Quarterly Banking Profile
 

FOURTH QUARTER 2006 

■ Industry Reports Sixth Consecutive Record Earnings Year 

■ Margin Erosion Is Widespread in Fourth Quarter 

■ Profitability Declines at Small Institutions 

■ Mortgage Portfolios Have Rising Delinquencies, Charge-Offs 

■ Corporate Restructurings Affect Reported Results in Fourth Quarter 

■ Deposit Growth Surges at Large Banks in the Fourth Quarter 

Chart 1 Chart 2 

29.5 30.2 30.4 31.1 31.8 31.2 32.5 31.1 

34.0 34.3 34.7 

32.7 

36.9 38.0 38.1 

35.7 

10 

20 

30 

40 

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income (Billions) 

2006 Was Another Record Earnings Year 

3.50 

4.00 

4.50 

Net Interest Margin (%) 

Assets > $100 Million 

Assets < $100 Million 4.19 

Margins Declined in the Fourth Quarter 

3.18 

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

2003 2004 2005 2006

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 3.00 

2002 2003 2004 2005 2006

Industry Earnings Remain Strong Through 

the End of 2006 

FDIC-insured institutions reported total net income of 

$35.7 billion in the fourth quarter of 2006. This was the 

lowest quarterly earnings total in 2006, but it was still more 

than the industry has earned in any quarter prior to 2006. 

Fourth-quarter net income was $3.0 billion (9.3 percent) 

more than insured institutions reported in the last quarter 

of 2005 when large losses in credit-card portfolios hurt 

industry earnings. Fourth-quarter results were affected by 

accounting adjustments triggered by a few large corporate 

restructurings that occurred during the quarter; these 

adjustments had the effect of reducing a number of reported income and expense items. If not for these adjustments, 

industry net income probably would have set a new quarterly record, thanks to large one-time gains at a few big 

institutions. However, core earnings would have still been 

below the levels of the previous three quarters in 2006. 

One-Time Gains Boost Fourth-Quarter Earnings 

Net interest income was $178 million (0.2 percent) higher 

in the fourth quarter than a year earlier. This is the smallest year-over-year increase in quarterly net interest income 

in three years. Without the accounting impact of corporate restructurings, the underlying growth rate would have 

been closer to 3.3 percent. Similarly, the industry reported 

total noninterest income for the quarter of $56.1 billion, or 

$677 million (1.2 percent) more than it reported for the 

fourth quarter of 2005. Adjusted for the effect of the 

restructurings, the increase in noninterest income would 

have been approximately 13.7 percent. Among items that 

were not affected by the restructurings, sales of securities 

and other assets yielded net gains of $624 million in the 

fourth quarter, while extraordinary items contributed 

another $2.1 billion to pretax earnings. This is the largest 

quarterly amount of extraordinary gains ever reported. 

Most of the gains came from the sale of retail branches and 

a trust operation between insured institutions. One negative factor in fourth-quarter results was higher expenses for 

bad loans. The fourth-quarter loan-loss provision of $9.6 

FEDERAL DEPOSIT INSURANCE CORPORATION ALL FDIC-INSURED INSTITUTIONS
 

 

FDIC Quarterly Banking Profile
 

billion was $923 million (10.6 percent) higher than in 

the fourth quarter of 2005, and was the largest quarterly 

loss provision for the industry in two and a half years. 

The average return on assets (ROA) for the fourth 

quarter was 1.21 percent, the same as in the fourth 

quarter of 2005. Year-over-year improvements in quarterly profitability were concentrated among the largest 

institutions. More than half of all institutions — 52.4 

percent — reported lower ROAs in the fourth quarter 

compared to the fourth quarter of 2005. Three out of 

every four institutions reporting lower ROAs also 

reported lower net interest margins. 

Margins Decline at Small Institutions 

About two out of every three insured institutions (64.4 

percent) saw their net interest margins decline between 

the third and fourth quarters of 2006. The industry’s 

average margin declined from 3.38 percent to 3.20 percent, based on reported results. Excluding the accounting impact of corporate restructurings, the industry’s 

fourth-quarter margin would have been closer to 3.30 

percent. In an environment of relatively stable interest 

rates and an inverted yield curve, insured institutions’ 

average funding costs rose more rapidly than their average asset yields. This development is especially problematic for smaller institutions. During 2006, insured 

institutions with assets less than $1 billion obtained 

three-quarters of their net operating revenue (total 

noninterest income plus net interest income) from net 

interest income. Larger institutions obtained only 57.1 

percent of their net operating revenue from net interest 

income. 

Chart 3 

Profitability Remains Strong 

Annual ROA % Annual ROE % 

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

-0.2 

0 

0.2 

0.4 

0.6 

0.8 

1.0 

1.2 

1.4 

1.6 

-2 

0 

2 

4 

6 

8 

10 

12 

14 

16 

ROA 

ROE 

Full-Year Earnings Set a New Record for 

Sixth Consecutive Year 

For the full year, insured institutions earned $145.7 billion, surpassing the record level of 2005 by $11.8 billion 

(8.8 percent). The cumulative effect of accounting for 

mergers that took place during the year, as well as the 

restructurings in the fourth quarter, caused the underlying improvement in income in 2006 to be understated. 

If adjustments are made to industry earnings in 2005 

and 2006 for the impact of purchase accounting for 

mergers, then the year-to-year improvement in profits is 

approximately 9.6 percent. The largest contribution to 

the earnings improvement in 2006 came from noninterest income, which was $18.7 billion (8.4 percent) above 

the level of 2005. Large banks accounted for most of 

the increase in noninterest revenue, as trading income 

increased by $5.1 billion (36.6 percent) and income 

from investment banking activities rose by $2.0 billion 

(20.1 percent). Net interest income was $11.7 billion 

(3.7 percent) higher in 2006, even though the average 

net interest margin declined from 3.52 percent to 3.31 

percent, the lowest annual average since 1988. The 

impact of the margin erosion on net interest income was 

outweighed by strong growth in interest-earning assets, 

which increased by 8.8 percent during 2006. The 

improvement in full-year earnings was also aided by a 

decline in loan-loss provisions, which were $414 million 

(1.4 percent) lower in 2006 than in 2005. Sales of securities and other assets produced $2.8 billion (57.8 percent) less in gains during 2006 than in 2005. As in the 

previous three years, rising interest rates caused the market values of institutions’ fixed-rate securities to decline, 

which contributed to the reduced gains. However, the 

lower securities gains in 2006 were offset by a $2.4-billion increase in extraordinary gains. More than half of 

all insured institutions — 55.9 percent — reported 

Chart 4 

04/06 04/12 05/06 05/12 06/06 06/12 

-2 

-1 

0 

1 

2 

3 

4 

5 

$ Billions 

Quarterly Change in Noncurrent Loans* 

Quarterly Net Charge-Offs 

*Noncurrent loans = 90 days or more past due or in nonaccrual status. 

Mortgage Charge-offs and Noncurrent Mortgages 

Increased in the Fourth Quarter 

FOURTH QUARTER 2006 2 ALL FDIC-INSURED INSTITUTIONS
 

 

 

FDIC Quarterly Banking Profile
 

higher net income in 2006 than in 2005, but only 46.3 

percent of institutions reported higher full-year ROAs. 

Real Estate Loan Charge-offs Are on the Rise 

Net charge-offs in the fourth quarter were $1.7 billion 

(17.2 percent) below the level of a year earlier when 

credit-card losses registered a one-time spike. While 

net charge-offs of credit cards were $2.6 billion (45.7 

percent) less than in the fourth quarter of 2005, chargeoffs on all other loans and leases were $910 million 

(21.6 percent) higher. Among the loan categories with 

increased charge-offs, residential mortgage loans had a 

$590-million (197.8-percent) increase in net chargeoffs, commercial and industrial (C&I) loans had a 

$156-million (12.6 percent) increase, home equity lines 

of credit registered a $135-million (102.6-percent) 

increase, and charge-offs of real estate construction and 

development loans were up by $123 million (455.4 percent). On a positive note, charge-offs of lease financing receivables were $156 million (59.0 percent) lower 

than a year earlier. Other real estate owned (OREO) 

increased for a sixth consecutive quarter, rising by $492 

million (8.8 percent) during the quarter. At $6.1 billion, OREO has grown by 48.4 percent in the last 12 

months and is now at its highest level since the end of 

March 2004. 

Noncurrent Loans Register Strong Increase for 

Second Quarter in a Row 

The industry’s inventory of noncurrent loans (loans 90 

days or more past due or in nonaccrual status) had its 

largest quarterly increase in six years during the fourth 

quarter. Noncurrent loans and leases grew by $4.2 billion (8.0 percent), following a $3.4-billion (6.9-percent) 

increase in the third quarter. At the end of December, 

total noncurrent loans and leases totaled $56.7 billion, a 

three-year high. Residential mortgages had the largest 

increase. Noncurrent mortgage loans grew by $3.1 billion (15.6 percent) during the quarter. The amount of 

real estate construction and development loans that 

were noncurrent increased by $1.0 billion (34.8 percent), and noncurrent home equity loans rose by $492 

million (28.3 percent). One of the few loan categories 

where noncurrent loans declined was C&I loans, where 

noncurrent loans fell $824 million (9.6 percent). The 

percentage of total loans and leases that were noncurrent rose from 0.73 percent to 0.78 percent during the 

quarter. The all-time low point for the noncurrent rate 

is 0.70 percent, reached at midyear 2006. 

Coverage Ratio Falls to Three-Year Low as 

Reserves Shrink 

Reserves for loan losses declined for a second consecutive quarter, falling $225 million (0.3 percent), after a 

$77-million (0.1-percent) decline in the third quarter. 

The industry’s ratio of reserves to total loans and leases 

declined from 1.09 percent to 1.07 percent during the 

quarter and is now at its lowest level since mid-year 

1985. The industry’s “coverage ratio” of reserves to 

noncurrent loans declined from $1.48 in reserves for 

every $1.00 in noncurrent loans to $1.37 during the 

quarter. This is the lowest level for the coverage ratio 

since the third quarter of 2003. 

Growth in Equity Capital Comes from 

Merger-Related Goodwill 

Total equity capital increased by $24.4 billion (2.0 percent) in the fourth quarter. Goodwill increased by 

$31.6 billion (11.2 percent) due to several sizable mergers, while other intangible assets declined by $6.1 billion (5.8 percent), largely as a result of other 

restructuring activities. Tangible equity (equity capital 

minus intangible assets) declined by $1.1 billion (0.1 

percent), the first quarterly decline in two and a half 

Chart 5 Chart 6 

0 

300 

600 

900 

1,200 

1,500 

$ Billions 

Reserves 

Tangible Equity 

Goodwill 

Other Intangibles 

2000 2001 2002 2003 2004 2005 2006 

Goodwill Was the Fastest-Growing Component 

of Equity Capital in the Fourth Quarter 

Sources of Trust Income in 2006 

Other 

Fiduciary 

Accounts 

Custody 

and 

Safekeeping 

Accounts 

30% 

7% Personal Trust 

and Agency 

Accounts 

20% 

RetirementRelated Trust 

and Agency 

Accounts 

16% 

Corporate 

Trust and 

Investment Agency

Other Fiduciary
 

and Related
 

Services Income
 

5% Management Accounts 

Agency Accounts 8% 

14% 

ALL FDIC-INSURED INSTITUTIONS 3 FOURTH QUARTER 2006
 

FDIC Quarterly Banking Profile
 

years. Insured institutions paid a record $33.9 billion 

in dividends in the fourth quarter, and retained earnings totaled only $1.8 billion, a six-year low. 

Lending Growth Slows in Fourth Quarter 

Total loans and leases grew by $66.1 billion (0.9 percent) in the fourth quarter, the smallest quarterly 

increase in almost five years (since the first quarter of 

2002). Residential mortgage loans increased by $1.1 

billion (0.05 percent), the smallest increase in these 

loans in three years. Real estate construction and development loans grew by $20.0 billion (3.7 percent), but 

this increase was a two-year low. Mortgage-backed securities declined by $13.0 billion (1.1 percent), following a 

$5.1-billion decline in the third quarter. Total assets of 

insured institutions increased by $108.7 billion (0.9 percent) during the quarter, the smallest quarterly increase 

in industry assets since the third quarter of 2003. 

Deposit Growth Sets a New Record 

Total deposits increased by $247.2 billion (3.3 percent) 

in the fourth quarter, easily eclipsing the previous record 

quarterly increase of $200.9 billion in the fourth quarter 

of 2004. Deposits in foreign offices increased by $90.2 

billion (8.2 percent), while deposits in domestic offices 

grew by $157.0 billion (2.4 percent). Time deposits in 

domestic offices increased by $30.0 billion (1.2 percent), 

the smallest quarterly increase in two and a half years. 

Other domestic interest-bearing deposits increased by 

$70.4 billion (2.4 percent), and domestic noninterestbearing deposits had a seasonal increase of $56.6 billion 

(4.9 percent). The percentage of total assets that is 

funded by deposits, which hit an all-time low at the end 

of the third quarter, soared in the fourth quarter to 66 

percent, its highest level since the first quarter of 2003. 

Chart 7 

Core Deposit Growth Surged in the Fourth Quarter 

Quarterly Change ($ Billions) 

223 

202 

18 

123 

28 

57 

162 

61 61 

105 122 139 

65 

163 153 

88 

126 

-8 

59 61 75 79 

46 

92 

43 

70 

119 

59 

39 

-6 

178 

0 

100 

200 

Core Deposits


-100
 Volatile Liabilities 

-151 

-200
 

06/03 12/03 06/04 12/04 06/05 12/05 06/06 12/06
 

Nondeposit liabilities declined by $162.8 billion (5.5 

percent) during the fourth quarter. 

Trust Assets, Income Show Strong Growth in 2006 

Total trust assets of FDIC-insured institutions increased 

by $2.8 trillion (16.6 percent) during 2006. Assets in 

non-managed fiduciary accounts increased by $2.2 trillion (17.8 percent), while assets in managed accounts 

rose by $502 billion (12.9 percent). Assets held in custodial and safekeeping accounts increased by $11.0 trillion (29.9 percent) during 2006. Net income from 

fiduciary and related services totaled $9.5 billion in 

2006, an increase of $1.1 billion (12.6 percent). 

No Insured Institutions Fail for Second Year in a Row 

The number of institutions reporting financial results 

declined from 8,744 to 8,681 during the fourth quarter. 

There were 46 new charters added, while 108 charters 

were merged into other institutions. For the tenth consecutive quarter, no FDIC-insured institution failed. In 

2006, there were 191 new charters added, the largest 

annual total since 2000. Mergers absorbed 342 charters 

during the year, the most in any year since 2001. During the fourth quarter, the number of institutions on 

the FDIC’s “Problem List” increased from 47 to 50, and 

total assets of “problem” institutions increased from 

$4.0 billion to $8.3 billion. During the fourth quarter, 

four mutually-owned insured savings institutions with 

$1.0 billion in assets converted to stock ownership. For 

the full year, 22 insured savings institutions with combined assets of $11.8 billion converted from mutual to 

stock ownership. For the third year in a row, the industry added more than 50,000 full-time equivalent 

employees. Insured institutions reported more than 2.2 

million employees in the fourth quarter, a 2.6-percent 

increase over a year earlier. 

Chart 8 

New Charters and Mergers Both Increased 

in 2006 

Number of Institutions 

0 

200 

400 

600 

800 

New Charters 

Mergers 

Failures 

1992 1994 1996 1998 2000 2002 2004 2006 

FOURTH QUARTER 2006 4 ALL FDIC-INSURED INSTITUTIONS
2000 

FDIC Quarterly Banking Profile
 

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

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

Return on equity (%) ................................................................. 12.34 12.73 13.20 15.05 14.08 13.02 13.53 

Core capital (leverage) ratio (%) ............................................... 8.23 8.25 8.11 7.88 7.86 7.79 7.71 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.53 0.50 0.53 0.75 0.90 0.87 0.71 

Net charge-offs to loans (%) ..................................................... 0.38 0.50 0.56 0.78 0.97 0.83 0.59 

Asset growth rate (%) ............................................................... 9.04 7.64 11.35 7.58 7.20 5.44 8.41 

Net interest margin (%) ............................................................. 3.31 3.52 3.54 3.73 3.96 3.78 3.77 

Net operating income growth (%) ............................................. 8.75 11.43 4.02 16.39 17.58 -0.48 1.71 

Number of institutions reporting ................................................ 8,681 8,833 8,976 9,181 9,354 9,614 9,904 

Commercial banks ................................................................. 7,402 7,526 7,631 7,770 7,888 8,080 8,315 

Savings institutions ................................................................ 1,279 1,307 1,345 1,411 1,466 1,534 1,589 

Percentage of unprofitable institutions (%) ............................... 7.65 6.22 5.96 5.99 6.67 8.24 7.53 

Number of problem institutions ................................................. 50 52 80 116 136 114 94 

Assets of problem institutions (in billions) ................................. $8 $7 $28 $30 $39 $40 $24 

Number of failed/assisted institutions ....................................... 0 0 4 3 11 4 7 

* Excludes insured branches of foreign banks (IBAs) 

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

(dollar figures in millions) 

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

4th Quarter 

2006 

3rd Quarter 

2006 

4th Quarter 

2005 

%Change 

05:4-06:4 

8,681 8,744 8,833 -1.7 

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

CONDITION DATA 

2,206,696 2,196,435 2,150,741 2.6 

Total assets ......................................................................................................... $11,860,229 $11,751,526 $10,877,301 9.0 

Loans secured by real estate ........................................................................... 4,507,754 4,464,196 4,140,688 8.9 

1-4 Family residential mortgages .................................................................. 2,176,293 2,175,224 2,042,449 6.6 

Commercial real estate ................................................................................. 904,293 885,996 825,711 9.5 

Construction and development ...................................................................... 564,902 544,937 449,670 25.6 

Home equity lines .......................................................................................... 559,275 554,890 534,257 4.7 

Commercial & industrial loans .......................................................................... 1,214,329 1,180,906 1,085,585 11.9 

Loans to individuals .......................................................................................... 955,269 954,844 947,844 0.8 

Credit cards ................................................................................................... 384,980 383,143 395,203 -2.6 

Farm loans ....................................................................................................... 54,285 54,007 51,695 5.0 

Other loans & leases ........................................................................................ 504,085 515,483 493,536 2.1 

Less: Unearned income ................................................................................... 2,398 2,237 3,156 -24.0 

Total loans & leases ......................................................................................... 7,233,323 7,167,199 6,716,191 7.7 

Less: Reserve for losses .................................................................................. 77,616 77,841 77,371 0.3 

Net loans and leases ........................................................................................ 7,155,708 7,089,358 6,638,821 7.8 

Securities .......................................................................................................... 1,980,476 1,991,892 1,893,176 4.6 

Other real estate owned ................................................................................... 6,058 5,566 4,082 48.4 

Goodwill and other intangibles ......................................................................... 413,384 387,896 344,597 20.0 

All other assets ................................................................................................. 2,304,602 2,276,813 1,996,625 15.4 

Total liabilities and capital ................................................................................... 11,860,228 11,751,526 10,877,301 9.0 

Deposits ........................................................................................................... 7,825,100 7,577,935 7,141,285 9.6 

Domestic office deposits ............................................................................... 6,631,064 6,474,082 6,220,637 6.6 

Foreign office deposits .................................................................................. 1,194,036 1,103,854 920,648 29.7 

Other borrowed funds ....................................................................................... 2,121,003 2,296,787 2,062,879 2.8 

Subordinated debt ............................................................................................ 160,547 146,675 131,428 22.2 

All other liabilities .............................................................................................. 505,341 506,249 422,970 19.5 

Equity capital .................................................................................................... 1,248,238 1,223,880 1,118,738 11.6 

Loans and leases 30-89 days past due ............................................................... 71,764 62,749 58,548 22.6 

Noncurrent loans and leases ............................................................................... 56,721 52,536 49,920 13.6 

Restructured loans and leases ............................................................................ 2,720 3,635 3,341 -18.6 

Direct and indirect investments in real estate ...................................................... 1,090 1,119 1,082 0.8 

Mortgage-backed securities ................................................................................ 1,195,696 1,208,688 1,139,749 4.9 

Earning assets ..................................................................................................... 10,336,437 10,255,782 9,497,973 8.8 

FHLB advances ................................................................................................... 620,881 632,572 598,341 3.8 

Unused loan commitments .................................................................................. 7,554,645 7,703,016 7,121,237 6.1 

Trust assets ......................................................................................................... 19,282,773 18,065,365 16,532,750 16.6 

Assets securitized and sold** .............................................................................. 1,032,112 1,073,407 1,116,167 -7.5 

Notional amount of derivatives** ......................................................................... 132,177,091 127,106,549 101,879,496 29.7 

INCOME DATA 

Full Year 

2006 

Full Year 

2005 %Change 

4th Quarter 

2005 

4th Quarter 

2006 

%Change 

05:4-06:4 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

$643,459 $523,360 

313,323 204,955 

330,135 318,405 

29,335 29,749 

240,711 221,979 

332,292 317,303 

2,080 4,929 

68,267 64,602 

2,680 252 

145,711 133,910 

26,720 31,591 

93,304 73,172 

52,408 60,738 

141,761 130,352 

23.0 

52.9 

3.7 

-1.4 

8.4 

4.7 

-57.8 

5.7 

N/M 

8.8 

-15.4 

27.5 

-13.7 

8.8 

$171,520 $144,210 

89,162 62,029 

82,358 82,180 

9,644 8,721 

56,149 55,472 

80,994 82,028 

624 575 

14,891 15,133 

2,098 332 

35,700 32,677 

8,215 9,917 

33,927 18,701 

1,773 13,976 

33,251 31,963 

18.9 

43.7 

0.2 

10.6 

1.2 

-1.3 

8.5 

-1.6 

N/M 

9.3 

-17.2 

81.4 

-87.3 

4.0 

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

ALL FDIC-INSURED INSTITUTIONS 5 FOURTH QUARTER 2006
FDIC Quarterly Banking Profile
 

TABLE III-A. Full Year 2006, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,681 26 4 1,634 4,713 818 125 412 892 57 

Commercial banks .............................................. 7,402 24 4 1,628 4,246 177 95 370 815 43 

Savings institutions ............................................. 1,279 2 0 6 467 641 30 42 77 14 

Total assets (in billions) ......................................... $11,860.2 $408.4 $2,337.2 $149.2 $4,905.1 $1,444.7 $110.0 $42.2 $119.4 $2,344.0 

Commercial banks .............................................. 10,090.6 406.6 2,337.2 148.7 4,415.7 312.8 41.4 34.7 103.1 2,290.5 

Savings institutions ............................................. 1,769.6 1.8 0.0 0.5 489.4 1,132.0 68.7 7.5 16.3 53.5 

Total deposits (in billions) ...................................... 7,825.1 107.8 1,417.0 122.2 3,517.9 915.3 76.4 29.9 97.5 1,541.2 

Commercial banks .............................................. 6,731.4 107.1 1,417.0 121.7 3,225.9 207.4 31.1 24.5 84.6 1,512.1 

Savings institutions ............................................. 1,093.7 0.8 0.0 0.4 291.9 707.9 45.3 5.4 12.9 29.1 

Net income (in millions) .......................................... 145,711 15,619 22,388 1,771 60,459 13,032 1,990 675 1,226 28,553 

Commercial banks .............................................. 128,640 15,532 22,388 1,765 55,328 3,167 997 282 1,140 28,041 

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

Performance Ratios (%) 

17,071 87 0 6 5,130 9,865 993 392 86 512 

Yield on earning assets .......................................... 6.45 12.85 5.60 6.83 6.73 5.82 8.84 5.39 6.21 6.06 

Cost of funding earning assets .............................. 3.14 4.02 3.34 2.79 3.00 3.31 3.32 2.28 2.49 3.08 

Net interest margin .............................................. 3.31 8.83 2.26 4.04 3.74 2.51 5.52 3.11 3.73 2.99 

Noninterest income to assets ................................. 2.12 11.19 2.31 0.68 1.53 1.24 2.49 8.60 1.06 2.20 

Noninterest expense to assets ............................... 2.93 8.73 2.77 2.73 2.78 2.14 4.66 8.75 3.05 2.72 

Loan and lease loss provision to assets ................ 0.26 2.65 0.23 0.15 0.18 0.12 1.43 0.17 0.11 0.09 

Net operating income to assets ............................. 1.25 4.20 0.90 1.25 1.31 0.84 0.95 1.43 1.05 1.26 

Pretax return on assets .......................................... 1.88 6.52 1.39 1.50 1.86 1.45 2.72 2.51 1.31 1.92 

Return on assets .................................................... 1.28 4.19 1.01 1.24 1.29 0.94 1.77 1.51 1.05 1.26 

Return on equity ..................................................... 12.34 16.81 12.45 11.52 11.82 10.43 14.38 6.94 9.69 12.98 

Net charge-offs to loans and leases ...................... 0.38 3.48 0.48 0.17 0.21 0.15 1.40 0.40 0.19 0.22 

Loan and lease loss provision to net charge-offs ... 109.79 107.59 104.20 136.56 124.39 111.10 126.69 158.12 107.22 78.87 

Efficiency ratio ........................................................ 56.79 44.97 63.77 61.73 56.26 59.23 60.75 68.83 67.84 56.27 

% of unprofitable institutions .................................. 7.65 3.85 0.00 2.51 8.76 9.66 6.40 22.09 3.36 1.75 

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

Condition Ratios (%) 

55.86 76.92 75.00 53.24 64.08 27.14 51.20 45.87 47.53 64.91 

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

Loss allowance to: 

87.15 75.96 85.32 91.56 88.55 91.15 91.24 88.17 91.68 84.81 

Loans and leases ................................................ 1.07 3.82 1.03 1.34 1.11 0.49 1.82 1.42 1.22 0.74 

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

Noncurrent assets plus 

136.84 201.47 121.24 154.57 163.63 70.65 175.73 193.54 150.24 92.48 

other real estate owned to assets ....................... 0.53 1.37 0.40 0.67 0.54 0.56 0.85 0.20 0.55 0.45 

Equity capital ratio .................................................. 10.52 22.88 7.75 10.73 11.17 9.91 14.18 21.09 10.97 9.78 

Core capital (leverage) ratio ................................... 8.23 15.33 6.03 10.35 9.03 7.95 12.94 18.86 10.83 7.20 

Tier 1 risk-based capital ratio ................................. 10.52 12.62 8.26 13.95 10.51 12.78 15.96 44.60 17.81 9.95 

Total risk-based capital ratio .................................. 12.99 15.74 11.84 15.04 12.70 14.44 16.95 45.72 18.98 12.45 

Net loans and leases to deposits ........................... 91.45 262.66 72.36 79.81 95.41 110.39 112.66 30.80 68.04 79.23 

Net loans to total assets ......................................... 60.33 69.35 43.87 65.33 68.43 69.94 78.20 21.81 55.58 52.09 

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

Structural Changes 

55.91 22.85 29.54 81.86 68.74 63.27 68.21 69.10 81.64 52.80 

New Charters ...................................................... 191 0 0 3 50 2 2 128 5 1 

Institutions absorbed by mergers ........................ 342 3 5 32 266 11 1 4 9 11 

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

PRIOR FULL YEARS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Number of institutions .................................. 2005 8,833 33 4 1,685 4,617 887 125 425 995 62

 ............................. 2003 9,181 36 6 1,767 4,254 1,033 157 529 1,308 91

 ............................. 2001 9,614 56 5 1,875 3,967 1,242 228 477 1,663 101 

Total assets (in billions) ............................... 2005 $10,877.3 $358.2 $1,851.2 $142.3 $4,257.3 $1,655.1 $117.3 $47.7 $128.7 $2,319.6

 ............................. 2003 9,075.3 348.4 1,448.0 129.5 2,923.8 1,657.6 146.6 61.1 171.1 2,189.3

 ............................. 2001 7,869.1 334.7 1,176.3 120.1 3,539.1 1,178.8 140.8 49.7 202.9 1,126.7 

Return on assets (%) ................................... 2005 1.30 2.90 0.86 1.27 1.37 1.07 1.55 2.19 1.09 1.41

 ............................. 2003 1.38 4.08 1.10 1.20 1.28 1.38 1.31 1.85 1.06 1.34

 ............................. 2001 1.14 2.89 0.84 1.12 1.12 1.05 1.29 1.84 1.04 1.09 

Net charge-offs to loans & leases (%) ......... 2005 0.50 4.64 0.87 0.18 0.23 0.12 1.44 0.26 0.23 0.25

 ............................. 2003 0.78 5.22 1.40 0.28 0.46 0.18 2.09 1.22 0.38 0.62

 ............................. 2001 

Noncurrent assets plus 

0.83 4.52 0.88 0.36 0.68 0.19 1.39 0.50 0.33 0.75 

OREO to assets (%) ................................ 2005 0.50 1.33 0.46 0.61 0.48 0.56 0.51 0.24 0.54 0.39

 ............................. 2003 0.75 1.63 0.93 0.81 0.68 0.73 0.99 0.33 0.71 0.59

 ............................. 2001 0.87 1.54 1.00 0.81 0.92 0.65 1.30 0.31 0.66 0.64 

Equity capital ratio (%) ................................. 2005 10.29 21.56 8.30 10.54 10.83 9.39 10.11 19.47 10.83 9.53

 ............................. 2003 9.15 16.04 7.39 10.64 9.24 9.10 7.30 16.74 10.45 8.87

 ............................. 2001 8.98 13.12 7.51 10.47 9.46 8.25 7.60 17.56 10.37 7.95 

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

FOURTH QUARTER 2006 6 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile
 

TABLE III-A. Full Year 2006, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,681 3,633 4,399 530 119 1,094 1,217 1,826 2,018 1,753 773 

Commercial banks ............................................... 7,402 3,246 3,662 406 88 575 1,074 1,507 1,914 1,629 703 

Savings institutions .............................................. 1,279 387 737 124 31 519 143 319 104 124 70 

Total assets (in billions) .......................................... $11,860.2 $189.9 $1,290.1 $1,397.7 $8,982.6 $2,214.6 $2,911.4 $2,746.3 $859.8 $652.2 $2,475.9 

Commercial banks ............................................... 10,090.6 170.4 1,039.6 1,076.3 7,804.3 1,575.8 2,750.0 2,593.9 822.8 547.1 1,801.1 

Savings institutions .............................................. 1,769.6 19.5 250.4 321.4 1,178.3 638.8 161.4 152.3 37.0 105.1 674.9 

Total deposits (in billions) ....................................... 7,825.1 155.8 1,035.6 992.4 5,641.3 1,395.9 1,966.8 1,746.9 627.5 494.3 1,593.7 

Commercial banks ............................................... 6,731.4 141.0 847.5 767.6 4,975.3 972.8 1,859.9 1,639.0 602.8 429.9 1,226.9 

Savings institutions .............................................. 1,093.7 14.9 188.1 224.8 666.0 423.0 106.9 107.8 24.7 64.5 366.8 

Net income (in millions) .......................................... 145,711 1,709 14,555 16,332 113,115 27,476 36,278 29,239 14,753 7,677 30,289 

Commercial banks ............................................... 128,640 1,560 12,328 13,741 101,011 21,994 34,941 28,052 14,452 6,535 22,666 

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

Performance Ratios (%) 

17,071 149 2,226 2,591 12,104 5,482 1,337 1,187 301 1,142 7,624 

Yield on earning assets .......................................... 6.45 6.62 6.91 6.73 6.33 6.50 6.46 5.96 7.50 6.75 6.51 

Cost of funding earning assets ............................... 3.14 2.51 2.88 3.04 3.21 3.14 3.20 3.20 2.92 2.82 3.18 

Net interest margin .............................................. 3.31 4.11 4.03 3.69 3.12 3.35 3.26 2.76 4.58 3.93 3.33 

Noninterest income to assets ................................. 2.12 1.18 1.24 1.40 2.38 2.41 1.90 2.12 3.26 1.42 1.89 

Noninterest expense to assets ............................... 2.93 3.61 3.20 2.77 2.90 3.06 2.63 2.77 4.23 3.20 2.79 

Loan and lease loss provision to assets ................. 0.26 0.18 0.18 0.18 0.28 0.46 0.12 0.17 0.37 0.15 0.33 

Net operating income to assets .............................. 1.25 0.92 1.15 1.22 1.27 1.21 1.32 1.09 1.76 1.20 1.21 

Pretax return on assets .......................................... 1.88 1.19 1.59 1.81 1.95 1.88 1.96 1.59 2.63 1.64 1.93 

Return on assets .................................................... 1.28 0.93 1.17 1.22 1.32 1.27 1.31 1.10 1.77 1.23 1.30 

Return on equity ..................................................... 12.34 7.10 11.32 11.47 12.77 10.46 13.30 12.18 16.30 12.06 12.06 

Net charge-offs to loans and leases ....................... 0.38 0.17 0.16 0.20 0.46 0.72 0.18 0.28 0.55 0.21 0.42 

Loan and lease loss provision to net charge-offs ... 109.79 164.98 163.97 135.00 104.29 111.55 109.04 110.44 95.82 110.75 114.04 

Efficiency ratio ........................................................ 56.79 72.52 63.62 57.14 55.46 54.65 54.54 59.99 57.23 63.69 56.08 

% of unprofitable institutions .................................. 7.65 13.40 3.77 2.08 0.00 10.88 11.59 6.41 4.51 5.13 13.71 

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

Condition Ratios (%) 

55.86 50.84 59.04 62.64 61.34 40.68 66.97 44.25 53.32 66.12 70.63 

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

Loss Allowance to: 

87.15 91.82 91.85 90.66 85.83 86.53 86.72 86.52 85.96 89.36 88.76 

Loans and leases ................................................ 1.07 1.31 1.15 1.16 1.04 1.41 0.89 1.15 1.16 1.11 0.90 

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

Noncurrent assets plus 

136.84 137.86 163.05 170.91 127.82 163.09 187.05 126.06 88.93 135.09 121.66 

other real estate owned to assets ....................... 0.53 0.73 0.59 0.51 0.52 0.51 0.34 0.57 1.05 0.62 0.53 

Equity capital ratio .................................................. 10.52 13.03 10.40 10.98 10.42 12.49 10.06 9.07 10.65 10.42 10.92 

Core capital (leverage) ratio ................................... 8.23 13.00 9.99 9.40 7.69 8.98 7.49 7.25 8.76 8.71 9.24 

Tier 1 risk-based capital ratio ................................. 10.52 19.22 13.50 12.29 9.69 12.29 9.37 9.00 10.09 11.99 12.08 

Total risk-based capital ratio .................................. 12.99 20.28 14.62 13.57 12.54 14.37 11.68 11.79 12.81 13.28 14.85 

Net loans and leases to deposits ........................... 91.45 75.30 85.43 94.39 92.48 89.41 91.41 85.25 96.76 80.87 101.25 

Net loans to total assets ......................................... 60.33 61.79 68.57 67.02 58.08 56.35 61.76 54.23 70.61 61.30 65.17 

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

Structural Changes 

55.91 82.06 80.17 70.39 49.62 55.71 59.87 52.99 68.42 75.00 45.30 

New Charters ...................................................... 191 183 4 4 0 22 70 17 12 19 51 

Institutions absorbed by mergers ........................ 342 135 165 31 11 37 78 70 71 48 38 

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

PRIOR FULL YEARS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions ................................... 2005 8,833 3,864 4,339 512 118 1,110 1,227 1,874 2,070 1,791 761

 ............................. 2003 9,181 4,390 4,210 471 110 1,173 1,227 2,011 2,133 1,866 771

 ............................. 2001 9,614 5,063 4,006 444 101 1,263 1,273 2,108 2,216 1,955 799 

Total assets (in billions) ................................ 2005 $10,877.3 $200.8 $1,247.5 $1,393.2 $8,035.8 $2,768.2 $2,683.9 $2,505.8 $803.6 $607.7 $1,508.0

 ............................. 2003 9,075.3 225.7 1,160.5 1,312.6 6,376.5 3,084.9 1,882.6 1,693.8 456.3 563.3 1,394.3

 ............................. 2001 7,869.1 251.2 1,070.7 1,272.5 5,274.7 2,703.4 1,586.7 1,492.9 406.4 543.3 1,136.4 

Return on assets (%) .................................... 2005 1.30 1.00 1.24 1.29 1.31 1.22 1.42 1.00 1.62 1.19 1.60

 ............................. 2003 1.38 0.95 1.18 1.41 1.43 1.28 1.38 1.31 1.63 1.37 1.62

 ............................. 2001 1.14 0.85 1.08 1.26 1.14 1.01 1.11 1.07 1.42 1.25 1.46 

Net charge-offs to loans & leases (%) .......... 2005 0.50 0.20 0.19 0.24 0.61 0.81 0.24 0.33 0.56 0.24 0.70

 ............................. 2003 0.78 0.31 0.36 0.54 0.94 1.16 0.54 0.72 1.09 0.40 0.58

 ............................. 2001 

Noncurrent assets plus 

0.83 0.33 0.35 0.83 0.96 1.02 0.75 0.79 0.80 0.43 0.80 

OREO to assets (%) .................................. 2005 0.50 0.68 0.52 0.44 0.50 0.44 0.30 0.54 0.86 0.73 0.60

 ............................. 2003 0.75 0.83 0.69 0.62 0.78 0.78 0.56 0.86 0.84 0.76 0.76

 ............................. 2001 0.87 0.81 0.70 0.72 0.95 0.89 0.86 0.99 0.77 0.79 0.76 

Equity capital ratio (%) .................................. 2005 10.29 12.16 10.21 10.68 10.18 10.54 9.80 9.23 10.45 10.17 12.40

 ............................. 2003 9.15 11.49 10.05 10.35 8.66 9.05 8.78 8.49 10.59 9.60 10.05

 ............................. 2001 8.98 11.08 9.85 9.49 8.58 8.77 9.62 8.47 8.93 9.38 9.12 

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

ALL FDIC-INSURED INSTITUTIONS 7 FOURTH QUARTER 2006
FDIC Quarterly Banking Profile
 

TABLE IV-A. Fourth Quarter 2006, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,681 26 4 1,634 4,713 818 125 412 892 57 

Commercial banks .............................................. 7,402 24 4 1,628 4,246 177 95 370 815 43 

Savings institutions ............................................. 1,279 2 0 6 467 641 30 42 77 14 

Total assets (in billions) ......................................... $11,860.2 $408.4 $2,337.2 $149.2 $4,905.1 $1,444.7 $110.0 $42.2 $119.4 $2,344.0 

Commercial banks .............................................. 10,090.6 406.6 2,337.2 148.7 4,415.7 312.8 41.4 34.7 103.1 2,290.5 

Savings institutions ............................................. 1,769.6 1.8 0.0 0.5 489.4 1,132.0 68.7 7.5 16.3 53.5 

Total deposits (in billions) ...................................... 7,825.1 107.8 1,417.0 122.2 3,517.9 915.3 76.4 29.9 97.5 1,541.2 

Commercial banks .............................................. 6,731.4 107.1 1,417.0 121.7 3,225.9 207.4 31.1 24.5 84.6 1,512.1 

Savings institutions ............................................. 1,093.7 0.8 0.0 0.4 291.9 707.9 45.3 5.4 12.9 29.1 

Net income (in millions) .......................................... 35,700 3,356 5,665 393 14,946 3,270 465 230 303 7,072 

Commercial banks .............................................. 31,651 3,332 5,665 392 13,803 851 251 138 282 6,938 

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

Performance Ratios (annualized, %) 

4,049 25 0 1 1,144 2,419 214 92 21 134 

Yield on earning assets .......................................... 6.67 12.28 5.71 7.09 6.95 6.60 9.21 5.68 6.46 6.11 

Cost of funding earning assets .............................. 3.47 4.18 3.78 3.09 3.26 3.92 3.48 2.48 2.75 3.26 

Net interest margin .............................................. 3.20 8.10 1.93 4.00 3.69 2.69 5.74 3.20 3.70 2.85 

Noninterest income to assets ................................. 1.91 11.01 1.25 0.69 1.61 1.12 2.44 9.53 1.09 2.10 

Noninterest expense to assets ............................... 2.75 8.41 1.97 2.88 2.79 2.12 4.70 8.77 3.11 2.67 

Loan and lease loss provision to assets ................ 0.33 3.38 0.25 0.19 0.25 0.18 2.17 0.05 0.11 0.09 

Net operating income to assets ............................. 1.13 3.45 0.57 1.08 1.28 0.85 0.58 2.28 1.03 1.17 

Pretax return on assets .......................................... 1.72 5.30 1.11 1.28 1.78 1.39 2.51 3.43 1.26 1.80 

Return on assets .................................................... 1.21 3.44 0.96 1.07 1.23 0.92 1.63 2.19 1.02 1.21 

Return on equity ..................................................... 11.58 13.82 12.26 9.87 11.12 9.83 12.62 10.16 9.29 12.40 

Net charge-offs to loans and leases ...................... 0.46 3.88 0.36 0.28 0.32 0.19 1.62 0.34 0.26 0.29 

Loan and lease loss provision to net charge-offs ... 117.40 122.21 151.87 100.95 113.46 128.49 165.79 68.73 76.54 55.47 

Efficiency ratio ........................................................ 57.33 45.50 68.62 65.63 56.07 57.76 59.94 70.39 68.90 58.16 

% of unprofitable institutions .................................. 11.90 3.85 0.00 10.16 11.35 14.55 16.00 27.91 8.41 3.51 

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

Structural Changes 

52.04 73.08 75.00 52.82 55.59 33.25 45.60 44.66 52.69 52.63 

New Charters ......................................................... 46 0 0 0 13 0 0 32 1 0 

Institutions absorbed by mergers ........................ 108 3 5 6 84 2 1 0 5 2 

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

PRIOR FOURTH QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ................................... 2005 1.21 2.16 0.79 1.12 1.32 1.02 1.35 3.77 0.95 1.31

 ................................ 2003 1.38 4.66 1.22 1.05 1.21 1.26 1.07 3.40 0.93 1.34

 ................................ 2001 1.13 2.72 0.63 0.95 1.07 0.97 1.80 1.66 1.03 1.54 

Net charge-offs to loans & leases (%) ......... 2005 0.60 6.17 0.86 0.26 0.29 0.19 1.67 0.36 0.32 0.30

 ................................ 2003 0.80 5.30 1.36 0.44 0.49 0.13 2.81 0.56 0.44 0.56

 ................................ 2001 1.14 5.53 1.60 0.54 0.94 0.23 1.90 0.70 0.47 0.99 

*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. 

FOURTH QUARTER 2006 8 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile
 

TABLE IV-A. Fourth Quarter 2006, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,681 3,633 4,399 530 119 1,094 1,217 1,826 2,018 1,753 773 

Commercial banks ............................................... 7,402 3,246 3,662 406 88 575 1,074 1,507 1,914 1,629 703 

Savings institutions .............................................. 1,279 387 737 124 31 519 143 319 104 124 70 

Total assets (in billions) .......................................... $11,860.2 $189.9 $1,290.1 $1,397.7 $8,982.6 $2,214.6 $2,911.4 $2,746.3 $859.8 $652.2 $2,475.9 

Commercial banks ............................................... 10,090.6 170.4 1,039.6 1,076.3 7,804.3 1,575.8 2,750.0 2,593.9 822.8 547.1 1,801.1 

Savings institutions .............................................. 1,769.6 19.5 250.4 321.4 1,178.3 638.8 161.4 152.3 37.0 105.1 674.9 

Total deposits (in billions) ....................................... 7,825.1 155.8 1,035.6 992.4 5,641.3 1,395.9 1,966.8 1,746.9 627.5 494.3 1,593.7 

Commercial banks ............................................... 6,731.4 141.0 847.5 767.6 4,975.3 972.8 1,859.9 1,639.0 602.8 429.9 1,226.9 

Savings institutions .............................................. 1,093.7 14.9 188.1 224.8 666.0 423.0 106.9 107.8 24.7 64.5 366.8 

Net income (in millions) .......................................... 35,700 336 3,515 3,908 27,941 7,056 8,784 8,187 3,861 1,770 6,042 

Commercial banks ............................................... 31,651 311 3,044 3,319 24,977 6,052 8,492 7,940 3,788 1,500 3,879 

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

Performance Ratios (annualized, %) 

4,049 25 472 589 2,964 1,004 292 247 73 270 2,163 

Yield on earning assets .......................................... 6.67 7.04 7.15 6.88 6.55 6.86 6.66 6.19 7.76 6.93 6.59 

Cost of funding earning assets ............................... 3.47 2.85 3.18 3.30 3.55 3.40 3.43 3.47 3.12 3.14 3.76 

Net interest margin .............................................. 3.20 4.19 3.97 3.57 3.00 3.45 3.23 2.73 4.65 3.79 2.83 

Noninterest income to assets ................................. 1.91 1.12 1.24 1.43 2.09 2.27 1.76 2.11 3.23 1.37 1.22 

Noninterest expense to assets ............................... 2.75 3.80 3.22 2.79 2.66 3.14 2.60 2.67 4.12 3.17 2.11 

Loan and lease loss provision to assets ................. 0.33 0.23 0.21 0.21 0.37 0.62 0.16 0.25 0.43 0.12 0.37 

Net operating income to assets .............................. 1.13 0.72 1.09 1.15 1.14 1.05 1.22 1.12 1.79 1.09 0.89 

Pretax return on assets .......................................... 1.72 0.93 1.47 1.67 1.78 1.75 1.80 1.63 2.75 1.49 1.41 

Return on assets .................................................... 1.21 0.72 1.10 1.13 1.25 1.28 1.22 1.20 1.83 1.10 0.98 

Return on equity ..................................................... 11.58 5.46 10.54 10.38 12.09 10.26 12.28 13.21 16.63 10.62 9.13 

Net charge-offs to loans and leases ....................... 0.46 0.28 0.24 0.25 0.54 0.94 0.25 0.38 0.69 0.24 0.36 

Loan and lease loss provision to net charge-offs ... 117.40 130.73 122.13 121.50 116.53 116.02 101.87 121.62 87.69 80.63 154.97 

Efficiency ratio ........................................................ 57.33 76.34 65.32 58.33 55.56 57.10 56.07 58.16 55.64 65.61 56.69 

% of unprofitable institutions .................................. 11.90 19.76 6.52 4.72 2.52 14.72 12.90 11.23 10.75 10.33 14.49 

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

Structural Changes 

52.04 49.22 53.83 56.42 52.94 40.13 54.81 46.99 51.83 59.67 59.77 

New Charters ...................................................... 46 44 1 1 0 5 18 2 3 3 15 

Institutions absorbed by mergers ........................ 108 43 46 13 6 9 32 23 16 14 14 

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

PRIOR FOURTH QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) .................................... 2005 1.21 0.81 1.25 1.19 1.22 1.11 1.3 0.96 1.5 1.11 1.58

 ................................ 2003 1.38 0.85 1.15 1.41 1.44 1.34 1.36 1.30 1.62 1.26 1.58

 ................................ 2001 1.13 0.63 1.03 1.37 1.12 0.67 1.48 1.20 1.58 1.26 1.47 

Net charge-offs to loans & leases (%) ......... 2005 0.60 0.31 0.26 0.28 0.73 0.89 0.26 0.44 0.61 0.33 0.95

 ................................ 2003 0.80 0.43 0.48 0.60 0.92 1.06 0.49 0.90 1.40 0.47 0.54

 ................................ 2001 1.14 0.52 0.49 1.17 1.30 1.63 0.93 0.94 1.25 0.58 0.93 

* 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 

ALL FDIC-INSURED INSTITUTIONS 9 FOURTH QUARTER 2006
FDIC Quarterly Banking Profile
 

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

December 31, 2006 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ....................................... 0.98 4.49 1.56 1.21 0.86 1.04 0.79 1.34 1.50 0.88 

Construction and development ...................................... 0.93 0.00 2.48 1.68 0.90 1.48 0.55 0.96 1.40 0.62 

Commercial real estate ................................................. 0.56 0.00 0.67 1.08 0.57 0.38 0.46 1.21 1.18 0.40 

Multifamily residential real estate .................................. 0.40 0.00 0.19 0.95 0.52 0.15 0.15 2.49 0.78 0.28 

Home equity loans ......................................................... 0.69 3.32 0.65 0.53 0.60 0.94 0.41 0.56 0.85 0.68 

Other 1-4 family residential ........................................... 1.30 8.51 2.02 1.87 1.27 1.13 1.09 1.46 1.79 1.16 

Commercial and industrial loans ...................................... 0.56 2.38 0.34 1.56 0.58 0.74 1.38 1.05 1.45 0.40 

Loans to individuals .......................................................... 1.83 2.17 1.90 2.20 1.54 1.53 1.73 2.33 2.28 1.76 

Credit card loans ........................................................... 2.09 2.20 1.91 1.40 1.96 1.65 2.18 3.33 1.47 1.94 

Other loans to individuals .............................................. 1.66 1.87 1.90 2.25 1.48 1.45 1.52 2.20 2.32 1.72 

All other loans and leases (including farm) ...................... 0.55 0.25 0.63 0.67 0.60 0.85 0.10 1.04 0.69 0.37 

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

Percent of Loans Noncurrent** 

0.99 2.11 1.18 1.20 0.84 1.06 1.41 1.42 1.54 0.85 

All real estate loans .......................................................... 0.80 2.67 1.05 0.88 0.73 0.70 0.89 0.76 0.82 1.03 

Construction and development ...................................... 0.71 0.00 1.04 1.56 0.68 1.15 0.40 0.94 0.99 0.68 

Commercial real estate ................................................. 0.59 0.00 0.63 1.15 0.58 0.51 0.54 0.73 1.07 0.50 

Multifamily residential real estate .................................. 0.41 0.00 0.43 0.68 0.49 0.20 0.00 0.42 1.33 0.39 

Home equity loans ......................................................... 0.40 1.79 0.36 0.30 0.34 0.53 0.05 0.14 0.30 0.43 

Other 1-4 family residential ........................................... 1.05 5.65 1.26 0.84 1.05 0.75 1.48 0.82 0.73 1.48 

Commercial and industrial loans ...................................... 0.64 1.64 0.55 1.46 0.64 0.66 1.32 0.97 1.12 0.55 

Loans to individuals .......................................................... 1.20 2.01 1.44 0.73 0.65 0.64 1.08 0.66 0.67 0.71 

Credit card loans ........................................................... 1.88 2.06 1.67 1.26 1.48 1.19 1.94 0.87 1.05 1.72 

Other loans to individuals .............................................. 0.73 1.49 1.33 0.70 0.53 0.27 0.69 0.63 0.65 0.47 

All other loans and leases (including farm) ...................... 0.22 0.17 0.16 0.52 0.30 0.15 0.11 0.29 0.52 0.12 

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

Percent of Loans Charged-off (net, YTD) 

0.78 1.90 0.85 0.87 0.68 0.69 1.03 0.73 0.81 0.80 

All real estate loans .......................................................... 0.08 1.03 0.11 0.06 0.10 0.05 0.07 0.04 0.05 0.04 

Construction and development ...................................... 0.05 0.00 0.12 0.09 0.06 0.08 0.01 0.05 0.07 0.01 

Commercial real estate ................................................. 0.04 2.34 0.00 0.11 0.05 0.02 0.02 0.01 0.05 0.00 

Multifamily residential real estate .................................. 0.02 0.00 0.02 0.02 0.04 0.00 0.00 0.03 0.05 -0.06 

Home equity loans ......................................................... 0.14 1.49 0.15 0.10 0.17 0.08 0.08 0.19 0.05 0.12 

Other 1-4 family residential ........................................... 0.09 0.44 0.10 0.07 0.16 0.05 0.08 0.05 0.04 0.04 

Commercial and industrial loans ...................................... 0.31 3.09 0.11 0.53 0.32 0.23 2.91 0.24 0.46 0.19 

Loans to individuals .......................................................... 2.02 3.64 2.05 0.61 0.90 2.37 1.89 2.27 0.67 1.28 

Credit card loans ........................................................... 3.44 3.74 2.38 3.63 3.11 5.37 3.12 7.72 2.66 3.32 

Other loans to individuals .............................................. 1.06 2.47 1.87 0.43 0.64 0.58 1.17 0.71 0.57 0.82 

All other loans and leases (including farm) ...................... 0.14 0.11 -0.01 0.00 0.29 0.66 0.23 0.05 0.30 0.14 

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

Loans Outstanding (in billions) 

0.38 3.48 0.48 0.17 0.21 0.15 1.39 0.40 0.19 0.22 

All real estate loans .......................................................... $4,507.8 $1.7 $436.5 $54.9 $2,267.1 $942.2 $25.1 $5.8 $47.3 $727.2 

Construction and development ...................................... 564.9 0.0 8.5 5.0 472.1 25.3 0.9 0.4 3.2 49.5 

Commercial real estate ................................................. 904.3 0.0 24.3 14.6 707.5 40.0 2.0 1.5 11.5 102.8 

Multifamily residential real estate .................................. 193.1 0.0 11.1 1.0 118.3 47.4 0.1 0.1 0.8 14.2 

Home equity loans ......................................................... 559.3 1.3 87.2 0.9 211.6 89.5 8.0 0.2 1.8 158.8 

Other 1-4 family residential ........................................... 2,176.3 0.4 260.0 14.9 722.7 739.4 13.9 3.3 26.9 394.8 

Commercial and industrial loans ...................................... 1,214.3 22.7 242.6 14.1 679.5 22.3 7.5 1.3 6.8 217.4 

Loans to individuals .......................................................... 955.3 256.1 182.7 6.5 255.2 44.9 54.2 1.4 8.6 145.5 

Credit card loans ........................................................... 385.0 234.9 55.7 0.4 31.0 17.9 16.8 0.2 0.4 27.8 

Other loans to individuals .............................................. 570.3 21.3 127.0 6.1 224.2 27.0 37.5 1.3 8.2 117.8 

All other loans and leases (including farm) ...................... 558.4 13.9 174.8 23.4 193.9 6.1 0.9 0.8 4.5 140.0 

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

Memo: Other Real Estate Owned (in millions) 

7,235.7 294.5 1,036.6 98.9 3,395.7 1,015.5 87.7 9.4 67.2 1,230.2 

All other real estate owned ............................................... 6,058.4 1.5 564.3 136.4 3,382.0 1,096.2 29.0 16.1 115.0 717.9 

Construction and development ...................................... 574.6 0.0 1.0 14.8 486.1 53.1 0.6 0.9 8.2 9.8 

Commercial real estate ................................................. 1,135.2 0.1 5.0 51.4 924.6 40.5 8.1 8.7 52.0 44.9 

Multifamily residential real estate .................................. 364.6 0.0 0.0 3.4 334.4 13.4 0.0 0.0 6.3 7.2 

1-4 family residential ..................................................... 2,890.5 1.4 179.3 36.4 1,381.0 887.8 25.2 5.8 44.6 329.0 

Farmland ....................................................................... 64.7 0.0 0.0 30.1 27.4 0.0 0.4 0.6 3.6 2.6 

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

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

FOURTH QUARTER 2006 10 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile
 

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

December 31, 2006 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 0.98 1.39 0.95 0.72 1.04 0.78 0.85 1.18 0.93 1.09 1.11 

Construction and development ........................... 0.93 1.15 1.00 0.86 0.93 0.92 0.68 1.46 0.87 0.80 0.89 

Commercial real estate ....................................... 0.56 1.01 0.70 0.50 0.49 0.56 0.41 0.75 0.61 0.65 0.46 

Multifamily residential real estate ........................ 0.40 0.88 0.76 0.50 0.28 0.26 0.38 0.89 0.45 0.90 0.25 

Home equity loans .............................................. 0.69 0.94 0.73 0.66 0.69 0.63 0.74 0.70 0.64 0.57 0.67 

Other 1-4 family residential ................................. 1.30 1.94 1.25 0.90 1.36 0.92 1.14 1.56 1.39 1.89 1.47 

Commercial and industrial loans ............................ 0.56 1.46 0.97 0.78 0.46 0.78 0.40 0.59 0.74 0.71 0.43 

Loans to individuals ............................................... 1.83 2.56 1.77 1.79 1.83 2.09 1.57 1.60 2.27 1.56 1.76 

Credit card loans ................................................. 2.09 2.26 2.16 1.96 2.10 2.24 2.20 1.92 2.11 0.96 1.92 

Other loans to individuals .................................... 1.66 2.56 1.74 1.72 1.63 1.80 1.45 1.48 2.42 1.69 1.66 

All other loans and leases (including farm) ............ 0.55 0.71 0.54 0.59 0.54 1.25 0.43 0.53 0.42 0.70 0.31 

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

Percent of Loans Noncurrent** 

0.99 1.43 0.98 0.81 1.02 1.08 0.81 1.04 1.06 1.05 1.03 

All real estate loans ................................................ 0.80 0.94 0.69 0.67 0.86 0.64 0.48 1.12 1.69 0.90 0.72 

Construction and development ........................... 0.71 1.00 0.83 0.76 0.61 1.00 0.45 1.05 0.88 0.60 0.63 

Commercial real estate ....................................... 0.59 1.02 0.66 0.58 0.53 0.66 0.40 0.85 0.64 0.57 0.42 

Multifamily residential real estate ........................ 0.41 0.99 0.55 0.69 0.28 0.21 0.35 1.27 0.30 1.01 0.18 

Home equity loans .............................................. 0.40 0.48 0.35 0.41 0.40 0.31 0.35 0.44 0.52 0.24 0.42 

Other 1-4 family residential ................................. 1.05 1.00 0.70 0.74 1.14 0.66 0.57 1.59 3.53 1.60 0.85 

Commercial and industrial loans ............................ 0.64 1.25 0.94 0.80 0.57 0.90 0.46 0.72 0.73 0.74 0.51 

Loans to individuals ............................................... 1.20 0.88 0.56 0.72 1.28 1.67 0.79 0.78 1.24 0.52 1.35 

Credit card loans ................................................. 1.88 1.23 1.38 1.54 1.91 2.21 1.72 1.60 1.67 0.94 1.59 

Other loans to individuals .................................... 0.73 0.88 0.49 0.40 0.79 0.63 0.61 0.50 0.80 0.43 1.20 

All other loans and leases (including farm) ............ 0.22 0.61 0.47 0.32 0.18 0.17 0.13 0.25 0.26 0.58 0.25 

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

Percent of Loans Charged-off (net, YTD) 

0.78 0.95 0.71 0.68 0.81 0.86 0.48 0.91 1.31 0.82 0.74 

All real estate loans ................................................ 0.08 0.07 0.05 0.05 0.09 0.09 0.05 0.14 0.08 0.07 0.05 

Construction and development ........................... 0.05 0.10 0.06 0.05 0.05 0.03 0.04 0.10 0.08 0.07 0.02 

Commercial real estate ....................................... 0.04 0.06 0.05 0.04 0.03 0.03 0.03 0.10 0.04 0.06 0.00 

Multifamily residential real estate ........................ 0.02 0.09 0.03 0.04 0.01 0.01 0.07 0.06 -0.10 0.05 0.00 

Home equity loans .............................................. 0.14 0.10 0.06 0.13 0.15 0.06 0.12 0.22 0.18 0.14 0.06 

Other 1-4 family residential ................................. 0.09 0.07 0.05 0.05 0.10 0.14 0.04 0.15 0.07 0.07 0.07 

Commercial and industrial loans ............................ 0.31 0.43 0.40 0.39 0.29 0.47 0.22 0.23 0.61 0.36 0.30 

Loans to individuals ............................................... 2.02 0.66 0.93 1.21 2.18 2.86 1.12 1.18 2.52 0.84 2.32 

Credit card loans ................................................. 3.44 2.83 5.35 2.31 3.48 3.82 3.61 2.90 3.95 1.45 2.90 

Other loans to individuals .................................... 1.06 0.63 0.56 0.83 1.14 1.08 0.68 0.61 1.02 0.69 1.92 

All other loans and leases (including farm) ............ 0.14 0.11 0.18 0.31 0.13 0.23 0.20 0.13 0.14 0.42 0.02 

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

Loans Outstanding (in billions) 

0.38 0.17 0.16 0.20 0.46 0.72 0.18 0.28 0.55 0.21 0.42 

All real estate loans ................................................ $4,507.8 $79.3 $693.6 $703.8 $3,031.1 $748.1 $1,228.5 $870.2 $350.7 $277.4 $1,033.0 

Construction and development ........................... 564.9 10.5 136.1 148.7 269.6 60.2 186.2 116.7 46.1 70.0 85.8 

Commercial real estate ....................................... 904.3 22.0 236.2 217.4 428.7 171.3 235.0 194.8 79.6 84.8 138.7 

Multifamily residential real estate ........................ 193.1 1.7 26.7 41.1 123.5 51.1 22.8 30.2 8.5 6.2 74.3 

Home equity loans .............................................. 559.3 2.6 33.9 43.6 479.2 54.1 178.4 154.0 71.9 18.7 82.2 

Other 1-4 family residential ................................. 2,176.3 33.1 236.1 241.4 1,665.7 407.7 591.0 357.9 127.9 88.8 603.0 

Commercial and industrial loans ............................ 1,214.3 17.3 117.5 137.5 942.1 173.9 282.3 323.1 101.0 71.1 262.9 

Loans to individuals ............................................... 955.3 9.9 50.9 72.9 821.6 267.3 161.5 170.7 98.2 39.1 218.4 

Credit card loans ................................................. 385.0 0.2 4.2 20.1 360.5 176.1 25.6 44.3 49.4 6.9 82.7 

Other loans to individuals .................................... 570.3 9.7 46.7 52.7 461.1 91.2 135.9 126.4 48.8 32.2 135.7 

All other loans and leases (including farm) ............ 558.4 12.5 33.5 34.2 478.2 76.9 142.4 142.7 64.5 16.9 115.0 

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

Memo: Other Real Estate Owned (in millions) 

7,235.7 118.9 895.5 948.4 5,272.9 1,266.2 1,814.7 1,506.7 614.4 404.5 1,629.3 

All other real estate owned .................................... 6,058.4 250.5 1,301.1 732.5 3,774.3 444.8 1,198.8 1,794.3 952.7 690.0 977.8 

Construction and development ........................... 574.6 32.2 274.8 139.2 128.4 37.4 174.4 98.9 92.3 149.2 22.5 

Commercial real estate ....................................... 1,135.2 101.9 499.6 234.0 299.6 99.9 263.6 276.3 165.2 260.1 70.1 

Multifamily residential real estate ........................ 364.6 7.9 38.9 40.6 277.3 4.3 261.7 51.1 16.0 20.8 10.7 

1-4 family residential ........................................... 2,890.5 96.3 438.6 307.2 2,048.4 287.6 467.1 890.1 337.2 204.3 704.0 

Farmland ............................................................. 64.7 12.2 37.2 7.4 8.0 4.8 4.9 3.0 18.2 30.9 2.9 

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

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

ALL FDIC-INSURED INSTITUTIONS 11 FOURTH QUARTER 2006
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FDIC Quarterly Banking Profile
 

TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks 

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

4th Quarter 

2006 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

%Change 

05:4-06:4 

Asset Size Distribution 

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 .............................. 1,011 1,013 991 980 921 9.8 67 615 243 86 

Total assets of institutions reporting derivatives ........................ $8,811,019 $8,407,663 $8,273,695 $8,024,956 $7,718,446 $14 $4,682 $263,821 $751,924 $7,790,592 

Total deposits of institutions reporting derivatives ........................ 5,738,238 5,429,994 5,403,108 5,251,028 5,095,425 12.6 3,731 209,727 547,382 4,977,398 

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

Derivative Contracts by Underlying Risk Exposure 

132,177,091 127,106,549 120,205,363 111,086,848 101,879,496 29.7 136 14,423 85,608 132,076,924 

Interest rate ....................................................................... 107,429,328 103,198,758 98,738,804 92,291,239 84,530,154 27.1 70 14,134 80,525 107,334,600 

Foreign exchange* ............................................................... 12,564,211 12,226,835 12,256,709 11,248,488 9,719,962 29.3 44 68 3,527 12,560,572 

Equity .............................................................................. 2,270,942 2,218,658 1,902,399 1,420,814 1,255,271 80.9 22 217 1,018 2,269,685 

Commodity & other (excluding credit derivatives) ........................ 893,310 1,558,264 738,026 653,859 552,088 61.8 0 3 201 893,107 

Credit ................................................................................ 9,019,299 7,904,034 6,569,425 5,472,449 5,822,021 54.9 0 2 336 9,018,961 

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

Derivative Contracts by Transaction Type 

132,177,091 127,106,549 120,205,363 111,086,848 101,879,496 29.7 136 14,423 85,608 132,076,924 

Swaps ................................................................................ 81,339,492 77,555,615 74,448,925 68,849,645 64,712,262 25.7 13 5,613 62,068 81,271,798 

Futures & forwards .............................................................. 14,877,458 14,482,742 13,788,767 13,044,992 12,056,681 23.4 66 1,960 11,710 14,863,723 

Purchased options .............................................................. 12,944,823 13,301,414 12,367,845 11,579,154 9,412,914 37.5 17 4,912 6,372 12,933,522 

Written options .................................................................... 13,332,146 12,945,852 12,081,020 11,202,371 9,444,637 41.2 40 1,908 4,880 13,325,318 

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

Fair Value of Derivative Contracts 

122,493,919 118,285,624 112,686,556 104,676,161 95,626,494 28.1 136 14,393 85,029 122,394,361 

Interest rate contracts ........................................................... 23,293 22,719 21,194 20,308 21,587 7.9 0 -9 -114 23,416 

Foreign exchange contracts ................................................... 5,324 4,144 4,641 4,012 2,619 103.3 0 0 -18 5,342 

Equity contracts .................................................................... -17,845 -13,526 -9,364 -10,632 -10,428 N/M 1 8 45 -17,900 

Commodity & other (excluding credit derivatives) ........................ 2,658 2,562 2,806 2,769 2,098 26.7 0 0 1 2,657 

Credit derivatives as guarantor ................................................ 31,583 14,671 7,311 10,228 -2,458 N/M 0 0 0 31,583 

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

Derivative Contracts by Maturity**

-32,745 -14,819 -8,992 -9,223 2,430 N/M 0 1 0 -32,746 

Interest rate contracts ........................................... < 1 year 29,547,494 26,615,326 22,679,699 20,701,310 18,483,390 59.9 19 2,621 19,272 29,525,582

 ............................ 1-5 years 31,385,520 30,872,307 31,161,554 29,322,655 27,683,385 13.4 3 7,070 24,595 31,353,852

 ............................ > 5 years 23,273,673 22,518,236 22,835,007 21,145,459 19,825,199 17.4 8 2,469 28,804 23,242,391

 Foreign exchange contracts ................................... < 1 year 7,690,210 6,687,566 7,473,995 6,279,115 5,686,683 35.2 44 16 2,681 7,687,469

 ............................ 1-5 years 1,415,846 1,573,062 1,240,609 1,455,181 1,354,030 4.6 0 13 44 1,415,788

 ............................ > 5 years 592,897 767,427 518,618 721,164 687,179 -13.7 0 11 10 592,876

 Equity contracts ................................................... < 1 year 341,346 333,262 334,732 288,762 321,031 6.3 1 28 211 341,105

 ............................ 1-5 years 220,856 296,151 219,638 200,405 1,427,663 -84.5 9 80 330 220,437

 ............................ > 5 years 44,858 53,988 44,457 34,279 383,131 -88.3 0 0 132 44,726

 Commodity & other contracts .................................. < 1 year 235,107 496,634 230,213 214,997 183,128 28.4 0 0 165 234,942

 ............................ 1-5 years 272,314 274,378 177,869 149,315 734,844 -62.9 0 3 36 272,275

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

Risk-Based Capital: Credit Equivalent Amount 

21,581 14,486 10,426 7,324 176,787 -87.8 0 0 0 21,581 

Total current exposure to tier 1 capital (%) ................................. 29.3 28.6 33.6 32.8 34.2 0.6 0.3 1.5 33.9 

Total potential future exposure to tier 1 capital (%) ..................... 98.1 99.0 90.2 87.7 80.4 0.2 0.3 1.0 113.9 

Total exposure (credit equivalent amount) to tier 1 capital (%) ...... 127.4 127.6 123.9 120.5 114.6 0.9 0.6 2.5 147.8 

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

HELD FOR TRADING 

-25.0 -19.0 -3.0 4.0 47.0 N/M 0.0 0.0 1.0 -26.0 

Number of institutions reporting derivatives .............................. 147 147 149 148 140 5.0 5 39 48 55 

Total assets of institutions reporting derivatives ........................ 7,223,473 6,925,474 6,806,582 6,585,433 6,346,829 13.8 336 16,457 230,650 6,976,030 

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

Derivative Contracts by Underlying Risk Exposure 

4,712,054 4,435,577 4,399,031 4,260,458 4,147,936 13.6 271 13,110 158,223 4,540,449 

Interest rate ....................................................................... 104,691,782 100,299,894 96,221,190 89,810,085 82,020,712 27.6 3 129 35,990 104,655,659 

Foreign exchange ................................................................. 11,788,411 11,207,259 11,206,773 10,214,072 9,194,268 28.2 0 18 2,995 11,785,398 

Equity ................................................................................ 2,266,778 2,214,881 1,898,493 1,416,918 1,251,184 81.2 0 12 431 2,266,335 

Commodity & other .............................................................. 893,087 1,558,095 737,910 649,704 547,896 63.0 0 0 165 892,922 

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

Trading Revenues: Cash & Derivative Instruments 

119,640,057 115,280,129 110,064,365 102,090,779 93,014,060 28.6 3 159 39,582 119,600,314 

Interest rate ....................................................................... 1,146 546 1,665 1,242 840 36.4 0 0 16 1,130 

Foreign exchange ................................................................. 1,613 1,355 2,672 2,311 1,766 -8.7 0 0 3 1,610 

Equity ................................................................................ 1,214 1,827 100 1,801 844 43.8 0 0 0 1,213 

Commodity & other (including credit derivatives) ........................ -111 789 272 313 -292 -62.0 0 0 1 -112 

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

Share of Revenue 

3,861 4,517 4,710 5,666 3,157 22.3 0 0 20 3,841 

Trading revenues to gross revenues (%) ................................. 2.9 3.4 3.6 4.6 2.8 0.0 0.0 0.4 3.1 

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

HELD FOR PURPOSES OTHER THAN TRADING 

19.6 20.7 21.6 26.8 16.5 0.0 0.2 3.0 20.2 

Number of institutions reporting derivatives .............................. 930 933 919 904 856 8.6 60 570 218 82 

Total assets of institutions reporting derivatives ........................ 8,580,889 8,222,975 8,121,056 7,862,456 7,529,664 14.0 4,192 245,507 660,955 7,670,235 

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

Derivative Contracts by Underlying Risk Exposure 

5,576,437 5,304,128 5,298,777 5,138,104 4,959,713 12.4 3,347 194,702 486,206 4,892,181 

Interest rate ....................................................................... 2,737,547 2,898,864 2,517,614 2,481,153 2,509,443 9.1 67 14,004 44,535 2,678,941 

Foreign exchange ................................................................. 111,928 102,685 100,555 96,178 94,712 18.2 44 22 290 111,572 

Equity ................................................................................ 4,164 3,777 3,906 3,896 4,087 1.9 22 205 587 3,350 

Commodity & other .............................................................. 223 169 116 4,155 4,192 N/M 0 3 36 185 

Total notional amount ........................................................... 2,853,862 3,005,495 2,622,191 2,585,383 2,612,434 9.2 133 14,234 45,447 2,794,047 

All line items are reported on a quarterly basis.
 

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

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

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

FOURTH QUARTER 2006 12 ALL FDIC-INSURED INSTITUTIONS
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FDIC Quarterly Banking Profile
 

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

(dollar figures in millions) 

%Change 

05:4-06:4 

4th 

Quarter 

2006 

3rd 

Quarter 

2006 

2nd 

Quarter 

2006 

1st 

Quarter 

2006 

4th 

Quarter 

2005 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than 

$10 Billion 

Assets Sold and Securitized with Servicing Retained or with Recourse or Other 

Seller-Provided Credit Enhancements 

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

Outstanding Principal Balance by Asset Type 

126 121 122 118 118 6.8 17 48 18 43 

1-4 family residential loans .................................................................................... $481,694 $453,900 $417,800 $392,412 $534,584 -9.9 $77 $244 $743 $480,630 

Home equity loans ............................................................................................... 7,846 9,257 9,632 10,768 11,486 -31.7 0 0 508 7,338 

Credit card receivables ........................................................................................ 361,073 422,983 403,434 402,214 402,939 -10.4 0 6,695 6,745 347,633 

Auto loans ......................................................................................................... 16,258 16,781 16,665 16,304 17,997 -9.7 0 0 433 15,825 

Other consumer loans ......................................................................................... 16,105 25,753 24,414 22,165 22,065 -27.0 0 3 0 16,103 

Commercial and industrial loans .............................................................................. 6,309 8,404 10,582 10,703 8,534 -26.1 0 32 4,084 2,193 

All other loans, leases, and other assets* .................................................................. 142,826 136,330 121,506 109,800 118,561 20.5 2 97 915 141,813 

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

Maximum Credit Exposure by Asset Type 

1,032,112 1,073,407 1,004,034 964,366 1,116,167 -7.5 79 7,071 13,427 1,011,535 

1-4 family residential loans .................................................................................... 4,920 4,619 4,336 4,160 3,818 28.9 1 2 18 4,899 

Home equity loans ............................................................................................... 2,263 2,358 2,358 2,387 2,410 -6.1 0 0 22 2,242 

Credit card receivables ........................................................................................ 18,953 25,084 24,495 23,214 23,845 -20.5 0 468 157 18,329 

Auto loans ......................................................................................................... 723 813 806 798 861 -16.0 0 0 17 706 

Other consumer loans .......................................................................................... 1,331 1,653 1,619 1,612 1,826 -27.1 0 0 0 1,331 

Commercial and industrial loans .............................................................................. 293 407 455 464 470 -37.7 0 0 94 199 

All other loans, leases, and other assets .................................................................. 994 761 727 777 1,017 -2.3 1 26 40 927 

Total credit exposure .............................................................................................. 29,479 35,695 34,796 33,411 34,247 -13.9 2 496 347 28,633 

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

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

6,861 7,323 9,359 10,867 11,448 -40.1 6 0 0 6,855 

1-4 family residential loans .................................................................................... 2.8 2.4 2.1 1.8 2.4 0.0 0.0 1.9 2.8 

Home equity loans ............................................................................................... 0.7 0.7 0.6 0.5 0.5 0.0 0.0 1.7 0.7 

Credit card receivables ........................................................................................ 2.0 2.0 1.9 2.0 1.9 0.0 2.5 0.9 2.0 

Auto loans .......................................................................................................... 1.7 1.3 1.1 1.1 1.0 0.0 0.0 1.0 1.7 

Other consumer loans .......................................................................................... 3.3 3.0 2.6 2.5 2.7 0.0 0.0 0.0 3.3 

Commercial and industrial loans .............................................................................. 1.0 1.2 1.2 1.2 1.7 0.0 0.0 1.4 0.5 

All other loans, leases, and other assets .................................................................. 0.2 0.2 0.1 0.1 0.5 0.0 0.0 0.2 0.2 

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

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

2.1 2.0 1.7 1.7 2.0 0.0 2.4 1.1 2.1 

1-4 family residential loans .................................................................................... 1.1 0.9 1.1 1.1 1.3 0.0 0.0 0.4 1.1 

Home equity loans ............................................................................................... 0.6 0.3 0.3 0.3 0.3 0.0 0.0 1.1 0.5 

Credit card receivables ........................................................................................ 1.7 1.6 1.6 1.6 1.4 0.0 1.7 0.6 1.7 

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

Other consumer loans .......................................................................................... 2.4 2.1 2.1 2.1 1.9 0.0 0.0 0.0 2.4 

Commercial and industrial loans .............................................................................. 0.9 0.8 0.9 0.9 1.0 0.0 0.0 1.3 0.2 

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

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

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

1.2 1.1 1.2 1.2 1.2 0.0 1.6 0.8 1.2 

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

Home equity loans ............................................................................................... 0.3 0.2 0.1 0.1 0.2 0.0 0.0 1.1 0.2 

Credit card receivables ........................................................................................ 3.8 2.9 1.9 0.9 5.8 0.0 3.5 1.8 3.8 

Auto loans .......................................................................................................... 0.7 0.5 0.3 0.2 0.4 0.0 0.0 0.4 0.7 

Other consumer loans ......................................................................................... 2.7 1.2 0.7 0.5 3.0 0.0 0.0 0.0 2.7 

Commercial and industrial loans ............................................................................. 2.2 1.2 0.8 0.4 3.0 0.0 0.0 3.6 -0.3 

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

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

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

1.4 1.2 0.8 0.4 2.2 0.0 3.4 2.1 1.4 

Home equity loans ............................................................................................... 656 728 650 586 389 68.6 0 0 26 630 

Credit card receivables ........................................................................................ 74,904 68,885 82,533 72,954 98,534 -24.0 0 456 1,563 72,885 

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

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

2,596 2,891 3,284 2,523 2,885 -10.0 0 0 906 1,690 

Home equity loans ............................................................................................... 10 11 12 12 55 -81.8 0 0 0 10 

Credit card receivables ........................................................................................ 322 184 137 72 93 246.2 0 72 250 0 

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

Assets Sold with Recourse and Not Securitized 

0 0 0 0 0 0.0 0 0 0 0 

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

Outstanding Principal Balance by Asset Type 

711 707 697 690 672 5.8 161 417 89 44 

1-4 family residential loans .................................................................................... 55,411 56,002 54,318 53,866 44,815 23.6 899 6,249 2,125 46,138 

Home equity, credit card receivables, auto, and other consumer loans ........................... 87 115 124 902 668 -87.0 2 32 17 36 

Commercial and industrial loans ............................................................................. 6,457 6,605 6,184 6,112 5,629 14.7 17 83 89 6,268 

All other loans, leases, and other assets .................................................................. 6,807 7,403 12,998 16,607 16,159 -57.9 2 41 242 6,522 

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

Maximum Credit Exposure by Asset Type 

68,762 70,125 73,624 77,486 67,271 2.2 921 6,405 2,472 58,964 

1-4 family residential loans .................................................................................... 12,930 13,698 12,167 11,987 15,410 -16.1 42 1,205 1,257 10,425 

Home equity, credit card receivables, auto, and other consumer loans ........................... 48 47 64 485 169 -71.6 1 10 1 35 

Commercial and industrial loans ............................................................................. 4,288 4,302 4,272 4,132 3,693 16.1 17 61 89 4,121 

All other loans, leases, and other assets .................................................................. 2,356 2,502 2,161 2,678 2,701 -12.8 2 16 169 2,169 

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

Support for Securitization Facilities Sponsored by Other Institutions 

19,622 20,549 18,663 19,281 21,973 -10.7 63 1,292 1,515 16,751 

Number of institutions reporting securitization facilities sponsored by others ....................... 47 48 46 45 48 -2.1 21 14 3 9 

Total credit exposure ................................................................................................ 1,135 958 853 897 751 51.1 6 122 35 972 

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

Other 

6,207 5,066 4,251 4,651 3,459 79.4 0 0 0 6,207 

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

Asset-backed commercial paper conduits 

3,060,504 3,072,166 2,836,994 2,647,317 2,639,013 16.0 8,040 69,146 87,249 2,896,069 

Credit exposure to conduits sponsored by institutions and others ................................... 18,838 19,244 19,293 17,503 19,015 -0.9 2 124 1 18,711 

Unused liquidity commitments to conduits sponsored by institutions and others ................. 222,943 294,329 286,363 288,086 244,263 -8.7 0 0 0 222,943 

Net servicing income (for the quarter) ......................................................................... 2,154 3,381 4,262 4,693 4,406 -51.1 41 165 131 1,816 

Net securitization income (for the quarter) .................................................................... 2,291 6,832 6,293 6,753 4,776 -52.0 0 187 112 1,993 

Total credit exposure to Tier 1 capital (%)*** ................................................................ 5.4 6.1 5.9 6.0 6.6 0.3 1.5 1.5 7.0 

*Line item titled "All other loans and all leases" for quarters prior to March 31, 2006 

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

***Total credit exposure includes the sum of the three line items titled "Total credit exposure" reported above 

ALL FDIC-INSURED INSTITUTIONS 13 FOURTH QUARTER 2006
FDIC Quarterly Banking Profile
 

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

(dollar figures in millions) 

All Insured Institutions Asset Size Distribution 

Dec 31 

2006 

Dec 31 

2005 

Dec 31 

2004 

Dec 31 

2003 

% Change 

2005-2006 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$10 Billion 

Number of institutions reporting ......................................................................... 8,681 8,833 8,976 9,181 -1.7 3,633 4,399 530 119 

Number of institutions with fiduciary powers ...................................................... 2,464 2,513 2,572 2,630 -1.9 616 1,438 322 88 

Commercial banks .......................................................................................... 2,268 2,311 2,369 2,420 -1.9 591 1,334 270 73 

Savings institutions ......................................................................................... 196 202 203 210 -3.0 25 104 52 15 

Number of institutions exercising fiduciary powers ............................................ 1,827 1,865 1,896 1,947 -2.0 400 1,078 269 80 

Commercial banks .......................................................................................... 1,672 1,708 1,740 1,781 -2.1 378 1,003 223 68 

Savings institutions ......................................................................................... 155 157 156 166 -1.3 22 75 46 12 

Number of institutions reporting fiduciary activity ............................................... 1,738 1,790 1,819 1,872 -2.9 373 1,027 260 78 

Commercial banks .......................................................................................... 1,591 1,642 1,670 1,721 -3.1 351 955 218 67 

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

Fiduciary and related assets - managed assets 

147 148 149 151 -0.7 22 72 42 11 

Personal trust and agency accounts .................................................................. 764,866 735,823 740,141 741,696 3.9 12,382 68,865 74,533 609,086 

Noninterest-bearing deposits .......................................................................... 17 364 553 294 -95.3 23 82 23 -111 

Interest-bearing deposits ................................................................................. 9,361 8,013 7,507 15,752 16.8 273 2,317 1,139 5,632 

U.S. Treasury and U.S. Government agency obligations ............................... 32,868 34,664 34,519 36,575 -5.2 1,175 4,967 5,414 21,313 

State, county and municipal obligations .......................................................... 70,910 73,332 77,554 80,051 -3.3 997 5,428 6,957 57,529 

Money market mutual funds ............................................................................ 38,063 33,640 33,442 36,123 13.1 1,082 3,659 4,727 28,595 

Other short-term obligations ............................................................................ 9,573 8,601 7,168 8,724 11.3 5 338 1,017 8,212 

Other notes and bonds .................................................................................... 26,932 27,268 31,964 34,922 -1.2 681 2,172 3,205 20,874 

Common and preferred stocks ........................................................................ 515,227 491,075 496,357 479,355 4.9 6,922 40,312 44,640 423,353 

Real estate mortgages .................................................................................... 1,613 1,479 1,495 1,425 9.1 31 247 216 1,119 

Real estate ...................................................................................................... 31,866 29,718 26,812 26,338 7.2 656 4,078 3,650 23,482 

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

Retirement related trust and agency accounts: 

27,893 27,520 22,770 22,137 1.4 516 5,086 3,544 18,747 

Employee benefit - defined contribution .......................................................... 307,192 226,767 206,460 207,023 35.5 35,803 68,122 12,455 190,812 

Employee benefit - defined benefit .................................................................. 1,154,182 1,067,293 1,067,158 974,120 8.1 4,738 40,920 20,732 1,087,791 

Other retirement accounts ............................................................................... 309,703 249,466 211,635 180,705 24.1 2,212 11,068 11,819 284,605 

Corporate trust and agency accounts ................................................................ 31,485 42,634 27,650 30,013 -26.2 33 1,286 3,224 26,942 

Investment management agency accounts ........................................................ 1,512,821 1,313,496 1,287,407 1,098,006 15.2 19,955 98,625 83,189 1,311,053 

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

Total managed fiduciary accounts: 

320,778 264,039 203,570 180,394 21.5 3,649 2,663 3,462 311,003 

Assets ............................................................................................................. 4,401,027 3,899,519 3,744,022 3,411,956 12.9 78,771 291,549 209,414 3,821,293 

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

Fiduciary and related assets - non-managed assets 

3,007,497 2,915,423 3,994,140 4,398,965 3.2 45,514 224,216 213,042 2,524,725 

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

Retirement related trust and agency accounts: 

309,235 286,570 273,147 244,483 7.9 2,138 17,848 12,939 276,310 

Employee benefit - defined contribution .......................................................... 1,778,837 1,525,453 1,325,041 1,340,412 16.6 21,283 486,696 82,246 1,188,612 

Employee benefit - defined benefit .................................................................. 4,542,859 3,567,201 3,415,480 3,160,463 27.4 13,312 29,270 84,896 4,415,380 

Other retirement accounts ............................................................................... 2,117,879 2,107,183 1,538,809 1,326,185 0.5 2,727 633,112 36,007 1,446,033 

Corporate trust and agency accounts ................................................................ 2,962,205 2,567,357 2,155,927 1,841,015 15.4 4,113 12,596 524,907 2,420,589 

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

Total non-managed fiduciary accounts: 

3,170,730 2,579,468 2,447,526 1,747,522 22.9 4,561 6,220 16,409 3,143,541 

Assets ............................................................................................................. 14,881,746 12,633,232 11,155,931 9,660,079 17.8 48,134 1,185,743 757,403 12,890,466 

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

Custody and safekeeping accounts: 

16,045,111 15,695,310 22,042,093 21,351,975 2.2 72,902 11,329,378 509,569 4,133,262 

Assets ............................................................................................................. 47,801,075 36,798,158 33,496,968 29,233,715 29.9 362,125 871,876 765,127 45,801,948 

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

Fiduciary and related services income 

11,207,594 11,513,459 16,220,033 30,715,360 -2.7 2,113,383 7,306,353 325,767 1,462,091 

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

Retirement related trust and agency accounts: 

5,145 5,241 4,878 4,971 -1.8 87 357 499 4,203 

Employee benefit - defined contribution .......................................................... 1,305 1,187 1,173 1,170 9.9 51 304 98 851 

Employee benefit - defined benefit .................................................................. 1,943 1,788 1,465 1,354 8.7 28 203 67 1,646 

Other retirement accounts ............................................................................... 870 753 710 670 15.5 17 83 121 649 

Corporate trust and agency accounts ................................................................ 2,054 1,877 2,350 1,941 9.4 150 68 191 1,645 

Investment management agency accounts ........................................................ 3,711 3,555 3,178 2,977 4.4 62 414 335 2,901 

Other fiduciary accounts .................................................................................... 1,446 1,350 992 1,069 7.1 3 33 26 1,385 

Custody and safekeeping accounts ................................................................... 8,011 7,167 5,945 5,115 11.8 172 635 158 7,046 

Other fiduciary and related services income ...................................................... 1,855 1,577 2,431 2,032 17.6 11 126 56 1,662 

Total gross fiduciary and related services income ............................................. 26,169 24,789 23,130 21,303 5.6 591 2,309 1,577 21,692 

Less: Expenses ............................................................................................... 19,109 17,261 16,639 15,039 10.7 289 2,215 1,194 15,411 

Less: Net losses from fiduciary and related services ...................................... 645 190 202 122 239.5 1 489 17 138 

Plus: Intracompany income credits for fiduciary and related services ............ 2,896 1,301 1,135 870 122.6 2 15 184 2,695 

Net fiduciary and related services income ......................................................... 9,483 8,419 7,417 7,008 12.6 290 -467 525 9,134 

Collective investment funds and common trust funds (market value) 

Domestic equity funds ..................................................................................... 449,080 478,087 482,294 439,469 -6.1 2,767 17,431 8,685 420,198 

International/global equity funds ..................................................................... 164,921 129,572 119,084 109,583 27.3 1,961 2,793 355 159,812 

Stock/bond blend funds ................................................................................... 217,734 77,526 69,116 49,954 180.9 625 487 2,594 214,029 

Taxable bond funds ......................................................................................... 185,398 248,050 243,403 213,619 -25.3 54,991 1,056 2,538 126,812 

Municipal bond funds ...................................................................................... 8,695 60,308 11,127 12,648 -85.6 4 623 310 7,758 

Short term investments/money market funds .................................................. 303,447 365,759 386,342 327,008 -17.0 3,915 291 640 298,600 

Specialty/other funds ....................................................................................... 96,846 102,112 93,594 86,428 -5.2 777 32,443 618 63,007 

Total collective investment funds ....................................................................... 1,426,121 1,461,414 1,404,959 1,238,709 -2.4 65,040 55,123 15,740 1,290,217 

FOURTH QUARTER 2006 14 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile
 

Insurance Fund Indicators 

■	 Insured Deposits Grow by 1.3 Percent, Slightly Less Than the 

Previous Quarter, and 6.7 Percent for the Year 

■ DIF Reserve Ratio Declines 1 Basis Point to 1.21 Percent 

■ Risk-based Assessment Changes Become Effective January 1, 2007 

Total assets of the nation’s 8,681 FDIC-insured commercial banks and savings institutions increased by 

$108.7 billion (0.9 percent) during the fourth quarter 

of 2006. Total deposits rose by 3.3 percent ($247.2 billion) during the quarter. Interest-bearing deposits 

increased by 2.9 percent ($184.0 billion), while noninterest-bearing deposits increased by 5.2 percent ($63.2 

billion). Domestic office deposits increased by 2.4 percent ($157.0 billion) and foreign office deposits set a 

new record by increasing 8.2 percent ($90.2 billion). 

Total FDIC-insured deposits increased by 1.3 percent 

($54 billion) during the fourth quarter, slightly less 

than the previous quarter’s 1.4 percent growth rate. 

Insured deposit growth slowed in the second half of 

2006 to an annualized rate of 5.7 percent from 7.7 percent in the first half. For the year as a whole, insured 

deposits rose 6.7 percent, down from 7.4 percent for 

2005. During the fourth quarter, insured deposits 

increased at 6,144 institutions (71 percent), decreased 

at 2,435 institutions (28 percent), and remained 

unchanged at 53 institutions. 

The Deposit Insurance Fund (DIF) increased by 0.3 

percent ($173 million) during the fourth quarter to 

$50,165 million (unaudited). The DIF received $243 

million (net of expenses) from interest on securities 

and other revenue during the quarter. The fund was 

reduced by additional provisions for insurance losses 

($49 million) and a decline in the market value of 

available-for-sale securities ($21 million). For the year, 

the fund balance grew 3.2 percent, up from 2.3 percent 

in 2005. The higher growth rate in 2006 was attributable in part to the release of certain escrowed funds with 

the merger of the Bank Insurance Fund and Savings 

Association Insurance Fund. 

The DIF’s fourth quarter growth was not enough to offset the increase in insured deposits, which resulted in a 

reduction in the reserve ratio to 1.21 percent from the 

third quarter 2006 level of 1.22 percent. During 2006, 

the reserve ratio fell four basis points, from 1.25 percent 

at year-end 2005. 

No insured institutions failed during the fourth quarter 

of 2006, making this the tenth consecutive quarter 

without a failure. However, the FDIC had its first failure since June of 2004 in January of 2007. 

Changes to Risk-Based Assessments from the 

Reform Legislation 

On February 8, 2006, the President signed the Federal 

Deposit Insurance Reform Act of 2005 (the Reform 

Act) into law. The Federal Deposit Insurance Reform 

Conforming Amendments Act of 2005 was signed into 

law on February 15, 2006 and contains necessary technical and conforming changes to implement deposit 

insurance requirements. All final rules implementing 

changes to risk-based assessments were adopted by the 

FDIC Board by early November of 2006, and generally 

became effective January 1, 2007. 

New Risk Categories and Assessment Rate Schedule 

The previous nine risk categories (the risk-based assessment matrix) are consolidated into four categories to 

better align them with their respective historical failure 

and loss experience. Capital ratios and supervisory ratings will continue to distinguish one risk category from 

another. The following table shows the translation of 

the old nine-cell matrix to the new risk categories as 

well as the initial assessment rates (in basis points) for 

each new risk category. In this table, 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. 

Risk Categories and Assessment Rate Schedule 

Effective January 1, 2007 

Supervisory Group 

Capital Category A B C 

1. Well Capitalized 

2. Adequately Capitalized 

3. Undercapitalized 

I 

5-7 bps II 

10 bps 

IV 

43 bps 

III 

28 bps 

III 

28 bps 

These initial assessment rates are effective beginning 

January 1, 2007 and are 3 basis points above the base 

rate schedule adopted in the final rule. The FDIC may 

ALL FDIC-INSURED INSTITUTIONS 15	 FOURTH QUARTER 2006
FDIC Quarterly Banking Profile
 

adjust rates up or down by 3 basis points from the base 

rate schedule without notice and comment, provided 

that any single adjustment from one quarter to the next 

cannot move rates more than 3 basis points. 

Determining Risk-Based Assessment Rates for 

Institutions in Risk Category I 

The spread between the lowest and highest risk-based 

assessment rates in Risk Category I is 2 basis points. 

For most institutions in Risk Category I – all but 

insured branches of foreign banks and institutions that 

have at least $10 billion in assets and a long-term debt 

issuer rating – the assessment rate assigned will be 

based on a combination of financial ratios and 

CAMELS component ratings. Rates determined from 

these risk measures were derived from a model that 

relates them to the historical frequency of CAMELS 

downgrades to ‘3’ or worse in the succeeding year. 

For large institutions (generally those with at least $10 

billion in assets) that have long-term debt issuer ratings, assessment rates will be determined by weighting 

CAMELS component ratings 50 percent and long-term 

debt issuer ratings 50 percent. For all large Risk Category I institutions, additional risk factors will be considered to determine whether assessment rates should be 

adjusted. This additional information includes market 

data, financial performance measures, considerations of 

the ability of an institution to withstand financial 

stress, and loss severity indictors. Any adjustment will 

be limited to no more than 1⁄2 basis point. 

Operational Changes to the Assessment System 

Insured depository institutions will no longer be 

assigned a risk-based assessment for a semiannual period 

before the start of the semiannual period. Instead, 

beginning in 2007, each institution will be assigned a 

risk-based rate for a quarterly assessment period near 

the end of the quarter following the assessment period. 

Payment will be due on the 30th day of the last month 

of the quarter following the assessment period. For 

example, the FDIC will determine each institution’s 

risk-based assessment rate for the first quarter of 2007 

during the second quarter, once financial information 

for the first quarter becomes available. Each institution 

will receive its first quarter assessment invoice no later 

than June 15th, with payment due on June 30th. 

Supervisory rating changes will be effective for assessment purposes as of the examination transmittal date. 

For institutions with long-term debt issuer ratings, 

changes in ratings will be effective for assessment purposes as of the date the change was announced. 

The assessment base will be based on the average daily 

deposits for banks with $1 billion or more in assets, 

effective no later than March 31, 2008. Until then, 

any existing institution may choose whether to have its 

assessment base determined from quarter-end or average 

daily deposits. Thereafter, an institution with less than 

$1 billion in assets may continue to choose to have its 

assessment base determined from quarter-end or average 

daily deposits. However, once an institution elects to 

report average daily deposits, it must continue to do so 

thereafter. The standard float deduction that had been 

used to determine the assessment base has been eliminated effective the first quarter of 2007. 

Assessment Credits 

Congress awarded an aggregate assessment credit of 

$4.7 billion that has been distributed among all eligible 

insured depository institutions. An eligible insured 

depository institution is one that was in existence on 

December 31, 1996 and that paid assessments before 

that date (or is the successor to such an institution). 

Each institution’s credit amount was based on the ratio 

of the institution’s assessment base (plus its predecessors’ assessment bases, if any) on December 31, 1996 to 

the combined total of all eligible insured depository 

institution assessment bases. The FDIC will apply 

whatever credits an institution has available to its quarterly assessment, subject to certain statutory limitations. 

Credits do not expire. 

FOURTH QUARTER 2006 16 ALL FDIC-INSURED INSTITUTIONS
 

 

 

 

 

 

FDIC Quarterly Banking Profile
 

TABLE I-B. Insurance Fund Balances and Selected Indicators 

(dollar figures in millions) Deposit Insurance Fund 

4th Quarter 

2006 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd Quarter 

2005 

2nd Quarter 

2005 

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

Changes in Fund Balances: 

$49,992 $49,564 $49,193 $48,597 $48,373 $48,023 $47,617 

Assessments earned.......................................... 10 10 7 5 13 20 14 

Interest earned on investment securities.................. 476 622 665 478 675 536 657 

Operating expenses.......................................... 248 237 242 224 252 227 254 

Provision for insurance losses.............................. 49 -50 -6 -45 -19 -65 -57 

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

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

5 1 12 349 4 3 4 

securities...................................................... -21 -18 -77 -57 -235 -47 -72 

Total fund balance change.................................... 173 428 371 596 224 350 406 

Ending Fund Balance*....................................... 50,165 49,992 49,564 49,193 48,597 48,373 48,023

 Percent change from four quarters earlier............ 3.23 3.35 3.21 3.31 2.29 2.94 3.23 

Reserve Ratio (%)........................................... 1.21 1.22 1.23 1.23 1.25 1.26 1.28 

Estimated Insured Deposits .............................. 4,153,198 4,099,429 4,038,849 4,000,566 3,890,911 3,830,907 3,757,662

 Percent change from four quarters earlier............ 6.74 7.01 7.48 8.46 7.42 7.63 6.39 

Assessment Base 6,596,145 6,438,959 6,386,678 6,272,398 6,177,277 6,038,674 5,878,747

 Percent change from four quarters earlier............ 6.78 6.63 8.64 8.16 8.88 9.47 8.36 

Number of institutions reporting........................ 8,693 8,755 8,790 8,803 8,845 8,870 8,881 

DIF Reserve Ratio* 

1.36 

1.32 

1.28 

1.24 

1.20 

1.16 

1.12 

3/03 9/03 3/04 9/04 3/05 9/05 3/06 9/06 

Percent of Insured Deposits 

1.30 

1.31 

1.34 

1.33 1.33 

1.32 1.32 

1.31 

1.29 

1.28 

1.26 

1.25 

1.23 1.23 

1.22 

1.21 

TABLE II-B. Problem Institutions and Failed/Assisted Institutions 

Deposit Insurance Fund Balance and Insured Deposits* 

($Millions) 

DIF-Insured 

DIF Balance Deposits 

3/03 44,288 3,414,022 

6/03 44,883 3,438,360 

9/03 45,648 3,414,317 

12/03 46,022 3,452,503 

3/04 46,558 3,499,469 

6/04 46,521 3,531,806 

9/04 46,990 3,559,489 

12/04 47,507 3,622,068 

3/05 47,617 3,688,511 

6/05 48,023 3,757,662 

9/05 48,373 3,830,907 

12/05 48,597 3,890,911 

3/06 49,193 4,000,566 

6/06 49,564 4,038,849 

9/06 49,992 4,099,429 

12/06 50,165 4,153,198 

(dollar figures in millions) 2006 2005 2004 2003 2002 2001 

Problem Institutions

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

Total assets.......................................................................... 

Failed/Assisted Institutions

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

Total assets.......................................................................... 

50 

$8,265 

0 

$0 

52 

$6,607 

0

$0 

80 

$28,250 

4 

$166 

116 

$29,917 

3 

$1,097 

136 

$38,927 

11 

$2,558 

114

$39,805 

4 

$2,254 

* Prior to 2006, amounts represent sum of separate BIF and SAIF amounts.
 

** First Quarter 2006 includes previously escrowed revenue from SAIF-member exit fees.
 

ALL FDIC-INSURED INSTITUTIONS 17 FOURTH QUARTER 2006
FDIC Quarterly Banking Profile FDIC Quarterly Banking Profile
 

TABLE III-B. Estimated FDIC-Insured Deposits by Type of Institution 

(dollar figures in millions) 

December 31, 2006 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

FDIC-Insured Commercial Banks ..................... 7,402 $10,090,626 $5,537,758 $3,294,642 

FDIC-Supervised ....................................... 4,785 1,854,870 1,377,255 918,317 

OCC-Supervised .......................................... 1,715 6,829,269 3,325,775 1,870,744 

Federal Reserve-Supervised ........................ 902 1,406,487 834,729 505,580 

FDIC-Insured Savings Institutions ..................... 1,279 1,769,602 1,093,306 851,605

 OTS-Supervised Savings Institutions ............... 844 1,463,950 878,540 684,450

 FDIC-Supervised State Savings Banks ............ 

Total Commercial Banks and 

435 305,653 214,766 167,155 

Savings Institutions .................................... 

Other FDIC-Insured Institutions 

8,681 11,860,229 6,631,064 4,146,247 

U.S. Branches of Foreign Banks **..................... 12 17,009 10,254 6,951 

Total FDIC-Insured Institutions ......................... 8,693 11,877,238 6,641,318 4,153,198 

* Excludes $1,194 billion in foreign office deposits, which are uninsured. 

** September 30, 2006 estimates. December 31, 2006 data is not yet available. 

TABLE IV-B. Assessment Base Distribution and Rate Schedules 

Table IV-B, which shows the distribution of institutions and assessment bases among risk categories, is not included in this edition of the Quarterly Banking Profile. As a result of final regulations implementing the Federal Deposit 

Insurance Reform Act of 2005, insured depository institutions will no longer be assigned a risk-based assessment 

rate for a semiannual period before the start of the semiannual period. Instead, beginning in 2007, each institution 

will be assigned a risk-based rate for a quarterly assessment period near the end of the following quarter. A subsequent edition will present a revised Table IV-B, which will show the distribution of institutions and assessment 

bases among the new risk categories adopted in the regulations for the quarter ending March 31, 2007. 

FOURTH QUARTER 2006 18 ALL FDIC-INSURED INSTITUTIONS
 

 

FDIC Quarterly Banking Profile
 

Number of FDIC-Insured “Problem” Institutions, 1998–2006 

Number of Institutions 

150 

100 

50 

0 

Commercial Banks 

Savings Institutions 

84 79 

94 

114 

136 

116 

80 

52 48 50 47 50 

Savings Institutions 

Commercial Banks 

12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 3/06 6/06 9/06 12/06 

69 66 76 95 119 106 72 44 41 45 42 44 

15 13 18 19 17 10 8 8 7 5 5 6 

Assets of FDIC-Insured “Problem” Institutions, 1998–2006 

$ Billions 

40 

30 

20 

10 

0 

12/98 12/99 12/00 12/01 12/02 12/03 12/05 3/06 6/06 12/04 9/06 12/06 

$11.3 $10.0 

$24.0 

$40.0 $39.0 

$30.0 

$28.0 

$7.0 $6.0 $5.5 $4.0 

$8.3 

Savings Institutions 

Commercial Banks 

Commercial Banks 5.4 4.5 17.0 36.0 36.0 29.0 27.0 5.0 4.5 5.3 3.8 4.4
 

Savings Institutions 5.9 5.5 7.0 4.0 3.0 1.0 1.0 2.0 1.5 0.2 0.2 3.9
 

ALL FDIC-INSURED INSTITUTIONS 19 FOURTH QUARTER 2006
FDIC Quarterly Banking Profile
 

Notes To Users 

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance Corporation (FDIC). These notes are an integral part of this publication 

and provide information regarding the comparability of source data 

and reporting differences over time. 

Tables I-A through VIII-A. 

The information presented in Tables I-A through V-A of the FDIC 

Quarterly Banking Profile is aggregated for all FDIC-insured Institutions, both commercial banks and savings institutions. Tables VI-A 

(Derivatives) and VII-A (Servicing, Securitization, and Asset Sales 

Activities) aggregate information only for insured commercial banks 

and state-chartered savings banks that file quarterly Call Reports. 

Table VIII-A Trust Services aggregates Trust asset and income information collected annually from all FDIC-insured institutions. Some 

tables are arrayed by groups of FDIC-insured institutions based on 

predominant types of asset concentration, while other tables aggregate institutions by asset size and geographic region. Quarterly and 

full-year data are provided for selected indicators, including aggregate 

condition and income data, performance ratios, condition ratios and 

structural changes, as well as past due, noncurrent and charge-off 

information for loans outstanding and other assets. 

Tables I-B through IV-B. 

A separate set of tables (Tables I-B through IV-B) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed/assisted institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository institutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions 

that have closed or converted their charters. 

DATA SOURCES 

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination Council (FFIEC) Call Reports and the OTS Thrift Financial Reports submitted by all FDIC-insured depository institutions. This information is 

stored on and retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial Reports to 

provide closer conformance with the reporting and accounting 

requirements of the FFIEC Call Reports. Parent institutions are 

required to file consolidated reports, while their subsidiary financial 

institutions are still required to file separate reports. Data from subsidiary institution reports are included in the Quarterly Banking Profile 

tables, which can lead to double-counting. No adjustments are made 

for any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance ratios 

represent average amounts for the period (beginning-of-period 

amount plus end-of-period amount plus any interim periods, divided 

by the total number of periods). For “pooling-of-interest” mergers, the 

assets of the acquired institution(s) are included in average assets 

since the year-to-date income includes the results of all merged institutions. No adjustments are made for “purchase accounting” mergers. 

Growth rates represent the percentage change over a 12-month period in totals for institutions in the base period to totals for institutions 

in the current period. 

All data are collected and presented based on the location of each 

reporting institution's main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home state. 

In addition, institutions may relocate across state lines or change their 

charters, resulting in an inter-regional or inter-industry migration, 

e.g., institutions can move their home offices between regions, and 

savings institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. 

ACCOUNTING CHANGES 

Purchased Impaired Loans and Debt Securities – Statement of Position 03­

3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. 

The SOP applies to loans and debt securities acquired in fiscal years 

beginning after December 15, 2004. In general, this Statement of 

Position applies to “purchased impaired loans and debt securities,” i.e., 

loans and debt securities that a bank has purchased, including those 

acquired in a purchase business combination, when it is probable, at 

the purchase date, that the bank will be unable to collect all contractually required payments receivable. Banks must follow Statement of 

Position 03-3 for Call Report purposes. The SOP does not apply to 

the loans that a bank has originated, prohibits “carrying over” or creation of valuation allowances in the initial accounting and any subsequent valuation allowances reflect only those losses incurred by the 

investor after acquisition. 

GNMA Buy-back Option – If an issuer of GNMA securities has the 

option to buy back the loans that collateralize the GNMA securities, 

when certain delinquency criteria are met, FASB Statement No. 140 

requires that loans with this buy-back option must be brought back 

on the issuer's books as assets. The rebooking of GNMA loans is 

required regardless of whether the issuer intends to exercise the buyback option. The banking agencies clarified in May 2005, that all 

GNMA loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms. 

FASB Interpretation No. 45 – In November 2002, the FASB issued Interpretation No. 45, Guarantor’s Accounting and Disclosure Requirements 

for Guarantees, Including Indirect Guarantees of Indebtedness of Others. 

This interpretation clarifies that a guarantor is required to recognize, 

at the inception of a guarantee (financial standby letters of credit, 

performance standby letters of credit), a liability for the fair value of 

the obligation undertaken in issuing the guarantee. Banks apply the 

initial recognition and measurement provisions of Interpretation No. 

45 on a prospective basis to guarantees issued or modified after 

December 31, 2002, irrespective of the bank’s fiscal year end. A 

bank’s previous accounting for guarantees issued prior to January 1, 

2003, is not revised. 

FASB Interpretation No. 46 – The FASB issued Interpretation No. 46, 

Consolidation of Variable Interest Entities, in January 2003 and revised it 

in December 2003. Generally, banks with variable interests in variable interest entities created after December 31, 2003, must consolidate them. The timing of consolidation varies with certain situations 

with application as late as 2005. The assets and liabilities of a consolidated variable interest entity are reported on a line-by-line basis 

according to the asset and liability categories shown on the bank’s 

balance sheet, as well as related income items. Most small banks are 

unlikely to have any “variable interests” in variable interest entities. 

FASB Statement No. 123 (Revised 2004) and Share-Based Payments 

– requires all entities to recognize compensation expense in an 

amount equal to the fair value of share-based payments, e.g., stock 

options and restricted stock, granted to employees. As of January 

2006 all banks must adopt FAS 123(R). The compensation cost is 

typically recognized over the vesting period with a corresponding 

credit to equity. The recording of the compensation cost also gives 

rise to a deferred tax asset. 

Goodwill and intangible assets – FAS 141 terminates the use of pooling-of-interest accounting for business combinations after 2001 and 

FOURTH QUARTER 2006 20 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile
 

requires purchase accounting. Under FAS 142 amortization of goodwill is eliminated. Only intangible assets other than goodwill are 

amortized each quarter. In addition companies are required to test for 

impairment of both goodwill and other intangibles once each fiscal 

year. The year 2002, the first fiscal year affected by this accounting 

change, has been designated a transitional year and the amount of initial impairments are to be recorded as extraordinary losses on a “net of 

tax” basis (and not as noninterest expense). Subsequent annual 

review of intangibles and goodwill impairment may require additional 

noninterest expense recognition. FASB Statement No. 147 clarifies 

that acquisitions of financial institutions (except transactions between 

two or more mutual enterprises), including branch acquisitions that 

meet the definition of a business combination, should be accounted 

for by the purchase method under FASB Statement No. 141. This 

accounting standard includes transition provisions that apply to 

unidentifiable intangible assets previously accounted for in accordance 

with FASB Statement No. 72. If the transaction (such as a branch 

acquisition) in which an unidentifiable intangible asset arose does not 

meet the definition of a business combination, this intangible asset is 

not be reported as “Goodwill” on the Call Report balance sheet. 

Rather, this unidentifiable intangible asset is reported as “Other intangible assets,” and must continue to be amortized and the amortization 

expense should be reported in the Call Report income statement. 

FASB Statement No. 133 Accounting for Derivative Instruments and Hedging 

Activities – All banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may 

be specifically designated as a “fair value hedge,” a “cash flow hedge,” 

or a hedge of a foreign currency exposure. The accounting for 

changes in the value of a derivative (gains and losses) depends on the 

intended use of the derivative, its resulting designation, and the effectiveness of the hedge. Derivatives held for purposes other than trading are reported as “other assets” (positive fair values) or “other 

liabilities” (negative fair values). For a fair value hedge, the gain or 

loss is recognized in earnings and “effectively” offsets loss or gain on 

the hedged item attributable to the risk being hedged. Any ineffectiveness of the hedge could result in a net gain or loss on the income 

statement. Accumulated net gains (losses) on cash flow hedges are 

recorded on the balance sheet as “accumulated other comprehensive 

income” and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of 

the derivative changes. FASB Statement No. 149, Amendment of 

Statement 133 on Derivative Instruments and Hedging Activities 

provides guidance on the circumstances in which a loan commitment 

must be accounted for as derivative. Under Statement No. 149, loan 

commitments that relate to the origination of mortgage loans that will 

be held for sale, commonly referred to as interest rate lock commitments, must be accounted for as derivatives on the balance sheet by 

the issuer of the commitment. 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository institutions, 

premises, fixed assets, direct investments in real estate, investment in 

unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities 

purchased with agreements to resell, fair market value of derivatives, 

and other assets. 

All other liabilities – bank's liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities. 

Assets securitized and sold – total outstanding principal balance of 

assets securitized and sold with servicing retained or other sellerprovided credit enhancements. 

Construction and development loans – includes loans for all property 

types under construction, as well as loans for land acquisition and 

development. 

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, less 

goodwill and other ineligible intangible assets. The amount of eligible 

intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations. 

Cost of funding earning assets – total interest expense paid on deposits 

and other borrowed money as a percentage of average earning assets. 

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance. 

Deposit Insurance Fund (DIF) – The Bank (BIF) and Savings Association (SAIF) Insurance Funds were merged in 2006 by the Federal 

Deposit Insurance Reform Act to form the DIF. 

Derivatives notional amount – The notional or contractual amounts of 

derivatives represent the level of involvement in the types of derivatives transactions and are not a quantification of market risk or credit 

risk. Notional amounts represent the amounts used to calculate contractual cash flows to be exchanged. 

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.
 

ALL FDIC-INSURED INSTITUTIONS 21 FOURTH QUARTER 2006
FDIC Quarterly Banking Profile
 

This ratio measures the proportion of net operating revenues that are 

absorbed by overhead expenses, so that a lower value indicates greater 

efficiency. 

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Prior to June 

30, 2000 the uninsured estimate is calculated as the sum of the excess 

amounts in accounts over $100,000. Beginning June 30, 2000 the 

amount of estimated uninsured deposits is adjusted to consider a 

financial institution's own estimate of uninsured deposits when such 

an estimate is reported. Beginning in 2006 the uninsured deposits estimate also considers IRA accounts over $250,000. 

Failed/assisted institutions – an institution fails when regulators take 

control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives some insurance funds in order to continue 

operating. 

FHLB advances – all borrowings by FDIC insured institutions from the 

Federal Home Loan Bank System (FHLB), as reported by Call Report 

filers and by TFR filers. 

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired. 

Loans secured by real estate – includes home equity loans, junior liens 

secured by 1-4 family residential properties and all other loans secured 

by real estate. 

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.
 

Long-term assets (5+ years) – loans and debt securities with remaining
 

maturities or repricing intervals of over five years.
 

Maximum credit exposure – the maximum contractual credit exposure
 

remaining under recourse arrangements and other seller-provided
 

credit enhancements provided by the reporting bank to securitizations.
 

Mortgage-backed securities – certificates of participation in pools of residential mortgages and collateralized mortgage obligations issued or
 

guaranteed by government-sponsored or private enterprises. Also, see
 

“Securities”, below.
 

Net charge-offs – total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on
 

loans and leases previously charged off.
 

Net interest margin – the difference between interest and dividends
 

earned on interest-bearing assets and interest paid to depositors and
 

other creditors, expressed as a percentage of average earning assets.
 

No adjustments are made for interest income that is tax exempt.
 

Net loans to total assets – loans and lease financing receivables, net of
 

unearned income, allowance and reserves, as a percent of total assets
 

on a consolidated basis.
 

Net operating income – income excluding discretionary transactions
 

such as gains (or losses) on the sale of investment securities and
 

extraordinary items. Income taxes subtracted from operating income
 

have been adjusted to exclude the portion applicable to securities
 

gains (or losses).
 

Noncurrent assets – the sum of loans, leases, debt securities and other 

assets that are 90 days or more past due, or in nonaccrual status. 

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting – the number of institutions that actually filed a financial report. 

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation 

losses on assets held in trading accounts. 

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that file a 

Thrift Financial Report (TFR), the valuation allowance subtracted 

also includes allowances for other repossessed assets. Also, for TFR 

filers the components of other real estate owned are reported gross of 

valuation allowances. 

Percent of institutions with earnings gains – the percent of institutions 

that increased their net income (or decreased their losses) compared 

to the same period a year earlier. 

“Problem” institutions – federal regulators assign a composite rating to 

each financial institution, based upon an evaluation of financial and 

operational criteria. The rating is based on a scale of 1 to 5 in 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”. For all insured commercial banks and for insured savings banks 

for which the FDIC is the primary federal regulator, FDIC composite 

ratings are used. For all institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Recourse – an arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it 

has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank’s claim on the asset. If a 

bank has no claim on an asset it has sold, then the retention of any 

credit risk is recourse. 

Reserves for losses – the allowance for loan and lease losses on a consolidated basis. 

Restructured loans and leases – loan and lease financing receivables 

with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance with the modified 

terms. 

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.
 

Return on assets – net income (including gains or losses on securities
 

and extraordinary items) as a percentage of average total assets. The
 

basic yardstick of bank profitability.
 

Return on equity – net income (including gains or losses on securities
 

and extraordinary items) as a percentage of average total equity capital.
 

Risk-weighted assets – assets adjusted for risk-based capital definitions
 

which include on-balance-sheet as well as off-balance-sheet items
 

multiplied by risk-weights that range from zero to 100 percent. A
 

conversion factor is used to assign a balance sheet equivalent amount
 

for selected off-balance-sheet accounts.
 

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”,
 

which are reported at amortized cost (book value), and securities designated as “available-for-sale”, reported at fair (market) value.
 

Securities gains (losses) – realized gains (losses) on held-to-maturity and
 

available-for-sale securities, before adjustments for income taxes.
 

Thrift Financial Report (TFR) filers also include gains (losses) on the
 

sales of assets held for sale.
 

Seller’s interest in institution’s own securitizations – the reporting bank’s
 

ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-pro-


FOURTH QUARTER 2006 22 ALL FDIC-INSURED INSTITUTIONS
FDIC Quarterly Banking Profile
 

vided credit enhancement. Seller’s interests differ from the securities 

issued to investors by the securitization structure. The principal 

amount of a seller’s interest is generally equal to the total principal 

amount of the pool of assets included in the securitization structure 

less the principal amount of those assets attributable to investors, i.e., 

in the form of securities issued to investors. 

Subchapter S Corporation – A Subchapter S corporation is treated as a 

pass-through entity, similar to a partnership, for federal income tax 

purposes. It is generally not subject to any federal income taxes at the 

corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings. 

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the 

assets of the financial institution.
 

Unearned income & contra accounts – unearned income for Call Report
 

filers only.
 

Unused loan commitments – includes credit card lines, home equity
 

lines, commitments to make loans for construction, loans secured by
 

commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for sale, which are accounted for as derivatives
 

on the balance sheet.)
 

Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities sold under
 

agreements to repurchase, and other borrowings. 


Yield on earning assets – total interest, dividend and fee income earned
 

on loans and investments as a percentage of average earning assets.
 

FOURTH QUARTER 2006 23 ALL FDIC-INSURED INSTITUTIONS
The FDIC Quarterly Banking Profile is published quarterly by the Division of Insurance and Research of the Federal 

Deposit Insurance Corporation. Single copy subscriptions of the FDIC Quarterly Banking Profile can be obtained 

through the FDIC Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226; or Email: 

publicinfo@fdic.gov. 

The FDIC Quarterly Banking Profile is available on-line by visiting the FDIC’s website at www.fdic.gov. Comparable 

financial data for individual institutions can now be obtained from the FDIC’s Institution Directory (ID) 

System on this web site. 

Chairman Sheila C. Bair 

Director, Division of Insurance 

and Research 

Arthur J. Murton 

Media Inquiries (202) 898-6993 

Authors Richard Brown 

Chief Economist, FDIC 

(202) 898-3927 

Kevin Brown 

(202) 898-6817 

Brian Lewis 

(202) 898-6510 

Ross Waldrop 

(202) 898-3951