FDIC QUARTERLY A

Quarterly

2017

Volume 11, Number 2

Federal Deposit 

Insurance Corporation

Quarterly Banking Profile:

First Quarter 2017

Highlights:

■ Quarterly Net Income Is 12.7 Percent Higher 

Than a Year Earlier 

■ Annual Loan Growth Rate Slows to 4 Percent, 

on Par With Nominal GDP Growth 

■ Community Bank Net Income Rises 10.4 Percent 

From a Year Ago 

■ Community Bank Loan Balances Increase 7.7 Percent 

Over the Past 12 Months 

■ Estimated Insured Deposits Grow by 2.3 Percent 

■ DIF Reserve Ratio Is Unchanged at 1.20 Percent 
FDIC QUARTERLY

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

Federal Deposit Insurance Corporation and contains a comprehensive summary of the 

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

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

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

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

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

Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226. E-mail requests 

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

submitted to the Public Information Center. 

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

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

Chairman

Martin J. Gruenberg

Director, Division of Insurance and Research

Diane Ellis

Executive Editor

Richard A. Brown

Managing Editors

Matthew Green

Philip A. Shively

Editors

Clayton Boyce

Peggi Gill

Frank Solomon

Kathy Zeidler

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993
FDIC QUARTERLY i

2017 FDIC QUARTERLY

Volume 11 • Number 2

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

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

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

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

Quarterly Banking Profile: First Quarter 2017

FDIC-insured institutions reported aggregate net income of $44 billion in the first quarter 

of 2017, up $5 billion (12.7 percent) from a year earlier. The increase in earnings was mainly 

attributable to an $8.8 billion (7.8 percent) increase in net interest income and a $2.1 billion 

(3.4 percent) increase in noninterest income. Of the 5,856 insured institutions reporting first 

quarter financial results, 57 percent reported year-over-year growth in quarterly earnings. 

The proportion of banks that were unprofitable in the first quarter fell to 4.1 percent from 

5.1 percent a year earlier. See page 1.

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

income of $5.6 billion in the first quarter, up $522.9 million (10.4 percent) from one year 

earlier. The increase was driven by higher net interest income and noninterest income, 

which was partly offset by higher loan-loss provisions and noninterest expense. The 

12-month growth rate in loan balances at community banks was 7.7 percent, while loan 

growth at noncommunity banks was 3.3 percent. The noncurrent rate continued to improve, 

and aggregate noncurrent loan balances declined by $37.5 million during the quarter. 

See page 15.

Insurance Fund Indicators Insured deposits increased by 2.3 percent in the first quarter of 2017. The DIF reserve ratio 

was 1.20 percent on March 31, 2017, unchanged from year-end 2016, but up 7 basis points 

from one year earlier. There were three failures of FDIC-insured institutions during the 

quarter. See page 23.

2017 FDIC QUARTERLY

QUARTERLY BANKING PROFILE First Quarter 2017

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income Is 12.7 Percent Higher Than a Year Earlier

Community Bank Net Income Rises 10.4 Percent From a Year Ago

Annual Loan Growth Rate Slows to 4 Percent, on Par With Nominal GDP Growth

“Problem Bank List” Falls to Nine-Year Low

First Quarter Net Income of 

$44 Billion Is 12.7 Percent 

Higher Than a Year Ago

Higher net operating revenue helped lift quarterly earnings of FDIC-insured institutions to 

$44 billion in the first quarter of 2017. First quarter net income was $5 billion (12.7 percent) 

higher than the year-earlier total. More than 57 percent of all banks reported year-over-year 

increases in quarterly earnings, while only 4.1 percent reported negative net income for the 

quarter. In the first quarter of 2016, 5.1 percent of banks were unprofitable. The average 

return on assets (ROA) rose to 1.04 percent, from 0.97 percent a year ago.

Banks Post 6.3 Percent 

Year-Over-Year Growth in 

Net Operating Revenue

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

$183.6 billion, an increase of $10.9 billion (6.3 percent) from a year ago. More than two out of 

three banks—69.7 percent—reported year-over-year growth in net operating revenue. Noninterest income increased $2.1 billion (3.4 percent) over first quarter 2016, as trading income 

rose by $1.5 billion (26 percent), and servicing income increased by $1.9 billion (220.6 percent). 

Net interest income was $8.8 billion (7.8 percent) higher, as average interest-bearing assets 

rose 4.9 percent, and the average net interest margin (NIM) improved to 3.19 percent from 

3.10 percent a year ago. Much of the NIM improvement occurred at large banks, as higher 

short-term interest rates lifted average asset yields. Smaller banks, which have a larger share of 

their assets in longer-term investments, did not see their NIMs benefit from the rise in shortterm rates. More than half of all banks—53.7 percent—reported lower NIMs than a year ago.

Noninterest expenses were $4.5 billion (4.3 percent) higher than a year ago. Salary and 

employee benefits costs rose $3.3 billion (6.6 percent), as FDIC-insured institutions reported 

41,469 more employees than a year ago, a 2 percent increase. Expenses for premises and fixed 

assets increased by $435 million (3.9 percent) compared to first quarter 2016.

Provisions Register 

First Decline in Almost 

Three Years

Banks set aside $12 billion in provisions for loan losses in the first quarter, a decline of 

$541 million (4.3 percent) from a year earlier. This is the first time in the past 11 quarters that 

loss provisions have fallen. A slightly larger proportion of banks reported higher provision 

expenses—34.8 percent—compared to the 31.5 percent who had lower quarterly provisions.

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

50

-10

0

10

20

30

40

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

2010 2011

17.4

20.9 23.8 21.4

28.7

2012

28.5

35.2

25.3

34.8

2013

34.5

37.5

34.4

2014

40.3 38.2 36.1

39.8

37.3

2015

40.1 38.536.5

2016

39.8

43.0

40.4 40.6 39.0

43.6 45.643.2

2017

44.0

Chart 1

Source: FDIC.

Percentage of All FDIC-Insured Institutions

Unprotable Institutions and 

Institutions With Increased Earnings

All FDIC-Insured Institutions

0

10

20

30

40

50

60

70

80

Percentage of Institutions With

Year-Over-Year Quarterly Income Growth

Percentage of Institutions With Quarterly Losses

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

Chart 2
2 0 1 7  •  Volume 1 1  • Number 2

2 FDIC QUARTERLY

Banks Report Higher 

Charge-Offs on Loans to 

Individuals

During the first quarter, banks charged-off $11.5 billion in loans, an increase of $1.4 billion 

(13.4 percent) over the total for first quarter 2016. This is the sixth consecutive quarter that 

charge-offs have posted a year-over-year increase. Most of the increase consisted of higher 

losses on loans to individuals. Net charge-offs of credit card balances were up $1.3 billion 

(22.1 percent), while auto loan charge-offs increased $199 million (27.7 percent), and 

charge-offs of other loans to individuals rose by $474 million (66.4 percent). In contrast, 

charge-offs on loans to commercial and industrial (C&I) borrowers were $291 million 

(15.7 percent) lower than a year ago, while residential mortgage charge-offs were 

$221 million (52.5 percent) lower. The average net charge-off rate in the first quarter was 

0.49 percent, compared to 0.46 percent a year earlier.

Noncurrent Loan Balances 

Continue to Decline

The amount of loans and leases that were noncurrent—90 days or more past due or in nonaccrual status—fell for the 27th time in the last 28 quarters. In the first three months of 2017, 

noncurrent loan balances declined by $7 billion (5.3 percent). All major loan categories saw 

noncurrent balances fall during the quarter. Noncurrent residential mortgage loans declined 

by $5.3 billion (8.2 percent), while noncurrent C&I loans fell by $1.2 billion (4.6 percent). The 

average noncurrent loan rate improved from 1.42 percent at year-end 2016 to 1.34 percent 

at the end of March. This is the lowest average noncurrent rate for the industry since third 

quarter 2007.

Coverage Ratio Nears 

100 Percent

The industry’s reserves for loan losses were essentially unchanged in the first quarter. Industry reserves stood at $121.8 billion at the end of the quarter, only $99 million (0.1 percent) 

higher than the total at year-end 2016. Banks with assets greater than $1 billion, which 

together account for more than 96 percent of total industry reserves, increased their reserves 

for credit card losses by $1.1 billion (3.7 percent) during the quarter, while reducing their 

reserves for residential real estate losses by $646 million (3.7 percent), and lowering their 

reserves for commercial loan losses by $559 million (1.6 percent). As a result of the decline 

in noncurrent loan balances during the quarter, the industry’s coverage ratio of reserves to 

noncurrent loans improved from 92.2 percent to 97.5 percent. This is the highest level for the 

coverage ratio since the end of third quarter 2007.

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 3

Quarterly Net Interest Margin

All FDIC-Insured Institutions

Percent

Source: FDIC.

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2010 2011 2012 2013 2014 2015 2016 2017

 Assets > $250 Billion

 Assets $10 Billion - $250 Billion

 Assets $1 Billion - $10 Billion

 Assets $100 Million - $1 Billion

 Assets < $100 Million

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Equity Capital Posts 

Relatively Strong Increase

Equity capital increased by $28.6 billion (1.5 percent) during the quarter. Retained earnings 

contributed $16.7 billion to equity growth in the quarter. This is $1.6 billion (8.9 percent) less 

than a year ago, as first quarter dividends were $6.6 billion (31.7 percent) higher. Accumulated other comprehensive income posted a $3.3 billion improvement, as a slight decline in 

long-term interest rates caused a reduction in unrealized losses in securities portfolios.

Banks Increase Balances at 

Federal Reserve Banks

Total assets increased by $186.1 billion (1.1 percent) during the quarter. Banks increased 

their balances at Federal Reserve banks by $187.4 billion (17 percent), while assets in trading accounts rose by $27 billion (4.9 percent). Securities portfolios increased by $24.5 billion 

(0.7 percent), as securities in held-to-maturity accounts rose by $52.6 billion (5.9 percent), 

and securities in available-for-sale accounts declined by 28.1 billion (1.1 percent). Balances 

due from banks in foreign countries declined by $30.3 billion (8 percent).

Pace of Loan Growth Slows Total loans and leases declined by $8.1 billion (0.1 percent) during the three months ended 

March 31. This is the first quarterly decline in loan balances since first quarter 2013. Credit 

card loans posted a seasonal decline of $43.7 billion (5.5 percent), as cardholders paid down 

outstanding balances. Residential mortgage loans fell by $10.2 billion (0.5 percent), reflecting increased loan sales activity. C&I loans increased by $25.6 billion (1.3 percent), while real 

estate loans secured by nonfarm nonresidential properties rose by $22.5 billion (1.7 percent). 

Unused loan commitments increased by $119.3 billion (1.7 percent) during the quarter. The 

slowing in loan growth that began in the second half of last year continued through the first 

quarter. The 12-month loan growth rate slowed to 4 percent, down from 5.3 percent in calendar year 2016. While all major loan categories saw balances rise over the past 12 months, 

annual growth rates are now lower than they were in the previous quarter and a year ago. 

The rate of loan growth remains above the nominal GDP growth rate.

Retail Deposits Provide 

Most of the Growth in 

Funding

Buoyed by growth in consumer accounts, total deposits increased by $189.1 billion 

(1.5 percent) during the quarter. Deposits in domestic offices of FDIC-insured institutions 

rose by $165.5 billion (1.4 percent), while deposits in foreign offices were up $23.6 billion 

(1.9 percent). Domestic deposit balances in consumer accounts increased by $181 billion 

(4.3 percent). During the quarter, banks reduced their nondeposit liabilities by $30.7 billion 

(1.5 percent), as Federal Home Loan Bank advances declined by $40.8 billion (7.2 percent), 

and trading liabilities fell by $8.4 billion (3.4 percent).

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

Noncurrent Loan Rate

Quarterly Net Charge-O Rate

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

Chart 5

Source: FDIC.

*Loan-loss reserves to noncurrent loans & leases.

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio*

 0

50

100

150

200

250

300

350

400

450

0

20

40

60

80

100

120

140

160

180

Noncurrent Loans & Leases ($ Billions)

Loan-Loss Reserves ($ Billions)

Coverage Ratio (Percent)

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

Chart 6
2 0 1 7  •  Volume 1 1  • Number 2

4 FDIC QUARTERLY

Two New Charters Added in 

the First Quarter

The number of FDIC-insured commercial banks and savings institutions declined from 

5,913 to 5,856 during the first quarter. In the first three months of 2017, mergers absorbed 

54 insured institutions, while 3 banks failed. Two new charters were added during the quarter, the first new charters since third quarter 2015. Banks reported 2,081,422 full-time equivalent employees in the first quarter, an increase of 28,444 from fourth quarter 2016, and 41,469 

(2 percent) more than a year ago. The number of insured institutions on the FDIC’s Problem 

Bank List fell from 123 to 112 during the first quarter. This is the smallest number since first 

quarter 2008. Total assets of “Problem” banks declined from $27.6 billion to $23.4 billion.

Author:

Ross Waldrop

Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

0

10

20

30

40

50

> 15 Years

5-15 Years

3-5 Years

Loans and Securities > 3 Years as a Percent of Total Assets

All Insured Call Report Filers

Percentage

Source: FDIC.

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

33.3% 35.4%

2017

Chart 9

Source: FDIC.

Assets ($ Billions) Number

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

0

50

100

150

200

250

300

350

400

450

500

0

100

200

300

400

500

600

700

800

900

1,000

Number of Problem Banks

$24

112

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

Problem Bank Assets

Chart 10

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

Source: FDIC.

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

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

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

for the quarter absent this change in accounting standards. 

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

-15

-10

-5

0

5

10

15

146

108

66 43

189

237

203

61

28

-6

-109

-210

-133 -107

-7

-126

67

24

134

-63

102 117

-37

74 70 91

38

178

51

149

53

185

95

197

100

182

72

-8

196

-116-140

221*

-14

65

112

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

Chart 7

Twelve-Month Growth Rates for Major Loan Categories

All FDIC-Insured Institutions

Percent

Source: FDIC.

-40

-30

-20

-10

0

10

20

30

40

2000 2002 2004 2006 2008 2010 2012 2014 2016 2017

Impact of FASB 166/167

Secured by 1-to-4 Family Residential Properties

Construction & Development

Nonfarm Nonresidential Real Estate

C&I Loans

Loans to Individuals

Chart 8
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2017** 2016** 2016 2015 2014 2013 2012

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

Return on equity (%) 9.37 8.61 9.29 9.29 9.01 9.54 8.90

Core capital (leverage) ratio (%) 9.57 9.61 9.48 9.59 9.44 9.40 9.15

Noncurrent assets plus other real estate owned to assets (%) 0.81 0.96 0.86 0.97 1.20 1.63 2.20

Net charge-offs to loans (%) 0.49 0.46 0.47 0.44 0.49 0.69 1.10

Asset growth rate (%) 4.13 3.27 5.09 2.66 5.59 1.94 4.02

Net interest margin (%) 3.19 3.10 3.13 3.07 3.14 3.26 3.42

Net operating income growth (%) 13.69 -1.46 4.66 7.07 -0.73 12.82 17.76

Number of institutions reporting 5,856 6,122 5,913 6,182 6,509 6,812 7,083

Commercial banks 5,060 5,289 5,112 5,338 5,607 5,847 6,072

Savings institutions 796 833 801 844 902 965 1,011

Percentage of unprofitable institutions (%) 4.15 5.11 4.36 4.79 6.27 8.16 11.00

Number of problem institutions 112 165 123 183 291 467 651

Assets of problem institutions (in billions) $24 $31 $28 $47 $87 $153 $233

Number of failed institutions 3 1 5 8 18 24 51

Number of assisted institutions 0 0 0 0 0 0 0

* Excludes insured branches of foreign banks (IBAs).

** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31.

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

(dollar figures in millions)  1st Quarter

2017

4th Quarter

2016

1st Quarter

2016

%Change 

16Q1-17Q1

Number of institutions reporting 5,856 5,913 6,122 -4.3

Total employees (full-time equivalent) 2,081,422 2,052,978 2,039,953 2.0

CONDITION DATA

Total assets $16,965,782 $16,779,669 $16,293,213 4.1

Loans secured by real estate 4,626,225 4,603,235 4,419,553 4.7

 1-4 Family residential mortgages 1,984,788 1,995,023 1,918,198 3.5

 Nonfarm nonresidential 1,346,589 1,324,054 1,251,625 7.6

 Construction and development 319,160 312,998 284,876 12.0

 Home equity lines 429,993 434,130 457,506 -6.0

Commercial & industrial loans 1,960,683 1,935,062 1,910,171 2.6

Loans to individuals 1,545,184 1,589,465 1,474,247 4.8

 Credit cards 756,135 799,842 723,659 4.5

Farm loans 75,182 79,904 77,187 -2.6

Other loans & leases 1,091,936 1,099,795 1,060,008 3.0

Less: Unearned income 2,032 2,173 2,109 -3.6

Total loans & leases 9,297,177 9,305,287 8,939,057 4.0

Less: Reserve for losses 121,776 121,677 120,690 0.9

Net loans and leases 9,175,401 9,183,610 8,818,366 4.0

Securities 3,583,986 3,559,474 3,384,636 5.9

Other real estate owned 10,365 10,934 14,049 -26.2

Goodwill and other intangibles 370,337 369,230 359,027 3.2

All other assets 3,825,694 3,656,420 3,717,134 2.9

Total liabilities and capital 16,965,782 16,779,669 16,293,213 4.1

Deposits 13,083,796 12,894,716 12,429,480 5.3

 Domestic office deposits 11,812,750 11,647,272 11,106,435 6.4

 Foreign office deposits 1,271,046 1,247,444 1,323,045 -3.9

Other borrowed funds 1,416,072 1,413,305 1,379,951 2.6

Subordinated debt 79,764 83,904 91,743 -13.1

All other liabilities 489,237 518,523 552,006 -11.4

Total equity capital (includes minority interests) 1,896,913 1,869,221 1,840,032 3.1

 Bank equity capital 1,891,686 1,863,056 1,833,632 3.2

Loans and leases 30-89 days past due 60,469 65,678 58,702 3.0

Noncurrent loans and leases 124,956 131,995 141,227 -11.5

Restructured loans and leases 64,064 65,503 71,083 -9.9

Mortgage-backed securities 2,034,470 2,004,983 1,895,559 7.3

Earning assets 15,325,907 15,103,324 14,641,461 4.7

FHLB Advances 522,490 563,263 481,204 8.6

Unused loan commitments 7,321,205 7,201,894 7,035,911 4.1

Trust assets 18,210,179 17,663,905 16,672,022 9.2

Assets securitized and sold 731,213 737,169 803,118 -9.0

Notional amount of derivatives 180,509,183 166,795,905 195,508,112 -7.7

INCOME DATA

Full Year 

2016

Full Year 

2015 %Change

1st Quarter 

2017

1st Quarter 

2016

%Change 

16Q1-17Q1

Total interest income $515,794 $478,506 7.8 $136,611 $125,246 9.1

Total interest expense 54,389 46,875 16.0 15,528 12,945 20.0

Net interest income 461,405 431,631 6.9 121,083 112,301 7.8

Provision for loan and lease losses 48,078 37,139 29.5 12,013 12,553 -4.3

Total noninterest income 252,612 253,311 -0.3 62,502 60,429 3.4

Total noninterest expense 422,189 417,025 1.2 109,223 104,690 4.3

Securities gains (losses) 3,790 3,635 4.2 550 940 -41.5

Applicable income taxes 76,047 70,534 7.8 18,834 17,330 8.7

Extraordinary gains, net* -323 -11 N/M -3 -9 N/M

Total net income (includes minority interests) 171,171 163,868 4.5 44,062 39,087 12.7

 Bank net income 170,831 163,382 4.6 43,971 39,010 12.7

Net charge-offs 42,410 37,283 13.8 11,491 10,135 13.4

Cash dividends 102,759 104,529 -1.7 27,311 20,730 31.8

Retained earnings 68,071 58,853 15.7 16,660 18,281 -8.9

Net operating income 168,832 161,311 4.7 43,691 38,430 13.7

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 7  •  Volume 1 1  • Number 2

6 FDIC QUARTERLY

TABLE III-A. First Quarter 2017, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,856 13 4 1,397 2,988 454 61 310 563 66

Commercial banks 5,060 12 4 1,380 2,681 111 44 279 492 57

Savings institutions 796 1 0 17 307 343 17 31 71 9

Total assets (in billions) $16,965.8 $506.1 $4,001.2 $269.8 $5,731.6 $339.4 $258.2 $52.2 $102.7 $5,704.5

Commercial banks 15,789.5 434.2 4,001.2 264.3 5,257.6 86.0 156.0 47.6 88.2 5,454.3

Savings institutions 1,176.3 71.9 0.0 5.5 474.0 253.3 102.2 4.6 14.5 250.1

Total deposits (in billions) 13,083.8 272.2 2,885.7 224.7 4,541.0 268.8 217.2 42.9 87.1 4,544.1

Commercial banks 12,151.1 217.4 2,885.7 221.6 4,189.5 73.7 129.9 39.7 75.2 4,318.4

Savings institutions 932.7 54.8 0.0 3.1 351.6 195.1 87.2 3.2 11.9 225.7

Bank net income (in millions) 43,971 2,655 9,356 798 14,046 758 692 327 232 15,108

Commercial banks 40,771 2,324 9,356 767 12,740 286 499 154 210 14,436

Savings institutions 3,200 331 0 31 1,305 472 193 173 22 672

Performance Ratios (annualized, %)

Yield on earning assets 3.59 12.19 2.84 4.09 3.77 3.38 3.86 2.99 3.83 3.12

Cost of funding earning assets 0.41 1.34 0.41 0.48 0.42 0.50 0.37 0.31 0.40 0.31

Net interest margin 3.19 10.85 2.42 3.61 3.35 2.88 3.50 2.68 3.44 2.81

Noninterest income to assets 1.48 2.33 1.84 0.63 1.24 1.11 1.01 6.68 0.90 1.45

Noninterest expense to assets 2.59 5.18 2.45 2.51 2.75 2.53 2.24 5.75 2.91 2.28

Loan and lease loss provision to assets 0.28 3.85 0.20 0.11 0.16 0.02 0.47 0.05 0.07 0.17

Net operating income to assets 1.04 2.07 0.94 1.18 0.98 0.86 1.08 2.50 0.90 1.05

Pretax return on assets 1.49 3.24 1.32 1.39 1.38 1.37 1.71 3.37 1.11 1.55

Return on assets 1.04 2.07 0.94 1.19 0.99 0.91 1.08 2.52 0.91 1.06

Return on equity 9.37 13.64 9.39 10.56 8.32 8.28 10.67 17.02 7.92 9.87

Net charge-offs to loans and leases 0.49 3.93 0.66 0.09 0.20 0.09 0.65 0.12 0.13 0.38

Loan and lease loss provision to 

net charge-offs 104.54 123.61 81.75 183.46 114.35 26.79 102.57 132.82 103.47 89.61

Efficiency ratio 58.77 41.51 61.32 62.44 63.51 65.40 49.96 62.83 71.08 56.25

% of unprofitable institutions 4.15 0.00 0.00 2.65 3.65 8.37 11.48 7.74 4.97 0.00

% of institutions with earnings gains 57.34 38.46 100.00 46.89 63.76 54.41 50.82 45.81 56.66 75.76

Condition Ratios (%)

Earning assets to total assets 90.33 91.83 87.55 93.43 91.05 94.89 97.62 91.82 92.83 90.63

Loss allowance to:

Loans and leases 1.31 4.25 1.45 1.45 1.11 0.83 0.99 1.57 1.29 1.16

Noncurrent loans and leases 97.46 292.73 98.81 134.17 109.60 27.81 108.17 114.74 112.39 69.72

Noncurrent assets plus

other real estate owned to assets 0.81 1.14 0.56 0.83 0.82 1.92 0.68 0.56 0.90 0.86

Equity capital ratio 11.15 15.53 10.03 11.31 11.91 10.88 10.14 14.78 11.53 10.80

Core capital (leverage) ratio 9.57 12.74 8.83 11.01 10.18 10.88 10.26 14.36 11.56 8.93

Common equity tier 1 capital ratio 13.05 12.42 13.50 14.74 12.44 21.21 18.34 31.36 19.81 12.69

Tier 1 risk-based capital ratio 13.14 12.54 13.56 14.76 12.54 21.26 18.56 31.37 19.83 12.79

Total risk-based capital ratio 14.54 14.75 14.73 15.89 13.90 22.17 19.43 32.26 20.96 14.34

Net loans and leases to deposits 70.13 139.25 49.52 78.61 86.70 76.90 82.44 33.51 65.22 61.54

Net loans to total assets 54.08 74.91 35.71 65.48 68.69 60.90 69.33 27.49 55.31 49.03

Domestic deposits to total assets 69.63 53.57 48.50 83.29 78.95 79.18 84.09 82.05 84.80 74.25

Structural Changes

New reporters 2 0 0 0 1 0 0 1 0 0

Institutions absorbed by mergers 54 0 0 9 39 3 0 1 2 0

Failed institutions 3 0 0 0 3 0 0 0 0 0

PRIOR FIRST QUARTERS

(The way it was...)

Number of institutions 2016 6,122 14 5 1,459 3,045 502 60 336 635 66

 2014 6,730 16 4 1,480 3,324 563 54 444 783 62

 2012 7,308 18 5 1,492 3,679 717 52 427 851 67

Total assets (in billions) 2016 $16,293.2 $540.1 $4,014.9 $275.5 $5,741.8 $404.6 $193.1 $60.1 $112.5 $4,950.7

 2014 14,909.9 592.3 3,723.9 244.9 4,977.3 575.5 164.1 70.2 141.2 4,420.5

 2012 13,925.4 559.2 3,660.4 212.6 4,068.3 825.1 98.5 67.6 152.6 4,281.2

Return on assets (%) 2016 0.97 2.75 0.83 1.21 0.90 0.97 1.08 2.35 0.89 0.92

 2014 1.01 3.48 0.77 1.11 0.95 0.84 1.02 1.85 0.82 0.94

 2012 1.00 3.33 0.80 1.27 0.84 0.82 1.78 1.71 0.99 1.01

Net charge-offs to loans & leases (%) 2016 0.46 3.07 0.57 0.10 0.20 0.06 0.68 0.07 0.16 0.42

 2014 0.52 3.03 0.72 0.07 0.27 0.24 0.72 0.11 0.17 0.34

 2012 1.16 4.04 1.48 0.17 0.77 0.96 1.55 0.26 0.33 0.99

Noncurrent assets plus 

OREO to assets (%) 2016 0.96 0.88 0.69 0.75 0.99 1.84 0.90 0.62 1.10 1.10

 2014 1.51 0.87 0.98 0.96 1.57 1.78 1.15 0.87 1.57 1.99

 2012 2.53 1.29 1.55 1.40 2.89 2.38 1.17 1.16 1.72 3.36

Equity capital ratio (%) 2016 11.25 14.83 9.89 11.57 11.82 11.37 10.02 14.65 11.90 11.28

 2014 11.22 14.75 9.34 11.06 11.92 11.69 9.64 13.54 11.56 11.49

 2012 11.26 15.16 9.13 11.28 11.66 10.65 9.56 13.79 11.23 12.32

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

FDIC QUARTERLY 7

TABLE III-A. First Quarter 2017, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,856 1,501 3,605 632 109 9 719 708 1,253 1,471 1,264 441

Commercial banks 5,060 1,318 3,123 517 93 9 372 640 1,047 1,416 1,182 403

Savings institutions 796 183 482 115 16 0 347 68 206 55 82 38

Total assets (in billions) $16,965.8 $88.9 $1,166.3 $1,763.6 $5,363.5 $8,583.5 $3,114.5 $3,539.0 $3,839.3 $3,679.2 $1,032.2 $1,761.6

Commercial banks 15,789.5 78.6 988.5 1,441.1 4,697.7 8,583.5 2,672.9 3,449.1 3,728.4 3,618.0 900.6 1,420.5

Savings institutions 1,176.3 10.3 177.7 322.4 665.8 0.0 441.7 89.8 110.9 61.2 131.6 341.2

Total deposits (in billions) 13,083.8 74.8 977.0 1,412.1 4,137.3 6,482.7 2,346.4 2,795.9 2,867.4 2,793.1 853.7 1,427.2

Commercial banks 12,151.1 66.8 835.6 1,164.4 3,601.6 6,482.7 2,014.3 2,722.8 2,789.2 2,744.1 745.2 1,135.5

Savings institutions 932.7 8.0 141.4 247.6 535.7 0.0 332.2 73.1 78.2 49.0 108.5 291.7

Bank net income (in millions) 43,971 202 3,041 4,833 14,129 21,767 7,119 8,716 9,354 9,827 2,960 5,996

Commercial banks 40,771 173 2,618 4,060 12,153 21,767 6,286 8,544 9,053 9,644 2,596 4,648

Savings institutions 3,200 28 423 773 1,976 0 832 172 302 182 364 1,348

Performance Ratios (annualized, %)

Yield on earning assets 3.59 4.08 4.13 4.04 4.02 3.14 3.68 3.75 2.87 3.70 3.96 4.22

Cost of funding earning assets 0.41 0.44 0.46 0.45 0.47 0.35 0.52 0.34 0.33 0.48 0.34 0.41

Net interest margin 3.19 3.64 3.66 3.59 3.55 2.79 3.16 3.41 2.55 3.22 3.61 3.81

Noninterest income to assets 1.48 1.20 1.12 1.19 1.47 1.60 1.32 1.39 1.82 1.32 1.32 1.66

Noninterest expense to assets 2.59 3.40 3.10 2.76 2.66 2.43 2.54 2.65 2.60 2.45 2.95 2.65

Loan and lease loss provision to assets 0.28 0.11 0.11 0.20 0.49 0.20 0.32 0.36 0.15 0.25 0.19 0.50

Net operating income to assets 1.04 0.91 1.04 1.10 1.06 1.01 0.91 0.98 0.98 1.06 1.15 1.37

Pretax return on assets 1.49 1.06 1.33 1.56 1.55 1.46 1.30 1.43 1.36 1.54 1.52 2.09

Return on assets 1.04 0.91 1.05 1.11 1.06 1.02 0.92 0.99 0.98 1.08 1.16 1.37

Return on equity 9.37 7.11 9.41 9.58 8.81 9.76 7.52 8.23 9.53 10.88 10.59 11.52

Net charge-offs to loans and leases 0.49 0.13 0.10 0.20 0.71 0.49 0.52 0.58 0.34 0.51 0.26 0.67

Loan and lease loss provision to 

net charge-offs 104.54 145.60 161.55 143.87 115.10 85.30 111.75 107.02 85.38 92.87 110.37 123.10

Efficiency ratio 58.77 74.42 68.29 60.66 55.88 58.81 60.26 59.18 62.89 56.92 62.73 50.00

% of unprofitable institutions 4.15 9.39 2.69 0.79 0.00 0.00 5.56 5.08 4.87 3.26 3.09 4.31

% of institutions with earnings gains 57.34 47.63 58.03 72.94 74.31 100.00 64.12 65.11 56.66 49.56 55.14 68.03

Condition Ratios (%)

Earning assets to total assets 90.33 92.38 93.06 92.36 91.25 88.95 89.80 89.50 89.96 89.71 92.22 93.97

Loss allowance to:

Loans and leases 1.31 1.45 1.29 1.18 1.38 1.29 1.26 1.36 1.22 1.35 1.27 1.39

Noncurrent loans and leases 97.46 112.75 132.39 121.71 117.14 77.91 112.85 88.44 89.25 82.06 97.72 179.26

Noncurrent assets plus

other real estate owned to assets 0.81 1.09 0.93 0.81 0.75 0.82 0.69 0.97 0.73 0.92 0.99 0.51

Equity capital ratio 11.15 12.86 11.20 11.59 12.08 10.45 12.29 12.04 10.30 9.90 10.94 11.94

Core capital (leverage) ratio 9.57 12.76 11.05 10.48 10.32 8.68 10.12 9.53 9.16 8.79 10.00 10.96

Common equity tier 1 capital ratio 13.05 20.51 15.39 13.64 13.22 12.40 13.14 12.76 13.16 12.05 13.25 15.29

Tier 1 risk-based capital ratio 13.14 20.56 15.43 13.66 13.39 12.45 13.25 12.86 13.21 12.10 13.35 15.44

Total risk-based capital ratio 14.54 21.64 16.53 14.68 14.93 13.87 14.68 14.31 14.43 13.80 14.46 16.54

Net loans and leases to deposits 70.13 68.62 79.27 85.68 76.25 61.47 73.37 72.08 64.93 67.18 75.93 73.72

Net loans to total assets 54.08 57.71 66.41 68.60 58.82 46.43 55.27 56.94 48.49 51.00 62.80 59.73

Domestic deposits to total assets 69.63 84.11 83.76 79.79 73.56 63.01 68.42 76.39 65.75 59.31 82.64 80.55

Structural Changes

New reporters 2 1 0 1 0 0 0 0 0 0 1 1

Institutions absorbed by mergers 54 13 36 5 0 0 5 7 17 14 8 3

Failed institutions 3 1 2 0 0 0 1 0 1 0 0 1

PRIOR FIRST QUARTERS

(The way it was...)

Number of institutions 2016 6,122 1,663 3,734 616 100 9 752 753 1,325 1,528 1,299 465

 2014 6,730 2,005 4,054 564 99 8 831 852 1,457 1,641 1,414 535

 2012 7,308 2,368 4,276 557 101 6 906 945 1,544 1,767 1,533 613

Total assets (in billions) 2016 $16,293.2 $97.8 $1,179.8 $1,723.1 $5,013.9 $8,278.6 $3,084.7 $3,417.7 $3,624.0 $3,543.5 $962.2 $1,661.2

 2014 14,909.9 118.1 1,246.8 1,493.7 4,651.8 7,399.5 2,963.3 3,032.9 3,416.9 3,247.0 883.0 1,366.9

 2012 13,925.4 137.4 1,283.6 1,419.8 4,681.3 6,403.4 2,823.3 2,918.0 3,207.9 2,967.7 831.1 1,177.5

Return on assets (%) 2016 0.97 0.92 1.03 1.05 1.01 0.92 0.80 0.88 0.93 1.04 1.05 1.33

 2014 1.01 0.80 0.90 1.01 1.17 0.92 1.02 0.88 0.80 1.14 1.08 1.42

 2012 1.00 0.74 0.83 1.06 1.09 0.97 0.97 0.83 0.87 1.08 1.13 1.60

Net charge-offs to loans & leases (%) 2016 0.46 0.12 0.10 0.19 0.62 0.49 0.49 0.54 0.26 0.55 0.30 0.52

 2014 0.52 0.19 0.18 0.25 0.77 0.49 0.75 0.47 0.38 0.61 0.21 0.50

 2012 1.16 0.38 0.58 0.78 1.39 1.25 1.32 1.28 0.90 1.44 0.57 0.89

Noncurrent assets plus 

OREO to assets (%) 2016 0.96 1.22 1.10 0.93 0.81 1.04 0.77 1.13 0.93 1.15 1.10 0.56

 2014 1.51 1.71 1.74 1.75 0.98 1.75 1.08 2.05 1.35 1.86 1.46 0.85

 2012 2.53 2.26 2.88 3.06 1.67 2.98 1.70 3.74 2.28 2.70 2.44 1.85

Equity capital ratio (%) 2016 11.25 12.86 11.34 11.72 12.04 10.65 12.00 12.35 10.32 10.14 11.10 12.12

 2014 11.22 11.85 10.90 11.89 12.64 10.23 12.04 12.32 9.78 10.43 10.95 12.61

 2012 11.26 11.74 10.67 11.74 12.58 10.30 12.57 12.01 8.80 11.14 10.90 13.60

* See Table V-A (page 11) for explanations.
2 0 1 7  •  Volume 1 1  • Number 2

8 FDIC QUARTERLY

TABLE IV-A. Full Year 2016, All FDIC-Insured Institutions

Asset Concentration Groups*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,913 13 5 1,429 3,026 461 65 300 549 65

Commercial banks 5,112 12 5 1,411 2,717 110 50 272 478 57

Savings institutions 801 1 0 18 309 351 15 28 71 8

Total assets (in billions) $16,779.7 $519.0 $4,052.7 $284.9 $5,628.9 $330.8 $256.0 $51.0 $97.5 $5,558.8

Commercial banks 15,627.8 447.2 4,052.7 279.3 5,157.7 89.4 156.5 46.5 83.4 5,315.1

Savings institutions 1,151.9 71.8 0.0 5.6 471.2 241.4 99.5 4.6 14.2 243.7

Total deposits (in billions) 12,894.7 277.9 2,932.9 235.8 4,434.6 262.8 215.3 41.1 82.6 4,411.6

Commercial banks 11,982.5 223.2 2,932.9 232.5 4,084.5 76.7 132.2 38.0 71.0 4,191.3

Savings institutions 912.2 54.7 0.0 3.3 350.1 186.1 83.1 3.1 11.6 220.3

Bank net income (in millions) 170,831 11,419 37,737 3,361 52,788 3,185 2,329 1,441 891 57,680

Commercial banks 157,004 9,655 37,737 3,249 46,329 1,308 1,564 657 804 55,701

Savings institutions 13,827 1,764 0 111 6,459 1,877 765 785 87 1,978

Performance Ratios (%)

Yield on earning assets 3.50 11.54 2.72 4.16 3.71 3.33 3.76 3.07 3.83 3.05

Cost of funding earning assets 0.37 1.17 0.36 0.47 0.40 0.49 0.36 0.32 0.41 0.26

Net interest margin 3.13 10.36 2.36 3.68 3.31 2.84 3.40 2.75 3.42 2.80

Noninterest income to assets 1.54 2.63 1.79 0.68 1.33 1.21 1.11 7.13 1.03 1.51

Noninterest expense to assets 2.57 5.46 2.36 2.54 2.77 2.51 2.43 5.82 3.03 2.25

Loan and lease loss provision to assets 0.29 3.17 0.19 0.16 0.19 -0.04 0.47 0.05 0.09 0.23

Net operating income to assets 1.03 2.28 0.93 1.18 0.96 0.96 0.96 2.79 0.89 1.05

Pretax return on assets 1.51 3.52 1.31 1.43 1.39 1.47 1.52 3.85 1.12 1.57

Return on assets 1.04 2.28 0.93 1.21 0.97 0.99 0.96 2.85 0.93 1.06

Return on equity 9.29 15.35 9.43 10.45 8.12 8.63 9.46 18.35 7.91 9.60

Net charge-offs to loans and leases 0.47 3.34 0.55 0.15 0.22 0.07 0.56 0.22 0.17 0.41

Loan and lease loss provision to 

net charge-offs 113.36 122.14 96.14 159.62 123.25 -95.55 118.40 80.73 95.09 109.47

Efficiency ratio 58.27 44.24 60.75 61.40 62.96 63.99 53.04 60.18 71.92 54.82

% of unprofitable institutions 4.36 0.00 0.00 1.96 4.40 7.81 10.77 7.00 5.83 1.54

% of institutions with earnings gains 64.96 46.15 80.00 58.99 70.39 60.95 64.62 56.00 57.92 75.38

Condition Ratios (%)

Earning assets to total assets 90.01 91.48 87.42 92.85 90.83 94.66 97.34 91.93 92.52 90.11

Loss allowance to:

Loans and leases 1.31 3.84 1.46 1.39 1.11 0.86 0.97 1.53 1.30 1.18

Noncurrent loans and leases 92.18 270.75 92.71 143.56 105.09 29.02 103.30 104.97 108.73 65.88

Noncurrent assets plus

other real estate owned to assets 0.86 1.14 0.61 0.77 0.87 1.97 0.70 0.63 0.94 0.96

Equity capital ratio 11.10 14.85 9.97 11.30 11.81 11.29 10.04 15.23 11.42 10.85

Core capital (leverage) ratio 9.48 12.63 8.67 10.85 10.11 11.15 10.24 14.85 11.39 8.88

Common equity tier 1 capital ratio 12.87 11.85 13.40 14.43 12.32 21.83 18.14 32.64 19.46 12.40

Tier 1 risk-based capital ratio 12.96 11.97 13.43 14.45 12.43 21.88 18.33 32.65 19.49 12.50

Total risk-based capital ratio 14.34 14.14 14.54 15.55 13.79 22.80 19.22 33.52 20.61 14.06

Net loans and leases to deposits 71.22 144.60 49.59 80.07 87.61 78.78 82.81 34.34 65.22 63.47

Net loans to total assets 54.73 77.44 35.89 66.26 69.02 62.59 69.65 27.66 55.25 50.37

Domestic deposits to total assets 69.41 52.83 48.14 82.76 78.48 79.43 84.11 80.53 84.71 74.96

Structural Changes

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

Institutions absorbed by mergers 251 0 0 39 185 8 1 4 13 1

Failed institutions 5 0 0 0 4 0 0 0 1 0

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2015 6,182 14 4 1,479 3,089 500 65 332 632 67

 2013 6,812 16 4 1,532 3,378 588 55 405 772 62

 2011 7,357 18 4 1,545 3,769 732 59 377 790 63

Total assets (in billions) 2015 $15,967.6 $549.1 $3,774.6 $277.6 $5,892.1 $385.4 $187.3 $57.5 $113.8 $4,730.3

 2013 14,730.8 590.9 3,700.2 261.6 4,921.1 486.9 162.5 62.8 137.6 4,407.1

 2011 13,891.3 538.7 3,456.4 215.7 4,086.1 825.4 97.2 56.1 138.6 4,477.2

Return on assets (%) 2015 1.04 2.84 0.87 0.96 0.95 0.83 1.04 2.68 0.91 1.12

 2013 1.07 3.35 0.86 1.15 0.91 0.98 1.15 1.93 0.85 1.11

 2011 0.88 3.49 0.74 1.11 0.63 0.56 1.68 1.92 0.92 0.89

Net charge-offs to loans & leases (%) 2015 0.44 2.79 0.59 0.10 0.20 0.13 0.62 0.20 0.20 0.41

 2013 0.69 3.20 0.97 0.14 0.43 0.37 0.80 0.48 0.33 0.49

 2011 1.55 5.26 1.97 0.40 1.18 0.90 1.87 0.56 0.54 1.25

Noncurrent assets plus 

OREO to assets (%) 2015 0.97 0.90 0.71 0.68 0.93 1.92 0.97 0.61 1.19 1.16

 2013 1.63 0.93 1.07 0.95 1.65 2.14 1.23 0.84 1.44 2.18

 2011 2.61 1.41 1.61 1.46 3.05 2.61 1.28 1.11 1.69 3.25

Equity capital ratio (%) 2015 11.24 14.29 10.13 11.32 11.76 11.37 10.12 15.02 11.80 11.08

 2013 11.15 14.73 9.27 10.97 11.79 11.62 9.51 13.50 11.34 11.52

 2011 11.16 15.11 8.89 11.22 11.69 10.39 9.82 14.51 11.45 12.08

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

FDIC QUARTERLY 9

TABLE IV-A. Full Year 2016, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

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

Commercial banks 5,112 1,354 3,154 506 89 9 374 651 1,063 1,431 1,186 407

Savings institutions 801 187 483 115 16 0 350 69 208 54 82 38

Total assets (in billions) $16,779.7 $91.5 $1,173.9 $1,761.7 $5,305.7 $8,446.8 $3,096.5 $3,507.3 $3,784.3 $3,633.8 $1,010.7 $1,747.0

Commercial banks 15,627.8 80.9 996.9 1,444.3 4,658.9 8,446.8 2,658.1 3,424.1 3,672.2 3,574.2 885.4 1,413.7

Savings institutions 1,151.9 10.6 177.0 317.5 646.9 0.0 438.4 83.2 112.1 59.6 125.3 333.2

Total deposits (in billions) 12,894.7 76.8 979.9 1,401.2 4,072.7 6,364.1 2,324.1 2,762.2 2,820.6 2,742.2 834.2 1,411.4

Commercial banks 11,982.5 68.6 839.4 1,159.2 3,551.2 6,364.1 1,995.1 2,695.2 2,741.5 2,694.0 731.7 1,125.0

Savings institutions 912.2 8.2 140.5 242.0 521.5 0.0 329.0 67.1 79.1 48.2 102.5 286.4

Bank net income (in millions) 170,831 812 12,330 17,027 54,861 85,801 26,566 35,152 36,764 38,977 9,970 23,402

Commercial banks 157,004 699 10,487 14,455 45,561 85,801 23,491 34,431 35,424 38,497 8,527 16,634

Savings institutions 13,827 113 1,842 2,572 9,300 0 3,075 721 1,340 480 1,443 6,768

Performance Ratios (%)

Yield on earning assets 3.50 4.12 4.14 4.04 3.88 3.05 3.54 3.63 2.79 3.65 3.97 4.10

Cost of funding earning assets 0.37 0.44 0.46 0.43 0.43 0.30 0.46 0.31 0.30 0.42 0.32 0.40

Net interest margin 3.13 3.68 3.68 3.61 3.45 2.74 3.07 3.32 2.49 3.24 3.65 3.70

Noninterest income to assets 1.54 1.21 1.20 1.22 1.58 1.63 1.33 1.45 1.85 1.35 1.41 1.91

Noninterest expense to assets 2.57 3.47 3.17 2.86 2.68 2.36 2.54 2.57 2.54 2.42 3.11 2.75

Loan and lease loss provision to assets 0.29 0.13 0.13 0.25 0.45 0.23 0.32 0.36 0.14 0.29 0.28 0.47

Net operating income to assets 1.03 0.87 1.05 1.00 1.06 1.02 0.86 1.01 0.99 1.06 1.01 1.40

Pretax return on assets 1.51 1.04 1.35 1.47 1.59 1.49 1.23 1.50 1.40 1.57 1.39 2.18

Return on assets 1.04 0.90 1.08 1.02 1.07 1.03 0.87 1.02 1.00 1.09 1.02 1.40

Return on equity 9.29 6.95 9.52 8.68 8.90 9.70 7.22 8.33 9.66 10.82 9.22 11.69

Net charge-offs to loans and leases 0.47 0.20 0.14 0.25 0.64 0.47 0.52 0.54 0.27 0.53 0.31 0.58

Loan and lease loss provision to 

net charge-offs 113.36 106.52 138.47 143.41 118.72 101.73 113.28 113.23 101.54 103.00 141.89 131.99

Efficiency ratio 58.27 75.30 68.40 61.74 56.00 57.33 61.13 57.53 62.00 55.82 64.33 50.28

% of unprofitable institutions 4.36 9.28 2.89 1.45 0.95 0.00 5.52 7.08 5.27 2.49 3.55 4.04

% of institutions with earnings gains 64.96 55.48 66.24 79.39 75.24 55.56 69.06 67.08 64.99 61.35 64.04 69.44

Condition Ratios (%)

Earning assets to total assets 90.01 92.09 92.85 92.19 90.96 88.54 89.57 89.02 89.51 89.55 91.88 93.74

Loss allowance to:

Loans and leases 1.31 1.42 1.30 1.18 1.36 1.31 1.25 1.35 1.25 1.35 1.28 1.36

Noncurrent loans and leases 92.18 112.36 132.89 119.52 110.99 72.99 109.16 83.10 85.26 76.28 93.75 172.76

Noncurrent assets plus

other real estate owned to assets 0.86 1.10 0.95 0.84 0.78 0.90 0.70 1.03 0.79 1.00 1.06 0.53

Equity capital ratio 11.10 12.71 11.15 11.55 11.87 10.50 12.11 12.05 10.32 9.87 10.92 11.79

Core capital (leverage) ratio 9.48 12.62 10.98 10.44 10.17 8.62 9.95 9.52 9.03 8.74 9.95 10.90

Common equity tier 1 capital ratio 12.87 20.15 15.32 13.46 12.97 12.25 12.97 12.58 12.97 11.90 13.09 15.03

Tier 1 risk-based capital ratio 12.96 20.19 15.36 13.48 13.15 12.29 13.12 12.68 13.03 11.91 13.19 15.20

Total risk-based capital ratio 14.34 21.27 16.47 14.49 14.72 13.68 14.55 14.14 14.20 13.57 14.31 16.36

Net loans and leases to deposits 71.22 69.65 79.85 87.12 77.02 62.70 73.97 73.24 65.68 68.82 77.56 74.72

Net loans to total assets 54.73 58.48 66.66 69.29 59.12 47.24 55.52 57.68 48.95 51.93 64.01 60.37

Domestic deposits to total assets 69.41 83.98 83.46 79.25 73.14 62.91 68.10 76.15 65.71 59.10 82.46 80.16

Structural Changes

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

Institutions absorbed by mergers 251 89 135 25 2 0 33 38 62 53 42 23

Failed institutions 5 4 1 0 0 0 1 1 1 0 2 0

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2015 6,182 1,688 3,792 595 99 8 762 762 1,337 1,543 1,307 471

 2013 6,812 2,056 4,090 559 100 7 840 869 1,470 1,659 1,431 543

 2011 7,357 2,415 4,284 551 100 7 915 957 1,552 1,773 1,542 618

Total assets (in billions) 2015 $15,967.6 $99.2 $1,199.9 $1,682.4 $5,163.6 $7,822.6 $3,074.1 $3,372.6 $3,503.7 $3,444.0 $943.1 $1,630.3

 2013 14,730.8 119.7 1,246.1 1,468.5 4,821.1 7,075.3 2,927.2 2,998.8 3,376.9 3,222.9 869.9 1,335.1

 2011 13,891.3 138.7 1,279.9 1,410.9 4,490.8 6,571.0 2,864.6 2,942.8 3,184.5 2,918.2 812.9 1,168.4

Return on assets (%) 2015 1.04 0.84 1.06 1.10 1.02 1.05 0.87 1.03 0.96 1.16 1.09 1.31

 2013 1.07 0.70 0.91 1.16 1.06 1.08 0.87 0.98 0.95 1.24 1.09 1.55

 2011 0.88 0.52 0.56 0.79 1.04 0.85 1.01 0.52 0.78 0.95 0.94 1.47

Net charge-offs to loans & leases (%) 2015 0.44 0.19 0.16 0.21 0.56 0.48 0.48 0.50 0.27 0.52 0.24 0.52

 2013 0.69 0.35 0.36 0.41 0.90 0.68 0.92 0.66 0.49 0.87 0.32 0.57

 2011 1.55 0.62 0.90 1.18 1.91 1.56 1.86 1.66 1.19 1.85 0.89 1.15

Noncurrent assets plus 

OREO to assets (%) 2015 0.97 1.25 1.12 0.93 0.75 1.09 0.75 1.15 0.94 1.19 1.04 0.53

 2013 1.63 1.75 1.81 1.89 0.99 1.97 1.12 2.23 1.47 1.99 1.58 0.91

 2011 2.61 2.34 3.01 3.13 1.88 2.92 1.78 3.84 2.31 2.76 2.60 1.97

Equity capital ratio (%) 2015 11.24 12.55 11.25 11.69 12.02 10.60 11.78 12.22 10.50 10.22 11.04 12.03

 2013 11.15 11.68 10.78 11.79 12.32 10.28 12.02 12.19 9.66 10.42 10.87 12.65

 2011 11.16 11.83 10.65 11.73 12.62 10.13 12.26 11.98 8.68 11.12 10.92 13.48

* See Table V-A (page 11) for explanations.
2 0 1 7  •  Volume 1 1  • Number 2

10 FDIC QUARTERLY

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

Asset Concentration Groups*

March 31, 2017 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.68 0.20 0.91 0.87 0.46 0.94 0.35 1.37 1.24 0.95

Construction and development 0.35 0.00 0.80 0.88 0.33 0.47 1.61 0.74 1.22 0.18

Nonfarm nonresidential 0.27 0.00 0.32 0.74 0.26 0.33 0.57 1.04 0.94 0.22

Multifamily residential real estate 0.13 0.00 0.09 0.19 0.13 0.29 0.12 2.54 1.04 0.11

Home equity loans 0.63 0.79 1.04 0.40 0.45 0.60 0.33 0.44 0.60 0.72

Other 1-4 family residential 1.14 0.22 1.26 1.05 0.88 1.06 0.33 1.77 1.46 1.44

Commercial and industrial loans 0.34 0.97 0.31 0.98 0.30 0.54 0.24 1.16 1.15 0.37

Loans to individuals 1.25 1.41 1.09 1.27 1.10 0.95 0.68 1.43 1.56 1.45

Credit card loans 1.23 1.41 1.05 0.96 0.95 0.98 0.68 0.96 2.65 1.14

Other loans to individuals 1.28 1.29 1.15 1.29 1.12 0.95 0.68 1.47 1.53 1.61

All other loans and leases (including farm) 0.32 1.14 0.42 1.32 0.19 0.17 0.04 0.48 0.56 0.26

Total loans and leases 0.65 1.39 0.70 0.92 0.44 0.88 0.51 1.10 1.04 0.78

Percent of Loans Noncurrent**

All real estate loans 1.82 0.61 2.62 1.00 1.03 3.25 1.41 1.53 1.25 2.96

Construction and development 0.67 0.00 0.41 0.74 0.67 0.68 5.24 2.12 0.91 0.68

Nonfarm nonresidential 0.67 0.00 0.64 0.94 0.67 1.21 3.68 1.37 1.42 0.54

Multifamily residential real estate 0.17 0.00 0.07 0.39 0.18 0.48 0.72 0.52 1.58 0.13

Home equity loans 2.49 0.00 4.14 0.42 1.31 1.64 1.95 0.70 0.55 3.50

Other 1-4 family residential 3.03 0.69 3.63 0.89 1.77 3.76 1.13 1.69 1.27 4.28

Commercial and industrial loans 1.21 0.90 1.23 1.52 1.26 0.83 0.57 1.49 1.11 1.12

Loans to individuals 0.91 1.47 0.99 0.56 0.73 0.45 0.59 0.79 0.68 0.62

Credit card loans 1.32 1.52 1.14 0.35 0.98 0.85 1.34 0.63 1.07 1.15

Other loans to individuals 0.52 0.66 0.71 0.57 0.70 0.41 0.41 0.80 0.67 0.34

All other loans and leases (including farm) 0.24 0.19 0.16 1.14 0.35 0.25 1.78 0.58 0.57 0.12

Total loans and leases 1.34 1.45 1.46 1.08 1.01 2.98 0.91 1.37 1.15 1.67

Percent of Loans Charged-Off (net, YTD)

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

Construction and development -0.05 0.00 0.00 -0.04 -0.05 0.09 -0.36 0.35 -0.03 -0.09

Nonfarm nonresidential 0.02 0.00 -0.01 0.00 0.03 0.54 -0.02 0.08 0.01 0.00

Multifamily residential real estate -0.01 0.00 -0.01 0.03 0.00 0.00 0.00 0.10 0.01 -0.03

Home equity loans 0.21 -1.11 0.38 0.17 0.14 -0.08 0.05 0.01 0.06 0.25

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

Commercial and industrial loans 0.32 2.82 0.20 0.26 0.37 0.28 0.85 -0.04 0.37 0.24

Loans to individuals 2.34 3.97 3.19 0.38 1.07 1.12 1.02 0.41 0.48 1.70

Credit card loans 3.63 4.07 3.33 2.17 3.15 3.66 2.79 0.93 1.11 3.17

Other loans to individuals 1.07 1.97 2.92 0.23 0.76 0.85 0.59 0.36 0.47 0.88

All other loans and leases (including farm) 0.10 0.33 0.02 0.04 0.15 0.18 0.07 0.50 0.14 0.12

Total loans and leases 0.49 3.93 0.66 0.09 0.20 0.09 0.65 0.12 0.13 0.38

Loans Outstanding (in billions)

All real estate loans $4,626.2 $0.3 $544.4 $111.6 $2,441.6 $188.4 $56.5 $10.0 $44.8 $1,228.5

Construction and development 319.2 0.0 14.1 6.4 231.4 5.3 0.3 0.8 2.7 58.1

Nonfarm nonresidential 1,346.6 0.0 44.8 29.9 964.5 16.5 3.8 3.4 10.5 273.2

Multifamily residential real estate 390.4 0.0 72.1 3.6 254.5 4.5 0.7 0.3 1.3 53.3

Home equity loans 430.0 0.0 59.7 2.1 198.1 10.7 4.7 0.3 1.8 152.6

Other 1-4 family residential 1,984.8 0.2 307.7 27.4 750.5 150.8 46.8 4.6 24.9 672.0

Commercial and industrial loans 1,960.7 15.2 312.9 20.7 933.0 5.5 8.8 1.9 4.6 658.2

Loans to individuals 1,545.2 380.2 262.9 6.1 308.4 4.6 105.4 1.8 4.5 471.1

Credit card loans 756.1 361.4 170.3 0.5 38.2 0.4 20.2 0.1 0.1 164.8

Other loans to individuals 789.0 18.9 92.6 5.7 270.2 4.2 85.2 1.7 4.4 306.4

All other loans and leases (including farm) 1,167.1 0.2 330.2 41.0 299.2 10.0 10.2 0.9 3.7 471.8

Total loans and leases (plus unearned income) 9,299.2 395.9 1,450.4 179.4 3,982.2 208.5 180.9 14.6 57.6 2,829.7

Memo: Other Real Estate Owned (in millions)

All other real estate owned 10,364.9 0.1 601.0 314.9 6,743.2 273.0 99.0 93.3 261.5 1,979.0

Construction and development 3,204.9 0.0 3.0 92.2 2,636.1 62.0 9.5 38.5 86.8 276.9

Nonfarm nonresidential 2,685.7 0.0 50.0 101.0 2,058.7 31.2 16.3 27.4 77.9 323.3

Multifamily residential real estate 181.6 0.0 10.0 17.0 138.5 6.1 0.0 2.9 5.0 2.1

1-4 family residential 3,621.6 0.1 398.0 61.0 1,728.8 146.9 56.7 23.7 83.1 1,123.2

Farmland 148.6 0.0 0.0 43.6 85.8 1.6 0.0 0.6 8.6 8.4

GNMA properties 501.3 0.0 121.0 0.2 95.3 25.2 16.5 0.2 0.1 242.9

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

March 31, 2017 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.68 1.29 0.65 0.37 0.55 0.96 0.51 0.79 0.70 0.96 0.68 0.29

Construction and development 0.35 0.99 0.61 0.29 0.31 0.25 0.34 0.32 0.38 0.32 0.41 0.29

Nonfarm nonresidential 0.27 1.01 0.43 0.24 0.27 0.17 0.39 0.22 0.30 0.21 0.31 0.18

Multifamily residential real estate 0.13 0.69 0.30 0.11 0.11 0.10 0.11 0.07 0.17 0.15 0.23 0.08

Home equity loans 0.63 0.66 0.44 0.35 0.49 0.81 0.44 0.77 0.71 0.70 0.46 0.26

Other 1-4 family residential 1.14 1.58 0.94 0.62 0.93 1.48 0.83 1.34 1.02 1.58 1.42 0.45

Commercial and industrial loans 0.34 1.37 0.66 0.45 0.26 0.34 0.28 0.36 0.32 0.35 0.47 0.33

Loans to individuals 1.25 1.68 1.25 1.22 1.17 1.34 1.04 1.72 0.98 1.21 0.89 1.21

Credit card loans 1.23 4.51 1.87 1.67 1.33 1.08 1.04 1.40 1.03 1.11 0.68 1.73

Other loans to individuals 1.28 1.62 1.20 1.06 0.97 1.57 1.04 2.04 0.97 1.34 0.98 0.79

All other loans and leases (including farm) 0.32 1.20 0.90 0.41 0.19 0.33 0.11 0.18 0.41 0.47 0.35 0.33

Total loans and leases 0.65 1.17 0.59 0.44 0.59 0.77 0.53 0.78 0.59 0.78 0.60 0.50

Percent of Loans Noncurrent** 

All real estate loans 1.82 1.32 0.95 0.85 1.40 3.05 1.36 2.37 2.06 2.55 1.21 0.57

Construction and development 0.67 1.21 1.19 0.72 0.37 0.64 0.66 1.20 0.52 0.46 0.57 0.52

Nonfarm nonresidential 0.67 1.48 0.88 0.66 0.65 0.52 0.79 0.64 0.76 0.61 0.70 0.46

Multifamily residential real estate 0.17 0.56 0.52 0.20 0.09 0.12 0.14 0.21 0.15 0.23 0.43 0.09

Home equity loans 2.49 0.72 0.57 0.68 1.38 3.84 2.39 3.15 2.37 2.81 1.21 0.59

Other 1-4 family residential 3.03 1.38 1.04 1.36 2.44 4.44 2.17 3.71 3.20 4.21 2.34 0.71

Commercial and industrial loans 1.21 1.72 1.25 1.65 1.26 1.07 1.02 1.12 0.95 1.42 2.10 1.23

Loans to individuals 0.91 0.91 0.78 0.79 1.07 0.78 0.97 1.02 0.68 0.87 0.91 0.93

Credit card loans 1.32 2.74 1.55 1.67 1.46 1.13 1.17 1.42 1.12 1.18 1.37 1.76

Other loans to individuals 0.52 0.87 0.73 0.49 0.57 0.47 0.66 0.64 0.52 0.43 0.71 0.27

All other loans and leases (including farm) 0.24 0.94 0.84 0.72 0.30 0.13 0.27 0.15 0.16 0.30 0.39 0.41

Total loans and leases 1.34 1.29 0.98 0.97 1.18 1.66 1.12 1.54 1.37 1.65 1.30 0.77

Percent of Loans Charged-Off (net, YTD) 

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

Construction and development -0.05 0.00 0.00 -0.02 -0.07 -0.09 -0.02 -0.03 -0.03 -0.13 -0.01 -0.11

Nonfarm nonresidential 0.02 -0.05 0.01 0.02 0.07 -0.03 0.05 0.06 0.03 -0.03 0.01 0.01

Multifamily residential real estate -0.01 -0.03 0.02 0.00 -0.01 -0.02 0.00 0.00 0.00 -0.05 -0.01 -0.01

Home equity loans 0.21 0.05 0.07 0.08 0.14 0.29 0.19 0.26 0.24 0.21 0.04 0.00

Other 1-4 family residential 0.04 0.08 0.04 0.03 0.05 0.04 0.07 0.05 0.03 0.04 0.02 0.00

Commercial and industrial loans 0.32 0.24 0.28 0.31 0.44 0.24 0.22 0.35 0.20 0.31 0.50 0.55

Loans to individuals 2.34 0.84 0.88 1.89 2.54 2.26 2.27 2.38 2.22 2.52 1.56 2.43

Credit card loans 3.63 18.65 6.28 4.75 3.87 3.23 3.11 4.00 3.33 3.45 2.78 4.59

Other loans to individuals 1.07 0.51 0.50 0.85 0.75 1.40 0.86 0.78 1.81 1.23 1.00 0.62

All other loans and leases (including farm) 0.10 0.06 0.21 0.11 0.11 0.09 0.10 0.14 0.10 0.08 0.14 0.05

Total loans and leases 0.49 0.13 0.10 0.20 0.71 0.49 0.52 0.58 0.34 0.51 0.26 0.67

Loans Outstanding (in billions) 

All real estate loans $4,626.2 $35.7 $606.8 $891.9 $1,440.6 $1,651.3 $939.4 $917.6 $963.2 $864.9 $419.6 $521.4

Construction and development 319.2 2.0 55.9 84.0 105.9 71.4 57.1 60.3 54.9 50.3 63.3 33.2

Nonfarm nonresidential 1,346.6 9.0 231.8 364.4 449.0 292.4 304.0 275.6 209.6 192.3 172.4 192.6

Multifamily residential real estate 390.4 1.0 33.3 94.6 143.9 117.5 140.6 44.0 103.0 33.4 17.9 51.5

Home equity loans 430.0 0.9 24.6 46.9 142.7 214.9 82.4 110.8 107.1 81.3 19.9 28.5

Other 1-4 family residential 1,984.8 16.2 212.5 280.8 583.3 892.0 351.2 415.0 465.9 419.4 129.3 204.0

Commercial and industrial loans 1,960.7 6.1 98.7 187.9 717.0 950.9 296.0 490.7 426.7 395.9 129.0 222.4

Loans to individuals 1,545.2 3.4 31.6 82.9 714.8 712.4 330.7 382.0 219.7 311.7 62.2 238.9

Credit card loans 756.1 0.1 2.0 21.5 402.5 330.1 205.6 186.9 57.8 180.4 19.3 106.1

Other loans to individuals 789.0 3.3 29.6 61.4 312.3 382.3 125.1 195.1 161.9 131.3 42.9 132.8

All other loans and leases (including farm) 1,167.1 6.9 47.9 62.0 327.1 723.2 177.8 252.9 275.5 330.3 46.0 84.8

Total loans and leases 

(plus unearned income) 9,299.2 52.1 785.0 1,224.8 3,199.6 4,037.8 1,743.9 2,043.1 1,885.1 1,902.8 656.8 1,067.5

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 10,364.9 296.9 3,152.1 2,338.5 2,273.0 2,304.3 1,833.3 2,428.8 1,951.6 1,849.5 1,617.1 684.6

Construction and development 3,204.9 84.2 1,450.6 920.2 449.0 300.9 310.2 890.2 417.4 643.7 698.9 244.4

Nonfarm nonresidential 2,685.7 96.5 994.2 727.3 574.2 293.5 480.4 535.5 520.0 378.6 553.7 217.6

Multifamily residential real estate 181.6 13.8 65.1 55.9 20.7 26.0 39.9 33.7 31.8 42.7 17.6 15.8

1-4 family residential 3,621.6 85.5 564.7 566.2 1,068.1 1,337.1 915.9 857.9 807.8 557.3 298.9 183.7

Farmland 148.6 16.7 75.0 44.7 8.1 4.1 8.5 36.9 24.5 27.0 40.4 11.4

GNMA properties 501.3 0.2 2.5 24.1 152.9 321.7 78.4 74.6 150.0 179.2 7.6 11.5

* Regions:

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

U.S. Virgin Islands

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
2 0 1 7  •  Volume 1 1  • Number 2

12 FDIC QUARTERLY

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

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd

Quarter 

2016

2nd

Quarter 

2016

1st 

Quarter 

2016

% 

Change 

16Q1-

17Q1

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,418 1,425 1,441 1,446 1,429 -0.8 58 826 424 101 9

Total assets of institutions reporting derivatives $15,362,217 $15,183,863 $15,189,007 $15,033,250 $14,766,710 4.0 $4,332 $352,576 $1,323,761 $5,098,034 $8,583,515

Total deposits of institutions reporting derivatives 11,768,696 11,589,570 11,513,889 11,313,864 11,189,572 5.2 3,631 293,122 1,062,767 3,926,463 6,482,713

Total derivatives 180,509,183 166,795,905 179,902,250 192,350,483 195,508,112 -7.7 225 25,942 119,695 46,445,639 133,917,682

Derivative Contracts by Underlying Risk Exposure 

Interest rate 132,702,864 124,479,961 132,992,944 143,794,696 147,217,558 -9.9 206 25,786 115,281 38,794,347 93,767,243

Foreign exchange* 38,313,517 33,277,647 36,299,774 37,701,788 37,129,026 3.2 0 1 3,334 7,081,614 31,228,569

Equity 2,839,056 2,487,752 2,734,807 2,672,364 2,533,921 12.0 0 0 167 165,730 2,673,160

Commodity & other (excluding credit derivatives) 1,349,981 1,257,180 1,312,260 1,328,302 1,209,774 11.6 0 1 28 85,167 1,264,785

Credit 5,303,594 5,293,365 6,562,465 6,853,333 7,417,833 -28.5 0 1 885 318,782 4,983,926

Total 180,495,880 166,795,905 179,902,250 192,350,483 195,508,112 -7.7 93 12,824 119,642 46,445,639 133,917,682

Derivative Contracts by Transaction Type 

Swaps 99,182,539 96,383,751 103,013,911 111,900,682 114,814,113 -13.6 19 6,196 80,421 25,495,034 73,600,869

Futures & forwards 39,858,095 34,192,699 36,958,352 38,790,403 37,151,052 7.3 17 3,273 19,270 8,615,182 31,220,353

Purchased options 16,947,409 14,799,704 15,466,148 16,277,239 16,857,276 0.5 0 319 4,190 5,863,363 11,079,536

Written options 17,051,369 14,586,156 15,459,962 16,012,000 16,706,694 2.1 56 3,035 14,742 5,930,275 11,103,260

Total 173,039,411 159,962,310 170,898,372 182,980,323 185,529,134 -6.7 93 12,823 118,623 45,903,855 127,004,018

Fair Value of Derivative Contracts 

Interest rate contracts 65,735 62,630 77,292 75,051 75,481 -12.9 0 81 230 33,118 32,305

Foreign exchange contracts 1,613 10,779 13,372 11,369 -11,530 N/M 0 0 11 2,833 -1,231

Equity contracts -4,921 -2,181 1,643 6,637 5,035 N/M 0 0 0 -12 -4,909

Commodity & other (excluding credit derivatives) 118 622 -2,185 -3,151 -4,310 N/M 0 0 0 -201 318

Credit derivatives as guarantor** 24,958 16,617 17,871 1,037 2,901 760.3 0 -1 -1 436 24,524

Credit derivatives as beneficiary** -24,932 -15,028 -17,575 -167 -966 N/M 0 0 -29 -130 -24,773

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 61,926,338 55,052,877 58,874,863 66,424,468 65,650,625 -5.7 34 5,680 19,604 12,197,014 49,704,006

 1-5 years 46,450,806 43,262,497 45,382,723 47,001,897 50,714,212 -8.4 25 2,023 30,579 12,133,656 34,284,523

 > 5 years 29,972,991 29,761,959 32,522,164 33,930,510 34,845,968 -14.0 23 6,076 46,396 8,898,588 21,021,908

Foreign exchange and gold contracts < 1 year 27,320,413 23,910,532 25,797,765 26,622,784 26,231,748 4.2 0 0 1,971 4,864,826 22,453,616

 1-5 years 4,772,297 4,453,265 4,096,173 4,112,254 4,081,595 16.9 0 0 587 900,678 3,871,032

 > 5 years 2,429,320 2,420,119 1,901,381 2,150,431 1,819,360 33.5 0 0 82 664,278 1,764,961

Equity contracts < 1 year 2,202,638 1,847,254 1,954,392 1,907,096 1,841,069 19.6 0 0 15 49,180 2,153,444

 1-5 years 762,751 680,094 821,844 709,947 674,710 13.0 0 0 63 43,536 719,152

 > 5 years 84,970 122,956 129,226 134,063 129,076 -34.2 0 0 0 15,406 69,564

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 2,722,501 2,681,842 2,826,215 3,032,137 2,813,615 -3.2 0 4 46 92,030 2,630,421

 1-5 years 3,054,143 3,198,687 4,009,130 4,354,280 4,800,922 -36.4 0 5 157 161,837 2,892,144

 > 5 years 487,184 339,228 540,260 368,331 619,196 -21.3 0 16 237 34,922 452,010

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 25.7 29.2 35.2 37.2 34.5 0.0 0.4 0.6 15.7 38.5

Total potential future exposure to tier 1 capital (%) 46.6 44.0 41.0 43.5 47.5 0.1 0.3 0.7 22.2 74.5

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 72.3 73.2 76.2 80.7 82.0 0.1 0.7 1.3 37.9 112.9

Credit losses on derivatives  1.2 30.3 38.1 31.9 13.3 -91.0 0.0 0.0 0.0 0.3 1.0

HELD FOR TRADING 

Number of institutions reporting derivatives 201 260 251 257 252 -20.2 3 44 91 55 8

Total assets of institutions reporting derivatives 12,124,340 12,093,950 12,138,739 11,985,163 11,719,834 3.5 248 21,235 329,567 3,463,883 8,309,408

Total deposits of institutions reporting derivatives 9,265,768 9,222,752 9,188,820 8,976,508 8,831,048 4.9 213 17,747 261,671 2,736,768 6,249,369

Derivative Contracts by Underlying Risk Exposure 

Interest rate 130,188,927 121,957,335 130,490,614 141,316,485 144,689,181 -10.0 5 642 35,043 38,258,164 91,895,073

Foreign exchange 35,648,870 31,228,297 33,353,870 34,671,042 34,029,316 4.8 0 0 2,786 6,823,412 28,822,671

Equity 2,823,564 2,472,540 2,718,187 2,656,373 2,510,439 12.5 0 0 0 153,501 2,670,063

Commodity & other 1,321,931 1,255,198 1,310,469 1,326,621 1,208,052 9.4 0 1 14 58,040 1,263,877

Total 169,983,292 156,913,371 167,873,141 179,970,521 182,436,988 -6.8 5 643 37,843 45,293,117 124,651,684

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  3,906 -1,376 2,962 1,906 3,072 27.1 0 0 24 1,123 2,759

Foreign exchange** 1,684 5,941 2,294 3,736 1,407 19.7 0 0 3 -137 1,818

Equity** 922 574 728 972 670 37.6 0 0 6 10 907

Commodity & other (including credit derivatives)** 546 844 437 420 455 20.0 0 0 1 -120 665

Total trading revenues** 7,059 5,984 6,421 7,034 5,604 26.0 0 0 34 876 6,149

Share of Revenue 

Trading revenues to gross revenues (%)** 5.4 4.6 4.9 5.5 4.6 0.0 0.0 0.9 2.5 6.7

Trading revenues to net operating revenues (%)** 24.0 19.9 20.7 24.7 22.6 0.0 0.0 4.2 11.6 29.2

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 830 1,295 1,320 1,325 1,302 -36.3 15 325 385 96 9

Total assets of institutions reporting derivatives 14,907,649 14,886,289 14,893,525 14,754,766 14,523,713 2.6 1,143 154,668 1,231,829 4,936,495 8,583,515

Total deposits of institutions reporting derivatives 11,394,815 11,348,196 11,271,425 11,087,225 10,994,562 3.6 947 128,565 988,292 3,794,298 6,482,713

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,500,806 2,522,626 2,502,329 2,478,211 2,528,378 -1.1 88 12,179 80,186 536,183 1,872,170

Foreign exchange 511,772 509,119 504,491 513,919 538,565 -5.0 0 0 414 35,199 476,159

Equity 15,492 15,211 16,620 15,991 23,483 -34.0 0 0 167 12,228 3,097

Commodity & other 28,049 1,982 1,791 1,681 1,722 1,528.9 0 0 15 27,127 908

Total notional amount 3,056,119 3,048,938 3,025,231 3,009,802 3,092,147 -1.2 88 12,180 80,781 610,738 2,352,333

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

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

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

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

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

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

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

1st 

Quarter 

2017

4th 

Quarter

2016

3rd 

Quarter

2016

2nd 

Quarter

2016

1st 

Quarter

2016

% 

Change 

16Q1-

17Q1

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 66 75 74 74 73 -9.6 0 6 19 34 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $634,357 $643,700 $668,378 $687,192 $704,679 -10.0 $0 $1,658 $13,347 $86,820 $532,533

Home equity loans 24 25 27 29 29 -17.2 0 0 0 24 0

Credit card receivables 16,406 12,879 13,491 13,485 13,400 22.4 0 0 0 16,357 49

Auto loans 12,158 11,543 11,024 8,935 5,604 117.0 0 0 2,200 9,959 0

Other consumer loans 3,955 4,576 4,732 4,907 5,092 -22.3 0 0 0 2,261 1,694

Commercial and industrial loans 312 276 161 164 200 56.0 0 0 0 0 312

All other loans, leases, and other assets 56,771 64,170 64,843 70,678 74,114 -23.4 0 0 8,674 1,462 46,635

Total securitized and sold 723,984 737,169 762,656 785,391 803,118 -9.9 0 1,658 24,220 116,883 581,222

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,906 2,056 2,114 2,080 2,162 -11.8 0 17 0 1,281 608

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

Credit card receivables 1,443 1,162 1,209 1,207 1,152 25.3 0 0 0 1,443 0

Auto loans 125 428 436 0 0 0.0 0 0 0 125 0

Other consumer loans 100 97 96 91 86 16.3 0 0 0 0 100

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

All other loans, leases, and other assets 875 1,142 838 971 898 -2.6 0 0 51 0 824

Total credit exposure 4,448 4,884 4,693 4,349 4,298 3.5 0 17 51 2,849 1,532

Total unused liquidity commitments provided to institution’s own 

securitizations 142 175 140 138 73 94.5 0 0 0 22 120

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

1-4 family residential loans 3.0 4.1 3.7 3.6 3.1 0.0 1.2 1.1 2.6 3.1

Home equity loans 5.6 6.9 5.5 8.6 6.2 0.0 0.0 0.0 5.6 0.0

Credit card receivables 0.4 0.4 0.4 0.4 0.4 0.0 0.0 0.0 0.4 2.0

Auto loans 1.2 1.7 1.5 1.3 1.2 0.0 0.0 2.6 0.9 0.0

Other consumer loans 4.0 4.6 4.5 3.8 3.8 0.0 0.0 0.0 1.9 6.8

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

All other loans, leases, and other assets 1.0 0.7 0.4 0.4 0.5 0.0 0.0 0.0 0.1 1.1

Total loans, leases, and other assets 2.7 3.7 3.3 3.3 2.8 0.0 1.2 0.9 2.1 2.9

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

1-4 family residential loans 1.4 1.5 1.5 1.6 1.6 0.0 1.0 0.5 1.1 1.4

Home equity loans 47.8 47.1 47.4 45.5 47.3 0.0 0.0 0.0 47.8 0.0

Credit card receivables 0.3 0.3 0.3 0.3 0.3 0.0 0.0 0.0 0.3 2.0

Auto loans 0.3 0.3 0.3 0.2 0.3 0.0 0.0 0.6 0.2 0.0

Other consumer loans 4.1 4.2 3.8 3.6 3.9 0.0 0.0 0.0 0.9 8.3

Commercial and industrial loans 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.0 0.0

All other loans, leases, and other assets 1.6 1.3 1.5 1.3 1.4 0.0 0.0 0.4 0.0 1.9

Total loans, leases, and other assets 1.4 1.4 1.4 1.5 1.6 0.0 1.0 0.5 0.9 1.5

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 2.6 6.9 3.6 2.2 1.0 0.0 0.0 0.0 2.6 0.0

Credit card receivables 0.4 4.2 3.7 3.4 3.0 0.0 0.0 0.0 0.4 2.0

Auto loans 0.2 0.7 0.5 0.3 0.3 0.0 0.0 0.5 0.2 0.0

Other consumer loans 0.4 1.0 0.7 0.5 0.2 0.0 0.0 0.0 0.2 0.6

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

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

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

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

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

Credit card receivables 8,080 13,335 11,355 11,954 12,811 -36.9 0 0 0 8,080 0

Commercial and industrial loans 365 327 216 219 268 36.2 0 0 0 0 365

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

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 574 1,066 1,079 1,089 1,092 -47.4 30 299 188 49 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 25,872 38,320 37,792 36,609 36,852 -29.8 250 7,285 8,921 4,759 4,658

Home equity, credit card receivables, auto, and other consumer loans 564 580 626 634 684 -17.5 0 1 27 23 512

Commercial and industrial loans 230 364 339 340 271 -15.1 0 13 40 154 23

All other loans, leases, and other assets 93,140 89,265 84,258 80,687 79,266 17.5 0 17 151 28,749 64,223

Total sold and not securitized 119,806 128,528 123,015 118,270 117,073 2.3 250 7,316 9,139 33,685 69,416

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 7,610 10,883 11,033 10,863 9,529 -20.1 13 831 3,140 2,439 1,186

Home equity, credit card receivables, auto, and other consumer loans 153 147 148 134 161 -5.0 0 1 26 2 123

Commercial and industrial loans 175 308 183 186 181 -3.3 0 13 8 154 0

All other loans, leases, and other assets 25,918 25,036 23,286 22,193 21,684 19.5 0 17 41 8,391 17,470

Total credit exposure 33,856 36,374 34,651 33,376 31,555 7.3 13 863 3,216 10,986 18,779

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 64 104 104 109 110 -41.8 1 23 21 13 6

Total credit exposure 35,130 35,264 40,190 42,341 41,082 -14.5 0 40 214 2,205 32,671

Total unused liquidity commitments 1,118 1,131 1,411 2,853 1,387 -19.4 0 13 0 491 614

Other

Assets serviced for others** 5,923,340 5,981,964 5,962,395 5,996,359 6,012,968 -1.5 4,704 212,847 309,802 1,279,879 4,116,107

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 17,521 21,720 23,084 21,665 18,378 -4.7 0 0 0 0 17,521

Unused liquidity commitments to conduits sponsored by institutions 

 and others 25,784 21,832 24,417 24,287 26,866 -4.0 0 0 6 1,910 23,868

Net servicing income (for the quarter) 2,827 5,039 2,647 1,174 882 220.5 8 268 202 1,090 1,259

Net securitization income (for the quarter) 365 228 287 181 203 79.8 0 7 9 297 52

Total credit exposure to Tier 1 capital (%)*** 4.7 4.9 5.1 5.2 5.1 0.1 0.7 1.9 3.0 7.3

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

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

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

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

COMMUNITY BANK PERFORMANCE

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

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

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

designated during the previous quarter.

Community Bank Net Income Rises 10.4 Percent From a Year Ago

Net Interest Income and Noninterest Income Increase

Net Interest Margin of 3.54 Percent Down Slightly From a Year Ago

Loan Balances Increase 7.7 Percent Over the Past 12 Months

Asset Quality Improves, Except for Commercial and Industrial Loans

Net Income Improves at 

More Than Half of 

Community Banks From a 

Year Ago

Net income for the 5,401 community banks in first quarter 2017 totaled $5.6 billion, an 

increase of $522.9 million (10.4 percent) from the first quarter of 2016. Higher net interest 

income and noninterest income drove the increase in quarterly net income, but were offset in 

part by higher loan-loss provisions and noninterest expense. More than half of community 

banks (56 percent) reported higher net income compared to a year ago. The pretax return 

on assets increased to 1.33 percent, up 14 basis points from the previous quarter and 6 basis 

points from the year before. Three community banks failed during the quarter, and one 

de novo community bank was added.

Net Interest Income 

Increases 7.1 Percent From 

the Previous Year

Net interest income of $18.1 billion rose by $1.2 billion (7.1 percent) from a year ago. More 

than two out of three community banks (69 percent) reported higher net interest income 

from a year ago. The year-over-year increase can be attributed to non 1-to-4 family real estate 

loans (up $761.8 million, or 10 percent).1 The average net interest margin (NIM) declined 

slightly from 3.56 percent in first quarter 2016 to 3.54 percent, as asset yields remained flat 

and funding costs increased 2 basis points. NIM at community banks was 41 basis points 

higher than noncommunity banks and 35 basis points above the industry overall. However, 

the difference is the smallest since the second quarter of 2013.

Contributors to the Year-Over-Year Change in Income 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income NetInterest

Income

Loan Loss

Provisions NoninterestIncome NoninterestExpense RealizedGains on

Securities

Income

Taxes

Positive Factor Negative Factor

-0.5

0.0

0.5

1.0

1.5

$0.52 $1.20 $0.03 $0.30 $0.72 -$0.04 $0.19

+10% +7% + +5% 7% +5% -26% +12%

Chart 1

Source: FDIC.

Net Interest Margin 

Percent

4.0 

Community Banks

All Insured Institutions 

3.54

3.19

2.5

3.0

3.5

2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 2

1 Non 1-to-4 family real estate loans include construction and development, farmland, multifamily, and nonfarm nonresidential 

loans.
2 0 1 7  •  Volume 1 1  • Number 2

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Change 1Q 2017 vs. 1Q 2016

Change 1Q 2017 vs. 4Q 2016

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

C&I

Loans

1-to-4 Family

Residential

RE

C&D

Loans

Agricultural

Production

Loans

CRE &

C&D

C&I

Loans

43.9

13.4 11.3

16.5

-0.6

9.5 6.8

10.4

2.1 1.6 1.7

-2.2

1.3 2.4

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Percent of Loan Portfolio Noncurrent

0

2

4

6

8

10

12

14

C&D Loans Nonfarm Nonresidential RE

1-to-4 Family RE

C&I Loans Home Equity 

Credit Cards

2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 4

Noninterest Income Grows 

6.8 Percent Year Over Year 

to $4.8 Billion

Noninterest income of $4.8 billion was $304.3 million (6.8 percent) higher than a year 

ago and almost twice the growth rate of noncommunity banks (3.7 percent). A majority 

of community banks (57 percent) reported higher noninterest income compared to a year 

earlier. Improvement in noninterest income was led by higher other noninterest income 

(up $157.5 million, or 9 percent) and servicing fees (up $88.1 million, or 50.6 percent).2

Noninterest Expense Up 5 

Percent From a Year Ago

Community banks reported noninterest expense of $15.1 billion in the first quarter, a 

$721.9 million (5 percent) increase from a year earlier. The annual increase in noninterest 

expense was led by higher salary and employee benefits (up $537.3 million, or 6.6 percent). 

Full-time equivalent employees totaled 428,632 in the first quarter, up 10,841 (2.6 percent) 

from the first quarter of 2016. Average assets per employee of $5.2 million in the first quarter 

were up 5.6 percent from a year ago.

Loan Balances Rise at 

Community Banks in the 

First Quarter

Loan balances totaled $1.5 trillion in the first quarter, up $16.7 billion (1.1 percent) from the 

fourth quarter of 2016. At March 31, loan balances represented 69.1 percent of total assets, 

the highest proportion for a first quarter since 2009. In contrast to community banks, loan 

balances declined for noncommunity banks (down $24.7 billion, or 0.3 percent). More 

than half (57 percent) of community banks increased their loan balances from the previous 

quarter. The quarterly increase was led by nonfarm nonresidential loans (up $10.4 billion, 

or 2.4 percent), multifamily residential loans (up $3.6 billion, or 3.3 percent), commercial 

and industrial loans (up $2.1 billion, or 1.1 percent), construction and development loans 

(up $1.7 billion, or 1.7 percent), and 1-to-4 family residential mortgages (up $1.6 billion, or 

0.4 percent).

2 Other noninterest income includes items that are greater than $100,000 and exceed 3 percent of all other noninterest income 

reported. They include income and fees from printing and sale of checks, earnings on increase in value of cash surrender value of 

life insurance, income and fees from automated teller machines, rent and other income from other real estate owned, safe deposit 

box rent, net change in the fair values of financial instruments accounted for under a fair value option, bank card and credit card 

interchange fees, gains on bargain purchases, and other miscellaneous items.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Annual Loan Growth Rate 

at Community Banks 

Outpaces Noncommunity 

Banks

Loan balances rose by $109.9 billion (7.7 percent) over the past 12 months, more than 

twice the 3.3 percent growth at noncommunity banks. Just over 75 percent of community 

banks increased their loan balances from a year ago. The 12-month increase was driven by 

nonfarm nonresidential loans (up $43.9 billion, or 10.8 percent), 1-to-4 family residential 

mortgages (up $16.5 billion, or 4.3 percent), multifamily residential loans (up $14.2 billion, 

or 14.5 percent), commercial and industrial loans (up $13.4 billion, or 7.1 percent), and 

construction and development loans (up $11.3 billion, or 12.4 percent). Unused loan commitments of $292.7 billion in the first quarter grew by $24.2 billion (9 percent) from the year 

before. Unused commercial real estate loan commitments—including construction and 

development—increased by $9.5 billion (12.6 percent) from a year ago.

Noncurrent Loan Balances 

Decline Slightly

Just over half of community banks (52 percent) reported a decline in noncurrent loan 

balances from the previous quarter. In aggregate, noncurrent loan balances fell by 

$37.5 million (0.2 percent) during the quarter. The noncurrent rate decline by 1 basis point 

during the quarter to 1 percent, and was 41 basis points below the noncommunity bank 

noncurrent rate. Among community banks, all major loan categories except for commercial and industrial loans saw an improvement in their noncurrent rate from the previous 

quarter. The noncurrent rate for commercial and industrial loans increased 4 basis points 

to 1.46 percent, which marks a seventh consecutive quarterly increase. The largest quarterly 

improvement in the noncurrent rate was in construction and development loans (down 

10 basis points) and 1-to-4 family residential mortgages (down 5 basis points).

Net Charge-Off Rate 

Remains Unchanged

Community banks reported a net charge-off rate of 0.10 percent in the first quarter, 

unchanged from a year ago. The net charge-off rate for noncommunity banks increased 

to 0.57 percent, up 5 basis points from a year before. For community banks, all major loan 

categories except commercial and industrial loans (up 3 basis points) had a lower net chargeoff rate compared to first quarter 2016. The net charge-off rate for construction and development loans was negative 0.01 percent, as recoveries surpassed charge-offs.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6578
2 0 1 7  •  Volume 1 1  • Number 2

18 FDIC QUARTERLY

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

2017* 2016* 2016 2015 2014 2013 2012

Return on assets (%) 1.01 0.98 0.99 0.99 0.93 0.90 0.83

Return on equity (%) 9.17 8.75 8.82 8.85 8.45 8.27 7.68

Core capital (leverage) ratio (%) 10.74 10.69 10.69 10.67 10.57 10.43 10.18

Noncurrent assets plus other real estate owned to assets (%) 0.91 1.06 0.94 1.07 1.34 1.73 2.27

Net charge-offs to loans (%) 0.10 0.10 0.15 0.15 0.21 0.32 0.58

Asset growth rate (%) 4.11 2.76 2.97 2.71 2.21 0.39 2.25

Net interest margin (%) 3.54 3.56 3.57 3.57 3.61 3.59 3.67

Net operating income growth (%) 9.26 6.41 2.61 9.53 4.81 14.64 56.17

Number of institutions reporting 5,401 5,664 5,461 5,735 6,037 6,307 6,542

Percentage of unprofitable institutions (%) 4.39 5.24 4.52 5.00 6.44 8.40 11.14

* Through March 31, ratios annualized where appropriate. Asset growth rates for 12 months ending March 31.

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

(dollar figures in millions)  1st Quarter

2017

4th Quarter

2016

1st Quarter

2016

%Change 

16Q1-17Q1

Number of institutions reporting 5,401 5,461 5,664 -4.6

Total employees (full-time equivalent) 428,632 431,061 434,792 -1.4

CONDITION DATA

Total assets $2,215,310 $2,182,989 $2,127,790 4.1

Loans secured by real estate 1,179,782 1,160,737 1,101,921 7.1

 1-4 Family residential mortgages 394,869 389,854 375,940 5.0

 Nonfarm nonresidential 451,673 445,398 421,286 7.2

 Construction and development 102,461 101,901 95,194 7.6

 Home equity lines 50,029 50,722 49,937 0.2

Commercial & industrial loans 203,832 203,301 196,717 3.6

Loans to individuals 60,630 60,901 59,511 1.9

 Credit cards 2,110 2,215 2,080 1.4

Farm loans 48,363 50,719 49,451 -2.2

Other loans & leases 38,194 39,695 37,216 2.6

Less: Unearned income 665 659 629 5.7

Total loans & leases 1,530,135 1,514,694 1,444,187 6.0

Less: Reserve for losses 18,839 18,674 18,577 1.4

Net loans and leases 1,511,297 1,496,020 1,425,610 6.0

Securities 432,396 422,963 434,583 -0.5

Other real estate owned 4,780 5,054 6,259 -23.6

Goodwill and other intangibles 14,719 14,407 13,949 5.5

All other assets 252,119 244,545 247,388 1.9

Total liabilities and capital 2,215,310 2,182,989 2,127,790 4.1

Deposits 1,823,130 1,793,676 1,748,381 4.3

 Domestic office deposits 1,822,679 1,793,198 1,747,961 4.3

 Foreign office deposits 451 478 420 7.6

 Brokered deposits 84,575 81,073 72,914 16.0

Estimated insured deposits 1,352,875 1,329,595 1,319,792 2.5

Other borrowed funds 129,363 131,765 123,674 4.6

Subordinated debt 767 806 580 32.1

All other liabilities 16,303 16,057 16,300 0.0

Total equity capital (includes minority interests) 245,746 240,686 238,854 2.9

 Bank equity capital 245,621 240,589 238,756 2.9

Loans and leases 30-89 days past due 8,071 8,663 9,045 -10.8

Noncurrent loans and leases 15,286 15,307 16,099 -5.0

Restructured loans and leases 7,836 8,291 8,922 -12.2

Mortgage-backed securities 186,599 181,024 185,183 0.8

Earning assets 2,064,416 2,029,755 1,979,488 4.3

FHLB Advances 102,163 104,002 95,125 7.4

Unused loan commitments 292,722 284,766 277,765 5.4

Trust assets 262,935 294,134 258,348 1.8

Assets securitized and sold 21,418 14,704 16,316 31.3

Notional amount of derivatives 69,503 59,739 61,967 12.2

INCOME DATA

Full Year

 2016

Full Year

2015 %Change

1st Quarter 

2017

1st Quarter 

2016

%Change 

16Q1-17Q1

Total interest income $79,194 $76,402 3.7 $20,534 $19,721 4.1

Total interest expense 9,133 8,652 5.6 2,433 2,244 8.4

Net interest income 70,061 67,750 3.4 18,101 17,477 3.6

Provision for loan and lease losses 3,247 2,558 26.9 657 643 2.2

Total noninterest income 19,946 19,528 2.1 4,804 4,696 2.3

Total noninterest expense 59,985 59,373 1.0 15,086 14,986 0.7

Securities gains (losses) 637 520 22.5 129 180 -28.3

Applicable income taxes 6,570 5,633 16.6 1,722 1,564 10.1

Extraordinary gains, net* -9 6 N/M 7 2 251.8

Total net income (includes minority interests) 20,834 20,239 2.9 5,576 5,161 8.0

 Bank net income 20,811 20,212 3.0 5,572 5,157 8.0

Net charge-offs 2,234 2,055 8.7 385 356 8.0

Cash dividends 10,212 10,094 1.2 2,586 2,540 1.8

Retained earnings 10,600 10,119 4.8 2,986 2,617 14.1

Net operating income 20,338 19,822 2.6 5,482 5,017 9.3

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

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  1st Quarter 

2017

4th Quarter 

2016

1st Quarter

2016

%Change 

16Q1-17Q1

Number of institutions reporting 5,401 5,400 5,400 0.0

Total employees (full-time equivalent) 428,632 428,150 417,791 2.6

CONDITION DATA

Total assets $2,215,310 $2,182,246 $2,091,073 5.9

Loans secured by real estate 1,179,782 1,161,625 1,087,208 8.5

 1-4 Family residential mortgages 394,869 393,237 378,411 4.3

 Nonfarm nonresidential 451,673 441,260 407,816 10.8

 Construction and development 102,461 100,730 91,179 12.4

 Home equity lines 50,029 50,248 48,082 4.0

Commercial & industrial loans 203,832 201,685 190,398 7.1

Loans to individuals 60,630 60,719 57,475 5.5

 Credit cards 2,110 2,211 2,061 2.4

Farm loans 48,363 50,596 48,997 -1.3

Other loans & leases 38,194 39,465 36,778 3.8

Less: Unearned income 665 653 640 4.0

Total loans & leases 1,530,135 1,513,437 1,420,217 7.7

Less: Reserve for losses 18,839 18,606 18,211 3.4

Net loans and leases 1,511,297 1,494,831 1,402,005 7.8

Securities 432,396 424,224 427,962 1.0

Other real estate owned 4,780 5,006 6,057 -21.1

Goodwill and other intangibles 14,719 14,504 13,469 9.3

All other assets 252,119 243,680 241,579 4.4

Total liabilities and capital 2,215,310 2,182,246 2,091,073 5.9

Deposits 1,823,130 1,789,494 1,713,887 6.4

 Domestic office deposits 1,822,679 1,789,031 1,713,481 6.4

 Foreign office deposits 451 463 407 10.9

 Brokered deposits 84,575 80,981 71,464 18.3

Estimated insured deposits 1,352,875 1,327,981 1,294,749 4.5

Other borrowed funds 129,363 135,005 125,978 2.7

Subordinated debt 767 797 522 47.1

All other liabilities 16,303 16,095 15,978 2.0

Total equity capital (includes minority interests) 245,746 240,855 234,708 4.7

 Bank equity capital 245,621 240,770 234,610 4.7

Loans and leases 30-89 days past due 8,071 8,687 8,982 -10.1

Noncurrent loans and leases 15,286 15,323 15,877 -3.7

Restructured loans and leases 7,836 8,297 8,746 -10.4

Mortgage-backed securities 186,599 183,117 183,193 1.9

Earning assets 2,064,416 2,029,122 1,946,626 6.1

FHLB Advances 102,163 106,043 96,530 5.8

Unused loan commitments 292,722 283,022 268,511 9.0

Trust assets 262,935 293,299 244,350 7.6

Assets securitized and sold 21,418 14,704 13,497 58.7

Notional amount of derivatives 69,503 59,228 58,203 19.4

INCOME DATA

Full Year 

2016

Full Year 

2015 %Change

1st Quarter 

2017

1st Quarter 

2016

%Change 

16Q1-17Q1

Total interest income $78,895 $73,073 8.0 $20,534 $19,105 7.5

Total interest expense 9,173 8,401 9.2 2,433 2,205 10.3

Net interest income 69,722 64,672 7.8 18,101 16,901 7.1

Provision for loan and lease losses 3,212 2,475 29.8 657 624 5.2

Total noninterest income 19,809 18,400 7.7 4,804 4,499 6.8

Total noninterest expense 59,612 56,182 6.1 15,086 14,364 5.0

Securities gains (losses) 634 505 25.6 129 174 -25.7

Applicable income taxes 6,549 5,523 18.6 1,722 1,534 12.2

Extraordinary gains, net* -9 5 N/M 7 2 252.5

Total net income (includes minority interests) 20,783 19,403 7.1 5,576 5,053 10.3

 Bank net income 20,760 19,377 7.1 5,572 5,049 10.4

Net charge-offs 2,214 1,922 15.2 385 337 14.2

Cash dividends 10,159 9,729 4.4 2,586 2,473 4.6

Retained earnings 10,601 9,648 9.9 2,986 2,576 15.9

Net operating income 20,290 18,999 6.8 5,482 4,913 11.6

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 7  •  Volume 1 1  • Number 2

20 FDIC QUARTERLY

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

First Quarter 2017

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 5,401 629 647 1,183 1,413 1,183 346

Total employees (full-time equivalent) 428,632 87,504 51,938 88,963 70,677 93,245 36,305

CONDITION DATA

Total assets $2,215,310 $605,657 $246,212 $394,542 $338,874 $425,695 $204,330

Loans secured by real estate 1,179,782 372,156 136,715 202,142 159,487 202,379 106,903

 1-4 Family residential mortgages 394,869 138,798 43,588 71,388 49,742 64,227 27,127

 Nonfarm nonresidential 451,673 129,889 59,587 74,001 53,064 83,712 51,420

 Construction and development 102,461 21,337 15,581 13,785 13,666 29,201 8,890

 Home equity lines 50,029 16,957 7,507 11,137 4,868 4,637 4,922

Commercial & industrial loans 203,832 51,287 18,831 37,891 33,571 42,826 19,425

Loans to individuals 60,630 13,707 6,415 12,044 10,009 13,372 5,083

 Credit cards 2,110 435 125 410 540 295 305

Farm loans 48,363 575 1,227 7,819 26,950 9,093 2,700

Other loans & leases 38,194 12,191 3,045 6,619 5,640 7,216 3,483

Less: Unearned income 665 167 113 58 70 128 129

Total loans & leases 1,530,135 449,749 166,121 266,457 235,585 274,758 137,465

Less: Reserve for losses 18,839 4,587 1,993 3,306 3,213 3,892 1,847

Net loans and leases 1,511,297 445,162 164,128 263,151 232,372 270,866 135,618

Securities 432,396 101,298 46,189 83,066 66,855 95,668 39,321

Other real estate owned 4,780 763 1,158 864 731 992 272

Goodwill and other intangibles 14,719 5,078 1,278 2,545 1,863 2,688 1,267

All other assets 252,119 53,356 33,459 44,917 37,053 55,481 27,852

Total liabilities and capital 2,215,310 605,657 246,212 394,542 338,874 425,695 204,330

Deposits 1,823,130 479,175 205,653 327,176 281,324 359,539 170,263

 Domestic office deposits 1,822,679 478,769 205,653 327,159 281,324 359,539 170,235

 Foreign office deposits 451 406 0 18 0 0 28

 Brokered deposits 84,575 27,461 7,656 14,595 12,891 12,596 9,376

 Estimated insured deposits 1,352,875 344,174 153,090 260,497 221,096 257,277 116,741

Other borrowed funds 129,363 51,624 11,781 20,719 18,248 17,472 9,519

Subordinated debt 767 662 6 46 22 15 15

All other liabilities 16,303 5,922 1,664 2,669 1,840 2,628 1,581

Total equity capital (includes minority interests) 245,746 68,275 27,108 43,932 37,440 46,041 22,952

 Bank equity capital 245,621 68,202 27,095 43,914 37,439 46,020 22,951

Loans and leases 30-89 days past due 8,071 2,122 914 1,350 1,431 1,818 435

Noncurrent loans and leases 15,286 5,041 1,603 2,522 1,915 3,365 840

Restructured loans and leases 7,836 2,343 1,026 1,858 1,024 1,021 564

Mortgage-backed securities 186,599 57,320 20,007 31,781 21,728 36,219 19,544

Earning assets 2,064,416 567,336 227,480 366,947 316,501 394,578 191,573

FHLB Advances 102,163 43,776 9,474 15,518 13,187 13,704 6,504

Unused loan commitments 292,722 76,390 30,730 53,548 48,632 53,391 30,031

Trust assets 262,935 48,912 9,887 69,306 79,841 44,689 10,300

Assets securitized and sold 21,418 6,577 84 7,939 1,916 713 4,189

Notional amount of derivatives 69,503 25,505 7,355 11,366 12,862 8,005 4,411

INCOME DATA

Total interest income $20,534 $5,385 $2,320 $3,573 $3,197 $4,105 $1,954

Total interest expense 2,433 802 258 406 384 415 168

Net interest income 18,101 4,583 2,062 3,167 2,813 3,690 1,786

Provision for loan and lease losses 657 183 59 85 113 170 47

Total noninterest income 4,804 932 542 1,163 705 1,001 460

Total noninterest expense 15,086 3,656 1,814 2,904 2,288 3,040 1,384

Securities gains (losses) 129 93 6 8 8 9 5

Applicable income taxes 1,722 531 200 318 187 232 253

Extraordinary gains, net** 7 -1 0 0 0 0 8

Total net income (includes minority interests) 5,576 1,237 538 1,030 939 1,258 575

 Bank net income 5,572 1,235 537 1,029 939 1,258 575

Net charge-offs 385 103 40 54 61 112 15

Cash dividends 2,586 232 250 629 688 507 280

Retained earnings 2,986 1,003 286 399 251 751 295

Net operating income 5,482 1,178 533 1,024 933 1,250 564

* See Table V-A for explanations.

** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. First Quarter 2017, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks First Quarter 2017, Geographic Regions*

 1st Quarter 

2017

4th Quarter 

2016 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.02 4.06 3.84 4.13 3.92 4.07 4.21 4.12

Cost of funding earning assets 0.48 0.47 0.57 0.46 0.45 0.49 0.43 0.35

Net interest margin 3.54 3.59 3.26 3.67 3.48 3.58 3.79 3.76

Noninterest income to assets 0.87 0.95 0.62 0.89 1.19 0.84 0.95 0.91

Noninterest expense to assets 2.75 2.89 2.44 2.98 2.96 2.71 2.89 2.73

Loan and lease loss provision to assets 0.12 0.21 0.12 0.10 0.09 0.13 0.16 0.09

Net operating income to assets 1.00 0.88 0.79 0.88 1.04 1.11 1.19 1.11

Pretax return on assets 1.33 1.19 1.18 1.21 1.37 1.33 1.42 1.63

Return on assets 1.01 0.88 0.82 0.88 1.05 1.11 1.20 1.13

Return on equity 9.17 7.88 7.33 8.00 9.47 10.10 11.08 10.12

Net charge-offs to loans and leases 0.10 0.22 0.09 0.10 0.08 0.10 0.16 0.04

Loan and lease loss provision to net charge-offs 170.62 140.01 177.67 147.71 156.83 184.64 151.36 322.12

Efficiency ratio 65.55 66.49 65.97 69.28 66.75 64.63 64.57 61.35

Net interest income to operating revenue 79.03 77.82 83.10 79.19 73.14 79.95 78.66 79.51

% of unprofitable institutions 4.39 8.72 6.20 5.56 5.07 3.33 3.21 4.91

% of institutions with earnings gains 56.21 57.70 63.59 63.68 55.62 48.69 54.18 68.50

Table V-B. Full Year 2016, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks Full Year 2016, Geographic Regions*

Full Year 

2016

Full Year 

2015 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.04 4.03 3.85 4.16 3.92 4.10 4.24 4.13

Cost of funding earning assets 0.47 0.46 0.57 0.46 0.44 0.48 0.40 0.34

Net interest margin 3.57 3.57 3.28 3.70 3.49 3.62 3.84 3.79

Noninterest income to assets 0.95 0.95 0.67 0.92 1.30 0.93 0.94 1.11

Noninterest expense to assets 2.85 2.90 2.51 3.08 3.05 2.79 2.99 2.89

Loan and lease loss provision to assets 0.15 0.13 0.16 0.12 0.10 0.15 0.26 0.08

Net operating income to assets 0.96 0.97 0.75 0.85 1.08 1.13 0.98 1.19

Pretax return on assets 1.30 1.26 1.11 1.17 1.40 1.39 1.26 1.71

Return on assets 0.99 0.99 0.77 0.88 1.10 1.16 1.00 1.21

Return on equity 8.82 8.85 6.87 7.83 9.78 10.35 9.05 10.62

Net charge-offs to loans and leases 0.15 0.15 0.17 0.14 0.14 0.14 0.20 0.06

Loan and lease loss provision to net charge-offs 145.36 124.53 122.31 120.68 105.55 157.47 196.90 204.44

Efficiency ratio 66.12 67.64 66.04 70.71 66.94 64.41 66.33 61.79

Net interest income to operating revenue 77.84 77.63 82.02 78.67 71.35 78.43 79.14 76.21

% of unprofitable institutions 4.52 5.00 6.01 7.73 5.50 2.45 3.61 3.99

% of institutions with earnings gains 64.46 62.98 69.15 66.67 64.17 61.32 63.81 67.81

* See Table V-A for explanations.
2 0 1 7  •  Volume 1 1  • Number 2

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

March 31, 2017

Geographic Regions*

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

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.54 0.47 0.61 0.60 0.58 0.69 0.30

Construction and development 0.48 0.33 0.40 0.52 0.58 0.58 0.46

Nonfarm nonresidential 0.36 0.33 0.36 0.43 0.36 0.43 0.19

Multifamily residential real estate 0.17 0.13 0.11 0.30 0.31 0.31 0.03

Home equity loans 0.39 0.47 0.40 0.38 0.30 0.44 0.20

Other 1-4 family residential 0.85 0.75 1.09 0.89 0.66 1.13 0.49

Commercial and industrial loans 0.52 0.42 0.60 0.38 0.61 0.69 0.50

Loans to individuals 1.39 1.84 1.39 0.80 0.96 1.97 0.87

Credit card loans 1.88 1.97 1.13 1.08 3.43 1.10 1.15

Other loans to individuals 1.37 1.83 1.39 0.79 0.82 1.99 0.85

All other loans and leases (including farm) 0.73 0.29 0.37 0.51 1.05 0.72 0.69

Total loans and leases 0.53 0.47 0.55 0.51 0.61 0.66 0.32

Percent of Loans Noncurrent**

All loans secured by real estate 0.94 1.06 1.01 1.01 0.78 0.93 0.57

Construction and development 0.99 0.94 1.58 0.88 0.94 0.83 0.89

Nonfarm nonresidential 0.83 0.94 0.80 0.96 0.82 0.83 0.39

Multifamily residential real estate 0.24 0.13 0.58 0.47 0.28 0.50 0.11

Home equity loans 0.62 0.78 0.49 0.62 0.30 0.59 0.56

Other 1-4 family residential 1.25 1.60 1.17 1.24 0.67 1.16 0.90

Commercial and industrial loans 1.46 1.55 0.84 0.93 1.02 2.68 0.89

Loans to individuals 0.73 0.59 0.76 0.39 0.48 1.52 0.33

Credit card loans 1.12 1.24 0.52 0.82 1.75 0.84 0.77

Other loans to individuals 0.72 0.57 0.76 0.37 0.41 1.54 0.30

All other loans and leases (including farm) 0.88 1.63 0.48 0.53 0.85 0.85 0.70

Total loans and leases 1.00 1.12 0.96 0.95 0.81 1.22 0.61

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.03 0.04 0.02 0.05 0.01 0.02 -0.02

Construction and development -0.01 0.02 0.01 -0.01 -0.08 0.00 -0.01

Nonfarm nonresidential 0.02 0.02 -0.01 0.06 0.01 0.02 -0.03

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

Home equity loans 0.06 0.06 0.09 0.09 0.07 0.00 0.00

Other 1-4 family residential 0.05 0.07 0.03 0.06 0.03 0.04 -0.01

Commercial and industrial loans 0.25 0.26 0.29 0.06 0.15 0.54 0.15

Loans to individuals 0.92 0.82 0.94 0.62 1.27 1.08 0.71

Credit card loans 6.53 3.32 1.32 3.59 17.52 1.62 2.48

Other loans to individuals 0.71 0.74 0.93 0.51 0.33 1.07 0.59

All other loans and leases (including farm) 0.17 0.17 0.29 0.14 0.15 0.17 0.23

Total loans and leases 0.10 0.09 0.10 0.08 0.10 0.16 0.04

Loans Outstanding (in billions)

All loans secured by real estate $1,179.8 $372.2 $136.7 $202.1 $159.5 $202.4 $106.9

Construction and development 102.5 21.3 15.6 13.8 13.7 29.2 8.9

Nonfarm nonresidential 451.7 129.9 59.6 74.0 53.1 83.7 51.4

Multifamily residential real estate 112.5 63.0 6.2 15.7 8.7 7.8 11.2

Home equity loans 50.0 17.0 7.5 11.1 4.9 4.6 4.9

Other 1-4 family residential 394.9 138.8 43.6 71.4 49.7 64.2 27.1

Commercial and industrial loans 203.8 51.3 18.8 37.9 33.6 42.8 19.4

Loans to individuals 60.6 13.7 6.4 12.0 10.0 13.4 5.1

Credit card loans 2.1 0.4 0.1 0.4 0.5 0.3 0.3

Other loans to individuals 58.5 13.3 6.3 11.6 9.5 13.1 4.8

All other loans and leases (including farm) 86.6 12.8 4.3 14.4 32.6 16.3 6.2

Total loans and leases 1,530.8 449.9 166.2 266.5 235.7 274.9 137.6

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 292,722 76,390 30,730 53,548 48,632 53,391 30,031

Construction and development: 1-4 family residential 23,810 4,804 4,262 2,622 2,839 6,681 2,602

Construction and development: CRE and other 59,316 18,371 7,072 9,108 6,818 13,131 4,815

Commercial and industrial 93,788 24,113 8,628 18,719 15,295 16,933 10,100

* See Table V-A for explanations.

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

FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $1.8 Billion

Estimated Insured Deposits Grow by 2.3 Percent

DIF Reserve Ratio Is Unchanged at 1.20 Percent

Three Insured Institutions Fail

The Deposit Insurance Fund (DIF) balance increased by $1.8 billion, to $84.9 billion, during 

the first quarter. Assessment income of $2.7 billion, which includes temporary assessment 

surcharges on large banks, drove the fund balance increase. Interest on investments of 

$227 million also added to the fund balance. A provision for insurance losses of $765 million 

and operating expenses of $442 million partially offset the rise in the fund balance. Three 

insured institutions failed in the first quarter, with combined assets of $554 million.

The deposit insurance assessment base—average consolidated total assets minus average tangible equity—increased by 0.4 percent in the first quarter and by 4.2 percent over 

12 months.1,2 Total estimated insured deposits increased by 2.3 percent in the first quarter of 

2017 and by 6.2 percent year-over-year. The DIF’s reserve ratio (the fund balance as a percent 

of estimated insured deposits) was 1.20 percent on March 31, 2017, unchanged from year-end 

2016 due in part to strong first quarter growth in estimated insured deposits. The reserve 

ratio increased by seven basis points from one year earlier.

By law, the reserve ratio must reach a minimum of 1.35 percent by September 30, 2020. The 

law also requires that, in setting assessments, the FDIC offset the effect of the increase in the 

reserve ratio from 1.15 percent to 1.35 percent on banks with less than $10 billion in assets. 

To satisfy these requirements, large banks are subject to a temporary surcharge of 4.5 basis 

points of their assessment base, after making certain adjustments.3,4 Surcharges began in the 

third quarter of 2016 and will continue through the quarter in which the reserve ratio first 

meets or exceeds 1.35 percent. If, however, the reserve ratio has not reached 1.35 percent by 

the end of 2018, large banks will pay a shortfall assessment in early 2019 to close the gap.

Small banks will receive credits to offset the portion of their assessments that help to raise 

the reserve ratio from 1.15 percent to 1.35 percent. When the reserve ratio is at or above 

1.38 percent, the FDIC will automatically apply a small bank’s credits to reduce its regular 

assessment up to the entire amount of the assessment.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

1 There are additional adjustments to the assessment base for banker’s banks and custodial banks.

2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

3 Large banks are generally those with assets of $10 billion or more.

4 The assessment base for the surcharge is a large bank’s regular assessment base reduced by $10 billion (and subject to additional 

adjustment for affiliated banks).
2 0 1 7  •  Volume 1 1  • Number 2

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

0.80

0.84

0.89

1.01 1.03

1.07 1.09 1.11 1.13

1.17 1.18 1.20 1.20

3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd 

Quarter 

2016

1st 

Quarter 

2016

4th 

Quarter 

2015

3rd 

Quarter 

2015

2nd 

Quarter 

2015

1st 

Quarter 

2015

4th 

Quarter 

2014

3rd 

Quarter 

2014

2nd 

Quarter 

2014

1st 

Quarter 

2014

Beginning Fund Balance $83,162 $80,704 $77,910 $75,120 $72,600 $70,115 $67,589 $65,296 $62,780 $54,320 $51,059 $48,893 $47,191

Changes in Fund Balance:

Assessments earned 2,737 2,688 2,643 2,328 2,328 2,160 2,170 2,328 2,189 2,030 2,009 2,224 2,393

Interest earned on 

investment securities 227 189 171 164 147 128 122 113 60 70 80 87 45

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 442 437 422 441 415 447 410 434 396 408 406 428 422

Provision for insurance 

losses 765 -332 -566 -627 -43 -930 -578 -317 -426 -6,787 -1,663 -204 348

All other income, 

net of expenses 2 3 3 2 5 12 2 3 6 -43 6 6 9

Unrealized gain/(loss) on 

available-for-sale 

securities 7 -317 -167 110 412 -298 64 -34 231 24 -91 73 25

Total fund balance change 1,766 2,458 2,794 2,790 2,520 2,485 2,526 2,293 2,516 8,460 3,261 2,166 1,702

Ending Fund Balance 84,928 83,162 80,704 77,910 75,120 72,600 70,115 67,589 65,296 62,780 54,320 51,059 48,893

Percent change from 

 four quarters earlier 13.06 14.55 15.10 15.27 15.05 15.64 29.08 32.37 33.55 33.03 33.27 34.82 36.79

Reserve Ratio (%) 1.20 1.20 1.18 1.17 1.13 1.11 1.09 1.07 1.03 1.01 0.89 0.84 0.80

Estimated Insured 

Deposits 7,078,271 6,915,975 6,819,441 6,677,268 6,665,204 6,523,457 6,409,819 6,336,949 6,336,642 6,197,131 6,127,968 6,098,178 6,109,175

Percent change from 

 four quarters earlier 6.20 6.02 6.39 5.37 5.19 5.27 4.60 3.92 3.72 3.32 2.82 2.56 1.91

Domestic Deposits 11,856,680 11,691,723 11,505,080 11,240,160 11,154,724 10,950,122 10,695,506 10,629,335 10,616,458 10,408,187 10,213,199 10,099,415 9,962,543

Percent change from 

 four quarters earlier 6.29 6.77 7.57 5.75 5.07 5.21 4.72 5.25 6.56 5.93 6.04 7.16 5.37

Assessment Base** 14,619,827 14,560,423 14,380,957 14,230,008 14,028,390 13,860,386 13,688,382 13,621,148 13,546,526 13,360,634 13,127,930 12,916,389 12,810,148

Percent change from 

 four quarters earlier 4.22 5.05 5.06 4.47 3.56 3.74 4.27 5.46 5.75 4.72 4.73 3.31 2.97

Number of Institutions 

Reporting 5,865 5,922 5,989 6,067 6,131 6,191 6,279 6,357 6,428 6,518 6,598 6,665 6,739

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

3/14 $48,893 $6,109,175

6/14 51,059 6,098,178

9/14 54,320 6,127,968

12/14 62,780 6,197,131

3/15 65,296 6,336,642

6/15 67,589 6,336,949

9/15 70,115 6,409,819

12/15 72,600 6,523,457

3/16 75,120 6,665,204

6/16 77,910 6,677,268

9/16 80,704 6,819,441

12/16 83,162 6,915,975

3/17 84,928 7,078,271

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2017*** 2016*** 2016 2015 2014 2013 2012 2011

Problem Institutions

Number of institutions 112 165 123 183 291 467 651 813

Total assets $23,675 $30,870 $27,624 $46,780 $86,712 $152,687 $232,701 $319,432

Failed Institutions

Number of institutions 3 1 5 8 18 24 51 92

Total assets**** $554 $67 $277 $6,706 $2,914 $6,044 $11,617 $34,923

* Quarterly financial statement results are unaudited.

** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

*** Through March 31.

**** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions)

March 31, 2017

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 5,060 $15,789,511 $10,880,126 $6,292,940

 FDIC-Supervised 3,356 2,439,641 1,943,665 1,352,660

 OCC-Supervised 914 10,794,285 7,152,111 3,963,604

 Federal Reserve-Supervised 790 2,555,585 1,784,351 976,676

FDIC-Insured Savings Institutions 796 1,176,272 932,624 748,104

 OCC-Supervised 370 763,645 619,248 501,950

 FDIC-Supervised 388 386,527 292,701 229,752

 Federal Reserve-Supervised 38 26,100 20,675 16,403

Total Commercial Banks and Savings Institutions 5,856 16,965,782 11,812,750 7,041,045

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 93,347 43,930 37,227

Total FDIC-Insured Institutions 5,865 17,059,130 11,856,680 7,078,271

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending December 31, 2016 (dollar figures in billions)

Annual Rate in Basis Points*

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base**

Percent of Total 

Assessment Base

1.50 - 3.00 3,411 57.60 $2,426.0 16.66

3.01 - 6.00 1,657 27.98 11,143.3 76.53

6.01 - 10.00 631 10.66 749.6 5.15

10.01 - 15.00 84 1.42 133.6 0.92

15.01 - 20.00 112 1.89 95.3 0.65

20.01 - 25.00 14 0.24 5.5 0.04

>25.00 13 0.22 7.2 0.05

* Assessment rates do not incorporate temporary surcharges on large banks.

** Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as required by the Dodd-Frank Act.
2 0 1 7  •  Volume 1 1  • Number 2

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed/assisted institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository institutions that are not insured by the FDIC through the DIF are not included in the FDIC Quarterly Banking Profile. U.S. branches of institutions 

headquartered in foreign countries and non-deposit trust companies 

are not included unless otherwise indicated. Efforts are made to obtain 

financial reports for all active institutions. However, in some cases, 

final financial reports are not available for institutions that have closed 

or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports submitted by 

all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

i.e., the sum of the individual numerator values divided by the sum 

of individual denominator values. All asset and liability figures used 

in calculating performance ratios represent average amounts for the 

period (beginning-of-period amount plus end-of-period amount plus 

any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income includes 

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

base period to totals for institutions in the current period. For the 

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup. When community 

bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions 

that were subsequently merged into current community banks.

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home state. 

In addition, institutions may relocate across state lines or change 

their charters, resulting in an inter-regional or inter-industry migration, e.g., institutions can move their home offices between regions, 

savings institutions can convert to commercial banks, or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Accounting for Measurement-Period Adjustments Related to a 

Business Combination 

In September 2015, the Financial Accounting Standards Board 

(FASB) issued Accounting Standards Update (ASU) No. 2015-16, 

“Simplifying the Accounting for Measurement-Period Adjustments.” 

Under Accounting Standards Codification Topic 805, Business 

Combinations (formerly FASB Statement No. 141(R), “Business 

Combinations”), if the initial accounting for a business combination 

is incomplete by the end of the reporting period in which the combination occurs, the acquirer reports provisional amounts in its financial statements for the items for which the accounting is incomplete. 

During the measurement period, the acquirer is required to adjust the 

provisional amounts recognized at the acquisition date, with a corresponding adjustment to goodwill, to reflect new information obtained 

about facts and circumstances that existed as of the acquisition date 

that, if known, would have affected the measurement of the amounts 

recognized as of that date. At present under Topic 805, an acquirer is 

required to retrospectively adjust the provisional amounts recognized 

at the acquisition date to reflect the new information. To simplify the 

accounting for the adjustments made to provisional amounts, ASU 

2015-16 eliminates the requirement to retrospectively account for the 

adjustments. Accordingly, the ASU amends Topic 805 to require an 

acquirer to recognize adjustments to provisional amounts that are 

identified during the measurement period in the reporting period 

in which adjustment amounts are determined. Under the ASU, the 

acquirer also must recognize in the financial statements for the same 

reporting period the effect on earnings, if any, resulting from the 

adjustments to the provisional amounts as if the accounting for the 

business combination had been completed as of the acquisition date. 

In general, the measurement period in a business combination is 

the period after the acquisition date during which the acquirer may 

adjust provisional amounts reported for identifiable assets acquired, 

liabilities assumed, and consideration transferred for the acquiree for 

which the initial accounting for the business combination is incomplete at the end of the reporting period in which the combination 

occurs. Topic 805 provides additional guidance on the measurement 

period, which shall not exceed one year from the acquisition date, 

and adjustments to provisional amounts during this period. 

For institutions that are public business entities, as defined under U.S. 

GAAP, ASU 2015-16 is effective for fiscal years, and interim periods 

within those fiscal years, beginning after December 15, 2015. For 

institutions that are not public business entities (i.e., that are private 

companies), the ASU is effective for fiscal years beginning after 

December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The ASU’s amendments to Topic 805 

should be applied prospectively to adjustments to provisional 

amounts that occur after the effective date of the ASU. Thus, institutions with a calendar year fiscal year that are public business entities 

must apply the ASU to any adjustments to provisional amounts that 

occur after January 1, 2016, beginning with their Call Reports for 

March 31, 2016. Institutions with a calendar year fiscal year that are 

private companies must apply the ASU to any adjustments to provisional amounts that occur after January 1, 2017, beginning with their 

Call Reports for December 31, 2017. Early application of ASU 2015-

16 is permitted in Call Reports that have not been submitted. 
2 0 1 7  •  Volume 1 1  • Number 2

28 FDIC QUARTERLY

For additional information, institutions should refer to ASU 

2015-16, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Debt Issuance Costs 

In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the 

Presentation of Debt Issuance Costs.” This ASU requires debt issuance costs associated with a recognized debt liability to be presented 

as a direct deduction from the face amount of the related debt liability, similar to debt discounts. The ASU is limited to the presentation 

of debt issuance costs; therefore, the recognition and measurement guidance for such costs is unaffected. At present, Accounting 

Standards Codification (ASC) Subtopic 835-30, Interest—Imputation 

of Interest, requires debt issuance costs to be reported on the balance 

sheet as an asset (i.e., a deferred charge). For Call Report purposes, 

the costs of issuing debt currently are reported, net of accumulated 

amortization, in “Other assets.”

For institutions that are public business entities, as defined under U.S. 

GAAP, ASU 2015-03 is effective for fiscal years, and interim periods 

within those fiscal years, beginning after December 15, 2015. For 

example, institutions with a calendar year fiscal year that are public 

business entities must apply the ASU in their Call Reports beginning 

March 31, 2016. For institutions that are not public business entities 

(i.e., that are private companies), the ASU is effective for fiscal years 

beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Thus, institutions with 

a calendar year fiscal year that are private companies must apply 

the ASU in their December 31, 2016, and subsequent quarterly Call 

Reports. Early adoption of the guidance in ASU 2015-03 is permitted.

Extraordinary Items

In January 2015, the FASB issued ASU No. 2015-01, “Simplifying 

Income Statement Presentation by Eliminating the Concept of 

Extraordinary Items.” This ASU eliminates from U.S. GAAP the 

concept of extraordinary items. At present, ASC Subtopic 225-20, 

Income Statement—Extraordinary and Unusual Items (formerly 

Accounting Principles Board Opinion No. 30, “Reporting the Results 

of Operations”), requires an entity to separately classify, present, and 

disclose extraordinary events and transactions. An event or transaction is presumed to be an ordinary and usual activity of the reporting 

entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction currently meets the criteria for 

extraordinary classification, an institution must segregate the extraordinary item from the results of its ordinary operations and report the 

extraordinary item in its income statement as “Extraordinary items 

and other adjustments, net of income taxes.” 

ASU 2015-01 is effective for fiscal years, and interim periods within 

those fiscal years, beginning after December 15, 2015. Thus, for 

example, institutions with a calendar year fiscal year must begin 

to apply the ASU in their Call Reports for March 31, 2016. Early 

adoption of ASU 2015-01 is permitted provided that the guidance 

is applied from the beginning of the fiscal year of adoption. For Call 

Report purposes, an institution with a calendar year fiscal year must 

apply the ASU prospectively, that is, in general, to events or transactions occurring after the date of adoption. However, an institution 

with a fiscal year other than a calendar year may elect to apply ASU 

2015-01 prospectively or, alternatively, it may elect to apply the ASU 

retrospectively to all prior calendar quarters included in the institution’s year-to-date Call Report income statement that includes the 

beginning of the fiscal year of adoption. 

After an institution adopts ASU 2015-01, any event or transaction 

that would have met the criteria for extraordinary classification 

before the adoption of the ASU should be reported in “Other noninterest income,” or “Other noninterest expense,” as appropriate, unless 

the event or transaction would otherwise be reportable in the income 

statement. [As a result of the recent accounting change, year-to-date 

Third Quarter 2016 “Extraordinary gains, net” on the QBP includes 

only Discontinued operations expense. Accordingly, comparisons 

to periods prior to September 2016 are not meaningful, since prior 

periods included all Extraordinary gains and Discontinued operations expense.] For additional information, institutions should refer 

to ASU 2015-01, which is available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498. 

Accounting by Private Companies for Identifiable Intangible Assets 

in a Business Combination

In December 2014, the FASB issued ASU No. 2014-18, “Accounting 

for Identifiable Intangible Assets in a Business Combination,” which 

is a consensus of the Private Company Council (PCC). This ASU 

provides an accounting alternative that permits a private company, 

as defined in U.S. GAAP (and discussed in a later section of these 

Supplemental Instructions), to simplify the accounting for certain 

intangible assets. The accounting alternative applies when a private 

company is required to recognize or otherwise consider the fair value 

of intangible assets as a result of certain transactions, including when 

applying the acquisition method to a business combination under 

ASC Topic 805, Business Combinations (formerly FASB Statement 

No. 141 (revised 2007), “Business Combinations”).

Under ASU 2014-18, a private company that elects the accounting 

alternative should no longer recognize separately from goodwill:

•Customer-related intangible assets unless they are capable of bein

sold or licensed independently from the other assets of a business, 

and

• Noncompetition agreements.

However, because mortgage servicing rights and core deposit intangibles are regarded as capable of being sold or licensed independently, 

a private company that elects this accounting alternative must recognize these intangible assets separately from goodwill, initially measure 

them at fair value, and subsequently measure them in accordance 

with ASC Topic 350, Intangibles–Goodwill and Other (formerly 

FASB Statement No. 142, “Goodwill and Other Intangible Assets”).

A private company that elects the accounting alternative in 

ASU 2014-18 also must adopt the private company goodwill accounting alternative described in ASU 2014-02, “Accounting for Goodwill.” 

However, a private company that elects the goodwill accounting 

alternative in ASU 2014-02 is not required to adopt the accounting 

alternative for identifiable intangible assets in ASU 2014-18.

A private company’s decision to adopt ASU 2014-18 must be made 

upon the occurrence of the first business combination (or other 

transaction within the scope of the ASU) in fiscal years beginning 

after December 15, 2015. The effective date of the private company’s 

decision to adopt the accounting alternative for identifiable intangible 

assets depends on the timing of that first transaction.

If the first transaction occurs in the private company’s first fiscal year 

beginning after December 15, 2015, the adoption will be effective for 

that fiscal year’s annual financial reporting period and all interim and 

annual periods thereafter. If the first transaction occurs in a fiscal 

year beginning after December 15, 2016, the adoption will be effective in the interim period that includes the date of the transaction and 

subsequent interim and annual periods thereafter.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Early application of the intangibles accounting alternative is permitted for any annual or interim period for which a private company’s 

financial statements have not yet been made available for issuance. 

Customer-related intangible assets and noncompetition agreements that exist as of the beginning of the period of adoption should 

continue to be accounted for separately from goodwill, i.e., such 

existing intangible assets should not be combined with goodwill.

A bank or savings association that meets the private company definition in U.S. GAAP is permitted, but not required, to adopt ASU 

2014-18 for Call Report purposes and may choose to early adopt the 

ASU, provided it also adopts the private company goodwill accounting alternative. If a private institution issues U.S. GAAP financial 

statements and adopts ASU 2014-18, it should apply the ASU’s 

intangible asset accounting alternative in its Call Report in a manner consistent with its reporting of intangible assets in its financial 

statements.

For additional information on the private company accounting alternative for identifiable intangible assets, institutions should refer to 

ASU 2014-18, which is available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.

Private Company Accounting Alternatives 

In May 2012, the Financial Accounting Foundation, the independent 

private sector organization responsible for the oversight of the FASB, 

approved the establishment of the PCC to improve the process of setting accounting standards for private companies. The PCC is charged 

with working jointly with the FASB to determine whether and in 

what circumstances to provide alternative recognition, measurement, 

disclosure, display, effective date, and transition guidance for private 

companies reporting under U.S. GAAP. Alternative guidance for private companies may include modifications or exceptions to otherwise 

applicable existing U.S. GAAP standards. 

The banking agencies have concluded that a bank or savings association that is a private company, as defined in U.S. GAAP (as discussed 

in a later section of these Supplemental Instructions), is permitted 

to use private company accounting alternatives issued by the FASB 

when preparing its Call Reports, except as provided in 12 U.S.C. 

1831n(a) as described in the following sentence. If the agencies 

determine that a particular accounting principle within U.S. GAAP, 

including a private company accounting alternative, is inconsistent 

with the statutorily specified supervisory objectives, the agencies may 

prescribe an accounting principle for regulatory reporting purposes 

that is no less stringent than U.S. GAAP. In such a situation, an institution would not be permitted to use that particular private company 

accounting alternative or other accounting principle within U.S. 

GAAP for Call Report purposes. The agencies would provide appropriate notice if they were to disallow any accounting alternative under 

the statutory process.

Accounting by Private Companies for Goodwill 

On January 16, 2014, the FASB issued ASU No. 2014-02, 

“Accounting for Goodwill,” which is a consensus of the PCC. This 

ASU generally permits a private company to elect to amortize goodwill on a straight-line basis over a period of ten years (or less than ten 

years if more appropriate) and apply a simplified impairment model 

to goodwill. In addition, if a private company chooses to adopt the 

ASU’s goodwill accounting alternative, the ASU requires the private 

company to make an accounting policy election to test goodwill 

for impairment at either the entity level or the reporting unit level. 

Goodwill must be tested for impairment when a triggering event 

occurs that indicates that the fair value of an entity (or a reporting 

unit) may be below its carrying amount. In contrast, U.S. GAAP does 

not otherwise permit goodwill to be amortized, instead requiring 

goodwill to be tested for impairment at the reporting unit level annually and between annual tests in certain circumstances. The ASU’s 

goodwill accounting alternative, if elected by a private company, is 

effective prospectively for new goodwill recognized in annual periods 

beginning after December 15, 2014, and in interim periods within 

annual periods beginning after December 15, 2015. Goodwill existing as of the beginning of the period of adoption is to be amortized 

prospectively over ten years (or less than ten years if more appropriate). The ASU states that early application of the goodwill accounting 

alternative is permitted for any annual or interim period for which a 

private company’s financial statements have not yet been made available for issuance. 

A bank or savings association that meets the private company definition in ASU 2014-02, as discussed in the following section of these 

Supplemental Instructions (i.e., a private institution), is permitted, 

but not required, to adopt this ASU for Call Report purposes and 

may choose to early adopt the ASU. If a private institution issues U.S. 

GAAP financial statements and adopts the ASU, it should apply the 

ASU’s goodwill accounting alternative in its Call Report in a manner 

consistent with its reporting of goodwill in its financial statements. 

Thus, for example, a private institution with a calendar year fiscal year that chooses to adopt ASU 2014-02 must apply the ASU’s 

provisions in its December 31, 2015, and subsequent quarterly Call 

Reports unless early application of the ASU was elected. This would 

require the private institution to report in its December 31, 2015, Call 

Report one year’s amortization of goodwill existing as of January 1, 

2015, and the amortization of any new goodwill recognized in 2015. 

For additional information on the private company accounting 

alternative for goodwill, institutions should refer to ASU 2014-

02, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Definitions of Private Company and Public Business Entity

According to ASU No. 2014-02, “Accounting for Goodwill,” a private 

company is a business entity that is not a public business entity. ASU 

No. 2013-12, “Definition of a Public Business Entity,” which was 

issued in December 2013, added this term to the Master Glossary 

in the Accounting Standards Codification. This ASU states that a 

business entity, such as a bank or savings association, that meets any 

one of five criteria set forth in the ASU is a public business entity for 

reporting purposes under U.S. GAAP, including for Call Report purposes. An institution that is a public business entity is not permitted 

to apply the private company goodwill accounting alternative discussed in the preceding section when preparing its Call Report.

For additional information on the definition of a public business 

entity, institutions should refer to ASU 2013-12, which is available at 

http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=

1176156316498.

Reporting Certain Government-Guaranteed Mortgage Loans 

Upon Foreclosure 

In August 2014, the FASB issued Accounting Standards Update 

(ASU) No. 2014-14, “Classification of Certain GovernmentGuaranteed Mortgage Loans Upon Foreclosure,” to address diversity 

in practice for how government-guaranteed mortgage loans are 

recorded upon foreclosure. The ASU updates guidance contained in 

ASC Subtopic 310-40, Receivables—Troubled Debt Restructurings by 

Creditors (formerly FASB Statement No. 15, “Accounting by Debtors 

and Creditors for Troubled Debt Restructurings,” as amended), 
2 0 1 7  •  Volume 1 1  • Number 2

30 FDIC QUARTERLY

because U.S. GAAP previously did not provide specific guidance on 

how to categorize or measure foreclosed mortgage loans that are government guaranteed. The ASU clarifies the conditions under which a 

creditor must derecognize a government-guaranteed mortgage loan 

and recognize a separate “other receivable” upon foreclosure (that is, 

when a creditor receives physical possession of real estate property 

collateralizing a mortgage loan in accordance with the guidance in 

ASC Subtopic 310-40). 

Under the ASU, institutions should derecognize a mortgage loan and 

record a separate other receivable upon foreclosure of the real estate 

collateral if the following conditions are met: 

•The loan has a government guarantee that is not separable from th

loan before foreclosure. 

•At the time of foreclosure, the institution has the intent to conve

the property to the guarantor and make a claim on the guarantee 

and it has the ability to recover under that claim. 

•At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed (tha

is, the real estate property has been appraised for purposes of the 

claim and thus the institution is not exposed to changes in the fair 

value of the property). 

This guidance is applicable to fully and partially governmentguaranteed mortgage loans provided the three conditions identified 

above have been met. In such situations, upon foreclosure, the separate other receivable should be measured based on the amount of the 

loan balance (principal and interest) expected to be recovered from 

the guarantor. 

For institutions that are public business entities, as defined under 

U.S. GAAP (as discussed in an earlier section of these Supplemental 

Instructions), ASU 2014-14 is effective for fiscal years, and interim 

periods within those fiscal years, beginning after December 15, 2014. 

For example, institutions with a calendar year fiscal year that are 

public business entities must apply the ASU in their Call Reports 

beginning March 31, 2015. However, institutions that are not public 

business entities (i.e., that are private companies) are not required 

to apply the guidance in ASU 2014-14 until annual periods ending after December 15, 2015, and interim periods beginning after 

December 15, 2015. Thus, institutions with a calendar year fiscal year 

that are private companies must apply the ASU in their December 31, 

2015, and subsequent quarterly Call Reports. Earlier adoption of the 

guidance in ASU 2014-14 is permitted if the institution has already 

adopted the amendments in ASU No. 2014-04, “Reclassification of 

Residential Real Estate Collateralized Consumer Mortgage Loans 

upon Foreclosure.” 

For additional information, institutions should refer to ASU 

2014-14, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Reclassification of Residential Real Estate Collateralized 

Consumer Mortgage Loans Upon Foreclosure

In January 2014, the FASB issued Accounting Standards Update 

(ASU) No. 2014-04, “Reclassification of Residential Real Estate 

Collateralized Consumer Mortgage Loans upon Foreclosure,” to 

address diversity in practice for when certain loan receivables should 

be derecognized and the real estate collateral recognized. The ASU 

updated guidance contained in Accounting Standards Codification 

Subtopic 310-40, Receivables–Troubled Debt Restructurings by 

Creditors (formerly FASB Statement No.15, “Accounting by Debtors 

and Creditors for Troubled Debt Restructurings,” as amended).

Under prior accounting guidance, all loan receivables were reclassified to other real estate owned (OREO) when the institution, as 

creditor, obtained physical possession of the property, regardless of 

whether formal foreclosure proceedings had taken place. The new 

ASU clarifies when a creditor is considered to have received physical 

possession (resulting from an in-substance repossession or foreclosure) of residential real estate collateralizing a consumer mortgage 

loan. Under the new guidance, physical possession for these residential real estate properties is considered to have occurred and a loan 

receivable would be reclassified to OREO only upon:

•The institution obtaining legal title upon completion of a fo

closure even if the borrower has redemption rights that provide the 

borrower with a legal right for a period of time after foreclosure to 

reclaim the property by paying certain amounts specified by law, or

•The completion of a deed in lieu of foreclosure or similar lega

agreement under which the borrower conveys all interest in the 

residential real estate property to the institution to satisfy the loan.

Loans secured by real estate other than consumer mortgage loans collateralized by residential real estate should continue to be reclassified 

to OREO when the institution has received physical possession of a 

borrower’s real estate, regardless of whether formal foreclosure proceedings take place.

For institutions that are public business entities, as defined under 

U.S. generally accepted accounting principles, ASU 2014-04 is effective for fiscal years, and interim periods within those fiscal years, 

beginning after December 15, 2014. For example, institutions with a 

calendar year fiscal year that are public business entities must apply 

the ASU in their Call Reports beginning March 31, 2015. However, 

institutions that are not public business entities are not required to 

apply the guidance in ASU 2014-04 until annual periods beginning 

after December 15, 2014, and interim periods within annual periods 

beginning after December 15, 2015. Thus, institutions with a calendar year fiscal year that are not public business entities must apply 

the ASU in their December 31, 2015, and subsequent quarterly Call 

Reports. Earlier adoption of the guidance in ASU 2014-04 is permitted. Entities can elect to apply the ASU on either a modified retrospective transition basis or a prospective transition basis. Applying 

the ASU on a prospective transition basis should be less complex 

for institutions than applying the ASU on a modified retrospective 

transition basis. Under the prospective transition method, an institution should apply the new guidance to all instances where it receives 

physical possession of residential real estate property collateralizing 

consumer mortgage loans that occur after the date of adoption of 

the ASU. Under the modified retrospective transition method, an 

institution should apply a cumulative-effect adjustment to residential 

consumer mortgage loans and OREO existing as of the beginning of 

the annual period for which the ASU is effective. As a result of adopting the ASU on a modified retrospective basis, assets reclassified from 

OREO to loans should be measured at the carrying value of the real 

estate at the date of adoption while assets reclassified from loans to 

OREO should be measured at the lower of the net amount of the loan 

receivable or the OREO property’s fair value less costs to sell at the 

time of adoption.

For additional information, institutions should refer to ASU 2014-04, 

which is available at http://www.fasb.org/jsp/FASB/Page/SectionPage

&cid=1176156316498.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 31

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of deposits in banks’ domestic offices with certain 

adjustments.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity tier 1 capital ratio – ratio of common equity tier 1 

capital to risk-weighted assets. Common equity tier 1 capital includes 

common stock instruments and related surplus, retained earnings, 

accumulated other comprehensive income (AOCI), and limited 

amounts of common equity tier 1 minority interest, minus applicable 

regulatory adjustments and deductions. Items that are fully deducted 

from common equity tier 1 capital include goodwill, other intangible 

assets (excluding mortgage servicing assets) and certain deferred tax 

assets; items that are subject to limits in common equity tier 1 capital 

include mortgage servicing assets, eligible deferred tax assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average earning assets.
2 0 1 7  •  Volume 1 1  • Number 2

32 FDIC QUARTERLY

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative 

plus an additional amount for potential future credit exposure based on 

the notional amount, the remaining maturity and type of the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified 

future date, a specific quantity of an underlying variable or index 

at a specified price or yield. These contracts exist for a variety of 

variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning 

March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Beginning September 30, 2009, insured deposits include deposits in 

accounts of $100,000 to $250,000 that are covered by a temporary 

increase in the FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and Consumer 

Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. 

Also, the Dodd-Frank Act amended the Federal Deposit Insurance 

Act to include noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing transaction accounts were fully insured, without 

limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on the balance sheet—including trading assets and liabilities, available-for-sale 

securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 

of fair values. During periods of market stress, the fair values of some 

financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships, and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, 

less subsequent quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other loans 

secured by real estate.

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed from 

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 33

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions that 

actually filed a financial report.

New reporters – insured institutions filing quarterly financial reports 

for the first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that file a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet 

items multiplied by risk-weights that range from zero to 200 percent. 

A conversion factor is used to assign a balance sheet equivalent 

amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity,” 

which are reported at amortized cost (book value), and securities designated as “available-for-sale,” reported at fair (market) value.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for 

income taxes. Thrift Financial Report (TFR) filers also include gains 

(losses) on the sales of assets held for sale. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have been 

securitized, except an interest that is a form of recourse or other 

seller-provided credit enhancement. Seller’s interests differ from 

the securities issued to investors by the securitization structure. The 

principal amount of a seller’s interest is generally equal to the total 

principal amount of the pool of assets included in the securitization 

structure less the principal amount of those assets attributable to 

investors, i.e., in the form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending Fund 

(SBLF) was enacted into law in September 2010 as part of the Small 

Business Jobs Act of 2010 to encourage lending to small businesses 

by providing capital to qualified community institutions with assets 

of less than $10 billion. The SBLF Program is administered by the 

U.S. Treasury Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx).

Under the SBLF Program, the Treasury Department purchased 

noncumulative perpetual preferred stock from qualifying depository 

institutions and holding companies (other than Subchapter S and 

mutual institutions). When this stock has been issued by a depository 

institution, it is reported as “Perpetual preferred stock and related 

surplus.” For regulatory capital purposes, this noncumulative 

perpetual preferred stock qualifies as a component of Tier 1 capital. 

Qualifying Subchapter S corporations and mutual institutions issue 

unsecured subordinated debentures to the Treasury Department 

through the SBLF. Depository institutions that issued these 

debentures report them as “Subordinated notes and debentures.” 

For regulatory capital purposes, the debentures are eligible for 

inclusion in an institution’s Tier 2 capital in accordance with their 

primary federal regulator’s capital standards. To participate in the 

SBLF Program, an institution with outstanding securities issued 

to the Treasury Department under the Capital Purchase Program 

(CPP) was required to refinance or repay in full the CPP securities 

at the time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP remain 

outstanding after the refinancing of the CPP stock through the SBLF 

Program unless the institution chooses to repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal income 

tax purposes. It is generally not subject to any federal income taxes at 

the corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings.
2 0 1 7  •  Volume 1 1  • Number 2

34 FDIC QUARTERLY

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the assets 

of the financial institution.

Unearned income & contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured 

by commercial real estate, and unused commitments to originate 

or purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.