FDIC QUARTERLY A

Quarterly

2018

Volume 12, Number 1

Federal Deposit 

Insurance Corporation

Quarterly Banking Profile:

Fourth Quarter 2017

Highlights:

■ Quarterly Net Income Is 40.9 Percent Lower Than a 

Year Ago Largely Due to One-Time Changes From 

the New Tax Law

■ Net Interest Income Rises 8.5 Percent From Fourth 

Quarter 2016

■ Community Bank Net Income Falls 14.2 Percent From 

a Year Ago Largely Due to One-Time Changes 

From the New Tax Law

■ Deposit Insurance Fund Increases by $2.2 Billion

■ DIF Reserve Ratio Rises 2 Basis Points to 1.30 Percent
FDIC QUARTERLY

The FDIC Quarterly is published by the Division of Insurance and Research of the 

Federal Deposit Insurance Corporation and contains a comprehensive summary of the 

most current financial results for the banking industry. Feature articles appearing in the 

FDIC Quarterly range from timely analysis of economic and banking trends at the national 

and regional level that may affect the risk exposure of FDIC-insured institutions to research 

on issues affecting the banking system and the development of regulatory policy.

Single copy subscriptions of the FDIC Quarterly can be obtained through the FDIC Public 

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should be sent to publicinfo@fdic.gov. Change of address information also should be 

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The FDIC Quarterly is available online by visiting the FDIC website at www.fdic.gov. 

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individual feature articles, subscribe at www.fdic.gov/about/subscriptions/index.html.

Chairman

Martin J. Gruenberg

Director, Division of Insurance and Research

Diane Ellis

Executive Editor

Richard A. Brown

Managing Editors

Alan Deaton

Matthew Green

Patrick Mitchell

Shayna M. Olesiuk

Jonathan Pogach

Philip A. Shively

Kathy Zeidler

Editors

Clayton Boyce

Kathy Zeidler

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993
FDIC QUARTERLY i

2018 FDIC QUARTERLY

Volume 12 • Number 1

The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance Corporation. Some of the information used in the 

preparation of this publication was obtained from publicly available sources that are considered reliable. However, the use of this information does not constitute an endorsement of 

its accuracy by the Federal Deposit Insurance Corporation. Articles may be reprinted or abstracted if the publication and author(s) are credited. Please provide the FDIC’s Division 

of Insurance and Research with a copy of any publications containing reprinted material.

Quarterly Banking Profile: Fourth Quarter 2017

FDIC-insured institutions reported aggregate net income of $25.5 billion in the fourth 

quarter of 2017, down $17.7 billion (40.9 percent) from a year earlier. Higher income taxes, 

reflecting one-time income tax effects enacted from the new tax law, coupled with higher 

noninterest expense and loan-loss provisions, lowered quarterly net income. Excluding 

one-time income tax effects, estimated quarterly net income would have been $42.2 billion, 

down 2.3 percent. See page 1.

Community Bank Performance Community banks—which represent 92 percent of insured institutions—reported net 

income of $4.1 billion in the fourth quarter, down $681 million (14.2 percent) from a year 

ago. Excluding one-time income tax charges, estimated fourth quarter net income would 

have increased by 17 percent from a year earlier. See page 15.

Insurance Fund Indicators The Deposit Insurance Fund (DIF) balance increased by $2.2 billion, to $92.7 billion, 

during the fourth quarter, driven by assessment income, including surcharges on large 

banks. The DIF reserve ratio rose to 1.30 percent at year-end 2017, up from 1.28 percent 

at September 30, 2017, and 1.20 percent at year-end 2016. Estimated insured deposits rose 

0.8 percent in the fourth quarter. See page 23.

2018 FDIC QUARTERLY

QUARTERLY BANKING PROFILE Fourth Quarter 2017

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income Is 40.9 Percent Lower Than a Year Ago Largely Due to One-Time Changes From the New Tax Law

Excluding Changes From the New Tax Law, Estimated Quarterly Net Income Would Have Been $42.2 Billion, 

Down 2.3 Percent From a Year Ago

Net Interest Income Rises 8.5 Percent From Fourth Quarter 2016

Total Loan and Lease Balances Increase $164.1 Billion During the Fourth Quarter

“Problem Bank List” Falls Below 100

Quarterly Net Income Is 

40.9 Percent Lower Than a 

Year Ago Largely Due to 

One-Time Changes From 

the New Tax Law

In the fourth quarter, 5,670 insured institutions reported quarterly net income of 

$25.5 billion, down $17.7 billion (40.9 percent) from a year ago. Higher income taxes, 

reflecting one-time income tax effects enacted from the new tax law, coupled with higher 

noninterest expense and loan-loss provisions, lowered quarterly net income.1 Excluding 

one-time income tax effects, estimated quarterly net income would have been $42.2 billion, 

down 2.3 percent.2

Full-Year 2017 Net Income 

Declines 3.5 Percent Due to 

One-Time Tax Changes

Net income for full-year 2017 totaled $164.8 billion, a decline of $6 billion (3.5 percent) 

compared to 2016. The decline in full-year net income was due to higher income taxes 

(up $21.6 billion, or 28.4 percent), which reflects one-time changes from the new tax law, 

combined with higher noninterest expense (up $19.5 billion, or 4.6 percent) and higher 

loan-loss provisions (up $3 billion, or 6.2 percent). Net operating revenue (the sum of net 

interest income and total noninterest income) increased by $39.5 billion from 2016, as 

net interest income rose by $37.7 billion (8.2 percent) and noninterest income grew by 

$1.8 billion (0.7 percent). The average net interest margin (NIM) increased to 3.25 percent 

from 3.13 percent in 2016. Without the one-time tax charges in the fourth quarter, 

estimated full-year 2017 net income would have been $183.1 billion, an increase of 

7.2 percent from 2016.3

Securities and Other Gains/Losses, Net

Net Operating Income (Actual)

Net Operating Income (Estimated)

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

28.7

40.6

21.4

28.5

35.2

25.3

34.8 34.5

37.5

34.4

40.3

38.2

36.1

39.8

37.3

40.1

38.5

36.5

39.8

43.0

40.4 39.0

43.6 45.6

43.2 43.9

48.1 47.9

25.5

0

10

20

30

40

50

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

16.7

42.2

2010 2011 2012 2013 2014 2015 2016 2017

Chart 1

Annual Net Income

All FDIC-Insured Institutions

Source: FDIC.

$ Billions

133.8 145.2

99.9

4.5

85.5

118.4

141.0

154.3 152.2 163.4 170.8

-10.0

164.8

-50

0

50

100

150

200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

183.1

Securities and Other Gains/Losses, Net

Net Operating Income (Actual)

Net Operating Income (Estimated)

Chart 2

1 See FIL-6-2018, New Tax Law: Accounting and Reporting Implications, https://www.fdic.gov/news/news/financial/2018/

fil18006.html. 2 This estimate of net income applies the average quarterly tax rate between fourth quarter 2011 and third quarter 2017 to income 

before taxes and discontinued operations. 

3 This estimate of net income applies the average annual tax rate between 2011 and 2016 to income before taxes and discontinued 

operations.
2 0 1 8  •  Volume 1 2  • Number 1

2 FDIC QUARTERLY

Net Interest Income Rises 

8.5 Percent From 

Fourth Quarter 2016

Net operating revenue of $192.2 billion, was $10 billion (5.5 percent) higher than fourth 

quarter 2016. Net interest income grew by $10.2 billion (8.5 percent), while noninterest 

income fell by $202.4 million (0.3 percent). More than four out of five banks (86.4 percent) 

reported higher net interest income from a year ago, as interest-bearing assets increased (up 

4.4 percent) and the average NIM increased to 3.31 percent from 3.16 percent a year ago. This 

is the highest quarterly NIM for the industry since fourth quarter 2012. More than two out 

of three banks (70 percent) reported higher net interest margins than a year earlier.

Provisions Increase 

8.9 Percent From a Year Ago

Loan-loss provisions totaled $13.6 billion in the fourth quarter, an increase of $1.1 billion 

(8.9 percent) from a year ago. More than one in three (38.9 percent) institutions reported 

higher loan-loss provisions than in fourth quarter 2016. Fourth quarter loan-loss provisions 

totaled 7.1 percent of net operating revenue, up from 6.8 percent a year ago.

Noninterest Expense 

Increases From a Year Ago

Noninterest expense for the banking industry was $9.4 billion (8.6 percent) higher than 

fourth quarter 2016, led by an increase in “other” noninterest expense (up $6.3 billion, or 

14.1 percent). Other noninterest expense includes, but is not limited to, information 

technology costs, legal fees, consulting services, and audit fees. Salary and employee benefits 

rose by $3.2 billion (6.3 percent) from a year ago. Full-time equivalent employees at FDICinsured institutions rose by 1.1 percent from a year ago, while industry assets increased by 

3.8 percent. Average assets per employee rose to $8.4 million from $8.2 million in fourth 

quarter 2016.

Net Charge-Off Rate 

Increases Slightly

Banks charged off $13.2 billion in uncollectable loans during the quarter, an increase of 

$1 billion (8.6 percent) from a year ago. This marks a ninth consecutive quarter that net 

charge-offs increased. Less than half (45.3 percent) of all banks reported an annual increase 

in their quarterly net charge-offs. The increase in net charge-offs was led by credit card 

balances, which grew by $1.1 billion (15.7 percent). Net charge-offs declined for commercial 

and industrial loans (down $210.3 million, 8.6 percent), home equity loans (down 

$178.1 million, or 68.6 percent), and residential mortgage loans (down $68.3 million, or 

36.4 percent). The average net charge-off rate rose from 0.52 percent in fourth quarter 2016 

to 0.55 percent.

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 3

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

Noncurrent Loan Rate

Quarterly Net Charge-O Rate

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Noncurrent Loan Rate 

Remains Stable

After declining for the past six consecutive quarters, noncurrent balances (90 days or more 

past due or in nonaccrual status) for total loans and leases increased by $1.5 billion 

(1.3 percent) during the fourth quarter. The increase in noncurrent balances was led by 

residential mortgages (up 2.8 billion, or 5.2 percent) and credit cards (up $1.2 billion, or 

11.5 percent), and was partially offset by a decline in noncurrent commercial and industrial 

loans (down $1.7 billion, or 8.5 percent). Despite the overall dollar increase, the average 

noncurrent loan rate remained unchanged at 1.20 percent from the previous quarter.

Loan-Loss Reserves Increase 

From the Previous Quarter

Banks continued to increase their loan-loss reserves (up $236.2 million, or 0.2 percent) 

during the quarter, as loan-loss provisions of $13.6 billion exceeded net charge-offs of 

$13.2 billion. Banks that itemize their reserves (banks with assets greater than $1 billion) 

reported higher reserves for credit card losses (up $1.9 billion, or 5.2 percent) from the 

previous quarter, and lower reserves for residential real estate losses (down $827.2 million, or 

5.4 percent) and commercial and industrial loan losses (down $723.5 million, or 2.2 percent) 

during the quarter. The coverage ratio (loan-loss reserves to noncurrent loan balances) 

declined slightly to 106.3 percent, but has been above 100 percent for the past three quarters.

Equity Capital Rises 

Modestly

Total equity capital increased by $3.6 billion (0.2 percent) in fourth quarter 2017. Declared 

dividends of $30.1 billion exceeded the quarterly net income of $25.5 billion during the 

quarter, reducing retained earnings by $4.6 billion. Accumulated other comprehensive 

income declined by $8.5 billion in the quarter, which was led by a decline in the market value 

of available-for-sale securities. The equity-to-assets ratio declined to 11.22 percent from 

11.31 percent in third quarter 2017, but remained above the year-ago ratio of 11.10 percent. At 

year-end 2017, 99.4 percent of all insured institutions, which account for 99.97 percent of 

total industry assets, met or exceeded the requirements for the highest regulatory capital 

category, as defined for Prompt Corrective Action purposes.

Source: FDIC.

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

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio

All FDIC-Insured Institutions

0

50

100

150

200

250

300

350

400

450

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

20

40

60

80

100

120

140

160

180

 Loan-Loss Reserves ($) 

 Noncurrent Loans ($)

 Noncurrents Adjusted for GNMA Guaranteed Loans ($)

 Coverage Ratio (%) 

 Coverage Adjusted for GNMA Guaranteed Loans (%)

Chart 5

Held-to-Maturity Securities

Available-for-Sale Securities

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-40

-20

0

20

40

60

80

2012 2013 2014 2015 2016 2017

-10.2

Chart 6
2 0 1 8  •  Volume 1 2  • Number 1

4 FDIC QUARTERLY

Total Loan and Lease 

Balances Increase 

$164.1 Billion During 

the Fourth Quarter

Total loan and lease balances increased by $164.1 billion (1.7 percent) from third quarter 

2017, as balances in all major loan categories increased. Credit card balances increased by 

$69.6 billion (8.8 percent) from the previous quarter, commercial and industrial loans grew 

by $24.5 billion (1.2 percent), and residential mortgage loans rose by $21.7 billion 

(1.1 percent). Unused loan commitments were $108.9 billion (1.5 percent) higher than the 

previous quarter, led by higher unused credit card lines (up $57.7 billion, or 1.6 percent). 

Over the past 12 months, loan and lease balances increased by $416.1 billion (4.5 percent), 

exceeding last quarter’s annual growth rate of 3.5 percent. The 12-month increase in loan 

and lease balances was led by commercial and industrial loans (up $78.4 billion, or 

4.1 percent), residential mortgage loans (up $68.7 million, or 3.4 percent), nonfarm 

nonresidential loans (up $67.1 billion, or 5.1 percent), and credit card balances (up 

$65.2 billion, or 8.2 percent). Home equity lines of credit continued with the year-over-year 

decline (down $23 billion, or 5.3 percent). Unused loan commitments increased 4.4 percent 

from a year ago, the largest annual growth rate since third quarter 2016. 

Deposits Grew 1.4 Percent 

From the Previous Quarter

Total deposits increased by $179.8 billion (1.4 percent) in the fourth quarter. Balances in 

domestic interest-bearing accounts rose by $153.7 billion (1.8 percent), and balances in 

noninterest-bearing accounts grew by $7.8 billion (0.2 percent). Domestic deposits in 

accounts larger than $250,000 increased by $159.6 billion (2.5 percent) from third quarter 

2017. Nondeposit liabilities declined by $8.9 billion (0.4 percent), as other liabilities were 

down $29.3 billion (7.3 percent).

‘Problem Bank List’ 

Falls Below 100

The FDIC’s Problem Bank List declined from 104 to 95 at year-end 2017, the lowest number 

of problem banks since first quarter 2008. Total assets of problem banks were down from 

$16 billion in the third quarter to $13.9 billion. During the quarter, merger transactions 

absorbed 64 institutions, two institutions failed, and one new charter was added. For 

full-year 2017, five new charters were added, 230 institutions were absorbed by mergers, and 

eight institutions failed.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6578

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Source: FDIC.

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

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

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

for the quarter absent this change in accounting standards. 

Quarterly Change in Loans ($ Billions) 12-Month Growth Rate (Percent)

-300

-200

-100

0

100

200

300

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

66

189

237

203

61

28

-6

-116-140

-109

221

-107

-7

-126

67

134

-63

102

65

117

-37

70 91

38

178

51 53

185

95

197

99 112

72

-8

164

43

-210

-133

-14

24

74

149 182 161

99

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 7

Source: FDIC.

Number Assets ($ Billions)

Number and Assets of Banks on the ‘Problem Bank List’ 

0

100

200

300

400

500

600

700

800

900

1,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

50

100

150

200

250

300

350

400

450

500

Number of Problem Banks 

$14

95

Problem Bank Assets

Chart 8
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2017 2016 2015 2014 2013 2012 2011

Return on assets (%) 0.97 1.04 1.04 1.01 1.07 1.00 0.88

Return on equity (%) 8.64 9.29 9.29 9.01 9.54 8.90 7.79

Core capital (leverage) ratio (%) 9.62 9.48 9.59 9.44 9.40 9.15 9.07

Noncurrent assets plus other real estate owned to assets (%) 0.72 0.86 0.97 1.20 1.63 2.20 2.61

Net charge-offs to loans (%) 0.50 0.47 0.44 0.49 0.69 1.10 1.55

Asset growth rate (%) 3.79 5.09 2.66 5.59 1.94 4.02 4.30

Net interest margin (%) 3.25 3.13 3.07 3.14 3.26 3.42 3.60

Net operating income growth (%) -3.03 4.62 7.11 -0.73 12.82 17.76 43.60

Number of institutions reporting 5,670 5,913 6,182 6,509 6,812 7,083 7,357

Commercial banks 4,918 5,112 5,338 5,607 5,847 6,072 6,275

Savings institutions 752 801 844 902 965 1,011 1,082

Percentage of unprofitable institutions (%) 5.40 4.45 4.80 6.27 8.16 11.00 16.23

Number of problem institutions 95 123 183 291 467 651 813

Assets of problem institutions (in billions) $14 $28 $47 $87 $153 $233 $319

Number of failed institutions 8 5 8 18 24 51 92

Number of assisted institutions 0 0 0 0 0 0 0

* Excludes insured branches of foreign banks (IBAs).

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

(dollar figures in millions)  4th Quarter

2017

3rd Quarter

2017

4th Quarter

2016

%Change 

16Q4-17Q4

Number of institutions reporting 5,670 5,738 5,913 -4.1

Total employees (full-time equivalent) 2,076,106 2,084,080 2,052,978 1.1

CONDITION DATA

Total assets $17,416,262 $17,242,418 $16,779,598 3.8

Loans secured by real estate 4,773,568 4,730,472 4,603,243 3.7

 1-4 Family residential mortgages 2,063,771 2,042,064 1,995,060 3.4

 Nonfarm nonresidential 1,391,075 1,377,643 1,323,979 5.1

 Construction and development 338,338 330,747 313,019 8.1

 Home equity lines 411,154 417,298 434,129 -5.3

Commercial & industrial loans 2,013,426 1,988,897 1,934,998 4.1

Loans to individuals 1,677,964 1,602,614 1,589,466 5.6

 Credit cards 865,050 795,425 799,842 8.2

Farm loans 80,852 80,882 79,901 1.2

Other loans & leases 1,177,533 1,156,140 1,099,540 7.1

Less: Unearned income 2,291 2,059 2,175 5.3

Total loans & leases 9,721,053 9,556,945 9,304,973 4.5

Less: Reserve for losses 123,740 123,503 121,682 1.7

Net loans and leases 9,597,313 9,433,442 9,183,291 4.5

Securities 3,631,824 3,615,281 3,559,771 2.0

Other real estate owned 8,451 9,099 10,932 -22.7

Goodwill and other intangibles 383,389 378,113 369,229 3.8

All other assets 3,795,286 3,806,483 3,656,374 3.8

Total liabilities and capital 17,416,262 17,242,418 16,779,598 3.8

Deposits 13,399,022 13,219,252 12,894,563 3.9

 Domestic office deposits 12,081,255 11,919,768 11,647,119 3.7

 Foreign office deposits 1,317,767 1,299,484 1,247,444 5.6

Other borrowed funds 1,496,033 1,474,161 1,413,454 5.8

Subordinated debt 68,929 75,110 83,904 -17.8

All other liabilities 493,826 518,383 518,506 -4.8

Total equity capital (includes minority interests) 1,958,451 1,955,512 1,869,171 4.8

 Bank equity capital 1,954,112 1,950,477 1,863,006 4.9

Loans and leases 30-89 days past due 67,595 64,083 65,692 2.9

Noncurrent loans and leases 116,385 114,837 132,013 -11.8

Restructured loans and leases 60,214 61,530 65,503 -8.1

Mortgage-backed securities 2,133,347 2,117,153 2,005,022 6.4

Earning assets 15,760,921 15,586,363 15,103,316 4.4

FHLB Advances 582,533 575,406 563,263 3.4

Unused loan commitments 7,516,809 7,407,905 7,200,727 4.4

Trust assets 20,334,391 19,709,519 17,663,958 15.1

Assets securitized and sold 677,875 699,463 737,059 -8.0

Notional amount of derivatives 173,490,303 190,595,890 166,783,334 4.0

INCOME DATA Full Year 2017 Full Year 2016 %Change

4th Quarter 

2017

4th Quarter 

2016

%Change 

16Q4-17Q4

Total interest income $572,329 $515,794 11.0 $150,638 $133,688 12.7

Total interest expense 73,259 54,389 34.7 21,118 14,354 47.1

Net interest income 499,070 461,405 8.2 129,520 119,334 8.5

Provision for loan and lease losses 51,089 48,096 6.2 13,568 12,462 8.9

Total noninterest income 255,479 253,643 0.7 62,657 62,859 -0.3

Total noninterest expense 442,757 423,219 4.6 117,954 108,599 8.6

Securities gains (losses) 2,129 3,786 -43.8 24 632 -96.2

Applicable income taxes 97,616 76,046 28.4 34,854 18,451 88.9

Extraordinary gains, net* -87 -323 N/M -222 -28 N/M

Total net income (includes minority interests) 165,129 171,150 -3.5 25,602 43,285 -40.9

 Bank net income 164,793 170,810 -3.5 25,532 43,186 -40.9

Net charge-offs 46,783 42,421 10.3 13,161 12,114 8.7

Cash dividends 121,352 102,761 18.1 30,082 28,624 5.1

Retained earnings 43,442 68,049 -36.2 -4,550 14,562 N/M

Net operating income 163,704 168,813 -3.0 25,753 42,870 -39.9

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 8  •  Volume 1 2  • Number 1

6 FDIC QUARTERLY

TABLE III-A. Full Year 2017, All FDIC-Insured Institutions

Asset Concentration Groups*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,670 11 5 1,390 2,943 421 59 272 509 60

Commercial banks 4,918 10 5 1,376 2,632 106 45 245 447 52

Savings institutions 752 1 0 14 311 315 14 27 62 8

Total assets (in billions) $17,416.3 $562.7 $4,197.0 $282.6 $6,025.9 $349.4 $270.9 $46.9 $88.8 $5,592.2

Commercial banks 16,219.7 483.5 4,197.0 277.4 5,546.8 95.4 163.0 42.7 76.7 5,337.3

Savings institutions 1,196.6 79.2 0.0 5.3 479.1 254.0 107.8 4.2 12.1 254.9

Total deposits (in billions) 13,399.0 309.7 3,064.1 234.1 4,733.5 274.5 227.6 38.0 74.7 4,442.7

Commercial banks 12,468.2 251.9 3,064.1 231.3 4,375.1 81.3 137.7 35.1 64.9 4,226.8

Savings institutions 930.8 57.8 0.0 2.9 358.4 193.3 89.9 2.9 9.8 215.8

Bank net income (in millions) 164,793 7,847 25,933 2,902 59,530 3,128 2,677 1,202 813 60,761

Commercial banks 152,185 6,284 25,933 2,790 54,299 1,336 1,906 617 736 58,282

Savings institutions 12,608 1,563 0 112 5,231 1,792 771 585 77 2,479

Performance Ratios (%)

Yield on earning assets 3.73 12.45 2.91 4.24 3.90 3.32 4.02 3.09 3.88 3.31

Cost of funding earning assets 0.48 1.54 0.49 0.52 0.47 0.48 0.46 0.33 0.41 0.37

Net interest margin 3.25 10.92 2.43 3.72 3.42 2.84 3.56 2.75 3.47 2.93

Noninterest income to assets 1.50 2.48 1.82 0.64 1.27 1.31 1.18 6.41 0.90 1.46

Noninterest expense to assets 2.60 5.35 2.42 2.67 2.73 2.52 2.45 5.59 2.88 2.33

Loan and lease loss provision to assets 0.30 3.92 0.19 0.15 0.16 0.01 0.46 0.06 0.09 0.21

Net operating income to assets 0.96 1.53 0.62 1.04 1.02 0.90 1.02 2.57 0.92 1.09

Pretax return on assets 1.54 3.19 1.34 1.30 1.49 1.50 1.76 3.33 1.17 1.59

Return on assets 0.97 1.52 0.62 1.05 1.02 0.93 1.02 2.60 0.93 1.10

Return on equity 8.64 9.85 6.29 9.27 8.57 8.33 10.20 17.37 7.81 9.98

Net charge-offs to loans and leases 0.50 3.95 0.56 0.16 0.21 0.05 0.60 0.22 0.15 0.43

Loan and lease loss provision to 

net charge-offs 109.21 124.63 95.36 134.72 113.64 22.97 106.55 92.06 107.84 95.52

Efficiency ratio 57.94 42.26 60.65 64.64 61.61 62.75 51.69 62.49 69.50 55.73

% of unprofitable institutions 5.40 0.00 0.00 3.02 5.23 10.69 8.47 9.93 6.09 3.33

% of institutions with earnings gains 56.16 27.27 40.00 54.68 57.87 50.36 49.15 54.78 55.99 68.33

Condition Ratios (%)

Earning assets to total assets 90.50 92.21 88.37 93.02 90.93 94.74 97.53 92.31 92.73 90.66

Loss allowance to:

Loans and leases 1.27 4.39 1.36 1.40 1.03 0.75 0.83 1.43 1.26 1.14

Noncurrent loans and leases 106.32 285.81 107.71 146.06 119.63 27.78 170.63 107.79 114.21 73.16

Noncurrent assets plus

other real estate owned to assets 0.72 1.24 0.48 0.76 0.70 1.70 0.36 0.58 0.81 0.82

Equity capital ratio 11.22 15.10 9.84 11.18 11.95 11.22 10.00 15.25 11.94 11.09

Core capital (leverage) ratio 9.62 13.13 8.66 10.89 10.16 10.90 10.12 14.72 11.85 9.19

Common equity tier 1 capital ratio 13.11 12.75 13.32 14.41 12.37 21.81 17.94 32.01 20.32 13.06

Tier 1 risk-based capital ratio 13.19 12.87 13.39 14.43 12.46 21.83 18.14 32.02 20.34 13.13

Total risk-based capital ratio 14.57 14.98 14.75 15.55 13.78 22.74 19.01 33.00 21.46 14.60

Net loans and leases to deposits 71.63 140.73 49.89 80.59 88.51 75.67 84.84 34.48 65.91 62.83

Net loans to total assets 55.11 77.46 36.43 66.76 69.53 59.46 71.29 27.96 55.45 49.91

Domestic deposits to total assets 69.37 54.42 48.24 82.84 78.27 78.29 84.02 81.08 84.13 74.85

Structural Changes

New reporters 5 0 0 0 3 0 0 2 0 0

Institutions absorbed by mergers 230 0 0 33 176 8 0 1 10 2

Failed institutions 8 0 0 1 4 2 0 0 1 0

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2016 5,913 13 5 1,429 3,025 462 65 300 549 65

 2014 6,509 15 3 1,515 3,222 553 52 374 708 67

 2012 7,083 19 5 1,537 3,499 659 51 414 826 73

Total assets (in billions) 2016 $16,779.6 $519.0 $4,052.7 $284.9 $5,628.2 $331.5 $256.0 $51.0 $97.5 $5,558.7

 2014 15,553.7 484.2 3,735.6 273.5 4,878.5 439.6 175.9 61.9 129.1 5,375.5

 2012 14,450.4 600.7 3,808.4 239.8 4,338.9 628.3 101.6 64.9 145.8 4,522.0

Return on assets (%) 2016 1.04 2.28 0.93 1.21 0.97 0.99 0.96 2.84 0.93 1.06

 2014 1.01 3.22 0.72 1.17 0.94 0.96 1.05 2.20 0.86 1.06

 2012 1.00 3.13 0.80 1.27 0.89 0.87 1.46 1.23 0.86 1.00

Net charge-offs to loans & leases (%) 2016 0.47 3.34 0.55 0.15 0.22 0.07 0.56 0.22 0.17 0.41

 2014 0.49 2.81 0.73 0.13 0.24 0.21 0.62 0.34 0.25 0.41

 2012 1.10 3.69 1.41 0.24 0.74 0.82 1.31 0.45 0.45 0.94

Noncurrent assets plus 

OREO to assets (%) 2016 0.86 1.14 0.61 0.77 0.87 1.97 0.70 0.63 0.94 0.96

 2014 1.20 0.88 0.85 0.83 1.17 2.19 1.19 0.73 1.39 1.43

 2012 2.20 1.11 1.39 1.11 2.21 2.70 0.88 1.04 1.67 3.06

Equity capital ratio (%) 2016 11.10 14.85 9.97 11.30 11.81 11.28 10.04 15.21 11.42 10.85

 2014 11.15 15.13 9.45 11.42 11.97 12.07 9.88 14.78 11.81 11.11

 2012 11.17 14.67 8.93 11.14 11.93 11.09 9.57 14.27 11.47 11.85

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

FDIC QUARTERLY 7

TABLE III-A. Full Year 2017, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,670 1,407 3,513 627 114 9 693 668 1,214 1,438 1,235 422

Commercial banks 4,918 1,238 3,061 510 100 9 363 605 1,019 1,389 1,158 384

Savings institutions 752 169 452 117 14 0 330 63 195 49 77 38

Total assets (in billions) $17,416.3 $83.7 $1,154.1 $1,751.7 $5,699.1 $8,727.6 $3,248.0 $3,601.0 $3,918.1 $3,684.1 $1,090.0 $1,875.1

Commercial banks 16,219.7 74.2 983.5 1,413.4 5,021.0 8,727.6 2,812.9 3,497.7 3,806.6 3,642.9 955.9 1,503.7

Savings institutions 1,196.6 9.5 170.7 338.3 678.1 0.0 435.0 103.3 111.5 41.2 134.1 371.5

Total deposits (in billions) 13,399.0 70.0 961.8 1,390.0 4,340.0 6,637.2 2,462.4 2,828.3 2,928.1 2,819.2 889.0 1,472.1

Commercial banks 12,468.2 62.6 827.2 1,133.1 3,808.1 6,637.2 2,131.6 2,746.4 2,851.1 2,788.8 781.0 1,169.4

Savings institutions 930.8 7.4 134.6 257.0 531.9 0.0 330.8 81.9 77.0 30.4 108.0 302.7

Bank net income (in millions) 164,793 686 11,700 17,711 57,416 77,281 26,852 35,154 38,512 28,357 11,684 24,235

Commercial banks 152,185 640 10,151 14,868 49,246 77,281 23,725 34,556 37,288 27,974 10,297 18,343

Savings institutions 12,608 46 1,549 2,842 8,170 0 3,127 597 1,224 383 1,386 5,891

Performance Ratios (%)

Yield on earning assets 3.73 4.18 4.24 4.14 4.21 3.26 3.85 3.85 3.00 3.82 4.10 4.41

Cost of funding earning assets 0.48 0.46 0.50 0.50 0.55 0.42 0.59 0.40 0.40 0.55 0.39 0.49

Net interest margin 3.25 3.72 3.74 3.64 3.66 2.83 3.26 3.44 2.60 3.27 3.71 3.92

Noninterest income to assets 1.50 1.18 1.15 1.24 1.53 1.58 1.34 1.45 1.85 1.25 1.35 1.74

Noninterest expense to assets 2.60 3.46 3.13 2.79 2.69 2.44 2.56 2.58 2.58 2.51 3.00 2.74

Loan and lease loss provision to assets 0.30 0.14 0.13 0.21 0.50 0.21 0.39 0.35 0.13 0.27 0.20 0.53

Net operating income to assets 0.96 0.83 1.03 1.04 1.04 0.89 0.85 1.00 1.00 0.76 1.12 1.34

Pretax return on assets 1.54 1.02 1.38 1.63 1.68 1.47 1.32 1.61 1.47 1.44 1.57 2.17

Return on assets 0.97 0.83 1.04 1.05 1.04 0.90 0.86 1.00 1.00 0.78 1.12 1.36

Return on equity 8.64 6.39 9.22 9.00 8.60 8.53 6.93 8.24 9.61 7.77 9.98 11.45

Net charge-offs to loans and leases 0.50 0.21 0.15 0.22 0.71 0.47 0.58 0.61 0.27 0.51 0.28 0.67

Loan and lease loss provision to 

net charge-offs 109.21 109.45 128.11 131.38 118.08 94.37 120.99 99.50 94.33 102.09 111.06 129.08

Efficiency ratio 57.94 74.94 67.41 59.73 54.48 58.58 59.13 56.29 61.40 58.67 62.23 49.86

% of unprofitable institutions 5.40 10.66 4.04 1.75 2.63 0.00 7.36 9.28 5.68 3.27 4.21 5.92

% of institutions with earnings gains 56.16 53.80 55.96 60.93 64.04 66.67 51.08 53.74 57.08 55.35 59.51 58.53

Condition Ratios (%)

Earning assets to total assets 90.50 92.35 93.04 92.35 91.16 89.34 90.06 89.74 89.48 90.53 91.73 94.02

Loss allowance to:

Loans and leases 1.27 1.39 1.25 1.10 1.38 1.24 1.29 1.29 1.16 1.32 1.11 1.43

Noncurrent loans and leases 106.32 115.44 141.59 141.24 127.36 83.87 120.96 96.48 96.68 86.08 107.05 209.26

Noncurrent assets plus

other real estate owned to assets 0.72 1.01 0.83 0.66 0.70 0.73 0.65 0.83 0.64 0.86 0.81 0.45

Equity capital ratio 11.22 13.01 11.30 11.82 12.13 10.48 12.34 12.06 10.42 9.99 11.49 11.58

Core capital (leverage) ratio 9.62 12.91 11.10 10.72 10.38 8.69 10.31 9.55 9.14 8.92 10.21 10.71

Common equity tier 1 capital ratio 13.11 20.56 15.35 13.85 13.14 12.54 13.29 12.80 12.97 12.43 13.15 14.99

Tier 1 risk-based capital ratio 13.19 20.59 15.39 13.87 13.30 12.57 13.36 12.91 13.01 12.49 13.25 15.14

Total risk-based capital ratio 14.57 21.66 16.48 14.87 14.77 14.03 14.72 14.27 14.22 14.36 14.32 16.22

Net loans and leases to deposits 71.63 70.55 81.31 87.91 78.96 62.03 73.67 73.07 66.04 68.57 79.38 77.71

Net loans to total assets 55.11 58.99 67.76 69.76 60.13 47.17 55.85 57.39 49.35 52.48 64.74 61.01

Domestic deposits to total assets 69.37 83.61 83.33 79.11 72.91 63.11 68.9 75.98 65.31 59.71 81.52 77.88

Structural Changes

New reporters 5 3 1 1 0 0 0 1 0 0 3 1

Institutions absorbed by mergers 230 55 137 35 3 0 34 42 52 42 40 20

Failed institutions 8 3 3 2 0 0 1 0 4 1 1 1

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2016 5,913 1,541 3,637 621 105 9 724 720 1,271 1,485 1,268 445

 2014 6,509 1,871 3,957 574 98 9 807 812 1,406 1,599 1,372 513

 2012 7,083 2,204 4,217 555 99 8 873 904 1,515 1,716 1,490 585

Total assets (in billions) 2016 $16,779.6 $91.5 $1,173.9 $1,761.7 $5,305.7 $8,446.8 $3,096.4 $3,507.3 $3,784.3 $3,633.8 $1,010.7 $1,747.0

 2014 15,553.7 109.7 1,232.1 1,576.4 4,534.2 8,101.3 2,956.4 3,217.9 3,595.8 3,404.0 904.4 1,475.2

 2012 14,450.4 128.1 1,275.0 1,454.7 4,468.7 7,123.9 2,896.1 3,056.1 3,298.1 3,068.7 870.4 1,261.0

Return on assets (%) 2016 1.04 0.89 1.08 1.02 1.07 1.03 0.87 1.02 1.00 1.09 1.02 1.40

 2014 1.01 0.79 1.00 1.09 1.09 0.95 0.83 1.00 0.88 1.07 1.14 1.49

 2012 1.00 0.68 0.80 1.13 1.13 0.94 0.96 0.77 0.90 1.10 1.01 1.72

Net charge-offs to loans & leases (%) 2016 0.47 0.21 0.14 0.25 0.64 0.47 0.52 0.54 0.27 0.53 0.31 0.58

 2014 0.49 0.23 0.23 0.27 0.60 0.54 0.55 0.54 0.36 0.60 0.23 0.47

 2012 1.10 0.43 0.64 0.73 1.30 1.17 1.24 1.19 0.85 1.37 0.56 0.84

Noncurrent assets plus 

OREO to assets (%) 2016 0.86 1.10 0.96 0.84 0.78 0.90 0.70 1.03 0.79 1.00 1.06 0.53

 2014 1.20 1.45 1.38 1.41 0.83 1.32 0.89 1.55 1.11 1.46 1.18 0.65

 2012 2.20 2.10 2.37 2.46 1.40 2.61 1.46 3.23 2.00 2.45 2.05 1.38

Equity capital ratio (%) 2016 11.10 12.70 11.14 11.55 11.87 10.50 12.11 12.05 10.32 9.87 10.92 11.79

 2014 11.15 12.28 11.20 11.90 12.39 10.28 11.81 12.45 9.80 10.20 11.06 12.47

 2012 11.17 12.00 10.90 11.77 12.37 10.32 12.18 12.03 9.10 10.86 10.70 13.24

* See Table V-A (page 11) for explanations.
2 0 1 8  •  Volume 1 2  • Number 1

8 FDIC QUARTERLY

TABLE IV-A. Fourth Quarter 2017, All FDIC-Insured Institutions

Asset Concentration Groups*

FOURTH QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,670 11 5 1,390 2,943 421 59 272 509 60

Commercial banks 4,918 10 5 1,376 2,632 106 45 245 447 52

Savings institutions 752 1 0 14 311 315 14 27 62 8

Total assets (in billions) $17,416.3 $562.7 $4,197.0 $282.6 $6,025.9 $349.4 $270.9 $46.9 $88.8 $5,592.2

Commercial banks 16,219.7 483.5 4,197.0 277.4 5,546.8 95.4 163.0 42.7 76.7 5,337.3

Savings institutions 1,196.6 79.2 0.0 5.3 479.1 254.0 107.8 4.2 12.1 254.9

Total deposits (in billions) 13,399.0 309.7 3,064.1 234.1 4,733.5 274.5 227.6 38.0 74.7 4,442.7

Commercial banks 12,468.2 251.9 3,064.1 231.3 4,375.1 81.3 137.7 35.1 64.9 4,226.8

Savings institutions 930.8 57.8 0.0 2.9 358.4 193.3 89.9 2.9 9.8 215.8

Bank net income (in millions) 25,532 -39 -4,175 335 13,511 563 464 223 175 14,474

Commercial banks 22,809 -407 -4,175 308 12,353 220 400 150 159 13,801

Savings institutions 2,723 368 0 28 1,158 342 64 73 16 673

Performance Ratios (annualized, %)

Yield on earning assets 3.85 12.86 3.01 4.31 4.02 3.48 4.20 3.07 3.91 3.39

Cost of funding earning assets 0.54 1.70 0.55 0.56 0.53 0.56 0.53 0.34 0.43 0.44

Net interest margin 3.31 11.17 2.46 3.75 3.49 2.92 3.67 2.73 3.48 2.95

Noninterest income to assets 1.45 2.51 1.68 0.64 1.24 1.28 1.19 4.79 0.88 1.44

Noninterest expense to assets 2.73 5.65 2.43 3.16 2.80 2.66 2.65 5.29 2.88 2.55

Loan and lease loss provision to assets 0.31 3.99 0.21 0.16 0.15 0.00 0.46 0.07 0.10 0.23

Net operating income to assets 0.60 -0.03 -0.39 0.48 0.91 0.63 0.69 1.87 0.79 1.04

Pretax return on assets 1.40 3.12 1.20 0.81 1.44 1.39 1.65 2.00 1.13 1.34

Return on assets 0.59 -0.03 -0.40 0.48 0.91 0.65 0.69 1.91 0.79 1.04

Return on equity 5.24 -0.19 -4.01 4.21 7.56 5.75 6.89 12.52 6.58 9.35

Net charge-offs to loans and leases 0.55 4.18 0.56 0.24 0.23 0.06 0.62 0.28 0.18 0.51

Loan and lease loss provision to 

net charge-offs 103.09 119.02 102.54 98.48 96.53 12.97 103.00 85.35 97.62 88.81

Efficiency ratio 60.51 43.69 62.47 76.02 62.49 65.41 54.52 72.29 69.88 60.84

% of unprofitable institutions 16.23 36.36 20.00 10.36 17.40 26.37 23.73 19.12 14.54 13.33

% of institutions with earnings gains 46.05 27.27 20.00 54.68 41.56 43.23 32.20 51.47 49.71 50.00

Structural Changes

New reporters 1 0 0 0 1 0 0 0 0 0

Institutions absorbed by mergers 64 0 0 6 54 2 0 0 2 0

Failed institutions 2 0 0 1 0 1 0 0 0 0

PRIOR FOURTH QUARTERS

(The way it was...)

Return on assets (%) 2016 1.03 2.21 1.03 1.08 0.91 1.01 0.80 3.21 0.87 1.04

 2014 0.95 3.08 0.46 1.09 0.98 0.91 0.93 2.48 0.79 1.05

 2012 0.96 3.08 0.70 1.13 0.88 0.85 1.16 1.02 0.79 0.99

Net charge-offs to loans & leases (%) 2016 0.52 3.76 0.61 0.25 0.27 0.06 0.60 0.33 0.23 0.42

 2014 0.48 2.74 0.73 0.20 0.25 0.12 0.64 0.50 0.32 0.38

 2012 0.97 3.36 1.04 0.35 0.72 0.60 1.50 0.65 0.47 0.85

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

FDIC QUARTERLY 9

TABLE IV-A. Fourth Quarter 2017, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FOURTH QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,670 1,407 3,513 627 114 9 693 668 1,214 1,438 1,235 422

Commercial banks 4,918 1,238 3,061 510 100 9 363 605 1,019 1,389 1,158 384

Savings institutions 752 169 452 117 14 0 330 63 195 49 77 38

Total assets (in billions) $17,416.3 $83.7 $1,154.1 $1,751.7 $5,699.1 $8,727.6 $3,248.0 $3,601.0 $3,918.1 $3,684.1 $1,090.0 $1,875.1

Commercial banks 16,219.7 74.2 983.5 1,413.4 5,021.0 8,727.6 2,812.9 3,497.7 3,806.6 3,642.9 955.9 1,503.7

Savings institutions 1,196.6 9.5 170.7 338.3 678.1 0.0 435.0 103.3 111.5 41.2 134.1 371.5

Total deposits (in billions) 13,399.0 70.0 961.8 1,390.0 4,340.0 6,637.2 2,462.4 2,828.3 2,928.1 2,819.2 889.0 1,472.1

Commercial banks 12,468.2 62.6 827.2 1,133.1 3,808.1 6,637.2 2,131.6 2,746.4 2,851.1 2,788.8 781.0 1,169.4

Savings institutions 930.8 7.4 134.6 257.0 531.9 0.0 330.8 81.9 77.0 30.4 108.0 302.7

Bank net income (in millions) 25,532 18 2,467 3,099 10,958 8,989 4,747 6,163 8,146 -813 2,365 4,924

Commercial banks 22,809 122 2,171 2,541 8,985 8,989 4,137 6,042 7,888 -911 2,190 3,461

Savings institutions 2,723 -104 296 559 1,973 0 610 120 258 98 174 1,463

Performance Ratios (annualized, %)

Yield on earning assets 3.85 4.21 4.32 4.21 4.41 3.34 3.99 3.95 3.12 3.88 4.18 4.66

Cost of funding earning assets 0.54 0.48 0.53 0.55 0.63 0.48 0.66 0.47 0.46 0.60 0.43 0.58

Net interest margin 3.31 3.74 3.79 3.66 3.78 2.86 3.33 3.48 2.66 3.28 3.75 4.09

Noninterest income to assets 1.45 -0.01 1.16 1.21 1.54 1.49 1.29 1.44 1.76 1.19 1.28 1.69

Noninterest expense to assets 2.73 3.25 3.20 2.83 2.81 2.58 2.64 2.64 2.66 2.76 3.05 2.93

Loan and lease loss provision to assets 0.31 0.16 0.14 0.21 0.52 0.23 0.42 0.35 0.13 0.29 0.20 0.56

Net operating income to assets 0.60 0.10 0.86 0.72 0.78 0.42 0.60 0.71 0.84 -0.10 0.88 1.07

Pretax return on assets 1.40 0.02 1.35 1.54 1.65 1.22 1.21 1.55 1.34 1.13 1.47 2.04

Return on assets 0.59 0.09 0.86 0.72 0.78 0.41 0.59 0.69 0.83 -0.09 0.88 1.07

Return on equity 5.24 0.66 7.57 6.03 6.40 3.92 4.77 5.68 7.99 -0.88 7.65 9.14

Net charge-offs to loans and leases 0.55 0.28 0.22 0.28 0.76 0.51 0.64 0.69 0.26 0.56 0.32 0.74

Loan and lease loss provision to 

net charge-offs 103.09 95.84 92.68 105.23 111.26 93.61 116.11 87.68 100.89 97.01 94.22 122.88

Efficiency ratio 60.51 94.26 68.08 60.68 55.43 63.08 60.80 57.20 63.82 64.89 63.85 51.89

% of unprofitable institutions 16.23 21.82 14.32 14.19 16.67 22.22 28.28 23.80 14.42 11.40 12.39 17.30

% of institutions with earnings gains 46.05 52.59 45.72 34.77 38.60 33.33 30.45 39.22 46.95 52.43 52.55 39.10

Structural Changes

New reporters 1 0 1 0 0 0 0 0 0 0 1 0

Institutions absorbed by mergers 64 10 41 11 2 0 12 12 8 9 11 12

Failed institutions 2 1 1 0 0 0 0 0 1 1 0 0

PRIOR FOURTH QUARTERS

(The way it was...)

Return on assets (%) 2016 1.03 0.69 1.05 0.86 1.05 1.06 0.87 0.99 1.07 1.09 0.79 1.33

 2014 0.95 0.67 1.00 1.08 1.11 0.82 0.79 1.01 0.84 0.86 1.11 1.46

 2012 0.96 0.50 0.70 1.00 1.18 0.87 0.92 0.82 0.88 1.01 0.90 1.55

Net charge-offs to loans & leases (%) 2016 0.52 0.36 0.23 0.35 0.71 0.49 0.61 0.58 0.30 0.59 0.33 0.67

 2014 0.48 0.29 0.32 0.25 0.58 0.52 0.51 0.50 0.38 0.61 0.28 0.44

 2012 0.97 0.54 0.74 0.72 1.15 0.97 1.09 1.17 0.65 1.17 0.61 0.71

* See Table V-A (page 11) for explanations.
2 0 1 8  •  Volume 1 2  • Number 1

10 FDIC QUARTERLY

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

Asset Concentration Groups*

December 31, 2017 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.71 0.47 0.97 0.65 0.47 1.00 0.45 1.38 1.21 1.08

Construction and development 0.35 0.00 0.51 0.60 0.30 0.42 0.63 1.03 0.82 0.42

Nonfarm nonresidential 0.25 0.00 0.35 0.56 0.22 0.25 0.20 0.92 0.77 0.29

Multifamily residential real estate 0.12 0.00 0.11 0.16 0.10 0.21 0.04 2.29 0.95 0.24

Home equity loans 0.74 19.74 1.23 0.35 0.53 0.52 0.41 0.72 0.65 0.88

Other 1-4 family residential 1.22 0.45 1.36 1.14 0.93 1.18 0.49 1.80 1.57 1.57

Commercial and industrial loans 0.28 0.98 0.27 0.74 0.29 0.48 0.34 0.84 0.98 0.23

Loans to individuals 1.48 1.56 1.08 1.36 1.39 1.18 0.83 1.70 2.07 1.85

Credit card loans 1.33 1.56 1.09 1.14 0.95 0.87 0.75 0.77 2.29 1.24

Other loans to individuals 1.64 1.55 1.06 1.38 1.44 1.21 0.85 1.76 2.06 2.24

All other loans and leases (including farm) 0.25 0.59 0.28 0.53 0.24 0.29 0.05 0.41 0.58 0.20

Total loans and leases 0.70 1.53 0.68 0.66 0.48 0.95 0.64 1.30 1.23 0.87

Percent of Loans Noncurrent**

All real estate loans 1.66 0.66 2.33 0.94 0.91 2.98 0.50 1.51 1.14 2.95

Construction and development 0.52 0.00 0.24 0.65 0.53 0.53 1.20 2.48 0.96 0.48

Nonfarm nonresidential 0.61 0.00 0.58 0.97 0.59 0.89 0.54 1.31 1.42 0.62

Multifamily residential real estate 0.15 0.00 0.08 0.26 0.15 0.51 0.23 0.46 0.49 0.16

Home equity loans 2.43 2.13 4.25 0.36 1.24 1.30 1.72 0.49 0.51 3.63

Other 1-4 family residential 2.75 0.70 3.19 0.82 1.56 3.54 0.38 1.58 1.16 4.17

Commercial and industrial loans 0.90 0.91 1.03 1.28 0.96 0.45 0.35 1.27 1.04 0.75

Loans to individuals 0.97 1.56 0.89 0.49 0.76 0.50 0.55 0.56 1.20 0.74

Credit card loans 1.37 1.61 1.15 0.36 0.88 0.76 1.27 0.34 1.06 1.20

Other loans to individuals 0.54 0.58 0.35 0.50 0.74 0.47 0.37 0.57 1.20 0.44

All other loans and leases (including farm) 0.20 0.46 0.11 0.91 0.29 0.17 0.01 0.60 0.53 0.15

Total loans and leases 1.20 1.53 1.27 0.96 0.86 2.71 0.49 1.33 1.10 1.56

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.03 0.05 0.03 0.05 0.04 0.00 0.01 0.09 0.05 0.02

Construction and development -0.02 0.00 0.00 -0.01 -0.02 0.01 -0.13 0.23 0.03 -0.05

Nonfarm nonresidential 0.04 0.00 0.01 0.07 0.04 0.07 0.07 0.09 0.05 0.01

Multifamily residential real estate -0.01 0.00 -0.01 0.01 -0.01 0.03 0.00 0.15 0.04 -0.02

Home equity loans 0.14 0.63 0.20 0.02 0.11 -0.08 0.11 0.13 0.06 0.18

Other 1-4 family residential 0.02 0.05 0.02 0.07 0.04 0.00 0.00 0.06 0.06 0.00

Commercial and industrial loans 0.38 2.77 0.26 0.49 0.39 0.40 0.39 0.37 0.41 0.35

Loans to individuals 2.26 4.00 2.65 0.53 0.99 1.01 1.00 0.60 0.58 1.79

Credit card loans 3.61 4.10 3.30 1.80 2.90 2.26 2.80 0.48 1.35 3.16

Other loans to individuals 0.91 2.04 1.36 0.41 0.75 0.89 0.56 0.60 0.56 0.96

All other loans and leases (including farm) 0.16 1.04 0.10 0.25 0.19 0.27 0.03 0.91 0.26 0.16

Total loans and leases 0.50 3.95 0.56 0.16 0.21 0.05 0.60 0.22 0.15 0.43

Loans Outstanding (in billions)

All real estate loans $4,773.6 $0.4 $573.1 $118.7 $2,606.0 $188.3 $60.0 $9.5 $37.9 $1,179.6

Construction and development 338.3 0.0 16.6 7.0 250.0 6.1 0.3 0.8 2.2 55.2

Nonfarm nonresidential 1,391.1 0.0 50.1 32.3 1,014.3 17.3 4.1 3.3 8.8 261.0

Multifamily residential real estate 403.9 0.0 76.3 3.8 272.9 4.7 0.9 0.3 1.1 44.0

Home equity loans 411.2 0.0 54.2 2.4 200.3 11.0 4.6 0.3 1.5 136.9

Other 1-4 family residential 2,063.8 0.4 326.3 28.7 823.3 148.2 50.1 4.4 20.9 661.5

Commercial and industrial loans 2,013.4 15.9 330.8 21.9 967.0 5.7 9.6 1.7 4.2 656.5

Loans to individuals 1,678.0 438.7 279.3 6.5 333.5 4.0 112.2 1.4 4.5 497.9

Credit card loans 865.1 418.9 190.4 0.5 38.3 0.4 22.1 0.1 0.2 194.2

Other loans to individuals 812.9 19.8 88.9 5.9 295.2 3.7 90.1 1.3 4.3 303.7

All other loans and leases (including farm) 1,258.4 0.8 367.3 44.3 328.1 11.3 13.1 0.7 3.3 489.6

Total loans and leases (plus unearned income) 9,723.3 455.8 1,550.5 191.4 4,234.6 209.4 194.8 13.3 49.9 2,823.6

Memo: Other Real Estate Owned (in millions)

All other real estate owned 8,450.5 0.2 523.6 317.8 5,424.9 238.9 29.0 96.7 167.4 1,652.0

Construction and development 2,470.7 0.0 18.2 77.1 2,012.2 54.6 4.3 51.0 38.5 214.7

Nonfarm nonresidential 2,361.2 0.0 70.0 102.9 1,751.3 28.1 5.6 24.8 59.5 319.0

Multifamily residential real estate 134.2 0.0 0.0 14.5 102.7 3.6 0.0 1.6 0.7 11.0

1-4 family residential 2,919.0 0.2 302.3 58.8 1,452.9 110.6 19.1 17.6 63.6 894.0

Farmland 141.3 0.0 0.0 64.6 64.9 2.4 0.0 1.5 5.2 2.8

GNMA properties 384.3 0.0 95.0 0.0 41.0 39.7 0.0 0.2 0.0 208.4

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

December 31, 2017 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.71 1.17 0.60 0.37 0.56 1.07 0.51 0.86 0.77 1.02 0.64 0.31

Construction and development 0.35 0.86 0.43 0.31 0.29 0.42 0.41 0.28 0.33 0.40 0.35 0.28

Nonfarm nonresidential 0.25 0.89 0.36 0.22 0.20 0.28 0.27 0.25 0.28 0.25 0.32 0.15

Multifamily residential real estate 0.12 0.64 0.23 0.10 0.10 0.13 0.14 0.08 0.12 0.17 0.18 0.08

Home equity loans 0.74 0.62 0.51 0.41 0.57 0.97 0.56 0.81 0.86 0.88 0.50 0.36

Other 1-4 family residential 1.22 1.68 0.99 0.67 1.02 1.56 0.88 1.43 1.18 1.67 1.33 0.51

Commercial and industrial loans 0.28 1.18 0.58 0.41 0.25 0.24 0.24 0.21 0.27 0.30 0.45 0.35

Loans to individuals 1.48 2.03 1.61 1.34 1.37 1.60 1.21 2.07 1.06 1.43 1.03 1.47

Credit card loans 1.33 5.31 2.24 2.83 1.44 1.15 1.16 1.56 1.15 1.16 0.74 1.72

Other loans to individuals 1.64 1.96 1.57 1.07 1.28 2.05 1.29 2.59 1.02 1.87 1.17 1.24

All other loans and leases (including farm) 0.25 0.50 0.46 0.28 0.24 0.24 0.13 0.17 0.36 0.23 0.47 0.36

Total loans and leases 0.70 1.14 0.63 0.43 0.65 0.82 0.57 0.86 0.63 0.79 0.63 0.60

Percent of Loans Noncurrent** 

All real estate loans 1.66 1.21 0.87 0.73 1.31 2.80 1.31 2.08 1.84 2.52 1.01 0.50

Construction and development 0.52 0.96 1.05 0.54 0.28 0.45 0.57 0.82 0.47 0.36 0.42 0.41

Nonfarm nonresidential 0.61 1.37 0.77 0.58 0.57 0.58 0.72 0.64 0.68 0.58 0.57 0.41

Multifamily residential real estate 0.15 0.84 0.45 0.14 0.10 0.12 0.14 0.12 0.16 0.26 0.22 0.06

Home equity loans 2.43 0.42 0.59 0.61 1.29 3.91 2.28 3.07 2.35 2.90 1.08 0.63

Other 1-4 family residential 2.75 1.29 1.00 1.15 2.34 3.94 2.16 3.15 2.77 4.18 2.02 0.63

Commercial and industrial loans 0.90 1.58 1.08 1.13 0.98 0.77 0.91 0.78 0.78 0.99 1.49 0.86

Loans to individuals 0.97 0.84 0.70 0.82 1.14 0.81 1.02 1.16 0.57 0.93 0.84 1.02

Credit card loans 1.37 2.94 1.63 2.88 1.51 1.15 1.25 1.49 1.18 1.20 1.25 1.76

Other loans to individuals 0.54 0.80 0.64 0.44 0.62 0.47 0.64 0.81 0.33 0.49 0.65 0.32

All other loans and leases (including farm) 0.20 1.01 0.70 0.38 0.25 0.12 0.20 0.13 0.15 0.24 0.32 0.33

Total loans and leases 1.20 1.20 0.88 0.78 1.09 1.47 1.07 1.34 1.20 1.53 1.04 0.68

Percent of Loans Charged-Off (net, YTD) 

All real estate loans 0.03 0.07 0.05 0.04 0.04 0.02 0.06 0.05 0.03 0.01 0.03 -0.01

Construction and development -0.02 0.04 0.04 0.01 -0.04 -0.06 0.04 0.02 -0.02 -0.10 0.00 -0.12

Nonfarm nonresidential 0.04 0.09 0.05 0.04 0.05 0.00 0.05 0.05 0.05 0.01 0.04 0.00

Multifamily residential real estate -0.01 0.04 -0.01 0.01 -0.01 -0.01 0.00 -0.02 -0.01 -0.01 -0.01 0.00

Home equity loans 0.14 0.04 0.05 0.06 0.12 0.18 0.13 0.23 0.13 0.13 0.04 0.00

Other 1-4 family residential 0.02 0.07 0.05 0.05 0.04 0.00 0.07 0.01 0.02 0.01 0.03 0.00

Commercial and industrial loans 0.38 0.53 0.43 0.47 0.43 0.31 0.36 0.48 0.25 0.29 0.52 0.50

Loans to individuals 2.26 0.99 1.11 1.75 2.53 2.08 2.36 2.36 1.58 2.52 1.50 2.44

Credit card loans 3.61 10.35 6.18 6.19 3.87 3.19 3.20 3.87 3.40 3.38 2.70 4.61

Other loans to individuals 0.91 0.68 0.77 0.78 0.76 1.07 0.94 0.85 0.89 1.27 0.94 0.63

All other loans and leases (including farm) 0.16 0.27 0.27 0.31 0.16 0.13 0.21 0.15 0.12 0.15 0.27 0.10

Total loans and leases 0.50 0.21 0.15 0.22 0.71 0.47 0.58 0.61 0.27 0.51 0.28 0.67

Loans Outstanding (in billions) 

All real estate loans $4,773.6 $34.2 $612.5 $907.3 $1,544.7 $1,674.7 $971.1 $917.5 $994.3 $874.5 $456.8 $559.3

Construction and development 338.3 2.0 57.2 86.5 121.3 71.3 62.1 60.4 57.3 52.4 70.0 36.1

Nonfarm nonresidential 1,391.1 8.5 232.3 372.6 489.9 287.7 317.2 273.3 214.4 193.8 189.5 202.9

Multifamily residential real estate 403.9 0.9 33.7 100.4 149.9 119.1 144.9 41.2 107.5 33.4 20.0 56.9

Home equity loans 411.2 0.8 24.2 45.9 142.8 197.5 80.9 104.0 102.0 74.4 21.2 28.7

Other 1-4 family residential 2,063.8 15.5 214.4 279.1 624.2 930.5 361.6 424.3 490.0 427.0 138.3 222.6

Commercial and industrial loans 2,013.4 5.8 98.4 188.4 744.5 976.3 305.6 493.5 437.2 411.1 139.1 226.9

Loans to individuals 1,678.0 3.3 32.1 73.2 818.8 750.5 366.8 413.5 226.9 324.8 65.0 281.0

Credit card loans 865.1 0.1 2.0 11.3 479.6 372.1 230.4 210.4 65.8 200.3 20.9 137.2

Other loans to individuals 812.9 3.2 30.2 61.9 339.2 378.4 136.3 203.1 161.1 124.5 44.2 143.7

All other loans and leases (including farm) 1,258.4 6.8 49.2 67.1 367.9 767.5 194.7 269.4 298.1 349.4 53.0 93.9

Total loans and leases 

(plus unearned income) 9,723.3 50.1 792.3 1,236.1 3,475.9 4,169.0 1,838.2 2,094.0 1,956.5 1,959.7 713.9 1,161.0

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 8,450.5 237.2 2,561.6 1,865.3 1,925.4 1,861.1 1,585.2 1,859.9 1,601.3 1,508.9 1,386.8 508.5

Construction and development 2,470.7 60.7 1,122.6 708.9 347.0 231.5 256.3 651.4 307.3 508.8 566.7 180.2

Nonfarm nonresidential 2,361.2 71.0 843.7 626.1 511.5 309.0 441.0 479.1 452.6 358.3 486.3 143.8

Multifamily residential real estate 134.2 8.1 58.8 33.7 9.2 24.3 32.9 27.4 21.6 30.0 13.5 8.8

1-4 family residential 2,919.0 72.2 458.3 439.4 930.5 1,018.5 764.9 647.1 676.8 403.8 277.3 149.0

Farmland 141.3 25.1 77.8 32.2 4.9 1.4 9.1 16.8 21.0 47.8 35.7 10.9

GNMA properties 384.3 0.2 0.3 25.1 122.3 236.4 81.0 38.0 121.9 120.2 7.4 15.8

* Regions:

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

U.S. Virgin Islands

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
2 0 1 8  •  Volume 1 2  • Number 1

12 FDIC QUARTERLY

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

4th 

Quarter 

2017

3rd 

Quarter 

2017

2nd

Quarter 

2017

1st

Quarter 

2017

4th 

Quarter 

2016

% 

Change 

16Q4

17Q4

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,368 1,395 1,422 1,417 1,427 -4.1 43 786 423 107 9

Total assets of institutions reporting derivatives $15,816,310 $15,658,866 $15,451,566 $15,361,637 $15,183,959 4.2 $3,249 $345,233 $1,339,145 $5,401,052 $8,727,631

Total deposits of institutions reporting derivatives 12,133,300 11,933,615 11,789,324 11,768,346 11,589,525 4.7 2,692 284,905 1,062,261 4,146,250 6,637,193

Total derivatives 173,490,303 190,595,890 187,860,427 180,491,094 166,783,334 4.0 189 18,401 132,094 49,913,185 123,426,433

Derivative Contracts by Underlying Risk Exposure 

Interest rate 130,429,413 141,264,920 139,826,426 132,697,581 124,479,973 4.8 184 18,311 126,948 43,674,737 86,609,233

Foreign exchange* 34,422,180 39,707,400 38,856,459 38,313,393 33,277,647 3.4 0 3 3,714 5,723,727 28,694,735

Equity 3,079,607 3,055,705 2,908,473 2,826,463 2,475,169 24.4 0 0 172 162,982 2,916,453

Commodity & other (excluding credit derivatives) 1,372,891 1,477,532 1,334,384 1,349,981 1,257,180 9.2 0 0 18 82,168 1,290,704

Credit 4,186,122 5,090,240 4,934,591 5,303,594 5,293,365 -20.9 0 1 1,242 269,571 3,915,308

Total 173,483,578 190,587,336 187,851,324 180,483,202 166,783,334 4.0 29 11,895 132,036 49,913,185 123,426,433

Derivative Contracts by Transaction Type 

Swaps 94,523,862 101,820,942 103,004,241 99,182,539 96,383,754 -1.9 19 6,572 85,682 25,697,866 68,733,723

Futures & forwards 34,407,208 40,118,624 39,841,404 39,858,005 34,192,708 0.6 6 2,855 27,489 7,855,573 26,521,285

Purchased options 19,163,389 20,398,592 19,127,368 16,939,463 14,791,782 29.6 0 249 7,344 7,735,299 11,420,497

Written options 19,683,605 20,908,669 18,608,635 17,046,726 14,581,494 35.0 4 2,217 10,048 8,229,492 11,441,843

Total 167,778,064 183,246,827 180,581,649 173,026,733 159,949,739 4.9 29 11,894 130,563 49,518,230 118,117,349

Fair Value of Derivative Contracts 

Interest rate contracts 49,030 52,123 68,960 65,746 62,629 -21.7 0 78 274 10,747 37,931

Foreign exchange contracts 10,372 13,938 -430 1,613 10,779 -3.8 0 0 -22 2,541 7,853

Equity contracts -7,514 -5,742 -4,898 -4,921 -2,181 N/M 0 0 1 235 -7,750

Commodity & other (excluding credit derivatives) -829 -1,390 -1,300 118 622 N/M 0 0 0 6 -835

Credit derivatives as guarantor** 33,170 34,840 31,164 24,958 16,617 99.6 0 -1 -2 1,750 31,422

Credit derivatives as beneficiary** -34,547 -37,666 -31,788 -24,932 -15,028 N/M 0 0 -31 -1,882 -32,633

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 72,590,564 72,157,754 65,971,632 61,926,348 55,052,886 31.9 27 4,242 29,648 20,142,459 52,414,188

 1-5 years 36,154,531 43,431,393 48,374,437 46,450,818 43,262,490 -16.4 28 2,221 33,797 8,162,399 27,956,086

 > 5 years 23,565,841 27,041,460 29,634,366 29,973,243 29,761,959 -20.8 16 6,308 49,833 7,052,297 16,457,388

Foreign exchange and gold contracts < 1 year 24,379,652 28,416,443 27,411,021 27,320,407 23,910,532 2.0 0 3 2,192 4,013,345 20,364,112

 1-5 years 4,805,216 4,987,149 4,813,394 4,772,294 4,453,265 7.9 0 0 888 813,236 3,991,092

 > 5 years 2,525,329 2,543,811 2,496,193 2,429,269 2,420,119 4.3 0 0 52 645,816 1,879,460

Equity contracts < 1 year 2,295,686 2,159,633 2,236,472 2,197,689 1,842,304 24.6 0 0 16 47,595 2,248,075

 1-5 years 732,909 780,834 720,365 759,782 677,136 8.2 0 0 64 41,374 691,471

 > 5 years 113,150 119,191 126,774 84,970 122,956 -8.0 0 0 0 7,050 106,101

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 2,172,996 2,542,161 2,544,432 2,722,501 2,681,842 -19.0 0 4 24 63,016 2,109,952

 1-5 years 2,814,096 3,173,395 3,069,752 3,054,143 3,198,687 -12.0 0 0 269 166,043 2,647,784

 > 5 years 312,753 524,420 311,157 487,184 339,228 -7.8 0 26 373 32,271 280,083

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 23.3 24.2 24.6 24.1 29.2 0.0 0.4 0.6 15.0 34.6

Total potential future exposure to tier 1 capital (%) 38.6 45.1 46.9 48.1 44.0 0.1 0.3 0.8 18.9 61.5

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 61.9 69.4 71.5 72.3 73.2 0.1 0.7 1.4 33.9 96.1

Credit losses on derivatives  11.0 1.0 10.0 1.0 30.0 -63.3 0.0 0.0 0.0 2.0 10

HELD FOR TRADING 

Number of institutions reporting derivatives 201 200 205 201 260 -22.7 2 37 93 61 8

Total assets of institutions reporting derivatives 12,486,978 12,403,492 12,228,056 12,124,176 12,093,915 3.3 168 17,334 330,465 3,699,674 8,439,337

Total deposits of institutions reporting derivatives 9,558,217 9,421,994 9,306,454 9,265,757 9,222,603 3.6 151 14,392 260,428 2,892,473 6,390,772

Derivative Contracts by Underlying Risk Exposure 

Interest rate 128,194,060 138,893,663 137,316,308 130,188,927 121,957,324 5.1 3 674 38,132 43,156,240 84,999,011

Foreign exchange 32,402,444 36,960,571 36,002,239 35,648,745 31,228,297 3.8 0 0 2,545 5,544,043 26,855,856

Equity 3,063,576 3,040,023 2,893,124 2,810,971 2,459,958 24.5 0 0 0 151,100 2,912,476

Commodity & other 1,343,837 1,450,053 1,306,894 1,321,931 1,255,198 7.1 0 0 7 54,290 1,289,540

Total 165,003,917 180,344,309 177,518,566 169,970,575 156,900,778 5.2 3 674 40,683 48,905,673 116,056,884

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  2,237 2,917 4,521 3,866 -1,547 N/M 0 0 7 619 1,611

Foreign exchange** 1,795 1,540 681 1,684 5,941 -69.8 0 0 3 213 1,580

Equity** 989 1,183 1,122 922 680 45.4 0 0 9 91 889

Commodity & other (including credit derivatives)** 13 754 314 653 928 -98.6 0 0 1 -107 119

Total trading revenues** 5,035 6,394 6,637 7,126 6,003 -16.1 0 0 20 816 4,199

Share of Revenue 

Trading revenues to gross revenues (%)** 3.6 4.6 4.8 5.4 4.6 0.0 0.0 0.5 2.0 4.4

Trading revenues to net operating revenues (%)** 30.7 19.9 20.5 24.2 20.0 0.0 0.0 4.4 11.8 46.8

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 784 799 820 830 1,298 -39.6 6 278 388 103 9

Total assets of institutions reporting derivatives 15,371,332 15,222,623 15,021,569 14,906,761 14,886,971 3.3 451 137,421 1,251,623 5,254,206 8,727,631

Total deposits of institutions reporting derivatives 11,775,352 11,580,060 11,438,123 11,394,184 11,348,675 3.8 376 113,690 992,732 4,031,361 6,637,193

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,228,718 2,362,796 2,501,109 2,500,845 2,522,649 -11.7 26 11,216 88,758 518,497 1,610,222

Foreign exchange 500,344 496,561 519,135 511,772 509,119 -1.7 0 3 939 54,299 445,103

Equity 16,031 15,682 15,349 15,492 15,211 5.4 0 0 172 11,882 3,977

Commodity & other 29,054 27,479 27,490 28,049 1,982 1,365.9 0 0 12 27,879 1,164

Total notional amount 2,774,147 2,902,518 3,063,083 3,056,158 3,048,961 -9.0 26 11,220 89,879 612,557 2,060,465

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

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

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

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

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

total assets, but is not applicable to banks filing the FFIEC 051 form.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

4th 

Quarter 

2017

3rd 

Quarter

2017

2nd 

Quarter

2017

1st 

Quarter

2017

4th 

Quarter

2016

% 

Change 

16Q4-

17Q4

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 67 66 68 67 75 -10.7 0 8 20 32 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $590,211 $606,755 $620,524 $634,480 $643,700 -8.3 $0 $1,899 $14,132 $88,737 $485,444

Home equity loans 20 21 22 24 25 -20.0 0 0 0 20 0

Credit card receivables 4,553 16,114 17,306 16,406 12,879 -64.6 0 0 0 4,521 32

Auto loans 9,770 10,494 11,566 12,158 11,543 -15.4 0 0 1,516 8,255 0

Other consumer loans 3,052 3,610 3,778 3,955 4,576 -33.3 0 0 0 2,003 1,049

Commercial and industrial loans 380 316 309 312 276 37.7 0 0 0 0 380

All other loans, leases, and other assets 60,869 55,105 54,266 56,669 64,060 -5.0 0 10 9,294 1,539 50,026

Total securitized and sold 668,855 692,414 707,771 724,004 737,059 -9.3 0 1,909 24,942 105,075 536,930

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,716 1,718 1,750 1,906 2,056 -16.5 0 2 24 1,199 491

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

Credit card receivables 353 1,405 1,508 1,443 1,162 -69.6 0 0 0 353 0

Auto loans 147 161 183 125 428 -65.7 0 0 13 134 0

Other consumer loans 86 87 96 100 97 -11.3 0 0 0 0 86

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

All other loans, leases, and other assets 1,131 908 874 875 1,142 -1.0 0 0 142 0 989

Total credit exposure 3,431 4,279 4,410 4,448 4,884 -29.8 0 2 178 1,686 1,566

Total unused liquidity commitments provided to institution’s own 

securitizations 215 246 172 142 175 22.9 0 0 0 23 192

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

1-4 family residential loans 4.7 4.3 3.4 3.0 4.1 0.0 1.9 3.8 4.4 4.7

Home equity loans 9.7 5.9 8.2 5.6 6.9 0.0 0.0 0.0 9.7 0

Credit card receivables 0.3 0.4 0.4 0.4 0.4 0.0 0.0 0.0 0.3 0

Auto loans 2.1 1.6 1.4 1.2 1.7 0.0 0.0 4.6 1.6 0

Other consumer loans 4.7 4.2 4.1 4.0 4.6 0.0 0.0 0.0 2.5 8.9

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

All other loans, leases, and other assets 0.5 0.7 1.3 0.9 0.7 0.0 0.0 0.3 0.0 0.5

Total loans, leases, and other assets 4.2 3.9 3.1 2.7 3.7 0.0 1.9 2.6 3.9 4.4

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

1-4 family residential loans 1.6 1.3 1.3 1.4 1.4 0.0 0.7 1.3 3.0 1.3

Home equity loans 45.7 47.1 47.4 47.8 47.1 0.0 0.0 0.0 45.7 0

Credit card receivables 0.2 0.3 0.3 0.3 0.3 0.0 0.0 0.0 0.2 0

Auto loans 0.4 0.3 0.3 0.3 0.3 0.0 0.0 0.6 0.3 0

Other consumer loans 4.6 4.2 4.0 4.1 4.2 0.0 0.0 0.0 1.1 11.2

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

All other loans, leases, and other assets 1.2 1.2 1.4 1.6 1.3 0.0 0.0 0.2 0.0 1.4

Total loans, leases, and other assets 1.5 1.2 1.3 1.4 1.4 0.0 0.7 0.8 2.6 1.3

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans 0.2 0.2 0.1 0.1 0.3 0.0 0.0 0.0 0.0 0.3

Home equity loans 11.7 8.7 5.9 2.6 6.9 0.0 0.0 0.0 11.7 0

Credit card receivables 1.2 1.2 0.8 0.4 4.2 0.0 0.0 0.0 1.2 6.3

Auto loans 1.2 0.8 0.5 0.2 0.7 0.0 0.0 2.9 0.9 0

Other consumer loans 1.5 1.0 0.6 0.4 1.0 0.0 0.0 0.0 0.8 2.9

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

All other loans, leases, and other assets 1.7 1.3 0.7 0.5 0.4 0.0 0.0 0.0 0.0 2.1

Total loans, leases, and other assets 0.4 0.3 0.2 0.1 0.4 0.0 0.0 0.2 0.1 0.4

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

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

Credit card receivables 2,460 8,171 7,260 8,080 13,335 -81.6 0 0 0 2,460 0

Commercial and industrial loans 463 401 334 365 327 41.6 0 0 0 0 463

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

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 522 524 548 579 1,066 -51.0 19 252 194 49 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 180,743 26,404 26,211 25,919 38,320 371.7 193 161,081 10,155 5,332 3,982

Home equity, credit card receivables, auto, and other consumer loans 504 523 543 564 580 -13.1 0 1 28 19 456

Commercial and industrial loans 154 190 188 230 364 -57.7 0 13 36 74 32

All other loans, leases, and other assets 101,529 97,455 95,098 93,140 89,265 13.7 0 19 129 33,041 68,341

Total sold and not securitized 282,930 124,572 122,040 119,853 128,528 120.1 193 161,113 10,348 38,465 72,810

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 162,216 7,895 7,932 7,655 10,885 1,390.3 11 155,597 3,065 2,153 1,390

Home equity, credit card receivables, auto, and other consumer loans 152 151 152 153 147 3.4 0 1 28 3 121

Commercial and industrial loans 93 116 133 175 308 -69.8 0 13 6 74 0

All other loans, leases, and other assets 28,110 27,057 26,299 25,918 25,036 12.3 0 19 34 9,549 18,509

Total credit exposure 190,571 35,219 34,516 33,902 36,375 423.9 11 155,629 3,133 11,778 20,020

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 53 54 56 63 104 -49.0 1 16 18 12 6

Total credit exposure 32,255 34,350 35,012 35,130 35,264 -8.5 0 40 124 1,804 30,287

Total unused liquidity commitments 1,260 1,298 1,150 1,118 1,131 11.4 0 14 0 429 817

Other

Assets serviced for others** 5,994,620 5,928,869 5,946,667 5,944,659 5,982,208 0.2 4,684 196,602 284,014 1,310,993 4,198,328

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 16,909 16,618 16,698 17,521 21,720 -22.2 0 0 0 0 16,909

Unused liquidity commitments to conduits sponsored by institutions 

 and others 26,928 27,458 28,342 25,784 21,832 23.3 0 0 5 1,338 25,585

Net servicing income (for the quarter) 2,173 2,306 2,167 2,829 4,997 -56.5 -169 243 189 1,087 822

Net securitization income (for the quarter) 131 395 472 363 228 -42.5 0 5 4 77 45

Total credit exposure to Tier 1 capital (%)*** 13.9 4.6 4.6 4.7 4.9 0.1 123.0 1.9 2.7 7.0

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

** 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.
2 0 1 8  •  Volume 1 2  • Number 1

14 FDIC QUARTERLY

TABLE VIII-A. Trust Services (All FDIC-Insured Institutions)

All Insured Institutions Asset Size Distribution

(dollar figures in millions)

Dec 31

2017

Dec 31

2016

Dec 31

2015

Dec 31

2014

% Change 

2016-2017

Less 

Than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

Number of institutions reporting 5,670 5,913 6,182 6,509 -4.1 1,407 3,513 627 114 9

Number of institutions with fiduciary powers 1,746 1,807 1,857 1,923 -3.4 215 1,098 344 80 9

Commercial banks 1,618 1,674 1,721 1,779 -3.3 200 1,034 301 74 9

Savings institutions 128 133 136 144 -3.8 15 64 43 6 0

Number of institutions exercising fiduciary powers 1,293 1,344 1,379 1,435 -3.8 129 803 279 73 9

Commercial banks 1,190 1,235 1,271 1,318 -3.6 115 751 248 67 9

Savings institutions 103 109 108 117 -5.5 14 52 31 6 0

Number of institutions reporting fiduciary activity 1,225 1,267 1,298 1,357 -3.3 120 752 272 72 9

Commercial banks 1,128 1,166 1,197 1,247 -3.3 106 704 243 66 9

Savings institutions 97 101 101 110 -4.0 14 48 29 6 0

Fiduciary and related assets - managed assets 

Personal trust and agency accounts 684,146 632,625 642,115 687,945 8.1 17,583 55,002 75,962 264,713 270,886

Noninterest-bearing deposits 9,074 9,569 10,578 8,693 -5.2 17 605 204 250 7,996

Interest-bearing deposits 70,967 74,682 80,050 79,642 -5.0 238 4,527 6,761 12,701 46,740

U.S. Treasury and U.S. Government agency obligations 108,284 100,568 83,343 100,951 7.7 1,749 3,510 15,056 41,958 46,010

State, county and municipal obligations 219,069 199,526 194,887 180,255 9.8 5,584 11,325 19,055 84,821 98,285

Money market mutual funds 99,534 101,602 105,684 101,966 -2.0 2,502 8,082 11,063 36,025 41,862

Other short-term obligations 151,809 149,233 162,046 189,900 1.7 94 93 776 118,609 32,237

Other notes and bonds 272,738 246,503 173,848 198,682 10.6 9,246 6,208 13,820 177,886 65,579

Common and preferred stocks 3,324,510 2,906,511 2,668,254 2,914,323 14.4 37,439 187,290 188,874 1,933,230 977,677

Real estate mortgages 1,861 2,034 1,957 1,989 -8.5 328 285 304 535 408

Real estate 47,887 49,026 50,917 43,849 -2.3 1,046 7,244 6,604 13,794 19,199

Miscellaneous assets 122,752 116,135 118,135 117,239 5.7 1,766 8,343 11,434 49,192 52,016

Employee benefit and retirement-related trust and 

agency accounts:

Employee benefit - defined contribution 428,440 396,726 342,054 361,774 8.0 1,475 6,685 14,175 357,835 48,270

Employee benefit - defined benefit 585,299 646,918 551,423 612,253 -9.5 3,564 3,637 21,137 504,111 52,851

Other employee benefit and retirement-related 

 accounts 373,359 312,368 290,760 310,073 19.5 5,037 49,930 26,284 150,393 141,715

Corporate trust and agency accounts 19,903 19,809 19,444 20,957 0.5 0 320 6,188 10,592 2,804

Investment management and investment advisory 

agency accounts 1,935,596 1,616,180 1,433,152 1,560,369 19.8 29,672 110,309 113,886 1,003,592 678,137

Other fiduciary accounts 401,741 330,764 370,752 384,119 21.5 2,680 11,629 16,320 177,765 193,347

Total managed fiduciary accounts: 

Assets 4,428,484 3,955,390 3,649,700 3,937,490 12.0 60,010 237,512 273,951 2,469,001 1,388,009

Number of accounts 1,846,680 1,760,617 1,694,191 1,635,972 4.9 120,758 361,795 309,394 499,043 555,690

Fiduciary and related assets - nonmanaged assets 

Personal trust and agency accounts 280,165 260,240 276,133 289,810 7.7 4,036 24,528 27,900 139,121 84,581

Employee benefit and retirement-related trust and 

agency accounts: 

Employee benefit - defined contribution 2,333,041 2,112,375 2,036,329 2,208,911 10.4 115,280 31,900 62,828 1,512,578 610,454

Employee benefit - defined benefit 4,659,295 4,187,660 4,169,025 4,208,533 11.3 15,073 26,479 15,091 3,611,460 991,193

Other employee benefit and retirement-related accounts 1,627,419 1,303,939 1,303,086 1,612,404 24.8 992 45,025 16,593 1,325,578 239,231

Corporate trust and agency accounts 3,350,526 2,593,482 2,657,963 2,568,742 29.2 13 8,141 350,887 316,842 2,674,643

Other fiduciary accounts 3,655,462 3,250,872 3,035,378 3,503,127 12.4 6,742 34,348 32,019 1,842,055 1,740,298

Total nonmanaged fiduciary accounts: 

Assets 15,905,908 13,708,569 13,477,912 14,391,526 16.0 142,135 170,421 505,316 8,747,635 6,340,400

Number of accounts 3,849,476 3,931,329 3,809,370 3,846,839 -2.1 123,103 1,162,264 194,818 1,707,144 662,147

Custody and safekeeping accounts: 

Assets 97,547,974 85,355,832 81,322,742 83,504,133 14.3 275,742 920,338 982,196 32,875,713 62,493,986

Number of accounts 9,272,643 8,567,235 8,290,770 9,368,787 8.2 2,322,075 4,932,745 113,105 594,684 1,310,034

Fiduciary and related services income 

Personal trust and agency accounts 4,662 4,514 4,707 4,871 3.3 123 266 510 1,776 1,987

Retirement-related trust and agency accounts: 

Employee benefit - defined contribution 1,333 1,229 1,199 1,190 8.5 20 47 187 602 477

Employee benefit - defined benefit 1,509 1,415 1,391 1,381 6.6 11 18 32 989 458

Other employee benefit and retirement-related accounts 1,910 1,655 1,519 1,498 15.4 50 436 236 676 512

Corporate trust and agency accounts 1,718 1,684 1,469 1,371 2.0 0 15 307 369 1,027

Investment management agency accounts 8,524 7,766 7,449 6,987 9.8 104 741 827 3,051 3,801

Other fiduciary accounts 812 764 684 827 6.3 3 27 9 381 391

Custody and safekeeping accounts 14,406 13,377 13,361 13,091 7.7 16 323 536 5,336 8,195

Other fiduciary and related services income 904 832 970 1,157 8.7 9 90 114 278 412

Total gross fiduciary and related services income 35,870 33,399 32,883 32,515 7.4 341 2,037 2,773 13,460 17,259

Less: Expenses 33,134 30,645 30,696 30,826 8.1 241 1,533 2,480 14,079 14,802

Less: Net losses from fiduciary and related services 256 207 367 220 23.7 0 5 4 101 146

Plus: Intracompany income credits for fiduciary and 

 related services 7,410 5,757 4,946 5,406 28.7 1 18 329 3,844 3,219

Net fiduciary and related services income 9,731 8,139 6,631 6,730 19.6 97 442 576 3,085 5,531

Collective investment funds and common trust funds 

(market value) 

Domestic equity funds 718,199 636,516 558,173 615,207 12.8 7,684 969 15,684 533,596 160,267

International/global equity funds 230,397 186,627 188,974 193,625 23.5 1,547 6,526 4,596 156,713 61,015

Stock/bond blend funds 141,328 142,755 137,835 143,065 -1.0 1,332 722 6,439 76,070 56,764

Taxable bond funds 148,520 149,992 146,148 154,238 -1.0 853 1,847 2,149 3,834 139,837

Municipal bond funds 3,001 3,291 3,924 4,373 -8.8 36 295 41 1,529 1,100

Short-term investments/money market funds 154,093 161,560 145,387 178,284 -4.6 2,194 0 67 90,791 61,041

Specialty/other funds 56,774 56,067 52,694 47,543 1.3 30 302 5,568 2,827 48,047

Total collective investment funds 1,452,312 1,336,808 1,233,135 1,336,336 8.6 13,676 10,661 34,544 865,361 528,071
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

COMMUNITY BANK PERFORMANCE

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

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

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

designated during the previous quarter.

Net Income Falls 14.2 Percent From a Year Ago Largely Due to One-Time Changes From the New Tax Law

Excluding Changes From the New Tax Law, Estimated Quarterly Net Income Would Have Been $5.6 Billion, 

Up 17 Percent From a Year Ago

Net Interest Margin Widens Year-Over-Year to 3.66 Percent

Loan and Lease Balances Rise 7.7 Percent Annually

Noncurrent Loans Decline, While Net Charge-Offs Remain Flat Year-Over-Year

Community Banks Report 

Fourth Quarter Net Income 

of $4.1 Billion

Net income of $4.1 billion for 5,227 FDIC-insured community banks was down $681 million 

(14.2 percent) compared with fourth quarter 2016, following a significant rise in income tax 

expenses. A reduction in corporate tax rates under the new tax law prompted significant 

one-time write-downs on deferred tax assets, which contributed to a $1.8 billion increase in 

income tax expense compared with the same period last year. Excluding one-time income 

tax effects, estimated quarterly net income would have been $5.6 billion at community 

banks, up 17 percent from fourth quarter 2016.1 Higher net interest income lifted the pretax 

return on assets (ROA) 13 basis points to 1.31 percent, compared with the same quarter last 

year. This improvement narrowed the gap between community and noncommunity bank 

pretax ROAs from 33 basis points at fourth quarter 2016 to 9 basis points at fourth quarter 

2017. One de novo opened and two community banks failed during the quarter.

Contributors to the Year-Over-Year Change in Income 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income NetInterest

Income

Loan Loss

Provisions NoninterestIncome NoninterestExpense RealizedGains on

Securities

Income

Taxes

Positive Factor Negative Factor

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

-$0.68 $1.60 -$0.03 -$0.03 $0.50 -$0.02 $1.76

-14% +9% -4% -1% +3% -46% +137%

Chart 1

Source: FDIC.

Quarterly Average Net Interest Margin

Percent 

Community Banks 

Industry

3.66

3.31

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 2

1 This estimate of net income applies the average quarterly tax rate at community banks between fourth quarter 2011 and third 

quarter 2017 to income before taxes and discontinued operations. 
2 0 1 8  •  Volume 1 2  • Number 1

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions Change 4Q 2017 vs. 4Q 2016

Change 4Q 2017 vs. 3Q 2017 

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

C&I

Loans

1-to-4 Family

Residential

RE

C&D

Loans

Agricultural

Production

Loans

CRE &

C&D

C&I

Loans

40.6

14.2

11.6

18.9

1.5

9.9

5.9

9.7

5.2 4.2 4.2

-0.9

1.2 1.0

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Percent of Loan Portfolio Noncurrent

0

2

4

6

8

10

12

14

C&D Loans Nonfarm Nonresidential RE

1-to-4 Family RE

C&I Loans Home Equity 

Credit Cards

2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 4

Annual Net Income of 

$20.6 Billion Is 4 Percent 

Higher Than 2016

Annual net income of $20.6 billion was up $757 million (4 percent) from a year earlier, as 

the majority of community banks (56 percent) reported higher net income. Changes from 

the new tax law contributed to a $2.3 billion (39 percent) increase in income tax expenses in 

2017. Excluding these tax effects, estimated annual net income would have been $22.3 billion, 

up from $19.8 billion in 2016.2 A $5.8 billion increase in net interest income during the year 

offset higher noninterest expense (up $2.4 billion, or 4 percent) and boosted the pretax ROA 

by 5 basis points to 1.35 percent. Higher payroll expenses (up $1.7 billion, or 5 percent) led 

the annual increase in noninterest expenses.

Net Operating Revenue 

Rises More Than 7 Percent 

From the Previous Year

Higher net interest income (up $1.6 billion, or 9.4 percent) lifted net operating revenue 

7.2 percent year-over-year to $23.4 billion. Growth in other real estate loan income (up 

$1 billion, or 13.3 percent) drove most of the increase in net interest income.3 The average 

net interest margin (NIM) at community banks widened 8 basis points year-over-year to 

3.66 percent, but increased less than 1 basis point during the quarter. Higher earning asset 

yields, which increased at a faster rate than average funding costs, drove this improvement. 

NIM for community banks was 40 basis points wider than that of noncommunity banks. 

Noninterest income fell by $31.1 million (0.6 percent) from fourth quarter 2016 largely due to 

a $261 million decline in net gains on loan sales.

Noninterest Expense Rises 

3 Percent Year-Over-Year

Higher payroll expenses drove most of the $502.8 million (3.4 percent) year-over-year 

increase in noninterest expenses. Payroll expenses were up $393.1 million (4.7 percent) as 

community banks added 7,547 full-time employees in 2017, a 1.8 percent increase. Average 

total assets per employee increased 4.8 percent to $5.2 million during the same period. More 

than two out of three (68.5 percent) community banks reported higher noninterest expense, 

while noninterest expense as a percentage of average assets declined by 7 basis points to 

2.83 percent from the year ago quarter.

2 This estimate of net income applies the average annual tax rate at community banks between 2011 and 2016 to income before 

taxes and discontinued operations. 

3 Other real estate loan income includes income from construction and development, farmland, multifamily, and nonfarm 

nonresidential loans.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Loan and Lease Balances 

Increase 1.8 Percent During 

the Quarter

Loan and lease balances totaled $1.6 trillion at year-end 2017, up 1.8 percent in the fourth 

quarter. Increases in nonfarm nonresidential loans of $9.7 billion (2.2 percent), construction and development (C&D) loans of $4.2 billion (4.1 percent), commercial and industrial 

(C&I) loans of $5.2 billion (2.6 percent), and multifamily loans of $2.4 billion (2.1 percent) 

contributed most to the quarterly growth. Unfunded commitments increased by $4 billion 

(1.4 percent) during the quarter. Over the past 12 months, loan and lease balances 

increased by $111 billion (7.7 percent), led by increases in nonfarm nonresidential loans 

(up 9.7 percent), 1-to-4 family residential loans (up 4.9 percent), C&I loans (up 7.4 percent), 

C&D loans (up 12.2 percent), and multifamily loans (up 11.8 percent). Community banks 

made commitments to fund an additional $22.3 billion (8.3 percent) in loans compared to a 

year ago. Annual growth in unfunded commitments was led by C&D loans (up $10.2 billion 

or 13.3 percent) and C&I loans (up $5.9 billion or 6.9 percent).

Community Banks Add 

More Small Loans to 

Businesses

Community banks funded an additional $9.2 billion in small loans to businesses compared 

with fourth quarter 2016, increasing the total to $294.8 billion (up 3.2 percent). Most of the 

growth in this category was in nonfarm nonresidential loans (up $4.3 billion or 3.1 percent) 

and C&I loans (up $3.6 billion or 4.1 percent). The annual rate of increase in small loans to 

businesses of 3.2 percent was more than twice that of noncommunity banks.

Noncurrent Loan Rate 

Declines

The noncurrent loan rate declined 6 basis points during the fourth quarter to 0.85 percent, 

following a quarterly 4.4 percent decline in noncurrent loan balances to $13.3 billion. The 

noncurrent rate for C&I loans improved most among major loan categories during the 

fourth quarter, declining by 13 basis points. Despite the improvement, C&I loans had the 

highest noncurrent rate among major loan categories (1.13 percent) followed by 1-to-4 family 

residential loans (1.12 percent). Additionally, nearly two out of three community banks 

(63.5 percent) reported lower or unchanged noncurrent rates from a year ago. Since fourth 

quarter 2016, the noncurrent rate declined 16 basis points (7.1 percent).

Net Charge-Off Rate Holds 

Steady From a Year Ago

The net charge-off rate of 0.21 percent at year-end 2017 was down 1 basis point from fourth 

quarter 2016. The net charge-off rate at community banks was 40 basis points below that of 

noncommunity banks (0.61 percent). Net charge-off rates increased from a year ago in two 

major loan categories: C&I loans (up 7 basis points) and C&D loans (up 3 basis points), while 

it declined by 3 basis points for nonfarm nonresidential loans.

Author:

Erica Jill Tholmer

Senior Financial Analyst

Division of Insurance and Research

(202) 898-3935
2 0 1 8  •  Volume 1 2  • Number 1

18 FDIC QUARTERLY

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

2017 2016 2015 2014 2013 2012 2011

Return on assets (%) 0.96 0.99 0.99 0.93 0.90 0.83 0.55

Return on equity (%) 8.67 8.81 8.85 8.45 8.27 7.68 5.19

Core capital (leverage) ratio (%) 10.80 10.69 10.67 10.57 10.43 10.18 9.98

Noncurrent assets plus other real estate owned to assets (%) 0.78 0.94 1.07 1.34 1.73 2.27 2.84

Net charge-offs to loans (%) 0.16 0.16 0.15 0.21 0.32 0.58 0.87

Asset growth rate (%) 0.85 2.97 2.71 2.21 0.39 2.25 1.64

Net interest margin (%) 3.62 3.57 3.57 3.61 3.59 3.67 3.74

Net operating income growth (%) 0.04 2.47 9.54 4.81 14.64 56.17 207.86

Number of institutions reporting 5,227 5,461 5,735 6,037 6,307 6,542 6,799

Percentage of unprofitable institutions (%) 5.49 4.63 5.02 6.44 8.40 11.14 16.34

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

(dollar figures in millions)  4th Quarter

2017

3rd Quarter

2017

4th Quarter

2016

%Change 

16Q4-17Q4

Number of institutions reporting 5,227 5,295 5,461 -4.3

Total employees (full-time equivalent) 416,241 422,859 431,061 -3.4

CONDITION DATA

Total assets $2,201,554 $2,226,349 $2,182,948 0.9

Loans secured by real estate 1,194,926 1,201,706 1,160,745 2.9

 1-4 Family residential mortgages 395,464 399,703 389,906 1.4

 Nonfarm nonresidential 456,967 458,397 445,339 2.6

 Construction and development 106,817 104,868 101,907 4.8

 Home equity lines 49,748 50,087 50,721 -1.9

Commercial & industrial loans 204,968 206,565 203,277 0.8

Loans to individuals 61,823 61,863 60,901 1.5

 Credit cards 2,039 2,048 2,215 -8.0

Farm loans 51,657 52,685 50,717 1.9

Other loans & leases 38,879 39,620 39,697 -2.1

Less: Unearned income 699 687 660 5.9

Total loans & leases 1,551,555 1,561,752 1,514,678 2.4

Less: Reserve for losses 18,063 18,481 18,680 -3.3

Net loans and leases 1,533,492 1,543,272 1,495,998 2.5

Securities 408,789 420,143 422,963 -3.4

Other real estate owned 3,913 4,238 5,052 -22.6

Goodwill and other intangibles 13,526 14,370 14,407 -6.1

All other assets 241,834 244,326 244,528 -1.1

Total liabilities and capital 2,201,554 2,226,349 2,182,948 0.9

Deposits 1,804,513 1,819,074 1,793,683 0.6

 Domestic office deposits 1,804,024 1,818,403 1,793,205 0.6

 Foreign office deposits 490 671 478 2.4

 Brokered deposits 90,705 90,019 81,074 11.9

Estimated insured deposits 1,328,226 1,343,869 1,329,677 -0.1

Other borrowed funds 135,316 137,752 131,754 2.7

Subordinated debt 865 1,007 806 7.4

All other liabilities 15,850 17,310 16,067 -1.4

Total equity capital (includes minority interests) 245,009 251,206 240,637 1.8

 Bank equity capital 244,885 251,091 240,540 1.8

Loans and leases 30-89 days past due 8,381 7,688 8,661 -3.2

Noncurrent loans and leases 13,254 14,195 15,325 -13.5

Restructured loans and leases 7,016 7,356 8,291 -15.4

Mortgage-backed securities 173,569 179,559 181,023 -4.1

Earning assets 2,052,647 2,076,129 2,029,748 1.1

FHLB Advances 111,168 111,808 104,002 6.9

Unused loan commitments 291,083 293,301 284,791 2.2

Trust assets 331,438 282,638 294,187 12.7

Assets securitized and sold 24,080 21,762 14,704 63.8

Notional amount of derivatives 66,662 71,407 59,764 11.5

INCOME DATA Full Year 2017 Full Year 2016 %Change

4th Quarter 

2017

4th Quarter 

2016

%Change 

16Q4-17Q4

Total interest income $82,231 $79,191 3.8 $21,470 $20,420 5.1

Total interest expense 10,322 9,133 13.0 2,850 2,369 20.3

Net interest income 71,909 70,058 2.6 18,621 18,052 3.2

Provision for loan and lease losses 3,111 3,266 -4.7 823 1,170 -29.7

Total noninterest income 18,699 19,939 -6.2 4,779 5,137 -7.0

Total noninterest expense 59,099 59,986 -1.5 15,428 15,664 -1.5

Securities gains (losses) 351 638 -45.0 26 50 -48.8

Applicable income taxes 8,161 6,566 24.3 3,050 1,650 84.9

Extraordinary gains, net* 2 -9 N/M -2 -9 N/M

Total net income (includes minority interests) 20,590 20,808 -1.0 4,122 4,746 -13.1

 Bank net income 20,567 20,786 -1.1 4,117 4,741 -13.1

Net charge-offs 2,381 2,245 6.1 814 833 -2.3

Cash dividends 9,934 10,213 -2.7 2,976 3,052 -2.5

Retained earnings 10,633 10,572 0.6 1,141 1,689 -32.5

Net operating income 20,320 20,312 0.0 4,101 4,717 -13.0

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

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  4th Quarter 

2017

3rd Quarter 

2017

4th Quarter

2016

%Change 

16Q4-17Q4

Number of institutions reporting 5,227 5,226 5,223 0.1

Total employees (full-time equivalent) 416,241 414,148 408,694 1.8

CONDITION DATA

Total assets $2,201,554 $2,169,540 $2,081,691 5.8

Loans secured by real estate 1,194,926 1,173,256 1,105,085 8.1

 1-4 Family residential mortgages 395,464 391,272 376,530 5.0

 Nonfarm nonresidential 456,967 447,272 416,373 9.7

 Construction and development 106,817 102,614 95,234 12.2

 Home equity lines 49,748 49,322 48,015 3.6

Commercial & industrial loans 204,968 199,760 190,818 7.4

Loans to individuals 61,823 61,388 58,878 5.0

 Credit cards 2,039 1,984 2,090 -2.5

Farm loans 51,657 52,576 50,184 2.9

Other loans & leases 38,879 37,642 36,240 7.3

Less: Unearned income 699 685 637 9.7

Total loans & leases 1,551,555 1,523,936 1,440,568 7.7

Less: Reserve for losses 18,063 18,139 17,579 2.8

Net loans and leases 1,533,492 1,505,798 1,422,989 7.8

Securities 408,789 407,132 407,484 0.3

Other real estate owned 3,913 4,175 4,859 -19.5

Goodwill and other intangibles 13,526 13,140 12,381 9.2

All other assets 241,834 239,295 233,979 3.4

Total liabilities and capital 2,201,554 2,169,540 2,081,691 5.8

Deposits 1,804,513 1,777,866 1,712,332 5.4

 Domestic office deposits 1,804,024 1,777,288 1,711,869 5.4

 Foreign office deposits 490 578 463 5.8

 Brokered deposits 90,705 88,251 77,789 16.6

Estimated insured deposits 1,328,226 1,317,617 1,275,333 4.1

Other borrowed funds 135,316 129,915 124,304 8.9

Subordinated debt 865 822 612 41.4

All other liabilities 15,850 16,641 15,242 4.0

Total equity capital (includes minority interests) 245,009 244,296 229,201 6.9

 Bank equity capital 244,885 244,180 229,123 6.9

Loans and leases 30-89 days past due 8,381 7,518 8,388 -0.1

Noncurrent loans and leases 13,254 13,865 14,267 -7.1

Restructured loans and leases 7,016 7,235 8,043 -12.8

Mortgage-backed securities 173,569 171,836 172,965 0.3

Earning assets 2,052,647 2,024,127 1,936,836 6.0

FHLB Advances 111,168 105,544 98,818 12.5

Unused loan commitments 291,083 287,056 268,814 8.3

Trust assets 331,438 280,154 295,170 12.3

Assets securitized and sold 24,080 21,762 14,704 63.8

Notional amount of derivatives 66,662 69,869 55,772 19.5

INCOME DATA Full Year 2017 Full Year 2016 %Change

4th Quarter 

2017

4th Quarter 

2016

%Change 

16Q4-17Q4

Total interest income $82,231 $74,707 10.1 $21,470 $19,258 11.5

Total interest expense 10,322 8,640 19.5 2,850 2,236 27.4

Net interest income 71,909 66,067 8.8 18,621 17,022 9.4

Provision for loan and lease losses 3,111 2,859 8.8 823 852 -3.5

Total noninterest income 18,699 18,650 0.3 4,779 4,810 -0.6

Total noninterest expense 59,099 56,748 4.1 15,428 14,925 3.4

Securities gains (losses) 351 602 -41.7 26 48 -46.3

Applicable income taxes 8,161 5,872 39.0 3,050 1,289 136.6

Extraordinary gains, net** 2 -9 N/M -2 -9 N/M

Total net income (includes minority interests) 20,590 19,831 3.8 4,122 4,804 -14.2

 Bank net income 20,567 19,809 3.8 4,117 4,799 -14.2

Net charge-offs 2,381 2,153 10.6 814 789 3.2

Cash dividends 9,934 9,382 5.9 2,976 2,792 6.6

Retained earnings 10,633 10,428 2.0 1,141 2,007 -43.1

Net operating income 20,320 19,362 5.0 4,101 4,776 -14.1

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 8  •  Volume 1 2  • Number 1

20 FDIC QUARTERLY

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

Fourth Quarter 2017

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 5,227 601 612 1,145 1,385 1,155 329

Total employees (full-time equivalent) 416,241 84,520 50,547 87,273 70,118 91,106 32,677

CONDITION DATA

Total assets $2,201,554 $591,514 $244,508 $397,108 $347,914 $421,398 $199,112

Loans secured by real estate 1,194,926 370,514 135,461 206,799 167,600 206,741 107,811

 1-4 Family residential mortgages 395,464 136,456 42,294 71,782 51,459 66,374 27,099

 Nonfarm nonresidential 456,967 130,805 59,122 75,445 55,902 84,394 51,299

 Construction and development 106,817 23,955 15,469 14,951 14,636 28,940 8,868

 Home equity lines 49,748 16,336 7,544 10,970 5,157 4,890 4,852

Commercial & industrial loans 204,968 49,481 20,655 39,699 34,958 41,532 18,643

Loans to individuals 61,823 14,534 7,068 12,192 10,407 13,071 4,551

 Credit cards 2,039 443 159 400 581 238 219

Farm loans 51,657 588 1,202 8,699 28,825 9,535 2,807

Other loans & leases 38,879 11,300 3,452 7,246 5,983 7,531 3,366

Less: Unearned income 699 168 105 54 93 135 143

Total loans & leases 1,551,555 446,249 167,732 274,582 247,681 278,276 137,034

Less: Reserve for losses 18,063 4,521 1,911 3,206 3,251 3,430 1,746

Net loans and leases 1,533,492 441,728 165,822 271,376 244,430 274,847 135,289

Securities 408,789 93,090 45,009 79,775 64,468 90,426 36,021

Other real estate owned 3,913 659 901 696 641 797 219

Goodwill and other intangibles 13,526 4,023 1,415 2,550 1,973 2,544 1,021

All other assets 241,834 52,013 31,362 42,710 36,402 52,785 26,563

Total liabilities and capital 2,201,554 591,514 244,508 397,108 347,914 421,398 199,112

Deposits 1,804,513 466,986 202,840 327,685 287,239 353,802 165,962

 Domestic office deposits 1,804,024 466,541 202,840 327,667 287,239 353,802 165,935

 Foreign office deposits 490 444 0 18 0 0 27

 Brokered deposits 90,705 28,785 7,922 16,352 14,934 12,537 10,175

 Estimated insured deposits 1,328,226 333,711 149,364 257,592 223,752 253,514 110,293

Other borrowed funds 135,316 52,012 13,023 22,232 20,203 18,667 9,179

Subordinated debt 865 485 257 46 10 52 15

All other liabilities 15,850 5,493 1,649 2,764 1,875 2,394 1,675

Total equity capital (includes minority interests) 245,009 66,539 26,738 44,380 38,587 46,484 22,280

 Bank equity capital 244,885 66,471 26,724 44,363 38,586 46,462 22,280

Loans and leases 30-89 days past due 8,381 2,163 1,072 1,501 1,237 1,989 419

Noncurrent loans and leases 13,254 4,419 1,459 2,369 1,782 2,517 709

Restructured loans and leases 7,016 2,116 886 1,610 983 991 431

Mortgage-backed securities 173,569 52,395 19,069 30,472 20,750 33,466 17,417

Earning assets 2,052,647 555,666 226,004 369,346 324,002 390,677 186,953

FHLB Advances 111,168 46,132 11,114 17,030 15,237 14,824 6,831

Unused loan commitments 291,083 76,059 30,265 54,208 49,447 51,130 29,974

Trust assets 331,438 75,609 12,636 85,523 97,099 50,845 9,726

Assets securitized and sold 24,080 8,821 76 8,007 2,541 777 3,857

Notional amount of derivatives 66,662 27,427 7,422 13,889 6,917 8,350 2,657

INCOME DATA

Total interest income $21,470 $5,537 $2,423 $3,805 $3,428 $4,264 $2,013

Total interest expense 2,850 915 298 491 462 484 199

Net interest income 18,621 4,622 2,125 3,313 2,966 3,780 1,814

Provision for loan and lease losses 823 301 57 115 131 175 44

Total noninterest income 4,779 1,020 528 1,238 724 930 340

Total noninterest expense 15,428 3,741 1,861 2,962 2,398 3,106 1,360

Securities gains (losses) 26 47 -2 -8 -7 0 -4

Applicable income taxes 3,050 997 452 498 301 401 401

Extraordinary gains, net** -2 0 -3 0 0 0 0

Total net income (includes minority interests) 4,122 650 278 968 853 1,028 346

 Bank net income 4,117 648 277 967 853 1,027 346

Net charge-offs 814 244 73 151 140 185 21

Cash dividends 2,976 326 307 760 587 799 197

Retained earnings 1,141 322 -30 207 265 228 149

Net operating income 4,101 611 281 975 857 1,029 348

* See Table V-A for explanation.

** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Fourth Quarter 2017, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Fourth Quarter 2017, Geographic Regions*

 4th Quarter 

2017

3rd Quarter 

2017 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.22 4.20 4.02 4.33 4.15 4.27 4.40 4.35

Cost of funding earning assets 0.56 0.54 0.66 0.53 0.54 0.58 0.50 0.43

Net interest margin 3.66 3.65 3.36 3.80 3.61 3.69 3.90 3.92

Noninterest income to assets 0.88 0.89 0.70 0.87 1.26 0.84 0.89 0.69

Noninterest expense to assets 2.83 2.76 2.55 3.07 3.00 2.79 2.97 2.76

Loan and lease loss provision to assets 0.15 0.14 0.21 0.09 0.12 0.15 0.17 0.09

Net operating income to assets 0.75 1.07 0.42 0.46 0.99 1.00 0.98 0.71

Pretax return on assets 1.31 1.42 1.12 1.20 1.49 1.34 1.37 1.52

Return on assets 0.75 1.08 0.44 0.46 0.98 0.99 0.98 0.70

Return on equity 6.75 9.61 3.92 4.15 8.73 8.85 8.86 6.24

Net charge-offs to loans and leases 0.21 0.13 0.22 0.18 0.22 0.23 0.27 0.06

Loan and lease loss provision to net charge-offs 101.05 154.10 123.49 78.41 75.92 93.41 94.69 205.67

Efficiency ratio 65.31 63.83 64.71 69.79 64.75 64.61 65.71 62.86

Net interest income to operating revenue 79.58 79.24 81.93 80.11 72.79 80.39 80.26 84.21

% of unprofitable institutions 16.13 4.17 28.95 24.02 14.59 10.97 12.55 17.63

% of institutions with earnings gains 46.55 66.59 30.12 40.36 46.99 52.71 52.73 38.91

Table V-B. Full Year 2017, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks Full Year 2017, Geographic Regions*

Full Year 2017 Full Year 2016 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.14 4.04 3.95 4.23 4.05 4.20 4.32 4.26

Cost of funding earning assets 0.52 0.47 0.62 0.49 0.49 0.54 0.46 0.40

Net interest margin 3.62 3.57 3.33 3.74 3.56 3.67 3.87 3.86

Noninterest income to assets 0.88 0.95 0.66 0.91 1.23 0.86 0.92 0.73

Noninterest expense to assets 2.77 2.85 2.48 3.01 2.96 2.74 2.93 2.72

Loan and lease loss provision to assets 0.15 0.15 0.20 0.11 0.10 0.15 0.17 0.08

Net operating income to assets 0.95 0.96 0.68 0.80 1.09 1.13 1.13 1.01

Pretax return on assets 1.35 1.30 1.14 1.25 1.48 1.41 1.41 1.57

Return on assets 0.96 0.99 0.70 0.80 1.09 1.14 1.14 1.02

Return on equity 8.67 8.81 6.27 7.29 9.77 10.21 10.33 9.08

Net charge-offs to loans and leases 0.16 0.16 0.20 0.13 0.13 0.15 0.22 0.05

Loan and lease loss provision to net charge-offs 130.69 145.51 132.82 126.13 115.06 142.20 120.61 221.05

Efficiency ratio 64.84 66.13 65.01 68.67 64.85 63.53 64.76 62.11

Net interest income to operating revenue 79.36 77.85 82.62 79.18 72.97 79.83 79.64 83.15

% of unprofitable institutions 5.49 4.63 7.65 9.48 5.76 3.39 4.24 6.38

% of institutions with earnings gains 55.71 64.24 50.25 52.94 56.42 55.38 58.53 59.88

* See Table V-A for explanation.
2 0 1 8  •  Volume 1 2  • Number 1

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

December 31, 2017

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 0.51 0.47 0.61 0.57 0.48 0.65 0.24

Construction and development 0.39 0.34 0.46 0.39 0.33 0.47 0.24

Nonfarm nonresidential 0.31 0.29 0.33 0.34 0.33 0.36 0.17

Multifamily residential real estate 0.13 0.12 0.06 0.19 0.14 0.28 0.05

Home equity loans 0.46 0.51 0.52 0.46 0.26 0.53 0.32

Other 1-4 family residential 0.90 0.80 1.15 0.97 0.76 1.16 0.45

Commercial and industrial loans 0.44 0.30 0.55 0.32 0.49 0.64 0.43

Loans to individuals 1.55 1.72 1.68 1.05 1.11 2.33 0.94

Credit card loans 2.13 1.59 1.33 1.31 4.01 1.50 1.03

Other loans to individuals 1.53 1.73 1.69 1.04 0.94 2.34 0.94

All other loans and leases (including farm) 0.44 0.33 0.29 0.48 0.44 0.50 0.54

Total loans and leases 0.54 0.48 0.64 0.55 0.50 0.71 0.31

Percent of Loans Noncurrent**

All loans secured by real estate 0.84 0.96 0.91 0.91 0.69 0.80 0.48

Construction and development 0.84 0.89 1.27 0.90 0.81 0.61 0.66

Nonfarm nonresidential 0.72 0.83 0.74 0.84 0.70 0.69 0.32

Multifamily residential real estate 0.22 0.16 0.39 0.42 0.29 0.26 0.05

Home equity loans 0.55 0.63 0.56 0.54 0.26 0.59 0.49

Other 1-4 family residential 1.12 1.41 1.14 1.10 0.60 1.07 0.86

Commercial and industrial loans 1.13 1.54 0.75 0.85 0.98 1.41 0.74

Loans to individuals 0.65 0.47 0.69 0.35 0.44 1.36 0.39

Credit card loans 1.25 1.62 0.70 0.93 1.79 0.58 0.76

Other loans to individuals 0.63 0.43 0.69 0.33 0.36 1.37 0.37

All other loans and leases (including farm) 0.60 0.33 0.44 0.65 0.70 0.60 0.59

Total loans and leases 0.85 0.99 0.87 0.86 0.72 0.90 0.52

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.05 0.07 0.04 0.06 0.04 0.04 -0.02

Construction and development 0.03 0.14 0.01 0.04 -0.06 0.03 -0.05

Nonfarm nonresidential 0.06 0.07 0.05 0.07 0.08 0.05 -0.02

Multifamily residential real estate 0.00 0.01 0.01 0.00 0.01 0.00 0.00

Home equity loans 0.05 0.05 0.06 0.06 0.04 0.03 -0.02

Other 1-4 family residential 0.06 0.08 0.04 0.07 0.04 0.05 -0.01

Commercial and industrial loans 0.51 0.87 0.36 0.29 0.31 0.66 0.17

Loans to individuals 0.98 0.98 0.99 0.67 1.22 1.11 0.96

Credit card loans 6.85 3.98 1.65 5.02 15.74 1.67 2.56

Other loans to individuals 0.78 0.88 0.97 0.52 0.37 1.10 0.88

All other loans and leases (including farm) 0.29 0.47 0.25 0.21 0.17 0.49 0.25

Total loans and leases 0.16 0.20 0.13 0.13 0.15 0.22 0.05

Loans Outstanding (in billions)

All loans secured by real estate $1,194.9 $370.5 $135.5 $206.8 $167.6 $206.7 $107.8

Construction and development 106.8 24.0 15.5 15.0 14.6 28.9 8.9

Nonfarm nonresidential 457.0 130.8 59.1 75.4 55.9 84.4 51.3

Multifamily residential real estate 114.6 60.6 6.7 16.9 9.4 8.6 12.2

Home equity loans 49.7 16.3 7.5 11.0 5.2 4.9 4.9

Other 1-4 family residential 395.5 136.5 42.3 71.8 51.5 66.4 27.1

Commercial and industrial loans 205.0 49.5 20.7 39.7 35.0 41.5 18.6

Loans to individuals 61.8 14.5 7.1 12.2 10.4 13.1 4.6

Credit card loans 2.0 0.4 0.2 0.4 0.6 0.2 0.2

Other loans to individuals 59.8 14.1 6.9 11.8 9.8 12.8 4.3

All other loans and leases (including farm) 90.5 11.9 4.7 15.9 34.8 17.1 6.2

Total loans and leases 1,552.3 446.4 167.8 274.6 247.8 278.4 137.2

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 291,083 76,059 30,265 54,208 49,447 51,130 29,974

Construction and development: 1-4 family residential 25,446 5,283 4,196 2,979 3,219 6,909 2,859

Construction and development: CRE and other 61,241 18,635 6,701 10,048 7,797 12,994 5,065

Commercial and industrial 92,024 23,187 8,394 19,073 15,464 16,063 9,843

* See Table V-A for explanation.

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

FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $2.2 Billion

Insured Deposits Grow by 0.8 Percent

DIF Reserve Ratio Rises 2 Basis Points to 1.30 Percent

The Deposit Insurance Fund (DIF) balance increased by $2.2 billion, to $92.7 billion, during 

the fourth quarter. Assessment income of $2.7 billion, which includes temporary assessment 

surcharges on large banks, was the largest source of the increase. Interest income and other 

revenue of $308 million, and a negative provision for insurance losses of $203 million, also 

increased the fund balance. Operating expenses of $443 million, unrealized losses on available-for-sale securities of $461 million, and other unrealized losses of $20 million partially 

offset the increase in the fund balance.1 Two insured institutions with combined assets of 

$199 million failed in the fourth quarter. Eight insured institutions with combined assets of 

$5.1 billion failed in all of 2017.

The deposit insurance assessment base—average consolidated total assets minus average tangible equity—increased by 1.1 percent in the fourth quarter and by 3.0 percent over 

12 months.2, 3 Total estimated insured deposits increased by 0.8 percent in the fourth quarter of 2017 and by 3.5 percent year-over-year. The DIF’s reserve ratio (the fund balance as 

a percent of estimated insured deposits) rose to 1.30 percent on December 31, 2017, from 

1.28 percent at September 30, 2017, and 1.20 percent four quarters ago. The December 31, 

2017, reserve ratio is the highest for the DIF since December 31, 2004, when the reserve ratio 

was 1.31 percent.4

By law, the reserve ratio must reach a minimum of 1.35 percent by September 30, 2020. The 

law also requires that, in setting assessments, the FDIC offset the effect of the increase in the 

reserve ratio from 1.15 to 1.35 percent on banks with less than $10 billion in assets. To satisfy 

these requirements, large banks are subject to a temporary surcharge of 4.5 basis points of 

their assessment base, after making certain adjustments.5, 6 Surcharges began in the third 

quarter of 2016 and will continue through the quarter in which the reserve ratio reaches or 

exceeds 1.35 percent. If, however, the reserve ratio has not reached 1.35 percent by the end of 

2018, large banks will pay a shortfall assessment in early 2019 to close the gap.

Small banks will receive credits to offset the portion of their assessments that help to raise 

the reserve ratio from 1.15 percent to 1.35 percent. When the reserve ratio is at or above 

1.38 percent, the FDIC will automatically apply a small bank’s credits to reduce its regular 

assessment up to the entire amount of the assessment.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

1 Includes unrealized postretirement benefit loss.

2 There are additional adjustments to the assessment base for banker’s banks and custodial banks.

3 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

4 The reserve ratio at December 31, 2004, represents the combined balances of the Bank Insurance Fund and Savings Association 

Insurance Fund as a percent of estimated insured deposits.

5 Large banks are generally those with assets of $10 billion or more.

6 The assessment base for the surcharge is a large bank’s regular assessment base reduced by $10 billion (and subject to additional 

adjustment for affiliated banks).
2018 • Volume 12 • Number 1

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.01 1.03 1.07 1.09 1.11 1.13 1.17 1.18 1.20 1.20

1.24 1.28 1.30

12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

4th 

Quarter 

2017

3rd 

Quarter 

2017

2nd 

Quarter 

2017

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd 

Quarter 

2016

1st 

Quarter 

2016

4th 

Quarter 

2015

3rd 

Quarter 

2015

2nd 

Quarter 

2015

1st 

Quarter 

2015

4th 

Quarter 

2014

Beginning Fund Balance $90,506 $87,588 $84,928 $83,162 $80,704 $77,910 $75,120 $72,600 $70,115 $67,589 $65,296 $62,780 $54,320

Changes in Fund Balance:

Assessments earned 2,656 2,568 2,634 2,737 2,688 2,643 2,328 2,328 2,160 2,170 2,328 2,189 2,030

Interest earned on 

investment securities 305 274 251 227 189 171 164 147 128 122 113 60 70

Operating expenses 443 404 450 442 437 422 441 415 447 410 434 396 408

Provision for insurance 

losses -203 -512 -233 765 -332 -566 -627 -43 -930 -578 -317 -426 -6,787

All other income, 

net of expenses 3 1 4 2 3 3 2 5 12 2 3 6 -43

Unrealized gain/(loss) on 

available-for-sale 

securities** -481 -33 -12 7 -317 -167 110 412 -298 64 -34 231 24

Total fund balance change 2,242 2,918 2,660 1,766 2,457 2,794 2,790 2,520 2,485 2,526 2,293 2,516 8,460

Ending Fund Balance 92,747 90,506 87,588 84,928 83,162 80,704 77,910 75,120 72,600 70,115 67,589 65,296 62,780

Percent change from 

 four quarters earlier 11.53 12.14 12.42 13.06 14.55 15.10 15.27 15.05 15.64 29.08 32.37 33.55 33.03

Reserve Ratio (%) 1.30 1.28 1.24 1.20 1.20 1.18 1.17 1.13 1.11 1.09 1.07 1.03 1.01

Estimated Insured 

Deposits 7,151,060 7,094,564 7,042,522 7,075,496 6,910,931 6,813,252 6,672,294 6,659,996 6,519,715 6,406,678 6,333,620 6,333,948 6,195,554

Percent change from 

 four quarters earlier 3.47 4.13 5.55 6.24 6.00 6.35 5.35 5.15 5.23 4.61 3.91 3.70 3.29

Domestic Deposits 12,129,301 11,966,431 11,827,933 11,856,691 11,691,571 11,505,077 11,240,160 11,154,723 10,950,122 10,695,506 10,629,335 10,616,458 10,408,187

Percent change from 

 four quarters earlier 3.74 4.01 5.23 6.29 6.77 7.57 5.75 5.07 5.21 4.72 5.25 6.56 5.93

Assessment Base*** 15,000,399 14,833,722 14,703,046 14,620,904 14,563,389 14,383,059 14,193,993 13,994,467 13,833,119 13,662,699 13,589,502 13,533,471 13,345,986

Percent change from 

 four quarters earlier 3.00 3.13 3.59 4.48 5.28 5.27 4.45 3.41 3.65 4.19 5.33 5.78 4.61

Number of Institutions 

Reporting 5,679 5,747 5,796 5,865 5,922 5,989 6,067 6,131 6,191 6,279 6,357 6,428 6,518

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

12/14 $62,780 $6,195,554

3/15 65,296 6,333,948

6/15 67,589 6,333,620

9/15 70,115 6,406,678

12/15 72,600 6,519,715

3/16 75,120 6,659,996

6/16 77,910 6,672,294

9/16 80,704 6,813,252

12/16 83,162 6,910,931

3/17 84,928 7,075,496

6/17 87,588 7,042,522

9/17 90,506 7,094,564

12/17 92,747 7,151,060

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2017 2016 2015 2014 2013 2012 2011

Problem Institutions

Number of institutions 95 123 183 291 467 651 813

Total assets $13,939 $27,624 $46,780 $86,712 $152,687 $232,701 $319,432

Failed Institutions

Number of institutions 8 5 8 18 24 51 92

Total assets**** $5,082 $277 $6,706 $2,914 $6,044 $11,617 $34,923

* Quarterly financial statement results are unaudited.

** Includes unrealized postretirement benefit gain (loss).

*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

**** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

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

(dollar figures in millions)

December 31, 2017

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 4,918 $16,219,706 $11,150,570 $6,364,865

 FDIC-Supervised 3,266 2,540,344 1,995,967 1,369,032

 OCC-Supervised 874 10,977,727 7,284,900 3,982,408

 Federal Reserve-Supervised 778 2,701,636 1,869,703 1,013,425

FDIC-Insured Savings Institutions 752 1,196,556 930,685 745,079

 OCC-Supervised 344 768,862 605,826 492,292

 FDIC-Supervised 371 399,957 303,142 235,507

 Federal Reserve-Supervised 37 27,738 21,716 17,280

Total Commercial Banks and Savings Institutions 5,670 17,416,262 12,081,255 7,109,943

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 89,249 48,046 41,117

Total FDIC-Insured Institutions 5,679 17,505,511 12,129,301 7,151,060

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending September 30, 2017 (dollar figures in billions)

Annual Rate in Basis Points*

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base**

Percent of Total 

Assessment Base

1.50 - 3.00 3,419 59.49 $3,723.4 25.10

3.01 - 6.00 1,583 27.54 10,233.5 68.99

6.01 - 10.00 555 9.66 687.5 4.63

10.01 - 15.00 76 1.32 153.6 1.04

15.01 - 20.00 94 1.64 17.4 0.12

20.01 - 25.00 9 0.16 1.8 0.01

> 25.00 11 0.19 16.5 0.11

* Assessment rates do not incorporate temporary surcharges on large banks.

** Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as required by the Dodd-Frank Act.
2 0 1 8  •  Volume 1 2  • Number 1

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

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

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call Report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered 

community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), 

problem institutions, failed institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository insti1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

tutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions 

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports (TFR) submitted 

by all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

which is the sum of the individual numerator values divided by the 

sum of individual denominator values. All asset and liability figures 

used in calculating performance ratios represent average amounts for 

the period (beginning-of-period amount plus end-of-period amount 

plus any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

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

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

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

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup. When community 

bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions 

that were subsequently merged into current community banks.

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home 

state. In addition, institutions may relocate across state lines or 

change their charters, resulting in an inter-regional or inter-industry 

migration; institutions can move their home offices between regions, 

savings institutions can convert to commercial banks, or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Financial accounting pronouncements by the Financial Accounting 

Standards Board (FASB) can result in changes in an individual 

bank’s accounting policies and in the Call Reports they submit. Such 

accounting changes can affect the aggregate amounts presented in the 

QBP for the current period and the period-to-period comparability of 

such financial data. 

The current quarter’s Financial Institution Letter (FIL) and related 

Call Report supplemental instructions can provide additional explanation to the QBP reader beyond any material accounting changes 

discussed in the QBP analysis. 

https://www.fdic.gov/news/news/financial/2018/fil18001.html

https://www.fdic.gov/news/news/financial/2018/fil18001.pdf

https://www.fdic.gov/regulations/resources/call/call.html

Further information on changes in financial statement presentation, 

income recognition and disclosure is available from the FASB. http://

www.fasb.org/jsp/FASB/Page/LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of deposits in banks’ domestic offices with certain 

adjustments.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 
2 0 1 8  •  Volume 1 2  • Number 1

28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity Tier 1 capital ratio – ratio of common equity 

Tier 1 capital to risk-weighted assets. Common equity Tier 1 capital 

includes common stock instruments and related surplus, retained 

earnings, accumulated other comprehensive income (AOCI), and 

limited amounts of common equity Tier 1 minority interest, minus 

applicable regulatory adjustments and deductions. Items that are fully 

deducted from common equity Tier 1 capital include goodwill, other 

intangible assets (excluding mortgage servicing assets) and certain 

deferred tax assets; items that are subject to limits in common equity 

Tier 1 capital include mortgage servicing assets, eligible deferred tax 

assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative plus an additional amount for potential future credit exposure 

based on the notional amount, the remaining maturity and type of 

the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified future 

date, a specific quantity of an underlying variable or index at a 

specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, 

as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning 

March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Beginning September 30, 2009, insured deposits include deposits in 

accounts of $100,000 to $250,000 that are covered by a temporary 

increase in the FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and Consumer 

Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. 

Also, the Dodd-Frank Act amended the Federal Deposit Insurance 

Act to include noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing transaction accounts were fully insured, without 

limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on the 

balance sheet—including trading assets and liabilities, available-forsale securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 

of fair values. During periods of market stress, the fair values of some 

financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC-insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships, and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, 

less subsequent quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other loans 

secured by real estate.

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

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

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

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

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions that 

actually filed a financial report.

New reporters – insured institutions filing quarterly financial reports 

for the first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that filed a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.
2 0 1 8  •  Volume 1 2  • Number 1

30 FDIC QUARTERLY

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet 

items multiplied by risk-weights that range from zero to 200 percent. 

A conversion factor is used to assign a balance sheet equivalent 

amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity,” 

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 and debentures.” 

For regulatory capital purposes, the debentures are eligible for 

inclusion in an institution’s Tier 2 capital in accordance with their 

primary federal regulator’s capital standards. To participate in the 

SBLF Program, an institution with outstanding securities issued 

to the Treasury Department under the Capital Purchase Program 

(CPP) was required to refinance or repay in full the CPP securities 

at the time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP remain 

outstanding after the refinancing of the CPP stock through the SBLF 

Program unless the institution chooses to repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal income 

tax purposes. It is generally not subject to any federal income taxes at 

the corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings.

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the assets 

of the financial institution.

Unearned income and contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured 

by commercial real estate, and unused commitments to originate 

or purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.