69 0.99 1.81 2.02 4.64 0.64 0.84 2.05 

Commercial and industrial loans ...................................... 0.66 2.21 0.34 1.35 0.74 0.88 0.73 1.21 1.16 0.54 

Loans to individuals .......................................................... 1.43 2.10 2.09 0.73 0.67 0.96 0.94 0.49 0.78 0.83 

Credit card loans ........................................................... 2.22 2.11 3.04 1.10 1.80 2.05 1.19 0.76 0.70 2.03 

Other loans to individuals .............................................. 0.91 2.03 1.66 0.71 0.54 0.24 0.85 0.47 0.79 0.59 

All other loans and leases (including farm) ...................... 0.56 0.03 1.10 0.57 0.38 0.38 0.11 0.35 0.52 0.21 

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

Percent of Loans Charged-off (net, YTD) 

1.39 2.00 1.42 1.05 1.31 1.87 1.97 0.77 0.95 1.15 

All real estate loans .......................................................... 0.23 1.80 0.39 0.09 0.22 0.27 0.09 0.03 0.07 0.16 

Construction and development ...................................... 0.36 0.00 0.25 0.38 0.38 0.80 0.06 0.10 0.14 0.14 

Nonfarm nonresidential ................................................. 0.09 0.00 0.04 0.11 0.11 0.04 0.01 -0.03 0.08 0.04 

Multifamily residential real estate .................................. 0.12 0.00 0.04 0.15 0.19 0.02 0.00 0.00 0.10 0.01 

Home equity loans ......................................................... 0.47 1.90 0.49 0.07 0.36 0.82 0.16 0.09 0.05 0.42 

Other 1-4 family residential ........................................... 0.21 1.52 0.44 0.10 0.20 0.20 0.09 0.05 0.06 0.11 

Commercial and industrial loans ...................................... 0.54 4.54 0.35 0.69 0.44 0.74 2.48 0.26 0.49 0.38 

Loans to individuals .......................................................... 2.50 4.17 2.80 0.64 1.16 3.28 1.65 0.90 0.71 1.60 

Credit card loans ........................................................... 4.06 4.16 3.36 2.07 3.37 7.07 2.70 3.49 1.96 4.03 

Other loans to individuals .............................................. 1.52 4.24 2.56 0.55 0.90 0.56 1.29 0.50 0.67 1.14 

All other loans and leases (including farm) ...................... 0.25 0.01 0.06 0.00 0.54 0.42 0.02 0.86 0.00 0.24 

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

Loans Outstanding (in billions) 

0.59 3.95 0.76 0.22 0.35 0.40 0.87 0.29 0.21 0.39 

All real estate loans .......................................................... $4,780.6 $1.6 $484.6 $58.8 $2,201.6 $882.3 $36.2 $5.4 $43.9 $1,066.3 

Construction and development ...................................... 628.9 0.0 9.8 5.8 502.6 24.6 0.8 0.4 3.0 82.0 

Nonfarm nonresidential ................................................. 968.4 0.0 26.6 16.1 711.9 34.5 3.7 1.5 10.2 164.1 

Multifamily residential real estate .................................. 202.7 0.0 11.8 1.0 115.9 42.0 0.2 0.1 0.7 31.0 

Home equity loans ......................................................... 607.4 1.4 96.3 1.1 191.2 101.6 9.9 0.1 1.7 204.1 

Other 1-4 family residential ........................................... 2,245.3 0.2 288.2 15.3 641.3 678.9 21.5 3.1 25.2 571.7 

Commercial and industrial loans ...................................... 1,440.3 46.6 321.0 14.8 663.2 15.7 4.3 1.1 6.5 367.0 

Loans to individuals .......................................................... 1,059.1 300.8 224.1 6.5 228.1 40.0 34.9 1.7 7.7 215.4 

Credit card loans ........................................................... 422.5 266.0 70.6 0.4 23.8 16.0 9.0 0.2 0.3 36.3 

Other loans to individuals .............................................. 636.7 34.8 153.5 6.1 204.2 24.0 25.9 1.6 7.4 179.1 

All other loans and leases (including farm) ...................... 628.6 19.6 208.2 24.9 169.3 5.7 1.0 0.8 4.7 194.5 

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

Memo: Other Real Estate Owned (in millions) 

7,908.7 368.5 1,237.8 105.0 3,262.2 943.6 76.5 9.1 62.8 1,843.2 

All other real estate owned ............................................... 12,138.3 N/M 1,060.3 208.0 6,232.5 2,530.1 45.3 18.1 125.3 1,937.0 

Construction and development ...................................... 2,224.0 0.0 0.0 64.2 1,972.6 130.7 4.8 1.5 16.2 34.0 

Nonfarm nonresidential ................................................. 1,526.5 0.0 11.0 66.7 1,171.4 38.5 23.9 11.4 46.8 156.8 

Multifamily residential real estate .................................. 361.9 0.0 0.0 5.9 247.1 22.4 0.3 0.4 8.3 77.5 

1-4 family residential ..................................................... 6,643.1 1.2 544.3 48.1 2,549.9 2,299.5 16.1 3.4 50.0 1,130.7 

Farmland ....................................................................... 68.7 0.0 0.0 22.8 40.2 0.2 0.3 0.4 3.7 1.1 

* 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 10 2008, VOLUME 2, NO. 1 
 

Quarterly Banking Profile 

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

December 31, 2007 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 1.58 1.71 1.32 1.11 1.74 1.20 1.56 2.00 1.16 1.40 1.77 

Construction and development ........................... 1.83 1.86 1.90 1.63 1.90 1.81 1.59 2.57 1.65 1.43 1.86 

Nonfarm nonresidential ....................................... 0.78 1.32 0.92 0.66 0.74 1.18 0.53 1.01 0.67 0.73 0.47 

Multifamily residential real estate ........................ 0.56 1.29 0.89 0.94 0.37 0.39 0.68 1.43 0.73 0.67 0.27 

Home equity loans .............................................. 1.14 0.94 0.95 0.81 1.18 0.77 1.30 0.92 1.19 0.73 1.42 

Other 1-4 family residential ................................. 2.11 2.23 1.55 1.32 2.28 1.24 2.07 2.92 1.35 2.34 2.52 

Commercial and industrial loans ............................ 0.73 1.46 1.14 0.98 0.64 1.07 0.49 0.87 1.00 0.66 0.52 

Loans to individuals ............................................... 2.07 2.79 2.00 2.20 2.05 2.24 1.86 1.87 2.59 1.72 2.00 

Credit card loans ................................................. 2.32 2.05 2.50 2.42 2.31 2.31 2.78 2.12 2.26 1.21 2.42 

Other loans to individuals .................................... 1.90 2.81 1.96 2.06 1.87 2.12 1.72 1.79 2.89 1.84 1.70 

All other loans and leases (including farm) ............ 0.47 0.73 0.65 0.70 0.43 0.51 0.37 0.72 0.34 0.70 0.24 

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

Percent of Loans Noncurrent** 

1.40 1.66 1.31 1.16 1.45 1.35 1.31 1.60 1.26 1.25 1.47 

All real estate loans ................................................ 1.71 1.27 1.32 1.53 1.84 1.17 1.48 2.23 2.35 1.51 1.83 

Construction and development ........................... 3.15 2.27 2.98 3.05 3.31 2.82 2.89 4.12 3.10 2.27 3.50 

Nonfarm nonresidential ....................................... 0.81 1.27 0.89 0.81 0.74 1.06 0.57 1.21 0.76 0.75 0.44 

Multifamily residential real estate ........................ 0.76 1.02 1.02 1.47 0.48 0.41 0.88 2.35 0.61 1.24 0.29 

Home equity loans .............................................. 0.86 0.64 0.55 0.60 0.90 0.53 1.00 0.76 0.71 0.33 1.14 

Other 1-4 family residential ................................. 2.06 1.17 0.96 1.40 2.31 1.13 1.58 2.81 4.28 2.00 2.37 

Commercial and industrial loans ............................ 0.66 1.37 1.08 0.82 0.58 1.09 0.49 0.60 0.86 0.66 0.56 

Loans to individuals ............................................... 1.43 0.95 0.61 1.06 1.51 1.77 0.84 0.95 1.35 0.58 1.93 

Credit card loans ................................................. 2.22 1.06 1.44 2.02 2.24 2.26 2.33 1.81 1.88 1.10 2.50 

Other loans to individuals .................................... 0.91 0.95 0.54 0.49 0.98 0.90 0.62 0.64 0.90 0.46 1.53 

All other loans and leases (including farm) ............ 0.56 0.60 0.51 0.43 0.58 0.68 0.17 0.59 0.23 0.51 1.18 

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

Percent of Loans Charged-off (net, YTD) 

1.39 1.19 1.22 1.34 1.43 1.25 1.16 1.55 1.70 1.22 1.57 

All real estate loans ................................................ 0.23 0.12 0.14 0.21 0.26 0.10 0.19 0.33 0.28 0.18 0.29 

Construction and development ........................... 0.36 0.29 0.33 0.42 0.35 0.28 0.31 0.51 0.41 0.31 0.36 

Nonfarm nonresidential ....................................... 0.09 0.10 0.08 0.11 0.09 0.07 0.06 0.14 0.07 0.12 0.09 

Multifamily residential real estate ........................ 0.12 0.21 0.13 0.36 0.04 0.01 0.31 0.31 0.07 0.22 0.04 

Home equity loans .............................................. 0.47 0.19 0.14 0.28 0.51 0.22 0.46 0.40 0.68 0.26 0.64 

Other 1-4 family residential ................................. 0.21 0.11 0.11 0.12 0.23 0.08 0.13 0.35 0.20 0.12 0.31 

Commercial and industrial loans ............................ 0.54 0.58 0.50 0.53 0.54 0.98 0.33 0.31 0.94 0.33 0.65 

Loans to individuals ............................................... 2.50 0.67 1.02 2.09 2.64 3.33 1.31 1.52 2.94 1.08 3.20 

Credit card loans ................................................. 4.06 2.44 5.28 3.69 4.08 4.22 4.00 3.44 4.27 2.45 4.11 

Other loans to individuals .................................... 1.52 0.64 0.69 1.27 1.63 1.78 0.92 0.84 1.78 0.77 2.60 

All other loans and leases (including farm) ............ 0.25 0.14 0.28 0.32 0.25 0.21 0.32 0.35 0.13 0.37 0.12 

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

Loans Outstanding (in billions) 

0.59 0.23 0.24 0.41 0.68 0.90 0.33 0.46 0.78 0.29 0.76 

All real estate loans ................................................ $4,780.6 $77.4 $717.5 $716.1 $3,269.6 $805.9 $1,374.4 $870.0 $384.1 $330.2 $1,016.1 

Construction and development ........................... 628.9 10.8 147.0 165.1 306.0 65.1 204.0 122.6 52.1 87.8 97.3 

Nonfarm nonresidential ....................................... 968.4 22.1 243.5 233.8 469.1 182.4 249.7 193.2 88.2 104.8 150.1 

Multifamily residential real estate ........................ 202.7 1.7 27.5 40.9 132.5 47.5 30.4 29.7 8.8 6.9 79.3 

Home equity loans .............................................. 607.4 2.5 33.7 42.0 529.2 58.3 193.0 152.9 75.9 21.6 105.7 

Other 1-4 family residential ................................. 2,245.3 31.4 238.5 220.4 1,755.0 448.2 676.1 355.6 140.9 98.7 525.9 

Commercial and industrial loans ............................ 1,440.3 16.7 123.0 153.6 1,147.0 203.3 345.7 349.3 121.6 102.1 318.4 

Loans to individuals ............................................... 1,059.1 9.0 49.4 79.2 921.6 291.9 179.5 175.8 102.9 40.8 268.3 

Credit card loans ................................................. 422.5 0.1 3.6 29.5 389.2 186.0 23.5 46.1 48.0 7.8 111.2 

Other loans to individuals .................................... 636.7 8.9 45.8 49.7 532.4 105.9 156.0 129.7 54.8 33.0 157.1 

All other loans and leases (including farm) ............ 628.6 11.9 36.2 36.0 544.5 94.4 159.7 164.4 72.5 20.3 117.3 

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

Memo: Other Real Estate Owned (in millions) 

7,908.7 115.0 926.1 984.9 5,882.6 1,395.6 2,059.2 1,559.4 681.0 493.3 1,720.2 

All other real estate owned .................................... 12,138.3 356.1 2,616.9 1,798.3 7,367.0 951.3 3,028.1 2,809.0 1,763.9 1,156.0 2,430.0 

Construction and development ........................... 2,224.0 70.0 1,021.6 712.2 420.2 201.1 782.4 348.2 299.9 391.7 200.8 

Nonfarm nonresidential ....................................... 1,526.5 115.2 667.6 307.2 436.6 148.5 367.0 393.5 250.6 292.1 74.9 

Multifamily residential real estate ........................ 361.9 13.1 100.3 95.2 153.3 30.8 114.4 121.5 29.5 23.7 42.0 

1-4 family residential ........................................... 6,643.1 143.7 792.6 670.5 5,036.4 540.4 1,720.7 1,399.0 637.4 398.7 1,946.9 

Farmland ............................................................. 68.7 13.6 32.4 11.2 11.5 15.0 6.7 8.7 9.1 27.2 1.9 

* 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 11 2008, VOLUME 2, NO.1 
TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks 

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

4th Quarter 

2007 

3rd Quarter 

2007 

2nd Quarter 

2007 

1st Quarter 

2007 

4th Quarter 

2006 

%Change 

06:4-07:4 

Asset Size Distribution 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$10 Billion 

Less than 

$100 Million 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ................................. 1,042 1,025 1,058 1,056 1,014 2.8 67 632 264 79 

Total assets of institutions reporting derivatives ........................... $9,826,802 $9,460,260 $9,147,067 $8,871,745 $8,834,288 11.2 $4,954 $275,039 $821,793 $8,725,016 

Total deposits of institutions reporting derivatives ........................ 6,324,177 6,031,920 5,900,355 5,750,636 5,751,266 10.0 3,969 216,148 588,151 5,515,908 

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

Derivative Contracts by Underlying Risk Exposure 

164,780,773 173,284,358 153,678,084 144,098,922 132,182,732 24.7 94 17,670 101,276 164,661,733 

Interest rate .......................................................................... 129,587,559 138,789,177 123,340,595 116,751,425 107,434,665 20.6 75 17,256 83,520 129,486,707 

Foreign exchange* ............................................................... 17,174,474 16,696,567 15,117,713 14,167,853 12,564,160 36.7 8 30 5,170 17,169,265 

Equity ................................................................................. 2,533,531 2,783,712 2,491,034 2,173,375 2,270,942 11.6 11 186 12,162 2,521,172 

Commodity & other (excluding credit derivatives) ........................ 1,073,116 1,025,685 951,725 840,505 893,310 20.1 0 0 207 1,072,908 

Credit ................................................................................ 14,412,094 13,989,217 11,777,017 10,165,765 9,019,655 59.8 0 198 216 14,411,679 

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

Derivative Contracts by Transaction Type 

164,780,773 173,284,358 153,678,084 144,098,922 132,182,732 24.7 94 17,670 101,276 164,661,733 

Swaps ................................................................................ 103,100,934 111,410,085 95,320,189 88,006,970 81,339,865 26.8 19 10,639 59,484 103,030,791 

Futures & forwards ................................................................. 18,967,549 17,202,716 16,198,687 15,307,497 14,881,758 27.5 18 1,621 16,017 18,949,894 

Purchased options ................................................................. 13,784,021 14,562,615 14,298,899 14,737,699 12,944,893 6.5 5 3,109 20,357 13,760,550 

Written options .................................................................... 13,956,210 15,033,429 14,773,476 14,601,673 13,332,489 4.7 44 2,088 4,884 13,949,194 

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

Fair Value of Derivative Contracts 

149,808,714 158,208,844 140,591,251 132,653,840 122,499,005 22.3 86 17,457 100,742 149,690,429 

Interest rate contracts ........................................................... 33,902 30,716 20,001 24,423 23,275 45.7 0 45 58 33,799 

Foreign exchange contracts ................................................... 6,569 3,119 5,661 74,088 5,324 23.4 0 0 -7 6,576 

Equity contracts .................................................................... -18,947 -20,872 -24,473 -18,499 -17,845 6.2 0 10 59 -19,016 

Commodity & other (excluding credit derivatives) ........................ 1,422 1,664 1,946 22,530 2,658 -46.5 0 0 0 1,421 

Credit derivatives as guarantor ................................................ -212,447 -104,120 -22,960 9,032 31,583 -772.7 0 0 -16 -212,431 

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

Derivative Contracts by Maturity** 

222,426 110,905 23,824 -9,668 -32,745 -779.3 0 0 7 222,419 

Interest rate contracts ........................................... < 1 year 39,085,024 48,917,897 39,403,807 32,457,730 29,551,704 32.3 11 2,067 23,077 39,059,868

 ............................ 1-5 years 37,222,439 36,310,944 33,846,133 33,802,189 31,385,640 18.6 9 10,311 27,112 37,185,007

 ............................ > 5 years 27,722,186 27,875,202 24,588,177 24,684,533 23,273,618 19.1 12 2,552 27,038 27,692,583 

Foreign exchange contracts ................................... < 1 year 11,592,113 10,094,603 8,948,450 8,372,488 7,690,210 50.7 0 7 3,801 11,588,305

 ............................ 1-5 years 1,604,898 1,831,220 1,667,700 1,571,241 1,415,846 13.4 0 4 17 1,604,878

 ............................ > 5 years 618,960 718,390 676,071 624,415 592,897 4.4 0 5 10 618,945 

Equity contracts ................................................... < 1 year 473,413 464,820 442,652 397,237 341,346 38.7 0 22 148 473,242

 ............................ 1-5 years 297,419 330,227 283,520 236,563 220,856 34.7 5 74 400 296,940

 ............................ > 5 years 70,485 95,900 62,916 74,332 44,858 57.1 0 1 37 70,447 

Commodity & other contracts .................................. < 1 year 288,125 278,442 280,133 271,647 235,107 22.6 0 0 158 287,967

 ............................ 1-5 years 337,075 308,298 261,410 200,458 272,314 23.8 0 0 27 337,048

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

Risk-Based Capital: Credit Equivalent Amount 

26,387 27,617 27,273 23,931 21,581 22.3 0 0 0 26,387 

Total current exposure to tier 1 capital (%) ................................. 45.6 38.0 30.7 28.3 29.2 0.2 0.4 1.9 52.8 

Total potential future exposure to tier 1 capital (%) ......................... 109.8 115.1 113.4 106.8 97.7 0.1 0.4 0.9 127.5 

Total exposure (credit equivalent amount) to tier 1 capital (%) ......... 155.4 153.1 144.1 135.1 126.9 0.3 0.8 2.7 180.3 

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

HELD FOR TRADING 

156.0 125.0 6.0 -3.0 -25.0 -724.0 1.0 0.0 155.0 

Number of institutions reporting derivatives ................................. 166 159 167 156 147 12.9 11 45 57 53 

Total assets of institutions reporting derivatives ........................... 8,307,238 7,977,733 7,640,639 7,388,068 7,223,404 15.0 760 22,358 250,499 8,033,621 

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

Derivative Contracts by Underlying Risk Exposure 

5,354,783 5,083,233 4,917,948 4,770,665 4,712,089 13.6 599 17,483 175,641 5,161,060 

Interest rate .......................................................................... 127,126,919 136,068,953 120,820,791 114,003,913 104,692,154 21.4 9 304 30,489 127,096,117 

Foreign exchange ................................................................. 16,483,269 15,489,462 13,683,371 12,769,131 11,788,161 39.8 0 12 4,486 16,478,771 

Equity ................................................................................ 2,515,242 2,767,663 2,474,617 2,168,932 2,266,778 11.0 0 1 347 2,514,894 

Commodity & other ................................................................. 1,072,230 1,024,998 951,236 840,237 893,087 20.1 0 0 148 1,072,082 

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

Trading Revenues: Cash & Derivative Instruments 

147,197,659 155,351,076 137,930,014 129,782,212 119,640,180 23.0 9 317 35,470 147,161,864 

Interest rate .......................................................................... -5,658 1,364 2,939 2,405 1,151 -591.6 0 0 13 -5,671 

Foreign exchange ................................................................. 1,873 2,005 1,265 1,830 1,613 16.1 0 0 9 1,864 

Equity ................................................................................ 211 -92 1,020 1,732 1,214 -82.6 0 0 0 211 

Commodity & other (including credit derivatives) ........................ -6,400 -1,017 907 1,053 -111 5,665.8 0 0 1 -6,401 

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

Share of Revenue 

-9,974 2,260 6,131 7,020 3,866 -358.0 0 0 23 -9,997 

Trading revenues to gross revenues (%) .................................... -7.2 1.5 4.1 4.9 3.0 0.0 0.0 0.7 -7.4 

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

HELD FOR PURPOSES OTHER THAN TRADING 

-233.9 12.6 27.0 33.0 19.6 0.0 -0.4 7.3 -256.0 

Number of institutions reporting derivatives ................................. 959 949 971 969 935 2.6 56 591 237 75 

Total assets of institutions reporting derivatives ........................... 9,651,581 9,300,460 8,967,342 8,637,459 8,604,674 12.2 4,160 254,949 749,334 8,643,139 

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

Derivative Contracts by Underlying Risk Exposure 

6,204,217 5,923,372 5,776,699 5,582,898 5,589,964 11.0 3,336 200,320 536,933 5,463,628 

Interest rate .......................................................................... 2,460,640 2,720,224 2,519,804 2,747,512 2,742,511 -10.3 66 16,952 53,031 2,390,591 

Foreign exchange ................................................................. 131,240 120,808 124,526 119,405 111,928 17.3 0 4 366 130,870 

Equity ................................................................................ 18,289 16,048 16,417 4,443 4,164 339.2 11 185 11,815 6,279 

Commodity & other ................................................................. 886 687 489 268 223 297.3 0 0 59 826 

Total notional amount .............................................................. 2,611,055 2,857,768 2,661,237 2,871,628 2,858,826 -8.7 77 17,140 65,272 2,528,566 

All line items are reported on a quarterly basis.
 

*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 contracts.
 

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

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

FDIC QUARTERLY 12 2008, VOLUME 2, NO. 1 
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Quarterly Banking Profile 

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

(dollar figures in millions) 

4th Quarter 

2007 

3rd Quarter 

2007 

2nd Quarter 

2007 

1st Quarter 

2007 

4th Quarter 

2006 

%Change 

06:4-07:4 

Less than 

$100 Million 

Asset Size Distribution 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$10 Billion 

Assets Sold and Securitized with Servicing Retained or with Recourse or 

Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities ................................................ 

Outstanding Principal Balance by Asset Type 

124 122 126 126 123 0.8 14 49 20 41 

1-4 family residential loans ................................................................................... $1,129,377 $1,111,554 $1,119,076 $1,088,151 $739,041 52.8 $44 $326 $9,074 $1,119,933 

Home equity loans ............................................................................................. 9,353 9,894 10,640 9,339 8,905 5.0 0 0 232 9,120 

Credit card receivables ........................................................................................ 389,502 379,662 372,481 367,796 362,467 7.5 0 2,939 11,713 374,850 

Auto loans ........................................................................................................ 9,019 10,433 12,547 14,132 16,263 -44.5 0 0 291 8,728 

Other consumer loans ......................................................................................... 28,542 29,386 27,396 27,737 28,673 -0.5 0 7 0 28,536 

Commercial and industrial loans ........................................................................... 14,148 15,862 13,193 12,039 10,543 34.2 0 39 5,322 8,787 

All other loans, leases, and other assets* ................................................................ 193,875 184,941 162,434 150,404 144,582 34.1 1 79 681 193,115 

Total securitized and sold ....................................................................................... 

Maximum Credit Exposure by Asset Type 

1,773,817 1,741,732 1,717,767 1,669,598 1,310,475 35.4 45 3,389 27,313 1,743,069 

1-4 family residential loans ................................................................................... 6,891 6,856 6,502 6,047 6,580 4.7 17 4 35 6,836 

Home equity loans ............................................................................................. 2,000 2,336 2,402 2,354 2,332 -14.2 0 0 10 1,990 

Credit card receivables ........................................................................................ 19,196 19,120 18,711 17,685 19,182 0.1 0 167 601 18,428 

Auto loans ........................................................................................................ 380 426 555 628 724 -47.5 0 0 12 368 

Other consumer loans ......................................................................................... 1,379 2,114 1,768 1,861 1,882 -26.7 0 0 0 1,379 

Commercial and industrial loans ............................................................................ 282 399 314 311 348 -19.0 0 0 71 211 

All other loans, leases, and other assets ................................................................. 3,733 4,578 1,053 1,052 964 287.2 1 26 42 3,663 

Total credit exposure ............................................................................................. 33,860 35,829 31,304 29,937 32,013 5.8 18 197 771 32,875 

Total unused liquidity commitments provided to institution's own securitizations ................. 

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

4,686 5,095 5,667 6,116 6,503 -27.9 0 0 0 4,686 

1-4 family residential loans ................................................................................... 2.7 2.7 2.6 2.1 3.0 2.7 0.0 10.3 2.6 

Home equity loans .............................................................................................. 0.8 0.7 0.6 0.7 0.7 0.0 0.0 2.4 0.8 

Credit card receivables ........................................................................................ 2.2 2.1 1.9 1.9 2.0 0.0 1.2 1.6 2.2 

Auto loans ......................................................................................................... 2.5 2.0 1.7 1.5 1.7 0.0 0.0 1.1 2.5 

Other consumer loans ......................................................................................... 3.1 2.8 2.8 2.4 3.0 0.0 0.0 0.0 3.1 

Commercial and industrial loans ............................................................................ 1.0 1.0 0.5 0.7 0.7 0.0 0.0 2.3 0.2 

All other loans, leases, and other assets ................................................................. 0.1 0.1 0.1 0.1 0.2 0.0 0.0 0.2 0.1 

Total loans, leases, and other assets ........................................................................ 

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

2.3 2.3 2.1 1.9 2.4 2.6 1.1 4.6 2.2 

1-4 family residential loans .................................................................................. 1.5 1.2 1.3 1.1 1.2 0.3 0.0 23.8 1.4 

Home equity loans .............................................................................................. 0.5 0.4 0.3 0.4 0.5 0.0 0.0 1.1 0.5 

Credit card receivables ........................................................................................ 1.9 1.7 1.6 1.8 1.7 0.0 1.1 1.3 1.9 

Auto loans ........................................................................................................ 0.3 0.2 0.2 0.2 0.3 0.0 0.0 0.1 0.4 

Other consumer loans ......................................................................................... 2.4 2.1 2.1 2.0 2.1 0.0 0.0 0.0 2.4 

Commercial and industrial loans ............................................................................ 0.9 0.7 0.6 0.6 0.7 0.0 0.0 2.0 0.3 

All other loans, leases, and other assets ................................................................. 0.1 0.1 0.2 0.1 0.2 0.0 1.9 0.0 0.1 

Total loans, leases, and other assets ........................................................................ 

Securitized Loans, Leases, and Other Assets Charged-Off (net, YTD, annualized, %) 

1.5 1.2 1.2 1.2 1.2 0.3 1.0 8.9 1.4 

1-4 family residential loans ................................................................................... 0.1 0.0 0.0 0.0 0.0 0.0 0.0 3.1 0.0 

Home equity loans ............................................................................................. 0.2 0.1 0.1 0.1 0.3 0.0 0.0 1.6 0.2 

Credit card receivables ........................................................................................ 4.4 3.3 2.2 1.1 3.8 0.0 3.3 3.0 4.5 

Auto loans ........................................................................................................ 1.2 0.8 0.5 0.3 0.7 0.0 0.0 0.5 1.2 

Other consumer loans ........................................................................................ 1.3 1.1 0.7 0.4 1.5 0.0 0.0 0.0 1.3 

Commercial and industrial loans ........................................................................... 2.0 1.3 0.7 0.4 1.3 0.0 0.0 4.2 0.7 

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

Total loans, leases, and other assets ........................................................................ 

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

1.1 0.8 0.5 0.3 1.1 0.0 2.9 3.1 1.0 

Home equity loans ............................................................................................. 347 494 651 671 869 -60.1 0 0 0 347 

Credit card receivables ........................................................................................ 86,748 77,451 73,405 61,569 75,225 15.3 0 251 4,699 81,798 

Commercial and industrial loans ........................................................................... 

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

7,671 6,018 2,843 2,863 2,596 195.5 0 0 816 6,855 

Home equity loans ............................................................................................. 9 10 10 10 10 -10.0 0 0 0 9 

Credit card receivables ........................................................................................ 436 374 327 281 322 35.4 0 62 374 0 

Commercial and industrial loans ........................................................................... 

Assets Sold with Recourse and Not Securitized 

2 6 9 1 5 -60.0 0 0 0 2 

Number of institutions reporting asset sales ............................................................... 

Outstanding Principal Balance by Asset Type 

757 749 738 731 716 5.7 154 455 103 45 

1-4 family residential loans ................................................................................... 57,554 57,407 55,156 55,719 55,777 3.2 939 6,857 2,719 47,040 

Home equity, credit card receivables, auto, and other consumer loans .......................... 674 775 603 1,906 708 -4.8 1 60 13 600 

Commercial and industrial loans ........................................................................... 4,985 5,302 7,708 8,198 6,668 -25.2 0 172 390 4,423 

All other loans, leases, and other assets ................................................................. 24,082 21,509 8,035 8,103 6,981 245.0 1 89 419 23,573 

Total sold and not securitized ................................................................................. 

Maximum Credit Exposure by Asset Type 

87,296 84,993 71,503 73,926 70,133 24.5 942 7,178 3,540 75,636 

1-4 family residential loans ................................................................................... 14,746 15,866 14,539 13,826 13,213 11.6 98 1,422 1,834 11,392 

Home equity, credit card receivables, auto, and other consumer loans .......................... 605 742 575 1,871 663 -8.7 1 6 4 595 

Commercial and industrial loans ........................................................................... 3,650 3,671 4,453 4,543 4,499 -18.9 0 162 390 3,098 

All other loans, leases, and other assets ................................................................. 6,968 6,447 2,383 2,428 2,530 175.4 1 14 107 6,845 

Total credit exposure ............................................................................................. 

Support for Securitization Facilities Sponsored by Other Institutions 

25,969 26,726 21,951 22,668 20,904 24.2 100 1,604 2,335 21,930 

Number of institutions reporting securitization facilities sponsored by others ..................... 47 49 50 47 47 0.0 24 12 4 7 

Total credit exposure ............................................................................................. 2,841 1,477 1,375 1,348 1,135 150.3 7 113 91 2,630 

Total unused liquidity commitments ........................................................................... 

Other 

10,314 8,242 14,093 5,827 5,857 76.1 0 0 0 10,314 

Assets serviced for others** .................................................................................... 

Asset-backed commercial paper conduits 

3,802,194 3,648,511 3,570,284 3,496,744 3,393,204 12.1 7,715 61,590 121,529 3,611,359 

Credit exposure to conduits sponsored by institutions and others ................................. 22,226 22,592 22,211 21,404 20,714 7.3 2 0 130 22,094 

Unused liquidity commitments to conduits sponsored by institutions and others ............... 374,260 365,850 364,656 327,395 306,435 22.1 0 0 0 374,260 

Net servicing income (for the quarter) ........................................................................ 2,705 3,635 5,330 3,601 2,162 25.1 66 128 138 2,373 

Net securitization income (for the quarter) .................................................................. 5,007 5,812 5,355 4,964 2,407 108.0 0 60 256 4,691 

Total credit exposure to Tier 1 capital (%)*** ............................................................... 6.3 6.5 5.6 5.7 5.8 0.50 1.50 2.50 8.00 

*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 13 2008, VOLUME 2, NO.1 
TABLE VIII-A. Trust Services (All FDIC-Insured Institutions) 

(dollar figures in millions) 

All Insured Institutions Asset Size Distribution 

Dec 31 

2007 

Dec 31 

2006 

Dec 31 

2005 

Dec 31 

2004 

% Change 

2006-2007 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$10 Billion 

Number of institutions reporting ....................................................................... 8,533 8,680 8,833 8,976 -1.7 3,440 4,425 549 119 

Number of institutions with fiduciary powers .................................................... 2,407 2,463 2,515 2,573 -2.3 559 1,431 335 82 

Commercial banks ........................................................................................ 2,213 2,268 2,312 2,369 -2.4 537 1,327 281 68 

Savings institutions ....................................................................................... 194 195 203 204 -0.5 22 104 54 14 

Number of institutions exercising fiduciary powers .......................................... 1,783 1,826 1,866 1,897 -2.4 356 1,072 283 72 

Commercial banks ........................................................................................ 1,631 1,672 1,708 1,740 -2.5 337 995 237 62 

Savings institutions ....................................................................................... 152 154 158 157 -1.3 19 77 46 10 

Number of institutions reporting fiduciary activity ............................................. 1,692 1,739 1,791 1,820 -2.7 333 1,015 275 69 

Commercial banks ........................................................................................ 1,549 1,593 1,642 1,670 -2.8 314 943 232 60 

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

Fiduciary and related assets - managed assets 

143 146 149 150 -2.1 19 72 43 9 

Personal trust and agency accounts ................................................................ 801,832 764,549 735,821 740,141 4.9 10,663 71,742 64,841 654,586

 Noninterest-bearing deposits ........................................................................ -55 -4 364 553 N/M 13 115 54 -236 

Interest-bearing deposits ............................................................................... 11,573 9,368 8,012 7,507 23.5 251 2,410 1,613 7,298 

U.S. Treasury and U.S. Government agency obligations ............................. 31,725 32,866 34,664 34,519 -3.5 551 4,589 5,084 21,501 

State, county and municipal obligations ........................................................ 67,161 70,908 73,332 77,554 -5.3 890 5,810 5,394 55,067 

Money market mutual funds .......................................................................... 51,290 38,133 33,640 33,442 34.5 944 4,387 4,480 41,479 

Other short-term obligations .......................................................................... 21,942 9,566 8,601 7,168 129.4 32 420 254 21,236 

Other notes and bonds .................................................................................. 25,429 26,894 27,268 31,964 -5.4 584 2,211 1,979 20,655 

Common and preferred stocks ...................................................................... 523,469 514,944 491,075 496,357 1.7 6,080 41,298 38,422 437,670 

Real estate mortgages .................................................................................. 1,531 1,604 1,476 1,495 -4.6 25 238 195 1,073 

Real estate .................................................................................................... 34,269 31,876 29,721 26,812 7.5 685 4,110 3,718 25,756 

Miscellaneous assets .................................................................................... 

Retirement related trust and agency accounts: 

33,474 27,937 27,520 22,770 19.8 609 6,131 3,649 23,086 

Employee benefit - defined contribution ........................................................ 329,048 307,193 226,768 206,460 7.1 1,255 92,359 11,095 224,338 

Employee benefit - defined benefit ................................................................ 1,060,203 1,153,825 1,067,293 1,067,158 -8.1 1,494 12,672 46,179 999,857 

Other retirement accounts ............................................................................. 414,981 309,451 249,466 211,635 34.1 6,625 8,723 12,588 387,046 

Corporate trust and agency accounts .............................................................. 25,247 31,457 42,634 27,650 -19.7 33 1,001 2,566 21,647 

Investment management agency accounts ...................................................... 1,592,442 1,505,170 1,311,707 1,287,407 5.8 27,091 93,013 65,178 1,407,160 

Other fiduciary accounts .................................................................................. 

Total managed fiduciary accounts: 

236,787 320,331 266,515 203,554 -26.1 3,764 1,938 5,419 225,666 

Assets ........................................................................................................... 4,460,539 4,391,975 3,900,205 3,744,006 1.6 50,926 281,448 207,865 3,920,299 

Number of accounts ...................................................................................... 

Fiduciary and related assets - non-managed assets 

3,337,630 2,998,573 2,915,478 3,994,184 11.3 71,461 217,422 194,463 2,854,284 

Personal trust and agency accounts ................................................................ 

Retirement related trust and agency accounts: 

355,027 309,352 286,571 273,147 14.8 2,614 20,560 15,361 316,492 

Employee benefit - defined contribution ........................................................ 1,824,711 1,779,447 1,525,454 1,325,041 2.5 5,815 490,374 77,232 1,251,291 

Employee benefit - defined benefit ................................................................ 5,333,474 4,542,943 3,567,201 3,415,480 17.4 14,948 17,384 75,156 5,225,987 

Other retirement accounts ............................................................................. 2,097,068 2,121,450 2,107,183 1,538,809 -1.1 2,442 734,417 38,757 1,321,452 

Corporate trust and agency accounts .............................................................. 4,427,690 2,961,810 2,567,357 2,155,927 49.5 5,227 12,567 637,748 3,772,148 

Other fiduciary accounts .................................................................................. 

Total non-managed fiduciary accounts: 

3,367,009 3,170,657 2,580,461 2,447,526 6.2 4,501 6,515 12,261 3,343,732 

Assets ........................................................................................................... 17,404,979 14,885,658 12,634,226 11,155,930 16.9 35,547 1,281,817 856,514 15,231,101 

Number of accounts ...................................................................................... 

Custody and safekeeping accounts: 

16,425,153 16,039,580 15,695,352 22,042,098 2.4 28,764 11,752,525 513,891 4,129,973 

Assets ........................................................................................................... 58,167,932 48,360,083 36,798,168 33,496,968 20.3 267,264 934,499 840,542 56,125,627 

Number of accounts ...................................................................................... 

Fiduciary and related services income 

11,335,508 11,207,692 11,513,512 16,220,035 1.1 562,128 9,031,550 349,862 1,391,968 

Personal trust and agency accounts ................................................................ 

Retirement related trust and agency accounts: 

5,767 5,147 5,244 4,878 12.0 82 374 433 4,877 

Employee benefit - defined contribution ........................................................ 1,183 1,305 1,187 1,173 -9.3 10 288 119 765 

Employee benefit - defined benefit ................................................................ 1,808 1,949 1,789 1,465 -7.2 16 101 87 1,603 

Other retirement accounts ............................................................................. 1,034 871 753 710 18.7 36 69 113 816 

Corporate trust and agency accounts .............................................................. 2,439 2,054 1,877 2,350 18.7 204 30 421 1,784 

Investment management agency accounts ...................................................... 4,159 3,683 3,562 3,178 12.9 100 407 279 3,373 

Other fiduciary accounts .................................................................................. 2,156 1,440 1,350 992 49.7 4 22 24 2,106 

Custody and safekeeping accounts ................................................................. 8,166 8,011 7,167 5,945 1.9 165 467 435 7,099 

Other fiduciary and related services income .................................................... 2,420 1,855 1,577 2,431 30.5 7 116 91 2,207 

Total gross fiduciary and related services income ........................................... 29,292 26,142 24,781 23,130 12.0 633 1,997 2,031 24,631 

Less: Expenses ............................................................................................. 20,502 19,094 17,266 16,639 7.4 236 1,458 1,494 17,313 

Less: Net losses from fiduciary and related services .................................... 360 155 190 202 132.3 1 1 7 351 

Plus: Intracompany income credits for fiduciary and related services .......... 4,543 2,897 1,302 1,135 56.8 1 29 1,479 3,035 

Net fiduciary and related services income ....................................................... 12,809 9,962 8,424 7,417 28.6 384 443 1,981 10,001 

Collective investment funds and common trust funds (market value) 

Domestic equity funds ................................................................................... 448,225 449,079 478,087 482,294 -0.2 6,566 16,668 7,752 417,238 

International/global equity funds ................................................................... 206,551 171,114 129,572 119,084 20.7 1,171 3,390 2,041 199,950 

Stock/bond blend funds ................................................................................. 215,849 217,734 77,526 69,116 -0.9 1,882 745 2,678 210,543 

Taxable bond funds ....................................................................................... 214,145 185,398 248,050 243,403 15.5 943 46,454 2,376 164,372 

Municipal bond funds .................................................................................... 8,328 8,695 60,308 11,127 -4.2 4 607 348 7,369 

Short term investments/money market funds ................................................ 395,025 352,341 365,759 386,342 12.1 2,655 3,197 161 389,013 

Specialty/other funds ..................................................................................... 121,628 96,902 102,112 93,594 25.5 549 33,703 1,126 86,249 

Total collective investment funds ..................................................................... 1,609,751 1,481,262 1,461,414 1,404,959 8.7 13,770 104,764 16,482 1,474,734 

FDIC QUARTERLY 14 2008, VOLUME 2, NO. 1 
Author: 

Author: 

Quarterly Banking Profile 

INSURANCE FUND INDICATORS 

■ Insured Deposits Grow by 1.2 Percent in the Fourth Quarter 

■ DIF Reserve Ratio Is Unchanged at 1.22 Percent 

■ Three Insured Institutions Fail During the Year 

From September 30 to December 31, total assets of the 

nation’s 8,533 FDIC-insured commercial banks and 

savings institutions increased by $331.8 billion (2.6 

percent). Total deposits, which increased by $232.8 

billion, funded about 70 percent of this asset growth. 

During the fourth quarter, total domestic deposits grew 

by 2.5 percent, the highest quarterly percentage 

increase since the fourth quarter of 2004. Brokered 

deposits increased by 12.4 percent, the largest quarterly 

percentage increase since the fourth quarter of 2000 

when brokered deposits increased by 13.0 percent. Five 

institutions accounted for approximately two-thirds of 

this growth. 

Domestic time deposits increased by 2.1 percent, while 

other domestic interest-bearing deposits increased by 

1.7 percent and domestic non-interest bearing deposits 

increased by 5.8 percent. Over the 12 months ending 

December 31, total domestic deposits increased by 4.2 

percent, with domestic interest-bearing deposits rising 

by 5.7 percent but domestic noninterest-bearing 

deposits declining by 2.2 percent. 

Over the past year, the share of assets funded by domestic deposits declined from 56 percent to 53 percent. By 

contrast, foreign deposits as a percent of total assets 

rose during 2007 from 10.1 percent to 11.5 percent, 

and Federal Home Loan Bank (FHLB) advances’ share 

of asset funding increased from 5.2 percent to 6.2 percent. In 2007, foreign office deposits increased by 25.8 

percent ($308.5 billion) and FHLB advances increased 

by 30.3 percent ($187.9 billion). 

Estimated insured deposits (including U.S. branches of 

foreign banks) increased by 1.2 percent during the 

fourth quarter of 2007, compared to nearly flat growth 

(0.2 percent increase) for the previous quarter. For all 

of 2007, insured deposits increased by 3.4 percent, 

down from 6.8 percent in 2006. For institutions reporting as of December 31, 2007 and September 30, 2007, 

insured deposits increased during the fourth quarter at 

5,178 institutions (62 percent), decreased at 3,259 

institutions (38 percent) and remained unchanged at 

46 institutions. 

The Deposit Insurance Fund (DIF) increased by 1.3 

percent ($659 million) during the fourth quarter to 

$52,413 million. Accrued assessment income added 

$239 million to the DIF during the fourth quarter. The 

fund received $138 million from unrealized gains on 

available for sale securities, and took in $321 million 

from interest on securities and other revenue, net of 

operating expenses. The DIF was reduced by $39 million in additional provisions for insurance losses. For 

the year, the fund balance grew by 4.5 percent, up from 

3.2 percent growth in 2006. 

The DIF’s reserve ratio equaled 1.22 percent on 

December 31, 2007, unchanged from the previous quarter. During 2007, the reserve ratio increased by one 

basis point, from 1.21 percent at year-end 2006. 

Only one FDIC-insured institution failed during the 

fourth quarter of 2007, a small commercial bank. At 

the time of failure, this institution had $93 million in 

assets and an estimated failure cost of $3 million. For 

all of 2007, three FDIC-insured institutions failed with 

assets of $2.3 billion and an estimated failure cost of 

$120 million. These are the first failures since 2004, 

during which four institutions failed. 

Author: 	 Kevin Brown, Sr. Financial Analyst 

Division of Insurance and Research, FDIC 

(202) 898-6817 

FDIC QUARTERLY	 15 2008, VOLUME 2, NO. 1 
 

 

 

 

TABLE I-B. Insurance Fund Balances and Selected Indicators 

(dollar figures in millions) Deposit Insurance Fund 

4th Quarter 

2007 

3rd Quarter 

2007 

2nd Quarter 

2007 

1st Quarter 

2007 

4th Quarter 

2006 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd Quarter 

2005 

Beginning Fund Balance*.......................................... 

Changes in Fund Balance: 

$51,754 $51,227 $50,745 $50,165 $49,992 $49,564 $49,193 $48,597 $48,373 $48,023 

Assessments earned................................................... 239 170 140 94 10 10 7 5 13 20 

Interest earned on investment securities........................ 585 640 748 567 476 622 665 478 675 536 

Operating expenses................................................... 262 243 248 239 248 237 242 224 252 227 

Provision for insurance losses....................................... 39 132 -3 -73 49 -50 -6 -45 -19 -65 

All other income, net of expenses**.............................. 

Unrealized gain/(loss) on available-for-sale 

-2 24 1 4 5 1 12 349 4 3 

securities.............................................................. 138 68 -162 81 -21 -18 -77 -57 -235 -47 

Total fund balance change.......................................... 659 527 482 580 173 428 371 596 224 350 

Ending Fund Balance*............................................. 52,413 51,754 51,227 50,745 50,165 49,992 49,564 49,193 48,597 48,373

 Percent change from four quarters earlier..................... 4.48 3.52 3.36 3.15 3.23 3.35 3.21 3.31 2.29 2.94 

Reserve Ratio (%)................................................... 1.22 1.22 1.21 1.20 1.21 1.22 1.23 1.23 1.25 1.26 

Estimated Insured Deposits ....................................... 4,293,201 4,243,894 4,234,835 4,245,148 4,153,764 4,100,013 4,040,353 4,001,906 3,890,941 3,830,950

 Percent change from four quarters earlier..................... 3.36 3.51 4.81 6.08 6.75 7.02 7.52 8.50 7.42 7.63 

Assessment Base 7,052,552 6,879,633 6,821,486 6,801,520 6,594,750 6,439,326 6,386,864 6,272,505 6,177,429 6,038,857

 Percent change from four quarters earlier..................... 6.94 6.84 6.80 8.43 6.76 6.63 8.64 8.15 8.88 9.47 

Number of institutions reporting................................. 8,544 8,571 8,625 8,661 8,692 8,755 8,790 8,803 8,846 8,871 

DIF Reserve Ratio* 

Percent of Insured Deposits 

1.32 1.32 1.31 

1.29 1.28 

1.26 1.25 

1.23 1.23 1.22 1.21 1.20 1.21 1.22 1.22 

6/04 12/04 6/05 12/05 6/06 12/06 6/07 12/07 

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

(dollar figures in millions) 2007 2006 2005 2004 2003 2002 

Problem Institutions

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

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

Failed/Assisted Institutions

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

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

76 

$22,189 

3 

$2,345 

50 

$8,265 

0 

$0 

52 

$6,607 

0

$0 

80 

$28,250 

4 

$166 

116 

$29,917 

3 

$1,097 

136

$38,927 

11 

$2,558 

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

** First Quarter 2006 includes previously escrowed revenue from SAIF-member exit fees.
 

Deposit Insurance Fund Balance 

and Insured Deposits* 

($ Millions) 

DIF DIF-Insured 

Balance Deposits 

6/04 46,521 3,531,806 

9/04 46,990 3,559,489 

12/04 47,507 3,622,068 

3/05 47,617 3,688,562 

6/05 48,023 3,757,728 

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 4,153,764 

3/07 50,745 4,245,148 

6/07 51,227 4,234,835 

9/07 51,754 4,243,894 

12/07 52,413 4,293,201 

FDIC QUARTERLY 16 2008, VOLUME 2, NO. 1 
 

 

 

 

 

 

 

 

Quarterly Banking Profile 

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

(dollar figures in millions) 

December 31, 2007 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

FDIC-Insured Commercial Banks ............................................... 7,282 11,176,096 5,806,795 3,426,148 

FDIC-Supervised ................................................................. 4,772 1,874,698 1,370,557 927,470 

OCC-Supervised ................................................................. 1,632 7,782,387 3,590,744 1,995,866 

Federal Reserve-Supervised .................................................. 878 1,519,012 845,494 502,812 

FDIC-Insured Savings Institutions ............................................... 1,251 1,862,669 1,104,986 860,936

 OTS-Supervised Savings Institutions ........................................ 826 1,556,670 892,592 696,835

 FDIC-Supervised State Savings Banks ..................................... 

Total Commercial Banks and 

425 305,999 212,394 164,101 

Savings Institutions .............................................................. 

Other FDIC-Insured Institutions 

8,533 13,038,765 6,911,780 4,287,084 

U.S. Branches of Foreign Banks ................................................ 11 16,614 8,886 6,116 

Total FDIC-Insured Institutions .................................................. 8,544 13,055,379 6,920,667 4,293,201 

* Excludes $1.50 trillion in foreign office deposits, which are uninsured. 

TABLE IV-B. Distribution of Institutions and Assessment Base Among Risk Categories 

Quarter Ending September 30, 2007 

(dollar figures in billions) Annual Percent of Total 

Rate in Number of Percent of Total Assessment Assessment 

Risk Category Basis Points Institutions Institutions Base Base 

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

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

5 

5.01- 6.00 

2,709 

3,088 

31.6% 

36.0% 

3,872 

2,078 

56.3% 

30.2% 

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

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

6.01- 6.99 

7 

1,422 

859 

16.6% 

10.0% 

456 

296 

6.6% 

4.3% 

II ............................................................... 10 422 4.9% 163 2.4% 

III ............................................................ 28 64 0.7% 14 0.2% 

IV ............................................................ 43 7 0.1% 1 0.0% 

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of September 30, 2007. 


Rates do not reflect the application of assessment credits. See notes to users for further information on risk categories and rates.
 

FDIC QUARTERLY 17 2008, VOLUME 2, NO. 1 
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 FDIC-insured 

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) Call Reports and the OTS Thrift Financial Reports 

submitted by all FDIC-insured depository institutions. This information is stored on and retrieved from the FDIC’s Research Information 

System (RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial Reports to 

provide closer conformance with the reporting and accounting 

requirements of the FFIEC Call Reports. Parent institutions are 

required to file consolidated reports, while their subsidiary financial 

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

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

for any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance ratios 

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

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

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

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

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

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

in the current period. 

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

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

and liabilities located outside of the reporting institution’s home state. 

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 

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 a fair value 

measurement framework, while FAS 159 allows banks to elect a fair 

value option when assets are recognized on the balance sheet and to 

report certain financial assets and liabilities at fair value with subsequent changes in fair value included in earnings. Existing eligible 

items can be fair-valued as early as January 2007 under FAS 159, if 

a bank adopts FAS 157. 

FASB Statement 158 Employers’ Accounting for Defined Benefit Pension and 

Other Postretirement Plans – issued in September 2006 requires a bank 

to recognize in 2007 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. 

Purchased Impaired Loans and Debt Securities – Statement of Position 03­

3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. 

The SOP applies to loans and debt securities acquired in fiscal years 

beginning after December 15, 2004. In general, this Statement of 

Position applies to “purchased impaired loans and debt securities,” i.e., 

loans and debt securities that a bank has purchased, including those 

acquired in a purchase business combination, when it is probable, at 

the purchase date, that the bank will be unable to collect all contractually required payments receivable. Banks must follow Statement of 

Position 03-3 for Call Report purposes. The SOP does not apply to 

the loans that a bank has originated, prohibits “carrying over” or creation of valuation allowances in the initial accounting and any subsequent valuation allowances reflect only those losses incurred by the 

investor after acquisition. 

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

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

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

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

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

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

GNMA loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms. 

FDIC QUARTERLY 18 2008, VOLUME 2, NO. 1 
Quarterly Banking Profile 

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

Interpretation No. 45, Guarantor’s Accounting and Disclosure 

Requirements for Guarantees, Including Indirect Guarantees of 

Indebtedness of Others. This interpretation clarifies that a guarantor is 

required to recognize, at the inception of a guarantee (financial standby letters of credit, performance standby letters of credit), a liability 

for the fair value of the obligation undertaken in issuing the guarantee. Banks apply the initial recognition and measurement provisions 

of Interpretation No. 45 on a prospective basis to guarantees issued or 

modified after December 31, 2002, irrespective of the bank’s fiscal 

year end. A bank’s previous accounting for guarantees issued prior to 

January 1, 2003, is not revised. 

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

Consolidation of Variable Interest Entities, in January 2003 and revised it 

in December 2003. Generally, banks with variable interests in variable interest entities created after December 31, 2003, must consolidate them. The timing of consolidation varies with certain situations 

with application as late as 2005. The assets and liabilities of a consolidated variable interest entity are reported on a line-by-line basis 

according to the asset and liability categories shown on the bank’s balance sheet, as well as related income items. Most small banks are 

unlikely to have any “variable interests” in variable interest entities. 

FASB Statement No. 123 (Revised 2004) and Share-Based Payments 

– requires all entities to recognize compensation expense in an 

amount equal to the fair value of share-based payments, e.g., stock 

options and restricted stock, granted to employees. As of January 2006 

all banks must adopt FAS 123(R). The compensation cost is typically 

recognized over the vesting period with a corresponding credit to 

equity. The recording of the compensation cost also gives rise to a 

deferred tax asset. 

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

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

amortized each quarter. In addition companies are required to test for 

impairment of both goodwill and other intangibles once each fiscal 

year. The year 2002, the first fiscal year affected by this accounting 

change, has been designated a transitional year and the amount of initial impairments are to be recorded as extraordinary losses on a “net of 

tax” basis (and not as noninterest expense). Subsequent annual 

review of intangibles and goodwill impairment may require additional 

noninterest expense recognition. FASB Statement No. 147 clarifies 

that acquisitions of financial institutions (except transactions between 

two or more mutual enterprises), including branch acquisitions that 

meet the definition of a business combination, should be accounted 

for by the purchase method under FASB Statement No. 141. This 

accounting standard includes transition provisions that apply to 

unidentifiable intangible assets previously accounted for in accordance 

with FASB Statement No. 72. If the transaction (such as a branch 

acquisition) in which an unidentifiable intangible asset arose does not 

meet the definition of a business combination, this intangible asset is 

not be reported as “Goodwill” on the Call Report balance sheet. 

Rather, this unidentifiable intangible asset is reported as “Other intangible assets,” and must continue to be amortized and the amortization 

expense should be reported in the Call Report income statement. 

FASB Statement No. 133 Accounting for Derivative Instruments and Hedging 

Activities – All banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may 

be specifically designated as a “fair value hedge,” a “cash flow hedge,” 

or a hedge of a foreign currency exposure. The accounting for 

changes in the value of a derivative (gains and losses) depends on the 

intended use of the derivative, its resulting designation, and the effectiveness of the hedge. Derivatives held for purposes other than trading are reported as “other assets” (positive fair values) or “other liabilities” (negative fair values). For a fair value hedge, the gain or loss is 

recognized in earnings and “effectively” offsets loss or gain on the 

hedged item attributable to the risk being hedged. Any ineffectiveness of the hedge could result in a net gain or loss on the income 

statement. Accumulated net gains (losses) on cash flow hedges are 

recorded on the balance sheet as “accumulated other comprehensive 

income” and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of 

the derivative changes. FASB Statement No. 149, Amendment of 

Statement 133 on Derivative Instruments and Hedging Activities 

provides guidance on the circumstances in which a loan commitment 

must be accounted for as derivative. Under Statement No. 149, loan 

commitments that relate to the origination of mortgage loans that will 

be held for sale, commonly referred to as interest rate lock commitments, must be accounted for as derivatives on the balance sheet by 

the issuer of the commitment. 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository institutions, 

premises, fixed assets, direct investments in real estate, investment in 

unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities 

purchased with agreements to resell, fair market value of derivatives, 

and other assets. 

All other liabilities – bank's liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities. 

Assessment base –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 sellerprovided credit enhancements. 

Construction and development loans – includes loans for all property 

types under construction, as well as loans for land acquisition and 

development. 

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, less 

goodwill and other ineligible intangible assets. The amount of eligible 

intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations. 

Cost of funding earning assets – total interest expense paid on deposits 

and other borrowed money as a percentage of average earning assets. 

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance. 

Deposit Insurance Fund (DIF) – The Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF. 

Derivatives notional amount – The notional or contractual amounts of 

derivatives represent the level of involvement in the types of derivatives transactions and are not a quantification of market risk or credit 

risk. Notional amounts represent the amounts used to calculate contractual cash flows to be exchanged. 

FDIC QUARTERLY 19 2008, VOLUME 2, NO. 1 
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. Prior to June
 

30, 2000, the uninsured estimate is calculated as the sum of the excess
 

amounts in accounts over $100,000. Beginning June 30, 2000, the
 

amount of estimated uninsured deposits is adjusted to consider a
 

financial institution's own estimate of uninsured deposits when such
 

an estimate is reported. Beginning in 2006, the uninsured deposits
 

estimate also considers IRA accounts over $250,000.
 

Failed/assisted institutions – an institution fails when regulators take
 

control of the institution, placing the assets and liabilities into a
 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover
 

losses. An institution is defined as “assisted” when the institution
 

remains open and receives some insurance funds in order to continue
 

operating.
 

FHLB advances – all borrowings by FDIC insured institutions from the
 

Federal Home Loan Bank System (FHLB), as reported by Call Report
 

filers and by TFR filers.
 

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired. 

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, 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 ascend-


FDIC QUARTERLY 20 2008, VOLUME 2, NO. 1 
Quarterly Banking Profile 

ing order of supervisory concern. “Problem” institutions are those 

institutions with financial, operational, or managerial weaknesses that 

threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either a “4” or 

“5”. For all insured commercial banks and for insured savings banks 

for which the FDIC is the primary federal regulator, FDIC composite 

ratings are used. For all institutions whose primary federal regulator is 

the OTS, the OTS composite rating is 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: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

undercapitalized <6 or <3 or <3 and >2 

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

Risk Categories and Assessment Rate Schedule – The current risk categories and assessment rate schedule 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 

Supervisory Group 

Capital Group A B C 

1. Well Capitalized 

2. Adequately Capitalized 

3. Undercapitalized 

I 

5-7 bps II 

10 bps 

IV 

43 bps 

III 

28 bps 

III 

28 bps 

assessment rates (in basis points) for each risk category. Supervisory 

Group A generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions 

with a CAMELS composite rating of 3; and Supervisory Group C 

generally includes institutions with CAMELS composite ratings of 4 

or 5. For purposes of risk-based assessment capital groups, undercapitalized includes institutions that are significantly or critically undercapitalized. 

Assessment rates are 3 basis points above the base rate schedule. The 

FDIC may adjust rates up or down by 3 basis points from the base rate 

schedule without notice and comment, provided that any single 

adjustment from one quarter to the next cannot move rates more 

than 3 basis points. 

For most institutions in Risk Category I, the assessment rate assigned 

will be based on a combination of financial ratios and CAMELS component ratings. 

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 will be determined by weighting CAMELS component ratings 50 percent and long-term debt issuer ratings 50 percent. For all 

large Risk Category I institutions, additional risk factors will be 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 will 

be limited to no more than 1⁄2 basis point. 

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 will generally be due on the 30th day of 

the last month of the quarter following the assessment period. 

Supervisory rating changes will be effective for assessment purposes as 

of the examination transmittal date. For institutions with long-term 

debt issuer ratings, changes in ratings will be effective for assessment 

purposes as of the date the change was announced. 

Risk-weighted assets – assets adjusted for risk-based capital definitions 

which include on-balance-sheet as well as off-balance-sheet items 

multiplied by risk-weights that range from zero to 100 percent. A 

conversion factor is used to assign a balance sheet equivalent amount 

for selected off-balance-sheet accounts. 

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”, 

which are reported at amortized cost (book value), and securities designated as “available-for-sale”, reported at fair (market) value. 

Securities gains (losses) – realized gains (losses) on held-to-maturity and 

available-for-sale securities, before adjustments for income taxes. 

Thrift Financial Report (TFR) filers also include gains (losses) on the 

sales of assets held for sale. 

Seller’s interest in institution’s own securitizations – the reporting bank’s 

ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities 

issued to investors by the securitization structure. The principal 

amount of a seller’s interest is generally equal to the total principal 

amount of the pool of assets included in the securitization structure 

less the principal amount of those assets attributable to investors, i.e., 

in the form of securities issued to investors. 

Subchapter S Corporation – A Subchapter S corporation is treated as a 

pass-through entity, similar to a partnership, for federal income tax 

purposes. It is generally not subject to any federal income taxes at the 

FDIC QUARTERLY 21 2008, VOLUME 2, NO. 1 
corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings. 

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the 

assets of the financial institution. 

Unearned income & contra accounts – unearned income for Call Report 

filers only. 

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured by 

commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for sale, which are accounted for as derivatives 

on the balance sheet.) 

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. 

FDIC QUARTERLY 22 2008, VOLUME 2, NO. 1