FDIC Quarterly 1 2014, Volume 8, No. 3

Quarterly Banking Profile Second Quarter 2014

Lower Expenses Contribute to Improvement 

in Earnings

The impact of the rise in medium- and long-term interest rates in second quarter 2013 remained evident in 

year-over-year earnings comparisons in second quarter 

2014. The negative effect on noninterest income, 

particularly income from mortgage lending and from 

trading, was greater at large banks, while the positive 

implications of a steeper yield curve for net interest 

margins, combined with strengthening loan growth, 

were more significant for smaller institutions. The 6,656 

FDIC-insured institutions filing financial results for 

second quarter 2014 reported combined net income of 

$40.2 billion. This is $2 billion (5.3 percent) more than 

the industry reported in second quarter 2013. Net operating revenue (the sum of net interest income and total 

noninterest income) was $1.5 billion (0.9 percent) 

lower than in second quarter 2013, as a decline in 

noninterest income from mortgage sales, securitization, 

and servicing outweighed an increase in net interest 

income. Earnings benefited from lower expenses for 

loan-loss provisions, goodwill impairment, and payrolls. 

A majority of banks—57.5 percent—reported year-overyear increases in quarterly earnings, and only 6.8 percent 

of banks were unprofitable, down from 8.4 percent a 

year ago. This is the lowest proportion of unprofitable 

institutions since first quarter 2006. The average return 

on assets for the quarter was 1.07 percent, slightly above 

the 1.06 percent average in the year-ago quarter.

Revenues Decline From Year-Ago Level for 

Fourth Consecutive Quarter

Net interest income posted the largest year-over-year 

increase in 14 quarters, rising by $2 billion (1.9 

percent), as interest-earning assets were 6.4 percent 

above year-ago levels. Almost 72 percent of all institutions reported year-over-year growth in quarterly net 

interest income. The average net interest margin fell to 

3.15 percent from 3.25 percent in second quarter 2013. 

This is the lowest quarterly margin for the industry since 

third quarter 1989. Margin pressure was most evident at 

large banks. Nine of the ten largest banks reported 

lower quarterly margins than a year ago, whereas 55.2 

percent of all banks reported year-over-year margin 

■ Quarterly Net Income of $40.2 Billion Is 5.3 Percent Higher Than a Year Ago

■ Net Interest Income Posts $2 Billion Year-Over-Year Increase

■ Lower Income From Mortgage Activities Contributes to $3.6 Billion Drop in 

Noninterest Income

■ Loan Growth Rises to Post-Crisis High

■ Number of Banks on “Problem List” Falls Below 400

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income

All FDIC-Insured Institutions Billions of Dollars

Source: FDIC.

-$20

-$10

$0

$10

$20

$30

$40

$50

1234123412 3 4 1234123412

-6.1

-12.6

2009 2010

2.1

-1.7

17.4

20.923.821.4

28.7

2011

28.5

35.2

25.3

34.8

2012

34.4

37.534.5

2013

40.438.236.1

39.837.3

2014

40.2

Securities and Other Gains/Losses, Net

Net Operating Income

Chart 1 Chart 2

Unprotable Institutions and Institutions

With Increased Earnings

Percentage of All FDIC-Insured Institutions

Source: FDIC.

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011 2012 2013 2014

Percentage of Institutions With Quarterly Losses

Percentage of Institutions With Year-Over-Year

Quarterly Income Growth
FDIC Quarterly 2 2014, Volume 8, No. 3

increases. Noninterest income was $3.6 billion (5.3 

percent) lower than a year earlier, as income from sales, 

securitization, and servicing of 1-to-4 family residential 

mortgages fell by $3.7 billion (42.5 percent). Trading 

income declined for a fourth consecutive quarter, falling 

by $721 million (10.1 percent). Reduced expenses 

outweighed the weakness in revenues compared with 

the year before. Banks set aside $6.6 billion in provisions for loan and lease losses during the quarter, a 

$1.9 billion (22.4 percent) decline from second quarter 

2013 and the lowest quarterly provision total since 

second quarter 2006. Expenses for goodwill impairment 

totaled $192 million, down from $4.4 billion in second 

quarter 2013, when two institutions reported large 

impairment charges. Expenses for salaries and employee 

benefits were $399 million (0.8 percent) lower as the 

industry reported 37,282 fewer employees than the year 

before. Itemized litigation expenses were $2 billion 

higher than in second quarter 2013.

Charge-Offs Fall to Seven-Year Low

Loan losses declined year over year for a 16th consecutive quarter, falling to $9.9 billion from $14.1 billion in 

second quarter 2013. This is the lowest quarterly net 

charge-off total for the industry since second quarter 

2007. The decline was led by 1-to-4 family residential 

mortgage loans, where net charge-offs fell by $2.2 

billion (74.7 percent). Net charge-offs were down year 

over year in all major loan categories except auto loans, 

where charge-offs increased $31 million (10.4 percent). 

Slightly more than half of all banks—50.8 percent—

reported lower quarterly net charge-offs than in second 

quarter 2013.

Noncurrent Loan Rate Falls to Six-Year Low

Noncurrent loan balances improved for a 17th consecutive quarter, falling by $13.4 billion (6.9 percent) 

during the three months ended June 30. Noncurrent 

balances declined in all major loan categories except 

auto loans, where they increased by $28 million 

(3.2 percent). The largest decline occurred in noncurrent 1-to-4 family residential mortgages, which fell by 

$8 billion (6.4 percent). Noncurrent real estate loans 

secured by nonfarm nonresidential properties fell by 

$1.9 billion (9.6 percent), and noncurrent real estate 

construction loans declined by $1.2 billion (15.9 

percent). At the end of the quarter, the industry’s 

noncurrent loan rate was 2.24 percent, the lowest level 

since second quarter 2008.

Reserve Coverage of Noncurrent Loans Improves 

for Seventh Consecutive Quarter

Loan-loss reserves declined for a 17th consecutive quarter, as charge-offs removed more from reserves than 

banks added in provisions. Reserve balances fell by 

$4.1 billion (3.1 percent) during the quarter, as net 

charge-offs exceeded loss provisions by $3.3 billion. 

More than one-third of all banks (38.3 percent) 

reduced their loan-loss reserves. Despite the decline in 

reserves, the industry’s coverage ratio of reserves to 

noncurrent loans and leases rose from 67.8 percent to 

70.5 percent, thanks to the larger reduction in noncurrent loan balances. This is the seventh consecutive 

quarter that the coverage ratio has improved. The ratio 

is at its highest level since year-end 2008.

Chart 4

Quarterly Noninterest Income From Sale, Securitization, 

and Servicing of 1-to-4 Family Residential Mortgage Loans* Billions of Dollars

Source: FDIC.

*Beginning in Q4 2008, includes income from HELOCs. Call Reporters only, subject to 

de minimis reporting conditions.

1.51.2

-0.8

1.2 1.71.50.9

4.7

7.1

4.7

5.6

3.7

4.3

6.2

3.63.23.7

8.0

7.3

8.8

7.47.5

8.6

4.7

5.3

3.5

5.0

0.9

4.4 4.7

-$2

$0

$2

$4

$6

$8

$10

1 2 341234123412341234 1 2 3 4 1 2 3 4 1 2

2007 2008 2009 2010 2011 2012 2013 2014

Chart 3

Quarterly Net Operating Revenue

All FDIC-Insured Institutions

Billions of Dollars

Source: FDIC.

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

12341234 1234123 41234123 4123412

2007 2008 2009 2010 2011 2012 2013 2014

Quarterly Noninterest Income

Quarterly Net Interest Income
FDIC Quarterly 3 2014, Volume 8, No. 3

Quarterly Banking Profile

Rebound in Securities Values Bolsters 

Equity Growth

Equity capital rose by $34.2 billion (2 percent) during 

the quarter. Retained earnings added $17.6 billion to 

equity growth. Lower interest rates produced a $20 

billion increase in unrealized gains on available-for-sale 

securities, which also contributed to the growth in 

equity. In addition, goodwill increased by $3.8 billion 

(1.3 percent). Tier 1 regulatory capital, unaffected by 

changes in unrealized securities gains and goodwill, 

increased by $19.8 billion (1.4 percent). The average 

equity-to-assets ratio rose from 11.23 percent to 11.26 

percent, the highest level in almost two years. The 

average Tier 1 leverage ratio rose from 9.54 percent to 

9.57 percent, the highest level for this regulatory capital 

ratio since risk-based capital standards were enacted in 

1991. Insured institutions declared $22.6 billion in 

dividends in second quarter, up from $20.9 billion in 

second quarter 2013. At the end of the quarter, 98.4 

percent of all insured institutions, representing 99.8 

percent of all insured institution assets, met or exceeded 

the requirements for the highest regulatory capital category as defined for Prompt Corrective Action purposes.

Increase in Loan Balances Is Largest Since 2007

Total assets increased by $263.1 billion (1.8 percent), as 

loan and lease balances grew by $178.5 billion (2.3 

percent), investment securities portfolios rose by 

$58.6 billion (1.9 percent), and balances at Federal 

Reserve banks increased by $28.2 billion (2.3 percent). 

The growth in loan balances was the largest quarterly 

increase since fourth quarter 2007 (excluding a change 

in accounting rules in first quarter 2010). Loan growth 

was led by commercial and industrial loans (up $49.9 

billion, 3.1 percent), 1-to-4 family residential mortgages 

(up $22.7 billion, 1.2 percent), credit card balances (up 

$20 billion, 3 percent), and auto loans (up $10.9 

billion, 3 percent). All major loan categories posted 

increases during the quarter except home equity lines of 

credit (down $4.4 billion, 0.9 percent). Loans to small 

businesses and farms rose by $8.2 billion (1.3 percent), 

the largest quarterly increase since banks began reporting small-business loan data on a quarterly basis in 

2010. Banks’ holdings of available-for-sale securities 

increased by $13.9 billion (0.6 percent), as a result of a 

$20 billion increase in their market values; the book 

value of the industry’s available-for-sale portfolio registered a slight $6.1 billion decline. In contrast, banks 

increased their portfolios of held-to-maturity securities 

by $44.7 billion (8.3 percent). Unfunded loan commitments increased by $132.2 billion (2.1 percent), the 

largest quarterly increase since first quarter 2010. 

Growth in unfunded commitments was led by a 

$44.5 billion (2.8 percent) increase in unfunded 

commercial and industrial loan commitments.

Chart 5

Year-Over-Year Change in Quarterly Loan-Loss Provisions

All FDIC-Insured Institutions

Billions of Dollars

Source: FDIC.

-$35

-$30

-$25

-$20

-$15

-$10

-$5

$0

12341234123 4 1 2

-30.7

-1.9

2011 2012 2013 2014

Chart 6

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

All FDIC-Insured Institutions

Percent

Source: FDIC.

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013 2014

Noncurrent Loan Rate

Quarterly Net Charge-Off Rate
FDIC Quarterly 4 2014, Volume 8, No. 3

Large Denomination Noninterest-Bearing Deposits 

Post Strong Growth

Total deposits increased by $172.4 billion (1.5 percent) 

in the quarter. Growth was led by balances in accounts 

larger than $250,000, which increased by $157.5 billion 

(3.2 percent). Balances in domestic deposit accounts of 

$250,000 or less declined by $13.5 billion (0.3 percent). 

Noninterest-bearing accounts in domestic offices were 

up $115 billion (4.3 percent), while deposits in foreign 

offices rose by $35.8 billion (2.6 percent). Nondeposit 

liabilities increased by $56.5 billion (3 percent), as 

banks increased their borrowings from Federal Home 

Loan Banks by $45.6 billion (11.6 percent). Almost 90 

percent of the growth in FHLB advances consisted of 

short-term borrowings (maturing or repricing in one 

year or less). Banks also increased their unsecured 

nondeposit borrowings that mature in one to three 

years by $17.5 billion (21.7 percent). Almost 90 

percent of the $228.9 billion increase in liabilities 

during the quarter consisted of liabilities maturing or 

repricing in one year or less.

“Problem List” Shrinks to Smallest Level in 

Over Five Years

The number of insured institutions filing quarterly 

financial reports declined from 6,730 to 6,656 in the 

second quarter. Mergers absorbed 61 institutions during 

the quarter, while seven institutions failed. No new 

charters were added in the quarter. The number of 

institutions on the FDIC’s “Problem List” declined from 

411 to 354. This is the smallest number of “problem” 

institutions since the end of first quarter 2009, and is 60 

percent below the most recent peak level of 888 “problem” institutions at the end of first quarter 2011. Total 

assets of “problem” institutions declined from $126.1 

billion to $110.2 billion. The number of full-time 

equivalent employees at FDIC-insured institutions 

increased from 2,058,867 to 2,060,002, but remained 

below the year-earlier level of 2,097,284.

Author: Ross Waldrop, Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

Chart 7

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Billions of Dollars

43

189

237

203

61

28

-6

-116-140

-109

-210

-133 -107

-7 -14

-126

67

24

-63

102

65

118

-37

73 70 91

38

178

221*

134

-$250

-$200

-$150

-$100

-$50

$0

$50

$100

$150

$200

$250

$300

1 2 3412 341 234 1 2 3 4 1 2 3 4 1 2 3 4 1234 1 2

2007 2008 2009 2010

Source: FDIC.

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

loan balances back onto banks’ balance sheets in the first quarter of 2010. Although the 

total amount consolidated cannot be precisely quantified, the industry would have reported

a decline in loan balances for the quarter absent this change in accounting standards. 

2011 2012 2013 2014

Chart 8

Quarterly Changes in the Number of

Troubled Institutions

Source: FDIC.

27

81

53

111

136

150

73

54

31 24

-23-21-31 -40-38

-43

-39

-59

-38-48-56-57

50 45

41

45

41

30

26 22 26 18 16 15 12 8 12 14

54

4

-41

27

81

53

111

136

150

73

54

31 24

-23-21-31 -40-38

-43

-39

-59

-38-48-56-57

14

54

4

-41

2

2

9

12

21

24

4 6 2 5 7

-75

-50

-25

0

25

50

75

100

125

150

175

200

12341 234 123 4123 412 341 2 3 4 1 2

2008 2009 2010 2011 2012 2013 2014

Quarterly Failures

Net Quarterly Change in 

Number of Problem Banks
FDIC Quarterly 5 2014, Volume 8, No. 3

Quarterly Banking Profile

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2014** 2013** 2013 2012 2011 2010 2009

Return on assets (%)������������������������������������������������������������������������������������������������������ 1.04 1.09 1.07 1.00 0.88 0.6

Return on equity (%)������������������������������������������������������������������������������������������������������� 9.27 9.74 9.54 8.91 7.79 5.8

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 9.57 9.34 9.41 9.15 9.07 8.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 1.40 1.90 1.63 2.20 2.61 3.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 0.51 0.78 0.69 1.10 1.55 2.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 5.28 2.66 1.88 4.02 4.30 1.7

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.16 3.26 3.26 3.42 3.60 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 0.12 16.81 12.84 17.81 43.57 1594.54 

Number of institutions reporting������������������������������������������������������������������������������������� 6,656 6,940 6,812 7,083 7,357 7,658 8,012

Commercial banks��������������������������������������������������������������������������������������������������� 5,757 5,980 5,876 6,096 6,291 6,530 6,840

Savings institutions ������������������������������������������������������������������������������������������������� 899 960 936 987 1,066 1,128 1,172

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 6.64 8.24 8.16 10.97 16.22 22.1

Number of problem institutions �������������������������������������������������������������������������������������� 354 553 467 651 813 884 702

Assets of problem institutions (in billions) ��������������������������������������������������������������������� $110 $192 $153 $233 $319 $390 $403

Number of failed institutions������������������������������������������������������������������������������������������� 12 16 24 51 92 157 140

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

* Excludes insured branches of foreign banks (IBAs)

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

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

(dollar figures in millions)  2nd Quarter

2014

1st Quarter

2014

2nd Quarter

2013

%Change 

13Q2-14Q2

Number of institutions reporting������������������������������������������������������������������������������������� 6,656 6,730 6,940 -4.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 2,060,002 2,058,867 2,097,284 -1.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $15,164,599 $14,901,492 $14,404,747 5.

Loans secured by real estate���������������������������������������������������������������������������������� 4,123,542 4,075,607 4,048,096 1.

 1-4 Family residential mortgages �������������������������������������������������������������������� 1,844,997 1,822,297 1,856,242 -0.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 1,125,522 1,117,464 1,083,214 3.

 Construction and development 223,171 214,617 202,575 10.

 Home equity lines��������������������������������������������������������������������������������������������� 499,166 503,520 528,652 -5.

Commercial & industrial loans �������������������������������������������������������������������������������� 1,664,131 1,614,234 1,519,515 9.

Loans to individuals������������������������������������������������������������������������������������������������� 1,366,728 1,326,971 1,310,289 4.

 Credit cards ������������������������������������������������������������������������������������������������������ 678,337 658,386 670,289 1.

Farm loans��������������������������������������������������������������������������������������������������������������� 69,630 64,926 65,039 7.

Other loans & leases����������������������������������������������������������������������������������������������� 887,165 851,019 791,223 12.

Less: Unearned income ������������������������������������������������������������������������������������������ 1,854 1,901 1,831 1.

Total loans & leases ������������������������������������������������������������������������������������������������ 8,109,343 7,930,878 7,732,331 4.

Less: Reserve for losses����������������������������������������������������������������������������������������� 128,204 132,335 149,056 -14.

Net loans and leases����������������������������������������������������������������������������������������������� 7,981,139 7,798,543 7,583,275 5.

Securities����������������������������������������������������������������������������������������������������������������� 3,113,081 3,054,500 2,945,330 5.

Other real estate owned������������������������������������������������������������������������������������������ 27,898 29,362 32,627 -14.

Goodwill and other intangibles ������������������������������������������������������������������������������� 365,586 365,490 367,073 -0.

All other assets�������������������������������������������������������������������������������������������������������� 3,676,894 3,653,596 3,476,442 5.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 15,164,599 14,901,492 14,404,747 5.

Deposits������������������������������������������������������������������������������������������������������������������� 11,490,259 11,317,852 10,780,467 6.

 Domestic office deposits���������������������������������������������������������������������������������� 10,058,717 9,922,103 9,395,525 7.

 Foreign office deposits������������������������������������������������������������������������������������� 1,431,542 1,395,749 1,384,942 3.

Other borrowed funds ��������������������������������������������������������������������������������������������� 1,378,186 1,342,993 1,328,800 3.

Subordinated debt��������������������������������������������������������������������������������������������������� 97,802 95,451 113,621 -13.

All other liabilities ���������������������������������������������������������������������������������������������������� 482,169 463,191 558,546 -13.

Total equity capital (includes minority interests)���������������������������������������������������� 1,716,183 1,682,005 1,623,313 5.

 Bank equity capital������������������������������������������������������������������������������������������� 1,707,437 1,673,268 1,608,497 6.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 65,711 69,539 75,318 -12.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 181,757 195,185 239,309 -24.

Restructured loans and leases �������������������������������������������������������������������������������������� 94,202 97,144 102,074 -7.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 1,700,887 1,690,536 1,678,439 1.

Earning assets���������������������������������������������������������������������������������������������������������������� 13,516,296 13,267,222 12,704,541 6.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 437,650 392,000 369,402 18.

Unused loan commitments��������������������������������������������������������������������������������������������� 6,346,021 6,213,822 5,992,559 5.

Trust assets��������������������������������������������������������������������������������������������������������������������� 18,344,120 20,192,402 18,123,850 1.

Assets securitized and sold ������������������������������������������������������������������������������������������� 965,835 722,091 765,366 26.

Notional amount of derivatives��������������������������������������������������������������������������������������� 239,197,271 233,457,327 236,532,240 1.

INCOME DATA

First Half

 2014

First Half

 2013 %Change

2nd Quarter 

2014

2nd Quarter 

2013

%Change 

13Q2-14Q2

Total interest income ������������������������������������������������������������������� $233,131 $234,917 -0.8 $117,426 $117,104 0

Total interest expense ����������������������������������������������������������������� 23,859 27,852 -14.3 11,976 13,665 -12

Net interest income �������������������������������������������������������������� 209,271 207,065 1.1 105,450 103,439 1

Provision for loan and lease losses �������������������������������������������� 14,190 19,385 -26.8 6,593 8,491 -22

Total noninterest income������������������������������������������������������������� 123,015 133,709 -8.0 63,542 67,093 -5

Total noninterest expense ����������������������������������������������������������� 206,780 208,420 -0.8 104,902 106,429 -1

Securities gains (losses)������������������������������������������������������������� 1,595 3,439 -53.6 770 1,371 -43

Applicable income taxes ������������������������������������������������������������� 35,075 37,301 -6.0 17,766 18,521 -4

Extraordinary gains, net�������������������������������������������������������������� -4 -92 N/M -80 -33 N/M

Total net income (includes minority interests)��������������������� 77,833 79,015 -1.5 40,421 38,429 5

 Bank net income������������������������������������������������������������ 77,462 78,588 -1.4 40,243 38,200 5

Net charge-offs���������������������������������������������������������������������������� 20,286 29,934 -32.2 9,921 14,066 -29

Cash dividends ���������������������������������������������������������������������������� 42,478 35,334 20.2 22,625 20,934 8

Retained earnings ����������������������������������������������������������������������� 34,984 43,254 -19.1 17,618 17,266 2

Net operating income����������������������������������������������������������� 76,712 76,624 0.1 39,966 37,490 6

N/M - Not Meaningful
FDIC Quarterly 6 2014, Volume 8, No. 3

TABLE III-A. Second Quarter 2014, All FDIC-Insured Institutions

Asset Concentration Groups*

SECOND QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,656 16 4 1,493 3,300 570 56 390 765 62

Commercial banks������������������������������������� 5,757 13 4 1,473 2,975 173 44 354 668 53

Savings institutions ����������������������������������� 899 3 0 20 325 397 12 36 97 9

Total assets (in billions)������������������������������������ $15,164.6 $601.2 $3,794.6 $250.6 $5,059.5 $458.5 $212.7 $63.0 $138.

Commercial banks������������������������������������� 14,106.1 517.3 3,794.6 245.1 4,662.9 166.1 127.6 58.2 117

Savings institutions ����������������������������������� 1,058.5 83.9 0.0 5.6 396.7 292.5 85.2 4.8 

Total deposits (in billions)��������������������������������� 11,490.3 344.7 2,711.2 207.9 3,917.8 340.8 174.6 51.5 116

Commercial banks������������������������������������� 10,683.1 285.3 2,711.2 204.5 3,628.2 126.6 103.7 48.2 98

Savings institutions ����������������������������������� 807.2 59.4 0.0 3.4 289.6 214.2 71.0 3.4 

Bank net income (in millions) ��������������������������� 40,243 4,515 8,229 752 12,658 995 571 326 309 11,888

Commercial banks������������������������������������� 37,253 3,589 8,229 724 11,879 458 343 187 283 11,561

Savings institutions ����������������������������������� 2,990 926 0 27 779 537 228 139 27 327

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������ 3.51 9.94 2.75 4.12 3.87 3.62 3.87 3.07

Cost of funding earning assets ������������������������ 0.36 0.67 0.38 0.49 0.40 0.67 0.44 0.38

Net interest margin������������������������������������ 3.15 9.27 2.37 3.63 3.46 2.95 3.43 2.70

Noninterest income to assets��������������������������� 1.69 4.33 1.82 0.62 1.33 1.00 1.21 4.85

Noninterest expense to assets������������������������� 2.79 6.01 2.59 2.48 2.89 2.47 2.45 4.53

Loan and lease loss provision to assets���������� 0.18 2.00 0.09 0.10 0.12 0.09 0.38 0.03

Net operating income to assets ����������������������� 1.06 3.04 0.88 1.18 1.01 0.85 1.08 2.02

Pretax return on assets ������������������������������������ 1.55 4.86 1.21 1.42 1.43 1.24 1.64 2.81

Return on assets����������������������������������������������� 1.07 3.03 0.88 1.20 1.01 0.87 1.08 2.07

Return on equity ����������������������������������������������� 9.54 20.62 9.33 10.79 8.43 7.48 11.06 15.04

Net charge-offs to loans and leases���������������� 0.50 2.96 0.77 0.12 0.26 0.25 0.45 0.28

Loan and lease loss provision to 

net charge-offs���������������������������������������������� 66.45 87.61 33.70 128.02 70.63 61.92 117.07 42.18 7

Efficiency ratio �������������������������������������������������� 60.96 45.18 65.79 62.04 63.92 65.11 53.98 61.60 7

% of unprofitable institutions���������������������������� 6.76 0.00 0.00 3.01 7.36 10.00 5.36 10.77

% of institutions with earnings gains���������������� 57.45 43.75 0.00 56.53 61.09 51.58 42.86 55.64 5

Structural Changes

New reporters�������������������������������������������� 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������� 61 0 0 11 46 2 0 0 1 1

Failed institutions �������������������������������������� 7 0 0 1 3 1 0 0 2 0

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%)��������������������������������2013 1.06 3.27 1.03 1.21 0.79 1.07 1.68 1.79

��������������������������������������2011 0.85 3.96 0.46 1.12 0.71 0.55 1.67 1.94

������������������������������������� 2009 -0.38 -7.92 -0.54 0.78 -0.20 0.56 0.64 1.28

Net charge-offs to loans & leases (%) �����2013 0.73 3.38 1.05 0.14 0.46 0.41 1.07 0.45

��������������������������������������2011 1.59 5.58 1.43 0.37 1.27 1.03 1.79 0.41

������������������������������������� 2009 2.57 10.78 3.07 0.61 2.07 1.27 2.80 0.71

* See Table V-A (page 10) for explanations

Note: Blue font identifies data that are also presented in the prior quarters’ data at bottom of table
FDIC Quarterly 7 2014, Volume 8, No. 3

Quarterly Banking Profile

TABLE III-A. Second Quarter 2014, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

SECOND QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,656 1,975 4,007 565 109 823 837 1,444 1,629 1,398 525

Commercial banks������������������������������������������� 5,757 1,744 3,469 451 93 456 756 1,201 1,560 1,306 478

Savings institutions ����������������������������������������� 899 231 538 114 16 367 81 243 69 92 47

Total assets (in billions)������������������������������������������ $15,164.6 $116.3 $1,234.7 $1,493.0 $12,320.7 $3,048.0 $3,049.5 $3,480.3 $3,302.9 $893

Commercial banks������������������������������������������� 14,106.1 102.9 1,044.1 1,198.0 11,761.1 2,579.3 2,962.4 3,368.8 3,242.4 78

Savings institutions ����������������������������������������� 1,058.5 13.4 190.6 295.0 559.6 468.7 87.1 111.5 60.5 

Total deposits (in billions)��������������������������������������� 11,490.3 98.3 1,029.6 1,161.6 9,200.8 2,271.1 2,353.3 2,528.9 2,518.9 74

Commercial banks������������������������������������������� 10,683.1 87.8 877.7 941.9 8,775.7 1,932.8 2,288.3 2,445.7 2,471.2 

Savings institutions ����������������������������������������� 807.2 10.5 151.9 219.7 425.1 338.4 65.0 83.2 47.7

Bank net income (in millions) ��������������������������������� 40,243 251 3,118 3,866 33,009 7,273 6,977 9,055 9,356 2,596 4,986

Commercial banks������������������������������������������� 37,253 226 2,701 3,201 31,125 6,509 6,803 8,712 9,253 2,239 3,738

Savings institutions ����������������������������������������� 2,990 25 416 665 1,883 764 174 343 104 357 1,248

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������������ 3.51 4.14 4.19 4.23 3.35 3.73 3.44 2.78 3.7

Cost of funding earning assets ������������������������������ 0.36 0.48 0.50 0.44 0.33 0.41 0.30 0.29 0.4

Net interest margin������������������������������������������ 3.15 3.65 3.69 3.79 3.01 3.33 3.14 2.49 3.3

Noninterest income to assets��������������������������������� 1.69 1.10 1.10 1.24 1.81 1.54 1.64 2.00 1.5

Noninterest expense to assets������������������������������� 2.79 3.38 3.13 3.11 2.72 2.77 2.96 2.70 2.6

Loan and lease loss provision to assets���������������� 0.18 0.09 0.12 0.14 0.19 0.30 0.16 0.08 0.1

Net operating income to assets ����������������������������� 1.06 0.83 0.99 1.04 1.08 0.97 0.89 1.05 1.1

Pretax return on assets ������������������������������������������ 1.55 1.01 1.28 1.46 1.59 1.46 1.32 1.42 1.6

Return on assets����������������������������������������������������� 1.07 0.86 1.01 1.05 1.08 0.97 0.92 1.05 1.1

Return on equity ����������������������������������������������������� 9.54 7.15 9.23 8.79 9.69 8.09 7.42 10.69 10.95 

Net charge-offs to loans and leases���������������������� 0.50 0.18 0.23 0.26 0.57 0.72 0.38 0.34 0.6

Loan and lease loss provision to 

net charge-offs���������������������������������������������������� 66.45 83.99 84.34 80.99 64.43 77.26 71.03 51.85 43.96 9

Efficiency ratio �������������������������������������������������������� 60.96 75.80 69.22 64.56 59.52 59.09 66.69 63.57 57.82 

% of unprofitable institutions���������������������������������� 6.76 12.15 4.84 2.83 0.00 7.78 10.16 7.69 4.3

% of institutions with earnings gains���������������������� 57.45 52.51 59.05 63.89 55.05 53.46 59.14 54.50 58.26 

Structural Changes

New reporters�������������������������������������������������� 0 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������������� 61 12 38 10 1 5 11 11 13 12 9

Failed institutions �������������������������������������������� 7 5 2 0 0 1 2 3 0 1 0

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%)��������������������������������������2013 1.06 0.77 0.95 1.27 1.05 0.53 1.02 1.12 1.2

��������������������������������������������2011 0.85 0.53 0.53 0.93 0.88 1.20 0.44 0.71 1.2

������������������������������������������� 2009 -0.38 0.03 -0.17 -0.83 -0.34 -1.91 -0.04 0.18 0.74

Net charge-offs to loans & leases (%) �����������2013 0.73 0.35 0.37 0.43 0.83 1.00 0.70 0.48 0.9

��������������������������������������������2011 1.59 0.63 0.91 1.22 1.76 1.81 1.69 1.30 1.8

������������������������������������������� 2009 2.57 0.91 1.14 2.23 2.89 2.91 2.26 2.40 2.5

* See Table V-A (page 11) for explanations

Note: Blue font identifies data that are also presented in the prior quarters’ data at bottom of table
FDIC Quarterly 8 2014, Volume 8, No. 3

TABLE IV-A. First Half 2014, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST HALF

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,656 16 4 1,493 3,300 570 56 390 765 62

Commercial banks������������������������������������� 5,757 13 4 1,473 2,975 173 44 354 668 53

Savings institutions ����������������������������������� 899 3 0 20 325 397 12 36 97 9

Total assets (in billions)������������������������������������ $15,164.6 $601.2 $3,794.6 $250.6 $5,059.5 $458.5 $212.7 $63.0 $138.

Commercial banks������������������������������������� 14,106.1 517.3 3,794.6 245.1 4,662.9 166.1 127.6 58.2 117

Savings institutions ����������������������������������� 1,058.5 83.9 0.0 5.6 396.7 292.5 85.2 4.8 

Total deposits (in billions)��������������������������������� 11,490.3 344.7 2,711.2 207.9 3,917.8 340.8 174.6 51.5 116

Commercial banks������������������������������������� 10,683.1 285.3 2,711.2 204.5 3,628.2 126.6 103.7 48.2 98

Savings institutions ����������������������������������� 807.2 59.4 0.0 3.4 289.6 214.2 71.0 3.4 

Bank net income (in millions) ��������������������������� 77,462 9,658 15,401 1,438 24,380 1,866 1,105 617 593 22,404

Commercial banks������������������������������������� 71,603 7,762 15,401 1,386 22,849 891 682 358 541 21,733

Savings institutions ����������������������������������� 5,859 1,896 0 52 1,531 975 423 259 52 671

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������ 3.52 10.01 2.75 4.08 3.85 3.65 3.82 3.09

Cost of funding earning assets ������������������������ 0.36 0.66 0.38 0.49 0.41 0.67 0.45 0.38

Net interest margin������������������������������������ 3.16 9.35 2.37 3.59 3.45 2.98 3.37 2.71

Noninterest income to assets��������������������������� 1.65 4.37 1.74 0.60 1.27 1.00 1.14 4.75

Noninterest expense to assets������������������������� 2.78 5.78 2.51 2.48 2.85 2.49 2.35 4.56

Loan and lease loss provision to assets���������� 0.19 2.05 0.12 0.10 0.13 0.15 0.39 0.04

Net operating income to assets ����������������������� 1.03 3.25 0.83 1.14 0.98 0.79 1.06 1.94

Pretax return on assets ������������������������������������ 1.51 5.16 1.18 1.36 1.39 1.19 1.62 2.68

Return on assets����������������������������������������������� 1.04 3.25 0.82 1.16 0.98 0.82 1.06 1.97

Return on equity ����������������������������������������������� 9.27 22.10 8.81 10.46 8.23 7.08 10.88 14.48

Net charge-offs to loans and leases���������������� 0.51 2.98 0.74 0.10 0.26 0.26 0.50 0.21

Loan and lease loss provision to 

net charge-offs���������������������������������������������� 69.95 88.50 46.79 164.59 72.70 97.91 109.58 72.40 8

Efficiency ratio �������������������������������������������������� 61.17 42.96 65.10 62.86 64.35 65.19 53.06 62.69 7

% of unprofitable institutions���������������������������� 6.64 0.00 0.00 2.61 7.36 9.82 7.14 9.49

% of institutions with earnings gains���������������� 55.89 50.00 50.00 56.73 59.03 47.72 30.36 53.59 5

Condition Ratios (%)

Earning assets to total assets �������������������������� 89.13 92.30 87.47 92.56 89.56 93.80 95.09 91.51 9

Loss allowance to:

Loans and leases �������������������������������������� 1.58 3.31 2.01 1.46 1.41 1.26 1.01 1.90

Noncurrent loans and leases �������������������� 70.54 331.46 81.28 137.38 86.32 41.42 87.85 103.77 7

Noncurrent assets plus

other real estate owned to assets ���������������� 1.40 0.78 0.97 0.90 1.43 2.10 0.89 0.84

Equity capital ratio�������������������������������������������� 11.26 14.61 9.42 11.26 12.05 11.71 9.83 13.99 1

Core capital (leverage) ratio ���������������������������� 9.57 12.70 8.36 10.48 10.24 10.97 9.62 13.15 

Tier 1 risk-based capital ratio��������������������������� 12.98 13.18 12.23 14.78 12.77 20.88 13.89 30.26 1

Total risk-based capital ratio ���������������������������� 14.47 15.43 13.13 15.90 14.36 21.94 14.66 31.33 2

Net loans and leases to deposits��������������������� 69.46 131.40 47.90 74.73 86.66 79.31 86.59 33.50 6

Net loans to total assets ���������������������������������� 52.63 75.33 34.23 61.99 67.10 58.94 71.08 27.39 5

Domestic deposits to total assets �������������������� 66.33 54.95 43.96 82.95 76.53 74.14 82.08 80.87 8

Structural Changes

New reporters�������������������������������������������� 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������� 135 0 0 24 93 5 0 2 5 6

Failed institutions �������������������������������������� 12 0 0 1 7 2 0 0 2 0

PRIOR FIRST HALVES

(The way it was...)

Number of institutions ������������������������������2013 6,940 16 4 1,521 3,455 603 47 416 810 68

��������������������������������������2011 7,513 20 4 1,544 3,953 716 72 347 794 63

������������������������������������� 2009 8,195 24 5 1,551 4,637 808 80 294 743 53

Total assets (in billions)����������������������������2013 $14,404.7 $590.5 $3,645.4 $236.0 $4,723.9 $562.0 $103.9 $64.1 $143.

��������������������������������������2011 13,602.6 656.0 3,328.1 204.2 4,132.2 773.8 97.7 50.0 129

������������������������������������� 2009 13,279.7 464.5 3,204.0 170.1 5,947.0 933.4 84.0 36.0 101

Return on assets (%)��������������������������������2013 1.09 3.19 1.00 1.17 0.87 1.01 1.60 1.73

��������������������������������������2011 0.85 3.81 0.53 1.09 0.66 0.49 1.60 1.65

������������������������������������� 2009 -0.26 -9.56 0.05 0.88 -0.18 0.57 0.28 0.73

Net charge-offs to loans & leases (%) �����2013 0.78 3.37 1.12 0.12 0.49 0.42 1.13 0.44

��������������������������������������2011 1.71 6.12 1.69 0.33 1.29 1.01 1.86 0.57

������������������������������������� 2009 2.25 9.57 2.73 0.47 1.76 1.13 2.71 0.81

Noncurrent assets plus 

OREO to assets (%)������������������������������2013 1.90 0.92 1.28 1.03 1.94 2.30 0.89 1.00

��������������������������������������2011 2.76 1.51 1.76 1.62 3.38 2.72 1.00 1.01

������������������������������������� 2009 2.78 2.56 2.25 1.45 3.36 2.96 1.14 0.72

Equity capital ratio (%)������������������������������2013 11.17 15.10 8.87 11.01 11.86 11.23 9.84 14.42 1

��������������������������������������2011 11.29 17.21 8.28 11.26 11.86 10.56 9.93 15.65 1

������������������������������������� 2009 10.42 21.20 8.42 11.08 10.54 9.47 9.95 16.59 1

* See Table V-A (page 10) for explanations

Note: Blue font identifies data that are also presented in the prior halves’ data at bottom of table
FDIC Quarterly 9 2014, Volume 8, No. 3

Quarterly Banking Profile

TABLE IV-A. First Half 2014, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST HALF

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,656 1,975 4,007 565 109 823 837 1,444 1,629 1,398 525

Commercial banks������������������������������������������� 5,757 1,744 3,469 451 93 456 756 1,201 1,560 1,306 478

Savings institutions ����������������������������������������� 899 231 538 114 16 367 81 243 69 92 47

Total assets (in billions)������������������������������������������ $15,164.6 $116.3 $1,234.7 $1,493.0 $12,320.7 $3,048.0 $3,049.5 $3,480.3 $3,302.9 $893

Commercial banks������������������������������������������� 14,106.1 102.9 1,044.1 1,198.0 11,761.1 2,579.3 2,962.4 3,368.8 3,242.4 78

Savings institutions ����������������������������������������� 1,058.5 13.4 190.6 295.0 559.6 468.7 87.1 111.5 60.5 

Total deposits (in billions)��������������������������������������� 11,490.3 98.3 1,029.6 1,161.6 9,200.8 2,271.1 2,353.3 2,528.9 2,518.9 74

Commercial banks������������������������������������������� 10,683.1 87.8 877.7 941.9 8,775.7 1,932.8 2,288.3 2,445.7 2,471.2 

Savings institutions ����������������������������������������� 807.2 10.5 151.9 219.7 425.1 338.4 65.0 83.2 47.7

Bank net income (in millions) ��������������������������������� 77,462 477 5,882 7,546 63,558 14,748 13,607 15,864 18,543 4,989 9,711

Commercial banks������������������������������������������� 71,603 427 5,098 6,328 59,751 13,236 13,256 15,354 18,277 4,312 7,168

Savings institutions ����������������������������������������� 5,859 51 784 1,217 3,807 1,512 351 510 266 678 2,543

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������������ 3.52 4.12 4.17 4.21 3.36 3.77 3.46 2.79 3.7

Cost of funding earning assets ������������������������������ 0.36 0.49 0.51 0.44 0.33 0.41 0.30 0.30 0.4

Net interest margin������������������������������������������ 3.16 3.63 3.66 3.77 3.02 3.37 3.16 2.49 3.3

Noninterest income to assets��������������������������������� 1.65 1.08 1.05 1.21 1.77 1.52 1.65 1.86 1.5

Noninterest expense to assets������������������������������� 2.78 3.37 3.12 3.07 2.70 2.74 3.00 2.67 2.6

Loan and lease loss provision to assets���������������� 0.19 0.09 0.12 0.15 0.20 0.33 0.16 0.11 0.1

Net operating income to assets ����������������������������� 1.03 0.80 0.94 1.01 1.04 0.98 0.87 0.93 1.1

Pretax return on assets ������������������������������������������ 1.51 0.97 1.22 1.44 1.55 1.48 1.30 1.28 1.6

Return on assets����������������������������������������������������� 1.04 0.82 0.96 1.03 1.05 0.99 0.90 0.93 1.1

Return on equity ����������������������������������������������������� 9.27 6.88 8.83 8.68 9.42 8.26 7.31 9.49 10.91 

Net charge-offs to loans and leases���������������������� 0.51 0.18 0.20 0.26 0.59 0.73 0.42 0.36 0.6

Loan and lease loss provision to 

net charge-offs���������������������������������������������������� 69.95 87.54 92.19 89.92 67.54 82.63 66.90 66.80 46.26 8

Efficiency ratio �������������������������������������������������������� 61.17 76.23 70.17 64.95 59.65 58.70 67.19 65.14 57.30 

% of unprofitable institutions���������������������������������� 6.64 12.10 4.74 2.30 0.00 7.17 11.11 8.03 3.93

% of institutions with earnings gains���������������������� 55.89 52.71 57.03 59.65 52.29 51.03 59.74 52.35 58.01 

Condition Ratios (%)

Earning assets to total assets ��������������������������������� 89.13 91.71 92.23 91.24 88.54 89.48 87.67 88.56 88.76 

Loss allowance to:

Loans and leases ��������������������������������������������� 1.58 1.62 1.53 1.45 1.61 1.60 1.46 1.71 1.7

Noncurrent loans and leases ��������������������������� 70.54 95.99 95.35 78.95 67.20 97.63 50.40 71.14 61.69 8

Noncurrent assets plus

other real estate owned to assets ����������������������� 1.40 1.63 1.62 1.62 1.34 0.99 1.90 1.30 1.6

Equity capital ratio��������������������������������������������������� 11.26 12.15 11.09 11.92 11.19 11.92 12.42 9.87 10.44 

Core capital (leverage) ratio ����������������������������������� 9.57 11.88 10.72 10.64 9.29 9.88 9.50 8.74 9.21 

Tier 1 risk-based capital ratio���������������������������������� 12.98 19.44 15.78 14.47 12.48 13.58 12.78 11.84 12.48 

Total risk-based capital ratio ����������������������������������� 14.47 20.54 16.94 15.62 14.05 15.31 14.46 13.02 14.11 

Net loans and leases to deposits���������������������������� 69.46 66.11 75.85 84.37 66.90 70.50 73.99 61.33 67.64 

Net loans to total assets ����������������������������������������� 52.63 55.88 63.25 65.64 49.96 52.53 57.10 44.56 51.59 

Domestic deposits to total assets ��������������������������� 66.33 84.54 83.33 77.41 63.11 65.52 73.85 60.79 57.33 

Structural Changes

New reporters�������������������������������������������������� 0 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������������� 135 44 75 14 2 11 26 25 30 27 16

Failed institutions �������������������������������������������� 12 7 5 0 0 2 3 4 0 2 1

PRIOR FIRST HALVES

(The way it was...)

Number of institutions ������������������������������������2013 6,940 2,141 4,146 546 107 858 884 1,483 1,686 1,468 561

��������������������������������������������2011 7,513 2,550 4,296 561 106 932 990 1,575 1,804 1,570 642

������������������������������������������� 2009 8,195 3,013 4,484 582 116 996 1,164 1,685 1,914 1,680 756

Total assets (in billions)����������������������������������2013 $14,404.7 $124.8 $1,256.7 $1,413.9 $11,609.3 $2,855.1 $2,980.2 $3,344.1 $3,082.9 $867

��������������������������������������������2011 13,602.6 146.0 1,272.9 1,422.1 10,761.6 2,769.3 2,916.0 3,119.5 1,672.3 78

������������������������������������������� 2009 13,279.7 165.4 1,347.9 1,500.8 10,265.6 2,437.9 3,493.7 3,124.6 1,063.0 77

Return on assets (%)��������������������������������������2013 1.09 0.76 0.92 1.19 1.10 0.70 1.07 1.11 1.2

��������������������������������������������2011 0.85 0.53 0.53 0.82 0.90 1.12 0.53 0.69 1.2

������������������������������������������� 2009 -0.26 0.15 0.06 -0.50 -0.28 -1.86 0.15 0.15 0.65 

Net charge-offs to loans & leases (%) �����������2013 0.78 0.31 0.35 0.42 0.90 1.05 0.76 0.52 1.0

��������������������������������������������2011 1.71 0.54 0.84 1.29 1.92 2.05 1.75 1.36 1.9

������������������������������������������� 2009 2.25 0.76 0.95 1.81 2.57 2.56 1.97 2.01 2.3

Noncurrent assets plus 

OREO to assets (%)������������������������������������2013 1.90 1.90 2.11 2.14 1.85 1.26 2.76 1.74 2.1

��������������������������������������������2011 2.76 2.40 3.34 3.36 2.61 1.87 3.82 2.55 3.8

������������������������������������������� 2009 2.78 2.04 2.94 3.44 2.67 1.83 3.08 2.87 3.1

Equity capital ratio (%)������������������������������������2013 11.17 11.76 10.85 11.78 11.12 12.00 12.22 9.17 10.85 

��������������������������������������������2011 11.29 11.84 10.58 11.86 11.29 12.80 12.05 8.49 11.79 

������������������������������������������� 2009 10.42 12.44 9.92 10.60 10.42 11.79 10.97 8.55 10.79

* See Table V-A (page 11) for explanations

Note: Blue font identifies data that are also presented in the prior halves’ data at bottom of table
FDIC Quarterly 10 2014, Volume 8, No. 3

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

Asset Concentration Groups*

June 30, 2014 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 ��������������������������������������� 1.03 0.04 1.54 0.71 0.67 0.87 0.38 1.31

Construction and development��������������������������������� 0.52 0.00 0.65 0.87 0.49 0.50 0.84 1.23

Nonfarm nonresidential��������������������������������������������� 0.40 0.00 0.33 0.65 0.40 0.41 0.67 0.96

Multifamily residential real estate ����������������������������� 0.19 0.00 0.04 0.53 0.22 0.36 0.28 0.83

Home equity loans����������������������������������������������������� 0.66 0.65 0.94 0.44 0.54 0.60 0.42 0.36

Other 1-4 family residential��������������������������������������� 1.75 0.03 2.54 1.22 1.18 0.97 0.33 1.75

Commercial and industrial loans ������������������������������������� 0.26 0.77 0.30 0.94 0.25 0.40 0.21 1.31

Loans to individuals���������������������������������������������������������� 1.28 1.08 1.39 1.38 1.12 1.36 0.72 1.48

Credit card loans ������������������������������������������������������� 1.12 1.08 1.20 1.05 1.15 1.69 0.60 1.14

Other loans to individuals ����������������������������������������� 1.44 1.18 1.72 1.41 1.12 1.07 0.76 1.51

All other loans and leases (including farm) ��������������������� 0.16 0.39 0.18 0.46 0.20 0.11 0.11 0.33

Total loans and leases������������������������������������������������������ 0.81 1.05 0.93 0.70 0.57 0.84 0.55 1.27

Percent of Loans Noncurrent**

All real estate loans ���������������������������������������������������������� 3.82 0.58 5.84 1.29 2.27 3.38 1.83 2.13

Construction and development.................................. 2.77 

Nonfarm nonresidential��������������������������������������������� 1.60 3.61 1.04 1.86 1.54 1.82 4.07 2.13

Multifamily residential real estate ����������������������������� 0.61 0.00 0.45 0.63 0.65 0.91 0.19 1.79

Home equity loans����������������������������������������������������� 2.66 0.00 3.62 1.00 1.49 2.10 2.29 0.80

Other 1-4 family residential��������������������������������������� 6.33 0.49 9.87 1.26 3.62 3.75 1.40 1.93

Commercial and industrial loans ������������������������������������� 0.58 0.82 0.50 1.39 0.67 1.36 0.50 1.65

Loans to individuals���������������������������������������������������������� 0.90 1.02 1.03 0.54 0.82 1.03 0.77 0.66

Credit card loans ������������������������������������������������������� 1.07 1.04 1.10 0.23 1.20 1.58 1.09 0.69

Other loans to individuals ����������������������������������������� 0.74 0.73 0.91 0.57 0.77 0.53 0.68 0.66

All other loans and leases (including farm) ��������������������� 0.23 0.14 0.24 0.40 0.31 0.17 0.13 0.48

Total loans and leases������������������������������������������������������ 2.24 1.00 2.47 1.06 1.63 3.04 1.15 1.83

Percent of Loans Charged-Off (net, YTD)

All real estate loans ���������������������������������������������������������� 0.21 0.03 0.30 0.07 0.21 0.19 0.17 0.11

Construction and development��������������������������������� 0.05 0.00 -0.26 -0.13 0.19 0.34 0.13 0.35 

Nonfarm nonresidential��������������������������������������������� 0.11 0.00 -0.03 0.10 0.15 0.12 -0.04 0.12 

Multifamily residential real estate ����������������������������� 0.02 0.00 0.00 0.14 0.02 0.09 0.00 -0.89 

Home equity loans����������������������������������������������������� 0.66 0.00 0.72 0.37 0.44 0.59 0.81 0.14

Other 1-4 family residential��������������������������������������� 0.21 0.03 0.29 0.12 0.25 0.17 0.08 0.12

Commercial and industrial loans ������������������������������������� 0.23 2.47 0.18 0.18 0.21 0.33 0.08 0.37

Loans to individuals���������������������������������������������������������� 2.04 3.05 2.98 0.35 0.94 1.70 0.80 0.45

Credit card loans ������������������������������������������������������� 3.33 3.11 3.93 0.83 3.63 2.84 2.16 1.75

Other loans to individuals ����������������������������������������� 0.73 1.45 1.33 0.31 0.53 0.59 0.38 0.33

All other loans and leases (including farm) ��������������������� 0.08 0.00 0.07 0.00 0.15 0.06 0.06 0.66

Total loans and leases������������������������������������������������������ 0.51 2.98 0.74 0.10 0.26 0.26 0.50 0.21

Loans Outstanding (in billions)

All real estate loans ���������������������������������������������������������� $4,123.5 $0.3 $479.1 $94.2 $2,100.3 $238.7 $58.9 $12.5 $58.

Construction and development��������������������������������� 223.2 0.0 6.5 4.9 164.1 4.9 1.3 0.

Nonfarm nonresidential��������������������������������������������� 1,125.5 0.0 36.8 25.7 809.9 21.3 5.4 4.5 

Multifamily residential real estate ����������������������������� 281.2 0.0 50.4 2.8 182.0 5.3 4.6 0.

Home equity loans����������������������������������������������������� 499.2 0.0 84.8 1.8 206.4 14.5 8.6 0.4

Other 1-4 family residential��������������������������������������� 1,845.0 0.2 240.3 24.1 703.4 191.5 38.9 5.7 

Commercial and industrial loans ������������������������������������� 1,664.1 37.3 279.7 19.7 814.6 8.0 9.0 2.3

Loans to individuals���������������������������������������������������������� 1,366.7 427.3 254.3 6.4 282.6 12.5 81.0 1.7

Credit card loans ������������������������������������������������������� 678.3 411.0 160.1 0.5 36.5 5.9 18.8 0.

Other loans to individuals ����������������������������������������� 688.4 16.3 94.1 5.9 246.1 6.5 62.2 1.6

All other loans and leases (including farm) ��������������������� 956.8 3.6 312.7 37.4 247.3 14.7 3.9 1.0

Total loans and leases (plus unearned income)�������������� 8,111.2 468.4 1,325.8 157.7 3,444.8 273.8 152.8 17.6 75

Memo: Other Real Estate Owned (in millions)

All other real estate owned����������������������������������������������� 27,898.3 0.2 3,019.0 576.3 15,685.1 1,235.2 138.4 199.9 633

Construction and development��������������������������������� 7,419.4 0.0 2.4 203.3 5,848.5 211.5 22.7 86.3 1

Nonfarm nonresidential��������������������������������������������� 6,128.1 0.0 72.2 201.2 4,626.0 132.4 36.4 68.3 2

Multifamily residential real estate ����������������������������� 611.2 0.0 2.0 20.5 455.7 15.1 0.9 5.5

1-4 family residential ������������������������������������������������� 6,223.6 0.2 666.3 107.2 3,410.4 406.6 67.1 37.8 202

Farmland�������������������������������������������������������������������� 289.4 0.0 0.0 43.9 207.3 2.2 0.2 2.0

GNMA properties������������������������������������������������������� 7,164.6 0.0 2,216.0 0.2 1,137.4 467.4 11.0 0.0 0

* 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
FDIC Quarterly 11 2014, Volume 8, No. 3

Quarterly Banking Profile

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

Asset Size Distribution Geographic Regions*

June 30, 2014 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ������������������������������ 1.03 1.26 0.74 0.63 1.19 0.69 1.18 1.05 1.5

Construction and development������������������������ 0.52 0.83 0.66 0.47 0.47 0.62 0.53 0.53 0.4

Nonfarm nonresidential������������������������������������ 0.40 1.12 0.56 0.38 0.32 0.44 0.40 0.46 0.2

Multifamily residential real estate �������������������� 0.19 0.65 0.48 0.18 0.15 0.16 0.29 0.17 0.1

Home equity loans�������������������������������������������� 0.66 0.72 0.54 0.53 0.68 0.46 0.73 0.81 0.6

Other 1-4 family residential������������������������������ 1.75 1.70 1.07 1.12 1.97 1.10 1.86 1.72 2.6

Commercial and industrial loans ���������������������������� 0.26 1.25 0.64 0.43 0.21 0.30 0.15 0.33 0.2

Loans to individuals������������������������������������������������� 1.28 1.95 1.57 1.41 1.26 1.04 1.90 1.25 1.3

Credit card loans ���������������������������������������������� 1.12 2.14 1.43 1.77 1.10 0.90 1.66 0.91 1.2

Other loans to individuals �������������������������������� 1.44 1.95 1.58 1.24 1.44 1.41 2.01 1.36 1.5

All other loans and leases (including farm) ������������ 0.16 0.46 0.37 0.26 0.14 0.09 0.07 0.31 0.1

Total loans and leases��������������������������������������������� 0.81 1.21 0.75 0.63 0.84 0.65 0.92 0.81 1.0

Percent of Loans Noncurrent** 

All real estate loans ������������������������������������������������� 3.82 1.94 1.75 2.24 4.72 2.48 5.10 4.26 5.2

Construction and development������������������������ 2.77 3.70 3.44 3.27 2.21 3.57 3.29 2.98 2.1

Nonfarm nonresidential������������������������������������ 1.60 2.40 1.81 1.59 1.49 1.87 1.54 1.82 1.5

Multifamily residential real estate �������������������� 0.61 2.10 1.18 0.68 0.47 0.43 0.64 0.79 0.8

Home equity loans�������������������������������������������� 2.66 1.12 0.89 1.08 2.95 1.96 3.50 2.73 2.7

Other 1-4 family residential������������������������������ 6.33 1.87 1.62 3.47 7.65 3.52 7.93 7.14 8.8

Commercial and industrial loans ���������������������������� 0.58 1.76 1.44 1.02 0.46 0.75 0.46 0.60 0.5

Loans to individuals������������������������������������������������� 0.90 0.83 1.12 0.70 0.91 0.90 0.97 0.77 1.0

Credit card loans ���������������������������������������������� 1.07 0.74 0.93 1.40 1.06 0.94 1.31 0.99 1.1

Other loans to individuals �������������������������������� 0.74 0.83 1.13 0.39 0.75 0.80 0.80 0.70 0.9

All other loans and leases (including farm) ������������ 0.23 0.64 0.47 0.41 0.20 0.38 0.14 0.12 0.2

Total loans and leases��������������������������������������������� 2.24 1.69 1.61 1.84 2.39 1.63 2.90 2.40 2.7

Percent of Loans Charged-Off (net, YTD) 

All real estate loans ������������������������������������������������� 0.21 0.16 0.16 0.15 0.24 0.20 0.28 0.26 0.2

Construction and development������������������������ 0.05 0.16 0.23 0.10 -0.05 0.43 0.15 0.11 -0.39

Nonfarm nonresidential������������������������������������ 0.11 0.20 0.15 0.14 0.08 0.16 0.16 0.15 0.0

Multifamily residential real estate �������������������� 0.02 0.08 0.14 0.05 -0.01 -0.02 0.04 0.06 0.0

Home equity loans�������������������������������������������� 0.66 0.19 0.21 0.27 0.73 0.40 0.91 0.64 0.7

Other 1-4 family residential������������������������������ 0.21 0.18 0.17 0.19 0.22 0.22 0.19 0.25 0.2

Commercial and industrial loans ���������������������������� 0.23 0.29 0.35 0.22 0.22 0.38 0.15 0.24 0.1

Loans to individuals������������������������������������������������� 2.04 0.40 0.65 1.54 2.11 2.34 1.72 1.25 2.7

Credit card loans ���������������������������������������������� 3.33 3.02 3.80 3.62 3.32 2.90 3.74 3.13 4.0

Other loans to individuals �������������������������������� 0.73 0.37 0.44 0.58 0.77 0.82 0.71 0.63 1.1

All other loans and leases (including farm) ������������ 0.08 0.00 0.14 0.15 0.07 0.10 0.04 0.12 0.0

Total loans and leases��������������������������������������������� 0.51 0.18 0.20 0.26 0.59 0.73 0.42 0.36 0.6

Loans Outstanding (in billions) 

All real estate loans ������������������������������������������������� $4,123.5 $45.7 $607.9 $712.8 $2,757.2 $831.9 $917.2 $796.7 $819.4 $3

Construction and development������������������������ 223.2 2.7 50.7 55.6 114.2 42.4 49.2 35.3 33.

Nonfarm nonresidential������������������������������������ 1,125.5 12.5 240.1 290.7 582.2 257.4 231.6 185.0 166.3 

Multifamily residential real estate �������������������� 281.2 1.4 31.6 62.7 185.6 98.7 34.8 75.6 24.

Home equity loans�������������������������������������������� 499.2 1.2 27.4 46.0 424.5 90.5 130.4 126.2 104.

Other 1-4 family residential������������������������������ 1,845.0 20.5 216.9 240.7 1,367.0 338.9 461.3 354.2 399.4 

Commercial and industrial loans ���������������������������� 1,664.1 8.1 105.2 161.1 1,389.8 256.1 397.1 345.0 353.1 

Loans to individuals������������������������������������������������� 1,366.7 4.1 35.2 69.5 1,257.9 385.8 244.0 202.9 294.0

Credit card loans ���������������������������������������������� 678.3 0.0 2.2 21.7 654.4 282.0 79.6 50.4 164.

Other loans to individuals �������������������������������� 688.4 4.1 33.0 47.8 603.5 103.8 164.4 152.4 129.8

All other loans and leases (including farm) ������������ 956.8 8.1 45.2 51.6 851.9 153.8 208.9 233.5 267.

Total loans and leases (plus unearned income)����� 8,111.2 66.1 793.5 994.9 6,256.7 1,627.6 1,767.2 1,578.0 1,734.2 

Memo: Other Real Estate Owned (in millions) 

All other real estate owned�������������������������������������� 27,898.3 770.3 7,116.0 5,721.6 14,290.4 3,295.7 6,365.2 7,073.8 6,345.1 3,23

Construction and development������������������������ 7,419.4 261.6 3,233.6 2,243.3 1,680.9 755.0 2,125.8 1,003.1 1,526.8 1,

Nonfarm nonresidential������������������������������������ 6,128.1 257.5 2,347.7 1,756.8 1,766.1 876.6 1,270.0 1,297.2 1,124.6 1,

Multifamily residential real estate �������������������� 611.2 31.0 179.0 144.5 256.8 187.8 79.5 114.0 135.

1-4 family residential ���������������������������������������� 6,223.6 204.5 1,210.9 1,144.2 3,663.9 1,175.4 1,595.3 1,527.8 960.1 

Farmland����������������������������������������������������������� 289.4 15.6 143.1 89.9 40.7 22.7 70.4 54.4 45.

GNMA properties���������������������������������������������� 7,164.6 0.1 1.6 342.8 6,820.0 278.2 1,224.1 3,077.3 2,490.

* Regions:

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

U.S. Virgin Islan

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 12 2014, Volume 8, No. 3

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

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

2nd

Quarter 

2014

1st

Quarter 

2014

4th 

Quarter 

2013

3rd 

Quarter 

2013

2nd 

Quarter 

2013

% Change 

13Q2-

14Q2

Less 

Than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

Than 

$10 Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives����������������� 1,405 1,398 1,389 1,424 1,412 -0.5 73 853 378 10

Total assets of institutions reporting derivatives ���������� $13,507,684 $13,234,405 $13,064,419 $12,906,255 $12,690,326 6.4 $5,106 $353,901 $1,086,400 $12,062,27

Total deposits of institutions reporting derivatives������� 10,163,264 9,974,664 9,855,694 9,682,692 9,410,509 8.0 4,316 291,577 860,454 9,006,91

Total derivatives������������������������������������������������������������� 239,197,271 233,457,327 238,737,897 243,276,753 236,532,240 1.1 276 22,121 99,607 239,075,26

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 191,551,724 185,829,933 194,555,371 195,710,387 188,190,450 1.8 275 20,007 92,219 191,439,22

Foreign exchange*��������������������������������������������������������� 33,401,040 32,994,578 29,668,744 31,200,455 31,471,711 6.1 0 1,946 6,313 33,392,78

Equity ����������������������������������������������������������������������������� 2,198,432 2,151,169 2,059,611 2,177,583 2,120,550 3.7 0 72 443 2,197,91

Commodity & other (excluding credit derivatives)�������� 1,214,397 1,263,060 1,208,874 1,339,676 1,367,298 -11.2 0 1 139 1,214,25

Credit������������������������������������������������������������������������������ 10,831,679 11,218,586 11,245,297 12,848,651 13,382,231 -19.1 0 95 492 10,831,09

Total�������������������������������������������������������������������������������� 239,197,271 233,457,327 238,737,897 243,276,753 236,532,240 1.1 276 22,121 99,607 239,075,26

Derivative Contracts by Transaction Type 

Swaps ���������������������������������������������������������������������������� 146,467,569 139,451,086 150,590,971 150,061,947 141,026,681 3.9 44 7,320 50,242 146,409,96

Futures & forwards �������������������������������������������������������� 45,312,386 44,424,250 42,022,121 42,067,188 43,970,239 3.1 77 7,851 26,312 45,278,14

Purchased options��������������������������������������������������������� 17,296,921 17,908,952 16,870,263 17,637,787 17,680,639 -2.2 20 781 4,802 17,291,31

Written options��������������������������������������������������������������� 16,872,663 17,629,522 16,929,743 17,784,103 17,800,582 -5.2 135 6,034 16,391 16,850,10

Total�������������������������������������������������������������������������������� 225,949,539 219,413,810 226,413,097 227,551,024 220,478,141 2.5 276 21,986 97,747 225,829,53

Fair Value of Derivative Contracts 

Interest rate contracts���������������������������������������������������� 72,249 72,732 71,270 64,832 60,694 19.0 1 36 118 72,09

Foreign exchange contracts������������������������������������������ 4,729 5,563 5,991 -10,390 -4,673 N/M 0 0 -17 4,746

Equity contracts������������������������������������������������������������� 426 1,548 32 -1,928 1,396 -69.5 0 3 6 41

Commodity & other (excluding credit derivatives)�������� 965 -893 1,350 1,181 1,298 -25.7 0 0 -5 97

Credit derivatives as guarantor������������������������������������� 92,998 80,869 74,838 27,220 -8,794 N/M 0 0 0 92,999

Credit derivatives as beneficiary����������������������������������� -88,369 -77,438 -71,220 -22,646 13,953 N/M 0 0 -25 -88,343

Derivative Contracts by Maturity** 

Interest rate contracts ����������������������������� < 1 year 81,212,239 77,936,411 77,933,066 91,852,227 88,198,011 -7.9 78 5,668 20,248 81,186,24

 ������������������������������������������ 1-5 years 38,531,976 37,667,856 44,472,861 32,988,175 30,694,796 25.5 31 3,424 24,383 38,504,13

 ������������������������������������������ > 5 years 24,201,832 24,282,239 24,885,748 21,753,489 20,836,833 16.1 32 4,094 24,036 24,173,66

Foreign exchange contracts ������������������� < 1 year 20,747,894 20,099,306 18,349,410 18,975,694 19,247,580 7.8 0 1,424 3,612 20,742,85

 ������������������������������������������ 1-5 years 2,420,184 2,299,021 2,325,624 2,870,026 2,737,466 -11.6 0 0 50 2,420,13

 ������������������������������������������ > 5 years 1,016,489 974,381 1,029,302 1,503,977 1,456,229 -30.2 0 0 0 1,016,48

Equity contracts��������������������������������������� < 1 year 698,674 673,720 645,046 694,983 651,964 7.2 0 3 97 698,57

 ������������������������������������������ 1-5 years 292,130 305,141 291,190 309,578 270,282 8.1 0 11 95 292,02

 ������������������������������������������ > 5 years 81,116 89,804 135,907 88,294 80,891 0.3 0 25 20 81,07

Commodity & other contracts ����������������� < 1 year 360,565 379,469 338,091 375,292 424,508 -15.1 0 0 77 360,48

 ������������������������������������������ 1-5 years 150,937 140,984 163,812 175,069 163,093 -7.5 0 0 4 150,93

 ������������������������������������������ > 5 years 18,082 18,960 5,903 16,142 15,300 18.2 0 0 0 18,08

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%)������������������� 23.5 23.5 26.1 27.1 30.5 0.1 0.3

Total potential future exposure to tier 1 capital (%)������ 55.1 56.7 58.7 62.4 62.8 0.1 0.3

Total exposure (credit equivalent amount) 

to tier 1 capital (%) ����������������������������������������������������� 78.7 80.3 84.8 89.5 93.2 0.1 0.6

Credit losses on derivatives***���������������������������������� 68.7 12.9 264.2 180.7 145.0 -52.6 0.0 0.

HELD FOR TRADING 

Number of institutions reporting derivatives����������������� 247 243 252 241 241 2.5 10 85 89 6

Total assets of institutions reporting derivatives ���������� 10,881,762 10,629,709 10,550,446 10,392,702 10,153,698 7.2 676 39,978 314,445 10,526,66

Total deposits of institutions reporting derivatives������� 8,185,857 7,997,408 7,964,587 7,786,249 7,519,448 8.9 570 33,167 245,107 7,907,01

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 188,491,623 182,694,007 190,612,660 191,930,195 184,196,259 2.3 102 2,134 22,799 188,466,58

Foreign exchange���������������������������������������������������������� 30,165,667 29,320,112 27,745,453 27,518,482 28,043,313 7.6 0 0 2,510 30,163,15

Equity ����������������������������������������������������������������������������� 2,182,209 2,135,205 2,042,887 2,162,079 2,106,250 3.6 0 0 120 2,182,08

Commodity & other�������������������������������������������������������� 1,206,811 1,256,235 1,200,547 1,330,681 1,356,542 -11.0 0 0 48 1,206,76

Total�������������������������������������������������������������������������������� 222,046,310 215,405,557 221,601,547 222,941,437 215,702,364 2.9 102 2,135 25,477 222,018,59

Trading Revenues: Cash & Derivative Instruments 

Interest rate�������������������������������������������������������������������� 3,041 1,847 403 3,129 2,608 16.6 0 0 12 3,02

Foreign exchange���������������������������������������������������������� 1,962 2,201 1,532 499 3,139 -37.5 0 0 1 1,96

Equity ����������������������������������������������������������������������������� 727 603 488 231 927 -21.6 0 0 6 72

Commodity & other (including credit derivatives) �������� 679 1,531 483 657 450 50.9 0 0 0 67

Total trading revenues��������������������������������������������������� 6,409 6,183 2,906 4,517 7,124 -10.0 0 0 20 6,38

Share of Revenue 

Trading revenues to gross revenues (%) ���������������������� 5.4 5.4 2.5 4.0 5.9 0.0 0.

Trading revenues to net operating revenues (%)���������� 24.4 26.9 11.3 20.9 30.5 0.0 0.2

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives����������������� 1,286 1,281 1,253 1,287 1,272 1.1 63 785 343 9

Total assets of institutions reporting derivatives ���������� 13,214,332 12,928,682 12,754,084 12,611,625 12,298,769 7.4 4,431 326,607 983,031 11,900,26

Total deposits of institutions reporting derivatives������� 9,932,683 9,732,821 9,611,265 9,449,509 9,103,518 9.1 3,746 268,797 780,293 8,879,84

Derivative Contracts by Underlying 

Risk Exposure 

Interest rate�������������������������������������������������������������������� 3,060,101 3,135,926 3,942,711 3,780,192 3,994,191 -23.4 173 17,872 69,420 2,972,63

Foreign exchange���������������������������������������������������������� 819,319 849,536 843,789 804,895 756,530 8.3 0 1,906 2,436 814,97

Equity ����������������������������������������������������������������������������� 16,223 15,965 16,724 15,504 14,300 13.4 0 72 323 15,82

Commodity & other�������������������������������������������������������� 7,586 6,825 8,327 8,995 10,756 -29.5 0 1 92 7,49

Total notional amount ���������������������������������������������������� 3,903,228 4,008,253 4,811,550 4,609,587 4,775,777 -18.3 174 19,851 72,270 3,810,93

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

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

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

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

in total assets
FDIC Quarterly 13 2014, Volume 8, No. 3

Quarterly Banking Profile

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

Asset Size Distribution

(dollar figures in millions)

2nd 

Quarter

2014

1st 

Quarter

2014

4th 

Quarter

2013

3rd 

Quarter

2013

2nd 

Quarter

2013

% Change 

13Q2-

14Q2

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

Than $10 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities ����������������������������������������� 75 78 83 82 88 -14.8 0 28 15 3

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� $843,849 $598,531 $610,275 $625,642 $634,877 32.9 $0 $2,980 $14,014 $826,85

Home equity loans��������������������������������������������������������������������������������������������� 39 41 42 44 46 -15.2 0 0 0 3

Credit card receivables�������������������������������������������������������������������������������������� 16,692 16,349 19,405 17,115 17,945 -7.0 0 128 0 16,56

Auto loans ���������������������������������������������������������������������������������������������������������� 4,312 4,735 4,676 4,708 3,860 11.7 0 865 0 3,44

Other consumer loans ��������������������������������������������������������������������������������������� 4,945 4,462 4,607 4,790 4,938 0.1 0 2 0 4,94

Commercial and industrial loans����������������������������������������������������������������������� 1,217 1,881 1,987 3,945 4,472 -72.8 0 15 0 1,20

All other loans, leases, and other assets���������������������������������������������������������� 94,782 96,092 101,456 104,890 99,226 -4.5 0 3,527 4,947 86,30

Total securitized and sold������������������������������������������������������������������������������������������ 965,835 722,091 742,448 761,133 765,366 26.2 0 7,517 18,960 939,35

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 2,908 2,912 2,794 2,927 3,086 -5.8 0 6 54 2,84

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

Credit card receivables�������������������������������������������������������������������������������������� 1,450 1,455 603 554 557 160.3 0 57 0 1,39

Auto loans ���������������������������������������������������������������������������������������������������������� 0 5 0 0 0 0.0 0 0 0 

Other consumer loans ��������������������������������������������������������������������������������������� 192 174 164 168 168 14.3 0 0 0 19

Commercial and industrial loans����������������������������������������������������������������������� 25 38 27 20 33 -24.2 0 0 0 2

All other loans, leases, and other assets���������������������������������������������������������� 1,416 1,308 1,633 1,729 1,861 -23.9 0 1 0 1,41

Total credit exposure ������������������������������������������������������������������������������������������������� 5,991 5,892 5,221 5,397 5,705 5.0 0 64 54 5,87

Total unused liquidity commitments provided to institution's own securitizations ��� 17 120 121 121 121 -86.0 0 0 0 1

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

1-4 family residential loans�������������������������������������������������������������������������������� 3.5 3.3 4.3 4.1 4.3 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 9.1 8.8 10.4 10.7 9.5 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 0.8 0.9 0.8 1.0 0.8 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.7 0.6 1.0 0.6 0.4 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 5.5 5.2 5.6 5.4 6.0 0.0 0.

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

All other loans, leases, and other assets���������������������������������������������������������� 0.4 0.3 0.8 1.1 1.2 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 3.2 2.9 3.7 3.6 3.8 0.0 0.

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

1-4 family residential loans�������������������������������������������������������������������������������� 2.3 3.3 3.4 3.7 4.2 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 40.3 37.8 36.5 34.4 32.3 0.0 0.0

Credit card receivables�������������������������������������������������������������������������������������� 0.6 0.7 0.6 0.6 0.4 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.1 0.1 0.1 0.0 0.0 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 6.3 6.7 7.3 7.1 6.3 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.0 0.0 0.0 0.0 3.

All other loans, leases, and other assets���������������������������������������������������������� 9.2 8.7 9.2 8.9 10.2 0.0 0.9

Total loans, leases, and other assets ����������������������������������������������������������������������� 2.9 3.9 4.1 4.3 4.9 0.0 1.

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans�������������������������������������������������������������������������������� 0.2 0.1 0.9 0.7 0.5 0.0 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.1 -0.1 0.2 0.3 0.2 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 1.2 0.6 2.2 1.9 1.3 0.0 3.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.1 0.0 0.2 0.1 0.1 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 0.3 0.2 0.9 0.7 0.4 0.0 0.

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

All other loans, leases, and other assets���������������������������������������������������������� 0.9 0.7 0.9 0.6 0.5 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 0.3 0.2 0.9 0.7 0.5 0.0 0.

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

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

Credit card receivables�������������������������������������������������������������������������������������� 12,905 13,116 12,850 13,451 13,076 -1.3 0 281 0 12,62

Commercial and industrial loans����������������������������������������������������������������������� 2 2 3 3 3 -33.3 0 2 0 

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

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

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

Commercial and industrial loans����������������������������������������������������������������������� 0 48 52 0 0 0.0 0 0 0 

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales������������������������������������������������������������ 1,100 1,087 1,083 1,066 1,065 3.3 150 730 171 4

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 42,185 43,675 46,491 48,349 48,783 -13.5 1,697 13,324 8,212 18,95

Home equity, credit card receivables, auto, and other consumer loans ��������� 727 755 776 802 829 -12.3 0 2 5 71

Commercial and industrial loans����������������������������������������������������������������������� 53 69 62 64 71 -25.4 0 14 38 

All other loans, leases, and other assets���������������������������������������������������������� 65,112 65,974 67,794 62,143 63,988 1.8 1 82 192 64,83

Total sold and not securitized������������������������������������������������������������������������������������ 108,076 110,473 115,122 111,358 113,671 -4.9 1,698 13,422 8,448 84,50

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 9,587 9,529 10,728 11,607 12,225 -21.6 104 2,047 2,896 4,54

Home equity, credit card receivables, auto, and other consumer loans ��������� 141 155 160 156 151 -6.6 0 2 3 13

Commercial and industrial loans����������������������������������������������������������������������� 24 33 27 29 34 -29.4 0 14 9 

All other loans, leases, and other assets���������������������������������������������������������� 16,849 16,970 17,058 15,316 15,360 9.7 1 17 55 16,77

Total credit exposure ������������������������������������������������������������������������������������������������� 26,602 26,688 27,973 27,109 27,769 -4.2 106 2,079 2,964 21,45

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others ������� 135 138 148 154 157 -14.0 12 76 28 1

Total credit exposure ������������������������������������������������������������������������������������������������� 42,375 42,058 44,707 44,848 45,095 -6.0 9 189 323 41,85

Total unused liquidity commitments ������������������������������������������������������������������������� 1,122 1,017 981 923 828 35.5 0 0 0 1,12

Other

Assets serviced for others*��������������������������������������������������������������������������������������� 4,458,868 4,556,305 4,712,564 4,773,340 4,885,223 -8.7 5,465 135,523 306,130 4,011,74

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others������������������ 12,129 12,110 12,317 13,049 11,316 7.2 5 0 4 12,12

Unused liquidity commitments to conduits sponsored by institutions 

 and others������������������������������������������������������������������������������������������������������� 28,274 30,515 31,113 40,363 51,893 -45.5 0 0 667 27,60

Net servicing income (for the quarter)���������������������������������������������������������������������� 2,769 2,141 4,627 3,182 5,827 -52.5 7 175 151 2,43

Net securitization income (for the quarter)��������������������������������������������������������������� 316 283 395 352 273 15.8 0 15 10 29

Total credit exposure to Tier 1 capital (%)** ������������������������������������������������������������� 5.4 5.4 5.8 5.9 6.0 0.8 1.

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

** Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above
FDIC Quarterly 14 2014, Volume 8, No. 3

■ Net Income of $4.9 Billion Is $166 Million Above Year-Ago Level 

1

■ Higher Net Interest Income and Lower Loan-Loss Provisions Boost Earnings

■ Net Interest Margin Increases From Previous Quarter and a Year Ago

■ Loan Balances Increase, Outpacing Industry Growth

1

 Prior period dollar amounts used for comparisons are mergeradjusted, meaning the same institutions identified as community banks 

in the current quarter are used to determine dollar amounts in prior 

quarters, after taking acquisitions into account. Performance ratios are 

not merger-adjusted.

COMMUNITY BANK PERFORMANCE

Contributors to the Year-Over-Year Change in Income

FDIC-Insured Community Banks

Billions of Dollars Positive Factor

Negative Factor

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Source: FDIC. 

+4% +6% -30% -9% +2% -41% +12%

0.17

1.00

-0.24

-0.47

0.35

-0.10

0.15

-$2.0

-$1.0

$0.0

$1.0

$2.0

Chart 1 Chart 2

Net Interest Margin

Percent

Source: FDIC.

3.57 3.61

3.25

3.15

3.0

3.5

4.0

2006 2007 2008 2009 2010 2011 2012 2013 2014

Community Banks

All Insured Institutions

Nearly 60 Percent of Community Banks Increase 

Earnings in Second Quarter

Improved net interest income and lower loan-loss 

provisions contributed to community banks’ earnings of 

$4.9 billion, up $166 million (3.5 percent) from second 

quarter 2013. Well over half (58 percent) of all community banks reported higher earnings compared with the 

year-ago quarter, and those reporting a loss fell to 7 

percent—the lowest level since second quarter 2006.

Net Interest Margin Is Nearly Half a Percentage 

Point Higher Than the Industry

Net interest income totaled $16.8 billion for the quarter, up $997 million (6.3 percent) from second quarter 

2013. Almost three out of every four community banks 

(72 percent) reported a year-over-year increase. Similar 

to community banks, the industry improved net interest 

income from second quarter 2013, but at a lower rate. 

Community banks reported net interest margin (NIM) 

of 3.61 percent, up 4 basis points from second quarter 

2013, as average funding costs declined more rapidly 

than average asset yields. For the past five consecutive 

quarters, NIM widened between community banks and 

the industry, as community banks posted a NIM 46 

basis points above the industry average. Nearly 80 

percent of community banks reported NIM above the 

industry’s 3.15 percent.

Lower Gains on Loan Sales and Higher Expenses 

Reduce Earnings

Noninterest income was $4.5 billion in the second 

quarter, down $475 million (9.5 percent) from second 

quarter 2013, as revenue from loan sales—including 

mortgage sales—declined by $334 million (28.7 

percent) from the year before. The industry experienced a lower rate decline (5 percent) in noninterest 

income, but similar to community banks, loan sales 

income declined. Noninterest expense at community 

banks was $348 million (2.4 percent) higher than in 

second quarter 2013. About 62 percent of the increase 

in noninterest expense was accounted for by higher 

salary and employee benefits; however, average assets 

per employee rose to $4.5 million from $4.3 million 

one year earlier.
FDIC QUARTERLY 15 2014, VOLUME 8, NO. 3

Quarterly Banking Profile

Loan Growth Increases From the Previous Quarter 

and a Year Ago

Loan balances totaled $1.3 trillion in the second quarter, 

up $37.7 billion (2.9 percent) from first quarter 2014. 

Community banks reported higher loan growth than the 

industry, which grew at 2.3 percent. All major loan categories increased from the previous quarter, led by 1-to-4 

family (up $9.2 billion, or 2.7 percent), commercial and 

industrial loans (up $6.5 billion, or 3.7 percent), and 

nonfarm nonresidential loans (up $6 billion, or 1.6 

percent). Year-over-year loan growth at community banks 

(7.6 percent) outpaced the industry (4.9 percent). Close 

to 50 percent of the annual increase at community banks 

was accounted for by nonfarm nonresidential loans (up 

$23.9 billion, or 6.5 percent) and commercial and industrial loans (up $17.5 billion, or 10.5 percent). Total 

unused construction and development commitments 

increased by $4 billion (7 percent) to $61 billion, indicating stronger construction and development lending in 

future quarters.

Community Banks Continue to Support Small Loans 

to Businesses

Small loans to businesses—loans to commercial borrowers up to $1 million, and farm loans up to $500,000—

totaled $297.9 billion at community banks in the second 

quarter, up $5 billion (1.7 percent) from the previous 

quarter and $9 billion (3.1 percent) from second quarter 

2013. Close to 62 percent of community banks increased 

small loans to businesses from the first quarter, led by 

agricultural production loans (up $2.1 billion, or 9.1 

percent) and commercial and industrial loans ($1.7 

billion, or 1.9 percent). As in community banks, the 

industry increased small loans to businesses from the year 

before, but at a slower rate (1.1 percent). Almost half (48 

percent) of the year-over-year increase in small loans to 

businesses at community banks was driven by an increase 

in commercial and industrial loans. Community banks 

continued to hold 45 percent of small loans to businesses.

Noncurrent Loan Rate Declines to Pre-Crisis Level

Community banks reported the noncurrent rate of 1.54 

percent in the second quarter, the lowest level since 

fourth quarter 2007. The noncurrent rate fell 14 basis 

points from the first quarter, 58 basis points from the 

previous year, and is 70 basis points below the industry 

rate of 2.24 percent. The noncurrent rate declined for all 

major loan categories from the first quarter. Although 

construction and development loans have the highest 

noncurrent rate (3.36 percent), that rate has declined for 

15 consecutive quarters. The coverage ratio (loan loss 

reserves relative to noncurrent loans) for community 

banks improved from 91.09 percent to 96.08 percent 

during the quarter, and is well above the industry average of 70.54 percent. Despite a small decline in reserves 

during the quarter ($172 million, or 0.9 percent), the 

coverage ratio has increased for 11 consecutive quarters.

Community Banks Decline From the Previous Quarter

The number of FDIC-insured community banks totaled 

6,163 in the second quarter of 2014, down 71 from the 

first quarter. Seven community banks failed during the 

quarter, while 40 merged. Community banks continued 

to represent 93 percent of all insured institutions, with 

$2 trillion in assets, $1.7 trillion in deposits, and $224 

billion in equity capital.

Author: Benjamin Tikvina, Economic Analyst

 Division of Insurance and Research

 (202) 898-6578

Change in Loan Balances and Unused Commitments

FDIC-Insured Community Banks

Source: FDIC. 

Billions of Dollars

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential RE

C&I

Loans

1-to-4

Family

Residential RE

C&D

Loans

Agricultural

Production

Loans

Loans to

Individuals

Home

Equity

C&D

Loans

C&I

Loans

23.9

17.5

7.4 7.2

12.6

1.7

3.4

4.5

15.6

0.3

4.0

1.2 2.0

4.0 3.3

9.2

6.5 6.0

Change 2Q 2013 - 2Q 2014

Change 1Q 2014 - 2Q 2014

Chart 3 Chart 4

Noncurrent Loan Rates for FDIC-Insured Community Banks

Percent of Loan Portfolio Noncurrent

Source: FDIC.

C&D Loans

Nonfarm Nonresidential RE

1-to-4 Family RE

C&I Loans

Home Equity

Credit Cards

0

2

4

6

8

10

12

14

16

2006 2007 2008 2009 2010 2011 2012 2013 2014
FDIC Quarterly 16 2014, Volume 8, No. 3

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

2014* 2013* 2013 2012 2011 2010 2009

Return on assets (%)������������������������������������������������������������������������������������������������������ 0.93 0.93 0.90 0.83 0.55 0.2

Return on equity (%)������������������������������������������������������������������������������������������������������� 8.52 8.55 8.29 7.67 5.17 2.0

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 10.59 10.41 10.44 10.18 9.98 9.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 1.51 2.02 1.73 2.27 2.84 3.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 0.18 0.31 0.32 0.59 0.87 1.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 0.50 0.74 0.25 2.24 1.47 -2.

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.59 3.55 3.59 3.67 3.74 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 1.49 21.59 14.78 56.54 204.98 204.72 

Number of institutions reporting������������������������������������������������������������������������������������� 6,163 6,425 6,307 6,543 6,800 7,017 7,254

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 6.85 8.45 8.42 11.16 16.35 22.1

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

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

(dollar figures in millions)  2nd Quarter

2014

1st Quarter

2014

2nd Quarter

2013

%Change 

13Q2-14Q2

Number of institutions reporting������������������������������������������������������������������������������������� 6,163 6,234 6,425 -4.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 448,004 449,907 463,121 -3.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $2,022,294 $2,035,133 $2,012,239 0.

Loans secured by real estate���������������������������������������������������������������������������������� 1,004,765 999,143 981,625 2.

 1-4 Family residential mortgages �������������������������������������������������������������������� 354,196 349,756 350,425 1.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 392,685 394,589 388,116 1.

 Construction and development������������������������������������������������������������������������ 79,632 77,818 75,795 5.

 Home equity lines��������������������������������������������������������������������������������������������� 47,982 47,457 49,063 -2.

Commercial & industrial loans �������������������������������������������������������������������������������� 184,975 182,137 175,618 5.

Loans to individuals������������������������������������������������������������������������������������������������� 57,006 55,452 54,679 4.

 Credit cards ������������������������������������������������������������������������������������������������������ 1,817 1,766 1,962 -7.

Farm loans��������������������������������������������������������������������������������������������������������������� 43,640 39,670 39,385 10.

Other loans & leases����������������������������������������������������������������������������������������������� 28,584 27,983 27,605 3.

Less: Unearned income ������������������������������������������������������������������������������������������ 555 553 512 8.

Total loans & leases ������������������������������������������������������������������������������������������������ 1,318,416 1,303,854 1,278,401 3.

Less: Reserve for losses����������������������������������������������������������������������������������������� 19,542 20,020 21,330 -8.

Net loans and leases����������������������������������������������������������������������������������������������� 1,298,875 1,283,834 1,257,070 3.

Securities����������������������������������������������������������������������������������������������������������������� 458,181 463,856 470,350 -2.

Other real estate owned������������������������������������������������������������������������������������������ 10,011 10,817 13,215 -24.

Goodwill and other intangibles ������������������������������������������������������������������������������� 12,505 12,682 12,483 0.

All other assets�������������������������������������������������������������������������������������������������������� 242,723 263,943 259,121 -6.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 2,022,294 2,035,133 2,012,239 0.

Deposits������������������������������������������������������������������������������������������������������������������� 1,664,159 1,688,062 1,663,419 0.

 Domestic office deposits���������������������������������������������������������������������������������� 1,663,936 1,687,831 1,663,202 0.

 Foreign office deposits������������������������������������������������������������������������������������� 222 231 217 2.

 Brokered deposits �������������������������������������������������������������������������������������������� 56,185 56,085 52,112 7.

Estimated insured deposits������������������������������������������������������������������������������������� 1,303,756 1,327,026 1,331,162 -2.

Other borrowed funds ��������������������������������������������������������������������������������������������� 118,992 111,548 114,843 3.

Subordinated debt��������������������������������������������������������������������������������������������������� 420 432 505 -16.

All other liabilities ���������������������������������������������������������������������������������������������������� 14,826 14,197 15,790 -6.

Total equity capital (includes minority interests)���������������������������������������������������� 223,897 220,895 217,682 2.

 Bank equity capital������������������������������������������������������������������������������������������� 223,751 220,749 217,532 2.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 8,946 10,815 10,501 -14.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 20,339 21,978 27,079 -24.

Restructured loans and leases �������������������������������������������������������������������������������������� 11,127 11,467 12,881 -13.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 201,690 204,670 210,999 -4.

Earning assets���������������������������������������������������������������������������������������������������������������� 1,866,002 1,876,767 1,852,552 0.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 87,114 80,233 79,877 9.

Unused loan commitments��������������������������������������������������������������������������������������������� 242,722 244,854 245,633 -1.

Trust assets��������������������������������������������������������������������������������������������������������������������� 243,763 237,567 215,222 13.

Assets securitized and sold ������������������������������������������������������������������������������������������� 15,438 15,169 17,274 -10.

Notional amount of derivatives��������������������������������������������������������������������������������������� 49,048 44,467 54,988 -10.

INCOME DATA

First Half

 2014

First Half

2013 %Change

2nd Quarter 

2014

2nd Quarter 

2013

%Change 

13Q2-14Q2

Total interest income ������������������������������������������������������������������� $37,601 $38,344 -1.9 $19,027 $19,244 -1

Total interest expense ����������������������������������������������������������������� 4,560 5,490 -16.94 2,277 2,683 -15

Net interest income �������������������������������������������������������������� 33,041 32,854 0.6 16,750 16,561 1

Provision for loan and lease losses �������������������������������������������� 1,089 1,718 -36.6 559 862 -35

Total noninterest income������������������������������������������������������������� 8,719 10,076 -13.5 4,535 5,217 -13

Total noninterest expense����������������������������������������������������������� 29,025 29,850 -2.8 14,632 14,989 -2

Securities gains (losses)������������������������������������������������������������� 280 534 -47.6 139 246 -43

Applicable income taxes ������������������������������������������������������������� 2,661 2,558 4.0 1,371 1,346 1

Extraordinary gains, net�������������������������������������������������������������� 8 16 -48.8 3 14 -78

Total net income (includes minority interests)��������������������� 9,273 9,353 -0.9 4,866 4,840 0

 Bank net income������������������������������������������������������������ 9,264 9,342 -0.8 4,860 4,835 0

Net charge-offs���������������������������������������������������������������������������� 1,159 1,974 -41.3 622 1,060 -41

Cash dividends ���������������������������������������������������������������������������� 4,322 3,935 9.8 2,339 2,168 7

Retained earnings ����������������������������������������������������������������������� 4,942 5,407 -8.6 2,521 2,666 -5

Net operating income����������������������������������������������������������� 9,049 8,916 1.5 4,753 4,630 2

N/M - Not Meaningful
FDIC Quarterly 17 2014, Volume 8, No. 3

Quarterly Banking Profile

TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks

Second Quarter 2014

(dollar figures in millions)

Geographic Regions*

All Community Banks New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting����������������������������������� 6,163 722 769 1,376 1,566 1,314 416

Total employees (full-time equivalent)������������������������� 448,004 86,180 59,009 97,748 73,048 96,466 35,553

CONDITION DATA

Total assets������������������������������������������������������������������� $2,022,294 $495,899 $249,577 $394,285 $320,145 $391,520 $170,869

Loans secured by real estate�������������������������������� 1,004,765 282,009 132,912 196,551 138,831 171,513 82,949

 1-4 Family residential mortgages ������������������ 354,196 117,337 42,077 72,843 45,714 57,375 18,850

 Nonfarm nonresidential���������������������������������� 392,685 100,044 58,753 72,919 46,987 71,040 42,942

 Construction and development���������������������� 79,632 14,235 14,521 11,628 10,274 22,432 6,543

 Home equity lines������������������������������������������� 47,982 15,576 7,706 11,404 4,400 4,315 4,582

Commercial & industrial loans ������������������������������ 184,975 41,335 19,324 36,414 30,810 40,014 17,079

Loans to individuals����������������������������������������������� 57,006 10,638 7,341 11,675 9,635 13,455 4,261

 Credit cards ���������������������������������������������������� 1,817 201 135 452 428 321 280

Farm loans������������������������������������������������������������� 43,640 486 1,131 6,640 24,209 8,513 2,660

Other loans & leases��������������������������������������������� 28,584 6,910 2,007 5,458 5,086 6,258 2,866

Less: Unearned income ���������������������������������������� 555 144 97 63 25 118 109

Total loans & leases ���������������������������������������������� 1,318,416 341,234 162,618 256,676 208,547 239,635 109,706

Less: Reserve for losses��������������������������������������� 19,542 4,204 2,633 4,203 3,136 3,480 1,885

Net loans and leases��������������������������������������������� 1,298,875 337,029 159,986 252,474 205,410 236,155 107,821

Securities��������������������������������������������������������������� 458,181 104,223 50,821 90,828 76,087 99,970 36,252

Other real estate owned���������������������������������������� 10,011 1,146 2,648 2,104 1,565 1,870 677

Goodwill and other intangibles ����������������������������� 12,505 3,800 1,237 2,479 1,697 2,244 1,049

All other assets������������������������������������������������������ 242,723 49,700 34,885 46,401 35,385 51,281 25,070

Total liabilities and capital �������������������������������������������� 2,022,294 495,899 249,577 394,285 320,145 391,520 170,869

Deposits����������������������������������������������������������������� 1,664,159 393,104 208,381 327,373 262,450 330,499 142,352

 Domestic office deposits�������������������������������� 1,663,936 392,999 208,309 327,348 262,450 330,499 142,332

 Foreign office deposits����������������������������������� 222 105 73 25 0 0 20

 Brokered deposits ������������������������������������������ 56,185 16,117 6,713 11,892 8,435 8,630 4,398

 Estimated insured deposits ��������������������������� 1,303,756 301,252 164,100 269,611 213,647 249,351 105,796

Other borrowed funds ������������������������������������������� 118,992 42,766 11,940 20,585 20,664 16,347 6,689

Subordinated debt������������������������������������������������� 420 204 58 104 7 5 43

All other liabilities �������������������������������������������������� 14,826 4,624 1,713 2,864 1,835 2,337 1,453

Total equity capital (includes minority interests)�� 223,897 55,201 27,484 43,360 35,189 42,332 20,331

 Bank equity capital����������������������������������������� 223,751 55,155 27,474 43,304 35,186 42,302 20,329

Loans and leases 30-89 days past due����������������������� 8,946 2,271 1,404 1,888 1,211 1,828 344

Noncurrent loans and leases ��������������������������������������� 20,339 5,592 3,548 4,832 2,184 2,797 1,386

Restructured loans and leases ������������������������������������ 11,127 2,244 2,089 3,102 1,352 1,333 1,008

Mortgage-backed securities ���������������������������������������� 201,690 57,778 22,565 36,890 27,008 39,128 18,320

Earning assets�������������������������������������������������������������� 1,866,002 460,702 227,761 362,962 296,520 360,282 157,774

FHLB Advances������������������������������������������������������������ 87,114 34,317 8,914 14,204 14,024 12,061 3,594

Unused loan commitments������������������������������������������� 242,722 58,154 28,270 47,262 41,514 43,250 24,273

Trust assets������������������������������������������������������������������� 243,763 54,235 9,284 66,505 63,463 40,007 10,268

Assets securitized and sold ����������������������������������������� 15,438 3,080 515 6,022 4,342 592 887

Notional amount of derivatives������������������������������������� 49,048 15,591 6,433 10,302 6,013 8,329 2,380

INCOME DATA

Total interest income ���������������������������������������������������� $19,027 $4,501 $2,449 $3,640 $3,025 $3,803 $1,609

Total interest expense �������������������������������������������������� 2,277 673 300 432 372 376 124

Net interest income ����������������������������������������������� 16,750 3,828 2,148 3,208 2,653 3,428 1,485

Provision for loan and lease losses ����������������������������� 559 163 66 114 76 119 20

Total noninterest income���������������������������������������������� 4,535 765 565 1,211 714 917 363

Total noninterest expense �������������������������������������������� 14,632 3,206 1,994 3,006 2,221 2,928 1,277

Securities gains (losses)���������������������������������������������� 139 69 16 17 11 20 6

Applicable income taxes ���������������������������������������������� 1,371 416 160 298 138 207 153

Extraordinary gains, net����������������������������������������������� 3 0 1 2 0 0 0

Total net income (includes minority interests)������ 4,866 877 512 1,019 943 1,110 404

 Bank net income��������������������������������������������� 4,860 876 511 1,016 943 1,110 404

Net charge-offs������������������������������������������������������������� 622 135 116 172 71 106 22

Cash dividends ������������������������������������������������������������� 2,339 271 151 542 590 519 266

Retained earnings �������������������������������������������������������� 2,521 605 360 474 354 590 138

Net operating income�������������������������������������������� 4,753 826 498 1,003 932 1,095 399

* See Table V-A (page 11) for explanations
FDIC QUARTERLY 18 2014, VOLUME 8, NO. 3

Table IV-B. Second Quarter 2014, FDIC-Insured Community Banks

All Community Banks Second Quarter 2014, Geographic Regions*

2nd Quarter 

2014

1st Quarter 

2014 New York Atlanta Chicago Kansas City Dallas San Francisco

Performance ratios (annualized, %)

Yield on earning assets .................................................. 4.10 4.07 3.94 4.33 4.03 4.09 4.25 4.13

Cost of funding earning assets ...................................... 0.49 0.50 0.59 0.53 0.48 0.50 0.42 0.32

 Net interest margin .................................................. 3.61 3.57 3.35 3.80 3.55 3.59 3.83 3.81

Noninterest income to assets ......................................... 0.90 0.82 0.62 0.91 1.24 0.89 0.94 0.86

Noninterest expense to assets ....................................... 2.91 2.91 2.61 3.21 3.07 2.78 3.01 3.03

Loan and lease loss provision to assets ........................ 0.11 0.11 0.13 0.11 0.12 0.10 0.12 0.05

Net operating income to assets ..................................... 0.95 0.85 0.67 0.80 1.02 1.17 1.12 0.95

Pretax return on assets .................................................. 1.24 1.12 1.05 1.08 1.34 1.35 1.35 1.32

Return on assets ............................................................. 0.97 0.87 0.71 0.82 1.04 1.18 1.14 0.96

Return on equity ............................................................. 8.82 8.04 6.45 7.55 9.53 10.86 10.63 8.10

Net charge-offs to loans and leases .............................. 0.19 0.17 0.16 0.29 0.27 0.14 0.18 0.08

Loan and lease loss provision to net charge-offs.......... 89.84 100.97 120.52 56.76 66.67 107.23 112.21 92.52

Efficiency ratio ................................................................ 68.41 70.52 69.44 73.05 67.71 65.59 67.13 68.90

Net interest income to operating revenue ...................... 78.69 80.01 83.35 79.17 72.60 78.80 78.89 80.36

% of unprofitable institutions .......................................... 6.99 7.59 8.03 10.66 7.92 4.34 5.18 11.06

% of institutions with earnings gains .............................. 57.59 53.99 53.46 59.69 54.36 58.30 60.35 60.10

Table V-B. First Half 2014, FDIC-Insured Community Banks

All Community Banks First Half 2014, Geographic Regions*

First Half

 2014

First Half 

2013 New York Atlanta Chicago Kansas City Dallas San Francisco

Performance ratios (%)

Yield on earning assets .................................................. 4.09 4.15 3.93 4.32 4.01 4.08 4.23 4.08

Cost of funding earning assets ...................................... 0.50 0.59 0.59 0.54 0.48 0.51 0.42 0.32

 Net interest margin .................................................. 3.59 3.55 3.34 3.78 3.53 3.57 3.80 3.76

Noninterest income to assets ......................................... 0.87 1.00 0.62 0.84 1.19 0.90 0.89 0.84

Noninterest expense to assets ....................................... 2.91 2.97 2.62 3.19 3.07 2.78 3.00 3.01

Loan and lease loss provision to assets ........................ 0.11 0.17 0.13 0.11 0.13 0.09 0.12 0.03

Net operating income to assets ..................................... 0.91 0.89 0.66 0.74 0.95 1.13 1.09 0.94

Pretax return on assets .................................................. 1.20 1.18 1.02 1.01 1.26 1.36 1.29 1.29

Return on assets ............................................................. 0.93 0.93 0.70 0.76 0.96 1.15 1.10 0.95

Return on equity ............................................................. 8.52 8.55 6.38 7.01 8.93 10.66 10.32 8.03

Net charge-offs to loans and leases .............................. 0.18 0.31 0.16 0.26 0.27 0.12 0.15 0.08

Loan and lease loss provision to net charge-offs.......... 93.97 87.05 118.08 66.14 74.32 108.50 125.26 58.00

Efficiency ratio ................................................................ 69.17 69.21 70.04 74.08 68.85 65.80 68.01 69.59

Net interest income to operating revenue ...................... 79.12 76.53 83.43 80.48 73.12 78.49 79.66 80.63

% of unprofitable institutions .......................................... 6.85 8.45 7.48 11.83 8.21 3.96 4.03 11.78

% of institutions with earnings gains .............................. 56.04 52.59 50.14 59.69 52.40 58.43 58.45 55.05

* See Table V-A (page 11) for explanations.
FDIC Quarterly 19 2014, Volume 8, No. 3

Quarterly Banking Profile

Table VI-B. Loan Performance, FDIC-Insured Community Banks

June 30, 2014

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 ������������������������������������������� 0.67 0.61 0.84 0.78 0.58 0.

Construction and development������������������������������������� 0.60 0.60 0.73 0.71 0.53 0.

Nonfarm nonresidential������������������������������������������������� 0.49 0.46 0.64 0.61 0.42 0.

Multifamily residential real estate ��������������������������������� 0.30 0.20 0.38 0.51 0.25 0.

Home equity loans��������������������������������������������������������� 0.54 0.58 0.58 0.52 0.42 0.

Other 1-4 family residential������������������������������������������� 1.01 0.87 1.27 1.12 0.89 1.

Commercial and industrial loans ����������������������������������������� 0.55 0.53 0.68 0.50 0.62 0.

Loans to individuals�������������������������������������������������������������� 1.66 2.79 1.99 1.14 1.04 1.

Credit card loans ����������������������������������������������������������� 1.67 3.05 1.37 1.09 2.64 1.

Other loans to individuals ��������������������������������������������� 1.66 2.79 2.00 1.14 0.97 1.

All other loans and leases (including farm) ������������������������� 0.34 0.28 0.38 0.30 0.40 0.

Total loans and leases���������������������������������������������������������� 0.68 0.67 0.86 0.74 0.58 0.

Percent of Loans Noncurrent**

All loans secured by real estate ������������������������������������������� 1.72 1.78 2.31 2.14 1.19 1.

Construction and development������������������������������������� 3.36 3.67 5.30 4.42 2.77 1.

Nonfarm nonresidential������������������������������������������������� 1.66 1.67 1.99 2.26 1.28 1.

Multifamily residential real estate ��������������������������������� 0.82 0.44 1.85 1.62 0.77 0.

Home equity loans��������������������������������������������������������� 0.92 0.98 0.94 1.15 0.57 0.

Other 1-4 family residential������������������������������������������� 1.82 2.11 2.04 2.11 1.26 1.

Commercial and industrial loans ����������������������������������������� 1.22 1.12 1.41 1.41 1.18 1.

Loans to individuals�������������������������������������������������������������� 0.86 0.84 2.42 0.47 0.53 0.

Credit card loans ����������������������������������������������������������� 0.81 1.43 0.57 0.72 0.99 0.

Other loans to individuals ��������������������������������������������� 0.86 0.83 2.46 0.46 0.51 0.

All other loans and leases (including farm) ������������������������� 0.45 0.31 0.97 0.53 0.40 0.

Total loans and leases���������������������������������������������������������� 1.54 1.64 2.18 1.88 1.05 1.

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate ������������������������������������������� 0.14 0.12 0.23 0.25 0.09 0.

Construction and development������������������������������������� 0.19 0.24 0.54 0.37 -0.10 0.0

Nonfarm nonresidential������������������������������������������������� 0.14 0.12 0.22 0.25 0.13 0.

Multifamily residential real estate ��������������������������������� 0.10 0.03 0.11 0.23 0.10 0.3

Home equity loans��������������������������������������������������������� 0.20 0.18 0.24 0.31 0.13 0.

Other 1-4 family residential������������������������������������������� 0.15 0.13 0.16 0.27 0.12 0.

Commercial and industrial loans ����������������������������������������� 0.27 0.29 0.33 0.33 0.21 0.

Loans to individuals�������������������������������������������������������������� 0.62 0.75 0.67 0.51 0.61 0.

Credit card loans ����������������������������������������������������������� 4.03 5.92 1.37 3.31 7.86 1.

Other loans to individuals ��������������������������������������������� 0.51 0.64 0.65 0.39 0.27 0.

All other loans and leases (including farm) ������������������������� 0.12 0.09 0.17 0.09 0.04 0.

Total loans and leases���������������������������������������������������������� 0.18 0.16 0.26 0.27 0.12 0.

Loans Outstanding (in billions)

All loans secured by real estate ������������������������������������������� $1,004.8 $282.0 $132.9 $196.6 $138.8 $171.

Construction and development������������������������������������� 79.6 14.2 14.5 11.6 10.3 2

Nonfarm nonresidential������������������������������������������������� 392.7 100.0 58.8 72.9 47.0 71

Multifamily residential real estate ��������������������������������� 73.1 33.3 5.8 14.0 7.0 

Home equity loans��������������������������������������������������������� 48.0 15.6 7.7 11.4 4.4 

Other 1-4 family residential������������������������������������������� 354.2 117.3 42.1 72.8 45.7 57

Commercial and industrial loans ����������������������������������������� 185.0 41.3 19.3 36.4 30.8 40

Loans to individuals�������������������������������������������������������������� 57.0 10.6 7.3 11.7 9.6 1

Credit card loans ����������������������������������������������������������� 1.8 0.2 0.1 0.5 0.4 

Other loans to individuals ��������������������������������������������� 55.2 10.4 7.2 11.2 9.2 1

All other loans and leases (including farm) ������������������������� 72.2 7.4 3.1 12.1 29.3 1

Total loans and leases���������������������������������������������������������� 1,319.0 341.4 162.7 256.7 208.6 239.

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments ��������������������������������������������� 242,722 58,154 28,270 47,262 41,514 43,250 24,273

Construction and development: 1-4 family residential �� 18,497 3,887 3,276 2,118 2,352 5,219 1,645

Construction and development: CRE and other ����������� 41,175 12,192 5,488 6,421 5,041 8,858 3,175

Commercial and industrial �������������������������������������������� 83,388 18,833 8,668 17,855 13,553 15,518 8,962

* See Table V-A (page 11) for explanations

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 20 2014, Volume 8, No. 3

Total assets of the 6,656 FDIC-insured institutions 

increased by 1.8 percent ($263.1 billion) during the 

second quarter. 1 Total deposits increased by 1.5 

percent ($172.4 billion). Domestic office deposits 

increased by 1.4 percent ($136.6 billion), and foreign 

office deposits increased by 2.6 percent ($35.8 billion). 

Domestic noninterest-bearing deposits increased by 4.3 

percent ($115 billion), while interest-bearing checking 

and savings accounts were nearly unchanged, decreasing by only 0.02 percent ($1.1 billion) from the previous quarter. Domestic time deposits increased by 1.4 

percent ($22.6 billion). Over the past four quarters, 

total domestic deposits grew by 7.1 percent ($663.2 

billion), with interest-bearing deposits increasing by 5 

percent ($344.3 billion) and noninterest-bearing 

deposits rising by 13 percent ($318.8 billion). Foreign 

deposits increased by 3.4 percent, other borrowed 

money increased by 14.8 percent (led by an increase in 

FHLB advances), and securities sold under agreements 

to repurchase declined by 18.7 percent over the same 

four-quarter period.2

1

 Throughout the insurance fund discussion, FDIC-insured institutions 

include insured commercial banks and savings associations and, 

except where noted, exclude insured branches of foreign banks. 

2

 Other borrowed money includes FHLB advances, term federal funds, 

mortgage indebtedness, and other borrowings.

Total estimated insured deposits decreased by 0.2 

percent from the prior quarter and increased by 2.6 

percent from one year earlier.3 For institutions existing 

at the start and the end of the second quarter, insured 

deposits increased during the quarter at 2,561 institutions (38 percent), decreased at 4,063 institutions (61 

percent), and remained unchanged at 32 institutions.

The condition of the Deposit Insurance Fund (DIF) 

continues to improve. The DIF increased by $2.2 

billion during the second quarter to $51.1 billion. 

Assessment income of $2.2 billion was primarily responsible for the increase. Negative provisions for insurance 

losses of $204 million, interest earned on investments of 

$87 million, unrealized gains on available-for-sale securities of $73 million, and other miscellaneous income of 

$6 million also added to the fund. Operating expenses 

of $428 million partially offset the fund balance 

increase. During the second quarter of 2014, 7 insured 

institutions with combined assets of $853 million failed, 

at an estimated cost to the fund of $112 million. The 

DIF’s reserve ratio—the DIF fund balance as a percent 

of estimated insured deposits—was 0.84 percent as of 

the second quarter, up from 0.80 percent in the prior 

quarter and 0.64 percent one year earlier.

3

 Figures for estimated insured deposits in this discussion include 

insured branches of foreign banks, in addition to insured commercial 

banks and savings institutions.

■ Fund Balance Increases to $51.1 Billion

■ DIF Reserve Ratio Rises 4 Basis Points to 0.84 Percent

■ Seven Institutions Fail During Second Quarter

INSURANCE FUND INDICATORS
FDIC Quarterly 21 2014, Volume 8, No. 3

Quarterly Banking Profile

Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets 

minus average tangible equity.4 Revisions to insurance 

assessment rates and risk-based pricing rules for large 

banks (banks with assets greater than $10 billion) also 

became effective on that date.5 Table 1 shows the distribution of the assessment base by institution asset size 

category as of the second quarter of 2014.

Dodd-Frank requires that, for at least five years, the 

FDIC must make available to the public the reserve 

ratio and the Designated Reserve Ratio (DRR) using 

4

 There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank.

5

 The Fourth Quarter 2010 Quarterly Banking Profile includes a more 

detailed explanation of these changes.

both estimated insured deposits and the new assessment 

base. As of June 30, 2014, the FDIC reserve ratio would 

have been 0.40 percent using the new assessment base 

(compared to 0.84 percent using estimated insured 

deposits), and the 2 percent DRR using estimated 

insured deposits would have been 0.95 percent using 

the new assessment base.

Author: Kevin Brown, Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

Table 1

Distribution of the Assessment Base for FDIC-Insured Institutions* 

by Asset Size

Data as of June 30, 2014

Asset Size

Number of 

Institutions

Percent of 

Total Institutions

Assessment Base** 

($ Bil.)

Percent of 

Base

Less Than $1 Billion 5,982 89.9 $1,194.7 9.3

$1 - $10 Billion 565 8.5 1,320.7 10.3

$10 - $50 Billion 73 1.1 1,405.5 10.9

$50 - $100 Billion 12 0.2 789.0 6.1

Over $100 Billion 24 0.4 8,147.5 63.4

Total 6,656 100.0 12,857.4 100.0

* Excludes insured U.S. branches of foreign banks.

** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.
FDIC Quarterly 22 2014, Volume 8, No. 3

DIF Reserve Ratios

Percent of Insured Deposits

0.32 0.35

0.44

0.60

0.64 0.68

0.80

0.06

0.12

0.17

0.22

0.78

0.84

6/11 12/11 6/12 12/12 6/13 12/13 6/14

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

2nd 

Quarter 

2014

1st 

Quarter 

2014

4th 

Quarter 

2013

3rd 

Quarter 

2013

2nd 

Quarter 

2013

1st 

Quarter 

2013

4th 

Quarter 

2012

3rd 

Quarter 

2012

2nd 

Quarter 

2012

1st 

Quarter 

2012

4th 

Quarter 

2011

3rd 

Quarter 

2011

2nd 

Quarter 

2011

Beginning Fund Balance ... $48,893 $47,191 $40,758 $37,871 $35,742 $32,958 $25,224 $22,693 $15,292 $11,827 $7,813 $3,916 -$1,023

Changes in Fund Balance:

Assessments earned .......... 2,224 2,393 2,224 2,339 2,526 2,645 2,937 2,833 2,933 3,694 3,209 3,642 3,163

Interest earned on 

investment securities ...... 87 45 23 34 54 -9 66 -8 81 20 33 30 37

Realized gain on sale of

investments...................... 0 0 302 156 0 0 0 0 0 0 0 0 0

Operating expenses ........... 428 422 436 298 439 436 469 442 407 460 334 433 463

Provision for insurance 

losses .............................. -204 348 -4,588 -539 -33 -499 -3,344 -84 -807 12 1,533 -763 -2,095

All other income, 

net of expenses ............... 6 9 9 46 51 55 1,878 57 4,095 63 2,599 83 80

Unrealized gain/(loss) on 

available-for-sale 

securities ......................... 73 25 -277 71 -96 30 -22 7 -108 160 40 -188 27

Total fund balance change ... 2,166 1,702 6,433 2,887 2,129 2,784 7,734 2,531 7,401 3,465 4,014 3,897 4,939

Ending Fund Balance ....... 51,059 48,893 47,191 40,758 37,871 35,742 32,958 25,224 22,693 15,292 11,827 7,813 3,916

Percent change from 

 four quarters earlier ....... 34.82 36.79 43.19 61.58 66.88 133.73 178.67 222.85 479.49 NM

Reserve Ratio (%) ............. 0.84 0.80 0.78 0.68 0.64 0.60 0.44 0.35 0.32 0.22 0

Estimated Insured 

Deposits** .......................... 6,109,217 6,124,064 6,014,696 5,970,277 5,953,671 6,000,746 7,406,525 7,249,849 7,083,434 7,032,875 6,974,690 6,756,302 6,523,225

Percent change from 

 four quarters earlier ....... 2.61 2.06 -18.79 -17.65 -15.95 -14.68 6.19 7.30 8.59 10.24 10.6

Domestic Deposits ........... 10,099,336 9,962,480 9,825,398 9,630,459 9,424,504 9,454,659 9,474,585 9,084,803 8,937,725 8,848,706 8,782,134 8,526,713 8,244,900

Percent change from 

 four quarters earlier ....... 7.16 5.37 3.70 6.01 5.45 6.85 7.88 6.55 8.40 10.51 11

Number of Institutions 

Reporting ....................... 6,665 6,739 6,821 6,900 6,949 7,028 7,092 7,190 7,254 7,317 7,366 7,446 7,522

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

6/11 $3,916 $6,523,225

9/11 7,813 6,756,302

12/11 11,827 6,974,690

3/12 15,292 7,032,875

6/12 22,693 7,083,434

9/12 25,224 7,249,849

12/12 32,958 7,406,525

3/13 35,742 6,000,746

6/13 37,871 5,953,671

9/13 40,758 5,970,277

12/13 47,191 6,014,696

3/14 48,893 6,124,064

6/14 51,059 6,109,217

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

(dollar figures in millions) 2014*** 2013*** 2013 2012 2011 2010 2009

Problem Institutions

Number of institutions �������������������������������������������������� 354 553 467 651 813 884 702

Total assets������������������������������������������������������������������� $110,212 $192,482 $152,687 $232,701 $319,432 $390,017 $402,782

Failed Institutions

Number of institutions �������������������������������������������������� 12 16 24 51 92 157 140

Total assets ������������������������������������������������������������� $1,571 $1,868 $6,044 $11,617 $34,923 $92,085 $169,709

Assisted Institutions** ***

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

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

* Quarterly financial statement results are unaudited. NM - Not meaningf

** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act

(Dodd-Frank) temporarily provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012

*** Through June 30

  Total assets are based on final Call Reports submitted by failed institutions

** *** Assisted institutions represent eight institutions under a single holding company that received assistance in 2009
FDIC Quarterly 23 2014, Volume 8, No. 3

Quarterly Banking Profile

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

(dollar figures in millions) 

June 30, 2014

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ����������������������������������������������� 5,757 $14,106,073 $9,251,576 $5,405,766

 FDIC-Supervised ������������������������������������������������������������������� 3,788 2,221,856 1,728,656 1,289,468

 OCC-Supervised�������������������������������������������������������������������� 1,109 9,696,045 6,078,024 3,383,957

 Federal Reserve-Supervised������������������������������������������������� 860 2,188,172 1,444,896 732,341

FDIC-Insured Savings Institutions ���������������������������������������������� 899 1,058,525 807,141 675,679

 OCC-Supervised Savings Institutions ����������������������������������� 470 693,490 535,182 453,291

 FDIC-Supervised Savings Institutions����������������������������������� 429 365,035 271,959 222,388

Total Commercial Banks and Savings Institutions ���������������������� 6,656 15,164,599 10,058,717 6,081,445

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks ������������������������������������������������� 9 104,690 40,619 27,7

Total FDIC-Insured Institutions���������������������������������������������������� . 6,665 15,269,289 10,099,336 6,109,2

* Excludes $1.4 trillion in foreign office deposits, which are uninsure

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending March 31, 2014 (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

2.50-5.00 1,376 20.42 $1,091 

5.01-7.50 2,946 43.72 9,572 7

7.51-10.00 1,378 20.45 1,490 1

10.01-15.00 599 8.89 369 

15.01-20.00 32 0.47 99 

 20.01-25.00 331 4.91 125 

 25.01-30.00 6 0.09 2 

 30.01-35.00 68 1.01 33 

greater than 35.00 3 0.04 8 0

* 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
FDIC Quarterly 24 2014, Volume 8, No. 3

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 gradually adjusted upward over 

time. For banking offices, banks must have more than one 

office, and the maximum number of offices starts at 40 in 1985 

and reaches 75 in 2010. The maximum level of deposits for 

any one office is $1.25 billion in deposits in 1985 and $5 billion in deposits in 2010. 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 over time from $250 million in 1985 to 

$1 billion in 2010, below which the limits on banking activities and geographic scope are waived. 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.

(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

1

 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 billion in 2010.

3

 Maximum number of offices indexed to equal 40 in 1985 and 75 

in 2010.

Notes to Users

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

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding 

the comparability of source data and reporting differences 

over time.

Tables I-A through VIII-A.

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

the FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and savings institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

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

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

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

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

while other tables aggregate institutions by asset size and 

geographic region. Quarterly and full-year data are provided 

for selected indicators, including aggregate condition and 

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

information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is 

aggregated for all FDIC-insured commercial banks and savings 

institutions meeting the criteria for community banks that 

were developed for the FDIC’s Community Banking Study, 

published in December, 2012: http://fdic.gov/regulations/

resources/cbi/report/cbi-full.pdf. 

The determination of which insured institutions are considered community banks is based on five steps.

The first step in defining a community bank is to aggregate 

all charter-level data reported under each holding company 

into a single banking organization. This aggregation applies 

both to balance-sheet measures and the number and location 

of banking offices. Under the FDIC definition, if the banking 

organization is designated as a community bank, every charter reporting under that organization is also considered a 

community bank when working with data at the charter 

level. 

The second step is to exclude any banking organization 

where more than 50 percent of total assets are held in certain 

specialty banking charters, including: credit card specialists, 

consumer nonbank banks, industrial loan companies, trust companies, bankers’ banks, and banks holding 10 percent or more 

of total assets in foreign offices. 

Once the specialty organizations are removed, the third step 

involves including organizations that engage in basic banking 

activities as measured by the total loans-to-assets ratio (greater than 33 percent) and the ratio of core deposits to assets 

(greater than 50 percent). Core deposits are defined as nonbrokered 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.
FDIC Quarterly 25 2014, Volume 8, No. 3

Quarterly Banking Profile

• 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/assisted institutions, 

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by the 

FDIC through the DIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered in 

foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to obtain 

financial reports for all active institutions. However, in some 

cases, final financial reports are not available for institutions 

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. (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 double-counting. No adjustments are made 

for any double-counting of subsidiary data. Additionally, 

certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports. (TFR 

filers began filing Call Reports effective with the quarter ending March 31, 2012.)

All asset and liability figures used in calculating performance 

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

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

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

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

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

4

 Maximum branch deposit size indexed to equal $1.25 billion in 1985 

and $5 billion in 2010.

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

across state lines or change their charters, resulting in an 

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

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Reclassification of Residential Real Estate Collateralized Consumer 

Mortgage Loans Upon Foreclosure

In January 2014, the FASB issued Accounting Standards 

Update (ASU) No. 2014-04, “Reclassification of Residential 

Real Estate Collateralized Consumer Mortgage Loans upon 

Foreclosure,” to address diversity in practice for when certain 

loan receivables should be derecognized and the real estate 

collateral recognized. The ASU updated guidance contained 

in Accounting Standards Codification Subtopic 310-40, 

Receivables–Troubled Debt Restructurings by Creditors (formerly FASB Statement No.15, “Accounting by Debtors and 

Creditors for Troubled Debt Restructurings,” as amended).

Under prior accounting guidance, all loan receivables were 

reclassified to other real estate owned (OREO) when the 

institution, as creditor, obtained physical possession of the 

property, regardless of whether formal foreclosure proceedings 

had taken place. The new ASU clarifies when a creditor is 

considered to have received physical possession (resulting 

from an in-substance repossession or foreclosure) of residential 

real estate collateralizing a consumer mortgage loan. Under 

the new guidance, physical possession for these residential real 

estate properties is considered to have occurred and a loan 

receivable would be reclassified to OREO only upon:

— The institution obtaining legal title upon completion of a 

foreclosure even if the borrower has redemption rights that 

provide the borrower with a legal right for a period of time 

after foreclosure to reclaim the property by paying certain 

amounts specified by law, or

— The completion of a deed in lieu of foreclosure or similar 

legal agreement under which the borrower conveys all 

interest in the residential real estate property to the institution to satisfy the loan.

Loans secured by real estate other than consumer mortgage 

loans collateralized by residential real estate should continue 

to be reclassified to OREO when the institution has received 

physical possession of a borrower’s real estate, regardless of 

whether formal foreclosure proceedings take place.

For institutions that are public business entities, as defined 

under U.S. generally accepted accounting principles, ASU 

2014-04 is effective for fiscal years, and interim periods within 

those fiscal years, beginning after December 15, 2014. For 

example, institutions with a calendar year fiscal year that are 

public business entities must apply the ASU in their Call 

Reports beginning March 31, 2015. However, institutions 

that are not public business entities are not required to apply 

the guidance in ASU 2014-04 until annual periods beginning 

after December 15, 2014, and interim periods within annual 

periods beginning after December 15, 2015. Thus, institutions 

with a calendar year fiscal year that are not public business 

entities must apply the ASU in their December 31, 2015, and 
FDIC Quarterly 26 2014, Volume 8, No. 3

Goodwill Impairment Testing – In September 2011, the FASB 

issued Accounting Standards Update (ASU) No. 2011-08, 

“Testing Goodwill for Impairment,” to address concerns about 

the cost and complexity of the existing goodwill impairment 

test in ASC Topic 350, Intangibles-Goodwill and Other 

(formerly FASB Statement No. 142, “Goodwill and Other 

Intangible Assets”). The ASU’s amendments to ASC 

Topic 350 are effective for annual and interim goodwill 

impairment tests performed for fiscal years beginning after 

December 15, 2011 (i.e., for annual or interim tests performed 

on or after January 1, 2012, for institutions with a calendar 

year fiscal year). Early adoption of the ASU was permitted. 

Under ASU 2011-08, an institution has the option of first 

assessing qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering 

all relevant events and circumstances, an institution determines it is unlikely (that is, a likelihood of 50 percent or less) 

that the fair value of a reporting unit is less than its carrying 

amount (including goodwill), then the institution does not 

need to perform the two-step goodwill impairment test. If the 

institution instead concludes that the opposite is true (that is, 

it is likely that the fair value of a reporting unit is less than its 

carrying amount), then it is required to perform the first step 

and, if necessary, the second step of the two-step goodwill 

impairment test. Under ASU 2011-08, an institution may 

choose to bypass the qualitative assessment for any reporting 

unit in any period and proceed directly to performing the first 

step of the two-step goodwill impairment test.

Extended Net Operating Loss Carryback Period – The Worker, 

Homeownership, and Business Assistance Act of 2009, which 

was enacted on November 6, 2009, permits banks and other 

businesses, excluding those banking organizations that 

received capital from the U.S. Treasury under the Troubled 

Asset Relief Program, to elect a net operating loss carryback 

period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after 

December 31, 2007, and beginning before January 1, 2010. 

For calendar-year banks, this extended carryback period 

applies to either the 2008 or 2009 tax year. The amount of 

the net operating loss that can be carried back to the fifth 

carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to 

other carryback years.

Under generally accepted accounting principles, banks may 

not record the effects of this tax change in their balance 

sheets and income statements for financial and regulatory 

reporting purposes until the period in which the law was 

enacted, i.e., the fourth quarter of 2009. Therefore, banks 

should recognize the effects of this fourth quarter 2009 tax 

law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in 

their Call Reports for December 31, 2009. Banks should not 

amend their Call Reports for prior quarters for the effects of 

the extended net operating loss carryback period.

The American Recovery and Reinvestment Act of 2009, 

which was enacted on February 17, 2009, permits qualifying 

small businesses, including FDIC-insured institutions, to elect 

a net operating loss carryback period of three, four, or five 

years instead of the usual carryback period of two years for 

any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally 

subsequent quarterly Call Reports. Earlier adoption of the 

guidance in ASU 2014-04 is permitted. Entities can elect to 

apply the ASU on either a modified retrospective transition 

basis or a prospective transition basis. Applying the ASU on a 

prospective transition basis should be less complex for institutions than applying the ASU on a modified retrospective transition basis. Under the prospective transition method, an 

institution should apply the new guidance to all instances 

where it receives physical possession of residential real estate 

property collateralizing consumer mortgage loans that occur 

after the date of adoption of the ASU. Under the modified 

retrospective transition method, an institution should apply a 

cumulative-effect adjustment to residential consumer mortgage 

loans and OREO existing as of the beginning of the annual 

period for which the ASU is effective. As a result of adopting 

the ASU on a modified retrospective basis, assets reclassified 

from OREO to loans should be measured at the carrying value 

of the real estate at the date of adoption while assets reclassified from loans to OREO should be measured at the lower of 

the net amount of the loan receivable or the OREO property’s 

fair value less costs to sell at the time of adoption.

For additional information, institutions should refer to ASU 

2014-04, which is available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.

Indemnification Assets and Accounting Standards Update No. 2012-

06 – In October 2012, the FASB issued Accounting Standards 

Update (ASU) No. 2012-06, “Subsequent Accounting for an 

Indemnification Asset Recognized at the Acquisition Date as 

a Result of a Government-Assisted Acquisition of a Financial 

Institution,” to address the subsequent measurement of an 

indemnification asset recognized in an acquisition of a financial institution that includes an FDIC loss-sharing agreement. 

This ASU amends ASC Topic 805, Business Combinations 

(formerly FASB Statement No. 141 (revised 2007),”Business 

Combinations”), which includes guidance applicable to FDICassisted acquisitions of failed institutions.

Under the ASU, when an institution experiences a change in 

the cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash 

flows expected to be collected on the assets covered by the 

loss-sharing agreement, the institution should account for the 

change in the measurement of the indemnification asset on 

the same basis as the change in the assets subject to indemnification. Any amortization of changes in the value of the 

indemnification asset should be limited to the lesser of the 

term of the indemnification agreement and the remaining life 

of the indemnified assets.

The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2012. 

For institutions with a calendar year fiscal year, the ASU takes 

effect January 1, 2013. Early adoption of the ASU is permitted. 

The ASU’s provisions should be applied prospectively to any 

new indemnification assets acquired after the date of adoption 

and to indemnification assets existing as of the date of adoption arising from an FDIC-assisted acquisition of a financial 

institution. Institutions with indemnification assets arising 

from FDIC loss-sharing agreements are expected to adopt ASU 

2012-06 for Call Report purposes in accordance with the effective date of this standard. For additional information, refer to 

ASU 2012-06, available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.
FDIC Quarterly 27 2014, Volume 8, No. 3

Quarterly Banking Profile

Troubled Debt Restructurings and Accounting Standards Update 

No. 2011-02 – In April 2011, the FASB issued Accounting 

Standards Update (ASU) No. 2011-02, “A Creditor’s 

Determination of Whether a Restructuring Is a Troubled 

Debt Restructuring,” to provide additional guidance to help 

creditors determine whether a concession has been granted to 

a borrower and whether a borrower is experiencing financial 

difficulties. The guidance is also intended to reduce diversity 

in practice in identifying and reporting TDRs. This ASU was 

effective for public companies for interim and annual periods 

beginning on or after June 15, 2011, and should have been 

applied retrospectively to the beginning of the annual period 

of adoption for purposes of identifying TDRs. The measurement of impairment for any newly identified TDRs resulting 

from retrospective application should have been applied prospectively in the first interim or annual period beginning on 

or after June 15, 2011. (For most public institutions, the ASU 

takes effect July 1, 2011, but retrospective application begins 

as of January 1, 2011.) Nonpublic companies should apply the 

new guidance for annual periods ending after December 15, 

2012, including interim periods within those annual periods. 

(For most nonpublic institutions, the ASU took effect 

January 1, 2012.) Early adoption of the ASU was permitted 

for both public and nonpublic entities. Nonpublic entities 

that adopt early are subject to a retrospective identification 

requirement. For additional information, refer to ASU 2011-

02, available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Accounting for Loan Participations – Amended ASC Topic 860 

(formerly FAS 166) modified the criteria that must be met in 

order for a transfer of a portion of a financial asset, such as a 

loan participation, to qualify for sale accounting. These 

changes apply to transfers of loan participations on or after 

the effective date of amended ASC Topic 860 (January 1, 

2010, for banks with calendar year fiscal year), including 

advances under lines of credit that are transferred on or after 

the effective date of amended ASC Topic 860 even if the line 

of credit agreements were entered into before this effective 

date. Therefore, banks with a calendar-year fiscal year must 

account for transfers of loan participations on or after January 

1, 2010, in accordance with amended ASC Topic 860. In 

general, loan participations transferred before the effective 

date of amended ASC Topic 860 are not affected by this new 

accounting standard.

Under amended ASC Topic 860, if a transfer of a portion of 

an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender) 

must evaluate whether the transfer meets all of the conditions 

in this accounting standard to qualify for sale accounting.

Other-Than-Temporary Impairment – When the fair value of an 

investment in an individual available-for-sale or held-tomaturity security is less than its cost basis, the impairment is 

either temporary or other-than-temporary. The amount of the 

total other-than-temporary impairment related to credit loss 

must be recognized in earnings, but the amount of total 

impairment related to other factors must be recognized in 

other comprehensive income, net of applicable taxes. To 

determine whether the impairment is other-than-temporary, 

an institution must apply the applicable accounting guidance 

– refer to previously published Quarterly Banking Profile notes: 

http://www2.fdic.gov/qbp/2011mar/qbpnot.html.

accepted accounting principles, institutions may not record 

the effect of this tax change in their balance sheets and 

income statements for financial and regulatory reporting 

purposes until the period in which the law was enacted, i.e., 

the first quarter of 2009.

Troubled Debt Restructurings and Current Market Interest Rates – 

Many institutions are restructuring or modifying the terms of 

loans to provide payment relief for those borrowers who have 

suffered deterioration in their financial condition. Such loan 

restructurings may include, but are not limited to, reductions 

in principal or accrued interest, reductions in interest rates, 

and extensions of the maturity date. Modifications may be 

executed at the original contractual interest rate on the loan, 

a current market interest rate, or a below-market interest rate. 

Many of these loan modifications meet the definition of a 

troubled debt restructuring (TDR).

The TDR accounting and reporting standards are set forth 

in ASC Subtopic 310-40, Receivables – Troubled Debt 

Restructurings by Creditors (formerly FASB Statement 

No. 15, “Accounting by Debtors and Creditors for Troubled 

Debt Restructurings,” as amended). This guidance specifies 

that a restructuring of a debt constitutes a TDR if, at the date 

of restructuring, the creditor for economic or legal reasons 

related to a debtor’s financial difficulties grants a concession 

to the debtor that it would not otherwise consider.

In the Call Report, until a loan that is a TDR is paid in full or 

otherwise settled, sold, or charged off, it must be reported in 

the appropriate loan category, as well as identified as a performing TDR loan, if it is in compliance with its modified 

terms. If a TDR is not in compliance with its modified terms, 

it is reported as a past-due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past 

due and nonaccrual loans. To be considered in compliance 

with its modified terms, a loan that is a TDR must not be in 

nonaccrual status and must be current or less than 30 days past 

due on its contractual principal and interest payments under 

the modified repayment terms. A loan restructured in a TDR 

is an impaired loan. Thus, all TDRs must be measured for 

impairment in accordance with ASC Subtopic 310-10, 

Receivables – Overall (formerly FASB Statement No. 114, 

“Accounting by Creditors for Impairment of a Loan,” as 

amended), and the Call Report Glossary entry for “Loan 

Impairment.” Consistent with ASC Subtopic 310-10, TDRs 

may be aggregated and measured for impairment with other 

impaired loans that share common risk characteristics by using 

historical statistics, such as average recovery period and 

average amount recovered, along with a composite effective 

interest rate. The outcome of such an aggregation approach 

must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call Report 

instructions for loans that are “individually” considered 

impaired instead of the measurement method prescribed in 

ASC Subtopic 450-20, Contingencies – Loss Contingencies 

(formerly FASB Statement No. 5, “Accounting for Contingencies”) for loans not individually considered impaired that 

are collectively evaluated for impairment. When a loan not 

previously considered individually impaired is restructured and 

determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan 

to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the 

methods prescribed in ASC Subtopic 310-10.
FDIC Quarterly 28 2014, Volume 8, No. 3

Assessment base – effective April 1, 2011, the deposit insurance assessment base has 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 DIF 

deposits (deposits insured by the FDIC Deposit Insurance 

Fund) in banks’ domestic offices with certain adjustments.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller- provided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 

2008 under the TARP, the Treasury Department purchase of 

noncumulative perpetual preferred stock and related warrants 

that is treated as Tier 1 capital for regulatory capital purposes 

is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued 

by publicly-traded banks are reflected as well in “Surplus.” 

Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock are classified in 

a bank’s balance sheet as “Other liabilities.”

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land 

acquisition and development.

Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated 

subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including servicing 

rights) included in core capital is limited in accordance with 

supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts 

to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit 

enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be 

associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by 

the Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, 

amounts of derivatives represent the level of involvement in 

the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent 

the amounts used to calculate contractual cash flows to be 

exchanged.

Derivatives credit equivalent amount – the fair value of the 

derivative plus an additional amount for potential future credit exposure based on the notional amount, the remaining 

maturity and type of the contract.

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 

ASC Topics 860 & 810 (formerly FASB Statements 166 & 167) – 

In June 2009, the FASB issued Statement No. 166, 

Accounting for Transfers of Financial Assets (FAS 166), and 

Statement No. 167, Amendments to FASB Interpretation 

No. 46(R) (FAS 167), which change the way entities account 

for securitizations and special purpose entities. FAS 166 

revised FASB Statement No. 140, Accounting for Transfers 

and Servicing of Financial Assets and Extinguishments of 

Liabilities, by eliminating the concept of a “qualifying specialpurpose entity,” creating the concept of a “participating interest,” changing the requirements for derecognizing financial 

assets, and requiring additional disclosures. FAS 167 revised 

FASB Interpretation No. 46(R), Consolidation of Variable 

Interest Entities, by changing how a bank or other company 

determines when an entity that is insufficiently capitalized or 

is not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under 

FAS 167, a bank must perform a qualitative assessment to 

determine whether its variable interest or interests give it a 

controlling financial interest in a VIE. If a bank’s variable 

interest or interests provide it with the power to direct the 

most significant activities of the VIE, and the right to receive 

benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE.

Both FAS 166 and FAS 167 take effect as of the beginning of 

each bank’s first annual reporting period that begins after 

November 15, 2009, for interim periods therein, and for 

interim and annual reporting periods thereafter (i.e., as of 

January 1, 2010, for banks with a calendar year fiscal year). 

Earlier application is prohibited. Banks are expected to adopt 

FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also, 

FAS 166 has modified the criteria that must be met in order 

for a transfer of a portion of a financial asset, such as a loan 

participation, to qualify for sale accounting. These changes 

apply to transfers of loan participations on or after the effective date of FAS 166. Therefore, banks with a calendar year 

fiscal year must account for transfers of loan participations on 

or after January 1, 2010, in accordance with FAS 166. In general, loan participations transferred before the effective date 

of FAS 166 (January 1, 2010, for calendar year banks) are not 

affected by this new accounting standard and pre-FAS 166 

participations that were properly accounted for as sales under 

FASB Statement No. 140 will continue to be reported as 

having been sold.

Accounting Standards Codification – refer to previously published Quarterly Banking Profile notes: http://www2.fdic.

gov/qbp/2011sep/qbpnot.html.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, 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.
FDIC Quarterly 29 2014, Volume 8, No. 3

Quarterly Banking Profile

closed assets—involves the use of fair values. During periods 

of market stress, the fair values of some financial instruments 

and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as 

reported by Call Report filers, and by TFR filers 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 

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

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

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

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

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off.

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

depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt.

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

percent of total assets on a consolidated basis.

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

operating income have been adjusted to exclude the portion 

applicable to securities gains (or losses).

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

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

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

or more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions 

that actually filed a financial report.

New 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 

traded on organized exchanges which set limits on counterparty credit exposure. Forward contracts do not have 

standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the 

right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

(strike price) during a period or on a specified future date, 

in return for compensation (such as a fee or premium). 

The seller is obligated to purchase or sell the variable or 

index at the discretion of the buyer of the contract.

Swaps – obligations between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying 

variable or index by specified reference rates or prices. 

Except for currency swaps, the notional principal is used 

to calculate each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk, and operational risk, as well as, 

interest rate risk.

Domestic deposits to total assets – total domestic office deposits 

as a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn 

interest or dividend income.

Efficiency ratio – Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, 

so that a lower value indicates greater efficiency.

Estimated insured deposits – in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Beginning March 31, 2008, for institutions that file Call 

Reports, insured deposits are total assessable deposits minus 

estimated uninsured deposits. Beginning September 30, 2009, 

insured deposits include deposits in accounts of $100,000 to 

$250,000 that are covered by a temporary increase in the 

FDIC’s standard maximum deposit insurance amount 

(SMDIA). 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 noninterestbearing transaction accounts as a new temporary deposit 

insurance account category. All funds held in noninterestbearing 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-for-sale securities, loans held for sale, assets and 

liabilities accounted for under the fair value option, and fore-
FDIC Quarterly 30 2014, Volume 8, No. 3

Risk Categories and Assessment Rate Schedule – The current risk 

categories became effective January 1, 2007. Capital ratios and 

supervisory ratings distinguish one risk category from another. 

Effective April 1, 2011, risk categories for large institutions 

(generally those with at least $10 billion in assets) were eliminated. The following table shows the relationship of risk categories (I, II, III, IV) for small institutions to capital and 

supervisory groups as well as the initial base assessment rates 

(in basis points) for each risk category. Supervisory Group A 

generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite rating of 3; and Supervisory 

Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment 

capital groups, undercapitalized includes institutions that are 

significantly or critically undercapitalized.

Capital Category

Supervisory Group

A B C

1. Well Capitalized I

5–9 bps II

14 bps

III

23 bps 2. Adequately Capitalized II

14 bps

3. Undercapitalized III

23 bps

IV

35 bps

Effective April 1, 2011, the initial base assessment rates are 5 

to 35 basis points. An institution’s total assessment rate may 

be less than or greater than its initial base assessment rate as a 

result of additional risk adjustments.

The base assessment rates for small institutions in Risk 

Category I are based on a combination of financial ratios and 

CAMELS component ratings (the financial ratios method).

As required by Dodd-Frank, the calculation of risk-based 

assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based 

on CAMELS ratings and certain forward-looking 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). In general, a highly complex institution is an institution (other than a credit card bank) with 

more than $500 billion in total assets that is controlled by a 

parent or intermediate parent company with more than $500 

billion in total assets or a processing bank or trust company 

with total fiduciary assets of $500 billion or more. The FDIC 

retains its ability to take additional information into account 

to make a limited adjustment to an institution’s total score 

(the large bank adjustment), which will be used to determine 

an institution’s initial base assessment rate.

Effective April 1, 2011, the three possible adjustments to 

an institution’s initial base assessment rate are as follows: 

(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 5 basis points would have a maximum unsecured debt 

trading liabilities, less revaluation losses on assets held in 

trading accounts.

Other real estate owned – primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that file a Thrift Financial Report (TFR), the 

valuation allowance subtracted also includes allowances for 

other repossessed assets. Also, for TFR filers the components 

of other real estate owned are reported gross of valuation 

allowances. (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.

Recourse – an arrangement in which a bank retains, in form or 

in substance, any credit risk directly or indirectly associated 

with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the 

bank’s claim on the asset. If a bank has no claim on an asset 

it has sold, then the retention of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on 

a consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms.

Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total (consolidated) assets. The basic yardstick of bank 

profitability.

Return on equity – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total equity capital.

Risk-based capital groups – definition:

(Percent)

Total 

Risk-Based 

Capital*

Tier 1

Risk-Based 

Capital*

Tier 1 

Leverage

Tangible

Equity

Well-capitalized ≥10 and ≥6 and ≥5 –

Adequately 

capitalized ≥8 and ≥4 and ≥4 –

Undercapitalized ≥6 and ≥3 and ≥3 –

Significantly 

undercapitalized <6 or <3 or <3 and >2

Critically 

undercapitalized – – – ≤2

* As a percentage of risk-weighted assets.
FDIC Quarterly 31 2014, Volume 8, No. 3

Quarterly Banking Profile

prepaid assessments to the quarterly deposit insurance 

assessments payable March 29, 2013. The FDIC issued 

refunds of any unused prepaid deposit insurance assessments on June 28, 2013.

[Note: Effective January 1, 2014, a small number of “advanced 

approach institutions” began reporting Tier 1 capital based on 

regulatory capital standards approved by the banking agencies 

in July 2013. For all other FDIC-insured institutions, prior 

existing reporting will continue until January 2015 when 

mandatory compliance for all institutions is scheduled to 

begin. http://www.fdic.gov/regulations/capital/. At that time a 

revised assessment rate schedule will be used to reflect the 

changes in the regulatory capital rules. http://www.fdic.gov/

news/news/financial/2014/fil14037.html]

Risk-weighted assets – assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 200 percent. A conversion factor is used to assign 

a balance sheet equivalent amount for selected off-balancesheet accounts.

Securities – excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated as 

“held-to-maturity,” which are reported at amortized cost 

(book value), and securities designated as “available-for-sale,” 

reported at fair (market) value.

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 

adjustment of 2.5 basis points and could not have a total base 

assessment rate lower than 2.5 basis points. (2) Depository 

Institution Debt Adjustment: For institutions that hold longterm 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 

small institutions that are not in Risk Category I and 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. After applying all possible 

adjustments (excluding the Depository Institution Debt 

Adjustment), minimum and maximum total base assessment 

rates for each risk category are as follows:

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

Large and 

Highly 

Complex 

Institutions

Initial base 

assessment rate 5–9 14 23 35 5–35

Unsecured debt 

adjustment -4.5–0 -5–0 -5–0 -5–0 -5–0

Brokered deposit 

adjustment — 0–10 0–10 0–10 0–10

Total Base 

Assessment rate 2.5–9 9–24 18–33 30–45 2.5–45

* 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.

Beginning in 2007, each institution is assigned a risk-based 

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment is generally 

due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are 

effective for assessment purposes as of the examination transmittal date.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special 

assessment as of June 30, 2009. The special assessment was 

levied on each insured depository institution’s assets minus 

its Tier 1 capital as reported in its report of condition as of 

June 30, 2009. The special assessment was collected 

September 30, 2009, at the same time that the risk-based 

assessment for the second quarter of 2009 was collected. 

The special assessment for any institution was capped at 

10 basis points of the institution’s assessment base for the 

second quarter of 2009 risk-based assessment.

Prepaid Deposit Insurance Assessments – In November 2009, 

the FDIC Board of Directors adopted a final rule requiring 

insured depository institutions (except those that are 

exempted) to prepay their quarterly risk-based deposit 

insurance assessments for the fourth quarter of 2009, and 

for all of 2010, 2011, and 2012, on December 30, 2009. 

For regulatory capital purposes, an institution may assign a 

zero-percent risk weight to the amount of its prepaid 

deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment 

program, this program ended with the final application of 
FDIC Quarterly 32 2014, Volume 8, No. 3

Trust assets – market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

equipment, collectibles, and household goods. Such fiduciary 

assets are not included in the assets of the financial 

institution.

Unearned income & contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home 

equity lines, commitments to make loans for construction, 

loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for 

sale, which are accounted for as derivatives on the balance 

sheet.)

Yield on earning assets – total interest, dividend, and fee 

income earned on loans and investments as a percentage of 

average earning assets.

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.