QUARTERLY BANKING PROFILE Fourth Quarter 2018

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Net Income Rises $33.8 Billion Over Fourth Quarter 2017 to $59.1 Billion

Higher Net Operating Revenue and Lower Income Tax Expenses Lift Net Income

Net Interest Income Increases 8.1 Percent From a Year Earlier

Total Loan and Lease Balances Rise 4.4 Percent Over 12 Months

Full-Year 2018 Net Income Grows to $236.7 Billion

The Number of Banks on the “Problem Bank List” Declines to 60

Net Income Rises $33.8 Billion 

Over Fourth Quarter 2017 to 

$59.1 Billion

The 5,406 FDIC-insured commercial banks and savings institutions reported quarterly net 

income of $59.1 billion in the fourth quarter, an increase of $33.8 billion (133.4 percent) from 

a year earlier.1 Improvement in quarterly net income was attributable to higher net operating revenue (the sum of net interest income and noninterest income) and lower income 

tax expenses. Assuming the effective tax rate before the new tax law, quarterly net income 

would have totaled an estimated $50.3 billion, up $7.9 billion (18.5 percent) from 12 months 

ago.2 The average return on assets was 1.33 percent for the quarter, up from 0.58 percent in 

fourth quarter 2017. The percentage of unprofitable banks in the fourth quarter declined to 

6.5 percent from 16.6 percent a year ago.

Full-Year 2018 Net Income 

Grows to $236.7 Billion

Growth in net operating revenue (up $53.1 billion, or 7 percent), coupled with lower 

income tax expenses (down $36.9 billion, or 37.7 percent) and loan-loss provisions (down 

$1.1 billion, or 2.2 percent), lifted full-year 2018 net income to $236.7 billion, an improvement of $72.4 billion (44.1 percent) from 2017. Assuming the effective tax rate before the new 

tax law, full-year 2018 net income would have totaled an estimated $207.9 billion, compared 

with $183.1 billion in 2017.3 The average net interest margin (NIM) rose from 3.25 percent 

in 2017 to 3.40 percent, as average asset yields (up 43 basis points) exceeded average funding 

costs (up 28 basis points). The average return on assets for 2018 was 1.35 percent, up from 

0.97 percent for 2017.

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-40

-20

0

20

40

60

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

59.1

Chart 1

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

220

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

204.5

Chart 2

1 Three insured institutions had not filed a December 31 Call Report at the time this report was prepared. 

2 This estimate of quarterly net income normalizes fourth quarters 2017 and 2018 by applying the average quarterly tax rate 

between fourth quarter 2011 and third quarter 2017 to income before taxes and discontinued operations. 

3 This estimate of full-year net income normalizes 2018 and 2017 by applying the average annual tax rate between 2011 and 2016 to 

income before taxes and discontinued operations.
2 0 1 9  •  Volume 1 3 • Number 1

2 FDIC QUARTERLY

Net Interest Income 

Increases 8.1 Percent From a 

Year Earlier

Quarterly net interest income rose to $140.2 billion, up $10.5 billion (8.1 percent) from a year 

earlier, owing to growth in interest-bearing assets and wider net interest margins (NIM). 

More than four out of five banks (82.6 percent) reported year-over-year increases in net 

interest income. NIM was 3.48 percent for the quarter, an improvement from the 3.31 percent 

margin reported a year ago, as average asset yields grew more rapidly than average funding 

costs. Banks with assets of $10 billion to $250 billion reported the largest annual increases in 

average asset yields (up 58 basis points) and average funding costs (up 40 basis points).

Loan-Loss Provisions 

Increase Modestly

Banks set aside $14 billion in loan-loss provisions during the fourth quarter, the highest 

level since fourth quarter 2012. Loan-loss provisions rose by $397.3 million (2.9 percent) 

from fourth quarter 2017, with close to 40 percent of all banks reporting increases. Loan-loss 

provisions as a percent of net operating revenue declined from 8.3 percent at year-end 2017 

to 8.2 percent.

Noninterest Income 

Expands From a Year Earlier

Noninterest income increased $1.6 billion (2.6 percent) from a year earlier, as all other 

noninterest income grew by $3.5 billion (11.9 percent) and net gains on sales of other assets 

rose by $393 million (120.3 percent). Despite the overall increase in noninterest income, trading revenue declined by $1.5 billion (25.9 percent) and servicing fees fell by $850.9 million 

(36.1 percent). Slightly more than half of all banks (53.6 percent) reported increases in 

noninterest income compared with the year-ago quarter.

Noninterest Expense 

Increases From Fourth 

Quarter 2017

Noninterest expense posted a modest increase of $194.9 million (0.2 percent) over the past 

12 months. Increases in other noninterest expense (up $2.6 billion, or 5 percent) and salary 

and employee benefits (up $717 million, or 1.3 percent) were partially offset by a decline in 

premises and fixed asset expense (down $2.7 billion, or 22.5 percent). The average assets per 

employee increased from $8.4 million in fourth quarter 2017 to $8.7 million.

Net Charge-Offs Decline 

4.6 Percent From a Year Ago

Banks charged off $12.6 billion in uncollectable loans during the quarter, a decline of 

$605.9 million (4.6 percent) from a year ago. This marks the first time since third quarter 

2015 that net charge-offs registered a year-over-year decline. Credit card balances registered 

the largest annual dollar increase in net-charge offs (up $347.7 million, or 4.4 percent), while 

commercial and industrial loans had the largest annual dollar decline (down $522.6 million, 

or 23.4 percent). The average net charge-off rate declined from 0.55 percent in fourth quarter 

2017 to 0.50 percent.

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

Quarterly Net Charge-O Rate

Noncurrent Loan Rate

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 3

Source: FDIC.

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

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio

All FDIC-Insured Institutions

0

50

100

150

200

250

300

350

400

450

0

20

40

60

80

100

120

140

160

180

 Loan-Loss Reserves ($) 

 Noncurrent Loans ($)

 Noncurrents Adjusted for GNMA Guaranteed Loans ($)

 Coverage Ratio (%) 

 Coverage Adjusted for GNMA Guaranteed Loans (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Noncurrent Loan Rate Falls 

Below 1 Percent

Noncurrent loan balances (90 days or more past due or in nonaccrual status) were $1 billion 

(1 percent) lower than the previous quarter. More than half of all banks (53.3 percent) 

reported lower noncurrent loan balances. The quarter-over-quarter decline was reflected 

in residential mortgages balances, which declined by $2 billion (4.4 percent), and commercial and industrial loan balances, which fell by $554.3 million (3.6 percent). Credit card 

balances continued to register the largest quarterly dollar increase, growing by $1.6 billion 

(13.8 percent). The average noncurrent rate was 0.99 percent during the current quarter, 

down 3 basis points from the previous quarter. This is the first time since second quarter 

2007 that the noncurrent rate was below 1 percent.

Loan-Loss Reserves Increase 

From Third Quarter 2018

Loan-loss reserves totaled $124.7 billion at the end of the fourth quarter, an increase of 

$1 billion (0.8 percent) from third quarter 2018. The banking industry continued to build 

reserves, as loan-loss provisions of $14 billion exceeded net charge-offs of $12.6 billion. 

More than half of all banks (57.8 percent) reported a quarterly increase in loan-loss reserves. 

Banks that itemize their loan-loss reserves (banks with assets greater than $1 billion and 

representing 93 percent of total industry assets) reported higher reserves for credit card 

losses (up $997.4 million, or 2.5 percent) and lower reserves for residential real estate losses 

(down $556 million, or 4.4 percent). After declining for the past nine consecutive quarters, 

itemized reserves for losses on commercial loans reported quarterly growth of $409 million 

(1.3 percent).

Equity Capital Increases 

From the Third Quarter

Equity capital increased by $25.3 billion (1.3 percent) during the fourth quarter, led by accumulated other comprehensive income. Retained earnings rose by $70.8 billion (10.3 percent) 

from a year ago. Declared dividends in the fourth quarter totaled $52.7 billion, the highest 

level ever reported by the banking industry. At year-end 2018, 99.6 percent of all insured 

institutions, which account for 99.98 percent of total industry assets, met or exceeded the 

requirements for the well-capitalized category, as defined for Prompt Corrective Action 

purposes.

Total Assets Increase 

1.5 Percent During the 

Fourth Quarter

Total assets rose by $270.4 billion (1.5 percent) during the fourth quarter. Cash and 

balances due from depository institutions declined by $144.4 billion (7.9 percent) and total 

securities holdings grew by $93 billion (2.6 percent). U.S. Treasury securities increased 

$55.4 billion (11.2 percent) during the quarter, the largest quarterly dollar increase since 

fourth quarter 2014.

Held-to-Maturity Securities

Available-for-Sale Securities

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-46

-100

-80

-60

-40

-20

0

20

40

60

80

100

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 5

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Source: FDIC.

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

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

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

for the quarter absent this change in accounting standards.

$ Billions Percent

-300

-200

-100

0

100

200

300

-10

-8

-6

-4

-2

0

2

4

6

8

Quarterly Change (Le Axis)

12-Month Growth Rate (Right Axis)

213

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 6
2 0 1 9  •  Volume 1 3 • Number 1

4 FDIC QUARTERLY

Total Loan and Lease 

Balances Rise 4.4 Percent 

Over 12 Months

Total loan and lease balances were $213 billion (2.1 percent) higher compared with the 

previous quarter. All major loan categories registered quarterly increases.4 Commercial 

and industrial loans increased by $80.7 billion (3.9 percent), and consumer loans (including credit card balances) rose by $52.2 billion (3.1 percent). During the 12 months ended 

December 31, total loan and lease balances rose by $431.2 billion (4.4 percent), a slight 

increase from the 4 percent annual grow rate reported last quarter. All major loan categories 

reported year-over-year increases, led by commercial and industrial loans, which increased 

by $156.2 billion (7.8 percent), and consumer loans (including credit card balances), which 

rose by $64.9 billion (3.9 percent).

Deposits Increase 2.2 

Percent From the Previous 

Quarter

Total deposits increased by $292.6 billion (2.2 percent) from the third quarter, the largest quarterly dollar increase since fourth quarter 2012. Interest-bearing deposits grew 

by $296.5 billion (3.2 percent), while noninterest-bearing deposits fell by $ 5.4 billion 

(0.2 percent). Reliance on nondeposit liabilities declined by $47.5 billion (2.3 percent) from 

the previous quarter, as trade liabilities were reduced by $23.1 billion (8.9 percent) and other 

liabilities fell by $24.4 billion (6 percent).

The Number of Banks on 

the “Problem Bank List” 

Declines to 60

The number of banks on the FDIC’s “Problem Bank List” declined from 71 to 60 at yearend 2018, the fewest since first quarter 2007. Total assets of problem banks fell from 

$53.3 billion to $48.5 billion. During the fourth quarter, two new charters were added, 

70 institutions were absorbed by mergers, and there were no bank failures. For full-year 

2018, eight new charters were added, 259 institutions were absorbed by mergers, and there 

were no bank failures.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

Source: FDIC.

Number

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

0

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

300

350

400

450

500

Assets ($ Billions)

Number of Problem Banks 

Assets of Problem Banks

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 7

4 Major loan categories include commercial and industrial loans, residential mortgage loans, consumer loans, and nonfarm 

nonresidential loans. Consumer loans include credit card loans, automobile loans, and all other consumer loans.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2018 2017 2016 2015 2014 2013 2012

Return on assets (%) 1.35 0.97 1.04 1.04 1.01 1.07 1.00

Return on equity (%) 11.98 8.61 9.29 9.29 9.01 9.54 8.90

Core capital (leverage) ratio (%) 9.70 9.63 9.48 9.59 9.44 9.40 9.15

Noncurrent assets plus other real estate owned to assets (%) 0.60 0.72 0.86 0.97 1.20 1.63 2.20

Net charge-offs to loans (%) 0.48 0.50 0.47 0.44 0.49 0.69 1.10

Asset growth rate (%) 3.03 3.79 5.09 2.66 5.59 1.94 4.02

Net interest margin (%) 3.40 3.25 3.13 3.07 3.14 3.26 3.42

Net operating income growth (%) 45.21 -3.25 4.57 7.11 -0.73 12.82 17.76

Number of institutions reporting 5,406 5,670 5,913 6,182 6,509 6,812 7,083

Commercial banks 4,715 4,918 5,112 5,338 5,607 5,847 6,072

Savings institutions 691 752 801 844 902 965 1,011

Percentage of unprofitable institutions (%) 3.24 5.61 4.46 4.80 6.27 8.16 11.00

Number of problem institutions 60 95 123 183 291 467 651

Assets of problem institutions (in billions) $48 $14 $28 $47 $87 $153 $233

Number of failed institutions 0 8 5 8 18 24 51

* Excludes insured branches of foreign banks (IBAs).

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

(dollar figures in millions)  4th Quarter

2018

3nd Quarter

2018

4th Quarter

2017

%Change 

17Q4-18Q4

Number of institutions reporting 5,406 5,477 5,670 -4.7

Total employees (full-time equivalent) 2,067,086 2,070,617 2,076,128 -0.4

CONDITION DATA

Total assets $17,943,122 $17,672,762 $17,415,369 3.0

Loans secured by real estate 4,887,725 4,863,231 4,773,674 2.4

 1-4 Family residential mortgages 2,119,417 2,112,267 2,063,773 2.7

 Nonfarm nonresidential 1,445,522 1,427,072 1,391,187 3.9

 Construction and development 349,890 350,886 338,318 3.4

 Home equity lines 375,670 381,638 411,151 -8.6

Commercial & industrial loans 2,164,714 2,084,002 2,008,493 7.8

Loans to individuals 1,742,854 1,690,634 1,677,952 3.9

 Credit cards 903,492 856,327 865,055 4.4

Farm loans 82,341 82,346 80,852 1.8

Other loans & leases 1,277,052 1,221,409 1,182,375 8.0

Less: Unearned income 2,383 2,330 2,291 4.0

Total loans & leases 10,152,303 9,939,291 9,721,055 4.4

Less: Reserve for losses 124,737 123,728 123,757 0.8

Net loans and leases 10,027,566 9,815,563 9,597,298 4.5

Securities 3,723,058 3,630,099 3,631,821 2.5

Other real estate owned 6,691 7,187 8,457 -20.9

Goodwill and other intangibles 398,737 397,117 383,388 4.0

All other assets 3,787,070 3,822,797 3,794,405 -0.2

Total liabilities and capital 17,943,122 17,672,762 17,415,369 3.0

Deposits 13,866,258 13,573,675 13,399,208 3.5

 Domestic office deposits 12,612,933 12,321,839 12,081,457 4.4

 Foreign office deposits 1,253,325 1,251,835 1,317,751 -4.9

Other borrowed funds 1,476,120 1,497,299 1,496,033 -1.3

Subordinated debt 68,677 68,844 68,928 -0.4

All other liabilities 509,509 535,705 493,161 3.3

Total equity capital (includes minority interests) 2,022,559 1,997,239 1,958,039 3.3

 Bank equity capital 2,019,086 1,993,746 1,953,700 3.3

Loans and leases 30-89 days past due 65,984 63,196 67,583 -2.4

Noncurrent loans and leases 100,245 101,270 116,421 -13.9

Restructured loans and leases 55,752 56,395 60,221 -7.4

Mortgage-backed securities 2,187,121 2,157,644 2,133,349 2.5

Earning assets 16,255,811 15,959,361 15,760,886 3.1

FHLB Advances 571,406 553,364 582,547 -1.9

Unused loan commitments 7,819,743 7,842,642 7,516,182 4.0

Trust assets 19,304,690 20,422,634 20,333,376 -5.1

Assets securitized and sold 604,697 625,982 677,871 -10.8

Notional amount of derivatives 178,089,249 209,754,237 173,484,033 2.7

INCOME DATA

Full Year 

2018

Full Year

 2017 %Change

4th Quarter 

2018

4th Quarter 

2017

%Change 

17Q4-18Q4

Total interest income $660,988 $572,277 15.5 $176,892 $150,790 17.3

Total interest expense 119,799 73,254 63.5 36,733 21,137 73.8

Net interest income 541,189 499,023 8.5 140,159 129,653 8.1

Provision for loan and lease losses 49,998 51,134 -2.2 14,027 13,630 2.9

Total noninterest income 266,165 255,251 4.3 64,369 62,736 2.6

Total noninterest expense 459,322 442,546 3.8 118,056 117,862 0.2

Securities gains (losses) 328 2,129 -84.6 -231 24 N/M

Applicable income taxes 61,058 97,954 -37.7 13,045 35,327 -63.1

Extraordinary gains, net* -267 -87 -206.4 -40 -222 81.8

Total net income (includes minority interests) 237,036 164,682 43.9 59,129 25,373 133.0

 Bank net income 236,750 164,346 44.1 59,062 25,303 133.4

Net charge-offs 47,479 46,805 1.4 12,592 13,198 -4.6

Cash dividends 164,704 121,413 35.7 52,742 30,258 74.3

Retained earnings 72,045 42,932 67.8 6,320 -4,955 N/M

Net operating income 237,059 163,257 45.2 59,373 25,524 132.6

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 9  •  Volume 1 3 • Number 1

6 FDIC QUARTERLY

TABLE III-A. Full Year 2018, 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 5,406 12 5 1,346 2,866 401 69 226 432 49

Commercial banks 4,715 11 5 1,333 2,572 109 51 203 390 41

Savings institutions 691 1 0 13 294 292 18 23 42 8

Total assets (in billions) $17,943.1 $651.7 $4,285.8 $286.7 $6,374.0 $346.0 $218.3 $36.4 $76.3 $5,667.9

Commercial banks 16,728.2 559.9 4,285.8 281.3 5,893.7 103.3 113.9 31.9 67.2 5,391.1

Savings institutions 1,214.9 91.8 0.0 5.5 480.2 242.7 104.4 4.5 9.0 276.8

Total deposits (in billions) 13,866.3 388.4 3,117.1 237.9 4,999.6 272.6 179.5 28.9 64.2 4,578.1

Commercial banks 12,898.5 321.6 3,117.1 234.8 4,639.4 84.0 92.4 25.8 57.1 4,326.3

Savings institutions 967.7 66.7 0.0 3.2 360.2 188.6 87.1 3.0 7.1 251.8

Bank net income (in millions) 236,750 18,830 49,514 3,688 77,783 3,847 2,992 1,199 849 78,047

Commercial banks 222,032 16,469 49,514 3,553 73,166 1,578 1,878 685 778 74,410

Savings institutions 14,717 2,361 0 135 4,616 2,269 1,114 514 71 3,637

Performance Ratios (%)

Yield on earning assets 4.16 12.43 3.32 4.54 4.28 3.64 5.00 2.95 4.21 3.66

Cost of funding earning assets 0.75 1.95 0.77 0.71 0.73 0.70 0.75 0.39 0.53 0.64

Net interest margin 3.40 10.48 2.55 3.83 3.55 2.94 4.26 2.56 3.68 3.02

Noninterest income to assets 1.51 3.69 1.91 0.64 1.09 1.25 1.28 8.26 0.88 1.46

Noninterest expense to assets 2.61 6.29 2.48 2.56 2.60 2.57 2.98 6.34 2.90 2.28

Loan and lease loss provision to assets 0.28 3.38 0.18 0.15 0.15 0.00 0.55 0.08 0.13 0.17

Net operating income to assets 1.35 2.98 1.16 1.33 1.26 1.12 1.42 3.52 1.13 1.40

Pretax return on assets 1.70 3.74 1.50 1.49 1.57 1.49 1.87 3.63 1.27 1.76

Return on assets 1.35 2.96 1.17 1.32 1.26 1.14 1.42 2.95 1.12 1.40

Return on equity 11.98 19.53 11.78 11.74 10.57 10.01 13.63 18.99 9.30 12.65

Net charge-offs to loans and leases 0.48 3.87 0.50 0.15 0.18 0.02 0.76 1.42 0.17 0.37

Loan and lease loss provision to 

net charge-offs 105.31 109.77 98.77 152.81 120.61 10.07 101.56 18.24 139.33 91.39

Efficiency ratio 56.27 46.36 59.03 60.44 59.55 63.03 54.20 59.64 67.03 53.35

% of unprofitable institutions 3.24 0.00 0.00 2.23 3.07 6.23 5.80 4.87 3.94 0.00

% of institutions with earnings gains 79.65 91.67 100.00 72.29 84.19 73.57 75.36 76.99 78.24 91.84

Condition Ratios (%)

Earning assets to total assets 90.60 93.55 88.25 93.00 90.94 94.63 97.11 91.67 92.98 90.99

Loss allowance to:

Loans and leases 1.23 4.32 1.28 1.40 0.99 0.65 1.05 1.62 1.26 1.04

Noncurrent loans and leases 124.43 281.31 137.93 134.21 126.18 31.58 153.67 126.83 125.13 88.29

Noncurrent assets plus

other real estate owned to assets 0.60 1.26 0.39 0.82 0.63 1.28 0.49 0.43 0.72 0.62

Equity capital ratio 11.25 15.29 9.88 11.34 11.94 11.08 10.51 16.72 12.35 11.04

Core capital (leverage) ratio 9.70 13.47 8.71 11.20 10.18 10.94 10.83 15.39 12.53 9.21

Common equity tier 1 capital ratio 13.16 13.69 13.49 14.61 12.31 22.02 17.26 35.68 21.14 13.17

Tier 1 risk-based capital ratio 13.24 13.79 13.58 14.62 12.38 22.03 17.50 35.70 21.17 13.24

Total risk-based capital ratio 14.60 15.79 14.99 15.74 13.63 22.83 18.51 36.68 22.29 14.66

Net loans and leases to deposits 72.32 132.02 51.36 81.73 89.57 74.88 84.62 34.27 67.48 61.86

Net loans to total assets 55.89 78.68 37.35 67.81 70.26 59.00 69.58 27.16 56.82 49.96

Domestic deposits to total assets 70.29 58.97 48.33 82.97 78.15 78.48 82.21 79.24 84.20 77.52

Structural Changes

New reporters 8 0 0 0 0 1 0 7 0 0

Institutions absorbed by mergers 259 1 0 40 202 6 3 0 5 2

Failed institutions 0 0 0 0 0 0 0 0 0 0

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2017 5,670 11 5 1,389 2,944 420 59 272 510 60

 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

Total assets (in billions) 2017 $17,415.4 $562.7 $4,196.0 $282.6 $6,026.0 $349.3 $270.9 $46.9 $88.8 $5,592.2

 2015 15,967.7 549.1 3,774.6 277.6 5,892.1 385.4 187.3 57.5 113.9 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

Return on assets (%) 2017 0.97 1.52 0.62 1.05 1.02 0.94 1.02 2.61 0.91 1.10

 2015 1.04 2.84 0.87 0.96 0.95 0.83 1.04 2.69 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

Net charge-offs to loans & leases (%) 2017 0.50 3.95 0.56 0.16 0.21 0.04 0.60 0.23 0.15 0.43

 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

Noncurrent assets plus 

OREO to assets (%) 2017 0.72 1.25 0.48 0.77 0.70 1.70 0.36 0.59 0.81 0.82

 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

Equity capital ratio (%) 2017 11.22 15.10 9.83 11.18 11.95 11.22 10.00 15.26 11.94 11.09

 2015 11.24 14.29 10.13 11.32 11.76 11.36 10.12 15.04 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

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

FDIC QUARTERLY 7

TABLE III-A. Full Year 2018, 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 5,406 1,278 3,353 638 128 9 659 626 1,163 1,379 1,182 397

Commercial banks 4,715 1,133 2,941 518 114 9 341 572 999 1,333 1,109 361

Savings institutions 691 145 412 120 14 0 318 54 164 46 73 36

Total assets (in billions) $17,943.1 $75.8 $1,108.6 $1,734.9 $6,202.4 $8,821.4 $3,362.0 $3,677.0 $4,042.6 $3,670.8 $1,133.1 $2,057.7

Commercial banks 16,728.2 67.4 954.1 1,386.1 5,499.3 8,821.4 2,915.6 3,573.3 3,942.9 3,627.2 994.1 1,675.1

Savings institutions 1,214.9 8.5 154.5 348.8 703.1 0.0 446.4 103.7 99.7 43.5 138.9 382.6

Total deposits (in billions) 13,866.3 63.0 924.2 1,389.1 4,737.8 6,752.3 2,544.4 2,934.2 2,993.7 2,841.7 922.5 1,629.9

Commercial banks 12,898.5 56.6 802.3 1,121.2 4,166.1 6,752.3 2,205.3 2,852.3 2,923.9 2,808.2 812.4 1,296.4

Savings institutions 967.7 6.3 121.9 267.9 571.7 0.0 339.1 82.0 69.8 33.5 110.0 333.4

Bank net income (in millions) 236,750 761 13,321 22,164 87,302 113,201 39,898 52,024 50,108 45,525 15,438 33,756

Commercial banks 222,032 665 11,641 18,552 77,974 113,201 35,915 51,097 48,767 45,080 13,692 27,480

Savings institutions 14,717 96 1,681 3,612 9,328 0 3,983 927 1,341 445 1,746 6,275

Performance Ratios (%)

Yield on earning assets 4.16 4.40 4.50 4.49 4.73 3.65 4.33 4.23 3.44 4.18 4.51 4.92

Cost of funding earning assets 0.75 0.57 0.67 0.74 0.86 0.69 0.92 0.66 0.66 0.80 0.61 0.81

Net interest margin 3.40 3.83 3.83 3.75 3.87 2.95 3.41 3.57 2.78 3.38 3.89 4.11

Noninterest income to assets 1.51 1.39 1.16 1.14 1.50 1.64 1.38 1.47 1.89 1.28 1.24 1.68

Noninterest expense to assets 2.61 3.63 3.14 2.77 2.70 2.45 2.56 2.56 2.64 2.52 2.97 2.74

Loan and lease loss provision to assets 0.28 0.13 0.14 0.18 0.48 0.19 0.37 0.30 0.12 0.26 0.17 0.55

Net operating income to assets 1.35 1.02 1.25 1.33 1.46 1.29 1.22 1.44 1.27 1.24 1.39 1.74

Pretax return on assets 1.70 1.15 1.43 1.66 1.85 1.64 1.51 1.80 1.60 1.57 1.67 2.25

Return on assets 1.35 1.02 1.23 1.33 1.46 1.29 1.22 1.44 1.26 1.25 1.40 1.74

Return on equity 11.98 7.59 10.80 11.31 11.99 12.32 9.74 11.94 12.14 12.28 12.04 15.33

Net charge-offs to loans and leases 0.48 0.18 0.15 0.19 0.70 0.43 0.59 0.55 0.23 0.50 0.24 0.73

Loan and lease loss provision to 

net charge-offs 105.31 123.82 131.31 127.73 110.19 93.75 110.96 93.10 103.44 97.85 108.28 123.06

Efficiency ratio 56.27 73.57 66.19 59.53 53.14 56.58 56.91 54.39 60.00 56.90 61.08 49.02

% of unprofitable institutions 3.24 8.06 2.06 0.47 0.00 0.00 3.64 5.27 3.44 2.25 2.62 4.03

% of institutions with earnings gains 79.65 69.72 80.88 89.81 94.53 100.00 87.10 84.66 76.61 75.63 78.85 84.63

Condition Ratios (%)

Earning assets to total assets 90.60 92.49 93.13 92.36 91.25 89.45 90.01 89.82 89.59 90.64 91.64 94.27

Loss allowance to:

Loans and leases 1.23 1.38 1.24 1.08 1.34 1.17 1.28 1.20 1.10 1.27 1.04 1.45

Noncurrent loans and leases 124.43 112.62 155.33 139.63 140.03 105.36 135.59 114.08 115.89 106.45 104.97 213.47

Noncurrent assets plus

other real estate owned to assets 0.60 0.97 0.73 0.64 0.62 0.57 0.58 0.65 0.54 0.68 0.76 0.44

Equity capital ratio 11.25 13.57 11.50 11.91 12.08 10.49 12.53 12.07 10.35 10.23 11.81 11.01

Core capital (leverage) ratio 9.70 13.66 11.43 10.92 10.37 8.74 10.56 9.56 9.08 9.23 10.41 10.26

Common equity tier 1 capital ratio 13.16 21.67 15.67 14.09 13.03 12.65 13.56 12.87 12.94 12.60 13.29 14.36

Tier 1 risk-based capital ratio 13.24 21.70 15.69 14.11 13.18 12.69 13.62 12.98 12.98 12.69 13.39 14.47

Total risk-based capital ratio 14.60 22.77 16.77 15.08 14.57 14.15 15.04 14.24 14.15 14.57 14.42 15.52

Net loans and leases to deposits 72.32 71.37 82.25 88.57 80.10 62.16 75.29 71.89 68.06 69.03 80.98 77.07

Net loans to total assets 55.89 59.26 68.57 70.92 61.19 47.58 56.98 57.37 50.40 53.44 65.93 61.05

Domestic deposits to total assets 70.29 83.03 83.36 79.83 73.66 64.30 70.04 77.37 64.64 61.64 81.37 78.51

Structural Changes

New reporters 8 7 1 0 0 0 1 3 0 0 1 3

Institutions absorbed by mergers 259 74 153 31 1 0 38 37 44 58 56 26

Failed institutions 0 0 0 0 0 0 0 0 0 0 0 0

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2017 5,670 1,407 3,513 627 114 9 693 668 1,214 1,438 1,235 422

 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

Total assets (in billions) 2017 $17,415.4 $83.7 $1,154.2 $1,751.7 $5,699.2 $8,726.6 $3,248.1 $3,601.0 $3,918.1 $3,683.1 $1,090.0 $1,875.1

 2015 15,967.7 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

Return on assets (%) 2017 0.97 0.83 1.04 1.05 1.04 0.89 0.85 1.00 1.00 0.77 1.12 1.36

 2015 1.04 0.84 1.07 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

Net charge-offs to loans & leases (%) 2017 0.50 0.21 0.15 0.22 0.71 0.47 0.58 0.61 0.27 0.51 0.28 0.67

 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

Noncurrent assets plus 

OREO to assets (%) 2017 0.72 1.01 0.83 0.66 0.70 0.73 0.65 0.83 0.64 0.86 0.81 0.45

 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

Equity capital ratio (%) 2017 11.22 13.01 11.29 11.82 12.13 10.47 12.34 12.06 10.42 9.99 11.49 11.58

 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

* See Table V-A (page 11) for explanations.
2 0 1 9  •  Volume 1 3 • Number 1

8 FDIC QUARTERLY

TABLE IV-A. Fourth Quarter 2018, All FDIC-Insured Institutions

Asset Concentration Groups*

FOURTH QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,406 12 5 1,346 2,866 401 69 226 432 49

Commercial banks 4,715 11 5 1,333 2,572 109 51 203 390 41

Savings institutions 691 1 0 13 294 292 18 23 42 8

Total assets (in billions) $17,943.1 $651.7 $4,285.8 $286.7 $6,374.0 $346.0 $218.3 $36.4 $76.3 $5,667.9

Commercial banks 16,728.2 559.9 4,285.8 281.3 5,893.7 103.3 113.9 31.9 67.2 5,391.1

Savings institutions 1,214.9 91.8 0.0 5.5 480.2 242.7 104.4 4.5 9.0 276.8

Total deposits (in billions) 13,866.3 388.4 3,117.1 237.9 4,999.6 272.6 179.5 28.9 64.2 4,578.1

Commercial banks 12,898.5 321.6 3,117.1 234.8 4,639.4 84.0 92.4 25.8 57.1 4,326.3

Savings institutions 967.7 66.7 0.0 3.2 360.2 188.6 87.1 3.0 7.1 251.8

Bank net income (in millions) 59,062 5,422 10,904 873 19,821 911 710 382 212 19,827

Commercial banks 55,124 4,647 10,904 842 18,716 338 506 192 193 18,786

Savings institutions 3,937 775 0 31 1,105 573 204 190 19 1,040

Performance Ratios (annualized, %)

Yield on earning assets 4.40 12.96 3.59 4.72 4.50 3.80 5.26 3.34 4.42 3.86

Cost of funding earning assets 0.91 2.18 0.96 0.84 0.88 0.83 0.92 0.49 0.62 0.78

Net interest margin 3.48 10.77 2.62 3.88 3.62 2.97 4.34 2.85 3.80 3.08

Noninterest income to assets 1.45 3.88 1.70 0.64 1.05 1.27 1.15 9.57 0.89 1.43

Noninterest expense to assets 2.65 6.60 2.47 2.66 2.61 2.71 2.99 6.76 3.02 2.34

Loan and lease loss provision to assets 0.32 3.50 0.22 0.19 0.18 0.03 0.61 0.14 0.15 0.19

Net operating income to assets 1.33 3.37 1.02 1.24 1.27 1.06 1.33 4.33 1.13 1.41

Pretax return on assets 1.62 3.79 1.33 1.39 1.53 1.35 1.71 4.92 1.24 1.70

Return on assets 1.33 3.36 1.02 1.23 1.26 1.07 1.32 3.97 1.12 1.41

Return on equity 11.78 21.97 10.30 10.88 10.53 9.49 12.47 24.76 9.12 12.76

Net charge-offs to loans and leases 0.50 3.85 0.49 0.19 0.21 0.06 0.80 0.24 0.22 0.39

Loan and lease loss provision to 

net charge-offs 111.40 112.44 118.21 137.76 119.64 88.33 107.59 191.32 114.59 97.03

Efficiency ratio 57.09 47.03 61.04 62.24 59.52 65.90 55.05 55.46 68.07 54.44

% of unprofitable institutions 6.55 0.00 0.00 7.88 4.61 12.47 11.59 11.95 6.71 4.08

% of institutions with earnings gains 73.57 91.67 100.00 65.30 78.47 69.83 69.57 68.58 72.45 75.51

Structural Changes

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

Institutions absorbed by mergers 70 0 0 16 51 0 1 0 2 0

Failed institutions 0 0 0 0 0 0 0 0 0 0

PRIOR FOURTH QUARTERS

(The way it was...)

Return on assets (%) 2017 0.58 -0.04 -0.43 0.48 0.90 0.65 0.69 2.86 0.78 1.04

 2015 1.02 2.66 0.83 1.12 0.90 0.89 0.81 3.43 2.14 1.12

 2013 1.09 3.65 0.92 1.08 0.96 0.96 0.91 2.18 0.76 1.04

Net charge-offs to loans & leases (%) 2017 0.55 4.18 0.56 0.24 0.23 0.06 0.62 0.36 0.18 0.51

 2015 0.49 3.01 0.68 0.17 0.24 0.10 0.71 0.32 0.21 0.44

 2013 0.61 3.09 0.81 0.20 0.38 0.28 0.88 0.66 0.37 0.40

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

FDIC QUARTERLY 9

TABLE IV-A. Fourth Quarter 2018, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FOURTH QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,406 1,278 3,353 638 128 9 659 626 1,163 1,379 1,182 397

Commercial banks 4,715 1,133 2,941 518 114 9 341 572 999 1,333 1,109 361

Savings institutions 691 145 412 120 14 0 318 54 164 46 73 36

Total assets (in billions) $17,943.1 $75.8 $1,108.6 $1,734.9 $6,202.4 $8,821.4 $3,362.0 $3,677.0 $4,042.6 $3,670.8 $1,133.1 $2,057.7

Commercial banks 16,728.2 67.4 954.1 1,386.1 5,499.3 8,821.4 2,915.6 3,573.3 3,942.9 3,627.2 994.1 1,675.1

Savings institutions 1,214.9 8.5 154.5 348.8 703.1 0.0 446.4 103.7 99.7 43.5 138.9 382.6

Total deposits (in billions) 13,866.3 63.0 924.2 1,389.1 4,737.8 6,752.3 2,544.4 2,934.2 2,993.7 2,841.7 922.5 1,629.9

Commercial banks 12,898.5 56.6 802.3 1,121.2 4,166.1 6,752.3 2,205.3 2,852.3 2,923.9 2,808.2 812.4 1,296.4

Savings institutions 967.7 6.3 121.9 267.9 571.7 0.0 339.1 82.0 69.8 33.5 110.0 333.4

Bank net income (in millions) 59,062 166 3,438 5,586 22,863 27,010 10,325 13,315 11,980 10,604 3,756 9,082

Commercial banks 55,124 148 2,953 4,726 20,288 27,010 9,361 13,091 11,566 10,493 3,444 7,169

Savings institutions 3,937 18 484 860 2,574 0 964 224 413 111 312 1,913

Performance Ratios (annualized, %)

Yield on earning assets 4.40 4.60 4.71 4.70 4.99 3.87 4.60 4.43 3.67 4.42 4.74 5.15

Cost of funding earning assets 0.91 0.67 0.79 0.88 1.03 0.86 1.12 0.80 0.82 0.96 0.76 0.96

Net interest margin 3.48 3.93 3.92 3.82 3.96 3.02 3.48 3.63 2.85 3.46 3.98 4.19

Noninterest income to assets 1.45 1.35 1.18 1.08 1.49 1.53 1.40 1.43 1.75 1.13 1.16 1.69

Noninterest expense to assets 2.65 3.81 3.22 2.83 2.74 2.48 2.64 2.60 2.63 2.58 3.01 2.77

Loan and lease loss provision to assets 0.32 0.15 0.16 0.17 0.52 0.22 0.40 0.34 0.16 0.27 0.21 0.57

Net operating income to assets 1.33 0.89 1.27 1.32 1.51 1.23 1.25 1.46 1.20 1.16 1.37 1.81

Pretax return on assets 1.62 1.01 1.43 1.59 1.82 1.52 1.48 1.74 1.50 1.42 1.55 2.28

Return on assets 1.33 0.88 1.25 1.30 1.50 1.23 1.25 1.45 1.19 1.16 1.34 1.80

Return on equity 11.78 6.51 10.90 10.96 12.31 11.72 9.88 12.10 11.51 11.36 11.38 16.11

Net charge-offs to loans and leases 0.50 0.24 0.18 0.21 0.73 0.44 0.58 0.58 0.24 0.51 0.30 0.78

Loan and lease loss provision to 

net charge-offs 111.40 104.64 124.68 110.90 114.69 105.53 117.84 103.04 132.26 98.87 108.04 117.68

Efficiency ratio 57.09 76.33 66.37 60.89 53.06 58.13 57.61 54.93 60.69 59.35 61.87 48.81

% of unprofitable institutions 6.55 15.81 4.21 1.72 0.00 0.00 5.16 7.83 6.36 7.11 6.77 4.79

% of institutions with earnings gains 73.57 62.52 75.51 82.76 85.94 88.89 84.83 78.59 71.71 66.86 71.40 82.12

Structural Changes

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

Institutions absorbed by mergers 70 22 43 5 0 0 11 11 13 16 11 8

Failed institutions 0 0 0 0 0 0 0 0 0 0 0 0

PRIOR FOURTH QUARTERS

(The way it was...)

Return on assets (%) 2017 0.58 0.59 0.85 0.73 0.78 0.40 0.59 0.69 0.83 -0.13 0.89 1.10

 2015 1.02 0.75 1.19 1.03 0.99 1.02 0.77 1.02 1.02 1.09 0.97 1.43

 2013 1.09 0.58 0.88 1.06 1.17 1.08 1.04 0.86 1.06 1.20 0.99 1.55

Net charge-offs to loans & leases (%) 2017 0.55 0.29 0.23 0.29 0.76 0.51 0.64 0.69 0.26 0.56 0.33 0.75

 2015 0.49 0.31 0.22 0.30 0.59 0.54 0.53 0.54 0.28 0.59 0.35 0.62

 2013 0.61 0.44 0.41 0.37 0.83 0.55 0.80 0.59 0.46 0.73 0.31 0.57

* See Table V-A (page 11) for explanations.
2 0 1 9  •  Volume 1 3 • Number 1

10 FDIC QUARTERLY

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

Asset Concentration Groups*

December 31, 2018 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 0.61 1.02 0.73 0.70 0.44 0.81 0.54 1.48 1.25 0.88

Construction and development 0.35 12.26 0.08 0.53 0.31 0.82 0.53 0.80 1.04 0.49

Nonfarm nonresidential 0.25 0.00 0.28 0.55 0.24 0.33 0.68 1.17 0.75 0.22

Multifamily residential real estate 0.11 0.00 0.04 0.29 0.09 0.40 0.00 0.98 0.58 0.26

Home equity loans 0.66 0.00 1.18 0.36 0.52 0.48 0.44 0.66 1.12 0.72

Other 1-4 family residential 1.00 0.21 1.00 1.16 0.82 0.90 0.53 1.95 1.54 1.25

Commercial and industrial loans 0.28 0.99 0.21 0.88 0.27 0.79 0.24 1.05 1.12 0.25

Loans to individuals 1.54 1.59 1.14 1.30 1.54 1.19 0.86 1.55 1.83 1.89

Credit card loans 1.39 1.60 1.13 1.49 1.37 0.82 0.81 2.60 2.36 1.22

Other loans to individuals 1.70 1.37 1.14 1.28 1.56 1.22 0.87 1.38 1.81 2.30

All other loans and leases (including farm) 0.26 0.68 0.20 0.68 0.20 0.97 0.22 0.61 0.62 0.28

Total loans and leases 0.65 1.53 0.55 0.73 0.47 0.83 0.75 1.39 1.25 0.79

Percent of Loans Noncurrent**

All real estate loans 1.32 2.12 1.70 1.02 0.82 2.20 1.41 1.48 1.07 2.22

Construction and development 0.44 0.15 1.08 0.47 0.43 0.31 0.79 0.65 0.96 0.31

Nonfarm nonresidential 0.57 50.24 0.70 0.85 0.54 0.41 1.29 1.29 1.17 0.63

Multifamily residential real estate 0.15 0.00 0.07 0.45 0.14 1.11 0.80 1.98 0.82 0.19

Home equity loans 2.24 0.00 3.91 0.39 1.19 1.03 1.79 1.48 0.45 3.53

Other 1-4 family residential 2.06 0.62 2.15 0.84 1.38 2.59 1.40 1.69 1.11 2.90

Commercial and industrial loans 0.68 0.68 0.64 1.31 0.80 1.07 0.42 1.03 0.96 0.49

Loans to individuals 1.03 1.61 0.94 0.50 0.90 0.45 0.50 0.67 0.72 0.74

Credit card loans 1.44 1.66 1.20 0.55 1.23 0.49 1.27 1.85 0.98 1.20

Other loans to individuals 0.59 0.59 0.32 0.50 0.87 0.45 0.31 0.47 0.71 0.45

All other loans and leases (including farm) 0.22 0.38 0.08 1.06 0.32 0.94 0.17 0.78 0.67 0.19

Total loans and leases 0.99 1.54 0.93 1.04 0.78 2.07 0.68 1.28 1.00 1.17

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.01 0.09 -0.04 0.04 0.02 -0.01 -0.02 1.03 0.06 0.00

Construction and development -0.02 0.02 0.01 -0.02 -0.02 -0.03 -0.05 0.01 0.15 -0.04

Nonfarm nonresidential 0.03 0.00 0.00 0.05 0.03 -0.02 0.06 0.29 0.04 0.02

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

Home equity loans 0.03 53.58 0.04 -0.13 0.05 -0.34 -0.09 1.57 0.06 0.02

Other 1-4 family residential 0.00 0.02 -0.07 0.04 0.02 0.01 -0.02 1.64 0.06 0.00

Commercial and industrial loans 0.28 2.27 0.21 0.35 0.29 0.06 0.63 0.09 0.53 0.17

Loans to individuals 2.35 4.04 2.60 0.65 1.10 1.10 1.02 4.09 0.72 1.80

Credit card loans 3.75 4.11 3.44 2.93 4.05 2.54 2.75 10.92 1.79 3.24

Other loans to individuals 0.89 2.50 0.77 0.44 0.83 0.98 0.59 3.38 0.68 0.95

All other loans and leases (including farm) 0.12 0.78 0.04 0.27 0.15 0.26 0.06 0.96 0.23 0.15

Total loans and leases 0.48 3.87 0.50 0.15 0.18 0.02 0.76 1.42 0.17 0.37

Loans Outstanding (in billions)

All real estate loans $4,887.7 $0.9 $578.2 $122.8 $2,771.2 $186.0 $32.5 $6.9 $33.0 $1,156.2

Construction and development 349.9 0.1 16.6 7.3 266.1 5.4 0.6 0.6 2.1 51.1

Nonfarm nonresidential 1,445.5 0.0 55.1 33.8 1,077.1 16.6 2.3 2.3 7.4 250.9

Multifamily residential real estate 430.4 0.0 79.8 4.1 296.3 4.6 0.3 0.2 0.9 44.3

Home equity loans 375.7 0.0 45.5 2.4 195.9 10.3 3.6 0.2 1.2 116.5

Other 1-4 family residential 2,119.4 0.8 333.6 28.8 887.0 148.1 25.7 3.2 18.3 673.9

Commercial and industrial loans 2,164.7 44.2 356.7 23.0 1,035.8 5.1 6.9 1.3 4.0 687.7

Loans to individuals 1,742.9 489.9 284.3 6.6 361.5 4.6 110.5 1.4 4.2 480.0

Credit card loans 903.5 467.6 199.1 0.6 31.0 0.3 21.7 0.2 0.1 182.9

Other loans to individuals 839.4 22.4 85.1 6.0 330.5 4.3 88.8 1.2 4.0 297.1

All other loans and leases (including farm) 1,359.4 0.9 403.2 44.8 355.7 10.0 3.7 0.5 2.8 537.8

Total loans and leases (plus unearned income) 10,154.7 535.9 1,622.4 197.2 4,524.3 205.6 153.6 10.1 43.9 2,861.7

Memo: Other Real Estate Owned (in millions)

All other real estate owned 6,690.6 0.2 439.4 289.4 4,343.7 172.3 25.8 29.3 108.3 1,282.2

Construction and development 1,757.1 0.0 5.2 63.7 1,492.4 41.4 4.7 9.5 18.5 121.6

Nonfarm nonresidential 1,987.0 0.0 55.0 94.7 1,468.1 18.6 4.9 11.5 40.0 294.3

Multifamily residential real estate 80.3 0.0 0.0 7.8 70.0 0.6 0.1 0.0 0.6 1.2

1-4 family residential 2,646.8 0.2 349.2 50.9 1,210.4 105.9 16.0 7.7 43.5 862.9

Farmland 188.5 0.0 0.0 72.4 102.8 5.8 0.0 0.6 5.7 1.2

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

December 31, 2018 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 0.61 1.26 0.63 0.36 0.53 0.81 0.49 0.70 0.65 0.81 0.65 0.28

Construction and development 0.35 0.80 0.49 0.30 0.37 0.22 0.43 0.39 0.30 0.25 0.31 0.40

Nonfarm nonresidential 0.25 0.96 0.39 0.25 0.21 0.20 0.29 0.19 0.30 0.20 0.32 0.17

Multifamily residential real estate 0.11 1.06 0.21 0.10 0.08 0.11 0.09 0.22 0.10 0.17 0.17 0.04

Home equity loans 0.66 0.78 0.54 0.42 0.55 0.83 0.52 0.71 0.80 0.72 0.55 0.33

Other 1-4 family residential 1.00 1.70 0.99 0.60 0.93 1.17 0.83 1.13 0.95 1.32 1.37 0.40

Commercial and industrial loans 0.28 1.24 0.65 0.41 0.25 0.23 0.25 0.27 0.23 0.26 0.40 0.37

Loans to individuals 1.54 1.96 1.63 1.43 1.45 1.65 1.23 2.18 1.08 1.40 0.99 1.66

Credit card loans 1.39 3.99 2.38 2.98 1.52 1.17 1.22 1.60 1.17 1.21 0.79 1.79

Other loans to individuals 1.70 1.93 1.58 1.11 1.37 2.15 1.24 2.78 1.04 1.73 1.08 1.55

All other loans and leases (including farm) 0.26 0.62 0.56 0.34 0.17 0.27 0.33 0.27 0.25 0.20 0.27 0.26

Total loans and leases 0.65 1.21 0.67 0.43 0.64 0.71 0.58 0.83 0.54 0.67 0.60 0.64

Percent of Loans Noncurrent** 

All real estate loans 1.32 1.19 0.78 0.70 1.09 2.10 1.11 1.53 1.48 1.92 1.09 0.42

Construction and development 0.44 0.82 0.76 0.49 0.27 0.47 0.51 0.48 0.66 0.36 0.35 0.26

Nonfarm nonresidential 0.57 1.29 0.71 0.62 0.47 0.60 0.64 0.54 0.70 0.55 0.62 0.36

Multifamily residential real estate 0.15 0.40 0.34 0.14 0.15 0.11 0.15 0.30 0.14 0.13 0.19 0.06

Home equity loans 2.24 0.51 0.51 0.58 1.18 3.72 2.33 2.55 2.15 2.92 1.03 0.53

Other 1-4 family residential 2.06 1.25 0.86 1.02 1.93 2.76 1.75 2.26 2.06 3.00 2.25 0.51

Commercial and industrial loans 0.68 1.75 0.94 1.15 0.74 0.51 0.72 0.52 0.59 0.68 0.99 0.94

Loans to individuals 1.03 0.96 0.70 0.94 1.21 0.85 1.07 1.26 0.56 1.00 0.87 1.11

Credit card loans 1.44 2.29 1.75 3.01 1.59 1.19 1.35 1.52 1.15 1.27 1.24 1.86

Other loans to individuals 0.59 0.94 0.63 0.53 0.70 0.48 0.62 0.98 0.29 0.52 0.70 0.40

All other loans and leases (including farm) 0.22 1.07 0.77 0.41 0.30 0.13 0.25 0.19 0.14 0.27 0.34 0.30

Total loans and leases 0.99 1.22 0.80 0.77 0.95 1.11 0.94 1.05 0.95 1.19 1.00 0.68

Percent of Loans Charged-Off (net, YTD) 

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

Construction and development -0.02 -0.02 0.02 0.00 -0.04 -0.04 -0.02 0.01 -0.02 -0.03 0.03 -0.15

Nonfarm nonresidential 0.03 0.05 0.04 0.03 0.05 0.00 0.05 0.04 0.04 0.01 0.04 0.01

Multifamily residential real estate 0.00 -0.06 -0.01 -0.01 0.00 0.00 0.00 0.00 -0.01 0.00 0.01 -0.01

Home equity loans 0.03 0.03 0.07 0.02 0.02 0.04 0.10 0.03 0.02 0.00 -0.01 -0.03

Other 1-4 family residential 0.00 0.06 0.07 0.03 0.02 -0.04 0.04 0.01 -0.04 0.00 0.02 0.01

Commercial and industrial loans 0.28 0.57 0.35 0.39 0.39 0.18 0.29 0.27 0.23 0.20 0.41 0.48

Loans to individuals 2.35 0.79 1.33 1.99 2.61 2.13 2.57 2.35 1.45 2.71 1.43 2.57

Credit card loans 3.75 11.90 7.26 7.60 3.96 3.34 3.51 3.83 3.54 3.56 2.62 4.53

Other loans to individuals 0.89 0.64 0.92 0.85 0.86 0.92 1.10 0.85 0.57 1.29 0.90 0.77

All other loans and leases (including farm) 0.12 0.24 0.26 0.19 0.10 0.12 0.13 0.14 0.10 0.14 0.16 0.11

Total loans and leases 0.48 0.18 0.15 0.19 0.70 0.43 0.59 0.55 0.23 0.50 0.24 0.73

Loans Outstanding (in billions) 

All real estate loans $4,887.7 $31.2 $591.9 $917.4 $1,707.8 $1,639.5 $1,010.4 $911.5 $1,008.1 $867.0 $483.2 $607.6

Construction and development 349.9 1.8 56.3 87.1 137.3 67.2 66.3 58.0 58.5 51.6 74.8 40.7

Nonfarm nonresidential 1,445.5 7.4 224.3 371.7 555.9 286.2 332.4 282.5 219.9 196.3 203.1 211.3

Multifamily residential real estate 430.4 0.8 32.7 102.7 171.8 122.4 152.9 43.6 110.5 37.0 21.6 64.8

Home equity loans 375.7 0.7 22.0 41.8 139.1 172.1 76.3 92.6 92.7 65.7 20.7 27.6

Other 1-4 family residential 2,119.4 14.4 204.4 289.9 685.2 925.4 377.6 420.2 502.1 424.4 144.3 250.7

Commercial and industrial loans 2,164.7 5.2 97.2 193.1 829.8 1,039.4 339.4 518.3 488.0 429.7 150.0 239.3

Loans to individuals 1,742.9 2.9 31.7 68.5 891.1 748.8 385.2 420.9 234.4 317.6 67.1 317.6

Credit card loans 903.5 0.0 2.0 11.4 504.7 385.3 235.5 214.4 73.6 203.9 20.7 155.4

Other loans to individuals 839.4 2.8 29.6 57.0 386.3 363.5 149.7 206.5 160.8 113.8 46.4 162.2

All other loans and leases (including farm) 1,359.4 6.2 49.2 65.2 418.9 819.8 206.0 284.7 329.8 373.4 55.0 110.6

Total loans and leases 

(plus unearned income) 10,154.7 45.6 770.0 1,244.1 3,847.5 4,247.5 1,941.0 2,135.3 2,060.3 1,987.8 755.2 1,275.1

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 6,690.6 175.6 1,884.0 1,441.4 1,681.5 1,508.2 1,228.3 1,510.2 1,280.0 1,188.4 1,121.5 362.3

Construction and development 1,757.1 42.6 806.3 477.0 330.2 100.9 218.9 482.8 216.1 291.1 421.6 126.6

Nonfarm nonresidential 1,987.0 48.9 612.1 534.6 472.3 319.1 351.1 430.7 370.9 323.9 415.9 94.6

Multifamily residential real estate 80.3 4.3 43.6 23.9 3.4 5.0 16.3 20.9 14.3 15.6 8.2 5.0

1-4 family residential 2,646.8 55.1 340.5 340.9 859.1 1,051.2 630.1 564.5 656.8 436.1 235.1 124.2

Farmland 188.5 24.7 81.5 64.9 16.4 1.0 11.9 11.3 20.9 91.7 40.8 11.9

* 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 9  •  Volume 1 3 • Number 1

12 FDIC QUARTERLY

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

4th 

Quarter 

2018

3rd 

Quarter 

2018

2nd

Quarter 

2018

1st

Quarter 

2018

4th 

Quarter 

2017

% 

Change 

17Q4-

18Q4

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 1,311 1,347 1,362 1,361 1,367 -4.1 34 724 424 120 9

Total assets of institutions reporting derivatives $16,296,689 $16,058,057 $15,950,442 $15,950,129 $15,815,207 3.0 $2,427 $319,519 $1,296,780 $5,856,581 $8,821,382

Total deposits of institutions reporting derivatives 12,555,823 12,291,564 12,206,863 12,264,978 12,133,179 3.5 2,019 264,388 1,032,334 4,504,801 6,752,281

Total derivatives 178,089,249 209,754,237 209,828,279 205,986,576 173,484,033 2.7 124 20,871 129,525 50,356,371 127,582,358

Derivative Contracts by Underlying Risk Exposure 

Interest rate 128,174,999 156,781,051 157,435,136 155,478,401 130,423,142 -1.7 122 20,733 123,392 41,511,649 86,519,102

Foreign exchange* 40,948,207 43,473,496 43,279,998 41,064,224 34,422,180 19.0 0 1 4,504 8,286,031 32,657,671

Equity 3,374,363 3,644,559 3,420,624 3,466,899 3,079,607 9.6 0 0 160 144,522 3,229,681

Commodity & other (excluding credit derivatives) 1,314,571 1,510,680 1,510,765 1,631,020 1,372,891 -4.2 0 0 28 86,828 1,227,715

Credit 4,276,947 4,341,695 4,178,619 4,345,494 4,186,122 2.2 0 5 1,412 327,341 3,948,188

Total 178,089,087 209,751,481 209,825,142 205,986,038 173,483,942 2.7 122 20,739 129,496 50,356,371 127,582,358

Derivative Contracts by Transaction Type 

Swaps 97,923,336 104,786,177 107,958,507 105,094,254 94,523,939 3.6 18 8,355 85,125 26,384,850 71,444,988

Futures & forwards 36,143,798 47,051,282 46,023,905 45,497,597 34,407,162 5.0 9 1,686 24,176 10,389,411 25,728,516

Purchased options 18,707,980 25,031,774 23,883,350 23,840,759 19,163,376 -2.4 1 509 10,129 6,296,477 12,400,865

Written options 19,300,817 25,769,185 25,142,041 24,973,515 19,677,317 -1.9 3 1,452 8,369 6,676,396 12,614,597

Total 172,075,932 202,638,418 203,007,802 199,406,126 167,771,793 2.6 31 12,003 127,800 49,747,134 122,188,965

Fair Value of Derivative Contracts 

Interest rate contracts 47,241 53,589 49,616 51,495 49,031 -3.7 0 88 771 4,705 41,677

Foreign exchange contracts 11,282 25,827 23,843 27,846 10,372 8.8 0 0 9 2,015 9,258

Equity contracts 6,407 1,975 5,003 6,582 -7,514 N/M 0 0 1 -144 6,551

Commodity & other (excluding credit derivatives) -1,873 2,948 1,181 -867 -829 N/M 0 0 0 357 -2,230

Credit derivatives as guarantor** 6,606 26,237 23,965 33,701 33,170 -80.1 0 0 0 -740 7,347

Credit derivatives as beneficiary** -6,765 -26,912 -24,348 -34,976 -34,547 N/M 0 0 0 527 -7,291

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 71,493,383 93,168,891 91,960,389 95,441,266 72,590,571 -1.5 26 3,948 24,584 19,559,340 51,905,486

 1-5 years 36,682,642 42,735,090 42,279,244 40,334,591 36,154,566 1.5 10 4,202 33,695 8,785,733 27,859,002

 > 5 years 23,245,983 24,228,362 24,373,830 23,687,654 23,565,880 -1.4 15 7,748 53,620 6,749,683 16,434,917

Foreign exchange and gold contracts < 1 year 28,891,823 29,674,897 31,341,537 29,696,500 24,379,652 18.5 0 1 2,637 5,717,756 23,171,429

 1-5 years 4,218,682 4,928,405 4,906,415 5,021,957 4,805,216 -12.2 0 0 961 781,270 3,436,451

 > 5 years 2,095,962 2,470,383 2,472,893 2,630,013 2,525,329 -17.0 0 0 110 589,988 1,505,864

Equity contracts < 1 year 2,448,707 2,825,222 2,679,109 2,747,190 2,295,686 6.7 0 0 28 58,264 2,390,415

 1-5 years 863,793 963,096 867,817 843,259 732,909 17.9 0 0 48 48,514 815,231

 > 5 years 139,158 135,954 123,737 139,432 113,150 23.0 0 0 2 8,961 130,196

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 1,745,343 1,896,551 1,994,605 2,314,371 2,172,996 -19.7 0 5 38 69,705 1,675,595

 1-5 years 3,105,739 3,017,006 3,019,612 2,862,714 2,814,096 10.4 0 5 414 199,356 2,905,963

 > 5 years 298,068 537,194 309,072 527,870 312,753 -4.7 0 22 512 36,498 261,036

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 22.7 23.9 24.5 24.8 23.3 0.1 0.5 1.1 13.1 35.1

Total potential future exposure to tier 1 capital (%) 36.0 40.9 39.5 41.8 38.6 0.1 0.4 0.8 17.9 57.9

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 58.8 64.8 64.0 66.6 61.9 0.2 0.9 1.9 31.0 93.1

Credit losses on derivatives  12.0 12.0 3.0 -1.0 11.0 9.1 0.0 0.0 2.0 -1.0 11.0

HELD FOR TRADING 

Number of institutions reporting derivatives 192 197 197 199 201 -4.5 2 29 88 65 8

Total assets of institutions reporting derivatives 12,768,651 12,611,908 12,484,266 12,578,335 12,481,545 2.3 171 14,752 304,578 3,930,437 8,518,713

Total deposits of institutions reporting derivatives 9,799,163 9,613,503 9,518,156 9,638,443 9,555,469 2.6 148 12,214 241,382 3,052,735 6,492,683

Derivative Contracts by Underlying Risk Exposure 

Interest rate 126,215,235 154,523,852 155,241,947 153,262,676 128,177,117 -1.5 2 645 34,870 40,951,704 85,228,014

Foreign exchange 38,768,802 40,241,704 40,144,539 38,353,254 32,402,215 19.6 0 0 3,564 7,974,672 30,790,566

Equity 3,359,405 3,628,434 3,402,588 3,450,109 3,063,576 9.7 0 0 10 134,238 3,225,157

Commodity & other 1,285,123 1,481,650 1,481,752 1,602,648 1,343,837 -4.4 0 0 3 58,861 1,226,259

Total 169,628,565 199,875,639 200,270,826 196,668,687 164,986,745 2.8 2 645 38,447 49,119,475 120,469,996

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  2,306 1,998 587 2,316 2,225 3.6 0 0 2 415 1,890

Foreign exchange** 2,105 3,130 4,569 2,860 1,813 16.1 0 0 5 800 1,300

Equity** -43 1,444 1,727 1,624 1,648 -102.6 0 0 3 -131 85

Commodity & other (including credit derivatives)** -202 487 501 882 145 N/M 0 0 0 -334 132

Total trading revenues** 4,166 7,059 7,385 7,683 5,831 -28.6 0 0 10 749 3,407

Share of Revenue 

Trading revenues to gross revenues (%)** 2.6 4.5 4.8 5.2 4.1 0.0 0.0 0.2 1.6 3.2

Trading revenues to net operating revenues (%)** 10.5 16.7 17.8 20.0 36.0 0.0 0.0 1.1 6.1 12.9

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 735 750 759 758 783 -6.1 9 217 386 114 9

Total assets of institutions reporting derivatives 15,816,482 15,574,878 15,481,221 15,475,559 15,370,173 2.9 680 108,788 1,217,875 5,667,758 8,821,382

Total deposits of institutions reporting derivatives 12,172,698 11,903,873 11,829,384 11,881,099 11,775,231 3.4 575 90,564 969,664 4,359,614 6,752,281

Derivative Contracts by Underlying Risk Exposure 

Interest rate 1,950,705 2,249,555 2,184,811 2,206,558 2,239,391 -12.9 29 11,356 88,286 559,945 1,291,089

Foreign exchange 452,256 468,068 505,117 485,719 500,573 -9.7 0 1 892 29,463 421,900

Equity 14,959 16,125 18,036 16,790 16,031 -6.7 0 0 150 10,284 4,524

Commodity & other 29,448 29,030 29,012 28,371 29,054 1.4 0 0 24 27,967 1,457

Total notional amount 2,447,367 2,762,779 2,736,976 2,737,439 2,785,049 -12.1 29 11,357 89,352 627,659 1,718,969

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.

**** 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 applicaable to banks filing the FFIEC 051 form.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

4th 

Quarter 

2018

3rd 

Quarter

2018

2nd 

Quarter

2018

1st 

Quarter

2018

4th 

Quarter

2017

% 

Change 

17Q4-

18Q4

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 64 64 64 65 67 -4.5 0 6 17 34 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $520,047 $542,310 $560,132 $571,205 $590,211 -11.9 $0 $1,400 $13,468 $90,974 $414,205

Home equity loans 14 15 16 18 20 -30.0 0 0 0 14 0

Credit card receivables 22 24 26 4,781 4,553 -99.5 0 0 0 0 22

Auto loans 3,710 4,415 4,647 8,221 9,770 -62.0 0 0 0 3,710 0

Other consumer loans 1,738 1,806 1,887 2,914 3,052 -43.1 0 0 0 766 972

Commercial and industrial loans 453 360 271 381 380 19.2 0 0 0 0 453

All other loans, leases, and other assets 71,416 68,646 67,948 62,410 60,869 17.3 0 9 10,123 3,133 58,151

Total securitized and sold 543,560 562,500 581,566 649,931 668,855 -18.7 0 0 0 69,758 473,803

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,102 1,228 1,327 1,527 1,716 -35.8 0 0 48 800 254

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

Credit card receivables 0 0 0 392 353 -100.0 0 0 0 0 0

Auto loans 104 114 125 164 147 -29.3 0 0 0 104 0

Other consumer loans 86 85 82 88 86 0.0 0 0 0 0 86

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

All other loans, leases, and other assets 1,208 1,112 1,266 1,194 1,131 6.8 0 0 166 30 1,011

Total credit exposure 2,221 2,301 2,565 3,365 3,431 -35.3 0 0 0 870 1,351

Total unused liquidity commitments provided to institution’s own 

securitizations 213 226 144 143 215 -0.9 0 0 0 34 179

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

1-4 family residential loans 3.6 3.9 3.5 3.2 4.7 0.0 3.3 0.9 2.8 3.8

Home equity loans 8.0 8.9 8.4 9.5 9.7 0.0 0.0 0.0 8.0 0

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

Auto loans 2.6 1.9 1.8 1.6 2.1 0.0 0.0 0.0 2.6 0

Other consumer loans 4.2 4.5 4.7 4.5 4.7 0.0 0.0 0.0 2.8 5.3

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

All other loans, leases, and other assets 0.2 0.2 0.3 0.3 0.5 0.0 0.0 0.6 0.8 0.1

Total loans, leases, and other assets 3.3 3.6 3.2 2.9 4.2 0.0 0.0 0.0 2.5 3.4

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

1-4 family residential loans 1.1 1.1 1.2 1.4 1.6 0.0 1.4 0.8 1.2 1.1

Home equity loans 39.0 40.2 42.6 44.1 45.7 0.0 0.0 0.0 39.0 0

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

Auto loans 0.5 0.4 0.4 0.3 0.4 0.0 0.0 0.0 0.5 0

Other consumer loans 4.3 4.3 6.0 4.3 4.6 0.0 0.0 0.0 2.0 6.1

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

All other loans, leases, and other assets 0.5 0.6 0.7 1.2 1.2 0.0 0.0 1.3 0.2 0.4

Total loans, leases, and other assets 1.0 1.0 1.2 1.4 1.5 0.0 0.0 0.0 0.8 1

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 18.2 13.9 11.4 4.9 11.7 0.0 0.0 0.0 18.2 0

Credit card receivables 9.1 4.2 3.8 0.3 1.2 0.0 0.0 0.0 0.0 9.1

Auto loans 1.4 1.0 0.6 0.4 1.2 0.0 0.0 0.0 1.4 0

Other consumer loans 1.0 0.8 0.6 0.3 1.5 0.0 0.0 0.0 0.8 1.2

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

All other loans, leases, and other assets 1.1 0.4 0.3 0.0 1.7 0.0 0.0 0.3 0.4 1.3

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

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 0 0 0 1,730 2,460 -100.0 0 0 0 0 0

Commercial and industrial loans 427 361 306 426 463 -7.8 0 0 0 0 427

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 470 476 474 463 509 -7.7 13 191 202 56 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 26,279 25,814 24,721 24,532 180,694 -85.5 133 5,007 12,470 6,848 1,821

All other loans, leases, and other assets 116,464 112,296 109,138 106,242 105,171 10.7 0 20 175 38,134 78,135

Total sold and not securitized 142,743 138,110 133,859 130,775 285,865 -50.1 133 5,028 12,645 44,982 79,956

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 7,658 7,929 7,626 7,987 162,172 -95.3 8 523 3,712 2,610 804

All other loans, leases, and other assets 32,793 31,286 30,545 29,602 29,273 12.0 0 20 44 11,072 21,656

Total credit exposure 40,450 39,215 38,171 37,589 191,445 -78.9 8 544 3,756 13,682 22,460

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 0 0 0 0 0 0.0 0 0 0 0 0

Total credit exposure 23,013 24,792 26,570 29,676 32,237 -28.6 0 0 0 1,389 21,624

Total unused liquidity commitments 604 1,313 1,031 1,148 1,259 -52.0 0 0 0 295 309

Other

Assets serviced for others** 6,060,797 5,984,061 5,918,788 6,034,597 5,996,478 1.1 4,175 156,474 302,651 1,531,179 4,066,318

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 17,366 16,898 16,069 15,554 16,909 2.7 0 0 0 0 17,366

Unused liquidity commitments to conduits sponsored by institutions 

 and others 31,491 30,447 30,593 29,497 26,928 16.9 0 0 0 2,537 28,954

Net servicing income (for the quarter) 1,504 2,740 2,812 3,655 2,355 -36.1 7 221 151 825 300

Net securitization income (for the quarter) 65 64 -49 151 131 -50.4 0 1 2 3 59

Total credit exposure to Tier 1 capital (%)*** 3.50 3.60 3.70 4.30 13.90 0.00 0.00 0.00 2.30 6.10

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

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

*** Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above.
2 0 1 9  •  Volume 1 3 • Number 1

14 FDIC QUARTERLY

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

All Insured Institutions Asset Size Distribution

(dollar figures in millions)

Dec 31

2018

Dec 31

2017

Dec 31

2016

Dec 31

2015

% Change 

2017-2018

Less 

Than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

Number of institutions reporting 5,406 5,670 5,913 6,182 -4.7 1,278 3,353 638 128 9

Number of institutions with fiduciary powers 1,685 1,745 1,808 1,857 -3.4 196 1,043 347 90 9

Commercial banks 1,561 1,617 1,674 1,721 -3.5 181 985 302 84 9

Savings institutions 124 128 134 136 -3.1 15 58 45 6 0

Number of institutions exercising fiduciary powers 1,260 1,292 1,345 1,379 -2.5 123 766 281 81 9

Commercial banks 1,162 1,189 1,235 1,271 -2.3 109 720 249 75 9

Savings institutions 98 103 110 108 -4.9 14 46 32 6 0

Number of institutions reporting fiduciary activity 1,196 1,224 1,268 1,298 -2.3 116 718 274 79 9

Commercial banks 1,103 1,127 1,166 1,197 -2.1 102 676 243 73 9

Savings institutions 93 97 102 101 -4.1 14 42 31 6 0

Fiduciary and related assets - managed assets 

Personal trust and agency accounts 630,187 684,836 633,050 632,459 -8.0 17,026 51,153 71,258 255,961 234,788

Noninterest-bearing deposits 8,918 9,124 9,628 10,627 -2.3 18 787 310 470 7,332

Interest-bearing deposits 76,273 70,383 74,420 79,039 8.4 187 3,982 7,788 15,489 48,827

U.S. Treasury and U.S. Government agency obligations 124,665 109,513 105,921 84,517 13.8 2,054 4,836 18,052 46,863 52,858

State, county and municipal obligations 234,996 220,542 201,762 196,308 6.6 5,422 11,671 18,637 91,746 107,520

Money market mutual funds 123,035 99,955 102,669 106,900 23.1 2,802 10,022 13,474 47,165 49,572

Other short-term obligations 135,186 151,815 149,248 162,047 -11.0 61 78 1,051 93,021 40,975

Other notes and bonds 287,074 270,784 243,491 171,842 6.0 9,429 6,907 12,985 184,634 73,118

Common and preferred stocks 2,969,887 3,324,681 2,906,250 2,669,473 -10.7 45,925 168,305 164,829 1,723,904 866,924

Real estate mortgages 2,087 1,884 2,069 1,994 10.8 321 177 432 727 430

Real estate 49,713 47,896 49,073 50,935 3.8 1,019 7,011 6,791 14,792 20,099

Miscellaneous assets 107,446 121,726 114,175 117,442 -11.7 1,575 7,374 13,198 46,733 38,565

Employee benefit and retirement-related trust and 

agency accounts:

Employee benefit - defined contribution 395,295 429,241 397,432 342,688 -7.9 1,374 6,318 13,777 323,584 50,242

Employee benefit - defined benefit 508,367 585,263 646,896 551,396 -13.1 2,904 3,862 13,274 434,152 54,174

Other employee benefit and retirement-related 

 accounts 339,942 373,447 312,538 290,760 -9.0 4,959 52,257 24,955 135,698 122,074

Corporate trust and agency accounts 16,091 19,896 19,809 19,444 -19.1 0 778 6,990 3,978 4,344

Investment management and investment advisory 

agency accounts 1,837,545 1,935,353 1,619,342 1,444,009 -5.1 40,152 95,534 112,078 947,375 642,406

Other fiduciary accounts 391,851 400,267 329,641 370,369 -2.1 2,399 11,246 15,215 164,797 198,194

Total managed fiduciary accounts: 

Assets 4,119,279 4,428,303 3,958,707 3,651,125 -7.0 68,814 221,149 257,548 2,265,546 1,306,222

Number of accounts 1,853,804 1,839,481 1,755,682 1,690,474 0.8 132,409 390,660 310,619 523,194 496,922

Fiduciary and related assets - nonmanaged assets 

Personal trust and agency accounts 301,478 279,563 259,844 275,280 7.8 7,053 20,930 27,208 154,274 92,013

Employee benefit and retirement-related trust and 

agency accounts: 

Employee benefit - defined contribution 2,152,841 2,331,971 2,111,453 2,035,579 -7.7 116,895 40,927 43,355 1,382,421 569,242

Employee benefit - defined benefit 4,432,203 4,659,295 4,187,669 4,169,033 -4.9 13,370 24,264 11,788 3,458,037 924,744

Other employee benefit and retirement-related accounts 1,489,431 1,627,818 1,304,246 1,303,116 -8.5 16,411 18,936 16,726 1,205,157 232,201

Corporate trust and agency accounts 3,338,048 3,350,526 2,593,482 2,657,963 -0.4 12 6,740 301,756 280,662 2,748,878

Other fiduciary accounts 3,471,409 3,655,900 3,249,875 3,035,011 -5.0 6,998 39,115 30,710 1,758,919 1,635,666

Total nonmanaged fiduciary accounts: 

Assets 15,185,410 15,905,073 13,706,569 13,475,981 -4.5 160,738 150,913 431,544 8,239,470 6,202,745

Number of accounts 3,911,491 3,849,691 3,930,084 3,807,875 1.6 1,065,384 342,806 182,371 1,664,437 656,493

Custody and safekeeping accounts: 

Assets 96,313,038 97,546,110 85,353,590 81,322,476 -1.3 323,129 893,906 903,115 31,687,411 62,505,478

Number of accounts 11,689,806 9,270,960 8,567,321 8,289,877 26.1 3,165,993 4,940,179 91,942 2,147,843 1,343,849

Fiduciary and related services income 

Personal trust and agency accounts 4,749 4,661 4,513 4,706 1.9 144 239 511 1,910 1,945

Retirement-related trust and agency accounts: 

Employee benefit - defined contribution 1,372 1,337 1,230 1,200 2.6 22 52 179 638 481

Employee benefit - defined benefit 1,503 1,508 1,415 1,390 -0.3 10 19 30 1,009 434

Other employee benefit and retirement-related accounts 2,117 1,911 1,654 1,519 10.8 57 516 259 739 545

Corporate trust and agency accounts 1,727 1,720 1,684 1,469 0.4 0 14 306 406 1,001

Investment management agency accounts 9,162 8,510 7,769 7,451 7.7 224 734 865 3,294 4,045

Other fiduciary accounts 823 811 764 684 1.5 4 3 7 403 405

Custody and safekeeping accounts 14,919 14,403 13,372 13,358 3.6 16 603 268 5,595 8,436

Other fiduciary and related services income 983 916 841 978 7.3 16 89 121 284 473

Total gross fiduciary and related services income 37,525 35,871 33,405 32,889 4.6 495 2,378 2,605 14,280 17,766

Less: Expenses 35,126 33,144 30,649 30,776 6.0 341 1,813 2,005 15,104 15,863

Less: Net losses from fiduciary and related services 290 283 208 367 2.5 0 3 3 92 193

Plus: Intracompany income credits for fiduciary and 

 related services 9,306 7,539 5,787 4,962 23.4 2 6 340 4,739 4,218

Net fiduciary and related services income 11,179 9,825 8,170 6,573 13.8 154 457 850 3,789 5,929

Collective investment funds and common trust funds 

(market value) 

Domestic equity funds 615,673 718,199 636,516 558,173 -14.3 5,874 219 15,871 458,276 135,432

International/global equity funds 202,917 230,397 186,627 188,974 -11.9 1,686 5,709 3,611 136,355 55,555

Stock/bond blend funds 148,831 141,328 142,755 137,835 5.3 2,292 248 6,053 84,971 55,266

Taxable bond funds 125,119 148,520 149,992 146,148 -15.8 763 1,632 2,375 3,387 116,962

Municipal bond funds 2,004 3,001 3,291 3,924 -33.2 0 0 42 939 1,023

Short-term investments/money market funds 143,955 154,093 161,565 145,387 -6.6 3,239 0 0 82,261 58,455

Specialty/other funds 58,833 56,774 56,067 52,694 3.6 0 282 5,819 2,303 50,430

Total collective investment funds 1,302,766 1,452,312 1,336,812 1,233,135 -10.3 13,911 9,139 35,150 771,443 473,123
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 

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

banks designated during the previous quarter.

Net Income Climbs $2.7 Billion From a Year Earlier on Lower Income Taxes and Higher Net Interest Income

Loan and Lease Balances Grow 6.5 Percent Year Over Year

Net Interest Margin Expands to 3.78 Percent From a Year Earlier

Asset Quality Improves as Noncurrent and Net Charge-Off Rates Decline

Community Banks Report 

$6.8 Billion in Net Income 

During Fourth Quarter

Results from 4,979 FDIC-insured community banks reflected an increase in fourth quarter 

net income of $2.7 billion (65.1 percent) from a year earlier to $6.8 billion. Lower income tax 

expense and higher net interest income contributed most to the improvement in earnings. 

Normalizing net income from fourth quarter 2017 and fourth quarter 2018 using the average 

tax rate for community banks before the 2017 tax law change, quarterly net income would 

have been $6.1 billion, 11.2 percent higher than the $5.4 billion reported in fourth quarter 

2017.1 Community banks earned a pretax return on assets (ROA) of 1.40 percent, up 10 basis 

points from the year-ago quarter and 25 basis points below that of noncommunity banks.

Full-Year Net Income 

Climbs $5.9 Billion

Net income totaled $26.1 billion during 2018, up $5.9 billion (29.4 percent) compared with 

2017. Only 3.41 percent of community banks were unprofitable in 2018, the lowest percentage of unprofitable community banks on record. A reduction in income tax expense of 

$2.9 billion (37.1 percent) contributed most to the improvement in earnings. Normalizing 

net income from 2017 and 2018 using the average tax rate for community banks before the 

new tax law, net income would have been $24.1 billion—10.7 percent higher than 2017.2

The annual pretax ROA increased to 1.35 percent, up 7 basis points from a year earlier. An 

increase in net interest income of $5.8 billion (8.3 percent) offset an increase in noninterest 

expense of $3 billion (5.3 percent) year over year. An uptick in salary and benefit expenses 

of $1.9 billion (5.9 percent) drove the increase in noninterest expense. However, the ratio of 

noninterest expenses to average assets of 2.75 percent is at its lowest level since 1989.

Contributors to the Year-Over-Year Change in Income 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Positive Factor Negative Factor

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

$2.67 $1.41 -$0.09 $0.02 $0.54 -$0.09 -$1.79

+65% +8% + -10% 0% +4% -572% -62%

Chart 1

Source: FDIC.

Net Interest Margin

Percent 

Community Banks (3.78)

Industry (3.48)

3.00

3.25

3.50

3.75

4.00

4.25

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 2

1 This estimate of quarterly net income adjusts fourth quarters 2017 and 2018 by applying the average quarterly tax rate at 

community banks between fourth quarter 2011 and third quarter 2017 to income before taxes and discontinued operations. 

2 This estimate of full-year net income adjusts 2017 and 2018 by applying the average annual tax rate between 2011 and 2016 to 

income before taxes and discontinued operations.
2 0 1 9  •  Volume 1 3 • Number 1

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions Change 4Q 2018 vs. 4Q 2017

Change 4Q 2018 vs. 3Q 2018

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

C&I

Loans

1–4 Family

Residential

RE

C&D

Loans

Agricultural

Production

Loans

CRE &

C&D

C&I

Loans

-5

0

5

10

15

20

25

30

35

40

34.9

17.0

9.4

18.0

1.1

7.7 9.9 8.6

6.4

4.0 2.5

-0.9 -0.9

1.3

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Share of Loan Portfolio Noncurrent

Percent

0

2

4

6

8

10

12

14

16

C&D Loans

Nonfarm Nonresidential RE

1–4 Family RE

C&I Loans 

Credit Cards

Home Equity

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 4

Community Banks Increase 

Net Operating Revenue by 

6.2 Percent

Net operating revenue rose $1.4 billion (6.2 percent) from a year ago primarily because of an 

increase in net interest income of $1.4 billion (7.7 percent). An increase in other real estate 

loan income (up $1.3 billion or 14.6 percent) contributed most to the increase in net interest 

income.3 Noninterest income of $4.7 billion included an increase in other noninterest income 

of $130.1 million (6.7 percent), which helped offset a 17.4 percent decline in income from loan 

sales. More than half of community banks (54 percent) reported higher noninterest income 

compared with fourth quarter 2017. An increase in earning asset yields outpaced an increase in 

average funding costs, supporting a 12 basis point expansion of the average net interest margin 

(NIM) to 3.78 percent. This ratio was 34 basis points above that of noncommunity banks.

Noninterest Expense Rises 

as Salary Expense Meets 

Increase in Average Assets

Noninterest expense of $15.6 billion was $540.2 million (3.6 percent) higher than the year-ago 

quarter. In contrast, noncommunity banks achieved a slight reduction in noninterest expense 

(0.27 percent) during the same period. Payroll expenses of $8.9 billion (up 4.7 percent) rose 

in tandem with the number of full-time employees (up 0.8 percent) and the increase in quarterly average total assets per employee (up 3.9 percent). More than two-thirds of community 

banks (67.2 percent) reported higher noninterest expense compared with one year ago.

Loans and Leases Increase 

1.5 Percent During 

Fourth Quarter 2018

Community banks raised loan and lease volume $24.2 billion (up 1.5 percent) during the 

fourth quarter. Increases in nonfarm nonresidential loans of $8.6 billion (1.8 percent), 

commercial and industrial (C&I) loans of $6.4 billion (3 percent), 1–4 family residential 

real estate loans of $4 billion (1 percent), and construction and development (C&D) loans 

of $2.6 billion (2.3 percent) accounted for almost 90 percent of quarterly loan growth. 

Unfunded commitments increased $2.8 billion (0.9 percent) during the quarter. Quarterly 

loan growth lifted the percentage of net loans and leases to total assets to 70.7 percent—

the highest ratio on record.

Annual loan and lease growth totaled $98.5 billion (up 6.5 percent) and brought yearend loan and lease volume to $1.6 trillion. Increases in nonfarm nonresidential loans 

of $34.9 billion (7.8 percent), 1–4 family residential real estate loans of $18.3 billion 

(4.3 percent), C&I loans of $16.9 billion (8.3 percent), C&D loans of $9.4 billion (9 percent), 

and multifamily loans of $9.2 billion (8.2 percent) contributed most to annual loan growth. 

Community banks made commitments to fund an additional $24.6 billion (up 8.6 percent) 

in loans during 2018. C&I loan commitments increased $9.9 billion (10.7 percent), which 

exceeded growth in commitments for C&D loans of $7.4 billion (8.7 percent).

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

nonresidential loans.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Small Loans to Businesses 

Grow 3.1 Percent Compared 

With a Year Ago

Community banks extended an additional $9 billion in small loans to businesses during 

2018, lifting the total to $299.3 billion—3.1 percent higher than the year earlier. C&I loan 

growth of 4.5 percent and nonfarm nonresidential loan growth of 2.8 percent contributed 

most to the growth in small loans to businesses. Community banks hold 42.1 percent of the 

industry’s small loans to businesses.

Noncurrent Rate 

Remains Low

The rate of noncurrent loans declined 2 basis points during the quarter and 8 basis points 

from a year ago to 0.78 percent—the lowest it has been since 2007. The noncurrent rate for 

all major loan categories except 1–4 family residential loans declined during the quarter. 

The noncurrent rate for 1–4 family residential loans increased 1 basis point to 1.03 percent. 

The noncurrent rate for C&D loans (down 9 basis points to 0.59 percent) and for C&I loans 

(down 8 basis points to 0.91 percent) decreased the most among major loan categories.4 The 

1.03 percent noncurrent rate for 1–4 family loans is the highest among major loan categories. 

The noncurrent rate for multifamily loans, which account for 7.5 percent of total loans, is at 

its lowest level since fourth quarter 1993. The noncurrent rate for farm loans of 1.11 percent 

increased 23 basis points since the year-ago quarter, continuing a year-over-year climb that 

began in fourth quarter 2016.

Net Charge-Off Rate 

Declines 8 Basis Points 

From a Year Earlier

The net charge-off rate for total loans declined 8 basis points to 0.14 percent compared with 

fourth quarter 2017. This rate was 43 basis points below that of noncommunity banks. The 

net charge-off rate declined for all major loan categories since the year-ago quarter. The net 

charge-off rate for C&I loans registered the greatest annual improvement (down 29 basis 

points to 0.36 percent year over year) despite a 9 basis point increase during the fourth 

quarter. The net charge-off rate for farm loans, which make up 7.9 percent of total loans 

and leases, increased 2 basis points since the year-ago quarter and 8 basis points during the 

quarter to 0.15 percent.

Risk-Based Capital Ratios 

Show Slight Decline

Total equity capital increased $6.7 billion (2.7 percent) during the fourth quarter. The total 

equity capital ratio increased by 17 basis points to 11.41 percent, while the leverage capital 

ratio increased 4 basis points to 11.09 percent. The total risk-based capital ratio declined 

3 basis points to 15.76 percent, and the tier 1 risk-based capital ratio declined 3 basis points 

to 14.72 percent.

Total Deposits Increase 

1.7 Percent During the 

Quarter

Total Deposits increased $30.2 billion to $1.9 trillion during the fourth quarter. This growth 

included an increase in domestic interest-bearing deposits of $26.1 billion (1.8 percent) and 

an increase in domestic noninterest-bearing deposits of $4 billion (1 percent).

One New Bank Opened in 

Fourth Quarter 2018

The number of FDIC-insured community banks declined by 65 to 4,979 during the quarter, 

including 64 mergers and consolidations. Five community banks voluntarily liquidated and 

four became noncommunity banks. Five noncommunity banks transitioned to community 

banks. One new community bank charter was opened during the quarter. No community 

banks failed.

Author:

Erica Jill Tholmer

Senior Financial Analyst

Division of Insurance and Research

4 Major loan categories include C&D, nonfarm nonresidential, C&I, and 1–4 family residential. 
2 0 1 9  •  Volume 1 3 • Number 1

18 FDIC QUARTERLY

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

2018 2017 2016 2015 2014 2013 2012

Return on assets (%) 1.19 0.96 0.99 0.99 0.93 0.90 0.83

Return on equity (%) 10.60 8.65 8.81 8.85 8.45 8.27 7.68

Core capital (leverage) ratio (%) 11.09 10.80 10.69 10.67 10.57 10.43 10.18

Noncurrent assets plus other real estate owned to assets (%) 0.69 0.78 0.94 1.07 1.34 1.73 2.27

Net charge-offs to loans (%) 0.12 0.16 0.16 0.15 0.21 0.32 0.58

Asset growth rate (%) 2.30 1.17 2.97 2.71 2.21 0.39 2.25

Net interest margin (%) 3.72 3.62 3.57 3.57 3.61 3.59 3.67

Net operating income growth (%) 28.35 0.14 2.42 9.54 4.81 14.64 56.17

Number of institutions reporting 4,979 5,228 5,461 5,735 6,037 6,307 6,542

Percentage of unprofitable institutions (%) 3.41 5.74 4.65 5.02 6.44 8.40 11.14

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

(dollar figures in millions)  4th Quarter

2018

3rd Quarter

2018

4th Quarter

2017

%Change 

17Q4-18Q4

Number of institutions reporting 4,979 5,044 5,228 -4.8

Total employees (full-time equivalent) 412,579 411,511 417,393 -1.2

CONDITION DATA

Total assets $2,259,279 $2,222,307 $2,208,517 2.3

Loans secured by real estate 1,238,885 1,221,888 1,198,837 3.3

 1-4 Family residential mortgages 399,812 396,222 396,219 0.9

 Nonfarm nonresidential 481,742 474,099 459,353 4.9

 Construction and development 113,127 110,530 107,075 5.7

 Home equity lines 48,270 48,665 50,038 -3.5

Commercial & industrial loans 221,437 210,573 205,711 7.6

Loans to individuals 63,627 63,184 61,988 2.6

 Credit cards 1,908 1,801 2,039 -6.4

Farm loans 52,756 53,722 51,664 2.1

Other loans & leases 40,153 39,749 38,918 3.2

Less: Unearned income 651 656 706 -7.8

Total loans & leases 1,616,206 1,588,461 1,556,411 3.8

Less: Reserve for losses 18,431 18,271 18,123 1.7

Net loans and leases 1,597,775 1,570,190 1,538,289 3.9

Securities 396,519 396,654 409,786 -3.2

Other real estate owned 3,051 3,267 3,921 -22.2

Goodwill and other intangibles 17,497 15,600 13,700 27.7

All other assets 244,438 236,596 242,821 0.7

Total liabilities and capital 2,259,279 2,222,307 2,208,517 2.3

Deposits 1,854,566 1,823,189 1,809,803 2.5

 Domestic office deposits 1,853,858 1,822,598 1,809,313 2.5

 Foreign office deposits 708 591 490 44.7

 Brokered deposits 77,561 73,120 91,087 -14.8

Estimated insured deposits 1,344,000 1,331,166 1,331,270 1.0

Other borrowed funds 128,889 131,605 136,156 -5.3

Subordinated debt 791 624 864 -8.5

All other liabilities 17,060 16,997 15,951 7.0

Total equity capital (includes minority interests) 257,973 249,892 245,744 5.0

 Bank equity capital 257,894 249,783 245,621 5.0

Loans and leases 30-89 days past due 8,650 7,778 8,376 3.3

Noncurrent loans and leases 12,589 12,747 13,321 -5.5

Restructured loans and leases 6,390 6,496 7,032 -9.1

Mortgage-backed securities 174,441 174,560 174,409 0.0

Earning assets 2,104,202 2,073,075 2,058,450 2.2

FHLB Advances 105,149 109,266 111,892 -6.0

Unused loan commitments 310,580 306,319 292,389 6.2

Trust assets 303,344 296,616 347,351 -12.7

Assets securitized and sold 13,060 14,891 24,076 -45.8

Notional amount of derivatives 74,753 75,823 67,382 10.9

INCOME DATA

Full Year

 2018

Full Year

 2017 %Change

4th Quarter 

2018

4th Quarter 

2017

%Change 

17Q4-18Q4

Total interest income $90,343 $82,472 9.5 $24,063 $21,557 11.6

Total interest expense 14,545 10,348 40.6 4,385 2,859 53.4

Net interest income 75,798 72,123 5.1 19,678 18,698 5.2

Provision for loan and lease losses 2,901 3,157 -8.1 766 869 -11.8

Total noninterest income 18,367 18,796 -2.3 4,655 4,812 -3.3

Total noninterest expense 60,227 59,319 1.5 15,637 15,529 0.7

Securities gains (losses) 40 353 -88.8 -77 25 N/M

Applicable income taxes 4,960 8,199 -39.5 1,083 3,063 -64.6

Extraordinary gains, net* 3 2 N/M 0 -2 N/M

Total net income (includes minority interests) 26,120 20,599 26.8 6,769 4,071 66.3

 Bank net income 26,109 20,576 26.9 6,768 4,066 66.4

Net charge-offs 1,916 2,408 -20.4 570 842 -32.3

Cash dividends 11,471 10,016 14.5 3,572 3,037 17.6

Retained earnings 14,638 10,560 38.6 3,196 1,030 210.4

Net operating income 26,091 20,328 28.3 6,839 4,050 68.9

* See Notes to Users for explanation. N/M - Not Meaningful
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  4th Quarter 

2018

3rd Quarter 

2018

4th Quarter

2017

%Change 

17Q4-18Q4

Number of institutions reporting 4,979 4,978 4,973 0.1

Total employees (full-time equivalent) 412,579 412,264 409,187 0.8

CONDITION DATA

Total assets $2,259,279 $2,223,723 $2,154,822 4.8

Loans secured by real estate 1,238,885 1,220,687 1,163,101 6.5

 1-4 Family residential mortgages 399,812 395,854 381,853 4.7

 Nonfarm nonresidential 481,742 473,187 446,881 7.8

 Construction and development 113,127 110,603 103,751 9.0

 Home equity lines 48,270 48,062 47,951 0.7

Commercial & industrial loans 221,437 215,045 204,486 8.3

Loans to individuals 63,627 63,377 60,289 5.5

 Credit cards 1,908 1,858 1,917 -0.5

Farm loans 52,756 53,626 51,699 2.0

Other loans & leases 40,153 39,975 38,791 3.5

Less: Unearned income 651 664 682 -4.5

Total loans & leases 1,616,206 1,592,045 1,517,686 6.5

Less: Reserve for losses 18,431 18,327 17,781 3.7

Net loans and leases 1,597,775 1,573,718 1,499,905 6.5

Securities 396,519 393,707 399,835 -0.8

Other real estate owned 3,051 3,253 3,817 -20.1

Goodwill and other intangibles 17,497 16,880 14,845 17.9

All other assets 244,438 236,165 236,420 3.4

Total liabilities and capital 2,259,279 2,223,723 2,154,822 4.8

Deposits 1,854,566 1,824,344 1,768,343 4.9

 Domestic office deposits 1,853,858 1,823,751 1,767,831 4.9

 Foreign office deposits 708 592 512 38.2

 Brokered deposits 77,561 76,114 89,996 -13.8

Estimated insured deposits 1,344,000 1,329,936 1,300,565 3.3

Other borrowed funds 128,889 129,950 128,149 0.6

Subordinated debt 791 797 771 2.6

All other liabilities 17,060 17,343 15,807 7.9

Total equity capital (includes minority interests) 257,973 251,290 241,752 6.7

 Bank equity capital 257,894 251,179 241,644 6.7

Loans and leases 30-89 days past due 8,650 7,798 8,267 4.6

Noncurrent loans and leases 12,589 12,871 13,186 -4.5

Restructured loans and leases 6,390 6,453 6,867 -7.0

Mortgage-backed securities 174,441 172,299 169,951 2.6

Earning assets 2,104,202 2,072,485 2,006,245 4.9

FHLB Advances 105,149 107,054 103,642 1.5

Unused loan commitments 310,580 307,824 286,014 8.6

Trust assets 303,344 282,870 307,030 -1.2

Assets securitized and sold 13,060 14,891 18,999 -31.3

Notional amount of derivatives 74,753 76,418 65,559 14.0

INCOME DATA

Full Year

 2018

Full Year

 2017 %Change

4th Quarter 

2018

4th Quarter 

2017

%Change 

17Q4-18Q4

Total interest income $90,343 $79,875 13.1 $24,063 $21,016 14.5

Total interest expense 14,545 9,871 47.3 4,385 2,747 59.6

Net interest income 75,798 70,004 8.3 19,678 18,269 7.7

Provision for loan and lease losses 2,901 3,085 -6.0 766 855 -10.4

Total noninterest income 18,367 18,031 1.9 4,655 4,638 0.4

Total noninterest expense 60,227 57,217 5.3 15,637 15,096 3.6

Securities gains (losses) 40 340 -88.4 -77 16 N/M

Applicable income taxes 4,960 7,883 -37.1 1,083 2,868 -62.2

Extraordinary gains, net* 3 2 N/M 0 -2 N/M

Total net income (includes minority interests) 26,120 20,192 29.4 6,769 4,102 65.0

 Bank net income 26,109 20,178 29.4 6,768 4,098 65.1

Net charge-offs 1,916 2,330 -17.8 570 822 -30.7

Cash dividends 11,471 9,702 18.2 3,572 2,874 24.3

Retained earnings 14,638 10,475 39.7 3,196 1,224 161.0

Net operating income 26,091 19,932 30.9 6,839 4,087 67.3

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 9  •  Volume 1 3 • Number 1

20 FDIC QUARTERLY

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

Fourth Quarter 2018

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 4,979 571 575 1,094 1,325 1,103 311

Total employees (full-time equivalent) 412,579 85,663 46,852 86,721 71,552 88,892 32,899

CONDITION DATA

Total assets $2,259,279 $626,187 $232,592 $410,281 $369,497 $415,988 $204,734

Loans secured by real estate 1,238,885 392,296 128,254 213,810 181,774 209,124 113,628

 1-4 Family residential mortgages 399,812 142,274 40,051 70,717 54,008 64,860 27,902

 Nonfarm nonresidential 481,742 141,730 56,388 80,811 61,568 87,402 53,842

 Construction and development 113,127 25,883 14,363 16,604 16,224 29,828 10,225

 Home equity lines 48,270 16,009 6,523 10,280 5,430 5,009 5,019

Commercial & industrial loans 221,437 54,852 20,046 47,003 38,027 42,511 18,997

Loans to individuals 63,627 16,196 6,450 12,518 10,922 12,582 4,959

 Credit cards 1,908 422 154 290 587 236 220

Farm loans 52,756 640 1,339 8,859 29,683 9,406 2,829

Other loans & leases 40,153 11,673 3,493 7,787 6,813 6,572 3,816

Less: Unearned income 651 178 98 48 103 125 99

Total loans & leases 1,616,206 475,478 159,483 289,929 267,116 280,070 144,130

Less: Reserve for losses 18,431 4,645 1,788 3,319 3,473 3,408 1,798

Net loans and leases 1,597,775 470,833 157,695 286,610 263,643 276,662 142,332

Securities 396,519 95,974 43,114 74,552 64,853 83,617 34,407

Other real estate owned 3,051 551 617 565 511 647 159

Goodwill and other intangibles 17,497 5,130 1,380 4,216 2,342 2,993 1,437

All other assets 244,438 53,699 29,786 44,338 38,148 52,068 26,399

Total liabilities and capital 2,259,279 626,187 232,592 410,281 369,497 415,988 204,734

Deposits 1,854,566 494,597 194,751 336,960 305,977 351,756 170,524

 Domestic office deposits 1,853,858 494,041 194,750 336,863 305,977 351,756 170,470

 Foreign office deposits 708 556 1 97 0 0 54

 Brokered deposits 77,561 25,531 5,103 14,159 14,077 9,966 8,724

 Estimated insured deposits 1,344,000 345,482 141,764 260,045 235,487 248,468 112,753

Other borrowed funds 128,889 53,385 9,989 22,469 20,206 14,219 8,622

Subordinated debt 791 499 15 209 10 42 15

All other liabilities 17,060 5,880 1,592 3,231 2,215 2,434 1,709

Total equity capital (includes minority interests) 257,973 71,826 26,245 47,412 41,089 47,536 23,864

 Bank equity capital 257,894 71,792 26,241 47,393 41,088 47,516 23,864

Loans and leases 30-89 days past due 8,650 2,114 1,106 1,612 1,397 1,994 427

Noncurrent loans and leases 12,589 3,932 1,239 2,405 1,905 2,422 686

Restructured loans and leases 6,390 2,112 660 1,444 930 837 406

Mortgage-backed securities 174,441 54,035 19,348 29,513 22,411 32,131 17,004

Earning assets 2,104,202 587,620 215,518 379,733 344,060 385,236 192,035

FHLB Advances 105,149 47,513 8,305 16,572 15,331 11,174 6,255

Unused loan commitments 310,580 84,011 28,223 58,623 55,130 53,624 30,969

Trust assets 303,344 73,534 11,992 69,688 93,121 44,970 10,039

Assets securitized and sold 13,060 7,499 72 1,523 2,650 903 413

Notional amount of derivatives 74,753 35,022 6,066 16,527 9,581 5,225 2,331

INCOME DATA

Total interest income $24,063 $6,383 $2,523 $4,261 $3,960 $4,638 $2,299

Total interest expense 4,385 1,436 415 737 736 737 325

Net interest income 19,678 4,947 2,108 3,524 3,224 3,901 1,974

Provision for loan and lease losses 766 181 78 120 149 176 61

Total noninterest income 4,655 1,003 434 1,254 754 872 337

Total noninterest expense 15,637 3,806 1,753 3,035 2,545 3,108 1,389

Securities gains (losses) -77 -14 -17 -11 -8 -17 -9

Applicable income taxes 1,083 327 66 254 152 124 160

Extraordinary gains, net** 0 -1 0 0 0 0 0

Total net income (includes minority interests) 6,769 1,620 628 1,357 1,123 1,348 693

 Bank net income 6,768 1,619 628 1,357 1,123 1,349 693

Net charge-offs 570 112 63 109 115 138 33

Cash dividends 3,572 444 305 894 726 872 331

Retained earnings 3,196 1,174 323 463 398 477 361

Net operating income 6,839 1,633 642 1,368 1,131 1,364 701

* See Table V-A for explanation.

** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Fourth Quarter 2018, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Fourth Quarter 2018, Geographic Regions*

 4th Quarter 

2018

3rd Quarter 

2018 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.62 4.49 4.39 4.73 4.53 4.65 4.86 4.84

Cost of funding earning assets 0.84 0.75 0.99 0.78 0.78 0.86 0.77 0.68

Net interest margin 3.78 3.74 3.40 3.95 3.75 3.79 4.09 4.15

Noninterest income to assets 0.83 0.84 0.65 0.75 1.23 0.83 0.85 0.67

Noninterest expense to assets 2.80 2.73 2.45 3.04 2.99 2.79 3.02 2.74

Loan and lease loss provision to assets 0.14 0.11 0.12 0.14 0.12 0.16 0.17 0.12

Net operating income to assets 1.22 1.24 1.05 1.11 1.35 1.24 1.32 1.38

Pretax return on assets 1.40 1.48 1.25 1.20 1.59 1.40 1.43 1.68

Return on assets 1.21 1.24 1.04 1.09 1.34 1.23 1.31 1.37

Return on equity 10.66 11.05 9.15 9.73 11.62 11.07 11.57 11.79

Net charge-offs to loans and leases 0.14 0.10 0.10 0.16 0.15 0.17 0.20 0.09

Loan and lease loss provision to net charge-offs 134.49 152.03 161.39 123.83 110.64 130.05 127.65 186.69

Efficiency ratio 63.89 62.71 63.64 68.39 63.12 63.56 64.81 59.80

Net interest income to operating revenue 80.87 80.53 83.15 82.92 73.75 81.05 81.73 85.40

% of unprofitable institutions 6.91 3.79 5.43 8.35 6.49 7.40 7.07 5.79

% of institutions with earnings gains 73.11 71.57 84.76 77.74 71.21 66.72 71.80 81.67

Table V-B. Full Year 2018, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks Full Year 2018, Geographic Regions*

Full Year

 2018

Full Year

 2017 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.43 4.14 4.23 4.53 4.34 4.46 4.65 4.63

Cost of funding earning assets 0.71 0.52 0.85 0.65 0.66 0.73 0.64 0.58

Net interest margin 3.72 3.62 3.38 3.87 3.68 3.73 4.00 4.05

Noninterest income to assets 0.84 0.88 0.64 0.78 1.21 0.83 0.88 0.69

Noninterest expense to assets 2.75 2.77 2.45 2.99 2.96 2.70 2.95 2.71

Loan and lease loss provision to assets 0.13 0.15 0.14 0.12 0.11 0.15 0.15 0.12

Net operating income to assets 1.19 0.95 0.98 1.07 1.29 1.28 1.34 1.32

Pretax return on assets 1.42 1.35 1.25 1.27 1.55 1.46 1.49 1.65

Return on assets 1.19 0.96 0.99 1.07 1.29 1.28 1.33 1.32

Return on equity 10.60 8.65 8.76 9.66 11.27 11.57 11.90 11.51

Net charge-offs to loans and leases 0.12 0.16 0.13 0.11 0.10 0.12 0.16 0.09

Loan and lease loss provision to net charge-offs 151.41 131.12 138.74 151.29 150.74 164.99 144.41 204.98

Efficiency ratio 63.61 64.86 63.78 67.87 63.63 62.31 63.87 60.13

Net interest income to operating revenue 80.50 79.33 83.15 82.05 73.88 80.72 80.79 84.61

% of unprofitable institutions 3.41 5.74 4.03 5.57 3.47 2.34 2.72 5.14

% of institutions with earnings gains 78.93 55.16 86.34 83.83 75.69 75.17 78.88 83.92

* See Table V-A for explanation.
2 0 1 9  •  Volume 1 3 • Number 1

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

December 31, 2018

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 0.50 0.42 0.64 0.58 0.49 0.65 0.21

Construction and development 0.39 0.43 0.34 0.43 0.40 0.43 0.18

Nonfarm nonresidential 0.30 0.28 0.33 0.35 0.29 0.39 0.14

Multifamily residential real estate 0.14 0.11 0.25 0.21 0.21 0.13 0.02

Home equity loans 0.48 0.53 0.60 0.44 0.29 0.58 0.36

Other 1-4 family residential 0.86 0.68 1.26 1.01 0.73 1.16 0.39

Commercial and industrial loans 0.48 0.29 0.76 0.41 0.53 0.61 0.50

Loans to individuals 1.49 1.64 1.73 0.94 1.07 2.27 1.02

Credit card loans 2.43 2.50 1.40 0.95 3.76 1.54 2.39

Other loans to individuals 1.46 1.61 1.73 0.94 0.92 2.29 0.96

All other loans and leases (including farm) 0.46 0.24 0.33 0.33 0.53 0.57 0.60

Total loans and leases 0.54 0.44 0.69 0.56 0.52 0.71 0.30

Percent of Loans Noncurrent**

All loans secured by real estate 0.77 0.83 0.78 0.89 0.67 0.79 0.40

Construction and development 0.59 0.63 0.72 0.66 0.65 0.44 0.53

Nonfarm nonresidential 0.66 0.73 0.63 0.72 0.63 0.76 0.28

Multifamily residential real estate 0.19 0.18 0.22 0.29 0.14 0.30 0.06

Home equity loans 0.51 0.59 0.52 0.51 0.28 0.48 0.50

Other 1-4 family residential 1.03 1.23 1.01 1.20 0.61 0.99 0.61

Commercial and industrial loans 0.91 1.07 0.75 0.71 0.94 1.05 0.80

Loans to individuals 0.68 0.46 0.72 0.35 0.43 1.56 0.44

Credit card loans 1.19 1.23 0.84 0.53 1.79 0.57 1.31

Other loans to individuals 0.66 0.44 0.71 0.34 0.36 1.58 0.40

All other loans and leases (including farm) 0.70 0.29 0.87 0.74 0.76 0.76 0.82

Total loans and leases 0.78 0.83 0.78 0.83 0.71 0.86 0.48

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.03 0.04 0.04 0.04 0.03 0.03 -0.02

Construction and development 0.00 0.03 0.08 -0.03 -0.02 0.03 -0.16

Nonfarm nonresidential 0.04 0.04 0.03 0.06 0.06 0.03 0.00

Multifamily residential real estate -0.01 0.00 -0.09 -0.03 0.00 0.03 0.00

Home equity loans 0.02 0.04 0.04 0.03 -0.02 0.05 -0.04

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

Commercial and industrial loans 0.38 0.58 0.29 0.27 0.24 0.46 0.25

Loans to individuals 0.95 0.89 0.97 0.46 1.08 1.09 1.67

Credit card loans 6.50 4.17 2.10 1.55 14.89 1.71 3.42

Other loans to individuals 0.77 0.79 0.95 0.43 0.29 1.07 1.59

All other loans and leases (including farm) 0.21 0.13 0.21 0.23 0.18 0.25 0.31

Total loans and leases 0.12 0.13 0.11 0.10 0.12 0.16 0.09

Loans Outstanding (in billions)

All loans secured by real estate $1,238.9 $392.3 $128.3 $213.8 $181.8 $209.1 $113.6

Construction and development 113.1 25.9 14.4 16.6 16.2 29.8 10.2

Nonfarm nonresidential 481.7 141.7 56.4 80.8 61.6 87.4 53.8

Multifamily residential real estate 120.5 63.9 6.5 17.9 11.0 8.1 13.0

Home equity loans 48.3 16.0 6.5 10.3 5.4 5.0 5.0

Other 1-4 family residential 399.8 142.3 40.1 70.7 54.0 64.9 27.9

Commercial and industrial loans 221.4 54.9 20.0 47.0 38.0 42.5 19.0

Loans to individuals 63.6 16.2 6.4 12.5 10.9 12.6 5.0

Credit card loans 1.9 0.4 0.2 0.3 0.6 0.2 0.2

Other loans to individuals 61.7 15.8 6.3 12.2 10.3 12.3 4.7

All other loans and leases (including farm) 92.9 12.3 4.8 16.6 36.5 16.0 6.6

Total loans and leases 1,616.9 475.7 159.6 290.0 267.2 280.2 144.2

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 310,580 84,011 28,223 58,623 55,130 53,624 30,969

Construction and development: 1-4 family residential 25,913 5,456 3,506 3,151 3,325 7,464 3,012

Construction and development: CRE and other 65,595 20,125 6,871 10,996 8,907 13,154 5,542

Commercial and industrial 102,378 27,343 7,458 22,825 17,183 17,504 10,065

* See Table V-A for explanation.

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

FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $2.4 Billion

Insured Deposits Grow by 2.0 Percent

DIF Reserve Ratio Is Unchanged at 1.36 Percent

During the fourth quarter, the Deposit Insurance Fund (DIF) balance increased by 

$2.4 billion to $102.6 billion. Assessment income of $1.4 billion and unrealized gains 

on available-for-sale securities of $756 million were the largest sources of the increase. 

Interest earned on investments of $481 million, a negative provision for insurance losses 

of $236 million, and unrealized gains on postretirement benefits of $32 million also added 

to the fund. Operating expenses of $453 million reduced the fund. No institutions failed 

in 2018.

The deposit insurance assessment base—average consolidated total assets minus average tangible equity—increased by 1.5 percent in the fourth quarter and by 3.0 percent over 

12 months.1,2 Total estimated insured deposits increased by 2.0 percent in the quarter and 

5.1 percent year over year.

The strong growth in insured deposits offset the increase in the fund balance, resulting in 

a DIF reserve ratio of 1.36 percent on December 31, 2018. The reserve ratio was unchanged 

from September 30, 2018, and increased by 6 basis points during 2018.

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. Total credits to be issued among credit 

accruing institutions are estimated to be $764.7 million. Following each quarter that 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

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.
2 0 1 9  •  Volume 1 3 • Number 1

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.20 1.20

1.27 1.30 1.30

1.11 1.13 1.17 1.18

1.24

1.33 1.36 1.36

12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 3/18 6/18 9/18 12/18

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

4th 

Quarter 

2018

3rd 

Quarter 

2018

2nd 

Quarter 

2018

1st 

Quarter 

2018

4th 

Quarter 

2017

3rd 

Quarter 

2017

2nd 

Quarter 

2017

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd 

Quarter 

2016

1st 

Quarter 

2016

4th 

Quarter 

2015

Beginning Fund Balance $100,204 $97,588 $95,072 $92,747 $90,506 $87,588 $84,928 $83,162 $80,704 $77,910 $75,120 $72,600 $70,115

Changes in Fund Balance:

Assessments earned 1,351 2,728 2,598 2,850 2,656 2,568 2,634 2,737 2,688 2,643 2,328 2,328 2,160

Interest earned on 

investment securities 481 433 381 338 305 274 251 227 189 171 164 147 128

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 453 434 445 433 443 404 450 442 437 422 441 415 447

Provision for insurance 

losses -236 -121 -141 -65 -203 -512 -233 765 -332 -566 -627 -43 -930

All other income, 

net of expenses 2 2 3 1 3 1 4 2 3 3 2 5 12

Unrealized gain/(loss) on 

available-for-sale 

securities** 788 -234 -162 -496 -481 -33 -12 7 -317 -167 110 412 -298

Total fund balance change 2,405 2,616 2,516 2,325 2,242 2,918 2,660 1,766 2,457 2,794 2,790 2,520 2,485

Ending Fund Balance 102,609 100,204 97,588 95,072 92,747 90,506 87,588 84,928 83,162 80,704 77,910 75,120 72,600

Percent change from 

 four quarters earlier 10.63 10.72 11.42 11.95 11.53 12.14 12.42 13.06 14.55 15.10 15.27 15.05 15.64

Reserve Ratio (%) 1.36 1.36 1.33 1.30 1.30 1.27 1.24 1.20 1.20 1.18 1.17 1.13 1.11

Estimated Insured 

Deposits 7,522,753 7,377,348 7,355,417 7,335,611 7,158,286 7,102,057 7,050,287 7,081,910 6,917,928 6,817,984 6,674,980 6,662,907 6,519,449

Percent change from 

 four quarters earlier 5.09 3.88 4.33 3.58 3.47 4.17 5.62 6.29 6.11 6.42 5.39 5.19 5.23

Domestic Deposits 12,659,453 12,368,000 12,280,938 12,305,836 12,129,503 11,966,478 11,827,933 11,856,691 11,693,371 11,506,877 11,242,960 11,156,523 10,952,922

Percent change from 

 four quarters earlier 4.37 3.36 3.83 3.79 3.73 3.99 5.20 6.28 6.76 7.56 5.74 5.06 5.21

Assessment Base*** 15,448,329 15,226,833 15,111,345 15,067,584 15,000,564 14,833,521 14,702,320 14,620,247 14,562,532 14,382,384 14,191,382 13,994,033 13,832,910

Percent change from 

 four quarters earlier 2.98 2.65 2.78 3.06 3.01 3.14 3.60 4.47 5.27 5.27 4.43 3.40 3.65

Number of Institutions 

Reporting 5,415 5,486 5,551 5,616 5,679 5,747 5,796 5,865 5,922 5,989 6,067 6,131 6,191

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

12/15 $72,600 $6,519,449

3/16 75,120 6,662,907

6/16 77,910 6,674,980

9/16 80,704 6,817,984

12/16 83,162 6,917,928

3/17 84,928 7,081,910

6/17 87,588 7,050,287

9/17 90,506 7,102,057

12/17 92,747 7,158,286

3/18 95,072 7,335,611

6/18 97,588 7,355,417

9/18 100,204 7,377,348

12/18 102,609 7,522,753

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2018 2017 2016 2015 2014 2013 2012

Problem Institutions

Number of institutions 60 95 123 183 291 467 651

Total assets $48,489 $13,939 $27,624 $46,780 $86,712 $152,687 $232,701

Failed Institutions

Number of institutions 0 8 5 8 18 24 51

Total assets**** $0 $5,082 $277 $6,706 $2,914 $6,044 $11,617

* Quarterly financial statement results are unaudited.

** Includes unrealized postretirement benefit gain (loss).

*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

**** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions)

December 31, 2018

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 4,715 $16,728,219 $11,645,216 $6,704,238

 FDIC-Supervised 3,140 2,589,311 2,061,033 1,405,657

 OCC-Supervised 819 11,318,969 7,612,608 4,232,931

 Federal Reserve-Supervised 756 2,819,939 1,971,575 1,065,651

FDIC-Insured Savings Institutions 691 1,214,904 967,717 778,636

 OCC-Supervised 310 768,695 630,187 519,788

 FDIC-Supervised 343 415,198 312,958 239,078

 Federal Reserve-Supervised 38 31,010 24,573 19,769

Total Commercial Banks and Savings Institutions 5,406 17,943,122 12,612,933 7,482,874

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 91,376 46,520 39,879

Total FDIC-Insured Institutions 5,415 18,034,498 12,659,453 7,522,753

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending September 30, 2018 (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 3,400 61.98 $5,554.4 36.48

3.01 - 6.00 1,428 26.03 8,801.3 57.80

6.01 - 10.00 524 9.55 709.4 4.66

10.01 - 15.00 51 0.93 131.7 0.87

15.01 - 20.00 70 1.28 15.3 0.10

20.01 - 25.00 7 0.13 1.9 0.01

> 25.00 6 0.11 12.8 0.08

* 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 9  •  Volume 1 3 • Number 1

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call Report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://www.fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered 

community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), 

problem institutions, failed institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository insti1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

tutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions 

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports (TFR) submitted 

by all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

which is the sum of the individual numerator values divided by the 

sum of individual denominator values. All asset and liability figures 

used in calculating performance ratios represent average amounts for 

the period (beginning-of-period amount plus end-of-period amount 

plus any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

are included in average assets, since the year-to-date income includes 

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

base period to totals for institutions in the current period. For the 

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup. When community 

bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions 

that were subsequently merged into current community banks.

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home 

state. In addition, institutions may relocate across state lines or 

change their charters, resulting in an inter-regional or inter-industry 

migration; institutions can move their home offices between regions, 

savings institutions can convert to commercial banks, or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Financial accounting pronouncements by the Financial Accounting 

Standards Board (FASB) can result in changes in an individual 

bank’s accounting policies and in the Call Reports they submit. Such 

accounting changes can affect the aggregate amounts presented in the 

QBP for the current period and the period-to-period comparability of 

such financial data. 

The current quarter’s Financial Institution Letter (FIL) and related 

Call Report supplemental instructions can provide additional explanation to the QBP reader beyond any material accounting changes 

discussed in the QBP analysis. 

https://www.fdic.gov/news/news/financial/2019/fil19002.html

https://www.fdic.gov/news/news/financial/2019/fil19002.pdf 

https://www.fdic.gov/regulations/resources/call/call.html

Further information on changes in financial statement presentation, 

income recognition and disclosure is available from the FASB. http://

www.fasb.org/jsp/FASB/Page/LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of deposits in banks’ domestic offices with certain 

adjustments.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 
2 0 1 9  •  Volume 1 3 • Number 1

28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity Tier 1 capital ratio – ratio of common equity 

Tier 1 capital to risk-weighted assets. Common equity Tier 1 capital 

includes common stock instruments and related surplus, retained 

earnings, accumulated other comprehensive income (AOCI), and 

limited amounts of common equity Tier 1 minority interest, minus 

applicable regulatory adjustments and deductions. Items that are fully 

deducted from common equity Tier 1 capital include goodwill, other 

intangible assets (excluding mortgage servicing assets) and certain 

deferred tax assets; items that are subject to limits in common equity 

Tier 1 capital include mortgage servicing assets, eligible deferred tax 

assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative plus an additional amount for potential future credit exposure 

based on the notional amount, the remaining maturity and type of 

the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified future 

date, a specific quantity of an underlying variable or index at a 

specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, 

as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning 

March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Beginning September 30, 2009, insured deposits include deposits in 

accounts of $100,000 to $250,000 that are covered by a temporary 

increase in the FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and Consumer 

Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. 

Also, the Dodd-Frank Act amended the Federal Deposit Insurance 

Act to include noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing transaction accounts were fully insured, without 

limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on the 

balance sheet—including trading assets and liabilities, available-forsale securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 

of fair values. During periods of market stress, the fair values of some 

financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC-insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships, and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, 

less subsequent quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other loans 

secured by real estate.

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed from 

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions that 

actually filed a financial report.

New reporters – insured institutions filing quarterly financial reports 

for the first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that filed a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.
2 0 1 9  •  Volume 1 3 • Number 1

30 FDIC QUARTERLY

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet 

items multiplied by risk-weights that range from zero to 200 percent. 

A conversion factor is used to assign a balance sheet equivalent 

amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity” 

(reported at amortized cost (book value)), securities designated as 

“available-for-sale” (reported at fair (market) value), and equity 

securities with readily determinable fair values not held for trading.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for 

income taxes. Thrift Financial Report (TFR) filers also include gains 

(losses) on the sales of assets held for sale. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have been 

securitized, except an interest that is a form of recourse or other 

seller-provided credit enhancement. Seller’s interests differ from 

the securities issued to investors by the securitization structure. The 

principal amount of a seller’s interest is generally equal to the total 

principal amount of the pool of assets included in the securitization 

structure less the principal amount of those assets attributable to 

investors, i.e., in the form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending Fund 

(SBLF) was enacted into law in September 2010 as part of the Small 

Business Jobs Act of 2010 to encourage lending to small businesses 

by providing capital to qualified community institutions with assets 

of less than $10 billion. The SBLF Program is administered by the 

U.S. Treasury Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx).

Under the SBLF Program, the Treasury Department purchased 

noncumulative perpetual preferred stock from qualifying depository 

institutions and holding companies (other than Subchapter S and 

mutual institutions). When this stock has been issued by a depository 

institution, it is reported as “Perpetual preferred stock and related 

surplus.” For regulatory capital purposes, this noncumulative 

perpetual preferred stock qualifies as a component of Tier 1 capital. 

Qualifying Subchapter S corporations and mutual institutions issue 

unsecured subordinated debentures to the Treasury Department 

through the SBLF. Depository institutions that issued these 

debentures report them as “Subordinated notes and debentures.” 

For regulatory capital purposes, the debentures are eligible for 

inclusion in an institution’s Tier 2 capital in accordance with their 

primary federal regulator’s capital standards. To participate in the 

SBLF Program, an institution with outstanding securities issued 

to the Treasury Department under the Capital Purchase Program 

(CPP) was required to refinance or repay in full the CPP securities 

at the time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP remain 

outstanding after the refinancing of the CPP stock through the SBLF 

Program unless the institution chooses to repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal income 

tax purposes. It is generally not subject to any federal income taxes at 

the corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings.

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the assets 

of the financial institution.

Unearned income and contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured 

by commercial real estate, and unused commitments to originate 

or purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.