QUARTERLY BANKING PROFILE Third Quarter 2019

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Net Income Declines 7.3 Percent From Third Quarter 2018 to $57.4 Billion, Due to Nonrecurring Events at 

Three Large Institutions

Revenue Increases 2.2 Percent From 12 Months Ago, Led by Noninterest Income

Net Interest Margins Decline From Year-Ago Levels to 3.35 Percent

Annual Loan and Lease Growth Rate Increases to 4.6 Percent

Noncurrent Rate Declines, While Net Charge-Off Rate Increases Modestly

Four New Banks Are Added in Third Quarter 2019

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

10

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30

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50

60

70

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

57.4

Chart 1

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

208.2

Chart 2

1 Methodology used for calculating industry participation counts consists of institutions existing in both reporting periods.

Net Income Declines 

7.3 Percent From Third 

Quarter 2018 to $57.4 Billion, 

Due to Nonrecurring Events at 

Three Large Institutions

The aggregate net income for the 5,256 FDIC-insured commercial banks and savings 

institutions totaled $57.4 billion during the three months ended September 30, a decline 

of $4.5 billion (7.3 percent) from third quarter 2018. The decline in quarterly net income 

was caused by nonrecurring events at three large institutions, which totaled $4.9 billion. 

These events resulted in higher noninterest expense and realized securities losses. Almost 

62 percent of banks reported year-over-year increases in net income, and only about 

4 percent of banks were unprofitable during the third quarter.1

 The average return on assets 

declined from 1.41 percent in third quarter 2018 to 1.25 percent in third quarter 2019.

Net Interest Income 

Increases 1.2 Percent 

From a Year Ago

Net interest income totaled $138.8 billion in the third quarter, an increase of $1.7 billion 

(1.2 percent) from a year ago, the lowest annual growth rate since fourth quarter 2014. 

Slightly more than two-thirds of all banks (70.9 percent) reported year-over-year increases 

in net interest income. Net interest margin (NIM) for the banking industry declined from 

3.45 percent in third quarter 2018 to 3.35 percent in third quarter 2019. The slowdown 

in NIM was broad-based and declined for all five asset groups featured in the Quarterly 

Banking Profile. For all size groups, the decline was caused by increases to funding costs 

exceeding the rise in yields on earning assets.
2019 • Volume 1 3 • Number 4

2 FDIC QUARTERLY

Loan-Loss Provisions 

Increase but Remain 

Relatively Low

Banks allocated $13.9 billion in loan-loss provisions during the third quarter, an increase of 

$2 billion (16.9 percent) from a year ago. The increase in loan-loss provisions was not broadbased, as less than 40 percent of all banks (38.1 percent) reported annual growth. Loan-loss 

provisions as a percentage of net operating revenue was 6.7 percent during the third quarter, 

with the annual increase primarily at banks with assets greater than $250 billion.

Noninterest Income 

Increases 4.3 Percent 

From a Year Ago

Noninterest income rose by $2.8 billion (4.3 percent) from a year ago, as almost two-thirds of 

all banks (63.9 percent) reported increases. The year-over-year growth in noninterest income 

was attributable to higher other noninterest income (up $3.6 billion, or 11.8 percent) and net 

gains on loan sales (up $1.1 billion, or 34 percent).2

Noninterest Expense 

Increases 5.7 Percent From 

Third Quarter 2018

Noninterest expense totaled $120.1 billion during the three months ended September 30, 

up $6.4 billion (5.7 percent) from third quarter 2018. The annual increase was broad-based, 

with 70.8 percent of all banks contributing to the growth. Salary and employee benefits 

(up $2.7 billion, or 5 percent), goodwill impairment charges (up $2 billion from a low base 

$7.2 million), and other noninterest expense (up $1.7 billion, or 3.6 percent) led the increase. 

The average assets per employee increased from $8.5 million in third quarter 2018 to 

$8.9 million.

Net Charge-Offs Increase 

by $1.9 Billion From 

12 Months Ago

Banks charged off $13.1 billion in uncollectable loans during the third quarter, an increase 

of $1.9 billion (17.2 percent) from a year earlier. This was the largest annual dollar increase 

since first quarter 2010, but the charge-off rate remained low. The largest contributors to the 

annual increase in net charge-offs were the commercial and industrial (C&I) loan portfolio 

(up $1 billion, or 78.7 percent) and the credit card portfolio (up $513.7 million, or 6.7 percent). 

The average net charge-off rate increased by 6 basis points from third quarter 2018 to 

0.51 percent. The C&I net charge-off rate increased to 0.41 percent from 0.25 percent a year 

earlier, but remains below the recent high of 0.50 percent reported in fourth quarter 2016.

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

Quarterly Net Charge-O Rate

Noncurrent Rate

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 3

Source: FDIC.

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

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio

All FDIC-Insured Institutions

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300

350

400

450

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40

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80

100

120

140

160

180

 Loan-Loss Reserves ($) 

 Noncurrent Loans ($)

 Noncurrents Adjusted for GNMA Guaranteed Loans ($)

 Coverage Ratio (%) 

 Coverage Adjusted for GNMA Guaranteed Loans (%)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 4

2 Other noninterest income includes service charges, commissions, and fees for services such as the rental of safe deposit boxes, 

notarization of forms and documents, and the use of ATMs. The category also includes interchange fees earned from bank card 

and credit card transactions and credits resulting from litigation or other claims.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Noncurrent Loan Rate 

Remains Steady at 

0.92 Percent

Noncurrent loan balances (90 days or more past due or in nonaccrual status) were almost 

unchanged from the previous quarter (down $184.8 million, or 0.2 percent). The average noncurrent rate remained stable at 0.92 percent. About half of all banks (47.6 percent) 

reported declines in noncurrent loan balances. Increases in noncurrent credit card 

balances (up $940.9 million, or 8.1 percent) and noncurrent C&I loans (up $263.5 million, 

or 1.5 percent) were partially offset by lower noncurrent residential mortgages (down 

$407.4 million, or 1 percent).

Loan-Loss Reserves Increase 

Modestly From Second 

Quarter 2019

Banks increased loan-loss reserves (up $251.6 million, or 0.2 percent) from the previous 

quarter, as quarterly loan-loss provisions of $13.9 billion exceeded quarterly net charge-offs 

of $13.1 billion. Almost two-thirds of all banks (62.1 percent) reported quarterly increases 

in loan-loss reserves. At banks that itemize their loan-loss reserves, which are banks with 

total assets of $1 billion or more and represent 90 percent of total industry loan-loss reserves, 

residential real estate reserves fell by $686 million (6.2 percent) and commercial real estate 

reserves declined by $547.2 million (3.8 percent). Loan-loss reserves for credit card portfolios 

increased by $618.3 million (1.5 percent) from the previous quarter.

Total Assets Increase 

1.2 Percent From the 

Previous Quarter

Total assets rose by $213.2 billion (1.2 percent) from second quarter 2019. Banks increased 

securities holdings by $156.9 billion (4.2 percent), as mortgage-backed securities increased 

by $86.8 billion (3.8 percent) and holdings of U.S. Treasury securities rose by $74.2 billion 

(13.5 percent). Unrealized gains on available-for-sale securities increased by $10 billion 

(44.6 percent), while unrealized gains on held-to-maturity securities increased by $7.6 billion 

(58.1 percent).

Loan Balances Increase 

From the Previous Quarter 

and a Year Ago

Total loan and lease balances increased by $99.5 billion (1 percent) from the previous quarter. Almost two-thirds of all banks (63.5 percent) grew loan and lease balances from the 

second quarter. All major loan categories reported quarterly aggregate increases, led by 

consumer loans (up $31.3 billion, or 1.8 percent), residential mortgage loans (up $22 billion, 

or 1 percent), and nonfarm nonresidential loans (up $18 billion, or 1.2 percent).3 Over the 

past 12 months, total loan and lease balances increased by $460.2 billion (4.6 percent), 

slightly above the 4.5 percent annual growth rate reported in second quarter 2019. C&I loans 

reported the largest dollar increase from third quarter 2018 (up $131.9 billion, or 6.3 percent).

Held-to-Maturity Securities

Available-for-Sale Securities

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-100

-80

-60

-40

-20

 0

20

40

60

80

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

53

Chart 5

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Source: FDIC.

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

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

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

balances for the quarter absent this change in accounting standards.

$ Billions Percent

-300

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-8

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8

Quarterly Change (Le Axis)

12-Month Growth Rate (Right Axis)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 6

3 Consumer loans include credit card balances. 
2019 • Volume 1 3 • Number 4

4 FDIC QUARTERLY

Deposits Increase 

1.7 Percent From 

Second Quarter 2019

Total deposit balances rose by $235.9 billion (1.7 percent) from the second quarter, as 

deposits in domestic offices increased by $232.1 billion (1.8 percent) and deposits in foreign 

offices grew by $3.8 billion (0.3 percent). Interest-bearing accounts grew by $165.3 billion 

(1.7 percent) and noninterest-bearing accounts rose by $66.8 billion (2.2 percent). Nondeposit liabilities declined by $26.2 billion (1.2 percent) from the previous quarter, as Federal 

Home Loan Bank advances fell by $34.4 billion (6.5 percent) and other secured borrowings 

declined by $16.5 billion (7.5 percent).4

Equity Capital Remains 

Stable From Second 

Quarter 2019

Equity capital increased by $3.5 billion (0.2 percent) from the previous quarter. Declared 

dividends of $47.8 billion were below quarterly net income of $57.4 billion during the third 

quarter. Fifteen insured institutions with $2 billion in total assets were below the requirements for the well-capitalized category as defined for Prompt Corrective Action purposes.

Four New Banks Are Added 

in Third Quarter 2019

The number of FDIC-insured commercial banks and savings institutions fell from 5,303 to 

5,256 during the third quarter. Four new banks were added, 46 institutions were absorbed 

by mergers, and no banks failed. The number of institutions on the FDIC’s “Problem Bank 

List” fell from 56 to 55 at the end of third quarter. The list now contains the fewest institutions since first quarter 2007. Total assets of problem banks rose slightly from $48.5 billion 

to $48.8 billion.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

Source: FDIC.

Number

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

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1,000

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Assets ($ Billions)

Number of Problem Banks

Assets of Problem Banks 

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 7

4 Other noninterest expense includes retainer fees, legal fees, data processing expense, and accounting and auditing expenses. 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2019** 2018** 2018 2017 2016 2015 2014

Return on assets (%) 1.33 1.35 1.35 0.97 1.04 1.04 1.01

Return on equity (%) 11.67 12.03 11.98 8.60 9.27 9.29 9.01

Core capital (leverage) ratio (%) 9.68 9.77 9.70 9.63 9.48 9.59 9.44

Noncurrent assets plus other real estate owned to assets (%) 0.56 0.62 0.60 0.73 0.86 0.97 1.20

Net charge-offs to loans (%) 0.50 0.48 0.48 0.50 0.47 0.44 0.49

Asset growth rate (%) 4.57 2.50 3.03 3.79 5.09 2.66 5.59

Net interest margin (%) 3.38 3.38 3.40 3.25 3.13 3.07 3.14

Net operating income growth (%) 1.04 28.70 45.45 -3.27 4.43 7.11 -0.73

Number of institutions reporting 5,256 5,477 5,406 5,670 5,913 6,182 6,509

Commercial banks 4,587 4,774 4,715 4,918 5,112 5,338 5,607

Savings institutions 669 703 691 752 801 844 902

Percentage of unprofitable institutions (%) 3.46 3.40 3.42 5.61 4.48 4.82 6.27

Number of problem institutions 55 71 60 95 123 183 291

Assets of problem institutions (in billions) $49 $53 $48 $14 $28 $47 $87

Number of failed institutions 1 0 0 8 5 8 18

* Excludes insured branches of foreign banks (IBAs).

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

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

(dollar figures in millions)  3rd Quarter

2019

2nd Quarter

2019

3rd Quarter

2018

%Change 

18Q3-19Q3

Number of institutions reporting 5,256 5,303 5,477 -4.0

Total employees (full-time equivalent) 2,065,576 2,069,198 2,070,600 -0.2

CONDITION DATA

Total assets $18,480,422 $18,267,203 $17,672,832 4.6

Loans secured by real estate 5,002,351 4,963,906 4,862,796 2.9

 1-4 Family residential mortgages 2,182,308 2,160,308 2,112,199 3.3

 Nonfarm nonresidential 1,491,704 1,473,730 1,426,248 4.6

 Construction and development 359,843 357,222 351,299 2.4

 Home equity lines 349,801 358,451 381,638 -8.3

Commercial & industrial loans 2,215,838 2,214,560 2,083,943 6.3

Loans to individuals 1,779,331 1,747,993 1,690,648 5.3

 Credit cards 892,881 881,143 856,327 4.3

Farm loans 80,288 81,607 82,345 -2.5

Other loans & leases 1,323,677 1,293,967 1,221,644 8.4

Less: Unearned income 2,275 2,347 2,330 -2.4

Total loans & leases 10,399,209 10,299,686 9,939,046 4.6

Less: Reserve for losses 125,156 124,905 123,727 1.2

Net loans and leases 10,274,053 10,174,782 9,815,319 4.7

Securities 3,936,058 3,779,175 3,630,098 8.4

Other real estate owned 6,189 6,365 7,187 -13.9

Goodwill and other intangibles 394,024 397,156 397,116 -0.8

All other assets 3,870,098 3,909,725 3,823,113 1.2

Total liabilities and capital 18,480,422 18,267,203 17,672,832 4.6

Deposits 14,275,592 14,039,671 13,573,628 5.2

 Domestic office deposits 12,979,742 12,747,614 12,321,793 5.3

 Foreign office deposits 1,295,850 1,292,057 1,251,835 3.5

Other borrowed funds 1,460,169 1,496,825 1,497,303 -2.5

Subordinated debt 69,325 68,946 68,844 0.7

All other liabilities 574,108 564,069 535,741 7.2

Total equity capital (includes minority interests) 2,101,228 2,097,692 1,997,316 5.2

 Bank equity capital 2,098,110 2,094,579 1,993,823 5.2

Loans and leases 30-89 days past due 64,013 60,731 63,198 1.3

Noncurrent loans and leases 95,543 95,728 101,255 -5.6

Restructured loans and leases 51,069 52,891 56,382 -9.4

Mortgage-backed securities 2,369,458 2,282,677 2,157,479 9.8

Earning assets 16,685,260 16,485,294 15,959,314 4.6

FHLB Advances 498,867 533,284 553,364 -9.9

Unused loan commitments 8,133,004 8,049,055 7,842,636 3.7

Trust assets 21,365,786 20,621,589 20,428,706 4.6

Assets securitized and sold 539,466 550,767 625,982 -13.8

Notional amount of derivatives 203,447,068 207,258,169 209,769,422 -3.0

INCOME DATA

First Three 

Quarters 2019

First Three 

Quarters 2018 %Change

3rd Quarter 

2019

3rd Quarter 

2018

%Change 

18Q3-19Q3

Total interest income $539,435 $484,959 11.2 $180,844 $169,022 7.0

Total interest expense 123,508 83,176 48.5 42,081 31,927 31.8

Net interest income 415,927 401,783 3.5 138,764 137,095 1.2

Provision for loan and lease losses 40,600 35,976 12.9 13,872 11,863 16.9

Total noninterest income 200,824 201,832 -0.5 69,462 66,627 4.3

Total noninterest expense 349,501 342,143 2.2 120,102 113,671 5.7

Securities gains (losses) 1,044 557 87.5 -956 130 -832.7

Applicable income taxes 47,361 47,980 -1.3 15,878 16,332 -2.8

Extraordinary gains, net* 167 -227 N/M -2 -39 N/M

Total net income (includes minority interests) 180,501 177,844 1.5 57,416 61,947 -7.3

 Bank net income 180,309 177,626 1.5 57,354 61,877 -7.3

Net charge-offs 38,545 34,894 10.5 13,088 11,164 17.2

Cash dividends 134,884 112,150 20.3 47,757 43,843 8.9

Retained earnings 45,425 65,476 -30.6 9,597 18,034 -46.8

Net operating income 179,474 177,625 1.0 58,173 61,883 -6.0

* See Notes to Users for explanation. N/M - Not Meaningful
2019 • Volume 1 3 • Number 4

6 FDIC QUARTERLY

TABLE III-A. Third Quarter 2019, All FDIC-Insured Institutions

Asset Concentration Groups*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,256 12 5 1,324 2,753 393 68 217 434 50

Commercial banks 4,587 11 5 1,312 2,481 112 47 196 380 43

Savings institutions 669 1 0 12 272 281 21 21 54 7

Total assets (in billions) $18,480.4 $521.8 $4,509.3 $285.2 $6,672.2 $386.1 $225.8 $38.2 $76.9 $5,764.9

Commercial banks 17,308.0 429.8 4,509.3 278.9 6,237.3 113.0 114.3 34.6 64.1 5,526.6

Savings institutions 1,172.4 91.9 0.0 6.3 434.9 273.0 111.6 3.7 12.8 238.3

Total deposits (in billions) 14,275.6 351.7 3,253.2 235.4 5,227.9 301.0 184.7 30.0 64.2 4,627.8

Commercial banks 13,346.9 283.4 3,253.2 232.2 4,904.1 87.5 91.6 27.7 54.0 4,413.3

Savings institutions 928.7 68.3 0.0 3.2 323.8 213.5 93.0 2.3 10.2 214.6

Bank net income (in millions) 57,354 4,470 13,871 1,028 18,931 1,237 855 322 237 16,404

Commercial banks 53,096 3,544 13,871 974 17,892 553 479 136 206 15,441

Savings institutions 4,258 926 0 53 1,039 683 376 186 31 963

Performance Ratios (annualized, %)

Yield on earning assets 4.37 13.29 3.79 4.87 4.47 3.80 5.31 3.52 4.39 3.81

Cost of funding earning assets 1.02 2.30 1.03 1.00 1.01 0.98 1.04 0.62 0.71 0.90

Net interest margin 3.35 10.99 2.76 3.88 3.46 2.83 4.27 2.89 3.68 2.92

Noninterest income to assets 1.51 4.49 1.86 0.70 1.09 1.51 1.50 7.62 1.08 1.47

Noninterest expense to assets 2.62 7.21 2.42 2.56 2.61 2.55 3.12 6.06 3.05 2.32

Loan and lease loss provision to assets 0.30 3.29 0.29 0.15 0.19 0.02 0.66 0.06 0.08 0.19

Net operating income to assets 1.27 3.43 1.21 1.42 1.13 1.26 1.36 3.33 1.22 1.25

Pretax return on assets 1.60 4.48 1.59 1.65 1.46 1.66 2.00 4.25 1.40 1.46

Return on assets 1.25 3.43 1.23 1.45 1.15 1.30 1.53 3.42 1.24 1.14

Return on equity 10.96 27.35 11.98 12.21 9.42 11.62 13.93 18.88 9.45 10.20

Net charge-offs to loans and leases 0.51 3.94 0.71 0.15 0.24 0.03 0.78 0.17 0.14 0.37

Loan and lease loss provision to 

net charge-offs 105.99 102.09 106.95 147.15 109.68 119.55 121.47 119.93 99.74 104.26

Efficiency ratio 56.23 47.67 56.27 58.84 58.69 60.48 54.99 58.91 67.43 55.57

% of unprofitable institutions 4.13 0.00 0.00 3.55 3.78 7.89 0.00 9.22 3.23 2.00

% of institutions with earnings gains 62.14 50.00 60.00 58.69 66.36 53.18 69.12 52.07 59.68 50.00

Structural Changes

New reporters 4 0 0 0 0 0 0 4 0 0

Institutions absorbed by mergers 46 0 0 13 31 0 0 0 1 1

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

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%) 2018 1.41 3.09 1.21 1.42 1.31 1.22 1.38 3.82 1.22 1.48

 2016 1.10 2.26 0.90 1.29 1.01 1.03 1.02 2.68 0.95 1.21

 2014 1.01 3.10 0.79 1.28 0.95 0.83 1.18 2.12 0.92 0.96

Net charge-offs to loans & leases (%) 2018 0.45 3.70 0.44 0.13 0.17 0.01 0.69 0.23 0.14 0.37

 2016 0.44 3.11 0.48 0.09 0.22 0.04 0.66 0.16 0.19 0.41

 2014 0.46 2.62 0.68 0.09 0.25 0.15 0.57 0.30 0.24 0.26

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

FDIC QUARTERLY 7

TABLE III-A. Third Quarter 2019, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,256 1,206 3,247 660 134 9 635 603 1,132 1,343 1,157 386

Commercial banks 4,587 1,068 2,854 539 117 9 333 550 971 1,298 1,085 350

Savings institutions 669 138 393 121 17 0 302 53 161 45 72 36

Total assets (in billions) $18,480.4 $71.6 $1,083.1 $1,722.0 $6,435.6 $9,168.1 $3,357.4 $3,784.3 $4,240.1 $3,797.9 $1,193.3 $2,107.4

Commercial banks 17,308.0 63.6 936.2 1,405.8 5,734.3 9,168.1 2,953.2 3,682.5 4,135.2 3,752.3 1,039.3 1,745.5

Savings institutions 1,172.4 8.0 146.9 316.3 701.2 0.0 404.2 101.8 104.9 45.6 154.0 361.9

Total deposits (in billions) 14,275.6 59.0 900.9 1,387.8 4,949.9 6,977.9 2,596.7 2,975.1 3,091.3 2,974.5 961.0 1,677.0

Commercial banks 13,346.9 53.1 784.7 1,144.2 4,387.0 6,977.9 2,291.7 2,896.6 3,015.2 2,940.2 839.6 1,363.5

Savings institutions 928.7 5.9 116.3 243.6 562.9 0.0 305.0 78.5 76.0 34.3 121.5 313.5

Bank net income (in millions) 57,354 185 3,618 5,940 20,324 27,287 9,197 11,092 14,302 10,836 4,263 7,664

Commercial banks 53,096 161 3,134 5,105 17,410 27,287 8,285 10,863 13,838 10,704 3,767 5,641

Savings institutions 4,258 24 484 835 2,914 0 912 230 464 132 497 2,023

Performance Ratios (annualized, %)

Yield on earning assets 4.37 4.67 4.79 4.79 4.83 3.91 4.32 4.37 3.92 4.31 4.77 5.18

Cost of funding earning assets 1.02 0.79 0.94 1.03 1.14 0.94 1.23 0.90 0.91 1.06 0.90 1.09

Net interest margin 3.35 3.87 3.86 3.76 3.69 2.97 3.09 3.46 3.01 3.26 3.87 4.09

Noninterest income to assets 1.51 1.41 1.33 1.22 1.45 1.63 1.30 1.44 1.89 1.31 1.38 1.67

Noninterest expense to assets 2.62 3.68 3.23 2.79 2.73 2.43 2.41 2.54 2.62 2.53 3.00 3.03

Loan and lease loss provision to assets 0.30 0.18 0.15 0.18 0.43 0.25 0.29 0.31 0.23 0.29 0.21 0.53

Net operating income to assets 1.27 1.00 1.32 1.37 1.25 1.26 1.09 1.35 1.34 1.12 1.40 1.44

Pretax return on assets 1.60 1.18 1.58 1.76 1.67 1.52 1.40 1.49 1.73 1.47 1.76 1.99

Return on assets 1.25 1.04 1.35 1.39 1.28 1.19 1.10 1.18 1.36 1.15 1.45 1.47

Return on equity 10.96 7.19 11.24 11.52 10.60 11.13 9.16 9.64 12.31 11.21 11.92 12.94

Net charge-offs to loans and leases 0.51 0.25 0.13 0.21 0.67 0.51 0.47 0.53 0.43 0.51 0.26 0.79

Loan and lease loss provision to 

net charge-offs 105.99 120.74 165.44 119.86 103.39 104.78 109.10 99.29 105.77 108.54 116.55 106.48

Efficiency ratio 56.23 73.42 65.30 58.76 53.55 56.43 58.37 54.65 56.95 58.93 60.43 48.96

% of unprofitable institutions 4.13 9.87 2.77 0.76 2.24 0.00 3.78 6.14 4.68 2.46 3.72 6.99

% of institutions with earnings gains 62.14 54.64 63.50 70.45 56.72 44.44 56.69 63.18 65.19 62.25 61.28 62.69

Structural Changes

New reporters 4 3 1 0 0 0 1 2 0 0 0 1

Institutions absorbed by mergers 46 17 22 5 2 0 5 7 8 16 8 2

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

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%) 2018 1.41 1.09 1.28 1.42 1.50 1.36 1.28 1.48 1.29 1.37 1.49 1.74

 2016 1.10 0.97 1.13 1.10 1.09 1.09 0.87 1.25 1.00 1.09 1.16 1.40

 2014 1.01 0.88 1.04 1.12 1.06 0.95 0.87 0.89 0.82 1.14 1.17 1.61

Net charge-offs to loans & leases (%) 2018 0.45 0.19 0.13 0.19 0.65 0.41 0.55 0.53 0.19 0.48 0.24 0.68

 2016 0.44 0.15 0.12 0.23 0.62 0.43 0.50 0.51 0.27 0.47 0.28 0.58

 2014 0.46 0.22 0.18 0.25 0.66 0.41 0.68 0.35 0.32 0.55 0.21 0.45

* See Table V-A (page 11) for explanations.
2019 • Volume 1 3 • Number 4

8 FDIC QUARTERLY

TABLE IV-A. First Three Quarters 2019, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,256 12 5 1,324 2,753 393 68 217 434 50

Commercial banks 4,587 11 5 1,312 2,481 112 47 196 380 43

Savings institutions 669 1 0 12 272 281 21 21 54 7

Total assets (in billions) $18,480.4 $521.8 $4,509.3 $285.2 $6,672.2 $386.1 $225.8 $38.2 $76.9 $5,764.9

Commercial banks 17,308.0 429.8 4,509.3 278.9 6,237.3 113.0 114.3 34.6 64.1 5,526.6

Savings institutions 1,172.4 91.9 0.0 6.3 434.9 273.0 111.6 3.7 12.8 238.3

Total deposits (in billions) 14,275.6 351.7 3,253.2 235.4 5,227.9 301.0 184.7 30.0 64.2 4,627.8

Commercial banks 13,346.9 283.4 3,253.2 232.2 4,904.1 87.5 91.6 27.7 54.0 4,413.3

Savings institutions 928.7 68.3 0.0 3.2 323.8 213.5 93.0 2.3 10.2 214.6

Bank net income (in millions) 180,309 12,921 41,722 2,860 58,386 3,395 2,368 925 678 57,053

Commercial banks 168,305 10,374 41,722 2,757 55,381 1,503 1,487 359 584 54,138

Savings institutions 12,004 2,547 0 103 3,005 1,892 881 567 94 2,915

Performance Ratios (annualized, %)

Yield on earning assets 4.39 13.02 3.81 4.79 4.49 3.81 5.26 3.53 4.33 3.88

Cost of funding earning assets 1.01 2.32 1.03 0.95 1.00 0.95 1.01 0.61 0.68 0.88

Net interest margin 3.38 10.70 2.78 3.84 3.49 2.86 4.25 2.92 3.65 2.99

Noninterest income to assets 1.48 4.42 1.82 0.65 1.07 1.31 1.33 7.13 1.01 1.43

Noninterest expense to assets 2.57 7.08 2.44 2.55 2.56 2.48 2.99 5.82 3.01 2.23

Loan and lease loss provision to assets 0.30 3.29 0.28 0.16 0.18 0.02 0.60 0.04 0.08 0.20

Net operating income to assets 1.32 3.30 1.22 1.34 1.19 1.19 1.36 3.20 1.16 1.36

Pretax return on assets 1.67 4.27 1.58 1.54 1.52 1.54 1.90 4.09 1.35 1.69

Return on assets 1.33 3.30 1.24 1.36 1.21 1.20 1.43 3.32 1.19 1.34

Return on equity 11.67 26.69 12.02 11.67 9.96 10.88 13.31 18.72 9.28 11.95

Net charge-offs to loans and leases 0.50 4.19 0.71 0.15 0.20 0.02 0.79 0.12 0.12 0.38

Loan and lease loss provision to 

net charge-offs 105.33 96.79 101.38 159.51 125.72 117.27 110.18 125.89 120.77 104.64

Efficiency ratio 55.86 47.89 56.80 60.01 59.04 61.30 54.25 59.30 68.06 53.29

% of unprofitable institutions 3.46 0.00 0.00 2.34 3.31 8.40 1.47 7.83 2.07 0.00

% of institutions with earnings gains 64.23 58.33 40.00 62.16 66.98 54.20 57.35 59.91 66.59 58.00

Condition Ratios (%)

Earning assets to total assets 90.29 95.40 87.37 93.20 90.66 95.00 95.20 91.63 93.01 90.97

Loss allowance to:

Loans and leases 1.20 4.47 1.44 1.40 0.96 0.61 1.07 1.46 1.21 1.01

Noncurrent loans and leases 130.99 276.58 164.24 129.54 125.61 32.19 158.46 118.69 127.35 100.48

Noncurrent assets plus

other real estate owned to assets 0.56 1.33 0.36 0.86 0.60 1.15 0.48 0.40 0.68 0.54

Equity capital ratio 11.35 12.72 10.14 11.94 12.18 11.03 11.05 18.10 13.19 11.16

Core capital (leverage) ratio 9.68 12.31 8.73 11.40 10.19 10.79 11.04 17.24 12.89 9.28

Common equity tier 1 capital ratio 13.25 14.34 13.61 14.90 12.29 21.53 17.75 37.72 21.66 13.31

Tier 1 risk-based capital ratio 13.33 14.48 13.69 14.91 12.37 21.54 17.97 37.73 21.68 13.38

Total risk-based capital ratio 14.67 16.39 15.22 16.02 13.58 22.25 18.99 38.56 22.73 14.76

Net loans and leases to deposits 71.97 116.66 51.27 82.05 88.99 74.65 84.18 34.13 68.29 63.02

Net loans to total assets 55.59 78.63 36.99 67.71 69.72 58.19 68.83 26.74 56.99 50.59

Domestic deposits to total assets 70.24 66.45 47.92 82.52 77.99 77.68 81.76 78.37 83.45 77.27

Structural Changes

New reporters 10 0 0 0 1 0 0 8 1 0

Institutions absorbed by mergers 149 0 1 31 109 1 1 1 4 1

Failed institutions 1 0 0 1 0 0 0 0 0 0

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions 2018 5,477 12 5 1,366 2,878 408 70 233 453 52

 2016 5,980 13 5 1,461 3,012 478 62 304 585 60

 2014 6,589 16 3 1,501 3,284 570 50 371 729 65

Total assets (in billions) 2018 $17,672.8 $640.0 $4,245.9 $285.2 $6,232.8 $352.0 $212.8 $36.0 $78.0 $5,590.2

 2016 16,766.6 500.8 4,145.8 273.5 5,678.8 386.7 205.5 54.7 103.3 5,417.6

 2014 15,348.7 605.5 3,690.9 254.1 5,186.3 435.5 167.5 60.5 128.5 4,819.9

Return on assets (%) 2018 1.35 2.83 1.22 1.35 1.27 1.12 1.46 3.82 1.16 1.39

 2016 1.04 2.30 0.90 1.24 0.99 0.98 1.01 2.57 0.96 1.07

 2014 1.03 3.20 0.81 1.20 0.97 0.86 1.10 2.08 0.89 0.97

Net charge-offs to loans & leases (%) 2018 0.48 3.90 0.50 0.13 0.17 0.01 0.74 0.15 0.13 0.38

 2016 0.45 3.21 0.53 0.11 0.20 0.05 0.65 0.16 0.18 0.42

 2014 0.49 2.86 0.73 0.09 0.26 0.19 0.62 0.24 0.23 0.29

Noncurrent assets plus 

OREO to assets (%) 2018 0.62 1.13 0.39 0.89 0.65 1.39 0.49 0.46 0.77 0.65

 2016 0.88 1.01 0.62 0.78 0.88 1.78 0.87 0.59 1.00 1.01

 2014 1.29 0.82 0.90 0.88 1.30 2.27 1.10 0.75 1.46 1.58

Equity capital ratio (%) 2018 11.28 15.27 9.98 11.32 11.96 10.99 10.67 16.87 12.05 11.06

 2016 11.21 15.16 9.79 11.61 11.98 11.32 10.00 15.49 12.01 11.10

 2014 11.20 14.90 9.50 11.40 11.97 12.02 9.96 14.30 11.91 11.09

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

FDIC QUARTERLY 9

TABLE IV-A. First Three Quarters 2019, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,256 1,206 3,247 660 134 9 635 603 1,132 1,343 1,157 386

Commercial banks 4,587 1,068 2,854 539 117 9 333 550 971 1,298 1,085 350

Savings institutions 669 138 393 121 17 0 302 53 161 45 72 36

Total assets (in billions) $18,480.4 $71.6 $1,083.1 $1,722.0 $6,435.6 $9,168.1 $3,357.4 $3,784.3 $4,240.1 $3,797.9 $1,193.3 $2,107.4

Commercial banks 17,308.0 63.6 936.2 1,405.8 5,734.3 9,168.1 2,953.2 3,682.5 4,135.2 3,752.3 1,039.3 1,745.5

Savings institutions 1,172.4 8.0 146.9 316.3 701.2 0.0 404.2 101.8 104.9 45.6 154.0 361.9

Total deposits (in billions) 14,275.6 59.0 900.9 1,387.8 4,949.9 6,977.9 2,596.7 2,975.1 3,091.3 2,974.5 961.0 1,677.0

Commercial banks 13,346.9 53.1 784.7 1,144.2 4,387.0 6,977.9 2,291.7 2,896.6 3,015.2 2,940.2 839.6 1,363.5

Savings institutions 928.7 5.9 116.3 243.6 562.9 0.0 305.0 78.5 76.0 34.3 121.5 313.5

Bank net income (in millions) 180,309 539 10,409 16,515 64,276 88,569 27,485 37,348 42,703 35,153 12,067 25,553

Commercial banks 168,305 468 9,002 14,159 56,106 88,569 24,864 36,748 41,473 34,764 10,784 19,671

Savings institutions 12,004 71 1,407 2,356 8,171 0 2,621 600 1,230 389 1,282 5,882

Performance Ratios (annualized, %)

Yield on earning assets 4.39 4.57 4.74 4.76 4.83 3.96 4.34 4.42 3.91 4.37 4.77 5.15

Cost of funding earning assets 1.01 0.75 0.90 1.00 1.13 0.93 1.20 0.89 0.91 1.05 0.88 1.08

Net interest margin 3.38 3.82 3.84 3.75 3.71 3.03 3.14 3.53 3.01 3.32 3.89 4.07

Noninterest income to assets 1.48 1.36 1.23 1.13 1.44 1.59 1.29 1.43 1.83 1.26 1.27 1.63

Noninterest expense to assets 2.57 3.63 3.19 2.80 2.65 2.39 2.44 2.52 2.61 2.44 2.97 2.81

Loan and lease loss provision to assets 0.30 0.15 0.14 0.18 0.43 0.25 0.29 0.33 0.22 0.29 0.19 0.50

Net operating income to assets 1.32 0.98 1.27 1.29 1.36 1.31 1.10 1.39 1.34 1.23 1.37 1.62

Pretax return on assets 1.67 1.16 1.53 1.66 1.77 1.63 1.42 1.69 1.70 1.57 1.69 2.17

Return on assets 1.33 1.01 1.31 1.32 1.37 1.30 1.12 1.34 1.35 1.26 1.39 1.65

Return on equity 11.67 7.15 11.12 11.00 11.43 12.12 9.30 11.01 12.38 12.26 11.60 14.68

Net charge-offs to loans and leases 0.50 0.18 0.11 0.20 0.66 0.51 0.46 0.55 0.41 0.52 0.23 0.78

Loan and lease loss provision to 

net charge-offs 105.33 136.85 176.90 126.89 103.55 102.38 110.14 103.10 103.68 105.80 122.64 101.83

Efficiency ratio 55.86 73.95 66.05 60.33 53.29 55.47 58.40 54.08 57.42 56.70 60.75 49.25

% of unprofitable institutions 3.46 9.04 2.16 0.30 0.75 0.00 3.62 5.14 3.80 2.16 3.03 5.44

% of institutions with earnings gains 64.23 57.46 65.35 70.45 67.91 55.56 60.16 66.67 66.34 61.95 64.56 67.88

Condition Ratios (%)

Earning assets to total assets 90.29 92.63 93.16 92.31 90.95 89.08 89.92 89.78 88.86 90.46 91.17 93.84

Loss allowance to:

Loans and leases 1.20 1.39 1.24 1.08 1.22 1.22 1.14 1.17 1.20 1.26 1.01 1.39

Noncurrent loans and leases 130.99 106.58 151.36 147.00 131.14 124.87 126.01 127.45 132.12 115.27 100.51 216.34

Noncurrent assets plus

other real estate owned to assets 0.56 0.98 0.73 0.61 0.60 0.49 0.54 0.57 0.52 0.61 0.76 0.42

Equity capital ratio 11.35 14.47 12.03 12.12 12.04 10.63 12.01 12.21 10.88 10.22 12.11 11.34

Core capital (leverage) ratio 9.68 14.13 11.67 11.09 10.20 8.78 10.16 9.62 9.25 9.17 10.49 10.37

Common equity tier 1 capital ratio 13.25 22.58 16.01 14.23 13.00 12.82 13.58 12.96 13.16 12.68 13.29 14.45

Tier 1 risk-based capital ratio 13.33 22.60 16.04 14.24 13.15 12.85 13.62 13.06 13.20 12.77 13.38 14.56

Total risk-based capital ratio 14.67 23.66 17.11 15.20 14.46 14.34 14.90 14.30 14.53 14.56 14.39 15.59

Net loans and leases to deposits 71.97 71.70 81.90 87.76 79.72 62.05 72.02 72.97 68.87 67.42 82.06 78.11

Net loans to total assets 55.59 59.05 68.13 70.73 61.32 47.23 55.70 57.37 50.21 52.80 66.09 62.16

Domestic deposits to total assets 70.24 82.37 83.18 80.33 74.48 63.74 71.47 76.16 63.92 62.29 80.50 78.84

Structural Changes

New reporters 10 9 1 0 0 0 3 3 2 0 1 1

Institutions absorbed by mergers 149 36 85 22 6 0 24 20 31 38 26 10

Failed institutions 1 1 0 0 0 0 0 0 0 0 1 0

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions 2018 5,477 1,335 3,369 635 129 9 671 633 1,180 1,397 1,193 403

 2016 5,980 1,589 3,656 621 104 10 731 731 1,287 1,500 1,280 451

 2014 6,589 1,940 3,966 575 100 8 816 823 1,427 1,614 1,387 522

Total assets (in billions) 2018 $17,672.8 $79.2 $1,107.7 $1,694.4 $6,036.1 $8,755.5 $3,275.4 $3,654.9 $3,996.3 $3,641.5 $1,119.5 $1,985.3

 2016 16,766.6 94.1 1,171.9 1,741.0 4,983.0 8,776.7 3,158.4 3,478.0 3,785.4 3,644.3 1,001.6 1,698.9

 2014 15,348.7 114.2 1,227.5 1,531.3 4,795.9 7,679.9 3,045.0 3,134.2 3,503.2 3,363.6 884.9 1,417.9

Return on assets (%) 2018 1.35 1.05 1.25 1.32 1.45 1.31 1.21 1.43 1.29 1.27 1.42 1.71

 2016 1.04 0.95 1.09 1.06 1.08 1.01 0.85 1.03 0.98 1.09 1.10 1.43

 2014 1.03 0.84 0.99 1.08 1.12 0.97 0.95 0.89 0.89 1.14 1.15 1.50

Net charge-offs to loans & leases (%) 2018 0.48 0.17 0.11 0.21 0.69 0.43 0.59 0.54 0.23 0.50 0.22 0.71

 2016 0.45 0.15 0.11 0.21 0.62 0.46 0.48 0.53 0.27 0.51 0.30 0.55

 2014 0.49 0.21 0.20 0.28 0.70 0.45 0.73 0.40 0.35 0.60 0.21 0.48

Noncurrent assets plus 

OREO to assets (%) 2018 0.62 1.01 0.77 0.68 0.63 0.58 0.61 0.66 0.56 0.71 0.76 0.45

 2016 0.88 1.19 1.02 0.84 0.82 0.89 0.70 1.07 0.81 1.04 1.04 0.53

 2014 1.29 1.56 1.53 1.50 0.87 1.47 0.92 1.71 1.19 1.60 1.29 0.69

Equity capital ratio (%) 2018 11.28 13.48 11.41 11.85 12.21 10.50 12.67 11.95 10.38 10.21 11.68 11.31

 2016 11.21 13.15 11.47 11.80 12.18 10.50 12.03 12.39 10.18 10.08 11.22 12.04

 2014 11.20 12.35 11.19 11.97 12.68 10.10 12.02 12.11 9.92 10.30 11.15 12.72

* See Table V-A (page 11) for explanations.
2019 • Volume 1 3 • Number 4

10 FDIC QUARTERLY

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

Asset Concentration Groups*

September 30, 2019 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.55 0.18 0.65 0.63 0.42 0.78 0.36 0.91 0.94 0.76

Construction and development 0.33 0.00 0.05 0.62 0.37 0.66 0.71 0.54 0.47 0.16

Nonfarm nonresidential 0.26 0.00 0.24 0.59 0.23 0.23 0.50 0.56 0.80 0.30

Multifamily residential real estate 0.09 0.00 0.01 0.41 0.10 0.07 0.20 0.07 0.31 0.10

Home equity loans 0.60 0.00 1.06 0.45 0.49 0.39 0.42 0.84 0.56 0.65

Other 1-4 family residential 0.89 0.20 0.94 1.02 0.76 0.89 0.33 1.36 1.14 1.04

Commercial and industrial loans 0.33 0.78 0.42 0.94 0.31 0.47 0.58 1.48 0.97 0.25

Loans to individuals 1.46 1.74 1.04 1.11 1.46 1.05 0.86 1.72 1.29 1.73

Credit card loans 1.40 1.77 1.10 0.87 1.48 0.95 0.81 3.19 1.00 1.22

Other loans to individuals 1.52 1.27 0.82 1.13 1.46 1.06 0.88 1.62 1.30 2.04

All other loans and leases (including farm) 0.23 0.35 0.29 0.56 0.21 0.44 0.11 0.76 0.43 0.16

Total loans and leases 0.62 1.65 0.60 0.67 0.46 0.75 0.72 1.07 0.94 0.69

Percent of Loans Noncurrent**

All real estate loans 1.15 1.06 1.42 1.03 0.79 2.05 1.32 1.35 1.02 1.74

Construction and development 0.44 0.28 0.66 0.48 0.44 0.50 0.86 1.06 0.82 0.35

Nonfarm nonresidential 0.55 38.67 0.51 0.83 0.52 0.46 1.43 1.27 1.10 0.64

Multifamily residential real estate 0.12 0.00 0.05 0.45 0.13 0.65 0.17 1.48 0.70 0.11

Home equity loans 1.78 0.00 3.97 0.35 1.12 0.89 1.86 0.39 0.43 2.25

Other 1-4 family residential 1.79 0.55 1.85 0.86 1.33 2.41 1.29 1.48 1.00 2.29

Commercial and industrial loans 0.81 0.66 0.87 1.40 0.86 0.85 0.21 0.85 0.98 0.68

Loans to individuals 0.97 1.71 0.91 0.65 0.77 0.43 0.51 1.25 0.48 0.69

Credit card loans 1.40 1.79 1.09 0.36 1.24 0.76 1.34 1.61 0.41 1.17

Other loans to individuals 0.53 0.57 0.28 0.67 0.74 0.40 0.32 1.23 0.48 0.40

All other loans and leases (including farm) 0.20 0.01 0.10 1.13 0.31 0.58 0.16 0.54 0.69 0.12

Total loans and leases 0.92 1.61 0.87 1.08 0.77 1.89 0.67 1.23 0.95 1.01

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.00 0.02 0.00 0.05 0.02 -0.02 -0.01 0.04 0.04 -0.04

Construction and development -0.01 0.18 0.04 0.04 -0.01 -0.04 0.03 0.02 -0.02 -0.04

Nonfarm nonresidential 0.04 0.00 0.06 0.06 0.04 0.00 0.18 0.01 0.06 0.02

Multifamily residential real estate 0.00 0.00 0.00 0.01 0.00 0.01 -0.02 0.78 -0.02 0.00

Home equity loans -0.09 0.00 -0.08 0.02 0.03 -0.20 -0.02 0.05 0.03 -0.29

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

Commercial and industrial loans 0.34 2.28 0.33 0.36 0.32 0.11 0.50 0.18 0.23 0.26

Loans to individuals 2.40 4.39 2.80 0.46 1.17 1.07 1.07 0.51 0.56 1.82

Credit card loans 3.87 4.51 3.43 1.37 4.27 1.82 2.84 2.15 2.00 3.37

Other loans to individuals 0.90 2.50 0.64 0.38 0.95 1.02 0.66 0.39 0.53 0.88

All other loans and leases (including farm) 0.14 0.98 0.08 0.25 0.19 0.24 0.01 0.22 0.38 0.13

Total loans and leases 0.50 4.19 0.71 0.15 0.20 0.02 0.79 0.12 0.12 0.38

Loans Outstanding (in billions)

All real estate loans $5,002.4 $1.3 $548.9 $121.1 $2,855.3 $200.6 $35.3 $7.3 $34.2 $1,198.4

Construction and development 359.8 0.1 16.2 7.8 275.8 5.3 0.5 0.7 2.2 51.4

Nonfarm nonresidential 1,491.7 0.0 56.9 32.6 1,114.4 17.9 2.0 2.5 7.8 257.6

Multifamily residential real estate 452.0 0.0 83.7 4.1 308.7 5.5 0.3 0.2 0.9 48.6

Home equity loans 349.8 0.0 39.6 2.4 187.2 10.5 3.1 0.3 1.2 105.5

Other 1-4 family residential 2,182.3 1.1 304.0 28.6 919.8 160.4 29.1 3.3 19.2 716.8

Commercial and industrial loans 2,215.8 39.5 353.2 23.4 1,071.6 6.4 6.4 1.4 3.8 710.1

Loans to individuals 1,779.3 388.4 384.2 6.9 386.0 4.8 112.4 1.2 3.7 491.7

Credit card loans 892.9 364.8 296.6 0.6 24.9 0.4 20.5 0.1 0.1 184.9

Other loans to individuals 886.5 23.6 87.6 6.3 361.0 4.4 91.8 1.2 3.7 306.9

All other loans and leases (including farm) 1,404.0 0.3 406.6 44.5 385.6 14.4 3.2 0.5 2.7 546.2

Total loans and leases (plus unearned income) 10,401.5 429.4 1,692.9 195.9 4,698.6 226.1 157.3 10.4 44.4 2,946.5

Memo: Other Real Estate Owned (in millions)

All other real estate owned 6,189.1 0.6 437.2 324.6 3,987.7 166.3 26.5 24.6 98.3 1,123.3

Construction and development 1,479.2 0.4 4.0 54.9 1,263.3 25.2 5.0 5.8 14.5 106.1

Nonfarm nonresidential 1,995.6 0.0 74.0 101.8 1,422.2 18.8 6.3 10.6 41.2 320.8

Multifamily residential real estate 71.7 0.0 0.0 7.9 63.0 0.6 0.0 0.0 0.2 0.0

1-4 family residential 2,386.8 0.3 321.2 51.5 1,141.0 119.1 15.2 8.0 38.9 691.6

Farmland 217.7 0.0 0.0 108.5 98.2 2.6 0.0 0.2 3.5 4.7

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

September 30, 2019 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.55 1.06 0.56 0.33 0.50 0.72 0.45 0.59 0.55 0.76 0.72 0.22

Construction and development 0.33 0.83 0.53 0.34 0.35 0.11 0.45 0.23 0.22 0.32 0.39 0.37

Nonfarm nonresidential 0.26 0.89 0.41 0.27 0.18 0.28 0.28 0.25 0.22 0.31 0.37 0.10

Multifamily residential real estate 0.09 0.55 0.26 0.11 0.08 0.04 0.08 0.04 0.08 0.23 0.11 0.06

Home equity loans 0.60 0.56 0.51 0.42 0.50 0.74 0.49 0.57 0.72 0.78 0.48 0.29

Other 1-4 family residential 0.89 1.43 0.79 0.46 0.90 1.02 0.75 0.94 0.82 1.16 1.47 0.33

Commercial and industrial loans 0.33 1.28 0.67 0.47 0.28 0.31 0.24 0.23 0.38 0.36 0.42 0.42

Loans to individuals 1.46 1.56 1.45 1.38 1.46 1.47 1.30 2.05 0.93 1.28 0.92 1.71

Credit card loans 1.40 1.17 2.25 3.17 1.65 1.15 1.49 1.55 1.02 1.26 0.80 1.83

Other loans to individuals 1.52 1.56 1.39 1.01 1.28 1.88 1.14 2.54 0.82 1.33 0.97 1.61

All other loans and leases (including farm) 0.23 0.50 0.50 0.28 0.17 0.24 0.14 0.13 0.25 0.36 0.19 0.17

Total loans and leases 0.62 1.04 0.60 0.40 0.61 0.67 0.51 0.72 0.52 0.68 0.63 0.62

Percent of Loans Noncurrent** 

All real estate loans 1.15 1.24 0.79 0.69 1.03 1.67 1.03 1.23 1.32 1.61 1.13 0.35

Construction and development 0.44 1.15 0.73 0.48 0.35 0.32 0.54 0.43 0.48 0.33 0.36 0.52

Nonfarm nonresidential 0.55 1.35 0.72 0.61 0.43 0.61 0.65 0.55 0.66 0.55 0.55 0.32

Multifamily residential real estate 0.12 0.71 0.26 0.17 0.11 0.07 0.12 0.23 0.12 0.10 0.14 0.07

Home equity loans 1.78 0.67 0.53 0.54 1.11 2.84 1.89 1.19 2.04 2.86 1.02 0.57

Other 1-4 family residential 1.79 1.17 0.83 0.97 1.83 2.21 1.63 1.88 1.86 2.38 2.43 0.37

Commercial and industrial loans 0.81 1.73 0.99 1.02 0.89 0.68 0.88 0.61 0.81 0.80 0.98 1.02

Loans to individuals 0.97 0.76 0.69 0.88 1.14 0.81 1.06 1.13 0.63 0.95 0.78 1.08

Credit card loans 1.40 0.58 1.83 3.08 1.69 1.12 1.66 1.44 0.98 1.26 1.31 1.80

Other loans to individuals 0.53 0.77 0.61 0.44 0.62 0.43 0.56 0.82 0.26 0.43 0.55 0.45

All other loans and leases (including farm) 0.20 1.52 0.99 0.38 0.22 0.12 0.16 0.17 0.15 0.28 0.32 0.21

Total loans and leases 0.92 1.30 0.82 0.73 0.93 0.97 0.91 0.92 0.91 1.09 1.00 0.64

Percent of Loans Charged-Off (net, YTD) 

All real estate loans 0.00 0.06 0.03 0.03 0.02 -0.04 0.04 -0.03 0.01 0.00 0.02 -0.01

Construction and development -0.01 0.01 0.00 -0.01 -0.01 -0.02 0.02 -0.02 0.03 -0.04 0.00 -0.07

Nonfarm nonresidential 0.04 0.10 0.03 0.05 0.04 0.03 0.06 0.05 0.03 0.03 0.05 0.00

Multifamily residential real estate 0.00 -0.03 0.00 0.00 0.01 0.00 0.00 0.01 0.00 0.01 0.00 0.00

Home equity loans -0.09 0.11 0.03 0.03 0.02 -0.22 0.03 -0.34 -0.01 -0.05 -0.02 -0.03

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

Commercial and industrial loans 0.34 0.64 0.29 0.38 0.41 0.27 0.24 0.33 0.34 0.26 0.41 0.58

Loans to individuals 2.40 0.57 1.06 1.88 2.66 2.25 2.45 2.41 1.94 2.74 1.38 2.72

Credit card loans 3.87 3.03 5.53 6.98 4.34 3.39 3.92 3.93 3.29 3.73 2.68 4.71

Other loans to individuals 0.90 0.56 0.77 0.82 1.01 0.79 1.19 0.89 0.51 1.02 0.82 0.93

All other loans and leases (including farm) 0.14 0.21 0.19 0.21 0.13 0.13 0.13 0.14 0.15 0.13 0.19 0.06

Total loans and leases 0.50 0.18 0.11 0.20 0.66 0.51 0.46 0.55 0.41 0.52 0.23 0.78

Loans Outstanding (in billions) 

All real estate loans $5,002.4 $29.1 $575.4 $900.0 $1,852.1 $1,645.7 $1,032.5 $941.0 $985.9 $897.4 $509.1 $636.4

Construction and development 359.8 1.7 54.5 89.5 149.8 64.4 69.2 59.5 59.9 50.8 79.0 41.6

Nonfarm nonresidential 1,491.7 6.6 217.8 370.0 605.1 292.2 342.1 293.1 222.7 205.0 210.1 218.7

Multifamily residential real estate 452.0 0.8 31.4 98.9 191.1 129.9 157.9 46.2 113.3 40.8 23.5 70.3

Home equity loans 349.8 0.6 20.4 38.7 135.9 154.1 72.2 84.5 86.2 60.2 19.9 26.8

Other 1-4 family residential 2,182.3 13.6 199.1 276.5 753.4 939.6 386.2 444.6 479.4 446.1 157.5 268.5

Commercial and industrial loans 2,215.8 5.0 92.8 195.5 853.6 1,069.1 344.9 548.8 487.9 441.8 152.1 240.3

Loans to individuals 1,779.3 2.8 30.6 69.1 824.5 852.3 300.0 421.1 342.4 319.0 68.0 328.7

Credit card loans 892.9 0.0 1.9 11.7 401.5 477.8 135.6 208.1 174.7 201.1 19.8 153.5

Other loans to individuals 886.5 2.8 28.7 57.4 423.0 374.5 164.4 213.0 167.7 117.9 48.2 175.2

All other loans and leases (including farm) 1,404.0 6.0 48.7 67.1 465.7 816.5 215.0 285.8 339.0 373.4 67.6 123.3

Total loans and leases 

(plus unearned income) 10,401.5 42.9 747.5 1,231.7 3,995.8 4,383.6 1,892.4 2,196.7 2,155.2 2,031.6 796.9 1,328.7

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 6,189.1 144.5 1,687.8 1,337.4 1,643.4 1,376.1 1,063.2 1,357.0 1,199.9 1,112.2 1,124.5 332.4

Construction and development 1,479.2 25.3 663.6 413.4 287.4 89.5 188.0 407.2 175.8 254.6 353.4 100.3

Nonfarm nonresidential 1,995.6 47.5 561.9 542.1 479.2 364.9 276.1 400.2 367.3 386.4 482.7 82.8

Multifamily residential real estate 71.7 5.1 40.3 20.7 3.9 1.8 11.9 21.3 13.7 12.2 8.2 4.4

1-4 family residential 2,386.8 46.9 317.3 282.2 858.6 881.8 577.0 515.3 594.6 346.9 228.0 125.1

Farmland 217.7 19.8 104.7 78.9 14.3 0.0 10.1 13.0 24.4 98.1 52.3 19.9

* Regions:

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

U.S. Virgin Islands

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
2019 • Volume 1 3 • Number 4

12 FDIC QUARTERLY

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

3rd 

Quarter 

2019

2nd 

Quarter 

2019

1st

Quarter 

2019

4th

Quarter 

2018

3rd 

Quarter 

2018

% 

Change 

18Q3-

19Q3

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,337 1,343 1,322 1,311 1,347 -0.7 37 724 442 125 9

Total assets of institutions reporting derivatives $16,897,616 $16,696,505 $16,499,238 $16,296,560 $16,058,176 5.2 $2,525 $317,701 $1,285,695 $6,123,641 $9,168,054

Total deposits of institutions reporting derivatives 13,004,386 12,778,822 12,647,947 12,555,763 12,291,565 5.8 2,066 261,867 1,032,474 4,730,071 6,977,909

Total derivatives 203,447,067 207,258,169 203,961,688 178,089,335 209,769,422 -3.0 250 28,094 159,494 60,347,026 142,912,203

Derivative Contracts by Underlying Risk Exposure 

Interest rate 147,099,769 151,863,618 149,193,449 128,182,078 156,781,236 -6.2 249 27,684 151,104 48,171,518 98,749,214

Foreign exchange* 46,666,516 46,115,633 45,570,306 40,948,207 43,473,496 7.3 0 0 6,161 11,556,284 35,104,071

Equity 3,835,456 3,722,531 3,675,244 3,374,363 3,644,559 5.2 0 19 186 173,062 3,662,189

Commodity & other (excluding credit derivatives) 1,662,059 1,482,094 1,377,390 1,314,571 1,525,680 8.9 0 0 92 106,190 1,555,778

Credit 4,182,691 4,073,984 4,145,034 4,269,954 4,341,695 -3.7 0 8 1,758 339,972 3,840,953

Total 203,446,491 207,257,860 203,961,423 178,089,173 209,766,666 -3.0 249 27,711 159,301 60,347,026 142,912,203

Derivative Contracts by Transaction Type 

Swaps 108,934,914 110,905,216 106,833,011 97,930,420 104,801,209 3.9 2 8,818 89,099 29,570,031 79,266,964

Futures & forwards 46,957,953 46,206,834 46,165,354 36,143,797 47,051,282 -0.2 6 3,488 31,232 14,637,679 32,285,548

Purchased options 20,727,431 21,893,579 21,854,715 18,707,980 25,031,776 -17.2 1 392 11,710 7,772,034 12,943,294

Written options 20,338,281 21,794,090 22,283,518 19,300,817 25,769,336 -21.1 2 2,501 17,330 7,362,372 12,956,076

Total 196,958,578 200,799,718 197,136,597 172,083,014 202,653,603 -2.8 11 15,199 149,371 59,342,116 137,451,881

Fair Value of Derivative Contracts 

Interest rate contracts 54,196 55,924 53,806 47,131 53,594 1.1 0 208 -67 15,971 38,084

Foreign exchange contracts 2,817 -2,565 10,800 11,282 25,827 -89.1 0 0 21 3,673 -877

Equity contracts 1,597 -1,110 -272 6,407 1,975 -19.1 0 2 2 529 1,064

Commodity & other (excluding credit derivatives) -4,100 -2,161 -778 -1,873 2,948 N/M 0 0 0 -12 -4,088

Credit derivatives as guarantor** 20,454 18,529 16,412 6,715 26,237 -22.0 0 0 8 669 19,777

Credit derivatives as beneficiary** -22,966 -21,734 -18,387 -6,765 -26,912 N/M 0 0 -10 -1,252 -21,703

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 88,724,441 90,569,101 87,928,755 71,493,447 93,168,889 -4.8 1 2,872 29,762 24,531,533 64,160,272

 1-5 years 37,506,725 39,191,526 38,988,277 36,682,682 42,735,097 -12.2 0 1,515 38,637 9,351,503 28,115,069

 > 5 years 24,490,557 24,216,180 24,263,088 23,246,059 24,228,390 1.1 8 7,286 53,089 7,205,770 17,224,404

Foreign exchange and gold contracts < 1 year 33,602,158 32,804,737 32,626,686 28,891,823 29,674,897 13.2 0 0 4,009 8,167,235 25,430,914

 1-5 years 4,279,836 4,340,277 4,364,397 4,218,682 4,928,405 -13.2 0 0 779 860,179 3,418,877

 > 5 years 2,148,934 2,170,971 2,181,911 2,095,962 2,470,383 -13.0 0 0 0 612,348 1,536,586

Equity contracts < 1 year 2,687,265 2,725,454 2,714,590 2,448,707 2,825,222 -4.9 0 7 52 75,307 2,611,899

 1-5 years 994,632 972,497 957,790 863,793 963,096 3.3 0 12 33 47,759 946,828

 > 5 years 147,521 149,222 143,076 139,158 135,954 8.5 0 0 2 12,005 135,514

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 1,960,750 2,008,663 1,754,422 1,745,343 1,896,551 3.4 0 0 45 66,421 1,894,284

 1-5 years 2,819,249 2,803,027 2,847,105 3,105,744 3,017,006 -6.6 0 1 424 227,371 2,591,453

 > 5 years 430,569 260,548 528,263 298,075 537,194 -19.8 0 5 619 35,726 394,220

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 27.4 23.9 22.0 22.7 23.9 0.0 1.0 1.6 17.0 41.0

Total potential future exposure to tier 1 capital (%) 35.0 36.6 37.6 36.0 40.9 0.0 0.4 0.8 18.4 55.0

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 62.4 60.5 59.5 58.8 64.8 0.1 1.3 2.4 35.4 96.0

Credit losses on derivatives  22.0 26.0 9.0 12.0 12.0 83.3 0.0 0.0 -2.0 14.0 9.0

HELD FOR TRADING 

Number of institutions reporting derivatives 174 189 187 193 197 -11.7 0 24 76 66 8

Total assets of institutions reporting derivatives 13,311,871 13,222,401 12,931,735 12,768,696 12,612,012 5.5 0 11,832 278,454 4,164,568 8,857,016

Total deposits of institutions reporting derivatives 10,146,691 10,023,986 9,864,375 9,799,266 9,613,504 5.5 0 9,793 220,174 3,204,925 6,711,799

Derivative Contracts by Underlying Risk Exposure 

Interest rate 144,445,439 149,515,929 147,070,054 126,222,239 154,523,852 -6.5 0 550 37,788 47,407,516 96,999,585

Foreign exchange 43,902,530 43,278,150 42,441,525 38,768,802 40,241,704 9.1 0 0 5,416 10,858,222 33,038,892

Equity 3,817,653 3,704,416 3,659,003 3,359,405 3,628,434 5.2 0 0 26 162,316 3,655,311

Commodity & other 1,631,150 1,451,571 1,347,235 1,285,123 1,496,650 9.0 0 0 73 77,019 1,554,058

Total 193,796,771 197,950,066 194,517,817 169,635,569 199,890,639 -3.0 0 550 43,303 58,505,072 135,247,846

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  1,526 2,730 4,080 2,306 1,998 -23.6 0 0 6 -757 2,277

Foreign exchange** 2,718 2,900 2,254 1,971 3,130 -13.2 0 0 4 903 1,811

Equity** 1,805 2,464 2,895 -43 1,444 25.0 0 0 7 116 1,682

Commodity & other (including credit derivatives)** 1,152 -14 808 -202 487 136.6 0 0 0 525 627

Total trading revenues** 7,201 8,080 10,037 4,031 7,059 2.0 0 0 17 787 6,397

Share of Revenue 

Trading revenues to gross revenues (%)** 4.3 4.8 6.2 2.5 4.5 0.0 0.0 0.4 1.6 5.6

Trading revenues to net operating revenues (%)** 18.6 19.0 24.4 10.1 16.8 0.0 0.0 2.0 8.2 22.6

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 661 719 724 734 750 -11.9 5 193 336 118 9

Total assets of institutions reporting derivatives 16,312,457 16,229,106 16,008,092 15,816,221 15,575,002 4.7 389 92,263 1,094,973 5,956,778 9,168,054

Total deposits of institutions reporting derivatives 12,531,168 12,402,057 12,251,856 12,172,535 11,903,875 5.3 331 76,083 876,704 4,600,141 6,977,909

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,633,516 2,335,640 2,113,244 1,950,783 2,249,741 17.1 11 14,629 105,244 764,002 1,749,629

Foreign exchange 479,579 465,373 459,140 452,256 468,068 2.5 0 0 645 33,125 445,809

Equity 17,803 18,116 16,241 14,959 16,125 10.4 0 19 160 10,746 6,878

Commodity & other 30,910 30,523 30,155 29,448 29,030 6.5 0 0 19 29,171 1,720

Total notional amount 3,161,807 2,849,652 2,618,781 2,447,445 2,762,964 14.4 11 14,649 106,068 837,044 2,204,035

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

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

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

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

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

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

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

3rd 

Quarter 

2019

2nd 

Quarter

2019

1st 

Quarter

2019

4th 

Quarter

2018

3rd 

Quarter

2018

% 

Change 

18Q3-

19Q3

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 67 65 65 64 64 4.7 0 5 19 36 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $452,433 $465,275 $486,472 $520,030 $542,310 -16.6 $0 $1,033 $14,146 $87,594 $349,661

Home equity loans 11 12 13 14 15 -26.7 0 0 0 11 0

Credit card receivables 0 0 0 22 24 -100.0 0 0 0 0 0

Auto loans 1,793 2,494 3,062 3,710 4,415 -59.4 0 0 0 1,793 0

Other consumer loans 1,738 1,603 1,668 1,738 1,806 -3.8 0 0 0 882 855

Commercial and industrial loans 537 558 550 453 360 49.2 0 0 0 0 537

All other loans, leases, and other assets 76,770 73,791 72,857 71,416 68,646 11.8 0 4 9,405 4,345 63,016

Total securitized and sold 480,045 491,891 512,764 543,560 562,500 -14.7 0 0 0 65,976 414,069

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,371 1,055 1,050 1,102 1,228 11.6 0 0 50 746 576

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

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

Auto loans 66 86 94 104 114 -42.1 0 0 0 66 0

Other consumer loans 72 111 89 86 85 -15.3 0 0 0 0 72

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

All other loans, leases, and other assets 1,324 1,230 1,257 1,208 1,112 19.1 0 0 210 49 1,064

Total credit exposure 2,489 2,209 2,205 2,221 2,301 8.2 0 0 0 778 1,711

Total unused liquidity commitments provided to institution’s own 

securitizations 203 185 230 213 226 -10.2 0 0 0 30 173

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

1-4 family residential loans 3.6 4.0 3.5 3.6 4.1 0.0 3.2 0.8 2.9 3.9

Home equity loans 7.8 7.1 5.7 8.0 8.9 0.0 0.0 0.0 7.8 0.0

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

Auto loans 2.7 2.3 2.0 2.6 1.9 0.0 0.0 0.0 2.7 0.0

Other consumer loans 3.3 4.5 4.2 4.2 4.5 0.0 0.0 0.0 1.8 4.8

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

All other loans, leases, and other assets 0.3 0.2 0.2 0.2 0.2 0.0 0.0 0.0 1.4 0.2

Total loans, leases, and other assets 3.2 3.6 3.2 3.3 3.8 0.0 0.0 0.0 2.4 3.4

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

1-4 family residential loans 1.1 1.1 1.1 1.1 1.1 0.0 1.1 1.2 1.1 1.0

Home equity loans 33.5 35.9 39.4 39.0 40.2 0.0 0.0 0.0 33.5 0.0

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

Auto loans 0.5 0.5 0.5 0.5 0.4 0.0 0.0 0.0 0.5 0.0

Other consumer loans 3.4 4.0 4.1 4.3 4.3 0.0 0.0 0.0 1.4 5.6

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

All other loans, leases, and other assets 0.3 0.2 0.3 0.5 0.6 0.0 0.0 1.2 0.4 0.2

Total loans, leases, and other assets 0.9 0.9 1.0 1.0 1.0 0.0 0.0 0.0 0.6 0.9

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 6.9 3.6 0.9 18.2 13.9 0.0 0.0 0.0 6.9 0.0

Credit card receivables 0.0 0.0 0.0 9.1 4.2 0.0 0.0 0.0 0.0 0.0

Auto loans 1.2 0.7 0.3 1.4 1.0 0.0 0.0 0.0 1.2 0.0

Other consumer loans 0.5 0.4 0.2 1.0 0.8 0.0 0.0 0.0 0.5 0.5

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

All other loans, leases, and other assets 0.2 0.1 0.1 1.1 0.4 0.0 0.0 0.0 0.6 0.2

Total loans, leases, and other assets 0.2 0.1 0.1 0.2 0.1 0.0 0.0 0.0 0.0 0.2

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

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

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

Commercial and industrial loans 629 644 623 427 361 74.2 0 0 0 0 629

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

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 388 437 442 469 476 -18.5 9 146 166 59 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 29,841 96,968 25,577 26,292 25,822 15.6 86 4,424 13,596 10,145 1,590

All other loans, leases, and other assets 122,896 121,462 118,898 116,452 112,296 9.4 0 7 167 41,946 80,776

Total sold and not securitized 152,737 218,430 144,475 142,744 138,118 10.6 86 4,431 13,763 52,090 82,366

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 10,181 10,410 7,376 7,665 7,932 28.4 5 570 4,697 4,167 742

All other loans, leases, and other assets 34,483 34,162 33,545 32,781 31,286 10.2 0 7 38 12,178 22,259

Total credit exposure 44,665 44,572 40,922 40,446 39,218 13.9 5 578 4,735 16,345 23,002

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 0 0 0 0 0 0.0 0 0 0 0 0

Total credit exposure 23,169 23,532 22,527 23,013 24,792 -6.5 0 0 0 1,874 21,296

Total unused liquidity commitments 411 658 492 604 1,313 -68.7 0 0 0 295 116

Other

Assets serviced for others** 6,102,608 6,079,397 6,128,925 6,061,102 5,984,042 2.0 4,100 143,310 310,931 1,593,302 4,050,965

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 16,186 16,249 17,150 17,366 16,898 -4.2 0 0 0 0 16,186

Unused liquidity commitments to conduits sponsored by institutions 

 and others 30,536 29,907 29,998 31,491 30,447 0.3 0 0 0 874 29,662

Net servicing income (for the quarter) 324 -334 1,524 1,462 2,699 -88.0 7 209 140 167 -200

Net securitization income (for the quarter) 65 72 79 65 64 1.6 0 1 20 15 29

Total credit exposure to Tier 1 capital (%)*** 3.6 3.5 3.5 3.5 3.6 0.0 0.0 0.0 2.5 5.9

* Does not include banks filing the FFIEC 051 report form, which was introduced in first quarter 2017. N/M - Not Meaningful

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

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

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

COMMUNITY BANK PERFORMANCE

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

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

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

banks designated during the previous quarter.

Community Bank Earnings Increase 7.2 Percent Year Over Year

The Pretax Return on Assets Ratio Climbs to Highest Level in More Than a Decade

Loan Balances Increase 6 Percent, Outpacing Growth at Noncommunity Banks

Asset Quality Metrics Remain Stable

Community Bank Earnings 

Increase 7.2 Percent 

Year Over Year

Net income increased among community banks in the year ending third quarter 2019 as 

higher net interest income, noninterest income, and realized gains on securities more than 

offset growth in noninterest expense, provision for loan and lease losses, and income tax 

expense. Third quarter 2019 net income totaled $6.9 billion, up $466.2 million (7.2 percent) 

from third quarter 2018. Nearly 62 percent of community banks reported annual net income 

growth. The quarterly pretax return on assets (ROA) ratio rose 3 basis points to 1.51 percent, 

marking the highest pretax ROA ratio reported by community banks since third quarter 

2006. The share of unprofitable institutions was 4.3 percent, up from 3.8 percent in the yearago quarter. There were 4,825 community banks at the end of the quarter, 48 less than the 

prior quarter. The quarterly decline was due to the fact that 43 fewer banks were operating, 

five banks were reclassified as noncommunity banks, two banks opened, and two banks had 

not filed a third quarter 2019 Call Report at the time this report was prepared.

Net Operating Revenue 

Increases at More Than 

70 Percent of 

Community Banks

Net operating revenue—the sum of net interest income and noninterest income—totaled 

$24.1 billion, up $1.5 billion (6.4 percent) year over year. Growth in both net interest 

income and noninterest income contributed to the increase. Net interest income increased 

$736.3 million (4 percent), while noninterest income increased $716.7 million (16.4 percent). 

The annual increase in net interest income was attributable to growth in earning assets 

(up $115.9 billion, or 5.9 percent). Greater net gains on loan sales (up $508.8 million, or 

66 percent) accounted for more than 70 percent of the total growth in noninterest income.

Contributors to the Year-Over-Year Change in Income 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Positive Factor Negative Factor

0.0

0.5

1.0

$0.47 $0.74 $0.15 $0.72 $0.83 $0.14 $0.15

+7% +4% +25% +16% +6% +675% +12%

Chart 1

Source: FDIC.

Net Interest Margin

Percent 

Community Banks (3.69)

Industry (3.35)

2.75

3.00

3.25

3.50

3.75

4.00

4.25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 2
2019 • Volume 1 3 • Number 4

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions Year-Over-Year Change

Quarter-Over-Quarter Change

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

Commercial

& Industrial

1–4 Family

Residential

RE

Construction &

Development

Agricultural

Production

Commercial RE

& Construction

Commercial

& Industrial

0

-5

5

10

15

20

25

30

35

40

30.5

13.1

8.8

17.3

0.3

5.7 7.7 7.3

-0.3

5.8

2.2 0.4 1.7 3.3

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Share of Loan Portfolio Noncurrent

Percent

0

2

4

6

8

10

12

14

16

C&D Loans

Nonfarm Nonresidential RE

1–4 Family RE

C&I Loans 

Farm Loans

Home Equity

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 4

Net Interest Margin 

Declines as Funding 

Costs Rise Faster Than 

Asset Yields

The average community bank net interest margin (NIM) fell 5 basis points year over year to 

3.69 percent, as the growth in the yield on earning assets (up 18 basis points) was not enough 

to offset the growth in the cost of funding earning assets (up 23 basis points). More than 

half of community banks (56 percent) reported an annual decline in NIM. The growth in 

funding costs is mostly attributable to higher rates paid on interest-bearing deposit products 

rather than a change in deposit composition. Over the past 12 months, community banks 

reported no shift from noninterest-bearing deposits to interest-bearing deposits. Similarly, 

within interest-bearing deposits, there has been little shift from checking and savings deposits to higher-cost time deposits.

Noninterest Expense 

Increases, but Efficiency 

Ratio Falls to 

Post-Crisis Low

Noninterest expense increased $828 million (5.8 percent) to $15.2 billion over the past 

12 months. More than seven in ten community banks reported higher noninterest expense 

year over year. Growth in salaries and employee benefits of $681.3 million (8.3 percent) led 

the annual increase, while all other noninterest expenses rose $146.7 million (2.4 percent). 

The growth in salaries and benefit expense was a result of more employees (up 1.4 percent) 

and higher average expense per employee (up 6.8 percent). Nonetheless, community 

banks reported 2.7 percent growth in assets per employee and the lowest efficiency ratio 

(62.5 percent) since second quarter 2006.

Nearly Three-Quarters of 

Community Banks Report 

Annual Deposit Growth

Total community bank deposits increased 5.9 percent to $1.8 trillion from the prior 

year, outpacing the 5.1 percent annual growth rate reported by noncommunity banks. 

Deposit growth was broad-based as nearly 75 percent of community banks reported 

annual increases. Growth occurred in both interest-bearing deposits (up 5.8 percent) and 

noninterest-bearing deposits (up 6.2 percent). The third quarter 2019 annualized quarterly 

deposit growth rate was 6.2 percent, indicating deposit growth remains steady.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Community Banks Report 

Quarterly and Annual 

Loan Growth

Community bank loan and lease balances rose $20.8 billion (1.3 percent) during the quarter 

to $1.6 trillion. More than 63 percent of community banks reported quarterly loan growth, 

which was led by the following categories: nonfarm nonresidential loans (up $7.7 billion, or 

1.7 percent), 1–4 family residential loans (up $5.9 billion, or 1.3 percent), and construction 

and development (C&D) loans (up $2.2 billion, or 2.0 percent). Community banks reported 

a slight decline in commercial and industrial (C&I) loans (down $0.3 billion, or 0.2 percent), 

the only major category to decline during the quarter.

Over the past 12 months, loan and lease balances increased $89.7 billion (6 percent). Annual 

loan growth was broad-based as every major loan category increased, and nearly threequarters of community banks reported higher loan balances year over year. Loan growth 

was led by the following categories: nonfarm nonresidential loans (up $30.5 billion, or 

6.9 percent), 1–4 family residential loans (up $17.4 billion, or 4.1 percent), C&I loans (up 

$13.1 billion, or 6.6 percent), and C&D loans (up $8.8 billion, or 8.4 percent). Both quarterly 

and annual community bank loan and lease growth rates outpaced the rate of loan and lease 

growth at noncommunity banks.

The Noncurrent Loan Rate 

Remains Stable for Most 

Loan Categories

The noncurrent rate for total loans and leases was 0.77 percent, down 3 basis points year 

over year but up 2 basis points quarter over quarter. Total noncurrent balances increased 

$193.1 million (1.6 percent) during the quarter to $12.2 billion. The quarter-over-quarter 

increase in the noncurrent rate was driven by growth in commercial real estate and C&I 

noncurrent balances. The annual decline in the noncurrent rate was driven by loan growth. 

Noncurrent balances remained roughly flat from the previous year, as declines in commercial and residential real estate noncurrent balances were largely offset by higher noncurrent 

balances in agriculture and C&I portfolios.

The agriculture loan noncurrent rate of 1.27 percent remains the highest among major loan 

categories at community banks. This rate increased 11 basis points year over year, marking 

the 15th consecutive quarter with an annual increase. Loans secured by farmland (up 6 basis 

points to 1.47 percent) and agricultural production loans (up 17 basis points to 0.97 percent) 

contributed to the increase.

The Net Charge-Off Rate 

Rises but Remains Low

The community bank net charge-off rate for total loans and leases increased 4 basis points 

from third quarter 2018 to 0.14 percent. Less than half (47 percent) of community banks 

reported an annual increase in net charge-offs. While net charge-off rates increased year 

over year in all major loan categories, the increase was driven by C&I loans. The C&I net 

charge-off rate climbed 21 basis points to 0.48 percent. Commercial real estate, residential 

real estate, and agriculture net charge-off rates increased by 1 basis point each, and the 

consumer loan net charge-off rate increased 4 basis points.

Community Bank Capital 

Ratios Post Quarterly and 

Annual Increases

Equity capital totaled $263.9 billion at the end of third quarter 2019, up $5.6 billion 

(2.2 percent) from the previous quarter and $26.2 billion (11 percent) from the prior year. 

The growth in capital supported increases in all regulatory capital ratios. The leverage capital ratio and total risk-based capital ratio increased 18 basis points each, while the common 

equity tier 1 capital ratio and tier 1 risk-based capital ratio increased 21 basis points each.

Author: 

Nathan L. Hinton

Senior Financial Analyst

Division of Insurance and Research
2019 • Volume 1 3 • Number 4

18 FDIC QUARTERLY

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

2019* 2018* 2018 2017 2016 2015 2014

Return on assets (%) 1.22 1.17 1.19 0.96 0.99 0.99 0.93

Return on equity (%) 10.46 10.49 10.58 8.65 8.81 8.85 8.45

Core capital (leverage) ratio (%) 11.24 11.05 11.09 10.80 10.69 10.67 10.57

Noncurrent assets plus other real estate owned to assets (%) 0.67 0.72 0.70 0.78 0.94 1.07 1.34

Net charge-offs to loans (%) 0.11 0.13 0.13 0.16 0.16 0.15 0.21

Asset growth rate (%) 0.51 -0.57 2.22 1.17 2.97 2.74 2.20

Net interest margin (%) 3.69 3.68 3.72 3.62 3.57 3.57 3.61

Net operating income growth (%) 0.29 14.38 28.02 0.21 2.42 9.57 4.78

Number of institutions reporting 4,825 5,044 4,980 5,228 5,462 5,736 6,037

Percentage of unprofitable institutions (%) 3.63 3.59 3.61 5.72 4.67 5.04 6.44

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

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

(dollar figures in millions)  3rd Quarter

2019

2nd Quarter

2019

3rd Quarter

2018

%Change 

18Q3-19Q3

Number of institutions reporting 4,825 4,873 5,044 -4.3

Total employees (full-time equivalent) 402,653 407,787 411,389 -2.1

CONDITION DATA

Total assets $2,231,963 $2,265,552 $2,220,747 0.5

Loans secured by real estate 1,211,291 1,238,272 1,221,148 -0.8

 1-4 Family residential mortgages 397,600 399,566 395,846 0.4

 Nonfarm nonresidential 472,117 478,881 473,877 -0.4

 Construction and development 113,074 113,702 110,458 2.4

 Home equity lines 47,016 47,264 48,616 -3.3

Commercial & industrial loans 212,053 221,768 210,455 0.8

Loans to individuals 65,697 65,107 63,177 4.0

 Credit cards 2,103 2,025 1,801 16.8

Farm loans 53,553 53,417 53,722 -0.3

Other loans & leases 43,632 43,260 39,742 9.8

Less: Unearned income 542 639 652 -16.9

Total loans & leases 1,585,683 1,621,185 1,587,593 -0.1

Less: Reserve for losses 18,002 18,287 18,263 -1.4

Net loans and leases 1,567,681 1,602,899 1,569,330 -0.1

Securities 376,068 388,829 396,603 -5.2

Other real estate owned 2,717 2,838 3,267 -16.8

Goodwill and other intangibles 17,326 17,000 15,599 11.1

All other assets 268,170 253,987 235,948 13.7

Total liabilities and capital 2,231,963 2,265,552 2,220,747 0.5

Deposits 1,830,920 1,858,019 1,821,830 0.5

 Domestic office deposits 1,828,609 1,855,748 1,821,239 0.4

 Foreign office deposits 2,311 2,271 591 291.3

 Brokered deposits 69,827 75,388 73,148 -4.5

Estimated insured deposits 1,337,465 1,350,502 1,330,370 0.5

Other borrowed funds 116,362 123,165 131,529 -11.5

Subordinated debt 370 631 624 -40.7

All other liabilities 20,335 18,919 16,993 19.7

Total equity capital (includes minority interests) 263,976 264,817 249,772 5.7

 Bank equity capital 263,888 264,741 249,663 5.7

Loans and leases 30-89 days past due 7,833 8,027 7,775 0.7

Noncurrent loans and leases 12,240 12,184 12,744 -3.9

Restructured loans and leases 5,751 5,975 6,486 -11.3

Mortgage-backed securities 173,910 179,279 174,430 -0.3

Earning assets 2,075,732 2,113,048 2,071,583 0.2

FHLB Advances 94,816 100,694 109,153 -13.1

Unused loan commitments 314,509 315,860 306,211 2.7

Trust assets 259,743 276,541 296,616 -12.4

Assets securitized and sold 17,241 12,908 14,891 15.8

Notional amount of derivatives 104,552 99,333 75,858 37.8

INCOME DATA

First Three 

Quarters 2019

First Three 

Quarters 2018 %Change

3rd Quarter 

2019

3rd Quarter 

2018

%Change 

18Q3-19Q3

Total interest income $70,483 $66,231 6.4 $24,060 $23,124 4.0

Total interest expense 14,432 10,159 42.1 5,045 3,864 30.6

Net interest income 56,051 56,072 0.0 19,015 19,259 -1.3

Provision for loan and lease losses 2,043 2,089 -2.2 754 628 20.1

Total noninterest income 13,874 13,752 0.9 5,096 4,659 9.4

Total noninterest expense 44,690 44,688 0.0 15,164 15,086 0.5

Securities gains (losses) 580 119 386.7 165 23 630.0

Applicable income taxes 3,991 3,834 4.1 1,413 1,356 4.2

Extraordinary gains, net* 117 -195 N/M 2 -33 N/M

Total net income (includes minority interests) 19,899 19,138 4.0 6,946 6,838 1.6

 Bank net income 19,890 19,128 4.0 6,941 6,834 1.6

Net charge-offs 1,321 1,468 -10.0 559 413 35.3

Cash dividends 9,546 7,838 21.8 3,000 2,576 16.5

Retained earnings 10,344 11,289 -8.4 3,941 4,258 -7.4

Net operating income 19,290 19,235 0.3 6,802 6,853 -0.7

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

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  3rd Quarter 

2019

2nd Quarter 

2019

3rd Quarter

2018

%Change 

18Q3-19Q3

Number of institutions reporting 4,825 4,823 4,816 0.2

Total employees (full-time equivalent) 402,653 403,094 397,010 1.4

CONDITION DATA

Total assets $2,231,963 $2,197,019 $2,103,445 6.1

Loans secured by real estate 1,211,291 1,194,019 1,145,160 5.8

 1-4 Family residential mortgages 397,600 391,814 380,258 4.6

 Nonfarm nonresidential 472,117 464,440 441,596 6.9

 Construction and development 113,074 110,867 104,301 8.4

 Home equity lines 47,016 46,899 46,938 0.2

Commercial & industrial loans 212,053 212,388 198,927 6.6

Loans to individuals 65,697 64,523 62,109 5.8

 Credit cards 2,103 2,041 2,027 3.7

Farm loans 53,553 53,201 53,228 0.6

Other loans & leases 43,632 41,270 37,081 17.7

Less: Unearned income 542 559 556 -2.4

Total loans & leases 1,585,683 1,564,841 1,495,950 6.0

Less: Reserve for losses 18,002 17,871 17,505 2.8

Net loans and leases 1,567,681 1,546,971 1,478,445 6.0

Securities 376,068 378,468 379,813 -1.0

Other real estate owned 2,717 2,823 3,131 -13.2

Goodwill and other intangibles 17,326 17,176 15,734 10.1

All other assets 268,170 251,582 226,321 18.5

Total liabilities and capital 2,231,963 2,197,019 2,103,445 6.1

Deposits 1,830,920 1,802,935 1,728,708 5.9

 Domestic office deposits 1,828,609 1,800,664 1,726,758 5.9

 Foreign office deposits 2,311 2,271 1,950 18.5

 Brokered deposits 69,827 73,898 70,866 -1.5

Estimated insured deposits 1,337,465 1,328,259 1,280,001 4.5

Other borrowed funds 116,362 117,116 120,395 -3.3

Subordinated debt 370 372 366 1.1

All other liabilities 20,335 18,239 16,145 26.0

Total equity capital (includes minority interests) 263,976 258,357 237,831 11.0

 Bank equity capital 263,888 258,281 237,722 11.0

Loans and leases 30-89 days past due 7,833 7,926 7,554 3.7

Noncurrent loans and leases 12,240 12,047 12,244 0.0

Restructured loans and leases 5,751 5,889 6,313 -8.9

Mortgage-backed securities 173,910 171,022 162,860 6.8

Earning assets 2,075,732 2,046,614 1,959,803 5.9

FHLB Advances 94,816 95,257 99,069 -4.3

Unused loan commitments 314,509 309,286 294,367 6.8

Trust assets 259,743 272,451 263,358 -1.4

Assets securitized and sold 17,241 16,730 18,566 -7.1

Notional amount of derivatives 104,552 95,210 69,133 51.2

INCOME DATA

First Three 

Quarters 2019

First Three 

Quarters 2018 %Change

3rd Quarter 

2019

3rd Quarter 

2018

%Change 

18Q3-19Q3

Total interest income $70,483 $62,608 12.6 $24,060 $21,906 9.8

Total interest expense 14,432 9,516 51.7 5,045 3,627 39.1

Net interest income 56,051 53,091 5.6 19,015 18,278 4.0

Provision for loan and lease losses 2,043 1,873 9.1 754 604 24.9

Total noninterest income 13,874 12,960 7.1 5,096 4,380 16.4

Total noninterest expense 44,690 42,398 5.4 15,164 14,336 5.8

Securities gains (losses) 580 108 436.5 165 21 675.1

Applicable income taxes 3,991 3,570 11.8 1,413 1,261 12.0

Extraordinary gains, net* 117 3 N/M 2 1 N/M

Total net income (includes minority interests) 19,899 18,322 8.6 6,946 6,479 7.2

 Bank net income 19,890 18,312 8.6 6,941 6,475 7.2

Net charge-offs 1,321 1,136 16.4 559 406 37.7

Cash dividends 9,546 7,746 23.2 3,000 2,583 16.1

Retained earnings 10,344 10,566 -2.1 3,941 3,892 1.3

Net operating income 19,290 18,231 5.8 6,802 6,461 5.3

* See Notes to Users for explanation. N/M - Not Meaningful
2019 • Volume 1 3 • Number 4

20 FDIC QUARTERLY

TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks

Third Quarter 2019

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 4,825 547 551 1,063 1,287 1,077 300

Total employees (full-time equivalent) 402,653 81,171 45,096 83,755 70,363 88,487 33,781

CONDITION DATA

Total assets $2,231,963 $576,877 $228,216 $406,136 $372,469 $427,597 $220,668

Loans secured by real estate 1,211,291 357,354 125,997 213,647 182,697 215,414 116,183

 1-4 Family residential mortgages 397,600 137,221 38,956 69,150 54,818 70,444 27,011

 Nonfarm nonresidential 472,117 129,408 55,800 80,892 61,277 87,242 57,498

 Construction and development 113,074 25,182 14,182 17,306 16,286 29,886 10,233

 Home equity lines 47,016 14,661 6,236 10,026 5,216 4,964 5,912

Commercial & industrial loans 212,053 49,521 18,975 42,122 38,287 42,271 20,877

Loans to individuals 65,697 16,318 6,322 12,652 11,150 12,904 6,351

 Credit cards 2,103 440 142 242 608 211 460

Farm loans 53,553 647 1,513 8,363 29,921 9,952 3,157

Other loans & leases 43,632 11,225 3,269 9,539 6,495 8,712 4,392

Less: Unearned income 542 101 72 49 101 123 97

Total loans & leases 1,585,683 434,964 156,004 286,274 268,449 289,131 150,863

Less: Reserve for losses 18,002 4,157 1,734 3,218 3,523 3,465 1,905

Net loans and leases 1,567,681 430,807 154,269 283,056 264,926 285,665 148,958

Securities 376,068 82,976 40,243 71,868 62,938 81,324 36,719

Other real estate owned 2,717 458 527 511 474 614 134

Goodwill and other intangibles 17,326 4,853 1,218 3,277 2,472 3,163 2,342

All other assets 268,170 57,784 31,958 47,424 41,660 56,830 32,515

Total liabilities and capital 2,231,963 576,877 228,216 406,136 372,469 427,597 220,668

Deposits 1,830,920 459,755 189,888 334,040 306,958 357,725 182,555

 Domestic office deposits 1,828,609 459,040 189,887 333,904 306,958 357,725 181,095

 Foreign office deposits 2,311 715 1 135 0 0 1,460

 Brokered deposits 69,827 23,364 4,486 13,373 13,841 9,118 5,646

 Estimated insured deposits 1,337,465 336,330 137,306 259,612 236,327 253,925 113,966

Other borrowed funds 116,362 41,960 9,581 20,433 19,399 16,053 8,937

Subordinated debt 370 248 13 36 10 42 21

All other liabilities 20,335 6,634 1,863 3,321 2,840 3,308 2,369

Total equity capital (includes minority interests) 263,976 68,280 26,871 48,306 43,263 50,469 26,787

 Bank equity capital 263,888 68,253 26,867 48,271 43,262 50,449 26,786

Loans and leases 30-89 days past due 7,833 1,801 883 1,465 1,352 1,889 443

Noncurrent loans and leases 12,240 3,442 1,154 2,308 2,115 2,461 761

Restructured loans and leases 5,751 1,848 576 1,322 913 729 364

Mortgage-backed securities 173,910 45,578 19,229 30,067 23,534 34,173 21,329

Earning assets 2,075,732 538,778 211,323 377,933 346,827 396,628 204,244

FHLB Advances 94,816 36,575 8,075 15,866 15,271 12,697 6,332

Unused loan commitments 314,509 82,429 27,916 57,276 55,191 54,769 36,928

Trust assets 259,743 54,264 7,787 57,849 83,660 39,136 17,046

Assets securitized and sold 17,241 7,509 75 5,007 2,875 1,004 770

Notional amount of derivatives 104,552 40,565 9,118 16,647 16,535 13,798 7,889

INCOME DATA

Total interest income $24,060 $5,934 $2,473 $4,311 $4,135 $4,817 $2,390

Total interest expense 5,045 1,519 475 882 881 908 380

Net interest income 19,015 4,415 1,998 3,428 3,254 3,909 2,010

Provision for loan and lease losses 754 166 61 108 138 172 108

Total noninterest income 5,096 1,003 493 1,263 876 1,045 416

Total noninterest expense 15,164 3,476 1,670 2,923 2,508 3,151 1,435

Securities gains (losses) 165 54 12 31 26 37 5

Applicable income taxes 1,413 408 141 285 194 199 186

Extraordinary gains, net** 2 0 0 0 2 0 0

Total net income (includes minority interests) 6,946 1,422 630 1,406 1,318 1,468 702

 Bank net income 6,941 1,421 630 1,404 1,318 1,466 702

Net charge-offs 559 118 44 76 85 134 101

Cash dividends 3,000 391 240 702 566 688 413

Retained earnings 3,941 1,030 390 702 753 778 289

Net operating income 6,802 1,376 620 1,380 1,293 1,436 698

* See Table V-A for explanation.

** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Third Quarter 2019, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Third Quarter 2019, Geographic Regions*

 3rd Quarter 

2019

2nd Quarter 

2019 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.67 4.65 4.44 4.72 4.60 4.80 4.90 4.71

Cost of funding earning assets 0.98 0.97 1.14 0.91 0.94 1.02 0.92 0.75

Net interest margin 3.69 3.68 3.30 3.82 3.66 3.78 3.98 3.96

Noninterest income to assets 0.92 0.83 0.70 0.87 1.26 0.95 0.99 0.76

Noninterest expense to assets 2.74 2.73 2.43 2.96 2.91 2.72 2.98 2.62

Loan and lease loss provision to assets 0.14 0.12 0.12 0.11 0.11 0.15 0.16 0.20

Net operating income to assets 1.23 1.18 0.96 1.10 1.37 1.40 1.36 1.27

Pretax return on assets 1.51 1.48 1.28 1.37 1.68 1.64 1.57 1.62

Return on assets 1.25 1.23 0.99 1.11 1.40 1.43 1.38 1.28

Return on equity 10.64 10.63 8.41 9.51 11.79 12.33 11.76 10.57

Net charge-offs to loans and leases 0.14 0.11 0.11 0.11 0.11 0.13 0.19 0.27

Loan and lease loss provision to net charge-offs 134.95 157.84 140.08 139.95 141.77 161.92 128.73 106.97

Efficiency ratio 62.52 63.50 63.83 66.51 61.85 60.29 63.32 58.91

Net interest income to operating revenue 78.86 80.44 81.49 80.20 73.08 78.79 78.90 82.86

% of unprofitable institutions 4.27 4.06 4.02 6.35 4.80 2.49 3.81 8.33

% of institutions with earnings gains 62.03 59.74 57.59 62.98 64.82 62.24 61.28 60.33

Table V-B. First Three Quarters 2019, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks First Three Quarters 2019, Geographic Regions*

First Three 

Quarters 2019

First Three 

Quarters 2018 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.64 4.35 4.43 4.71 4.55 4.72 4.85 4.70

Cost of funding earning assets 0.95 0.67 1.10 0.88 0.91 0.99 0.89 0.73

Net interest margin 3.69 3.68 3.32 3.83 3.64 3.74 3.95 3.97

Noninterest income to assets 0.85 0.84 0.65 0.81 1.15 0.86 0.91 0.72

Noninterest expense to assets 2.74 2.74 2.47 2.96 2.87 2.70 2.93 2.64

Loan and lease loss provision to assets 0.13 0.13 0.10 0.10 0.10 0.15 0.16 0.14

Net operating income to assets 1.18 1.18 0.92 1.06 1.30 1.31 1.32 1.28

Pretax return on assets 1.46 1.41 1.28 1.33 1.60 1.52 1.51 1.63

Return on assets 1.22 1.17 1.00 1.09 1.34 1.33 1.34 1.29

Return on equity 10.46 10.49 8.52 9.46 11.44 11.63 11.54 10.71

Net charge-offs to loans and leases 0.11 0.13 0.10 0.09 0.08 0.12 0.15 0.15

Loan and lease loss provision to net charge-offs 154.60 142.31 140.15 167.21 173.74 167.26 154.99 134.74

Efficiency ratio 63.53 63.67 65.40 67.29 62.84 61.64 63.72 59.69

Net interest income to operating revenue 80.16 80.30 82.75 81.49 74.70 80.13 80.05 83.67

% of unprofitable institutions 3.63 3.59 3.84 5.44 3.95 2.25 3.16 6.33

% of institutions with earnings gains 64.06 75.63 61.06 66.79 65.76 62.08 64.35 66.00

* See Table V-A for explanation.
2019 • Volume 1 3 • Number 4

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

September 30, 2019

Geographic Regions*

All Community Banks New York Atlanta Chicago Kansas City Dallas San Francisco

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.45 0.38 0.52 0.51 0.44 0.60 0.21

Construction and development 0.45 0.36 0.49 0.46 0.48 0.50 0.39

Nonfarm nonresidential 0.33 0.33 0.33 0.35 0.34 0.42 0.14

Multifamily residential real estate 0.16 0.07 0.09 0.35 0.38 0.13 0.03

Home equity loans 0.45 0.46 0.51 0.48 0.36 0.49 0.33

Other 1-4 family residential 0.66 0.51 0.87 0.75 0.61 0.90 0.35

Commercial and industrial loans 0.52 0.35 0.65 0.49 0.62 0.61 0.48

Loans to individuals 1.36 1.56 1.42 0.82 0.95 2.05 1.19

Credit card loans 2.45 2.86 1.68 1.06 3.71 1.22 1.95

Other loans to individuals 1.32 1.52 1.42 0.81 0.79 2.06 1.13

All other loans and leases (including farm) 0.41 0.14 0.23 0.37 0.55 0.43 0.27

Total loans and leases 0.49 0.41 0.57 0.51 0.50 0.65 0.29

Percent of Loans Noncurrent

All loans secured by real estate 0.75 0.81 0.74 0.82 0.73 0.80 0.41

Construction and development 0.60 0.61 0.65 0.55 0.64 0.58 0.63

Nonfarm nonresidential 0.65 0.73 0.60 0.74 0.64 0.70 0.34

Multifamily residential real estate 0.22 0.21 0.28 0.37 0.21 0.21 0.05

Home equity loans 0.50 0.57 0.50 0.49 0.28 0.46 0.57

Other 1-4 family residential 0.94 1.12 0.93 0.98 0.58 1.04 0.43

Commercial and industrial loans 0.93 0.90 0.75 0.89 0.97 1.06 0.88

Loans to individuals 0.56 0.40 0.79 0.33 0.43 1.08 0.39

Credit card loans 1.20 1.33 0.48 0.62 1.58 0.58 1.39

Other loans to individuals 0.54 0.37 0.80 0.32 0.37 1.09 0.32

All other loans and leases (including farm) 0.80 0.20 0.57 0.78 1.01 0.78 0.95

Total loans and leases 0.77 0.79 0.74 0.81 0.79 0.85 0.50

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.03 0.05 0.02 0.03 0.03 0.04 0.00

Construction and development 0.00 0.01 -0.02 -0.02 0.04 0.00 -0.04

Nonfarm nonresidential 0.05 0.06 0.03 0.05 0.05 0.07 0.01

Multifamily residential real estate 0.00 0.01 -0.09 -0.01 0.01 0.02 -0.01

Home equity loans 0.03 0.04 0.01 0.06 0.01 0.02 -0.02

Other 1-4 family residential 0.03 0.05 0.02 0.03 0.02 0.03 -0.01

Commercial and industrial loans 0.31 0.23 0.29 0.20 0.26 0.40 0.65

Loans to individuals 0.86 0.84 0.91 0.36 1.07 1.00 1.18

Credit card loans 5.92 3.29 3.83 1.81 14.15 1.74 2.81

Other loans to individuals 0.69 0.77 0.84 0.33 0.34 0.99 1.05

All other loans and leases (including farm) 0.18 0.10 0.16 0.23 0.13 0.27 0.25

Total loans and leases 0.11 0.10 0.09 0.08 0.12 0.15 0.15

Loans Outstanding (in billions)

All loans secured by real estate $1,211.3 $357.4 $126.0 $213.6 $182.7 $215.4 $116.2

Construction and development 113.1 25.2 14.2 17.3 16.3 29.9 10.2

Nonfarm nonresidential 472.1 129.4 55.8 80.9 61.3 87.2 57.5

Multifamily residential real estate 104.1 48.4 6.3 18.4 10.8 8.6 11.5

Home equity loans 47.0 14.7 6.2 10.0 5.2 5.0 5.9

Other 1-4 family residential 397.6 137.2 39.0 69.1 54.8 70.4 27.0

Commercial and industrial loans 212.1 49.5 19.0 42.1 38.3 42.3 20.9

Loans to individuals 65.7 16.3 6.3 12.7 11.2 12.9 6.4

Credit card loans 2.1 0.4 0.1 0.2 0.6 0.2 0.5

Other loans to individuals 63.6 15.9 6.2 12.4 10.5 12.7 5.9

All other loans and leases (including farm) 97.2 11.9 4.8 17.9 36.4 18.7 7.5

Total loans and leases 1,586.2 435.1 156.1 286.3 268.5 289.3 151.0

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 314,509 82,429 27,916 57,276 55,191 54,769 36,928

Construction and development: 1-4 family residential 26,095 5,222 3,608 3,144 3,572 7,645 2,904

Construction and development: CRE and other 66,848 20,304 6,580 11,079 9,075 13,398 6,412

Commercial and industrial 101,265 25,512 7,512 20,913 17,219 17,878 12,232

* See Table V-A for explanation.

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

FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $1.5 Billion

DIF Reserve Ratio Rises 1 Basis Point to 1.41 Percent

Small Bank Credits Will Be Applied to Third Quarter Assessments

During the third quarter, the Deposit Insurance Fund (DIF) balance increased by 

$1.5 billion to $108.9 billion. Assessment income of $1.1 billion and interest earned on 

investments of $544 million were the largest drivers of the increase. Negative provisions 

for losses added $192 million and unrealized gains on available-for-sale securities added 

$86 million. Operating expenses reduced the fund by $443 million. There were no failures 

during the third quarter of 2019.

The deposit insurance assessment base—average consolidated total assets minus average tangible equity—increased by 1.4 percent in the third quarter and by 4.4 percent over 

12 months.1, 2 Total estimated insured deposits increased by 0.6 percent in the third quarter 

of 2019 and by 4.9 percent year over year.

The growth in the fund balance and relatively normal growth in insured deposits increased 

the DIF reserve ratio to 1.41 percent. The third quarter 2019 reserve ratio is 1 basis point 

higher than last quarter and 5 basis points higher than the previous year.

Small banks earned a total of $765 million in credits for the portion of their assessments that 

contributed to growth in the reserve ratio from 1.15 percent to 1.35 percent. The credits are 

automatically applied to offset the assessments of small banks when the reserve ratio is at 

least 1.35 percent.3 Therefore, the FDIC will apply approximately $239 million of credits to 

offset the third quarter assessments of small banks, which will be due December 30, 2019.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

1 There are additional adjustments to the assessment base for banker’s banks and custodial banks.

2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

3 In November 2019, the FDIC Board of Directors authorized a rule change that would require the FDIC to apply the small bank 

credits in any assessment quarter in which the reserve ratio is at least 1.35 percent.
2019 • Volume 1 3 • Number 4

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.27 1.30 1.30 1.33 1.36 1.36 1.40

1.18 1.20 1.20 1.24

1.36

1.41

9/16 12/16 3/17 6/17 9/17 12/17 3/18 6/18 9/18 12/18 3/19 6/19 9/19

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

3rd 

Quarter 

2019

2nd 

Quarter 

2019

1st 

Quarter 

2019

4th 

Quarter 

2018

3rd 

Quarter 

2018

2nd 

Quarter 

2018

1st 

Quarter 

2018

4th 

Quarter 

2017

3rd 

Quarter 

2017

2nd 

Quarter 

2017

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd 

Quarter 

2016

Beginning Fund Balance $107,446 $104,870 $102,609 $100,204 $97,588 $95,072 $92,747 $90,506 $87,588 $84,928 $83,162 $80,704 $77,910

Changes in Fund Balance:

Assessments earned 1,111 1,187 1,369 1,351 2,728 2,598 2,850 2,656 2,568 2,634 2,737 2,688 2,643

Interest earned on 

investment securities 544 535 507 481 433 381 338 305 274 251 227 189 171

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 443 459 434 453 434 445 433 443 404 450 442 437 422

Provision for insurance 

losses -192 -610 -396 -236 -121 -141 -65 -203 -512 -233 765 -332 -566

All other income, 

net of expenses 4 9 2 2 2 3 1 3 1 4 2 3 3

Unrealized gain/(loss) on 

available-for-sale 

securities** 86 694 421 788 -234 -162 -496 -481 -33 -12 7 -317 -167

Total fund balance change 1,494 2,576 2,261 2,405 2,616 2,516 2,325 2,242 2,918 2,660 1,766 2,457 2,794

Ending Fund Balance 108,940 107,446 104,870 102,609 100,204 97,588 95,072 92,747 90,506 87,588 84,928 83,162 80,704

Percent change from 

 four quarters earlier 8.72 10.10 10.31 10.63 10.72 11.42 11.95 11.53 12.14 12.42 13.06 14.55 15.10

Reserve Ratio (%) 1.41 1.40 1.36 1.36 1.36 1.33 1.30 1.30 1.27 1.24 1.20 1.20 1.18

Estimated Insured 

Deposits 7,736,888 7,692,823 7,699,601 7,525,393 7,377,158 7,355,373 7,334,658 7,156,067 7,101,090 7,049,332 7,081,096 6,917,200 6,817,375

Percent change from 

 four quarters earlier 4.88 4.59 4.98 5.16 3.89 4.34 3.58 3.45 4.16 5.62 6.29 6.11 6.41

Domestic Deposits 13,018,939 12,788,773 12,725,363 12,659,395 12,367,954 12,280,904 12,305,817 12,129,503 11,966,478 11,827,933 11,856,691 11,693,371 11,506,877

Percent change from 

 four quarters earlier 5.26 4.14 3.41 4.37 3.36 3.83 3.79 3.73 3.99 5.20 6.28 6.76 7.56

Assessment Base*** 15,901,944 15,680,460 15,560,454 15,450,503 15,227,783 15,112,230 15,068,162 15,000,707 14,833,667 14,702,427 14,620,376 14,562,697 14,382,474

Percent change from 

 four quarters earlier 4.43 3.76 3.27 3.00 2.66 2.79 3.06 3.01 3.14 3.60 4.48 5.28 5.27

Number of Institutions 

Reporting 5,265 5,312 5,371 5,415 5,486 5,551 5,616 5,679 5,747 5,796 5,865 5,922 5,989

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

9/16 $80,704 $6,817,375

12/16 83,162 6,917,200

3/17 84,928 7,081,096

6/17 87,588 7,049,332

9/17 90,506 7,101,090

12/17 92,747 7,156,067

3/18 95,072 7,334,658

6/18 97,588 7,355,373

9/18 100,204 7,377,158

12/18 102,609 7,525,393

3/19 104,870 7,699,601

6/19 107,446 7,692,823

9/19 108,940 7,736,888

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2019  2018** ** 2018 2017 2016 2015 2014 2013

Problem Institutions

Number of institutions 55 71 60 95 123 183 291 467

Total assets $48,779 $53,289 $48,489 $13,939 $27,624 $46,780 $86,712 $152,687

Failed Institutions

Number of institutions 1 0 0 8 5 8 18 24

Total assets***** $37 $0 $0 $5,082 $277 $6,706 $2,914 $6,044

* Quarterly financial statement results are unaudited.

** Includes unrealized postretirement benefit gain (loss).

*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

  Through September 30.

** *** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

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

(dollar figures in millions)

September 30, 2019

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 4,587 $17,307,998 $12,051,029 $6,943,568

 FDIC-Supervised 3,053 2,729,431 2,167,428 1,469,880

 OCC-Supervised 791 11,627,158 7,820,106 4,360,055

 Federal Reserve-Supervised 743 2,951,410 2,063,496 1,113,634

FDIC-Insured Savings Institutions 669 1,172,424 928,712 758,620

 OCC-Supervised 303 766,108 621,099 518,429

 FDIC-Supervised 331 380,229 286,432 222,958

 Federal Reserve-Supervised 35 26,086 21,181 17,233

Total Commercial Banks and Savings Institutions 5,256 18,480,422 12,979,742 7,702,188

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 82,432 39,198 34,700

Total FDIC-Insured Institutions 5,265 18,562,854 13,018,939 7,736,888

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

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

Quarter Ending June 30, 2019 (dollar figures in billions)

Annual Rate in Basis Points*

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base**

Percent of Total 

Assessment Base

1.50 - 3.00 3,359 63.23 $9,146.7 58.33

3.01 - 6.00 1,389 26.15 5,584.2 35.61

6.01 - 10.00 438 8.25 822.2 5.24

10.01 - 15.00 61 1.15 99.4 0.63

15.01 - 20.00 54 1.02 15.0 0.10

20.01 - 25.00 6 0.11 1.3 0.01

> 25.00 5 0.09 11.7 0.07

* Assessment rates do not incorporate temporary surcharges on large banks.

** Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as required by the Dodd-Frank Act.
2019 • Volume 1 3 • Number 4

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

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

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call Report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://www.fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered 

community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), 

problem institutions, failed institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository insti1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

tutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions 

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports (TFR) submitted 

by all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

which is the sum of the individual numerator values divided by the 

sum of individual denominator values. All asset and liability figures 

used in calculating performance ratios represent average amounts for 

the period (beginning-of-period amount plus end-of-period amount 

plus any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

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

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

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

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup. When community 

bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions 

that were subsequently merged into current community banks.

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home 

state. In addition, institutions may relocate across state lines or 

change their charters, resulting in an inter-regional or inter-industry 

migration; institutions can move their home offices between regions, 

savings institutions can convert to commercial banks, or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Financial accounting pronouncements by the Financial Accounting 

Standards Board (FASB) can result in changes in an individual 

bank’s accounting policies and in the Call Reports they submit. Such 

accounting changes can affect the aggregate amounts presented in the 

QBP for the current period and the period-to-period comparability of 

such financial data. 

The current quarter’s Financial Institution Letter (FIL) and related 

Call Report supplemental instructions can provide additional explanation to the QBP reader beyond any material accounting changes 

discussed in the QBP analysis.

https://www.fdic.gov/news/news/financial/2019/fil19055.html

https://www.fdic.gov/news/news/financial/2019/fil19055.pdf

https://www.fdic.gov/regulations/resources/call/call.html

Further information on changes in financial statement presentation, 

income recognition and disclosure is available from the FASB. http://

www.fasb.org/jsp/FASB/Page/LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of deposits in banks’ domestic offices with certain 

adjustments.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 
2019 • Volume 1 3 • Number 4

28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity Tier 1 capital ratio – ratio of common equity 

Tier 1 capital to risk-weighted assets. Common equity Tier 1 capital 

includes common stock instruments and related surplus, retained 

earnings, accumulated other comprehensive income (AOCI), and 

limited amounts of common equity Tier 1 minority interest, minus 

applicable regulatory adjustments and deductions. Items that are fully 

deducted from common equity Tier 1 capital include goodwill, other 

intangible assets (excluding mortgage servicing assets) and certain 

deferred tax assets; items that are subject to limits in common equity 

Tier 1 capital include mortgage servicing assets, eligible deferred tax 

assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative plus an additional amount for potential future credit exposure 

based on the notional amount, the remaining maturity and type of 

the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified future 

date, a specific quantity of an underlying variable or index at a 

specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, 

as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.
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FDIC QUARTERLY 29

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning 

March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Beginning September 30, 2009, insured deposits include deposits in 

accounts of $100,000 to $250,000 that are covered by a temporary 

increase in the FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and Consumer 

Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. 

Also, the Dodd-Frank Act amended the Federal Deposit Insurance 

Act to include noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing transaction accounts were fully insured, without 

limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on the 

balance sheet—including trading assets and liabilities, available-forsale securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 

of fair values. During periods of market stress, the fair values of some 

financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC-insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships, and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, 

less subsequent quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other loans 

secured by real estate.

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

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

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

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

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions that 

actually filed a financial report.

New reporters – insured institutions filing quarterly financial reports 

for the first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that filed a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.
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30 FDIC QUARTERLY

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet 

items multiplied by risk-weights that range from zero to 200 percent. 

A conversion factor is used to assign a balance sheet equivalent 

amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity” 

(reported at amortized cost (book value)), securities designated as 

“available-for-sale” (reported at fair (market) value), and equity 

securities with readily determinable fair values not held for trading.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for 

income taxes. Thrift Financial Report (TFR) filers also include gains 

(losses) on the sales of assets held for sale. (TFR filers began filing 

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

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have been 

securitized, except an interest that is a form of recourse or other 

seller-provided credit enhancement. Seller’s interests differ from 

the securities issued to investors by the securitization structure. The 

principal amount of a seller’s interest is generally equal to the total 

principal amount of the pool of assets included in the securitization 

structure less the principal amount of those assets attributable to 

investors, i.e., in the form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending Fund 

(SBLF) was enacted into law in September 2010 as part of the Small 

Business Jobs Act of 2010 to encourage lending to small businesses 

by providing capital to qualified community institutions with assets 

of less than $10 billion. The SBLF Program is administered by the 

U.S. Treasury Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx).

Under the SBLF Program, the Treasury Department purchased 

noncumulative perpetual preferred stock from qualifying depository 

institutions and holding companies (other than Subchapter S and 

mutual institutions). When this stock has been issued by a depository 

institution, it is reported as “Perpetual preferred stock and related 

surplus.” For regulatory capital purposes, this noncumulative 

perpetual preferred stock qualifies as a component of Tier 1 capital. 

Qualifying Subchapter S corporations and mutual institutions issue 

unsecured subordinated debentures to the Treasury Department 

through the SBLF. Depository institutions that issued these 

debentures report them as “Subordinated notes and debentures.” 

For regulatory capital purposes, the debentures are eligible for 

inclusion in an institution’s Tier 2 capital in accordance with their 

primary federal regulator’s capital standards. To participate in the 

SBLF Program, an institution with outstanding securities issued 

to the Treasury Department under the Capital Purchase Program 

(CPP) was required to refinance or repay in full the CPP securities 

at the time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP remain 

outstanding after the refinancing of the CPP stock through the SBLF 

Program unless the institution chooses to repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal income 

tax purposes. It is generally not subject to any federal income taxes at 

the corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings.

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the assets 

of the financial institution.

Unearned income and contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured 

by commercial real estate, and unused commitments to originate 

or purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.