QUARTERLY BANKING PROFILE Fourth Quarter 2015

FDIC QUARTERLY 1

Insured Institution Performance

Fourth Quarter Net Income of $40.8 Billion Is 11.9 Percent Higher Than a Year Ago

Lower Litigation Expenses Boost Year-Over-Year Earnings Growth

Quarterly Loan Losses Post First Year-Over-Year Increase in 22 Quarters

Full-Year Earnings of $163.7 Billion Are 7.5 Percent Above 2014 Results

Total Loan and Lease Balances Rose 6.4 Percent in 2015

Number of Banks on ‘Problem List’ Falls Below 200

Earnings and Profitability 

Register Year-Over-Year 

Improvement

Declines in expenses for litigation at a few large banks combined with moderate revenue 

growth to lift fourth-quarter net income at FDIC-insured institutions to $40.8 billion, an 

increase of $4.4 billion (11.9 percent) compared with fourth quarter 2014. The improving 

trend in earnings was widespread. More than half of all banks, or 56.6 percent, reported 

year-over-year increases in quarterly net income. Meanwhile, the percentage of banks 

reporting negative quarterly net income fell to 9.1 percent, from 9.9 percent in the year-ago 

year. The average return on assets (ROA) rose to 1.03 percent from 0.95 percent in fourth 

quarter 2014.

Margins Improve at 

Large Banks

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

totaled $174.3 billion in the fourth quarter, up $6.8 billion (4.1 percent) from a year earlier. 

More than two-thirds of all banks, or 68 percent, reported year-over-year growth in 

revenues. Noninterest income was $3 billion (5 percent) higher, as servicing income rose by 

$2.1 billion (178 percent), and gains on asset sales were $984 million (32 percent) higher. Net 

interest income increased by $3.9 billion (3.6 percent) compared with fourth quarter 2014. 

The average net interest margin (NIM) was 3.13 percent, slightly higher than the 3.12 percent 

average the year before. This is the first time in five years that the average quarterly NIM has 

not been lower than the year earlier. Most of the margin improvement occurred at larger 

banks, whose asset portfolios were better-positioned to benefit from the increase in shortterm interest rates late in the quarter. Only 45 percent of all banks reported year-over-year 

NIM improvement.

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-20

-10

0

10

20

30

40

50

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

-6.1

-12.6

2009 2010

2.1

-1.7

17.4 20.9 23.8 21.4

28.7

2011

28.5

35.2

25.3

34.8

2012

34.5 37.5 34.4

2013

40.3 38.2 36.1

39.8 37.3

2014

40.1 38.5 36.5

2015

39.8 43.0

40.4 40.8

Chart 1

Source: FDIC.

Percentage of All FDIC-Insured Institutions

Unprotable Institutions and 

Institutions With Increased Earnings

All FDIC-Insured Institutions

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Percentage of Institutions With 

Year-Over-Year Quarterly Income Growth

Percentage of Institutions With Quarterly Losses

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

2 FDIC QUARTERLY

Litigation Expenses Fall 

80 Percent

Total noninterest expenses were $2.7 billion (2.5 percent) lower than in the year-ago quarter. 

Itemized litigation expenses at a few of the largest banks totaled $616 million, a decline of 

$2.4 billion (80 percent) from fourth quarter 2014. Salary and employee benefit expenses 

were $1.2 billion (2.5 percent) higher, while expenses for premises and other fixed assets rose 

$313 million (2.7 percent).

Loss Provisions Rise to 

Three-Year High

Provisions for loan and lease losses increased year over year for a sixth consecutive quarter, 

rising by $3.8 billion (45.5 percent). The $12 billion in provisions that banks set aside in the 

fourth quarter is the largest quarterly total in three years. About 37 percent of banks 

reported higher quarterly provisions, while a similar proportion reported reductions in their 

loss provisions.

Full-Year Revenues Post 

Modest Growth

Full-year earnings totaled $163.7 billion, an increase of $11.4 billion (7.5 percent) over the 

total for 2014. The average ROA in 2015 was 1.04 percent, up from 1.01 percent in 2014. 

Almost two out of every three banks, or 63.6 percent, reported higher net income in 2015. 

Only 4.6 percent of banks reported negative net income for the year, down from 6.3 percent 

in 2014. Net operating revenue increased $14.9 billion (2.2 percent) in 2015, as net interest 

income rose by $9.4 billion (2.2 percent) and noninterest income increased by $5.5 billion 

(2.2 percent). Total noninterest expenses were $5.5 billion (1.3 percent) lower than in 2014, 

as a few large banks reported $6.6 billion (67.6 percent) less in itemized litigation expenses 

in 2015. Full-year loan-loss provisions registered an increase for the first time in six years, 

rising by $7.2 billion (24.1 percent). Full-year net charge-offs were $2.4 billion (6.1 percent) 

lower than in 2014.

Charge-Offs Rise in C&I, 

Consumer Portfolios

Net charge-offs totaled $10.6 billion in the fourth quarter, an increase of $690 million 

(7 percent) from a year earlier. This is the first year-over-year increase in quarterly chargeoffs in 22 quarters. Net charge-offs of loans to commercial and industrial (C&I) borrowers 

rose by $512 million (43.4 percent), as lower oil prices adversely affected some energy sector 

borrowers. Credit card charge-offs were $292 million (5.6 percent) higher, an increase largely 

in line with the growth in total credit card balances. Net charge-offs of auto loans increased 

by $105 million (15.9 percent). All other major loan categories had lower charge-offs than a 

year ago. The average net charge-off rate in the fourth quarter was 0.49 percent, almost 

unchanged from the 0.48 percent average in fourth quarter 2014.

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

Chart 3

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

All FDIC-Insured Institutions

Source: FDIC.

-35

-30

-25

-20

-15

-10

-5

0

5

10

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

-30.7

3.8

2011 2012 2013 2014 2015

$ Billions

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Provisions Exceed 

Charge-Offs for First Time 

in Six Years

Banks barely reduced their reserves for loan losses during the fourth quarter, as quarterly 

loan-loss provisions exceeded quarterly net charge-offs for the first time in six years. 

Loan-loss reserves declined by $586,000 (0.0005 percent) during the three months ended 

December 31. The average “coverage ratio” of reserves to noncurrent loans improved for a 

13th consecutive quarter as a result of the decline in noncurrent loan balances. The coverage 

ratio improved from 85.2 percent to 86 percent during the quarter. This is the highest level 

for the ratio since mid-year 2008. Banks with assets greater than $1 billion break out their 

loan-loss reserves for major loan categories. These institutions, which account for almost 

90 percent of total industry reserves, increased their reserves for non-real estate commercial 

loan losses by $2.3 billion (7.9 percent) during the quarter, and increased their reserves for 

credit card losses by $460 million (1.7 percent). They reduced their reserves for all other loan 

and lease losses by $2.3 billion (4.7 percent).

Lower Securities Values

Limit Growth in Equity

Equity capital registered a modest $4.4 million (0.2 percent) increase in the fourth quarter. 

Retained earnings contributed $13.5 billion to equity growth, matching the contribution of a 

year earlier, as banks increased their fourth-quarter dividends by $4.4 billion (19 percent). 

Accumulated other comprehensive income, which is included in equity capital, declined by 

$13.5 billion during the quarter, as higher interest rates caused a decline in unrealized 

securities gains. At the end of 2015, 98.9 percent of all insured institutions, representing 

99.8 percent of total industry assets, met or exceeded the requirements for the highest 

regulatory capital category as defined for Prompt Corrective Action purposes. 

Pace of Loan Growth 

Accelerates

Total assets increased by $167.8 billion (1.1 percent) during the quarter. Total loans and leases 

rose by $197.3 billion (2.3 percent), as credit card balances had a largely seasonal $41.7 billion 

(5.8 percent) increase, C&I loans increased by $39.6 billion (2.2 percent), and nonfarm 

nonresidential real estate loans rose by $31.6 billion (2.6 percent). In addition, loans to 

nondepository financial institutions increased $17.1 billion (6.5 percent), and multifamily 

residential real estate loans rose by $15 billion (4.6 percent). Loans to small businesses and 

farms increased $7.1 billion (1.1 percent). Investment securities holdings grew by $49.6 billion 

(1.5 percent). Banks reduced their balances with Federal Reserve banks by $42 billion 

(3.4 percent), with most of the decline occurring at a few of the largest banks. Assets in 

trading accounts fell by $22.1 billion (3.8 percent). 

Annual Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-20

0

20

40

60

80

100

120

140

160

180

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

81.5 87.4

104.7

120.6 122.2

133.8

145.2

99.9

4.5

-10.0

85.5

118.4

141.0

154.3 152.3

163.7

Securities and Other Gains/Losses, Net

Net Operating Income

Chart 5

Source: FDIC.

Percentage

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Noncurrent Loan Rate

Quarterly Net Charge-O Rate

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

4 FDIC QUARTERLY

Deposits Continue to Fund 

Asset Growth

Total deposits increased by $199.4 billion (1.7 percent) during the fourth quarter, as deposits 

in domestic offices rose by $255.9 billion (2.4 percent), and foreign office deposits declined 

by $56.5 billion (4.2 percent). Interest-bearing domestic deposits were up $215.1 billion 

(2.8 percent), while noninterest-bearing deposits rose by $40.7 billion (1.4 percent). Banks 

reduced their nondeposit liabilities by $35.9 billion (1.8 percent) during the quarter.

‘Problem List’ Falls Below 

200 Institutions

The number of FDIC-insured commercial banks and savings institutions reporting 

quarterly financial results declined from 6,270 to 6,182 in the fourth quarter. Mergers 

absorbed 81 institutions in the three months ended December 31, while two insured 

institutions failed. No new charters were added in the fourth quarter. Banks reported 

2,033,758 full-time equivalent employees in the quarter, down from 2,038,490 in the third 

quarter and 2,047,945 a year ago. The number of insured institutions on the FDIC’s 

“Problem List” declined from 203 to 183 during the quarter, and total assets of problem 

institutions fell from $51.1 billion to $46.8 billion. For all of 2015, there were 305 mergers of 

insured institutions, one new charter was added, and eight banks failed.

Author:

Ross Waldrop

Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

$ Billions

146

196

108

66 43

189

237

203

61

28

-6

-109

-210

-133 -107

-7

-126

67

24

134

-63

102

65

118

-37

74 70 91

38

178

51

149

53

185

95

197

-116-140

-14

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: FDIC.

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

balances back onto banks’ balance sheets in the 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. 

221*

Chart 7

Source: FDIC.

Assets ($ Billions) Number

Number and Assets of Banks on the “Problem List”

183

0

50

100

150

200

250

300

350

400

450

500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0

100

200

300

400

500

600

700

800

900

1,000

Problem Bank Assets

Number of Problem Banks

47

Chart 8
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2015 2014 2013 2012 2011 2010 2009

Return on assets (%) 1.04 1.01 1.07 1.00 0.88 0.65 -0.08

Return on equity (%) 9.31 9.01 9.54 8.90 7.79 5.85 -0.73

Core capital (leverage) ratio (%) 9.59 9.44 9.40 9.15 9.07 8.89 8.60

Noncurrent assets plus other real estate owned to assets (%) 0.96 1.20 1.63 2.20 2.61 3.11 3.37

Net charge-offs to loans (%) 0.44 0.49 0.69 1.10 1.55 2.55 2.52

Asset growth rate (%) 2.66 5.59 1.94 4.02 4.30 1.77 -5.45

Net interest margin (%) 3.07 3.14 3.26 3.42 3.60 3.76 3.49

Net operating income growth (%) 7.26 -0.72 12.82 17.76 43.60 1,594.34 -155.98

Number of institutions reporting 6,182 6,509 6,812 7,083 7,357 7,658 8,012

Commercial banks 5,338 5,607 5,847 6,072 6,275 6,519 6,829

Savings institutions 844 902 965 1,011 1,082 1,139 1,183

Percentage of unprofitable institutions (%) 4.61 6.27 8.16 11.00 16.23 22.15 30.84

Number of problem institutions 183 291 467 651 813 884 702

Assets of problem institutions (in billions) $47 $87 $153 $233 $319 $390 $403

Number of failed institutions 8 18 24 51 92 157 140

Number of assisted institutions 0 0 0 0 0 0 8

* 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

2015

3rd Quarter

2015

4th Quarter

2014

%Change 

14Q4-15Q4

Number of institutions reporting 6,182 6,270 6,509 -5.0

Total employees (full-time equivalent) 2,033,758 2,038,490 2,047,945 -0.7

CONDITION DATA

Total assets $15,967,923 $15,800,124 $15,553,756 2.7

Loans secured by real estate 4,375,085 4,306,629 4,170,731 4.9

 1-4 Family residential mortgages 1,904,478 1,887,018 1,842,122 3.4

 Nonfarm nonresidential 1,231,207 1,199,604 1,150,164 7.0

 Construction and development 274,924 266,093 238,385 15.3

 Home equity lines 465,108 471,540 492,324 -5.5

Commercial & industrial loans 1,841,654 1,802,086 1,714,800 7.4

Loans to individuals 1,497,960 1,453,720 1,418,259 5.6

 Credit cards 756,465 714,790 718,469 5.3

Farm loans 81,485 79,161 78,006 4.5

Other loans & leases 1,045,463 1,002,646 929,695 12.5

Less: Unearned income 2,079 1,942 1,993 4.3

Total loans & leases 8,839,568 8,642,299 8,309,498 6.4

Less: Reserve for losses 118,555 118,556 122,623 -3.3

Net loans and leases 8,721,013 8,523,743 8,186,876 6.5

Securities 3,353,552 3,303,909 3,218,960 4.2

Other real estate owned 14,703 16,116 21,980 -33.1

Goodwill and other intangibles 360,503 356,954 360,175 0.1

All other assets 3,518,151 3,599,401 3,765,765 -6.6

Total liabilities and capital 15,967,923 15,800,124 15,553,756 2.7

Deposits 12,189,838 11,990,430 11,764,005 3.6

 Domestic office deposits 10,904,965 10,649,097 10,368,059 5.2

 Foreign office deposits 1,284,872 1,341,332 1,395,946 -8.0

Other borrowed funds 1,385,683 1,382,905 1,387,789 -0.2

Subordinated debt 91,597 92,163 98,083 -6.6

All other liabilities 499,426 537,540 562,941 -11.3

Total equity capital (includes minority interests) 1,801,379 1,797,086 1,740,935 3.5

 Bank equity capital 1,794,800 1,790,366 1,733,559 3.5

Loans and leases 30-89 days past due 64,315 61,160 69,976 -8.1

Noncurrent loans and leases 137,833 139,164 162,649 -15.3

Restructured loans and leases 72,167 74,146 84,032 -14.1

Mortgage-backed securities 1,871,656 1,818,692 1,728,605 8.3

Earning assets 14,365,703 14,169,619 13,882,581 3.5

FHLB Advances 495,001 455,475 464,279 6.6

Unused loan commitments 6,915,503 6,803,001 6,478,315 6.7

Trust assets 17,303,920 16,865,323 18,336,059 -5.6

Assets securitized and sold 821,619 846,620 972,452 -15.5

Notional amount of derivatives 182,006,726 194,569,167 221,964,337 -18.0

INCOME DATA

Full Year 

2015

Full Year 

2014 %Change

4th Quarter 

2015

4th Quarter 

2014

%Change 

14Q4-15Q4

Total interest income $478,539 $469,781 1.9 $123,730 $119,032 4.0

Total interest expense 46,469 47,128 -1.4 12,398 11,551 7.3

Net interest income 432,069 422,653 2.2 111,333 107,481 3.6

Provision for loan and lease losses 36,972 29,798 24.1 12,039 8,275 45.5

Total noninterest income 253,387 247,855 2.2 62,994 60,003 5.0

Total noninterest expense 417,296 422,787 -1.3 105,782 108,500 -2.5

Securities gains (losses) 3,636 3,202 13.5 852 862 -1.2

Applicable income taxes 70,652 68,177 3.6 16,394 14,937 9.8

Extraordinary gains, net -10 -55 81.5 -36 9 N/M

Total net income (includes minority interests) 164,162 152,893 7.4 40,926 36,644 11.7

 Bank net income 163,675 152,263 7.5 40,848 36,496 11.9

Net charge-offs 37,128 39,557 -6.1 10,607 9,917 7.0

Cash dividends 104,520 90,196 15.9 27,315 22,960 19.0

Retained earnings 59,155 62,067 -4.7 13,532 13,535 0.0

Net operating income 161,602 150,668 7.3 40,338 36,003 12.0

N/M - Not Meaningful
2 0 1 6  •Volume 1 0  • Number 1

6 FDIC QUARTERLY

TABLE III-A. Full Year 2015, 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 6,182 14 4 1,479 3,091 501 65 332 629 67

Commercial banks 5,338 12 4 1,461 2,780 120 49 298 556 58

Savings institutions 844 2 0 18 311 381 16 34 73 9

Total assets (in billions) $15,967.9 $549.1 $3,774.6 $277.6 $5,893.0 $385.7 $187.3 $57.5 $112.8 $4,730.3

Commercial banks 14,893.4 433.4 3,774.6 272.4 5,496.5 144.5 94.9 51.3 97.6 4,528.2

Savings institutions 1,074.5 115.7 0.0 5.2 396.5 241.3 92.4 6.1 15.2 202.1

Total deposits (in billions) 12,189.8 321.8 2,697.2 230.4 4,582.5 305.8 157.5 46.0 94.8 3,753.8

Commercial banks 11,349.4 235.6 2,697.2 227.2 4,293.3 120.4 79.9 41.8 82.4 3,571.5

Savings institutions 840.5 86.2 0.0 3.2 289.1 185.4 77.6 4.2 12.4 182.3

Bank net income (in millions) 163,675 14,490 33,961 2,628 53,774 3,116 1,881 1,523 1,012 51,290

Commercial banks 152,133 10,535 33,961 2,523 50,900 1,694 1,144 684 922 49,770

Savings institutions 11,543 3,955 0 105 2,874 1,422 737 839 90 1,520

Performance Ratios (%)

Yield on earning assets 3.40 10.50 2.58 4.10 3.57 3.24 4.07 3.03 3.87 3.00

Cost of funding earning assets 0.33 0.93 0.30 0.45 0.39 0.50 0.44 0.34 0.42 0.18

Net interest margin 3.07 9.57 2.28 3.64 3.19 2.74 3.63 2.69 3.45 2.81

Noninterest income to assets 1.62 4.47 1.81 0.66 1.26 0.86 1.36 6.92 0.99 1.65

Noninterest expense to assets 2.66 6.44 2.43 2.77 2.70 2.24 2.71 5.60 3.05 2.38

Loan and lease loss provision to assets 0.24 2.46 0.17 0.11 0.14 0.02 0.51 0.03 0.07 0.18

Net operating income to assets 1.03 2.84 0.86 0.95 0.94 0.80 1.04 2.64 0.88 1.09

Pretax return on assets 1.49 4.42 1.21 1.18 1.32 1.22 1.65 3.79 1.10 1.65

Return on assets 1.04 2.84 0.87 0.97 0.95 0.83 1.04 2.68 0.91 1.12

Return on equity 9.31 19.11 8.93 8.44 8.02 7.22 10.30 17.85 7.63 9.90

Net charge-offs to loans and leases 0.44 2.79 0.59 0.10 0.19 0.13 0.62 0.20 0.20 0.41

Loan and lease loss provision to 

net charge-offs 99.58 113.69 83.18 178.05 110.35 22.98 112.79 60.32 68.48 88.88

Efficiency ratio 59.91 47.61 63.33 62.29 64.33 64.80 54.78 59.45 72.55 55.67

% of unprofitable institutions 4.61 0.00 0.00 2.03 4.79 8.78 6.15 7.83 4.93 2.99

% of institutions with earnings gains 63.60 57.14 100.00 62.75 68.42 54.09 66.15 47.29 57.55 65.67

Condition Ratios (%)

Earning assets to total assets 89.97 92.50 87.49 92.81 90.51 94.66 97.20 91.71 92.49 90.06

Loss allowance to:

Loans and leases 1.34 3.20 1.59 1.38 1.17 0.96 1.14 1.68 1.38 1.20

Noncurrent loans and leases 86.01 274.03 87.52 172.13 104.03 36.46 89.69 114.86 95.15 55.14

Noncurrent assets plus

other real estate owned to assets 0.96 0.90 0.70 0.68 0.93 1.92 0.97 0.61 1.19 1.16

Equity capital ratio 11.24 14.29 10.13 11.32 11.77 11.36 10.12 15.02 11.78 11.08

Core capital (leverage) ratio 9.59 12.30 8.82 10.66 10.06 11.28 10.28 14.35 11.53 8.98

Common equity tier 1 capital ratio 12.67 11.87 13.11 14.33 12.17 21.83 13.67 32.11 19.77 12.20

Tier 1 risk-based capital ratio 12.76 11.98 13.14 14.34 12.35 21.88 13.88 32.12 19.81 12.21

Total risk-based capital ratio 14.21 14.20 14.48 15.44 13.84 22.72 14.68 33.04 20.94 13.67

Net loans and leases to deposits 71.54 127.74 50.27 78.65 86.27 78.85 85.76 33.83 64.93 63.04

Net loans to total assets 54.62 74.87 35.92 65.27 67.08 62.52 72.10 27.09 54.60 50.03

Domestic deposits to total assets 68.29 57.73 46.52 82.99 76.75 79.27 84.06 80.1 84.08 73.45

Structural Changes

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

Institutions absorbed by mergers 305 0 1 48 219 12 2 1 15 7

Failed institutions 8 0 0 0 7 0 0 0 1 0

PRIOR FULL YEARS

(The way it was...)

Number of institutions 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

 2010 7,658 22 4 1,559 4,085 718 72 314 815 69

Total assets (in billions) 2014 $15,553.8 $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

 2010 13,318.9 705.4 3,038.1 199.8 4,094.5 789.0 114.3 42.9 132.3 4,202.6

Return on assets (%) 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

 2010 0.65 1.82 0.72 0.98 0.20 0.68 1.28 1.48 0.70 0.80

Net charge-offs to loans & leases (%) 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

 2010 2.55 10.83 2.29 0.59 1.90 1.14 2.37 0.64 0.56 1.87

Noncurrent assets plus 

OREO to assets (%) 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

 2010 3.11 1.90 2.38 1.62 3.71 2.88 1.22 0.81 1.67 3.49

Equity capital ratio (%) 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

 2010 11.15 14.96 8.93 10.86 11.40 10.05 11.00 16.31 11.01 12.04

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

FDIC QUARTERLY 7

TABLE III-A. Full Year 2015, 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

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 6,182 1,688 3,792 595 107 762 762 1,337 1,543 1,307 471

Commercial banks 5,338 1,483 3,279 485 91 394 689 1,117 1,482 1,226 430

Savings institutions 844 205 513 110 16 368 73 220 61 81 41

Total assets (in billions) $15,967.9 $99.2 $1,199.9 $1,682.6 $12,986.3 $3,074.2 $3,372.6 $3,503.7 $3,444.0 $943.2 $1,630.2

Commercial banks 14,893.4 87.6 1,014.8 1,391.1 12,400.0 2,655.0 3,293.4 3,392.0 3,389.1 832.0 1,332.0

Savings institutions 1,074.5 11.6 185.1 291.5 586.2 419.2 79.2 111.7 54.9 111.2 298.3

Total deposits (in billions) 12,189.8 83.4 997.4 1,331.0 9,778.0 2,305.4 2,635.1 2,559.6 2,609.1 779.0 1,301.5

Commercial banks 11,349.4 74.3 851.0 1,111.3 9,312.7 1,994.0 2,571.8 2,479.4 2,565.1 687.8 1,051.4

Savings institutions 840.5 9.1 146.4 219.7 465.3 311.4 63.3 80.3 44.1 91.2 250.2

Bank net income (in millions) 163,675 831 12,481 17,715 132,647 25,923 33,897 34,194 39,619 10,008 20,034

Commercial banks 152,133 749 10,569 15,288 125,527 23,599 33,506 32,735 39,217 8,718 14,358

Savings institutions 11,543 83 1,912 2,427 7,120 2,324 392 1,459 402 1,290 5,677

Performance Ratios (%)

Yield on earning assets 3.40 4.08 4.13 4.00 3.25 3.41 3.57 2.65 3.61 3.94 3.98

Cost of funding earning assets 0.33 0.44 0.46 0.40 0.31 0.42 0.28 0.26 0.35 0.31 0.41

Net interest margin 3.07 3.64 3.67 3.60 2.94 2.99 3.29 2.40 3.26 3.63 3.57

Noninterest income to assets 1.62 1.14 1.19 1.21 1.71 1.44 1.53 1.87 1.46 1.38 2.04

Noninterest expense to assets 2.66 3.44 3.18 2.87 2.58 2.61 2.71 2.60 2.48 3.10 2.93

Loan and lease loss provision to assets 0.24 0.11 0.11 0.18 0.26 0.28 0.28 0.10 0.24 0.19 0.39

Net operating income to assets 1.03 0.82 1.05 1.09 1.02 0.86 1.00 0.96 1.14 1.09 1.31

Pretax return on assets 1.49 0.97 1.34 1.50 1.51 1.22 1.49 1.33 1.68 1.43 2.06

Return on assets 1.04 0.84 1.07 1.11 1.04 0.87 1.03 0.96 1.16 1.10 1.31

Return on equity 9.31 6.76 9.49 9.37 9.30 7.38 8.33 9.47 11.31 9.94 10.65

Net charge-offs to loans and leases 0.44 0.19 0.15 0.20 0.51 0.48 0.49 0.27 0.52 0.22 0.52

Loan and lease loss provision to 

net charge-offs 99.58 100.50 106.06 134.66 97.07 110.13 96.43 76.65 88.19 135.11 122.40

Efficiency ratio 59.91 76.24 68.89 62.62 58.56 62.70 60.14 64.37 55.36 65.36 53.01

% of unprofitable institutions 4.61 9.48 3.06 1.01 2.80 6.30 8.40 5.01 2.46 3.14 5.73

% of institutions with earnings gains 63.60 56.46 65.06 74.96 61.68 61.42 64.17 64.92 64.74 59.98 68.79

Condition Ratios (%)

Earning assets to total assets 89.97 91.72 92.75 92.16 89.41 89.67 89.09 89.10 89.79 91.91 93.45

Loss allowance to:

Loans and leases 1.34 1.46 1.34 1.20 1.36 1.26 1.37 1.37 1.42 1.27 1.28

Noncurrent loans and leases 86.01 108.40 121.88 114.61 80.14 101.32 78.25 80.35 69.46 100.20 168.60

Noncurrent assets plus

other real estate owned to assets 0.96 1.25 1.11 0.92 0.95 0.75 1.15 0.94 1.18 1.03 0.53

Equity capital ratio 11.24 12.56 11.25 11.70 11.17 11.78 12.22 10.50 10.22 11.06 12.04

Core capital (leverage) ratio 9.59 12.30 10.93 10.48 9.33 9.77 9.61 9.19 9.01 9.97 11.11

Common equity tier 1 capital ratio 12.67 19.81 15.38 13.52 12.27 12.63 12.38 12.72 11.85 13.13 14.78

Tier 1 risk-based capital ratio 12.76 19.85 15.44 13.57 12.37 12.81 12.48 12.77 11.85 13.25 14.94

Total risk-based capital ratio 14.21 20.93 16.56 14.59 13.91 14.32 13.99 13.86 13.78 14.39 16.05

Net loans and leases to deposits 71.54 68.66 78.79 86.33 68.82 71.67 74.39 67.28 69.05 76.65 75.88

Net loans to total assets 54.62 57.73 65.49 68.29 51.82 53.75 58.13 49.15 52.31 63.30 60.58

Domestic deposits to total assets 68.29 84.08 83.12 78.83 65.44 66.69 75.45 63.8 58.29 82.46 79.11

Structural Changes

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

Institutions absorbed by mergers 305 101 172 26 6 39 32 62 58 74 40

Failed institutions 8 5 2 1 0 1 3 2 0 1 1

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2014 6,509 1,871 3,957 574 107 807 812 1,406 1,599 1,372 513

 2012 7,083 2,204 4,217 555 107 873 904 1,515 1,716 1,490 585

 2010 7,658 2,625 4,367 559 107 949 1,022 1,602 1,825 1,601 659

Total assets (in billions) 2014 $15,553.8 $109.7 $1,232.1 $1,576.4 $12,635.5 $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 11,592.6 2,896.1 3,056.1 3,298.1 3,068.7 870.4 1,261.0

 2010 13,318.9 148.6 1,291.7 1,429.6 10,449.0 2,694.8 2,929.7 2,950.1 1,686.6 789.0 2,268.8

Return on assets (%) 2014 1.01 0.79 1.00 1.09 1.00 0.83 1.00 0.88 1.07 1.14 1.49

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

 2010 0.65 0.27 0.26 0.18 0.76 0.76 0.34 0.60 0.84 0.68 0.81

Net charge-offs to loans & leases (%) 2014 0.49 0.23 0.23 0.27 0.56 0.55 0.54 0.36 0.60 0.23 0.47

 2012 1.10 0.43 0.64 0.73 1.22 1.24 1.19 0.85 1.37 0.56 0.84

 2010 2.55 0.80 1.12 1.80 2.93 3.57 2.43 2.03 2.88 1.27 2.29

Noncurrent assets plus 

OREO to assets (%) 2014 1.20 1.45 1.38 1.41 1.15 0.89 1.55 1.11 1.46 1.18 0.65

 2012 2.20 2.10 2.37 2.46 2.15 1.46 3.23 2.00 2.45 2.05 1.38

 2010 3.11 2.39 3.44 3.57 3.01 2.14 3.93 2.98 4.24 3.17 2.51

Equity capital ratio (%) 2014 11.15 12.28 11.20 11.90 11.04 11.81 12.45 9.80 10.20 11.06 12.47

 2012 11.17 12.00 10.90 11.77 11.11 12.18 12.03 9.10 10.86 10.70 13.24

 2010 11.15 11.70 10.15 11.18 11.26 12.58 11.59 8.71 11.33 10.54 12.11

* See Table V-A (page 11) for explanations.
2 0 1 6  •Volume 1 0  • Number 1

8 FDIC QUARTERLY

TABLE IV-A. Fourth Quarter 2015, 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 6,182 14 4 1,479 3,091 501 65 332 629 67

Commercial banks 5,338 12 4 1,461 2,780 120 49 298 556 58

Savings institutions 844 2 0 18 311 381 16 34 73 9

Total assets (in billions) $15,967.9 $549.1 $3,774.6 $277.6 $5,893.0 $385.7 $187.3 $57.5 $112.8 $4,730.3

Commercial banks 14,893.4 433.4 3,774.6 272.4 5,496.5 144.5 94.9 51.3 97.6 4,528.2

Savings institutions 1,074.5 115.7 0.0 5.2 396.5 241.3 92.4 6.1 15.2 202.1

Total deposits (in billions) 12,189.8 321.8 2,697.2 230.4 4,582.5 305.8 157.5 46.0 94.8 3,753.8

Commercial banks 11,349.4 235.6 2,697.2 227.2 4,293.3 120.4 79.9 41.8 82.4 3,571.5

Savings institutions 840.5 86.2 0.0 3.2 289.1 185.4 77.6 4.2 12.4 182.3

Bank net income (in millions) 40,848 3,557 7,829 774 13,226 845 384 486 606 13,140

Commercial banks 38,142 2,423 7,829 749 12,939 441 297 182 584 12,698

Savings institutions 2,706 1,134 0 25 287 405 87 305 22 441

Performance Ratios (annualized, %)

Yield on earning assets 3.48 10.70 2.72 4.16 3.61 3.28 4.12 3.01 3.86 3.00

Cost of funding earning assets 0.35 0.96 0.32 0.46 0.43 0.47 0.44 0.34 0.41 0.17

Net interest margin 3.13 9.74 2.40 3.70 3.17 2.81 3.69 2.67 3.45 2.83

Noninterest income to assets 1.59 4.47 1.74 0.67 1.26 0.94 1.42 8.47 0.96 1.59

Noninterest expense to assets 2.67 6.60 2.44 2.66 2.71 2.28 2.97 6.00 2.18 2.34

Loan and lease loss provision to assets 0.30 2.75 0.27 0.13 0.19 0.03 0.66 0.03 0.06 0.22

Net operating income to assets 1.02 2.66 0.82 1.11 0.90 0.87 0.83 3.37 2.15 1.09

Pretax return on assets 1.44 4.12 1.13 1.34 1.23 1.31 1.34 4.94 1.94 1.63

Return on assets 1.03 2.66 0.82 1.13 0.91 0.89 0.83 3.41 2.17 1.12

Return on equity 9.13 18.30 8.18 9.87 7.68 7.79 8.16 22.47 18.13 10.03

Net charge-offs to loans and leases 0.49 3.01 0.68 0.16 0.22 0.10 0.70 0.32 0.22 0.44

Loan and lease loss provision to 

net charge-offs 113.50 118.28 109.18 122.69 129.43 55.92 129.05 38.54 49.16 99.03

Efficiency ratio 59.85 48.33 62.98 64.12 64.88 62.93 57.69 54.77 52.14 55.51

% of unprofitable institutions 9.09 0.00 0.00 7.64 7.57 14.97 12.31 15.36 12.40 4.48

% of institutions with earnings gains 56.55 57.14 100.00 55.85 59.53 49.90 55.38 49.70 52.15 58.21

Structural Changes

New reporters 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers 81 0 0 17 53 6 0 0 1 4

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

PRIOR FOURTH QUARTERS

(The way it was...)

Return on assets (%) 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

 2010 0.64 2.78 0.60 0.84 0.08 0.60 1.46 1.20 0.62 0.84

Net charge-offs to loans & leases (%) 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

 2010 2.30 7.68 2.25 0.74 2.02 1.06 2.33 0.75 0.75 1.60

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

FDIC QUARTERLY 9

TABLE IV-A. Fourth Quarter 2015, 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

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 6,182 1,688 3,792 595 107 762 762 1,337 1,543 1,307 471

Commercial banks 5,338 1,483 3,279 485 91 394 689 1,117 1,482 1,226 430

Savings institutions 844 205 513 110 16 368 73 220 61 81 41

Total assets (in billions) $15,967.9 $99.2 $1,199.9 $1,682.6 $12,986.3 $3,074.2 $3,372.6 $3,503.7 $3,444.0 $943.2 $1,630.2

Commercial banks 14,893.4 87.6 1,014.8 1,391.1 12,400.0 2,655.0 3,293.4 3,392.0 3,389.1 832.0 1,332.0

Savings institutions 1,074.5 11.6 185.1 291.5 586.2 419.2 79.2 111.7 54.9 111.2 298.3

Total deposits (in billions) 12,189.8 83.4 997.4 1,331.0 9,778.0 2,305.4 2,635.1 2,559.6 2,609.1 779.0 1,301.5

Commercial banks 11,349.4 74.3 851.0 1,111.3 9,312.7 1,994.0 2,571.8 2,479.4 2,565.1 687.8 1,051.4

Savings institutions 840.5 9.1 146.4 219.7 465.3 311.4 63.3 80.3 44.1 91.2 250.2

Bank net income (in millions) 40,848 192 3,596 4,339 32,721 5,837 8,538 8,947 9,375 2,367 5,784

Commercial banks 38,142 161 3,035 3,791 31,154 5,676 8,365 8,589 9,268 2,143 4,101

Savings institutions 2,706 31 560 548 1,567 161 173 359 107 224 1,683

Performance Ratios (annualized, %)

Yield on earning assets 3.48 4.14 4.15 4.04 3.33 3.48 3.62 2.79 3.63 3.97 4.01

Cost of funding earning assets 0.35 0.43 0.46 0.40 0.33 0.51 0.28 0.27 0.35 0.31 0.38

Net interest margin 3.13 3.71 3.70 3.64 3.00 2.96 3.35 2.52 3.28 3.66 3.63

Noninterest income to assets 1.59 1.22 1.24 1.19 1.67 1.39 1.47 1.90 1.39 1.35 2.09

Noninterest expense to assets 2.67 3.62 3.15 2.89 2.59 2.66 2.69 2.63 2.49 3.15 2.84

Loan and lease loss provision to assets 0.30 0.17 0.13 0.25 0.33 0.35 0.35 0.12 0.32 0.28 0.51

Net operating income to assets 1.02 0.76 1.19 1.04 1.00 0.77 0.99 1.01 1.07 1.01 1.44

Pretax return on assets 1.44 0.86 1.41 1.42 1.46 1.03 1.46 1.41 1.55 1.28 2.15

Return on assets 1.03 0.78 1.21 1.05 1.01 0.77 1.02 1.02 1.09 1.02 1.45

Return on equity 9.13 6.15 10.70 8.89 9.05 6.49 8.28 9.77 10.63 9.13 11.92

Net charge-offs to loans and leases 0.49 0.29 0.21 0.26 0.56 0.53 0.54 0.27 0.59 0.28 0.62

Loan and lease loss provision to 

net charge-offs 113.50 98.64 89.47 137.68 112.72 121.53 108.25 90.63 103.39 158.85 134.17

Efficiency ratio 59.85 78.10 67.26 62.73 58.59 64.83 59.47 62.91 56.26 66.45 51.25

% of unprofitable institutions 9.09 18.31 6.30 1.85 2.80 10.76 14.17 8.75 7.52 7.73 8.07

% of institutions with earnings gains 56.55 51.66 56.91 67.90 57.94 56.69 57.74 56.77 55.15 56.01 59.87

Structural Changes

New reporters 0 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers 81 23 46 9 3 17 7 13 16 14 14

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

PRIOR FOURTH QUARTERS

(The way it was...)

Return on assets (%) 2014 0.95 0.67 1.01 1.08 0.93 0.79 1.01 0.84 0.86 1.11 1.46

 2012 0.96 0.51 0.70 1.00 0.99 0.92 0.82 0.88 1.01 0.91 1.55

 2010 0.64 -0.15 -0.09 -0.07 0.84 0.87 0.26 0.51 0.98 0.51 0.82

Net charge-offs to loans & leases (%) 2014 0.48 0.29 0.32 0.25 0.54 0.51 0.50 0.38 0.61 0.28 0.44

 2012 0.97 0.54 0.74 0.72 1.04 1.09 1.17 0.65 1.17 0.61 0.71

 2010 2.30 1.09 1.43 2.03 2.50 2.97 2.18 1.97 2.53 1.44 2.13

* See Table V-A (page 11) for explanations.
2 0 1 6  •Volume 1 0  • Number 1

10 FDIC QUARTERLY

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

Asset Concentration Groups*

December 31, 2015 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 0.84 0.18 1.19 0.66 0.56 0.84 0.68 1.38 1.29 1.32

Construction and development 0.41 0.00 1.43 0.73 0.35 0.55 0.55 1.00 1.08 0.37

Nonfarm nonresidential 0.30 0.00 0.25 0.51 0.28 0.27 1.16 0.81 0.89 0.27

Multifamily residential real estate 0.13 0.00 0.12 0.13 0.13 0.22 2.26 0.21 0.79 0.09

Home equity loans 0.67 0.00 1.05 0.43 0.50 0.69 0.47 0.52 0.61 0.75

Other 1-4 family residential 1.47 0.19 1.72 1.24 1.07 0.94 0.67 2.05 1.66 2.12

Commercial and industrial loans 0.25 0.82 0.21 0.87 0.24 0.52 0.07 1.42 0.96 0.22

Loans to individuals 1.34 1.26 1.31 1.50 1.18 0.95 0.81 2.17 2.17 1.65

Credit card loans 1.17 1.25 1.13 1.16 1.14 2.67 0.73 2.30 1.23 1.06

Other loans to individuals 1.51 1.29 1.62 1.52 1.19 0.85 0.84 2.15 2.19 2.01

All other loans and leases (including farm) 0.24 0.42 0.33 0.46 0.24 0.19 0.17 0.85 0.44 0.15

Total loans and leases 0.73 1.22 0.81 0.67 0.51 0.80 0.72 1.44 1.28 0.94

Percent of Loans Noncurrent**

All real estate loans 2.48 0.55 3.79 0.90 1.43 2.89 3.36 1.66 1.64 4.36

Construction and development 1.12 0.00 0.70 1.12 1.13 1.35 7.46 2.51 1.85 0.99

Nonfarm nonresidential 0.86 0.00 0.71 1.12 0.81 1.46 7.77 1.74 1.87 0.86

Multifamily residential real estate 0.28 0.00 0.18 0.69 0.29 0.49 1.25 0.91 0.92 0.23

Home equity loans 2.67 0.00 4.42 0.63 1.37 2.02 2.54 0.82 0.58 3.83

Other 1-4 family residential 4.22 0.59 5.51 1.02 2.54 3.23 3.07 1.58 1.70 6.65

Commercial and industrial loans 0.78 0.69 0.77 1.14 0.80 0.82 0.22 1.27 1.30 0.72

Loans to individuals 0.85 1.21 1.02 0.56 0.71 0.42 0.57 0.88 0.77 0.59

Credit card loans 1.15 1.24 1.08 0.31 1.07 1.38 1.16 1.14 0.38 1.01

Other loans to individuals 0.54 0.59 0.91 0.58 0.65 0.36 0.40 0.84 0.79 0.34

All other loans and leases (including farm) 0.21 0.11 0.18 0.44 0.25 0.12 3.07 0.41 0.41 0.13

Total loans and leases 1.56 1.17 1.81 0.80 1.12 2.64 1.27 1.46 1.45 2.18

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.13 0.19 0.24 0.03 0.09 0.10 0.23 0.08 0.13 0.17

Construction and development -0.05 0.00 -0.03 -0.18 -0.06 0.03 0.36 -0.08 0.13 -0.03

Nonfarm nonresidential 0.07 0.00 0.00 0.05 0.08 0.03 0.59 0.06 0.16 0.04

Multifamily residential real estate 0.00 0.00 0.00 0.04 0.00 0.02 0.77 0.19 0.10 -0.02

Home equity loans 0.39 0.00 0.43 0.09 0.25 0.25 0.52 0.11 0.08 0.57

Other 1-4 family residential 0.15 0.20 0.29 0.08 0.12 0.10 0.10 0.10 0.13 0.13

Commercial and industrial loans 0.26 2.03 0.26 0.28 0.22 0.22 0.06 0.31 0.30 0.22

Loans to individuals 1.80 2.87 2.29 0.40 0.87 1.04 0.82 0.61 0.54 1.52

Credit card loans 2.92 2.94 3.09 1.12 3.33 5.73 2.22 1.50 0.93 2.70

Other loans to individuals 0.69 1.41 0.97 0.35 0.52 0.52 0.42 0.45 0.53 0.81

All other loans and leases (including farm) 0.12 0.04 0.11 0.12 0.17 0.10 0.02 0.69 0.44 0.08

Total loans and leases 0.44 2.79 0.59 0.10 0.19 0.13 0.62 0.20 0.20 0.41

Loans Outstanding (in billions)

All real estate loans $4,375.1 $0.2 $517.4 $110.3 $2,396.6 $219.3 $29.7 $11.4 $47.6 $1,042.6

Construction and development 274.9 0.0 9.0 6.4 207.7 5.0 0.4 0.8 2.9 42.8

Nonfarm nonresidential 1,231.2 0.0 37.3 30.0 896.5 18.2 2.1 3.9 11.4 231.7

Multifamily residential real estate 344.1 0.0 62.4 3.5 231.3 6.4 0.3 0.3 1.3 38.6

Home equity loans 465.1 0.0 67.8 2.4 219.3 10.9 5.7 0.4 2.0 156.6

Other 1-4 family residential 1,904.5 0.2 289.8 27.8 803.2 178.1 21.0 5.4 26.4 552.6

Commercial and industrial loans 1,841.7 34.7 284.9 21.7 965.6 6.6 7.3 1.9 5.4 513.7

Loans to individuals 1,498.0 389.6 250.7 6.6 318.8 6.2 93.7 1.6 5.2 425.6

Credit card loans 756.5 372.8 158.3 0.5 41.5 0.4 20.6 0.2 0.1 162.0

Other loans to individuals 741.5 16.7 92.4 6.1 277.3 5.8 73.1 1.4 5.1 263.6

All other loans and leases (including farm) 1,126.9 0.3 325.4 45.2 320.0 11.5 6.0 0.9 4.3 413.4

Total loans and leases (plus unearned income) 8,841.6 424.7 1,378.3 183.8 4,001.1 243.5 136.7 15.8 62.5 2,395.2

Memo: Other Real Estate Owned (in millions)

All other real estate owned 14,703.4 0.1 801.3 398.2 9,573.5 909.6 89.2 116.2 433.8 2,381.6

Construction and development 4,544.9 0.0 2.3 150.4 3,670.8 104.3 9.0 49.3 156.9 402.0

Nonfarm nonresidential 3,511.3 0.0 54.0 124.3 2,695.3 44.0 20.1 34.1 126.0 413.5

Multifamily residential real estate 244.9 0.0 2.0 15.1 203.1 6.4 0.9 1.9 7.4 7.9

1-4 family residential 4,664.3 0.1 379.0 78.4 2,682.5 218.9 54.3 25.9 134.8 1,090.3

Farmland 226.2 0.0 0.0 30.0 172.7 1.4 0.0 4.7 8.5 8.8

GNMA properties 1,488.8 0.0 343.0 0.0 148.9 534.6 4.9 0.2 0.1 457.0

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

December 31, 2015 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.84 1.25 0.68 0.44 0.99 0.61 1.05 0.89 1.12 0.80 0.35

Construction and development 0.41 0.81 0.49 0.31 0.42 0.50 0.38 0.49 0.36 0.37 0.34

Nonfarm nonresidential 0.30 0.95 0.44 0.26 0.25 0.39 0.27 0.32 0.24 0.35 0.17

Multifamily residential real estate 0.13 0.37 0.30 0.14 0.10 0.15 0.09 0.16 0.06 0.20 0.08

Home equity loans 0.67 0.65 0.49 0.45 0.71 0.47 0.80 0.77 0.71 0.51 0.32

Other 1-4 family residential 1.47 1.81 1.12 0.78 1.66 1.00 1.82 1.41 1.91 1.68 0.60

Commercial and industrial loans 0.25 1.14 0.58 0.35 0.22 0.25 0.20 0.29 0.25 0.36 0.25

Loans to individuals 1.34 1.94 1.64 1.34 1.33 1.08 1.81 1.22 1.31 1.08 1.13

Credit card loans 1.17 3.99 1.89 1.50 1.16 0.94 1.32 0.95 1.19 0.72 1.46

Other loans to individuals 1.51 1.91 1.62 1.28 1.52 1.33 2.35 1.31 1.47 1.26 0.82

All other loans and leases (including farm) 0.24 0.48 0.40 0.30 0.23 0.19 0.15 0.51 0.12 0.35 0.18

Total loans and leases 0.73 1.18 0.69 0.48 0.77 0.59 0.88 0.74 0.81 0.70 0.49

Percent of Loans Noncurrent** 

All real estate loans 2.48 1.45 1.16 1.08 3.18 1.71 3.09 2.84 3.66 1.49 0.76

Construction and development 1.12 1.55 1.72 1.18 0.84 1.32 1.76 0.93 0.73 0.84 0.89

Nonfarm nonresidential 0.86 1.74 1.10 0.83 0.77 1.01 0.81 0.98 0.85 0.79 0.61

Multifamily residential real estate 0.28 0.47 0.72 0.29 0.21 0.24 0.23 0.33 0.29 0.65 0.19

Home equity loans 2.67 0.65 0.66 0.77 3.05 2.58 3.17 2.61 3.00 1.51 0.74

Other 1-4 family residential 4.22 1.60 1.31 1.65 5.21 2.63 5.02 4.56 6.25 2.81 0.99

Commercial and industrial loans 0.78 1.91 1.17 1.14 0.70 0.69 0.68 0.63 0.89 1.22 0.89

Loans to individuals 0.85 0.84 0.78 0.65 0.86 0.89 0.92 0.76 0.83 0.73 0.81

Credit card loans 1.15 1.64 1.48 1.33 1.14 0.99 1.23 0.97 1.13 1.16 1.37

Other loans to individuals 0.54 0.83 0.73 0.43 0.55 0.71 0.57 0.69 0.44 0.52 0.28

All other loans and leases (including farm) 0.21 0.54 0.40 0.93 0.15 0.42 0.12 0.15 0.17 0.24 0.28

Total loans and leases 1.56 1.34 1.10 1.05 1.70 1.24 1.75 1.70 2.04 1.27 0.76

Percent of Loans Charged-Off (net, YTD) 

All real estate loans 0.13 0.11 0.09 0.09 0.15 0.11 0.18 0.11 0.17 0.05 0.08

Construction and development -0.05 0.04 0.08 -0.03 -0.11 0.03 0.08 -0.10 -0.22 -0.03 -0.16

Nonfarm nonresidential 0.07 0.17 0.08 0.13 0.04 0.11 0.05 0.04 0.00 0.03 0.19

Multifamily residential real estate 0.00 0.17 0.04 0.01 -0.01 0.00 0.01 0.01 -0.03 0.03 -0.02

Home equity loans 0.39 0.10 0.11 0.15 0.44 0.25 0.56 0.34 0.49 0.24 0.04

Other 1-4 family residential 0.15 0.11 0.12 0.08 0.17 0.12 0.18 0.13 0.23 0.07 0.03

Commercial and industrial loans 0.26 0.48 0.32 0.25 0.26 0.20 0.22 0.22 0.30 0.30 0.41

Loans to individuals 1.80 0.62 0.76 1.32 1.86 1.94 1.86 1.10 2.25 1.22 1.71

Credit card loans 2.92 7.86 4.35 3.26 2.91 2.61 2.90 2.82 3.20 2.14 3.30

Other loans to individuals 0.69 0.52 0.48 0.70 0.70 0.77 0.75 0.53 1.02 0.77 0.32

All other loans and leases (including farm) 0.12 0.00 0.18 0.14 0.12 0.21 0.06 0.14 0.08 0.16 0.14

Total loans and leases 0.44 0.19 0.15 0.20 0.51 0.48 0.49 0.27 0.52 0.22 0.52

Loans Outstanding (in billions) 

All real estate loans $4,375.1 $39.7 $611.7 $838.5 $2,885.2 $892.5 $905.6 $887.1 $844.5 $376.0 $469.5

Construction and development 274.9 2.4 54.8 77.3 140.5 49.6 56.8 44.5 42.3 54.2 27.5

Nonfarm nonresidential 1,231.2 10.2 233.6 338.3 649.1 281.3 259.4 188.9 176.2 150.0 175.4

Multifamily residential real estate 344.1 1.1 32.6 80.6 229.8 124.2 42.4 89.2 31.0 14.6 42.6

Home equity loans 465.1 1.0 26.4 49.4 388.3 88.4 121.6 116.3 91.0 19.3 28.4

Other 1-4 family residential 1,904.5 18.1 218.7 272.4 1,395.3 344.6 412.4 425.5 414.4 122.8 184.7

Commercial and industrial loans 1,841.7 6.9 101.9 185.0 1,547.8 282.9 462.6 384.7 366.4 123.4 221.6

Loans to individuals 1,498.0 3.7 32.4 79.2 1,382.7 318.5 373.9 213.7 303.1 59.9 228.9

Credit card loans 756.5 0.1 2.1 19.6 734.7 204.2 196.2 54.8 170.9 19.7 110.7

Other loans to individuals 741.5 3.6 30.4 59.6 647.9 114.3 177.7 158.9 132.1 40.2 118.3

All other loans and leases (including farm) 1,126.9 7.9 50.9 60.9 1,007.3 179.9 245.8 260.7 314.0 45.7 80.9

Total loans and leases (plus unearned income) 8,841.6 58.1 796.9 1,163.6 6,823.0 1,673.8 1,987.8 1,746.2 1,828.0 605.0 1,000.9

Memo: Other Real Estate Owned (in millions) 

All other real estate owned 14,703.4 457.0 4,530.6 3,236.1 6,479.6 2,194.0 3,881.9 2,990.8 2,673.2 2,000.3 963.1

Construction and development 4,544.9 158.6 2,099.1 1,335.6 951.6 418.7 1,306.5 662.5 926.2 880.0 351.0

Nonfarm nonresidential 3,511.3 146.9 1,397.0 972.4 995.0 569.9 749.5 759.0 570.1 599.1 263.6

Multifamily residential real estate 244.9 20.9 108.4 66.3 49.2 76.5 35.5 49.0 37.2 29.2 17.5

1-4 family residential 4,664.3 120.3 825.1 777.7 2,941.2 1,068.8 1,166.0 1,063.1 649.0 417.5 299.9

Farmland 226.2 10.0 99.8 66.8 49.6 19.9 42.1 64.0 21.4 62.0 16.8

GNMA properties 1,488.8 0.3 1.2 17.4 1,469.9 40.1 582.4 393.2 446.3 12.6 14.3

* 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 6  •Volume 1 0  • Number 1

12 FDIC QUARTERLY

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

4th 

Quarter 

2015

3rd

Quarter 

2015

2nd

Quarter 

2015

1st 

Quarter 

2015

4th 

Quarter 

2014

% Change 

14Q4-

15Q4

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

Greater 

Than 

$10 Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,412 1,417 1,430 1,433 1,400 0.9 72 828 412 100

Total assets of institutions reporting derivatives $14,421,666 $14,229,626 $14,196,821 $14,161,278 $13,921,803 3.6 $5,356 $353,066 $1,286,071 $12,777,173

Total deposits of institutions reporting derivatives 10,937,463 10,734,003 10,705,267 10,664,869 10,461,458 4.6 4,451 291,323 1,022,400 9,619,289

Total derivatives 182,006,726 194,569,167 201,012,315 205,908,260 221,964,337 -18.0 390 19,829 101,513 181,884,993

Derivative Contracts by Underlying Risk Exposure 

Interest rate 138,401,691 147,846,270 153,754,328 157,727,980 174,010,311 -20.5 390 19,811 94,376 138,287,113

Foreign exchange* 33,133,160 34,636,874 34,969,999 35,563,105 34,745,833 -4.6 0 0 6,150 33,127,010

Equity 2,377,623 2,495,086 2,363,902 2,359,532 2,536,871 -6.3 0 3 329 2,377,291

Commodity & other (excluding credit derivatives) 1,107,759 1,393,268 1,436,368 1,241,100 1,222,255 -9.4 0 8 62 1,107,689

Credit 6,986,493 8,197,668 8,487,718 9,016,543 9,449,068 -26.1 0 8 596 6,985,890

Total 182,006,726 194,569,167 201,012,315 205,908,260 221,964,337 -18.0 390 19,829 101,513 181,884,993

Derivative Contracts by Transaction Type 

Swaps 107,392,568 112,697,599 117,508,993 117,711,339 135,169,550 -20.5 51 7,588 65,742 107,319,187

Futures & forwards 35,684,933 38,988,133 40,359,824 44,545,061 43,379,813 -17.7 93 6,244 17,326 35,661,270

Purchased options 15,479,866 16,414,299 15,936,785 16,070,702 16,388,881 -5.5 15 731 5,524 15,473,596

Written options 15,429,332 15,808,764 15,628,831 15,784,250 16,014,343 -3.7 231 5,258 12,255 15,411,588

Total 173,986,699 183,908,794 189,434,433 194,111,351 210,952,587 -17.5 390 19,822 100,846 173,865,640

Fair Value of Derivative Contracts 

Interest rate contracts 67,225 76,691 71,659 68,541 60,023 12.0 1 34 -128 67,319

Foreign exchange contracts -12,485 -15,284 -19,614 -10,042 -4,845 N/M 0 0 19 -12,504

Equity contracts 5,318 7,880 2,695 335 3,769 41.1 0 0 0 5,318

Commodity & other (excluding credit derivatives) -3,571 -6,952 -3,488 -5,755 -3,376 N/M 0 0 1 -3,571

Credit derivatives as guarantor -2,697 1,891 35,840 54,676 47,533 N/M 0 -1 -2 -2,694

Credit derivatives as beneficiary 7,076 2,441 -34,672 -53,203 -36,630 N/M 0 0 -25 7,101

Derivative Contracts by Maturity** 

Interest rate contracts < 1 year 55,066,011 62,274,115 63,464,834 71,679,267 71,808,688 -23.3 61 6,030 16,211 55,043,709

 1-5 years 49,407,094 55,134,193 54,758,916 54,898,649 33,727,025 46.5 23 2,802 27,010 49,377,259

 > 5 years 32,980,155 36,553,737 35,837,389 35,099,036 22,213,590 48.5 38 4,901 34,279 32,940,938

Foreign exchange and gold contracts < 1 year 24,129,434 25,206,272 25,081,829 25,513,647 22,145,398 9.0 0 0 4,126 24,125,308

 1-5 years 3,986,440 3,672,989 3,859,497 3,917,108 2,586,643 54.1 0 0 290 3,986,151

 > 5 years 1,647,799 1,500,445 1,612,940 1,612,457 969,047 70.0 0 0 0 1,647,799

Equity contracts < 1 year 1,734,984 1,604,394 1,567,482 1,595,472 996,137 74.2 0 1 40 1,734,944

 1-5 years 627,574 670,068 579,705 555,013 351,854 78.4 0 0 82 627,491

 > 5 years 130,188 183,539 162,800 169,232 100,903 29.0 0 0 34 130,155

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 2,651,133 2,567,847 2,358,927 2,192,083 1,298,825 104.1 0 9 47 2,651,078

 1-5 years 4,694,153 5,812,508 5,329,031 5,718,321 3,623,142 29.6 0 5 61 4,694,087

 > 5 years 405,131 756,438 428,122 598,660 289,055 40.2 0 0 114 405,017

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 30.1 34.3 31.6 39.8 28.8 0.2 0.3 0.6 34.2

Total potential future exposure to tier 1 capital (%) 48.3 50.3 54.9 50.3 48.6 0.1 0.3 0.6 55.1

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 78.4 84.6 86.4 90.0 77.4 0.3 0.6 1.2 89.3

Credit losses on derivatives*** 78.0 72.0 61.0 69.0 91.0 -14.3 0.0 0.0 0.0 78.0

HELD FOR TRADING 

Number of institutions reporting derivatives 247 247 249 249 247 0.0 9 89 87 62

Total assets of institutions reporting derivatives 11,455,841 11,384,421 11,367,405 11,440,608 11,274,446 1.6 604 39,591 301,791 11,113,855

Total deposits of institutions reporting derivatives 8,656,201 8,553,870 8,547,594 8,584,534 8,457,075 2.4 491 32,769 236,928 8,386,013

Derivative Contracts by Underlying Risk Exposure 

Interest rate 136,068,160 145,317,808 150,988,370 154,706,677 170,761,929 -20.3 51 1,681 23,441 136,042,987

Foreign exchange 31,665,951 31,764,784 31,318,657 32,197,481 32,536,107 -2.7 0 0 4,852 31,661,099

Equity 2,352,971 2,472,541 2,344,517 2,340,858 2,519,511 -6.6 0 0 0 2,352,971

Commodity & other 1,105,989 1,390,888 1,433,959 1,234,659 1,216,652 -9.1 0 0 21 1,105,968

Total 171,193,072 180,946,021 186,085,503 190,479,675 207,034,199 -17.3 51 1,682 28,314 171,163,025

Trading Revenues: Cash & Derivative Instruments 

Interest rate 155 2,581 3,404 957 658 -76.4 0 0 17 137

Foreign exchange 3,401 1,931 854 4,702 2,902 17.2 0 0 6 3,395

Equity 741 50 584 791 643 15.2 0 0 1 740

Commodity & other (including credit derivatives) -25 758 660 1,211 255 N/M 0 0 -1 -25

Total trading revenues 4,271 5,319 5,502 7,662 4,458 -4.2 0 0 23 4,248

Share of Revenue 

Trading revenues to gross revenues (%) 3.5 4.4 4.5 6.4 3.8 0.0 0.0 0.7 3.6

Trading revenues to net operating revenues (%) 15.7 19.9 19.0 29.4 19.6 0.0 0.3 3.0 16.1

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 1,299 1,304 1,310 1,308 1,277 1.7 64 759 379 97

Total assets of institutions reporting derivatives 14,205,743 13,958,937 13,894,497 13,845,428 13,613,653 4.3 4,840 324,368 1,197,743 12,678,792

Total deposits of institutions reporting derivatives 10,765,169 10,517,185 10,463,786 10,412,082 10,218,508 5.3 4,037 267,309 952,161 9,541,661

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,333,530 2,528,462 2,765,957 3,021,304 3,248,382 -28.2 339 18,129 70,936 2,244,126

Foreign exchange 433,675 409,385 561,179 585,259 647,043 -33.0 0 0 1,226 432,449

Equity 24,652 22,545 19,385 18,674 17,361 42.0 0 3 329 24,319

Commodity & other 1,770 2,381 2,409 6,441 5,602 -68.4 0 8 42 1,720

Total notional amount 2,793,627 2,962,773 3,348,931 3,631,677 3,918,388 -28.7 339 18,140 72,533 2,702,615

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

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

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

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

more in total assets.
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 

2015

3rd 

Quarter

2015

2nd 

Quarter

2015

1st 

Quarter

2015

4th 

Quarter

2014

% Change 

14Q4-

15Q4

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

Than $10 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 74 73 72 71 78 -5.1 0 20 16 38

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $715,914 $734,519 $749,911 $818,351 $847,508 -15.5 $0 $2,032 $12,832 $701,050

Home equity loans 30 31 33 35 36 -16.7 0 0 0 30

Credit card receivables 13,502 14,187 17,766 17,817 18,499 -27.0 0 0 0 13,502

Auto loans 6,095 6,221 5,660 3,740 3,951 54.3 0 0 2,165 3,930

Other consumer loans 6,219 5,370 6,534 5,966 6,191 0.5 0 935 0 5,284

Commercial and industrial loans 15 14 14 13 11 36.4 0 8 7 1

All other loans, leases, and other assets 79,844 86,277 89,384 94,400 96,257 -17.1 0 99 8,316 71,429

Total securitized and sold 821,619 846,620 869,302 940,322 972,452 -15.5 0 3,073 23,320 795,226

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 2,840 2,933 3,101 3,117 2,918 -2.7 0 4 0 2,835

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

Credit card receivables 1,108 1,187 1,470 1,531 1,529 -27.5 0 0 0 1,108

Auto loans 0 0 0 0 0 0.0 0 0 0 0

Other consumer loans 89 89 187 211 194 -54.1 0 0 0 89

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

All other loans, leases, and other assets 990 1,319 1,084 1,405 1,369 -27.7 0 0 0 990

Total credit exposure 5,026 5,528 5,842 6,264 6,011 -16.4 0 4 0 5,022

Total unused liquidity commitments provided to institution’s own securitizations 36 37 38 0 17 111.8 0 0 0 36

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

1-4 family residential loans 3.9 3.8 3.4 3.1 3.9 0.0 1.8 1.6 3.9

Home equity loans 5.4 5.9 5.3 5.2 7.5 0.0 0.0 0.0 5.4

Credit card receivables 0.4 0.4 0.4 0.4 0.7 0.0 0.0 0.0 0.4

Auto loans 1.5 1.1 0.9 0.9 0.9 0.0 0.0 1.8 1.3

Other consumer loans 3.3 3.8 4.0 4.6 4.9 0.0 0.0 0.0 3.9

Commercial and industrial loans 0.0 0.0 1.2 0.0 0.0 0.0 0.0 0.0 0.0

All other loans, leases, and other assets 0.5 0.3 0.3 0.4 0.3 0.0 1.1 0.1 0.6

Total loans, leases, and other assets 3.5 3.3 3.0 2.8 3.5 0.0 1.2 1.1 3.6

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

1-4 family residential loans 2.0 2.1 2.1 2.0 2.2 0.0 1.5 0.6 2.1

Home equity loans 47.8 47.4 46.5 44.7 43.3 0.0 0.0 0.0 47.8

Credit card receivables 0.3 0.3 0.3 0.3 0.5 0.0 0.0 0.0 0.3

Auto loans 0.2 0.2 0.1 0.1 0.1 0.0 0.0 0.4 0.1

Other consumer loans 3.4 3.9 4.3 5.1 5.3 0.0 0.0 0.0 3.9

Commercial and industrial loans 1.0 1.2 1.8 1.8 2.4 0.0 2.1 0.0 0.0

All other loans, leases, and other assets 1.2 1.2 1.4 1.4 3.3 0.0 8.7 0.5 1.2

Total loans, leases, and other assets 1.9 2.0 2.0 2.0 2.3 0.0 1.3 0.5 2.0

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans 0.4 0.3 0.2 0.1 0.4 0.0 0.2 0.0 0.4

Home equity loans 5.2 3.2 1.8 0.7 1.0 0.0 0.0 0.0 5.2

Credit card receivables 1.8 1.4 0.8 0.4 1.7 0.0 0.0 0.0 1.8

Auto loans 0.4 0.2 0.1 0.1 0.2 0.0 0.0 0.7 0.3

Other consumer loans 0.7 0.5 0.3 0.2 0.8 0.0 0.0 0.0 0.8

Commercial and industrial loans 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 0.6 0.5 0.3 0.1 0.9 0.0 0.0 0.0 0.6

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

Credit card receivables 15,059 13,248 10,380 9,983 12,247 23.0 0 0 0 15,059

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

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

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

Credit card receivables 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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 1,084 1,099 1,107 1,097 1,103 -1.7 123 726 184 51

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 38,492 39,013 38,992 38,856 40,547 -5.1 1,511 15,239 9,792 11,951

Home equity, credit card receivables, auto, and other consumer loans 716 721 750 694 712 0.6 0 7 55 653

Commercial and industrial loans 215 217 80 83 91 136.3 0 15 69 130

All other loans, leases, and other assets 73,491 72,204 74,994 71,382 69,560 5.7 0 126 1,179 72,187

Total sold and not securitized 112,915 112,155 114,816 111,015 110,909 1.8 1,511 15,387 11,095 84,921

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 9,936 10,495 10,436 10,061 9,737 2.0 113 2,682 3,410 3,731

Home equity, credit card receivables, auto, and other consumer loans 167 140 144 137 137 21.9 0 7 31 129

Commercial and industrial loans 152 154 16 19 27 463.0 0 15 6 130

All other loans, leases, and other assets 20,130 19,659 19,656 18,624 17,954 12.1 0 13 69 20,047

Total credit exposure 30,385 30,448 30,252 28,841 27,855 9.1 113 2,718 3,516 24,038

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 111 110 110 117 125 -11.2 8 60 24 19

Total credit exposure 41,500 42,211 44,649 44,981 44,248 -6.2 8 148 336 41,008

Total unused liquidity commitments 834 884 2,005 887 1,150 -27.5 0 9 0 825

Other

Assets serviced for others* 0 0 0 0 4,360,879 -100.0 0 0 0 0

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 13,980 12,020 12,284 11,736 11,981 16.7 4 1 0 13,975

Unused liquidity commitments to conduits sponsored by institutions 

 and others 29,257 27,631 27,902 28,878 28,924 1.2 0 0 7 29,251

Net servicing income (for the quarter) 3,328 1,040 4,546 1,600 1,197 178.0 7 275 178 2,868

Net securitization income (for the quarter) 250 348 325 298 340 -26.5 0 6 2 242

Total credit exposure to Tier 1 capital (%)** 5.2 5.3 5.5 5.5 5.5 1.0 2.2 2.3 6.0

* 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 6  •Volume 1 0  • 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

2015

Dec 31

2014

Dec 31

2013

Dec 31

2012

% Change 

2014-2015

Less 

Than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion

Number of institutions reporting 6,182 6,509 6,812 7,083 -5.0 1,688 3,792 595 107

Number of institutions with fiduciary powers 1,857 1,923 1,991 2,035 -3.4 246 1,188 346 77

Commercial banks 1,721 1,779 1,842 1,886 -3.3 230 1,119 301 71

Savings institutions 136 144 149 149 -5.6 16 69 45 6

Number of institutions exercising fiduciary powers 1,379 1,435 1,474 1,509 -3.9 149 870 290 70

Commercial banks 1,271 1,318 1,354 1,390 -3.6 134 818 254 65

Savings institutions 108 117 120 119 -7.7 15 52 36 5

Number of institutions reporting fiduciary activity 1,297 1,357 1,397 1,425 -4.4 137 815 277 68

Commercial banks 1,196 1,247 1,285 1,315 -4.1 122 767 244 63

Savings institutions 101 110 112 110 -8.2 15 48 33 5

Fiduciary and related assets - managed assets 

Personal trust and agency accounts 643,537 689,134 671,350 620,385 -6.6 15,455 58,284 71,908 497,890

Noninterest-bearing deposits 10,584 8,693 7,903 6,887 21.8 36 706 133 9,709

Interest-bearing deposits 80,025 79,637 97,316 73,891 0.5 278 5,026 11,405 63,317

U.S. Treasury and U.S. Government agency obligations 83,335 101,002 127,030 127,196 -17.5 2,290 3,178 13,259 64,609

State, county and municipal obligations 194,886 180,284 176,967 188,940 8.1 6,514 7,569 29,206 151,597

Money market mutual funds 105,703 101,985 109,585 123,648 3.6 3,040 6,705 13,443 82,516

Other short-term obligations 162,046 189,900 210,851 216,496 -14.7 10 75 6,334 155,627

Other notes and bonds 174,151 198,701 224,723 249,129 -12.4 8,127 5,213 13,563 147,248

Common and preferred stocks 2,669,521 2,914,743 2,700,364 2,285,750 -8.4 38,473 110,267 174,036 2,346,745

Real estate mortgages 1,956 1,987 1,936 1,979 -1.6 338 235 270 1,113

Real estate 50,916 43,805 47,344 47,776 16.2 1,043 7,292 10,421 32,159

Miscellaneous assets 118,189 124,309 101,488 130,326 -4.9 1,265 13,333 9,204 94,387

Employee benefit and retirement-related trust and 

agency accounts:

Employee benefit - defined contribution 342,058 361,774 403,358 391,320 -5.4 1,043 6,356 12,251 322,408

Employee benefit - defined benefit 551,428 612,253 582,751 536,981 -9.9 2,196 3,714 19,241 526,276

Other employee benefit and retirement-related 

 accounts 290,678 310,073 276,834 232,270 -6.3 3,829 27,295 40,109 219,446

Corporate trust and agency accounts 19,437 20,957 22,832 26,349 -7.3 1 387 4,440 14,608

Investment management and investment advisory 

agency accounts 1,433,304 1,559,780 1,299,675 1,205,400 -8.1 36,562 55,281 109,565 1,231,896

Other fiduciary accounts 370,871 391,075 548,705 439,314 -5.2 2,328 8,281 23,759 336,502

Total managed fiduciary accounts: 

Assets 3,651,314 3,945,046 3,805,506 3,452,017 -7.4 61,414 159,599 281,274 3,149,026

Number of accounts 1,693,534 1,635,991 1,557,905 1,432,470 3.5 86,753 267,617 309,791 1,029,373

Fiduciary and related assets - nonmanaged assets 

Personal trust and agency accounts 276,105 289,312 277,995 263,735 -4.6 11,033 21,203 24,226 219,642

Employee benefit and retirement-related trust and 

agency accounts: 

Employee benefit - defined contribution 2,030,732 2,208,911 3,122,507 2,572,659 -8.1 89,717 23,501 60,675 1,856,839

Employee benefit - defined benefit 4,248,691 4,208,533 3,983,936 3,488,956 1.0 14,304 24,350 16,194 4,193,843

Other employee benefit and retirement-related accounts 1,342,944 1,612,404 2,631,474 2,297,113 -16.7 1,914 26,127 13,630 1,301,274

Corporate trust and agency accounts 2,657,559 2,568,742 2,472,022 2,620,041 3.5 13 19,756 354,465 2,283,326

Other fiduciary accounts 3,096,575 3,503,111 3,353,848 2,826,277 -11.6 3,351 26,426 26,533 3,040,265

Total nonmanaged fiduciary accounts: 

Assets 13,652,607 14,391,012 15,841,782 14,068,782 -5.1 120,332 141,363 495,723 12,895,189

Number of accounts 3,807,727 3,846,801 14,378,658 14,124,737 -1.0 364,916 472,192 153,882 2,816,737

Custody and safekeeping accounts: 

Assets 81,189,312 83,499,124 80,166,742 74,238,399 -2.8 127,225 1,179,734 746,068 79,136,285

Number of accounts 8,338,035 9,368,259 9,477,615 10,381,687 -11.0 754,983 5,210,115 469,716 1,903,221

Fiduciary and related services income 

Personal trust and agency accounts 4,705 4,873 4,655 4,417 -3.4 122 251 544 3,788

Retirement-related trust and agency accounts: 

Employee benefit - defined contribution 1,199 1,190 1,281 1,202 0.8 17 40 203 939

Employee benefit - defined benefit 1,412 1,381 1,336 1,283 2.2 8 19 39 1,346

Other employee benefit and retirement-related accounts 1,529 1,498 1,350 1,194 2.1 42 258 232 997

Corporate trust and agency accounts 1,469 1,371 1,317 1,305 7.1 0 36 262 1,171

Investment management agency accounts 7,452 6,988 6,125 5,400 6.6 175 404 854 6,018

Other fiduciary accounts 699 827 816 847 -15.5 2 21 7 668

Custody and safekeeping accounts 13,317 13,091 12,494 11,559 1.7 13 383 482 12,440

Other fiduciary and related services income 970 1,157 1,451 1,386 -16.2 5 115 137 713

Total gross fiduciary and related services income 32,886 32,515 30,992 28,766 1.1 387 1,610 2,769 28,119

Less: Expenses 31,273 30,825 29,519 28,035 1.5 266 1,174 2,238 27,595

Less: Net losses from fiduciary and related services 367 220 245 274 66.8 2 1 18 346

Plus: Intracompany income credits for fiduciary and 

 related services 4,942 5,406 5,507 6,001 -8.6 0 14 228 4,699

Net fiduciary and related services income 6,052 6,732 6,565 6,272 -10.1 117 366 732 4,838

Collective investment funds and common trust funds 

(market value) 

Domestic equity funds 558,174 615,200 373,714 299,291 -9.3 6,654 770 11,492 539,259

International/global equity funds 188,975 193,624 186,382 147,535 -2.4 1,310 5,896 2,905 178,864

Stock/bond blend funds 137,836 143,065 125,635 114,754 -3.7 1,393 1,154 1,173 134,116

Taxable bond funds 146,148 154,239 145,958 183,240 -5.2 903 2,508 1,972 140,765

Municipal bond funds 3,925 4,374 4,263 5,649 -10.3 42 289 132 3,462

Short-term investments/money market funds 145,387 178,284 178,395 163,709 -18.5 1,869 0 101 143,417

Specialty/other funds 52,694 47,543 77,419 80,365 10.8 251 305 5,735 46,403

Total collective investment funds 1,233,139 1,336,330 1,091,766 994,544 -7.7 12,421 10,922 23,511 1,186,286
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.

Earnings Rise 4 Percent to $5.1 Billion From Fourth Quarter 2014

Net Operating Revenue Increases, Outpacing Growth at Noncommunity Banks

Community Banks Benefit From Strong Balance Sheet Growth

Noncurrent Rate Declines for 23 Consecutive Quarters

Full-Year Earnings Grow From Higher Net Operating Revenue

Earnings Improve for More 

Than Half (57 Percent) of 

Community Banks

Community banks reported earnings of $5.1 billion during fourth quarter 2015, up 

$198.7 million (4 percent) from the year-earlier quarter. Earnings improved on higher net 

interest income and noninterest income, but were offset in part by higher loan-loss provisions 

and noninterest expense. For the 5,735 community banks in fourth quarter 2015, close to 

57 percent reported an improvement in earnings from the year before. The pretax return on 

assets (ROA) was 1.23 percent, down 8 basis points from the previous quarter, but 6 basis 

points above fourth quarter 2014. Unprofitable community banks totaled 9.6 percent during 

the latest quarter—down from 10.2 percent a year earlier—the lowest fourth-quarter rate since 

1996. There were 77 fewer community banks at the end of the quarter, with two bank failures.

Net Interest Margin Falls 

While Net Interest Income 

Increases Almost 7 Percent

Net operating revenue of $22.6 billion increased $1.6 billion (7.4 percent) from 12 months 

ago, led by higher net interest income (up $1.1 billion, or 6.5 percent) and noninterest income 

(up $489.5 million, or 10.8 percent). With nearly 70 percent of community banks increasing 

net interest income from the year earlier, the annual rate at community banks surpassed that 

of noncommunity banks (4.3 percent). Higher interest income in other real estate loans (up 

$620 million, or 8.5 percent) lifted net interest income from fourth quarter 2014.1 Average 

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

-0.5

0.0

0.5

1.0

1.5

$0.20 $1.07 $0.07 $0.49 $0.83 -$0.08 $0.39

+4% +7% +10% +11% +6% -51% +44%

Chart 1

Source: FDIC.

Net Interest Margin 

Percent

3.0 

3.5 

4.0 

Community Banks

All Insured Institutions 

3.63 3.60

3.12 3.13

2007 2008 2009 2010 2011 2012 2013 2014 2015 

Chart 2

1 Other real estate loans include construction and development, farmland, multifamily, and nonfarm nonresidential. 
2 0 1 6  •Volume 1 0  • Number 1

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Change 4Q 2015 vs. 4Q 2014 

Change 4Q 2015 vs. 3Q 2015 

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

C&I

Loans

1-to-4

Family

Residential

RE

C&D

Loans

Agricultural

Production

Loans

Loans to

Individuals

Home

Equity

CRE &

C&D

C&I

Loans

34.4 

14.7 

20.5 

12.4 

2.6 1.8 3.0 

12.9 

9.0 10.4 

5.5 4.9 4.3 

0.8 0.5 0.9 1.6 2.6 

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

2007 2008 2009 2010 2011 2012 2013 2014 2015 

Percent of Loan Portfolio Noncurrent

0

2

4

6

8

10

12

14

16

C&D Loans

Nonfarm Nonresidential RE

1-to-4 Family RE

C&I Loans 

Home Equity 

Credit Cards

Chart 4

net interest margin (NIM) of 3.6 percent was down 3 basis points from the year before, 

as average asset yields fell more rapidly than the average funding costs. Community banks 

posted NIM 55 basis points above the average for noncommuntiy banks (3.05 percent). 

Long-term assets represented 33.7 percent of total assets for community banks during the 

fourth quarter, down from 34 percent in the previous year.2 For the past five of six consecutive quarters, community banks decreased their share of long-term assets. However, the 

share of long-term assets at community banks exceeded the 25.5 percent held by 

noncommunity banks.

Noninterest Expense Increases 

From Fourth Quarter 2014

Noninterest expense totaled $15.5 billion for the latest quarter, up $829 million (5.7 percent) 

from 12 months earlier. Almost two out of every three community banks (64 percent) 

increased noninterest expense from fourth quarter 2014. While noninterest expense 

increased at community banks, it declined for noncommunity banks (down $2.4 billion, or 

2.6 percent). The 12-month increase in noninterest expense for community banks was led by 

higher salary and employee benefits (up $571.5 million, or 7.2 percent). Full-time employees 

at community banks increased 11,958 (2.8 percent) from the year before, while declining 

3,976 (0.2 percent) for noncommunity banks. Average assets per employee at community 

banks totaled $4.8 million in the latest quarter, up from $4.7 the year before.

Full-Year Earnings Rise 

9.7 Percent to $20.4 Billion

Full-year 2015 earnings of $20.4 billion, increased $1.8 billion (9.7 percent) from 2014. 

Increased revenues from net interest income (up $3.9 billion, or 6.2 percent) and noninterest 

income (up $2.3 billion, or 13.3 percent) were offset in part by higher loan-loss provisions 

(up $42.8 million, or 1.8 percent) and noninterest expense (up $3.4 billion, or 6.1 percent). 

Almost two out of every three community banks (63 percent) reported higher earnings from 

2014. Pretax ROA totaled 1.27 percent for 2015, an improvement over 1.19 percent in 2014. 

Annual pretax ROA was above 1 percent for the past four consecutive years.

2 Long-term assets are loans and debt securities with remaining maturities or repricing intervals of over five years.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Loan Balances at Community 

Banks Continue to Increase

Loans and leases represented 67.8 percent of total assets at community banks during fourth 

quarter 2015, the highest since fourth quarter 2009. Total assets of $2.1 trillion increased 

$39.8 billion (1.9 percent) from the third quarter, while loan and lease balances grew 

$34.4 billion (2.5 percent). Close to 70 percent of community banks increased their loan and 

lease balances from third quarter 2015. The quarterly increase in loan and lease balances was 

led by nonfarm nonresidential loans (up $10.4 billion, or 2.6 percent), commercial and 

industrial loans (up $5.5 billion, or 2.9 percent), 1-to-4 family residential mortgages (up 

$4.9 billion, or 1.3 percent), multifamily residential mortgages (up $4.8 billion, or 5.5 percent), 

and construction and development loans (up $4.3 billion, or 4.8 percent). The annual growth 

rate in loan and lease balances (8.6 percent) was driven by nonfarm nonresidential loans (up 

$34.4 billion, or 8.9 percent) and 1-to-4 family residential mortgages (up $20.5 billion, or 

5.8 percent). Unused loan commitments of $271 billion increased $13.2 billion (5.1 percent) 

from the year before, with unused commercial real estate loan commitments—including 

construction and development—growing $12.9 billion (20.3 percent).

Small Loans to Businesses 

Increase Quarterly and 

Annually

With more than half (56 percent) of community banks increasing their small loans to businesses from third quarter 2015, small loans to business rose $2.3 billion (0.8 percent) to 

$299.7 billion.3 The quarterly increase in small business loans at community banks was led 

by commercial and industrial loans (up 1.1 billion, or 1.2 percent) and nonfarm nonresidential loans (up $876.6 million, or 0.6 percent). The 12-month increase in small loans to businesses at community banks (up $8.7 billion, or 3 percent) exceeded that of noncommunity 

banks (up $6.1 billion, or 1.6 percent). The year-over-year increase at community banks was 

driven by commercial and industrial loans (up $3.5 billion, or 3.9 percent), and nonfarm 

nonresidential loans (up $3.1 billion, or 2.2 percent). Meanwhile, nonfarm nonresidential 

loans at noncommunity banks declined (down $6.8 billion, or 4.7 percent). 4 Community 

banks continued to hold 44 percent of all small loans to businesses.

Asset Quality for 

Commercial and Industrial 

Loans Declines Modestly

Noncurrent loan and lease balances totaled $15.8 billion in fourth quarter, down $2.4 billion 

(13.3 percent) from the year before. More than half (57 percent) of community banks reduced 

their noncurrent loan and lease balances from fourth quarter 2014. The noncurrent rate was 

1.1 percent during fourth quarter 2015, the lowest since third quarter 2007. The rate remained 

down 7 basis points from the previous quarter, and 26 basis points from a year-earlier quarter. 

The noncurrent rate for community banks was 55 basis points below that at noncommunity 

banks (1.65 percent). All major loan categories at community banks, except for commercial 

and industrial loans, had lower noncurrent rates from the previous quarter and the year 

before. The noncurrent rate for commercial and industrial loans (1.1 percent) increased for a 

second consecutive quarter, after improving for 21 consecutive quarters. The quarterly net 

charge-off rate (0.19 percent) increased (up 5 basis points) from third quarter 2015, led by 

higher quarterly net charge-off rates among all major loan categories. Commercial and 

industrial loans posted the largest quarterly increase (up 14 basis points). The quarterly net 

charge-off rate for community banks was down 7 basis points from the previous year.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6578

3 Small loans to businesses consist of loans to commercial borrowers up to $1 million and farm loans up to $500,000.

4 Nonfarm nonresidential loans up to $1 million accounted for 37 percent of all small loans to businesses held by noncommunity 

banks during the fourth quarter 2015.
2 0 1 6  •Volume 1 0  • Number 1

18 FDIC QUARTERLY

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

2015 2014 2013 2012 2011 2010 2009

Return on assets (%) 1.00 0.93 0.90 0.83 0.55 0.21 -0.15

Return on equity (%) 8.92 8.46 8.28 7.68 5.19 2.07 -1.45

Core capital (leverage) ratio (%) 10.67 10.57 10.43 10.18 9.98 9.57 9.30

Noncurrent assets plus other real estate owned to assets (%) 1.06 1.34 1.73 2.26 2.84 3.25 3.27

Net charge-offs to loans (%) 0.14 0.21 0.32 0.58 0.87 1.11 1.26

Asset growth rate (%) 2.72 2.31 0.33 2.25 1.60 -2.45 3.92

Net interest margin (%) 3.57 3.61 3.59 3.67 3.74 3.71 3.56

Net operating income growth (%) 10.34 4.90 14.61 56.25 207.82 206.20 -157.14

Number of institutions reporting 5,735 6,037 6,306 6,541 6,798 7,014 7,252

Percentage of unprofitable institutions (%) 4.81 6.44 8.40 11.15 16.34 22.16 29.73

* Excludes insured branches of foreign banks (IBAs).

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

(dollar figures in millions)  4th Quarter

2015

3rd Quarter

2015

4th Quarter

2014

%Change 

14Q4-15Q4

Number of institutions reporting 5,735 5,812 6,037 -5.0

Total employees (full-time equivalent) 437,873 439,199 442,277 -1.0

CONDITION DATA

Total assets $2,120,123 $2,095,671 $2,064,065 2.7

Loans secured by real estate 1,094,593 1,076,084 1,039,774 5.3

 1-4 Family residential mortgages 376,496 373,820 364,954 3.2

 Nonfarm nonresidential 418,590 412,054 400,378 4.5

 Construction and development 93,634 90,294 85,125 10.0

 Home equity lines 50,632 50,093 50,063 1.1

Commercial & industrial loans 196,423 192,948 190,456 3.1

Loans to individuals 59,991 59,918 59,007 1.7

 Credit cards 2,172 2,191 1,828 18.8

Farm loans 51,316 50,563 48,574 5.6

Other loans & leases 36,460 35,491 31,147 17.1

Less: Unearned income 637 589 590 8.0

Total loans & leases 1,438,146 1,414,414 1,368,368 5.1

Less: Reserve for losses 18,513 18,658 18,994 -2.5

Net loans and leases 1,419,633 1,395,755 1,349,374 5.2

Securities 438,355 438,108 448,665 -2.3

Other real estate owned 6,581 7,235 8,749 -24.8

Goodwill and other intangibles 13,826 13,736 12,597 9.8

All other assets 241,728 240,837 244,681 -1.2

Total liabilities and capital 2,120,123 2,095,671 2,064,065 2.7

Deposits 1,736,305 1,717,378 1,693,727 2.5

 Domestic office deposits 1,735,905 1,716,992 1,693,497 2.5

 Foreign office deposits 400 385 230 73.8

 Brokered deposits 71,376 69,905 60,879 17.2

Estimated insured deposits 1,313,767 1,306,039 1,305,418 0.6

Other borrowed funds 131,753 125,040 125,290 5.2

Subordinated debt 479 455 497 -3.7

All other liabilities 15,704 16,802 15,702 0.0

Total equity capital (includes minority interests) 235,882 235,996 228,849 3.1

 Bank equity capital 235,772 235,877 228,718 3.1

Loans and leases 30-89 days past due 8,980 8,206 9,501 -5.5

Noncurrent loans and leases 15,780 16,528 18,660 -15.4

Restructured loans and leases 9,422 9,689 10,789 -12.7

Mortgage-backed securities 185,267 184,584 195,099 -5.0

Earning assets 1,968,433 1,945,760 1,911,262 3.0

FHLB Advances 100,874 93,859 92,924 8.6

Unused loan commitments 271,012 286,493 250,134 8.3

Trust assets 294,226 242,405 286,100 2.8

Assets securitized and sold 16,746 15,972 15,959 4.9

Notional amount of derivatives 51,852 53,222 43,740 18.5

INCOME DATA

Full Year 

2015

Full Year 

2014 %Change

4th Quarter 

2015

4th Quarter 

2014

%Change 

14Q4-15Q4

Total interest income $76,442 $75,692 1.0 $19,754 $19,439 1.6

Total interest expense 8,657 9,101 -4.9 2,217 2,270 -2.3

Net interest income 67,785 66,591 1.8 17,537 17,169 2.1

Provision for loan and lease losses 2,424 2,566 -5.5 760 697 9.1

Total noninterest income 19,544 17,680 10.5 5,024 4,622 8.7

Total noninterest expense 59,330 58,523 1.4 15,451 15,301 1.0

Securities gains (losses) 521 561 -7.1 77 168 -54.3

Applicable income taxes 5,701 5,186 9.9 1,279 1,212 5.5

Extraordinary gains, net 8 2 244.1 6 1 N/M

Total net income (includes minority interests) 20,403 18,559 9.9 5,154 4,749 8.5

 Bank net income 20,376 18,535 9.9 5,149 4,741 8.6

Net charge-offs 1,950 2,757 -29.3 674 881 -23.5

Cash dividends 10,129 9,251 9.5 3,308 3,040 8.8

Retained earnings 10,247 9,284 10.4 1,841 1,701 8.2

Net operating income 19,983 18,111 10.3 5,082 4,611 10.2

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 

2015

3rd Quarter 

2015

4th Quarter

2014

%Change 

14Q4-15Q4

Number of institutions reporting 5,735 5,735 5,734 0.0

Total employees (full-time equivalent) 437,873 435,110 425,915 2.8

CONDITION DATA

Total assets $2,120,123 $2,080,371 $2,003,739 5.8

Loans secured by real estate 1,094,593 1,068,062 1,005,210 8.9

 1-4 Family residential mortgages 376,496 371,553 356,010 5.8

 Nonfarm nonresidential 418,590 408,171 384,216 8.9

 Construction and development 93,634 89,349 81,192 15.3

 Home equity lines 50,632 49,683 47,635 6.3

Commercial & industrial loans 196,423 190,952 181,725 8.1

Loans to individuals 59,991 59,457 58,152 3.2

 Credit cards 2,172 2,187 2,267 -4.2

Farm loans 51,316 50,526 48,691 5.4

Other loans & leases 36,460 35,314 31,214 16.8

Less: Unearned income 637 583 569 11.9

Total loans & leases 1,438,146 1,403,728 1,324,422 8.6

Less: Reserve for losses 18,513 18,547 18,472 0.2

Net loans and leases 1,419,633 1,385,181 1,305,949 8.7

Securities 438,355 435,702 438,882 -0.1

Other real estate owned 6,581 7,153 8,484 -22.4

Goodwill and other intangibles 13,826 13,636 12,051 14.7

All other assets 241,728 238,700 238,372 1.4

Total liabilities and capital 2,120,123 2,080,371 2,003,739 5.8

Deposits 1,736,305 1,704,578 1,644,287 5.6

 Domestic office deposits 1,735,905 1,704,193 1,643,882 5.6

 Foreign office deposits 400 385 405 -1.2

 Brokered deposits 71,376 69,345 60,459 18.1

Estimated insured deposits 1,313,767 1,296,974 1,268,964 3.5

Other borrowed funds 131,753 124,164 121,213 8.7

Subordinated debt 479 455 442 8.3

All other liabilities 15,704 16,657 15,102 4.0

Total equity capital (includes minority interests) 235,882 234,516 222,695 5.9

 Bank equity capital 235,772 234,393 222,572 5.9

Loans and leases 30-89 days past due 8,980 8,156 9,428 -4.8

Noncurrent loans and leases 15,780 16,409 18,209 -13.3

Restructured loans and leases 9,422 9,644 10,721 -12.1

Mortgage-backed securities 185,267 183,165 190,018 -2.5

Earning assets 1,968,433 1,931,586 1,855,450 6.1

FHLB Advances 100,874 93,105 89,279 13.0

Unused loan commitments 271,012 284,192 257,787 5.1

Trust assets 294,226 242,669 283,152 3.9

Assets securitized and sold 16,746 15,972 13,950 20.0

Notional amount of derivatives 51,852 52,459 40,218 28.9

INCOME DATA

Full Year 

2015

Full Year 

2014 %Change

4th Quarter 

2015

4th Quarter 

2014

%Change 

14Q4-15Q4

Total interest income $76,442 $72,532 5.4 $19,754 $18,638 6.0

Total interest expense 8,657 8,696 -0.4 2,217 2,174 2.0

Net interest income 67,785 63,836 6.2 17,537 16,464 6.5

Provision for loan and lease losses 2,424 2,381 1.8 760 689 10.3

Total noninterest income 19,544 17,245 13.3 5,024 4,535 10.8

Total noninterest expense 59,330 55,942 6.1 15,451 14,622 5.7

Securities gains (losses) 521 541 -3.8 77 158 -51.1

Applicable income taxes 5,701 4,698 21.4 1,279 887 44.1

Extraordinary gains, net 8 1 453.6 6 0 N/M

Total net income (includes minority interests) 20,403 18,603 9.7 5,154 4,958 4.0

 Bank net income 20,376 18,579 9.7 5,149 4,951 4.0

Net charge-offs 1,950 2,606 -25.2 674 865 -22.0

Cash dividends 10,129 9,069 11.7 3,308 2,947 12.3

Retained earnings 10,247 9,510 7.8 1,841 2,004 -8.1

Net operating income 19,983 18,174 10.0 5,082 4,831 5.2

N/M - Not Meaningful
2 0 1 6  •Volume 1 0  • Number 1

20 FDIC QUARTERLY

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

Fourth Quarter 2015

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 5,735 668 702 1,270 1,485 1,232 378

Total employees (full-time equivalent) 437,873 87,100 55,141 92,562 71,063 95,379 36,628

CONDITION DATA

Total assets $2,120,123 $553,225 $245,919 $391,664 $331,614 $408,828 $188,874

Loans secured by real estate 1,094,593 329,089 135,272 197,525 149,996 187,779 94,931

 1-4 Family residential mortgages 376,496 127,125 44,132 71,414 48,754 62,090 22,980

 Nonfarm nonresidential 418,590 116,265 57,762 71,877 49,481 75,880 47,325

 Construction and development 93,634 18,205 15,412 12,628 12,314 27,022 8,053

 Home equity lines 50,632 17,115 7,617 11,732 4,675 4,387 5,106

Commercial & industrial loans 196,423 48,184 18,990 36,623 32,074 42,033 18,519

Loans to individuals 59,991 12,722 6,674 12,046 9,871 13,599 5,079

 Credit cards 2,172 465 132 442 498 314 321

Farm loans 51,316 517 1,167 8,280 29,016 9,676 2,660

Other loans & leases 36,460 11,347 2,760 6,261 5,472 7,347 3,274

Less: Unearned income 637 164 135 63 42 123 110

Total loans & leases 1,438,146 401,694 164,728 260,672 226,388 260,311 124,352

Less: Reserve for losses 18,513 4,543 2,175 3,513 3,061 3,426 1,795

Net loans and leases 1,419,633 397,152 162,553 257,159 223,327 256,886 122,557

Securities 438,355 99,387 48,837 85,079 69,357 97,185 38,510

Other real estate owned 6,581 981 1,677 1,328 971 1,236 387

Goodwill and other intangibles 13,826 4,538 1,170 2,224 1,764 2,643 1,487

All other assets 241,728 51,167 31,681 45,874 36,195 50,878 25,933

Total liabilities and capital 2,120,123 553,225 245,919 391,664 331,614 408,828 188,874

Deposits 1,736,305 435,775 203,956 323,773 272,352 343,372 157,077

 Domestic office deposits 1,735,905 435,424 203,948 323,755 272,352 343,372 157,053

 Foreign office deposits 400 351 8 18 0 0 24

 Brokered deposits 71,376 25,022 7,040 12,139 10,672 10,130 6,372

 Estimated insured deposits 1,313,767 321,297 155,762 259,513 214,642 253,030 109,524

Other borrowed funds 131,753 50,281 12,901 21,067 20,961 18,334 8,209

Subordinated debt 479 312 20 75 15 6 51

All other liabilities 15,704 5,349 1,658 2,895 1,836 2,358 1,609

Total equity capital (includes minority interests) 235,882 61,508 27,385 43,854 36,449 44,758 21,928

 Bank equity capital 235,772 61,455 27,374 43,827 36,448 44,741 21,927

Loans and leases 30-89 days past due 8,980 2,498 1,239 1,560 1,194 2,041 448

Noncurrent loans and leases 15,780 5,531 2,178 2,965 1,617 2,590 898

Restructured loans and leases 9,422 2,567 1,412 2,495 1,095 1,094 758

Mortgage-backed securities 185,267 55,149 20,827 32,872 22,189 35,738 18,491

Earning assets 1,968,433 516,895 226,421 363,078 308,255 377,705 176,079

FHLB Advances 100,874 41,457 10,342 14,792 14,913 14,359 5,012

Unused loan commitments 271,012 70,006 29,390 50,492 45,206 48,549 27,369

Trust assets 294,226 62,945 12,954 78,413 79,557 47,965 12,391

Assets securitized and sold 16,746 4,197 526 6,008 810 622 4,582

Notional amount of derivatives 51,852 18,920 6,006 8,737 6,989 7,164 4,035

INCOME DATA

Total interest income $19,754 $4,950 $2,364 $3,557 $3,130 $3,984 $1,769

Total interest expense 2,217 714 266 391 355 362 130

Net interest income 17,537 4,236 2,098 3,167 2,776 3,622 1,639

Provision for loan and lease losses 760 280 66 65 109 205 35

Total noninterest income 5,024 942 546 1,278 730 931 597

Total noninterest expense 15,451 3,629 1,963 3,013 2,350 3,091 1,405

Securities gains (losses) 77 27 9 12 10 13 6

Applicable income taxes 1,279 335 151 259 168 138 227

Extraordinary gains, net 6 2 2 2 0 0 0

Total net income (includes minority interests) 5,154 963 476 1,121 888 1,132 575

 Bank net income 5,149 961 475 1,120 888 1,131 575

Net charge-offs 674 164 100 132 102 155 22

Cash dividends 3,308 418 263 805 609 826 388

Retained earnings 1,841 543 212 315 279 305 187

Net operating income 5,082 938 466 1,109 879 1,119 571

* See Table V-A (page 11) for explanations.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Fourth Quarter 2015, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Fourth Quarter 2015, Geographic Regions*

 4th Quarter 

2015

3rd Quarter 

2015 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.06 4.08 3.88 4.22 3.95 4.10 4.26 4.07

Cost of funding earning assets 0.46 0.46 0.56 0.47 0.43 0.46 0.39 0.30

Net interest margin 3.60 3.62 3.32 3.75 3.52 3.64 3.87 3.77

Noninterest income to assets 0.96 0.95 0.69 0.90 1.32 0.89 0.92 1.28

Noninterest expense to assets 2.95 2.91 2.66 3.23 3.10 2.86 3.06 3.01

Loan and lease loss provision to assets 0.15 0.11 0.20 0.11 0.07 0.13 0.20 0.07

Net operating income to assets 0.97 0.99 0.69 0.77 1.14 1.07 1.11 1.22

Pretax return on assets 1.23 1.31 0.95 1.03 1.42 1.29 1.25 1.72

Return on assets 0.98 1.00 0.70 0.78 1.15 1.08 1.12 1.23

Return on equity 8.78 8.92 6.29 6.96 10.25 9.78 10.16 10.54

Net charge-offs to loans and leases 0.19 0.14 0.17 0.25 0.20 0.18 0.24 0.07

Loan and lease loss provision to net charge-offs 112.75 116.78 170.76 66.55 49.31 107.56 132.22 156.16

Efficiency ratio 67.95 67.26 68.98 73.84 67.49 66.57 67.54 62.49

Net interest income to operating revenue 77.73 77.89 81.81 79.35 71.25 79.17 79.55 73.30

% of unprofitable institutions 9.57 5.33 11.53 15.24 8.90 7.74 8.12 9.79

% of institutions with earnings gains 56.51 58.38 56.59 57.41 56.61 55.56 56.66 57.67

Table V-B. Full Year 2015, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks Full Year 2015, Geographic Regions*

Full Year 

2015

Full Year 

2014 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.03 4.10 3.87 4.15 3.94 4.05 4.23 4.05

Cost of funding earning assets 0.46 0.49 0.56 0.48 0.44 0.46 0.39 0.30

Net interest margin 3.57 3.61 3.31 3.67 3.51 3.59 3.84 3.74

Noninterest income to assets 0.96 0.89 0.70 0.92 1.30 0.91 0.93 1.17

Noninterest expense to assets 2.90 2.93 2.62 3.15 3.08 2.77 3.00 3.02

Loan and lease loss provision to assets 0.12 0.13 0.17 0.09 0.07 0.11 0.15 0.05

Net operating income to assets 0.98 0.91 0.69 0.80 1.11 1.14 1.14 1.12

Pretax return on assets 1.27 1.19 1.04 1.07 1.42 1.38 1.34 1.60

Return on assets 1.00 0.93 0.72 0.82 1.12 1.16 1.15 1.13

Return on equity 8.92 8.46 6.43 7.32 10.01 10.56 10.57 9.55

Net charge-offs to loans and leases 0.14 0.21 0.16 0.17 0.16 0.11 0.16 0.03

Loan and lease loss provision to net charge-offs 124.29 93.08 150.48 82.37 65.53 153.62 145.56 227.61

Efficiency ratio 67.56 69.11 68.57 73.13 67.39 64.93 66.80 64.60

Net interest income to operating revenue 77.62 79.02 81.58 78.52 71.43 78.60 79.27 74.79

% of unprofitable institutions 4.81 6.44 6.89 9.12 5.12 2.42 3.33 6.35

% of institutions with earnings gains 63.40 63.62 61.53 63.39 64.80 64.58 60.06 68.25

* See Table V-A (page 11) for explanations.
2 0 1 6  •Volume 1 0  • Number 1

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

December 31, 2015

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 0.60 0.56 0.74 0.64 0.51 0.73 0.31

Construction and development 0.42 0.42 0.51 0.31 0.36 0.47 0.31

Nonfarm nonresidential 0.38 0.38 0.43 0.38 0.38 0.45 0.20

Multifamily residential real estate 0.16 0.16 0.14 0.23 0.12 0.21 0.08

Home equity loans 0.46 0.50 0.50 0.48 0.27 0.62 0.26

Other 1-4 family residential 1.03 0.90 1.36 1.12 0.81 1.28 0.63

Commercial and industrial loans 0.50 0.51 0.56 0.35 0.58 0.57 0.44

Loans to individuals 1.83 2.86 1.90 1.09 1.11 2.36 0.93

Credit card loans 2.01 2.27 1.27 2.10 3.22 0.98 0.93

Other loans to individuals 1.83 2.88 1.91 1.06 0.99 2.40 0.93

All other loans and leases (including farm) 0.40 0.31 0.23 0.26 0.39 0.64 0.37

Total loans and leases 0.62 0.62 0.75 0.60 0.53 0.78 0.36

Percent of Loans Noncurrent**

All loans secured by real estate 1.14 1.35 1.41 1.27 0.75 0.98 0.70

Construction and development 1.52 1.66 2.76 1.57 1.32 0.89 1.16

Nonfarm nonresidential 1.00 1.12 1.16 1.18 0.88 0.88 0.57

Multifamily residential real estate 0.40 0.22 0.85 0.75 0.43 0.77 0.12

Home equity loans 0.73 0.86 0.66 0.79 0.39 0.56 0.67

Other 1-4 family residential 1.49 1.97 1.42 1.57 0.78 1.21 0.97

Commercial and industrial loans 1.10 1.20 0.99 0.94 1.00 1.31 0.95

Loans to individuals 0.69 0.77 1.04 0.49 0.46 0.90 0.36

Credit card loans 1.10 1.35 0.47 1.16 1.40 0.74 0.81

Other loans to individuals 0.67 0.75 1.05 0.46 0.42 0.90 0.33

All other loans and leases (including farm) 0.81 3.35 0.48 0.38 0.37 0.44 0.60

Total loans and leases 1.10 1.38 1.32 1.14 0.71 1.00 0.72

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.08 0.11 0.11 0.12 0.04 0.06 -0.04

Construction and development 0.05 0.17 0.18 0.03 -0.15 0.04 -0.06

Nonfarm nonresidential 0.08 0.15 0.09 0.10 0.07 0.05 -0.05

Multifamily residential real estate 0.03 0.02 0.08 0.06 0.01 0.07 0.00

Home equity loans 0.12 0.14 0.13 0.19 0.07 0.05 0.00

Other 1-4 family residential 0.11 0.11 0.11 0.18 0.08 0.09 -0.02

Commercial and industrial loans 0.26 0.24 0.30 0.28 0.21 0.37 0.10

Loans to individuals 0.80 0.97 0.80 0.59 0.77 0.87 0.69

Credit card loans 4.35 3.96 1.65 3.57 10.24 1.46 1.92

Other loans to individuals 0.66 0.86 0.79 0.47 0.29 0.86 0.59

All other loans and leases (including farm) 0.15 0.16 0.24 0.15 0.08 0.20 0.40

Total loans and leases 0.14 0.16 0.17 0.16 0.11 0.16 0.03

Loans Outstanding (in billions)

All loans secured by real estate $1,094.6 $329.1 $135.3 $197.5 $150.0 $187.8 $94.9

Construction and development 93.6 18.2 15.4 12.6 12.3 27.0 8.1

Nonfarm nonresidential 418.6 116.3 57.8 71.9 49.5 75.9 47.3

Multifamily residential real estate 92.0 48.4 6.2 14.7 7.6 6.6 8.4

Home equity loans 50.6 17.1 7.6 11.7 4.7 4.4 5.1

Other 1-4 family residential 376.5 127.1 44.1 71.4 48.8 62.1 23.0

Commercial and industrial loans 196.4 48.2 19.0 36.6 32.1 42.0 18.5

Loans to individuals 60.0 12.7 6.7 12.0 9.9 13.6 5.1

Credit card loans 2.2 0.5 0.1 0.4 0.5 0.3 0.3

Other loans to individuals 57.8 12.3 6.5 11.6 9.4 13.3 4.8

All other loans and leases (including farm) 87.8 11.9 3.9 14.5 34.5 17.0 5.9

Total loans and leases 1,438.8 401.9 164.9 260.7 226.4 260.4 124.5

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 271,012 70,006 29,390 50,492 45,206 48,549 27,369

Construction and development: 1-4 family residential 21,987 4,720 3,755 2,467 2,617 6,149 2,279

Construction and development: CRE and other 53,064 15,959 7,333 7,739 5,914 11,959 4,160

Commercial and industrial 90,942 22,310 8,430 19,199 15,213 16,182 9,608

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

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

FDIC QUARTERLY 23

Insurance Fund Indicators

DIF Reserve Ratio Rises 2 Basis Points to 1.11 Percent

Insured Deposits Increase by 1.8 Percent

Two Institutions Failed During Fourth Quarter

Total assets of the 6,182 FDIC-insured institutions increased by 1.1 percent ($167.8 billion) 

during the fourth quarter of 2015. Total deposits increased by 1.7 percent ($199.4 billion), 

domestic office deposits increased by 2.4 percent ($255.9 billion), and foreign office deposits decreased by 4.2 percent ($56.5 billion). Domestic interest-bearing deposits increased 

by 2.8 percent ($215.1 billion), and noninterest-bearing deposits increased by 1.4 percent 

($40.7 billion). For the 12 months ending December 31, total domestic deposits grew by 

5.2 percent ($536.9 billion), with interest-bearing deposits and noninterest-bearing deposits each increasing by 5.2 percent ($388.8 billion and $148.1 billion, respectively).1

 Other 

borrowed money increased by 5.1 percent, securities sold under agreements to repurchase 

declined by 16.4 percent, and foreign office deposits declined by 8 percent over the same 

12-month period.2

Total estimated insured deposits increased by 1.8 percent in the fourth quarter of 2015.3 For 

institutions existing at the start and the end of the most recent quarter, insured deposits 

increased during the quarter at 4,311 institutions (70 percent), decreased at 1,846 institutions 

(30 percent), and remained unchanged at only 32 institutions. Estimated insured deposits 

increased by 5.3 percent over the 12 months ending December 31, 2015.

The DIF increased by $2.5 billion during the fourth quarter of 2015 to $72.6 billion (unaudited). Assessment income of $2.2 billion and a negative provision for insurance losses of 

$930 million were the main drivers behind the fund balance increase. Interest on investments and other miscellaneous income added another $140 million to the fund. Fourth 

quarter operating expenses and unrealized losses on available for sale securities reduced 

the fund balance by $745 million. For all of 2015, eight insured institutions failed, with 

combined assets of $6.7 billion, at a current estimated cost to the DIF of $0.8 billion. The 

DIF’s reserve ratio was 1.11 percent on December 31, up from 1.09 percent at September 

30, 2015, and 1.01 percent four quarters ago. In 2011, as part of the FDIC’s long-term fund 

management plan, the FDIC Board of Directors adopted a lower rate schedule for regular 

risk-based assessments that will go into effect the quarter after the DIF reserve ratio first 

meets or exceeds 1.15 percent.4

Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets minus average tangible equity.5 Revisions to insurance assessment rates 

and risk-based pricing rules for large banks (banks with assets greater than $10 billion) also 

became effective on that date.6 Table 1 shows the distribution of the assessment base as of 

December 31, by institution asset size category.

1 Throughout the insurance fund discussion, FDIC-insured institutions include insured commercial banks and savings 

associations and, except where noted, exclude insured branches of foreign banks. 

2 Other borrowed money includes FHLB advances, term federal funds, mortgage indebtedness, and other borrowings.

3 Figures for estimated insured deposits in this discussion include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

4 Adoption of Federal Deposit Insurance Corporation Restoration Plan, 75 Fed. Reg. 66293 (Oct. 27, 2010).

5 There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank.

6 The Fourth Quarter 2010 Quarterly Banking Profile includes a more detailed explanation of these changes.
2 0 1 6  •Volume 1 0  • Number 1

24 FDIC QUARTERLY

Dodd-Frank requires that, for at least five years, the FDIC must make available to the public 

the reserve ratio and the DRR using both estimated insured deposits and the new assessment base as the denominator. As of December 31, 2015, the FDIC reserve ratio would have 

been 0.53 percent using the new assessment base (compared to 1.11 percent using estimated 

insured deposits), and the 2 percent DRR using estimated insured deposits would have been 

0.95 percent using the new assessment base.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

Distribution of the Assessment Base for FDIC-Insured Institutions* 

by Asset Size

Data as of December 31, 2015

Asset Size Number of Institutions

Percent of 

Total Institutions

Assessment Base** 

($ Bil.) Percent of Base

Less Than $1 Billion 5,480 88.6 $1,144.3 8.3

$1 - $10 Billion 595 9.6 1,485.9 10.8

$10 - $50 Billion 67 1.1 1,348.2 9.8

$50 - $100 Billion 14 0.2 861.2 6.2

Over $100 Billion 26 0.4 8,939.7 64.9

Total 6,182 100.0 13,779.4 100.0

* Excludes insured U.S. branches of foreign banks.

** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.

Table 1
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

DIF Reserve Ratios

Percent of Insured Deposits

0.79 0.80

0.84

0.88

1.01 1.03

1.09

0.45

0.60

0.64

0.68

1.06

1.11

12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

4th 

Quarter 

2015

3rd 

Quarter 

2015

2nd 

Quarter 

2015

1st 

Quarter 

2015

4th 

Quarter 

2014

3rd 

Quarter 

2014

2nd 

Quarter 

2014

1st 

Quarter 

2014

4th 

Quarter 

2013

3rd 

Quarter 

2013

2nd 

Quarter 

2013

1st 

Quarter 

2013

4th 

Quarter 

2012

Beginning Fund Balance $70,115 $67,589 $65,296 $62,780 $54,320 $51,059 $48,893 $47,191 $40,758 $37,871 $35,742 $32,958 $25,224

Changes in Fund Balance:

Assessments earned 2,160 2,170 2,328 2,189 2,030 2,009 2,224 2,393 2,224 2,339 2,526 2,645 2,937

Interest earned on 

investment securities 128 122 113 60 70 80 87 45 23 34 54 -9 66

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 302 156 0 0 0

Operating expenses 447 410 434 396 408 406 428 422 436 298 439 436 469

Provision for insurance 

losses -930 -578 -317 -426 -6,787 -1,663 -204 348 -4,588 -539 -33 -499 -3,344

All other income, 

net of expenses 12 2 3 6 -43 6 6 9 9 46 51 55 1,878

Unrealized gain/(loss) on 

available-for-sale 

securities -298 64 -34 231 24 -91 73 25 -277 71 -96 30 -22

Total fund balance change 2,485 2,526 2,293 2,516 8,460 3,261 2,166 1,702 6,433 2,887 2,129 2,784 7,734

Ending Fund Balance 72,600 70,115 67,589 65,296 62,780 54,320 51,059 48,893 47,191 40,758 37,871 35,742 32,958

Percent change from 

 four quarters earlier 15.64 29.08 32.37 33.55 33.03 33.27 34.82 36.79 43.19 61.58 66.88 133.73 178.67

Reserve Ratio (%) 1.11 1.09 1.06 1.03 1.01 0.88 0.84 0.80 0.79 0.68 0.64 0.60 0.45

Estimated Insured 

Deposits** 6,539,610 6,421,682 6,350,089 6,352,398 6,211,181 6,141,721 6,109,657 6,120,755 6,010,810 5,967,515 5,951,080 5,999,571 7,405,000

Percent change from 

 four quarters earlier 5.29 4.56 3.94 3.78 3.33 2.92 2.66 2.02 -18.83 -17.67 -15.96 -14.67 6.19

Domestic Deposits 10,949,935 10,695,505 10,629,336 10,616,459 10,408,189 10,213,201 10,099,416 9,962,545 9,825,480 9,631,665 9,424,637 9,454,796 9,474,721

Percent change from 

 four quarters earlier 5.21 4.72 5.25 6.56 5.93 6.04 7.16 5.37 3.70 6.02 5.45 6.85 7.88

Assessment Base*** 13,828,256 13,670,904 13,604,119 13,526,103 13,337,796 13,107,188 12,905,380 12,796,637 12,743,536 12,527,706 12,485,932 12,433,502 12,435,091

Percent change from 

 four quarters earlier 3.68 4.30 5.41 5.70 4.66 4.63 3.36 2.92 2.48 2.05 2.68 1.28 2.27

Number of Institutions 

Reporting 6,191 6,279 6,357 6,428 6,518 6,598 6,665 6,739 6,821 6,900 6,949 7,028 7,092

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

12/12 $32,958 $7,405,000

3/13 35,742 5,999,571

6/13 37,871 5,951,080

9/13 40,758 5,967,515

12/13 47,191 6,010,810

3/14 48,893 6,120,755

6/14 51,059 6,109,657

9/14 54,320 6,141,721

12/14 62,780 6,211,181

3/15 65,296 6,352,398

6/15 67,589 6,350,089

9/15 70,115 6,421,682

12/15 72,600 6,539,610

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2015 2014 2013 2012 2011 2010

Problem Institutions

Number of institutions 183 291 467 651 813 884

Total assets $46,780 $86,712 $152,687 $232,701 $319,432 $390,017

Failed Institutions

Number of institutions 8 18 24 51 92 157

Total assets**** $6,706 $2,914 $6,044 $11,617 $34,923 $92,085

* Quarterly financial statement results are unaudited.

** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act 

(Dodd-Frank) temporarily provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012.

*** 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.
2 0 1 6  •Volume 1 0  • Number 1

26 FDIC QUARTERLY

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

(dollar figures in millions)

December 31, 2015

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 5,338 $14,893,442 $10,064,574 $5,827,890

 FDIC-Supervised 3,544 2,411,332 1,884,665 1,354,176

 OCC-Supervised 992 10,149,584 6,602,529 3,651,081

 Federal Reserve-Supervised 802 2,332,525 1,577,380 822,633

FDIC-Insured Savings Institutions 844 1,074,481 840,391 682,939

 OCC-Supervised Savings Institutions 404 679,488 545,274 447,700

 FDIC-Supervised Savings Institutions 403 371,096 276,469 220,041

 Federal Reserve-Supervised 37 23,897 18,648 15,198

Total Commercial Banks and Savings Institutions 6,182 15,967,923 10,904,965 6,510,828

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 105,646 44,970 28,782

Total FDIC-Insured Institutions 6,191 16,073,568 10,949,935 6,539,610

* Excludes $1.4 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, 2015 (dollar figures in billions)

Annual Rate in Basis Points

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base*

Percent of Total 

Assessment Base

2.50-5.00 1,624 25.86 $1,945.9 14.23

5.01-7.50 3,101 49.39 10,235.3 74.87

7.51-10.00 949 15.11 1,012.6 7.41

10.01-15.00 383 6.10 404.0 2.96

15.01-20.00 18 0.29 21.8 0.16

 20.01-25.00 169 2.69 43.6 0.32

 25.01-30.00 1 0.02 0.2 0.00

 30.01-35.00 34 0.54 7.5 0.05

greater than 35.00 0 0.00 0.0 0.00

* 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.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

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

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

institutions, both commercial banks and savings institutions. Tables 

VI-A (Derivatives) and VII-A (Servicing, Securitization, and Asset 

Sales Activities) aggregate information only for insured commercial banks and state-chartered savings banks that file quarterly Call 

Reports. Table VIII-A (Trust Services) aggregates Trust asset and 

income information collected annually from all FDIC-insured institutions. Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through 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 gradually adjusted upward over 

time. For banking offices, banks must have more than one office, and 

the maximum number of offices starts at 40 in 1985 and reaches 75 in 

2010. The maximum level of deposits for any one office is $1.25 billion in deposits in 1985 and $5 billion in deposits in 2010. The 

remaining geographic limitations are also based on maximums for 

the number of states (fixed at 3) and large metropolitan areas (fixed 

at 2) in which the organization maintains offices. Branch office data 

are based on the most recent data from the annual June 30 Summary 

of Deposits Survey that are available at the time of publication.

Finally, the definition establishes an asset-size limit, also adjusted 

upward over time from $250 million in 1985 to $1 billion in 2010, 

below which the limits on banking activities and geographic scope are 

waived. This final step acknowledges the fact that most of those small 

banks that are not excluded as specialty banks meet the requirements 

for banking activities and geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1 billion in 2010.

3 Maximum number of offices indexed to equal 40 in 1985 and 75 in 2010.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $5 billion 

in 2010.
2 0 1 6  •Volume 1 0  • Number 1

28 FDIC QUARTERLY

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed/assisted institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository institutions that are not insured by the FDIC through the DIF are not included in the FDIC Quarterly Banking Profile. U.S. branches of institutions 

headquartered in foreign countries and non-deposit trust companies 

are not included unless otherwise indicated. Efforts are made to obtain 

financial reports for all active institutions. However, in some cases, 

final financial reports are not available for institutions that have closed 

or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports submitted by 

all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to 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, 

i.e., 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.

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home 

state. In addition, institutions may relocate across state lines or 

change their charters, resulting in an inter-regional or inter-industry 

migration, e.g., institutions can move their home offices between 

regions, and savings institutions can convert to commercial banks or 

commercial banks may convert to savings institutions.

ACCOUNTING CHANGES

Accounting for Measurement-Period Adjustments Related to a 

Business Combination 

In September 2015, the Financial Accounting Standards Board 

(FASB) issued Accounting Standards Update (ASU) No. 2015-16, 

“Simplifying the Accounting for Measurement-Period Adjustments.” 

Under Accounting Standards Codification Topic 805, Business 

Combinations (formerly FASB Statement No. 141(R), “Business 

Combinations”), if the initial accounting for a business combination 

is incomplete by the end of the reporting period in which the combination occurs, the acquirer reports provisional amounts in its financial statements for the items for which the accounting is incomplete. 

During the measurement period, the acquirer is required to adjust the 

provisional amounts recognized at the acquisition date, with a corresponding adjustment to goodwill, to reflect new information obtained 

about facts and circumstances that existed as of the acquisition date 

that, if known, would have affected the measurement of the amounts 

recognized as of that date. At present under Topic 805, an acquirer is 

required to retrospectively adjust the provisional amounts recognized 

at the acquisition date to reflect the new information. To simplify the 

accounting for the adjustments made to provisional amounts, ASU 

2015-16 eliminates the requirement to retrospectively account for the 

adjustments. Accordingly, the ASU amends Topic 805 to require an 

acquirer to recognize adjustments to provisional amounts that are 

identified during the measurement period in the reporting period 

in which adjustment amounts are determined. Under the ASU, the 

acquirer also must recognize in the financial statements for the same 

reporting period the effect on earnings, if any, resulting from the 

adjustments to the provisional amounts as if the accounting for the 

business combination had been completed as of the acquisition date. 

In general, the measurement period in a business combination is 

the period after the acquisition date during which the acquirer may 

adjust provisional amounts reported for identifiable assets acquired, 

liabilities assumed, and consideration transferred for the acquiree for 

which the initial accounting for the business combination is incomplete at the end of the reporting period in which the combination 

occurs. Topic 805 provides additional guidance on the measurement 

period, which shall not exceed one year from the acquisition date, 

and adjustments to provisional amounts during this period. 

For institutions that are public business entities, as defined under U.S. 

GAAP, ASU 2015-16 is effective for fiscal years, and interim periods 

within those fiscal years, beginning after December 15, 2015. For 

institutions that are not public business entities (i.e., that are private 

companies), the ASU is effective for fiscal years beginning after 

December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The ASU’s amendments to Topic 805 

should be applied prospectively to adjustments to provisional 

amounts that occur after the effective date of the ASU. Thus, institutions with a calendar year fiscal year that are public business entities 

must apply the ASU to any adjustments to provisional amounts that 

occur after January 1, 2016, beginning with their Call Reports for 

March 31, 2016. Institutions with a calendar year fiscal year that are 

private companies must apply the ASU to any adjustments to provisional amounts that occur after January 1, 2017, beginning with their 

Call Reports for December 31, 2017. Early application of ASU 2015-

16 is permitted in Call Reports that have not been submitted. 

For additional information, institutions should refer to ASU 

2015-16, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Debt Issuance Costs 

In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the 

Presentation of Debt Issuance Costs.” This ASU requires debt issuance costs associated with a recognized debt liability to be presented 

as a direct deduction from the face amount of the related debt liability, similar to debt discounts. The ASU is limited to the presentation 

of debt issuance costs; therefore, the recognition and measurement guidance for such costs is unaffected. At present, Accounting 

Standards Codification (ASC) Subtopic 835-30, Interest—Imputation 

of Interest, requires debt issuance costs to be reported on the balance 

sheet as an asset (i.e., a deferred charge). For Call Report purposes, 

the costs of issuing debt currently are reported, net of accumulated 

amortization, in “Other assets.”

For institutions that are public business entities, as defined under U.S. 

GAAP, ASU 2015-03 is effective for fiscal years, and interim periods 

within those fiscal years, beginning after December 15, 2015. For 

example, institutions with a calendar year fiscal year that are public 

business entities must apply the ASU in their Call Reports beginning 

March 31, 2016. For institutions that are not public business entities 

(i.e., that are private companies), the ASU is effective for fiscal years 

beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Thus, institutions with 

a calendar year fiscal year that are private companies must apply 

the ASU in their December 31, 2016, and subsequent quarterly Call 

Reports. Early adoption of the guidance in ASU 2015-03 is permitted.

Extraordinary Items

In January 2015, the FASB issued ASU No. 2015-01, “Simplifying 

Income Statement Presentation by Eliminating the Concept of 

Extraordinary Items.” This ASU eliminates from U.S. GAAP the 

concept of extraordinary items. At present, ASC Subtopic 225-20, 

Income Statement—Extraordinary and Unusual Items (formerly 

Accounting Principles Board Opinion No. 30, “Reporting the Results 

of Operations”), requires an entity to separately classify, present, and 

disclose extraordinary events and transactions. An event or transaction is presumed to be an ordinary and usual activity of the reporting 

entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction currently meets the criteria for 

extraordinary classification, an institution must segregate the extraordinary item from the results of its ordinary operations and report the 

extraordinary item in its income statement as “Extraordinary items 

and other adjustments, net of income taxes.” 

ASU 2015-01 is effective for fiscal years, and interim periods within 

those fiscal years, beginning after December 15, 2015. Thus, for 

example, institutions with a calendar year fiscal year must begin 

to apply the ASU in their Call Reports for March 31, 2016. Early 

adoption of ASU 2015-01 is permitted provided that the guidance 

is applied from the beginning of the fiscal year of adoption. For Call 

Report purposes, an institution with a calendar year fiscal year must 

apply the ASU prospectively, that is, in general, to events or transactions occurring after the date of adoption. However, an institution 

with a fiscal year other than a calendar year may elect to apply ASU 

2015-01 prospectively or, alternatively, it may elect to apply the ASU 

retrospectively to all prior calendar quarters included in the institution’s year-to-date Call Report income statement that includes the 

beginning of the fiscal year of adoption. 

After an institution adopts ASU 2015-01, any event or transaction 

that would have met the criteria for extraordinary classification 

before the adoption of the ASU should be reported in “Other noninterest income,” or “Other noninterest expense,” as appropriate, unless 

the event or transaction would otherwise be reportable in the income 

statement. In addition, consistent with ASU 2015-01, the agencies 

plan to remove reference to the term “extraordinary items” from the 

Call Report income statement.

For additional information, institutions should refer to ASU 

2015-01, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Accounting by Private Companies for Identifiable Intangible Assets 

in a Business Combination

In December 2014, the FASB issued ASU No. 2014-18, “Accounting 

for Identifiable Intangible Assets in a Business Combination,” which 

is a consensus of the Private Company Council (PCC). This ASU 

provides an accounting alternative that permits a private company, 

as defined in U.S. GAAP (and discussed in a later section of these 

Supplemental Instructions), to simplify the accounting for certain 

intangible assets. The accounting alternative applies when a private 

company is required to recognize or otherwise consider the fair value 

of intangible assets as a result of certain transactions, including when 

applying the acquisition method to a business combination under 

ASC Topic 805, Business Combinations (formerly FASB Statement 

No. 141 (revised 2007), “Business Combinations”).

Under ASU 2014-18, a private company that elects the accounting 

alternative should no longer recognize separately from goodwill:

•Customer-related intangible assets unless they are capable of bein

sold or licensed independently from the other assets of a business, 

and

• Noncompetition agreements.

However, because mortgage servicing rights and core deposit intangibles are regarded as capable of being sold or licensed independently, 

a private company that elects this accounting alternative must recognize these intangible assets separately from goodwill, initially measure 

them at fair value, and subsequently measure them in accordance 

with ASC Topic 350, Intangibles–Goodwill and Other (formerly 

FASB Statement No. 142, “Goodwill and Other Intangible Assets”).

A private company that elects the accounting alternative in 

ASU 2014-18 also must adopt the private company goodwill accounting alternative described in ASU 2014-02, “Accounting for Goodwill.” 

However, a private company that elects the goodwill accounting 

alternative in ASU 2014-02 is not required to adopt the accounting 

alternative for identifiable intangible assets in ASU 2014-18.

A private company’s decision to adopt ASU 2014-18 must be made 

upon the occurrence of the first business combination (or other 

transaction within the scope of the ASU) in fiscal years beginning 

after December 15, 2015. The effective date of the private company’s 

decision to adopt the accounting alternative for identifiable intangible 

assets depends on the timing of that first transaction.

If the first transaction occurs in the private company’s first fiscal year 

beginning after December 15, 2015, the adoption will be effective for 

that fiscal year’s annual financial reporting period and all interim and 

annual periods thereafter. If the first transaction occurs in a fiscal 

year beginning after December 15, 2016, the adoption will be effective in the interim period that includes the date of the transaction and 

subsequent interim and annual periods thereafter.

Early application of the intangibles accounting alternative is permitted for any annual or interim period for which a private company’s 

financial statements have not yet been made available for issuance. 

Customer-related intangible assets and noncompetition agreements 

that exist as of the beginning of the period of adoption should continue to be accounted for separately from goodwill, i.e., such existing 

intangible assets should not be combined with goodwill.
2 0 1 6  •Volume 1 0  • Number 1

30 FDIC QUARTERLY

A bank or savings association that meets the private company definition in U.S. GAAP is permitted, but not required, to adopt ASU 2014-

18 for Call Report purposes and may choose to early adopt the ASU, 

provided it also adopts the private company goodwill accounting 

alternative. If a private institution issues U.S. GAAP financial statements and adopts ASU 2014-18, it should apply the ASU’s intangible 

asset accounting alternative in its Call Report in a manner consistent 

with its reporting of intangible assets in its financial statements.

For additional information on the private company accounting alternative for identifiable intangible assets, institutions should refer to 

ASU 2014-18, which is available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.

Private Company Accounting Alternatives 

In May 2012, the Financial Accounting Foundation, the independent 

private sector organization responsible for the oversight of the FASB, 

approved the establishment of the PCC to improve the process of setting accounting standards for private companies. The PCC is charged 

with working jointly with the FASB to determine whether and in 

what circumstances to provide alternative recognition, measurement, 

disclosure, display, effective date, and transition guidance for private 

companies reporting under U.S. GAAP. Alternative guidance for private companies may include modifications or exceptions to otherwise 

applicable existing U.S. GAAP standards. 

The banking agencies have concluded that a bank or savings association that is a private company, as defined in U.S. GAAP (as discussed 

in a later section of these Supplemental Instructions), is permitted 

to use private company accounting alternatives issued by the FASB 

when preparing its Call Reports, except as provided in 12 U.S.C. 

1831n(a) as described in the following sentence. If the agencies 

determine that a particular accounting principle within U.S. GAAP, 

including a private company accounting alternative, is inconsistent 

with the statutorily specified supervisory objectives, the agencies may 

prescribe an accounting principle for regulatory reporting purposes 

that is no less stringent than U.S. GAAP. In such a situation, an institution would not be permitted to use that particular private company 

accounting alternative or other accounting principle within U.S. 

GAAP for Call Report purposes. The agencies would provide appropriate notice if they were to disallow any accounting alternative under 

the statutory process.

Accounting by Private Companies for Goodwill 

On January 16, 2014, the FASB issued ASU No. 2014-02, 

“Accounting for Goodwill,” which is a consensus of the PCC. This 

ASU generally permits a private company to elect to amortize goodwill on a straight-line basis over a period of ten years (or less than ten 

years if more appropriate) and apply a simplified impairment model 

to goodwill. In addition, if a private company chooses to adopt the 

ASU’s goodwill accounting alternative, the ASU requires the private 

company to make an accounting policy election to test goodwill 

for impairment at either the entity level or the reporting unit level. 

Goodwill must be tested for impairment when a triggering event 

occurs that indicates that the fair value of an entity (or a reporting 

unit) may be below its carrying amount. In contrast, U.S. GAAP does 

not otherwise permit goodwill to be amortized, instead requiring 

goodwill to be tested for impairment at the reporting unit level annually and between annual tests in certain circumstances. The ASU’s 

goodwill accounting alternative, if elected by a private company, is 

effective prospectively for new goodwill recognized in annual periods 

beginning after December 15, 2014, and in interim periods within 

annual periods beginning after December 15, 2015. Goodwill existing as of the beginning of the period of adoption is to be amortized 

prospectively over ten years (or less than ten years if more appropriate). The ASU states that early application of the goodwill accounting 

alternative is permitted for any annual or interim period for which a 

private company’s financial statements have not yet been made available for issuance. 

A bank or savings association that meets the private company definition in ASU 2014-02, as discussed in the following section of these 

Supplemental Instructions (i.e., a private institution), is permitted, 

but not required, to adopt this ASU for Call Report purposes and 

may choose to early adopt the ASU. If a private institution issues U.S. 

GAAP financial statements and adopts the ASU, it should apply the 

ASU’s goodwill accounting alternative in its Call Report in a manner 

consistent with its reporting of goodwill in its financial statements. 

Thus, for example, a private institution with a calendar year fiscal year that chooses to adopt ASU 2014-02 must apply the ASU’s 

provisions in its December 31, 2015, and subsequent quarterly Call 

Reports unless early application of the ASU was elected. This would 

require the private institution to report in its December 31, 2015, Call 

Report one year’s amortization of goodwill existing as of January 1, 

2015, and the amortization of any new goodwill recognized in 2015. 

For additional information on the private company accounting 

alternative for goodwill, institutions should refer to ASU 2014-

02, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Definitions of Private Company and Public Business Entity

According to ASU No. 2014-02, “Accounting for Goodwill,” a private 

company is a business entity that is not a public business entity. ASU 

No. 2013-12, “Definition of a Public Business Entity,” which was 

issued in December 2013, added this term to the Master Glossary 

in the Accounting Standards Codification. This ASU states that a 

business entity, such as a bank or savings association, that meets any 

one of five criteria set forth in the ASU is a public business entity for 

reporting purposes under U.S. GAAP, including for Call Report purposes. An institution that is a public business entity is not permitted 

to apply the private company goodwill accounting alternative discussed in the preceding section when preparing its Call Report.

For additional information on the definition of a public business 

entity, institutions should refer to ASU 2013-12, which is available at 

http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=

1176156316498.

Reporting Certain Government-Guaranteed Mortgage Loans 

Upon Foreclosure 

In August 2014, the FASB issued Accounting Standards Update 

(ASU) No. 2014-14, “Classification of Certain GovernmentGuaranteed Mortgage Loans Upon Foreclosure,” to address diversity 

in practice for how government-guaranteed mortgage loans are 

recorded upon foreclosure. The ASU updates guidance contained in 

ASC Subtopic 310-40, Receivables—Troubled Debt Restructurings by 

Creditors (formerly FASB Statement No. 15, “Accounting by Debtors 

and Creditors for Troubled Debt Restructurings,” as amended), 

because U.S. GAAP previously did not provide specific guidance on 

how to categorize or measure foreclosed mortgage loans that are government guaranteed. The ASU clarifies the conditions under which a 

creditor must derecognize a government-guaranteed mortgage loan 

and recognize a separate “other receivable” upon foreclosure (that is, 

when a creditor receives physical possession of real estate property 

collateralizing a mortgage loan in accordance with the guidance in 

ASC Subtopic 310-40). 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 31

Under the ASU, institutions should derecognize a mortgage loan and 

record a separate other receivable upon foreclosure of the real estate 

collateral if the following conditions are met: 

•The loan has a government guarantee that is not separable from th

loan before foreclosure. 

•At the time of foreclosure, the institution has the intent to conve

the property to the guarantor and make a claim on the guarantee 

and it has the ability to recover under that claim. 

•At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed (tha

is, the real estate property has been appraised for purposes of the 

claim and thus the institution is not exposed to changes in the fair 

value of the property). 

This guidance is applicable to fully and partially governmentguaranteed mortgage loans provided the three conditions identified 

above have been met. In such situations, upon foreclosure, the separate other receivable should be measured based on the amount of the 

loan balance (principal and interest) expected to be recovered from 

the guarantor. 

For institutions that are public business entities, as defined under 

U.S. GAAP (as discussed in an earlier section of these Supplemental 

Instructions), ASU 2014-14 is effective for fiscal years, and interim 

periods within those fiscal years, beginning after December 15, 2014. 

For example, institutions with a calendar year fiscal year that are 

public business entities must apply the ASU in their Call Reports 

beginning March 31, 2015. However, institutions that are not public 

business entities (i.e., that are private companies) are not required 

to apply the guidance in ASU 2014-14 until annual periods ending after December 15, 2015, and interim periods beginning after 

December 15, 2015. Thus, institutions with a calendar year fiscal year 

that are private companies must apply the ASU in their December 31, 

2015, and subsequent quarterly Call Reports. Earlier adoption of the 

guidance in ASU 2014-14 is permitted if the institution has already 

adopted the amendments in ASU No. 2014-04, “Reclassification of 

Residential Real Estate Collateralized Consumer Mortgage Loans 

upon Foreclosure.” 

For additional information, institutions should refer to ASU 

2014-14, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Reclassification of Residential Real Estate Collateralized 

Consumer Mortgage Loans Upon Foreclosure

In January 2014, the FASB issued Accounting Standards Update 

(ASU) No. 2014-04, “Reclassification of Residential Real Estate 

Collateralized Consumer Mortgage Loans upon Foreclosure,” to 

address diversity in practice for when certain loan receivables should 

be derecognized and the real estate collateral recognized. The ASU 

updated guidance contained in Accounting Standards Codification 

Subtopic 310-40, Receivables–Troubled Debt Restructurings by 

Creditors (formerly FASB Statement No.15, “Accounting by Debtors 

and Creditors for Troubled Debt Restructurings,” as amended).

Under prior accounting guidance, all loan receivables were reclassified to other real estate owned (OREO) when the institution, as 

creditor, obtained physical possession of the property, regardless of 

whether formal foreclosure proceedings had taken place. The new 

ASU clarifies when a creditor is considered to have received physical 

possession (resulting from an in-substance repossession or foreclosure) of residential real estate collateralizing a consumer mortgage 

loan. Under the new guidance, physical possession for these residential real estate properties is considered to have occurred and a loan 

receivable would be reclassified to OREO only upon:

•The institution obtaining legal title upon completion of a fo

closure even if the borrower has redemption rights that provide the 

borrower with a legal right for a period of time after foreclosure to 

reclaim the property by paying certain amounts specified by law, or

•The completion of a deed in lieu of foreclosure or similar lega

agreement under which the borrower conveys all interest in the 

residential real estate property to the institution to satisfy the loan.

Loans secured by real estate other than consumer mortgage loans collateralized by residential real estate should continue to be reclassified 

to OREO when the institution has received physical possession of a 

borrower’s real estate, regardless of whether formal foreclosure proceedings take place.

For institutions that are public business entities, as defined under U.S. 

generally accepted accounting principles, ASU 2014-04 is effective for 

fiscal years, and interim periods within those fiscal years, beginning 

after December 15, 2014. For example, institutions with a calendar 

year fiscal year that are public business entities must apply the ASU 

in their Call Reports beginning March 31, 2015. However, institutions that are not public business entities are not required to apply 

the guidance in ASU 2014-04 until annual periods beginning after 

December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Thus, institutions with a calendar year 

fiscal year that are not public business entities must apply the ASU 

in their December 31, 2015, and subsequent quarterly Call Reports. 

Earlier adoption of the guidance in ASU 2014-04 is permitted. 

Entities can elect to apply the ASU on either a modified retrospective 

transition basis or a prospective transition basis. Applying the ASU on 

a prospective transition basis should be less complex for institutions 

than applying the ASU on a modified retrospective transition basis. 

Under the prospective transition method, an institution should apply 

the new guidance to all instances where it receives physical possession 

of residential real estate property collateralizing consumer mortgage 

loans that occur after the date of adoption of the ASU. Under the 

modified retrospective transition method, an institution should apply 

a cumulative-effect adjustment to residential consumer mortgage 

loans and OREO existing as of the beginning of the annual period 

for which the ASU is effective. As a result of adopting the ASU on a 

modified retrospective basis, assets reclassified from OREO to loans 

should be measured at the carrying value of the real estate at the date 

of adoption while assets reclassified from loans to OREO should be 

measured at the lower of the net amount of the loan receivable or the 

OREO property’s fair value less costs to sell at the time of adoption.

For additional information, institutions should refer to ASU 2014-04, 

which is available at http://www.fasb.org/jsp/FASB/Page/SectionPage

&cid=1176156316498.

True-Up Liability Under an FDIC Loss-Sharing Agreement

An insured depository institution that acquires a failed insured institution may enter into a loss-sharing agreement with the FDIC under 

which the FDIC agrees to absorb a portion of the losses on a specified 

pool of the failed institution’s assets during a specified time period. 

The acquiring institution typically records an indemnification asset 

representing its right to receive payments from the FDIC for losses 

during the specified time period on assets covered under the losssharing agreement.

Since 2009, most loss-sharing agreements have included a true-up 

provision that may require the acquiring institution to reimburse the 

FDIC if cumulative losses in the acquired loss-share portfolio are less 
2 0 1 6  •Volume 1 0  • Number 1

32 FDIC QUARTERLY

than the amount of losses claimed by the institution throughout the 

loss-sharing period. Typically, a true-up liability may result because 

the recovery period on the loss-share assets (e.g., eight years) is 

longer than the period during which the FDIC agrees to reimburse 

the acquiring institution for losses on the loss-share portfolio (e.g., 

five years).

Consistent with U.S. GAAP and bank guidance for “Offsetting,” 

institutions are permitted to offset assets and liabilities recognized 

in the Report of Condition when a “right of setoff” exists. Under 

ASC Subtopic 210-20, Balance Sheet—Offsetting (formerly FASB 

Interpretation No. 39, “Offsetting of Amounts Related to Certain 

Contracts”), in general, a right of setoff exists when a reporting 

institution and another party each owes the other determinable 

amounts, the reporting institution has the right to set off the amounts 

each party owes and also intends to set off, and the right of setoff is 

enforceable at law. Because the conditions for the existence of a right 

of offset in ASC Subtopic 210-20 normally would not be met with 

respect to an indemnification asset and a true-up liability under a losssharing agreement with the FDIC, this asset and liability should not be 

netted for Call Report purposes. Therefore, institutions should report 

the indemnification asset gross (i.e., without regard to any true-up 

liability) in Other Assets, and any true-up liability in Other Liabilities.

In addition, an institution should not continue to report assets 

covered by loss-sharing agreements after the expiration of the losssharing period even if the terms of the loss-sharing agreement require 

reimbursements from the institution to the FDIC for certain amounts 

during the recovery period.

Indemnification Assets and Accounting Standards Update 

No. 2012-06 – In October 2012, the FASB issued Accounting 

Standards Update (ASU) No. 2012-06, “Subsequent Accounting 

for an Indemnification Asset Recognized at the Acquisition Date 

as a Result of a Government-Assisted Acquisition of a Financial 

Institution,” to address the subsequent measurement of an indemnification asset recognized in an acquisition of a financial institution that 

includes an FDIC loss-sharing agreement. This ASU amends ASC 

Topic 805, Business Combinations (formerly FASB Statement No. 

141 (revised 2007), “Business Combinations”), which includes guidance applicable to FDIC-assisted acquisitions of failed institutions.

Under the ASU, when an institution experiences a change in the 

cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash flows expected to be 

collected on the assets covered by the loss-sharing agreement, the 

institution should account for the change in the measurement of the 

indemnification asset on the same basis as the change in the assets 

subject to indemnification. Any amortization of changes in the value 

of the indemnification asset should be limited to the lesser of the 

term of the indemnification agreement and the remaining life of the 

indemnified assets.

The ASU is effective for fiscal years, and interim periods within those 

fiscal years, beginning on or after December 15, 2012. For institutions with a calendar year fiscal year, the ASU takes effect January 1, 

2013. Early adoption of the ASU is permitted. The ASU’s provisions 

should be applied prospectively to any new indemnification assets 

acquired after the date of adoption and to indemnification assets 

existing as of the date of adoption arising from an FDIC-assisted 

acquisition of a financial institution. Institutions with indemnification assets arising from FDIC loss-sharing agreements are expected 

to adopt ASU 2012-06 for Call Report purposes in accordance with 

the effective date of this standard. For additional information, refer 

to ASU 2012-06, available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Goodwill Impairment Testing – In September 2011, the FASB issued 

Accounting Standards Update (ASU) No. 2011-08, “Testing Goodwill 

for Impairment,” to address concerns about the cost and complexity of the existing goodwill impairment test in ASC Topic 350, 

Intangibles-Goodwill and Other (formerly FASB Statement No. 142, 

“Goodwill and Other Intangible Assets”). The ASU’s amendments to 

ASC Topic 350 are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 

2011 (i.e., for annual or interim tests performed on or after January 1, 

2012, for institutions with a calendar year fiscal year). Early adoption 

of the ASU was permitted. Under ASU 2011-08, an institution has 

the option of first assessing qualitative factors to determine whether 

it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering all relevant events and circumstances, an institution determines it is unlikely 

(that is, a likelihood of 50 percent or less) that the fair value of a 

reporting unit is less than its carrying amount (including goodwill), 

then the institution does not need to perform the two-step goodwill 

impairment test. If the institution instead concludes that the opposite 

is true (that is, it is likely that the fair value of a reporting unit is less 

than its carrying amount), then it is required to perform the first step 

and, if necessary, the second step of the two-step goodwill impairment test. Under ASU 2011-08, an institution may choose to bypass 

the qualitative assessment for any reporting unit in any period and 

proceed directly to performing the first step of the two-step goodwill 

impairment test.

Accounting for Loan Participations – Amended ASC Topic 860 

(formerly FAS 166) modified the criteria that must be met in order 

for a transfer of a portion of a financial asset, such as a loan participation, to qualify for sale accounting—refer to previously published 

Quarterly Banking Profile notes: http://www5.fdic.gov/qbp/2011mar/

qbpnot.html.

Other-Than-Temporary Impairment – When the fair value of an 

investment in an individual available-for-sale or held-to-maturity 

security is less than its cost basis, the impairment is either temporary 

or other-than-temporary. The amount of the total other-than-temporary impairment related to credit loss must be recognized in earnings, 

but the amount of total impairment related to other factors must be 

recognized in other comprehensive income, net of applicable taxes. 

To determine whether the impairment is other-than-temporary, an 

institution must apply the applicable accounting guidance—refer to 

previously published Quarterly Banking Profile notes: http://www5.

fdic.gov/qbp/2011mar/qbpnot.html.

Accounting Standards Codification – refer to previously published 

Quarterly Banking Profile notes: http://www5.fdic.gov/qbp/2011sep/

qbpnot.html. 

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base has changed to “average consolidated total assets 

minus average tangible equity” with an additional adjustment to the 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 33

assessment base for banker’s banks and custodial banks, as permitted 

under Dodd-Frank. Previously the assessment base was “assessable 

deposits” and consisted of DIF deposits (deposits insured by the 

FDIC Deposit Insurance Fund) in banks’ domestic offices with certain adjustments.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 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.

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-for-sale 

securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 
2 0 1 6  •Volume 1 0  • Number 1

34 FDIC QUARTERLY

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 file a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-based capital groups – definitions:

Capital Ratios Used to Determine Capital Evaluations for Assessment 

Purposes, Effective January 1, 2015*

Capital 

Evaluations

Total RiskBased Capital 

Ratio

Tier 1 RiskBased Capital 

Ratio

Common Equity 

Tier 1 Capital 

Ratio Leverage Ratio

Well 

Capitalized

≥10% ≥8% ≥6.5% ≥5%

Adequately 

Capitalized**

≥8% ≥6% ≥4.5% ≥4%

UndercapitalizedDoes not qualify as either Well Capitalized or 

Adequately Capitalized

* Effective January 1, 2018, the supplemental leverage ratio will be added to capital 

evaluations for deposit insurance assessment purposes. 

**An institution is Adequately Capitalized if it is not Well Capitalized, but satisfies 

each of the listed capital ratio standards for Adequately Capitalized.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 35

Risk Categories and Assessment Rate Schedule – The current 

risk categories became effective January 1, 2007. Capital ratios and 

supervisory ratings distinguish one risk category from another. 

Effective April 1, 2011, risk categories for large institutions (generally those with at least $10 billion in assets) were eliminated. The 

following table shows the relationship of risk categories (I, II, III, IV) 

for small institutions to capital and supervisory groups as well as the 

initial base assessment rates (in basis points) for each risk category. 

Supervisory Group A generally includes institutions with CAMELS 

composite ratings of 1 or 2; Supervisory Group B generally includes 

institutions with a CAMELS composite rating of 3; and Supervisory 

Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment capital 

groups, undercapitalized includes institutions that are significantly or 

critically undercapitalized.

Capital Category

Supervisory Group

A B C

1. Well Capitalized I

5–9 bps II

14 bps

III

23 bps 2. Adequately 

Capitalized

II

14 bps

3. Undercapitalized III

23 bps

IV

35 bps

Effective April 1, 2011, the initial base assessment rates are 5 to 

35 basis points. An institution’s total assessment rate may be less than 

or greater than its initial base assessment rate as a result of additional 

risk adjustments.

The base assessment rates for small institutions in Risk Category I are 

based on a combination of financial ratios and CAMELS component 

ratings (the financial ratios method).

As required by Dodd-Frank, the calculation of risk-based assessment rates for large institutions no longer relies on long-term debt 

issuer ratings. Rates for large institutions are based on CAMELS 

ratings and certain forward-looking financial measures combined 

into two scorecards—one for most large institutions and another for 

the remaining very large institutions that are structurally and operationally complex or that pose unique challenges and risks in case of 

failure (highly complex institutions). In general, a highly complex 

institution is an institution (other than a credit card bank) with more 

than $500 billion in total assets that is controlled by a parent or intermediate parent company with more than $500 billion in total assets 

or a processing bank or trust company with total fiduciary assets of 

$500 billion or more. The FDIC retains its ability to take additional 

information into account to make a limited adjustment to an institution’s total score (the large bank adjustment), which will be used to 

determine an institution’s initial base assessment rate.

Effective April 1, 2011, the three possible adjustments to an institution’s initial base assessment rate are as follows: (1) Unsecured Debt 

Adjustment: An institution’s rate may decrease by up to 5 basis 

points for unsecured debt. The unsecured debt adjustment cannot 

exceed the lesser of 5 basis points or 50 percent of an institution’s 

initial base assessment rate (IBAR). Thus, for example, an institution with an IBAR of 5 basis points would have a maximum unsecured debt adjustment of 2.5 basis points and could not have a total 

base assessment rate lower than 2.5 basis points. (2) Depository 

Institution Debt Adjustment: For institutions that hold 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 small institutions that are not in Risk 

Category I and for large institutions that are not well capitalized or do 

not have a composite CAMELS rating of 1 or 2 may increase (not to 

exceed 10 basis points) if their brokered deposits exceed 10 percent of 

domestic deposits. After applying all possible adjustments (excluding 

the Depository Institution Debt Adjustment), minimum and maximum total base assessment rates for each risk category are as follows:

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

Large and 

Highly Complex 

Institutions

Initial base 

assessment rate 5–9 14 23 35 5–35

Unsecured debt 

adjustment -4.5–0 -5–0 -5–0 -5–0 -5–0

Brokered deposit 

adjustment — 0–10 0–10 0–10 0–10

Total Base 

Assessment rate 2.5–9 9–24 18–33 30–45 2.5–45

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

Beginning in 2007, each institution is assigned a risk-based rate for 

a quarterly assessment period near the end of the quarter following 

the assessment period. Payment is generally due on the 30th day 

of the last month of the quarter following the assessment period. 

Supervisory rating changes are effective for assessment purposes as of 

the examination transmittal date.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special assessment as of June 30, 2009. The special assessment was levied on 

each insured depository institution’s assets minus its Tier 1 capital 

as reported in its report of condition as of June 30, 2009. The special assessment was collected September 30, 2009, at the same time 

that the risk-based assessment for the second quarter of 2009 was 

collected. The special assessment for any institution was capped at 

10 basis points of the institution’s assessment base for the second 

quarter of 2009 risk-based assessment.

Prepaid Deposit Insurance Assessments – In November 2009, 

the FDIC Board of Directors adopted a final rule requiring 

insured depository institutions (except those that are exempted) 

to prepay their quarterly risk-based deposit insurance assessments 

for the fourth quarter of 2009, and for all of 2010, 2011, and 2012, 

on December 30, 2009. For regulatory capital purposes, an institution may assign a zero-percent risk weight to the amount of its 

prepaid deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment program, this program ended with the final application of prepaid 

assessments to the quarterly deposit insurance assessments payable March 29, 2013. The FDIC issued refunds of any unused prepaid deposit insurance assessments on June 28, 2013.

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,” 
2 0 1 6  •Volume 1 0  • Number 1

36 FDIC QUARTERLY

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 & 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.