FDIC Quarterly 1 2014, Volume 8, No. 2

Quarterly Banking Profile First Quarter 2014

Effects of Last Year’s Rate Increase Are Evident in 

First Quarter Results

The increase in medium- and long-term interest rates 

that occurred in second quarter 2013 continued to affect 

year-over-year earnings comparisons. Lower noninterest 

income, reflecting diminished mortgage revenue, declining trading income, and a one-time gain that inflated 

year-ago results, was the principal cause of the $3.1 

billion (7.6 percent) year-over-year decline in industry 

earnings. This is only the second time in the last 19 

quarters that the industry has reported a year-over-year 

decline in quarterly earnings. Both declines have 

occurred in the last three quarters. Last year’s rise in 

interest rates resulted in a drying-up of demand for mortgage refinancings. Without this demand, mortgage originations have fallen sharply, and mortgage revenue has 

declined by almost one-half. The increase in interest 

rates also resulted in a steeper yield curve that has been 

beneficial for the net interest margins of banks that 

invest in longer-term assets and fund the investments 

with short-term liabilities. For the industry in aggregate, 

the declines in mortgage revenue and realized gains on 

securities caused by higher interest rates outweighed the 

gains in net interest income that stemmed from a 

steeper yield curve. For a majority of banks, however, 

the opposite was true. Even as total industry net income 

fell, more than half of all banks—54 percent—reported 

increased earnings compared with the year-ago period. 

The average return on assets for the quarter was 1.01 

percent, down from 1.12 percent in first quarter 2013.

Lower Noninterest Income Outweighs Growth in 

Net Interest Income

Net operating revenue—the sum of net interest income 

and total noninterest income—totaled $163.7 billion 

in the first quarter. This was $6.7 billion (4 percent) 

lower than the first-quarter 2013 total. Net interest 

income was $361 million (0.3 percent) higher than 

the year before, but noninterest income was down by 

$7.1 billion (10.7 percent). More than two-thirds of 

all banks reported year-over-year increases in net interest income, but only seven of the 20 largest banks 

reported increases. The average net interest margin fell 

to 3.17 percent, from 3.27 percent in first quarter 2013, 

although 54 percent of banks reported higher margins 

compared with first quarter 2013. Larger institutions are 

less invested in longer-maturity, higher-yield assets, and 

a sizable share of their recent asset growth has consisted 

of low-yield, high-liquidity balances at Federal Reserve 

banks. They experienced the greatest margin erosion.

■ Net Income of $37.2 Billion Is $3.1 Billion Below Year-Ago Level

■ Reduced Mortgage Activity Contributes to Decline in Revenue

■ 54 Percent of Banks Report Year-Over-Year Improvement in Earnings

■ Balances at Federal Reserve Banks Account for Almost Half of Asset Growth

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income

All FDIC-Insured Institutions Billions of Dollars

-$20

-$10

$0

$10

$20

$30

$40

$50

1 2 3 4 1 2 341 234 12341234 1

-6.1

-12.6

2009 2010

2.1

-1.7

17.4

20.9

23.8

21.4

28.7

2011

28.5

35.2

25.3

34.8

2012

34.4

37.5

34.4

2013

40.3 38.2

36.0

39.8

37.2

2014

Securities and Other Gains/Losses, Net

Net Operating Income

Source: FDIC.

Chart 1 Chart 2

Unprotable Institutions and Institutions

With Increased Earnings

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011 2012 2013 2014

Percentage of Institutions With Year-Over-Year

Quarterly Income Growth

Percentage of Institutions With Quarterly Losses

Percentage of All FDIC-Insured Institutions

Source: FDIC.
FDIC Quarterly 2 2014, Volume 8, No. 2

Reduced Income From Mortgage Lending 

Contributes to Revenue Decline

The year-over-year decline in noninterest income was 

led by a $4 billion (53.6 percent) drop in income from 

mortgage sales, securitization, and servicing. Trading 

revenue was $1.4 billion (18.3 percent) lower than the 

comparable period in 2013. In addition, first quarter 

2013 noninterest income received a $2.5 billion boost 

from a litigation settlement, while there was no similar 

boost to first quarter 2014 income. A majority of banks, 

55.6 percent, reported lower noninterest income than 

in first quarter 2013. Noninterest expense was essentially unchanged from 2013 (down $18 million, or 

0.02 percent). Payroll expenses were $579 million 

(1.2 percent) lower, as the number of full-time equivalent employees was 43,890 fewer than a year ago. Firstquarter expenses were elevated by a $959 million 

litigation expense.

Gains From Lower Provisioning Are Diminishing

The largest positive contribution to the year-over-year 

change in earnings came from reduced loan-loss provisions. The $7.6 billion that banks set aside for their 

loan-loss reserves was $3.3 billion (30.3 percent) lower 

than the year before. This is the 18th consecutive quarter that loan-loss provisions have declined year over 

year, and it is the second-smallest decline during this 

period. Forty-two percent of all banks reduced their 

loss provisions.

Charge-Offs Fall to Pre-Crisis Level

Loan losses continued to decline. Net charge-offs 

(NCOs) fell year over year for a 15th consecutive quarter, to $10.4 billion, $5.5 billion (34.8 percent) less 

than in first quarter 2013. This is the lowest quarterly 

NCO total since second quarter 2007. Charge-offs were 

lower across all major loan categories, with the largest 

declines occurring in residential mortgage loans (down 

$2 billion, 63.1 percent), home equity lines (down $1 

billion, 53.3 percent), real estate loans secured by 

nonfarm nonresidential properties (down $734 million, 

71.9 percent), and credit cards (down $709 million, 

11.4 percent). The annualized NCO rate fell to 0.52 

percent from 0.83 percent in first quarter 2013.

Noncurrent Balances Fall Below $200 Billion

The amount of loan and lease balances that were 

noncurrent (90 days or more past due or in nonaccrual 

status) declined for a 16th quarter in a row, as noncurrent levels improved in all major loan categories. 

Noncurrent balances totaled $195.1 billion at the end 

of the first quarter, down $12.1 billion (5.8 percent) 

from the total at year-end 2013. This is the first time 

since the end of third quarter 2008 that noncurrent 

balances have been below $200 billion. The improvement was led by residential mortgage loans, where 

noncurrent balances fell by $8.7 billion (6.5 percent), 

real estate loans secured by nonfarm nonresidential 

properties (down $1.2 billion, 5.7 percent) and real 

estate construction and development loans (down 

$1.1 billion, 12.7 percent).

Chart 4

Quarterly Noninterest Income From Sale, Securitization, 

and Servicing of 1-to-4 Family Residential Mortgage Loans* Billions of Dollars

1.51.2

-0.8

1.2 1.71.5 0.9

4.7

7.1

4.7

5.6

3.74.3

6.2

3.63.23.7

8.0

7.3

8.8

7.47.5

8.6

4.75.3

3.5

0.9

4.4 4.7

-$2

$0

$2

$4

$6

$8

$10

1 2 3 4 1 2 3 4 1 2 3 4 1234 1 2 3412 3 4 1234 1

2007 2008 2009 2010

Source: FDIC.

*Beginning in Q4 2008, includes income from HELOCs. Call Reporters only, subject to 

de minimis reporting conditions.

2011 2012 2013 2014

Chart 3

Quarterly Net Operating Revenue

All FDIC-Insured Institutions

Billions of Dollars

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

12341 2341 234 1 2 3 4 1 234 1234 123 4 1

2007 2008 2009 2010 2011 2012 2013

Source: FDIC.

2014

Quarterly Noninterest Income

Quarterly Net Interest Income
FDIC Quarterly 3 2014, Volume 8, No. 2

Quarterly Banking Profile

Reserve Coverage Improves for Sixth 

Consecutive Quarter

Banks continued to release reserves in the first quarter, 

adding $7.6 billion in loss provisions while net chargeoffs subtracted $10.4 billion. Total loan-loss reserves 

declined from $135.9 billion at year-end 2013 to 

$132.3 billion. This is the 16th consecutive quarter 

that reserve balances have fallen; reserves are now at a 

six-year low. The industry’s coverage ratio of reserves 

to noncurrent loans increased from 65.6 percent to 

67.8 percent during the quarter, however, owing to the 

decline in noncurrent loan balances. The coverage 

ratio has increased in each of the last six quarters. A 

year ago, the ratio was 59.5 percent.

Capital Measures Exhibit Strength

Equity capital increased by $29.8 billion (1.8 percent) 

in the quarter. Retained earnings contributed $17.3 

billion, down from $25.9 billion in the same period of 

2013, as declared dividends were up by $5.5 billion 

(38.3 percent). Higher market values for available-forsale securities added $6.7 billion to equity during the 

quarter. Both the core capital (leverage) ratio and the 

Tier 1 risk-based capital ratio (as defined for Prompt 

Corrective Action purposes) rose to record levels for 

the industry. At the end of the first quarter, 98.2 

percent of all insured institutions, representing 99.8 

percent of industry assets, met or exceeded the requirements of the highest regulatory capital category.

Pace of Loan Growth Picks Up

Total assets increased by $178.3 billion (1.2 percent) 

in the first three months of 2014. Balances with 

Federal Reserve banks rose by $82.5 billion (7.1 

percent), accounting for 46 percent of total asset 

growth. Investment securities portfolios rose by $52.7 

billion (1.8 percent), as banks increased their holdings 

of U.S. Treasury securities by $44.6 billion (23.1 

percent). Total loans and leases increased by $37.8 

billion (0.5 percent) during the quarter. Credit card 

balances and agricultural production loans posted 

seasonal declines of $33 billion (4.8 percent) and $5.7 

billion (8 percent), respectively. Home equity lines of 

credit declined for a 20th consecutive quarter, falling 

by $7.2 billion (1.4 percent). Residential mortgage 

balances declined by $6.3 billion (0.3 percent), as 

banks reduced their inventories of mortgages held for 

sale. All other major loan categories increased during 

the quarter. Loans to commercial and industrial 

borrowers increased by $15.3 billion (1.0 percent), 

while real estate loans secured by multifamily residential properties rose by $9 billion (3.4 percent), real 

estate loans secured by nonfarm nonresidential properties increased by $8.1 billion (0.7 percent), and auto 

loans rose by $6.2 billion (1.8 percent). Assets in trading accounts declined by $18.6 billion (3.1 percent).

Chart 5

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

All FDIC-Insured Institutions

Billions of Dollars

-$35

-$30

-$25

-$20

-$15

-$10

-$5

$0

1 2 3 4 12341 2 3 4 1

-30.7

-3.3

2011 2012 2013 2014

Source: FDIC.

Chart 6

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013 2014

Percent

Source: FDIC.

Noncurrent Loan Rate

Quarterly Net Charge-Off Rate
FDIC Quarterly 4 2014, Volume 8, No. 2

Retail Deposits Lead Growth in Funding

Deposit balances were up by $125.8 billion (1.1 

percent) in the quarter, as deposits in foreign offices fell 

by $5.4 billion (0.4 percent) and domestic office deposits increased by $131.1 billion (1.3 percent). Much of 

the increase in domestic deposits consisted of balances 

in smaller-denomination accounts. Deposits in accounts 

of less than $250,000 rose by $85.9 billion (1.7 

percent). Nondeposit liabilities increased by $25.4 

billion (1.4 percent), as unsecured borrowings increased 

by $28.1 billion (13.9 percent), and securities sold 

under repo agreements rose by $22 billion (7.2 percent). 

Liabilities in trading accounts declined by $22 billion 

(9.1 percent).

Problem List Falls to Less Than Half of Recent Peak

The number of insured commercial banks and savings 

institutions reporting financial results declined to 6,730 

in the first quarter, down from 6,812 reporters at the 

end of fourth quarter 2013. No new reporters were 

added in the first quarter. Mergers absorbed 74 institutions during the quarter, and five insured institutions 

failed. The number of institutions on the FDIC’s “Problem List” declined from 467 to 411 during the quarter. 

Assets of “problem” banks fell from $152.7 billion to 

$126.1 billion. The number of full-time equivalent 

employees declined to 2,058,927, from 2,102,817 in first 

quarter 2013. This is the fourth consecutive quarter 

that the number of employees has declined year over 

year.

Author: Ross Waldrop, Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

Chart 7

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Billions of Dollars

43

189

237

203

61

28

-6

-116-140

-109

-210

-133 -107

-7 -14

-126

67

24

-63

102

65

118

-37

73 70 91

38

221*

134

-$250

-$200

-$150

-$100

-$50

$0

$50

$100

$150

$200

$250

$300

1 2 3 4 1 2 3412 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1

2007 2008 2009 2010

Source: FDIC.

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

loan balances back onto banks' balance sheets in the first quarter of 2010. Although the 

total amount consolidated cannot be precisely quantified, the industry would have reported 

a decline in loan balances for the quarter absent this change in accounting standards.

2011 2012 2013 2014

Chart 8

Quarterly Changes in the Number of

Troubled Institutions

Quarterly Failures

Net Quarterly Change in

Number of Problem Banks

27

81

53

111136

150

73 54

31 24

-23 -21-31 -40-38-43-39

-59

-38-48-56

50 45

41

45

41

30

26 22 26 18 16 15 12 8 14 12

54

4

-41

27

81

53

111136

150

73 54

31 24

-23 -21-31 -40-38-43-39

-59

-38-48-56

14

54

4

-41

2

2

9

12

21

24

4 6 2 5

-75

-50

-25

0

25

50

75

100

125

150

175

200

1 2 3 4 1 2 3412341234123412341

2008 2009 2010 2011 2012 2013

Source: FDIC.

2014
FDIC Quarterly 5 2014, Volume 8, No. 2

Quarterly Banking Profile

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2014** 2013** 2013 2012 2011 2010 2009

Return on assets (%)������������������������������������������������������������������������������������������������������ 1.01 1.12 1.07 1.00 0.88 0.6

Return on equity (%)������������������������������������������������������������������������������������������������������� 8.99 9.96 9.53 8.91 7.79 5.8

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 9.54 9.26 9.40 9.15 9.07 8.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 1.52 2.08 1.63 2.20 2.61 3.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 0.52 0.83 0.69 1.10 1.55 2.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 3.30 3.58 1.88 4.02 4.30 1.7

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.17 3.27 3.26 3.42 3.60 3.

Net operating income growth (%)����������������������������������������������������������������������������������� -5.85 19.61 12.75 17.75 43.55 1594.66 

Number of institutions reporting������������������������������������������������������������������������������������� 6,730 7,019 6,812 7,083 7,357 7,658 8,012

Commercial banks��������������������������������������������������������������������������������������������������� 5,809 6,048 5,876 6,096 6,291 6,530 6,840

Savings institutions ������������������������������������������������������������������������������������������������� 921 971 936 987 1,066 1,128 1,172

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 7.28 8.55 8.12 10.98 16.22 22.1

Number of problem institutions �������������������������������������������������������������������������������������� 411 612 467 651 813 884 702

Assets of problem institutions (in billions) ��������������������������������������������������������������������� $126 $213 $153 $233 $319 $390 $403

Number of failed institutions������������������������������������������������������������������������������������������� 5 4 24 51 92 157 140

Number of assisted institutions�������������������������������������������������������������������������������������� 0 0 0 0 0 0 8

* Excludes insured branches of foreign banks (IBAs)

** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 3

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

(dollar figures in millions)  1st Quarter

2014

4th Quarter

2013

1st Quarter

2013

%Change 

13Q1-14Q1

Number of institutions reporting������������������������������������������������������������������������������������� 6,730 6,812 7,019 -4.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 2,058,927 2,068,754 2,102,817 -2.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $14,901,002 $14,722,664 $14,424,434 3.

Loans secured by real estate���������������������������������������������������������������������������������� 4,075,508 4,065,663 4,059,427 0.

 1-4 Family residential mortgages �������������������������������������������������������������������� 1,822,313 1,828,625 1,877,838 -3.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 1,117,684 1,109,585 1,072,938 4.

 Construction and development 214,319 209,935 201,534 6.

 Home equity lines��������������������������������������������������������������������������������������������� 503,539 510,756 538,912 -6.

Commercial & industrial loans �������������������������������������������������������������������������������� 1,614,329 1,599,063 1,519,577 6.

Loans to individuals������������������������������������������������������������������������������������������������� 1,326,961 1,353,508 1,288,060 3.

 Credit cards ������������������������������������������������������������������������������������������������������ 658,387 691,397 660,224 -0.

Farm loans��������������������������������������������������������������������������������������������������������������� 64,972 70,642 59,810 8.

Other loans & leases����������������������������������������������������������������������������������������������� 851,019 806,149 733,951 16.

Less: Unearned income ������������������������������������������������������������������������������������������ 1,902 1,896 1,926 -1.

Total loans & leases ������������������������������������������������������������������������������������������������ 7,930,910 7,893,129 7,658,899 3.

Less: Reserve for losses����������������������������������������������������������������������������������������� 132,323 135,927 155,488 -14.

Net loans and leases����������������������������������������������������������������������������������������������� 7,798,587 7,757,202 7,503,411 3.

Securities����������������������������������������������������������������������������������������������������������������� 3,054,501 3,001,760 2,998,531 1.

Other real estate owned������������������������������������������������������������������������������������������ 29,367 30,209 35,892 -18.

Goodwill and other intangibles ������������������������������������������������������������������������������� 365,486 368,316 367,041 -0.

All other assets�������������������������������������������������������������������������������������������������������� 3,653,062 3,565,177 3,519,559 3.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 14,901,002 14,722,664 14,424,434 3.

Deposits������������������������������������������������������������������������������������������������������������������� 11,317,837 11,192,053 10,819,197 4.

 Domestic office deposits���������������������������������������������������������������������������������� 9,922,088 9,790,951 9,426,565 5.

 Foreign office deposits������������������������������������������������������������������������������������� 1,395,749 1,401,102 1,392,632 0.

Other borrowed funds ��������������������������������������������������������������������������������������������� 1,343,002 1,307,630 1,300,306 3.

Subordinated debt��������������������������������������������������������������������������������������������������� 95,451 99,618 116,075 -17.

All other liabilities ���������������������������������������������������������������������������������������������������� 463,007 468,773 547,377 -15.

Total equity capital (includes minority interests)���������������������������������������������������� 1,681,705 1,654,590 1,641,479 2.

 Bank equity capital������������������������������������������������������������������������������������������� 1,672,967 1,643,211 1,626,316 2.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 69,570 75,883 80,037 -13.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 195,054 207,136 261,170 -25.

Restructured loans and leases �������������������������������������������������������������������������������������� 97,167 99,419 105,772 -8.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 1,690,537 1,673,883 1,698,409 -0.

Earning assets���������������������������������������������������������������������������������������������������������������� 13,269,584 13,067,384 12,753,050 4.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 391,990 406,163 330,183 18.

Unused loan commitments��������������������������������������������������������������������������������������������� 6,214,801 6,098,254 5,908,378 5.

Trust assets��������������������������������������������������������������������������������������������������������������������� 20,193,283 19,691,995 18,271,244 10.

Assets securitized and sold ������������������������������������������������������������������������������������������� 722,091 742,448 809,168 -10.

Notional amount of derivatives��������������������������������������������������������������������������������������� 233,457,475 238,755,603 232,583,465 0.

INCOME DATA

Full Year

 2013

Full Year

 2012 %Change

1st Quarter 

2014

1st Quarter 

2013

%Change 

13Q1-14Q1

Total interest income ������������������������������������������������������������������� $470,760 $486,730 -3.3 $116,125 $118,110 -1

Total interest expense ����������������������������������������������������������������� 53,610 65,902 -18.7 11,937 14,284 -16

Net interest income �������������������������������������������������������������� 417,150 420,828 -0.9 104,187 103,826 0

Provision for loan and lease losses �������������������������������������������� 32,426 57,807 -43.9 7,601 10,911 -30

Total noninterest income������������������������������������������������������������� 251,844 248,629 1.3 59,513 66,621 -10

Total noninterest expense����������������������������������������������������������� 416,751 421,221 -1.1 102,266 102,283 0

Securities gains (losses)������������������������������������������������������������� 4,474 9,680 -53.8 827 2,071 -60

Applicable income taxes ������������������������������������������������������������� 69,530 58,303 19.3 17,304 18,758 -7

Extraordinary gains, net�������������������������������������������������������������� 243 -146 N/M 76 -59 N/M

Total net income (includes minority interests)��������������������� 155,004 141,660 9.4 37,432 40,506 -7

 Bank net income������������������������������������������������������������ 154,219 141,050 9.3 37,239 40,308 -7

Net charge-offs���������������������������������������������������������������������������� 53,529 82,222 -34.9 10,374 15,900 -34

Cash dividends ���������������������������������������������������������������������������� 87,161 96,409 -9.6 19,939 14,413 38

Retained earnings ����������������������������������������������������������������������� 67,059 44,640 50.2 17,300 25,895 -33

Net operating income����������������������������������������������������������� 151,632 134,484 12.8 36,765 39,051 -5

N/M - Not Meaningful
FDIC Quarterly 6 2014, Volume 8, No. 2

TABLE III-A. First Quarter 2014, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,730 16 4 1,481 3,323 563 54 444 783 62

Commercial banks������������������������������������� 5,809 13 4 1,463 2,986 168 40 405 677 53

Savings institutions ����������������������������������� 921 3 0 18 337 395 14 39 106 9

Total assets (in billions)������������������������������������ $14,901.0 $592.3 $3,715.4 $245.2 $4,977.1 $575.5 $164.1 $70.2 $141.

Commercial banks������������������������������������� 13,854.7 511.8 3,715.4 240.2 4,587.5 256.2 79.9 65.2 116

Savings institutions ����������������������������������� 1,046.3 80.5 0.0 5.0 389.6 319.3 84.1 5.0 

Total deposits (in billions)��������������������������������� 11,317.8 342.3 2,641.7 206.6 3,895.6 432.1 139.2 57.9 119

Commercial banks������������������������������������� 10,516.0 285.8 2,641.7 203.4 3,608.7 198.3 67.6 54.2 98

Savings institutions ����������������������������������� 801.8 56.6 0.0 3.2 286.9 233.8 71.6 3.7 

Bank net income (in millions) ��������������������������� 37,239 5,143 7,172 682 11,724 1,201 415 320 288 10,294

Commercial banks������������������������������������� 34,363 4,173 7,172 657 10,993 742 222 201 257 9,945

Savings institutions ����������������������������������� 2,876 970 0 25 731 458 193 119 31 349

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������ 3.53 10.10 2.76 4.05 3.85 3.57 3.78 3.10

Cost of funding earning assets ������������������������ 0.36 0.65 0.39 0.50 0.41 0.58 0.48 0.38

Net interest margin������������������������������������ 3.17 9.45 2.37 3.55 3.44 2.99 3.31 2.71

Noninterest income to assets��������������������������� 1.61 4.43 1.67 0.59 1.20 0.81 1.21 4.58

Noninterest expense to assets������������������������� 2.76 5.55 2.44 2.48 2.82 2.28 2.32 4.59

Loan and lease loss provision to assets���������� 0.21 2.11 0.15 0.09 0.14 0.13 0.49 0.05

Net operating income to assets ����������������������� 0.99 3.47 0.78 1.11 0.94 0.81 1.02 1.82

Pretax return on assets ������������������������������������ 1.47 5.48 1.14 1.30 1.34 1.25 1.61 2.46

Return on assets����������������������������������������������� 1.01 3.48 0.77 1.12 0.95 0.84 1.02 1.85

Return on equity ����������������������������������������������� 8.99 23.59 8.29 10.21 8.01 7.22 10.64 13.73

Net charge-offs to loans and leases���������������� 0.52 3.03 0.72 0.06 0.27 0.23 0.72 0.11

Loan and lease loss provision to 

net charge-offs���������������������������������������������� 73.27 89.37 60.89 229.97 74.41 94.42 100.08 152.17 8

Efficiency ratio �������������������������������������������������� 61.48 40.77 64.37 63.70 65.02 62.56 51.61 64.67 7

% of unprofitable institutions���������������������������� 7.28 0.00 0.00 3.78 7.61 11.19 5.56 10.36

% of institutions with earnings gains���������������� 54.01 43.75 50.00 56.11 56.30 45.83 40.74 51.58 4

Condition Ratios (%)

Earning assets to total assets �������������������������� 89.05 92.35 87.34 92.48 89.59 93.53 97.51 91.45 9

Loss allowance to:

Loans and leases �������������������������������������� 1.67 3.52 2.18 1.51 1.48 1.26 1.21 1.91

Noncurrent loans and leases �������������������� 67.84 309.27 83.31 131.75 81.67 48.51 77.47 103.76 7

Noncurrent assets plus

other real estate owned to assets ���������������� 1.52 0.87 1.03 0.95 1.57 1.78 1.15 0.87

Equity capital ratio�������������������������������������������� 11.23 14.74 9.38 11.06 11.92 11.68 9.64 13.54 1

Core capital (leverage) ratio ���������������������������� 9.54 12.80 8.22 10.45 10.20 10.74 9.43 13.18 

Tier 1 risk-based capital ratio��������������������������� 13.34 15.17 13.00 15.02 12.84 20.83 14.10 29.62 1

Total risk-based capital ratio ���������������������������� 15.07 17.97 14.75 16.15 14.45 21.90 14.93 30.65 2

Net loans and leases to deposits��������������������� 68.91 127.58 48.13 71.31 85.05 77.63 78.95 33.96 6

Net loans to total assets ���������������������������������� 52.34 73.73 34.22 60.08 66.57 58.29 66.99 28.01 5

Domestic deposits to total assets �������������������� 66.59 55.25 43.65 84.25 77.26 74.93 84.84 81.74 8

Structural Changes

New reporters�������������������������������������������� 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������� 74 0 0 13 47 3 0 2 4 5

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

PRIOR FIRST QUARTERS

(The way it was...)

Number of institutions ������������������������������2013 7,019 16 5 1,491 3,483 619 49 450 827 79

��������������������������������������2011 7,574 21 4 1,531 3,983 699 72 354 844 66

������������������������������������� 2009 8,247 25 5 1,524 4,680 838 80 305 745 45

Total assets (in billions)����������������������������2013 $14,424.4 $594.3 $3,838.6 $231.1 $4,223.7 $566.2 $106.3 $69.4 $148.

��������������������������������������2011 13,414.3 676.3 3,164.6 200.3 4,084.5 795.8 118.4 51.8 137

������������������������������������� 2009 13,526.2 464.0 3,203.0 165.4 6,002.0 1,100.9 73.2 36.2 103

Return on assets (%)��������������������������������2013 1.12 3.10 0.95 1.14 0.89 0.94 1.48 1.52

��������������������������������������2011 0.86 3.68 0.60 1.04 0.59 0.48 1.33 1.34

������������������������������������� 2009 -0.18 -11.26 0.61 0.73 -0.19 0.54 0.08 0.30

Net charge-offs to loans & leases (%) �����2013 0.83 3.41 1.17 0.10 0.51 0.42 1.18 0.34

��������������������������������������2011 1.83 6.67 1.96 0.31 1.34 0.98 1.77 0.76

������������������������������������� 2009 1.94 8.57 2.42 0.52 1.45 1.05 2.56 0.43

Noncurrent assets plus 

OREO to assets (%)������������������������������2013 2.08 1.04 1.30 1.07 2.12 2.57 0.92 1.05

��������������������������������������2011 2.96 1.72 2.01 1.64 3.59 2.93 1.22 0.93

������������������������������������� 2009 2.40 2.63 2.00 1.48 2.82 3.04 0.99 0.62

Equity capital ratio (%)������������������������������2013 11.27 14.94 8.97 11.27 11.94 11.44 9.50 14.56 1

��������������������������������������2011 11.25 16.03 8.72 10.95 11.60 10.30 10.81 15.07 1

������������������������������������� 2009 10.05 21.57 8.44 11.05 10.26 8.92 9.25 16.24 

* See Table V-A (page 10) for explanations

Note: Blue font identifies data that are also presented in the prior quarters’ data at bottom of table
FDIC Quarterly 7 2014, Volume 8, No. 2

Quarterly Banking Profile

TABLE III-A. First Quarter 2014, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,730 2,005 4,053 565 107 831 852 1,457 1,641 1,414 535

Commercial banks������������������������������������������� 5,809 1,770 3,496 452 91 458 767 1,209 1,571 1,319 485

Savings institutions ����������������������������������������� 921 235 557 113 16 373 85 248 70 95 50

Total assets (in billions)������������������������������������������ $14,901.0 $118.1 $1,245.8 $1,494.9 $12,042.3 $2,963.4 $3,032.9 $3,417.0 $3,238.4 $883

Commercial banks������������������������������������������� 13,854.7 104.6 1,051.2 1,207.5 11,491.5 2,500.0 2,947.1 3,307.6 3,177.4 77

Savings institutions ����������������������������������������� 1,046.3 13.5 194.6 287.4 550.8 463.4 85.7 109.4 61.0 

Total deposits (in billions)��������������������������������������� 11,317.8 100.6 1,045.5 1,174.2 8,997.6 2,213.0 2,333.5 2,479.4 2,490.7 73

Commercial banks������������������������������������������� 10,516.0 89.9 890.1 957.9 8,578.2 1,878.7 2,268.6 2,396.2 2,441.7 

Savings institutions ����������������������������������������� 801.8 10.7 155.5 216.2 419.4 334.3 64.8 83.2 48.9

Bank net income (in millions) ��������������������������������� 37,239 240 2,804 3,760 30,435 7,505 6,631 6,801 9,185 2,371 4,746

Commercial banks������������������������������������������� 34,363 217 2,426 3,209 28,511 6,749 6,458 6,634 9,023 2,048 3,451

Savings institutions ����������������������������������������� 2,876 23 379 550 1,924 755 174 168 162 323 1,295

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������������ 3.53 4.11 4.15 4.21 3.37 3.83 3.47 2.80 3.7

Cost of funding earning assets ������������������������������ 0.36 0.49 0.51 0.45 0.33 0.41 0.29 0.30 0.4

Net interest margin������������������������������������������ 3.17 3.62 3.64 3.76 3.03 3.42 3.18 2.49 3.3

Noninterest income to assets��������������������������������� 1.61 1.21 1.01 1.16 1.73 1.52 1.66 1.72 1.5

Noninterest expense to assets������������������������������� 2.76 3.47 3.12 3.03 2.68 2.73 3.03 2.64 2.6

Loan and lease loss provision to assets���������������� 0.21 0.09 0.12 0.17 0.22 0.35 0.17 0.14 0.1

Net operating income to assets ����������������������������� 0.99 0.81 0.89 0.99 1.01 1.00 0.84 0.80 1.1

Pretax return on assets ������������������������������������������ 1.47 0.96 1.15 1.42 1.52 1.51 1.28 1.14 1.7

Return on assets����������������������������������������������������� 1.01 0.82 0.91 1.01 1.02 1.02 0.88 0.80 1.1

Return on equity ����������������������������������������������������� 8.99 6.94 8.36 8.55 9.13 8.47 7.18 8.24 10.88

Net charge-offs to loans and leases���������������������� 0.52 0.18 0.18 0.26 0.62 0.75 0.47 0.38 0.6

Loan and lease loss provision to 

net charge-offs���������������������������������������������������� 73.27 87.48 100.35 99.45 70.47 87.44 63.31 80.95 48.72 7

Efficiency ratio �������������������������������������������������������� 61.48 76.59 71.35 65.39 59.82 58.36 67.72 66.87 56.77 

% of unprofitable institutions���������������������������������� 7.28 12.92 5.33 2.65 0.00 7.94 11.27 8.24 5.1

% of institutions with earnings gains���������������������� 54.01 52.47 54.48 56.46 52.34 51.26 58.69 48.73 55.51 

Condition Ratios (%)

Earning assets to total assets ��������������������������������� 89.05 91.42 92.15 91.12 88.45 89.34 87.45 88.45 88.68 

Loss allowance to:

Loans and leases ��������������������������������������������� 1.67 1.67 1.58 1.53 1.70 1.68 1.52 1.80 1.8

Noncurrent loans and leases ��������������������������� 67.84 92.50 92.54 74.41 64.77 94.10 48.26 69.62 59.46 8

Noncurrent assets plus

other real estate owned to assets ����������������������� 1.52 1.71 1.71 1.77 1.47 1.08 2.04 1.39 1.8

Equity capital ratio��������������������������������������������������� 11.23 11.86 10.91 11.90 11.17 12.04 12.32 9.79 10.47 

Core capital (leverage) ratio ����������������������������������� 9.54 11.76 10.70 10.67 9.25 9.93 9.49 8.62 9.20 

Tier 1 risk-based capital ratio���������������������������������� 13.34 19.45 15.87 14.92 12.84 14.36 12.77 12.44 12.58 

Total risk-based capital ratio ����������������������������������� 15.07 20.56 17.04 16.09 14.70 16.15 14.51 14.08 14.63 

Net loans and leases to deposits���������������������������� 68.91 64.07 74.03 81.87 66.67 70.62 73.70 61.10 66.96 

Net loans to total assets ����������������������������������������� 52.34 54.57 62.13 64.31 49.82 52.74 56.71 44.34 51.50 

Domestic deposits to total assets ��������������������������� 66.59 85.18 83.87 78.14 63.18 65.93 73.69 60.78 57.89 

Structural Changes

New reporters�������������������������������������������������� 0 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������������� 74 32 37 4 1 6 15 14 17 15 7

Failed institutions �������������������������������������������� 5 2 3 0 0 1 1 1 0 1 1

PRIOR FIRST QUARTERS

(The way it was...)

Number of institutions ������������������������������������2013 7,019 2,161 4,196 553 109 867 894 1,500 1,701 1,480 577

��������������������������������������������2011 7,574 2,573 4,331 563 107 942 1,010 1,581 1,811 1,580 650

������������������������������������������� 2009 8,247 3,052 4,504 576 115 1,005 1,172 1,692 1,924 1,690 764

Total assets (in billions)����������������������������������2013 $14,424.4 $126.0 $1,270.8 $1,423.9 $11,603.8 $2,862.6 $3,017.0 $3,345.9 $3,068.2 $870

��������������������������������������������2011 13,414.3 147.1 1,284.8 1,428.4 10,554.0 2,709.1 2,913.4 3,047.9 1,680.2 78

������������������������������������������� 2009 13,526.2 167.2 1,359.5 1,512.5 10,486.9 2,505.7 3,520.2 3,176.6 1,064.7 90

Return on assets (%)��������������������������������������2013 1.12 0.72 0.87 1.10 1.15 0.86 1.11 1.09 1.2

��������������������������������������������2011 0.86 0.57 0.52 0.69 0.93 1.04 0.60 0.68 1.1

������������������������������������������� 2009 -0.18 0.25 0.27 -0.24 -0.23 -1.82 0.20 0.12 0.56

Net charge-offs to loans & leases (%) �����������2013 0.83 0.26 0.33 0.43 0.96 1.10 0.83 0.55 1.0

��������������������������������������������2011 1.83 0.43 0.77 1.37 2.09 2.29 1.82 1.43 2.0

������������������������������������������� 2009 1.94 0.57 0.76 1.43 2.26 2.23 1.76 1.63 2.1

Noncurrent assets plus 

OREO to assets (%)������������������������������������2013 2.08 2.04 2.30 2.17 2.04 1.41 3.03 1.87 2.3

��������������������������������������������2011 2.96 2.39 3.39 3.47 2.84 2.05 3.97 2.75 4.0

������������������������������������������� 2009 2.40 1.87 2.53 2.98 2.31 1.53 2.56 2.43 2.7

Equity capital ratio (%)������������������������������������2013 11.27 11.97 11.00 11.84 11.23 12.26 12.22 9.12 11.03 

��������������������������������������������2011 11.25 11.57 10.28 11.43 11.34 12.74 11.84 8.52 11.58 

������������������������������������������� 2009 10.05 12.66 9.96 10.56 9.95 11.71 10.19 8.37 9.90

* See Table V-A (page 11) for explanations

Note: Blue font identifies data that are also presented in the prior quarters’ data at bottom of table
FDIC Quarterly 8 2014, Volume 8, No. 2

TABLE IV-A. Full Year 2013, All FDIC-Insured Institutions

Asset Concentration Groups*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,812 16 4 1,532 3,377 588 55 406 772 62

Commercial banks������������������������������������� 5,876 13 4 1,511 3,040 169 42 369 675 53

Savings institutions ����������������������������������� 936 3 0 21 337 419 13 37 97 9

Total assets (in billions)������������������������������������ $14,722.7 $590.9 $3,691.5 $261.6 $4,921.9 $486.9 $162.5 $63.0 $137.

Commercial banks������������������������������������� 13,670.2 514.3 3,691.5 255.3 4,508.3 194.8 80.8 58.4 116

Savings institutions ����������������������������������� 1,052.5 76.6 0.0 6.3 413.6 292.1 81.7 4.7 

Total deposits (in billions)��������������������������������� 11,192.1 340.6 2,645.5 218.0 3,849.5 362.9 137.4 51.6 116

Commercial banks������������������������������������� 10,389.3 287.0 2,645.5 213.7 3,546.0 147.8 68.3 48.2 98

Savings institutions ����������������������������������� 802.8 53.6 0.0 4.3 303.5 215.1 69.1 3.4 

Bank net income (in millions) ��������������������������� 154,219 19,490 31,399 2,955 43,622 4,794 1,837 1,221 1,175 47,726

Commercial banks������������������������������������� 143,052 15,960 31,399 2,833 41,063 2,579 1,037 714 1,067 46,399

Savings institutions ����������������������������������� 11,167 3,530 0 121 2,558 2,215 800 507 108 1,327

Performance Ratios (%)

Yield on earning assets������������������������������������ 3.68 10.19 2.88 4.16 3.98 3.59 3.84 3.08

Cost of funding earning assets ������������������������ 0.42 0.72 0.45 0.55 0.46 0.72 0.53 0.43

Net interest margin������������������������������������ 3.26 9.47 2.43 3.61 3.52 2.87 3.31 2.65

Noninterest income to assets��������������������������� 1.74 4.49 1.77 0.65 1.33 1.06 1.54 5.10

Noninterest expense to assets������������������������� 2.88 5.91 2.54 2.52 3.03 2.35 2.50 4.81

Loan and lease loss provision to assets���������� 0.22 2.03 0.10 0.10 0.20 0.10 0.47 0.08

Net operating income to assets ����������������������� 1.05 3.37 0.83 1.14 0.90 0.95 1.10 1.90

Pretax return on assets ������������������������������������ 1.55 5.22 1.27 1.36 1.26 1.34 1.82 2.66

Return on assets����������������������������������������������� 1.07 3.35 0.86 1.15 0.91 0.98 1.15 1.92

Return on equity ����������������������������������������������� 9.53 22.96 9.57 10.30 7.65 8.59 12.23 13.98

Net charge-offs to loans and leases���������������� 0.69 3.20 0.97 0.14 0.42 0.37 0.80 0.49

Loan and lease loss provision to 

net charge-offs���������������������������������������������� 60.58 81.69 27.99 120.51 69.24 41.72 88.77 60.13 8

Efficiency ratio �������������������������������������������������� 60.51 43.26 64.84 62.75 64.75 62.23 52.18 63.62 7

% of unprofitable institutions���������������������������� 8.12 0.00 0.00 2.87 9.89 12.76 3.64 10.34

% of institutions with earnings gains���������������� 54.05 81.25 75.00 48.63 60.73 43.37 49.09 47.04 4

Condition Ratios (%)

Earning assets to total assets �������������������������� 88.76 92.23 86.82 92.01 89.49 93.71 97.39 91.62 9

Loss allowance to:

Loans and leases �������������������������������������� 1.72 3.48 2.26 1.44 1.52 1.29 1.26 1.86

Noncurrent loans and leases �������������������� 65.62 296.22 82.57 132.84 80.06 42.96 75.78 97.02 8

Noncurrent assets plus

other real estate owned to assets ���������������� 1.63 0.93 1.07 0.95 1.64 2.14 1.23 0.87

Equity capital ratio�������������������������������������������� 11.16 14.73 9.30 10.97 11.79 11.62 9.51 13.50 1

Core capital (leverage) ratio ���������������������������� 9.40 13.01 7.89 10.33 10.13 10.91 9.45 13.10 

Tier 1 risk-based capital ratio��������������������������� 13.13 14.71 12.68 14.52 12.75 21.40 13.82 29.71 1

Total risk-based capital ratio ���������������������������� 14.93 16.96 14.77 15.64 14.37 22.52 14.65 30.73 2

Net loans and leases to deposits��������������������� 69.31 132.84 47.99 74.07 84.89 80.79 80.08 34.19 6

Net loans to total assets ���������������������������������� 52.69 76.57 34.39 61.72 66.39 60.22 67.72 27.97 5

Domestic deposits to total assets �������������������� 66.50 54.61 43.93 83.33 77.13 74.38 84.55 81.07 8

Structural Changes

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

Institutions absorbed by mergers ������������� 232 0 0 36 161 8 0 2 15 10

Failed institutions �������������������������������������� 24 0 0 0 21 0 0 0 3 0

PRIOR FULL YEARS

(The way it was...)

Number of institutions ������������������������������2012 7,083 19 5 1,537 3,499 659 51 414 826 73

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

������������������������������������� 2008 8,305 26 5 1,559 4,753 839 91 279 709 44

Total assets (in billions)����������������������������2012 $14,450.7 $600.7 $3,808.4 $239.8 $4,339.4 $628.3 $101.6 $64.9 $145.

��������������������������������������2010 13,318.9 705.4 3,038.1 199.8 4,094.6 789.0 114.3 42.9 132

������������������������������������� 2008 13,841.2 513.0 3,410.1 168.8 5,461.2 997.1 122.2 34.4 94

Return on assets (%)��������������������������������2012 1.00 3.13 0.80 1.27 0.89 0.87 1.46 1.23

��������������������������������������2010 0.65 1.82 0.72 0.98 0.20 0.68 1.28 1.48

������������������������������������� 2008 0.03 1.70 0.25 1.00 -0.13 -0.48 -0.01 1.43 

Net charge-offs to loans & leases (%) �����2012 1.10 3.69 1.41 0.24 0.75 0.82 1.31 0.45

��������������������������������������2010 2.55 10.83 2.29 0.59 1.90 1.14 2.37 0.64

������������������������������������� 2008 1.29 5.94 1.44 0.41 1.14 0.86 1.74 0.35

Noncurrent assets plus 

OREO to assets (%)������������������������������2012 2.20 1.11 1.39 1.11 2.21 2.70 0.88 1.04

��������������������������������������2010 3.11 1.90 2.38 1.62 3.71 2.88 1.22 0.81

������������������������������������� 2008 1.91 2.08 1.59 1.17 2.34 2.55 1.31 0.35

Equity capital ratio (%)������������������������������2012 11.17 14.67 8.93 11.14 11.93 11.09 9.57 14.27 1

��������������������������������������2010 11.15 14.96 8.93 10.86 11.40 10.05 11.00 16.31 1

������������������������������������� 2008 9.33 20.47 7.01 10.99 10.04 7.45 9.85 18.63 

* See Table V-A (page 10) for explanations

Note: Blue font identifies data that are also presented in the prior years’ data at bottom of table
FDIC Quarterly 9 2014, Volume 8, No. 2

Quarterly Banking Profile

TABLE IV-A. Full Year 2013, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,812 2,056 4,090 559 107 840 869 1,470 1,659 1,431 543

Commercial banks������������������������������������������� 5,876 1,814 3,522 450 90 461 784 1,219 1,586 1,334 492

Savings institutions ����������������������������������������� 936 242 568 109 17 379 85 251 73 97 51

Total assets (in billions)������������������������������������������ $14,722.7 $119.7 $1,246.1 $1,468.7 $11,888.2 $2,927.4 $2,998.8 $3,377.7 $3,214.1 $870

Commercial banks������������������������������������������� 13,670.2 106.0 1,046.4 1,188.3 11,329.5 2,470.6 2,913.6 3,267.1 3,153.8 76

Savings institutions ����������������������������������������� 1,052.5 13.7 199.7 280.4 558.6 456.8 85.3 110.6 60.3 

Total deposits (in billions)��������������������������������������� 11,192.1 101.7 1,042.7 1,147.6 8,900.0 2,179.6 2,308.7 2,464.2 2,482.0 72

Commercial banks������������������������������������������� 10,389.3 90.8 883.1 937.5 8,477.9 1,849.5 2,244.5 2,379.8 2,433.6 

Savings institutions ����������������������������������������� 802.8 10.9 159.6 210.1 422.1 330.1 64.3 84.4 48.5

Bank net income (in millions) ��������������������������������� 154,219 853 11,218 16,792 125,356 25,112 29,637 31,923 38,681 9,299 19,567

Commercial banks������������������������������������������� 143,052 797 9,511 14,116 118,629 22,705 29,061 30,544 38,183 7,969 14,590

Savings institutions ����������������������������������������� 11,167 56 1,707 2,676 6,727 2,407 576 1,378 499 1,330 4,977

Performance Ratios (%)

Yield on earning assets������������������������������������������ 3.68 4.17 4.23 4.33 3.53 3.97 3.66 2.91 3.9

Cost of funding earning assets ������������������������������ 0.42 0.56 0.58 0.52 0.39 0.46 0.36 0.36 0.4

Net interest margin������������������������������������������ 3.26 3.62 3.66 3.81 3.14 3.51 3.30 2.54 3.4

Noninterest income to assets��������������������������������� 1.74 1.11 1.13 1.31 1.86 1.58 1.77 1.92 1.6

Noninterest expense to assets������������������������������� 2.88 3.47 3.19 3.15 2.81 2.98 3.02 2.77 2.6

Loan and lease loss provision to assets���������������� 0.22 0.14 0.18 0.19 0.23 0.38 0.20 0.06 0.2

Net operating income to assets ����������������������������� 1.05 0.69 0.89 1.15 1.05 0.86 0.96 0.93 1.2

Pretax return on assets ������������������������������������������ 1.55 0.81 1.15 1.46 1.60 1.37 1.45 1.34 1.7

Return on assets����������������������������������������������������� 1.07 0.71 0.91 1.17 1.07 0.88 0.98 0.95 1.2

Return on equity ����������������������������������������������������� 9.53 5.99 8.40 9.82 9.65 7.23 8.07 10.32 11.54 

Net charge-offs to loans and leases���������������������� 0.69 0.34 0.36 0.40 0.78 0.93 0.66 0.48 0.8

Loan and lease loss provision to 

net charge-offs���������������������������������������������������� 60.58 75.78 79.98 72.34 58.39 76.30 53.52 27.62 53.57 7

Efficiency ratio �������������������������������������������������������� 60.51 78.56 70.73 64.81 58.75 58.65 64.07 66.15 55.78 

% of unprofitable institutions���������������������������������� 8.12 13.08 6.53 2.50 2.80 10.71 14.15 9.18 4.40

% of institutions with earnings gains���������������������� 54.05 48.49 55.53 62.08 62.62 50.12 62.26 50.88 51.66 

Condition Ratios (%)

Earning assets to total assets ��������������������������������� 88.76 91.40 92.10 91.13 88.09 89.25 87.09 87.72 88.60 

Loss allowance to:

Loans and leases ��������������������������������������������� 1.72 1.67 1.60 1.56 1.76 1.71 1.59 1.83 1.9

Noncurrent loans and leases ��������������������������� 65.62 91.21 88.44 70.93 62.85 92.92 46.87 67.31 57.88 7

Noncurrent assets plus

other real estate owned to assets ����������������������� 1.63 1.75 1.81 1.89 1.57 1.12 2.23 1.47 1.9

Equity capital ratio��������������������������������������������������� 11.16 11.69 10.78 11.80 11.12 12.02 12.19 9.66 10.46 

Core capital (leverage) ratio ����������������������������������� 9.40 11.59 10.63 10.61 9.10 9.83 9.48 8.36 8.97

Tier 1 risk-based capital ratio���������������������������������� 13.13 19.06 15.73 14.88 12.60 14.07 12.67 12.25 12.20 

Total risk-based capital ratio ����������������������������������� 14.93 20.16 16.90 16.07 14.54 15.74 14.41 14.20 14.35 

Net loans and leases to deposits���������������������������� 69.31 65.66 74.89 82.42 67.01 71.14 74.55 61.24 67.00 

Net loans to total assets ����������������������������������������� 52.69 55.78 62.67 64.40 50.16 52.97 57.39 44.68 51.74 

Domestic deposits to total assets ��������������������������� 66.50 84.95 83.62 77.74 63.13 65.70 73.62 61.09 57.80 

Structural Changes

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

Institutions absorbed by mergers ������������������� 232 80 130 20 2 29 20 42 50 56 35

Failed institutions �������������������������������������������� 24 13 10 1 0 1 9 4 1 4 5

PRIOR FULL YEARS

(The way it was...)

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

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

������������������������������������������� 2008 8,305 3,132 4,498 561 114 1,015 1,180 1,705 1,935 1,700 770

Total assets (in billions)����������������������������������2012 $14,450.7 $128.1 $1,275.0 $1,454.8 $11,592.7 $2,896.0 $3,056.1 $3,298.5 $3,068.7 $870

��������������������������������������������2010 13,318.9 148.6 1,291.7 1,429.6 10,449.0 2,694.8 2,929.8 2,950.1 1,686.5 78

������������������������������������������� 2008 13,841.2 170.9 1,354.7 1,489.8 10,825.8 2,594.2 3,745.9 3,264.3 1,057.2 78

Return on assets (%)��������������������������������������2012 1.00 0.68 0.80 1.13 1.01 0.96 0.77 0.90 1.1

��������������������������������������������2010 0.65 0.27 0.26 0.19 0.76 0.76 0.34 0.60 0.8

������������������������������������������� 2008 0.03 0.25 0.24 -0.30 0.05 0.25 -0.14 0.29 0.56

Net charge-offs to loans & leases (%) �����������2012 1.10 0.43 0.64 0.73 1.22 1.24 1.19 0.85 1.3

��������������������������������������������2010 2.55 0.80 1.12 1.80 2.93 3.57 2.43 2.03 2.8

������������������������������������������� 2008 1.29 0.46 0.67 1.10 1.45 1.44 1.01 1.24 1.6

Noncurrent assets plus 

OREO to assets (%)������������������������������������2012 2.20 2.10 2.37 2.46 2.15 1.46 3.23 2.00 2.4

��������������������������������������������2010 3.11 2.38 3.44 3.57 3.01 2.14 3.93 2.98 4.2

������������������������������������������� 2008 1.91 1.66 2.16 2.46 1.80 1.20 2.02 1.93 2.2

Equity capital ratio (%)������������������������������������2012 11.17 12.00 10.90 11.77 11.11 12.18 12.03 9.09 10.86 

��������������������������������������������2010 11.15 11.70 10.15 11.18 11.26 12.58 11.59 8.71 11.33 

������������������������������������������� 2008 9.33 12.87 10.00 10.65 9.01 11.14 9.56 8.07 9.4

* See Table V-A (page 11) for explanations

Note: Blue font identifies data that are also presented in the prior years’ data at bottom of table
FDIC Quarterly 10 2014, Volume 8, No. 2

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

Asset Concentration Groups*

March 31, 2014 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 ��������������������������������������� 1.10 0.15 1.45 0.87 0.78 0.95 0.73 1.51

Construction and development��������������������������������� 0.70 0.00 0.80 0.88 0.65 0.72 1.14 1.11

Nonfarm nonresidential��������������������������������������������� 0.50 0.00 0.38 0.81 0.50 0.52 1.46 1.08

Multifamily residential real estate ����������������������������� 0.28 0.00 0.14 0.28 0.28 0.31 0.02 0.73

Home equity loans����������������������������������������������������� 0.71 0.62 0.94 0.62 0.59 0.70 0.47 1.03

Other 1-4 family residential��������������������������������������� 1.80 0.14 2.33 1.37 1.32 1.06 0.75 2.06

Commercial and industrial loans ������������������������������������� 0.34 0.95 0.34 1.03 0.28 0.53 0.32 1.63

Loans to individuals���������������������������������������������������������� 1.26 1.11 1.36 1.43 1.13 1.36 0.76 1.52

Credit card loans ������������������������������������������������������� 1.15 1.10 1.27 1.14 1.19 1.82 0.56 1.15

Other loans to individuals ����������������������������������������� 1.37 1.22 1.52 1.45 1.12 1.00 0.82 1.55

All other loans and leases (including farm) ��������������������� 0.26 0.28 0.18 0.94 0.25 0.15 0.10 0.58

Total loans and leases������������������������������������������������������ 0.88 1.09 0.90 0.93 0.65 0.91 0.71 1.47

Percent of Loans Noncurrent**

All real estate loans ���������������������������������������������������������� 4.16 0.60 6.04 1.37 2.52 2.91 4.14 2.21

Construction and development.................................. 3.43 0

Nonfarm nonresidential��������������������������������������������� 1.78 4.11 1.20 1.99 1.74 1.51 11.89 2.38

Multifamily residential real estate ����������������������������� 0.74 0.00 0.47 0.69 0.81 0.67 3.19 1.03

Home equity loans����������������������������������������������������� 2.70 0.00 3.64 1.07 1.55 1.96 2.84 0.93

Other 1-4 family residential��������������������������������������� 6.85 0.50 10.21 1.30 3.92 3.28 3.26 1.88 

Commercial and industrial loans ������������������������������������� 0.60 0.90 0.54 1.51 0.68 0.80 0.81 1.58

Loans to individuals���������������������������������������������������������� 1.01 1.17 1.12 0.58 0.91 1.19 0.81 0.54

Credit card loans ������������������������������������������������������� 1.21 1.18 1.22 0.29 1.38 1.75 1.18 0.70

Other loans to individuals ����������������������������������������� 0.81 0.86 0.93 0.61 0.84 0.76 0.69 0.53

All other loans and leases (including farm) ��������������������� 0.28 0.17 0.33 0.43 0.38 0.14 0.09 0.65

Total loans and leases������������������������������������������������������ 2.46 1.14 2.62 1.14 1.81 2.60 1.56 1.84

Percent of Loans Charged-Off (net, YTD)

All real estate loans ���������������������������������������������������������� 0.24 0.07 0.35 0.05 0.21 0.22 0.43 0.05

Construction and development��������������������������������� 0.06 0.00 -0.21 -0.30 0.20 0.30 0.15 0.33 

Nonfarm nonresidential��������������������������������������������� 0.10 0.00 -0.03 0.09 0.14 0.05 -0.21 0.08 

Multifamily residential real estate ����������������������������� 0.01 0.00 0.01 0.16 0.02 0.02 -0.21 -1.97 

Home equity loans����������������������������������������������������� 0.72 0.00 0.83 -0.12 0.47 0.56 1.24 0.11

Other 1-4 family residential��������������������������������������� 0.25 0.06 0.35 0.10 0.28 0.22 0.19 0.09

Commercial and industrial loans ������������������������������������� 0.23 2.42 0.19 0.10 0.23 0.04 0.08 0.02

Loans to individuals���������������������������������������������������������� 2.05 3.11 2.73 0.39 0.98 0.92 0.87 0.35

Credit card loans ������������������������������������������������������� 3.26 3.18 3.48 1.11 3.63 1.25 2.16 1.72

Other loans to individuals ����������������������������������������� 0.83 1.56 1.42 0.33 0.58 0.63 0.47 0.24

All other loans and leases (including farm) ��������������������� 0.08 0.00 0.07 0.00 0.15 0.10 0.18 0.57

Total loans and leases������������������������������������������������������ 0.52 3.03 0.72 0.06 0.27 0.23 0.72 0.11

Loans Outstanding (in billions)

All real estate loans ���������������������������������������������������������� $4,075.5 $0.2 $476.6 $90.9 $2,060.7 $293.5 $25.5 $13.9 $59.

Construction and development��������������������������������� 214.3 0.0 6.3 4.5 155.8 6.9 0.3 0.

Nonfarm nonresidential��������������������������������������������� 1,117.7 0.0 37.1 24.8 802.5 28.2 1.8 5.1 

Multifamily residential real estate ����������������������������� 271.7 0.0 49.5 2.6 175.5 9.6 0.2 0.

Home equity loans����������������������������������������������������� 503.5 0.0 88.2 1.7 204.9 20.1 6.7 0.5

Other 1-4 family residential��������������������������������������� 1,822.3 0.2 237.3 23.4 688.1 227.3 16.4 6.2 

Commercial and industrial loans ������������������������������������� 1,614.3 35.9 274.3 18.8 793.2 16.4 6.2 2.6

Loans to individuals���������������������������������������������������������� 1,327.0 412.9 249.3 6.0 274.2 13.7 77.6 2.4

Credit card loans ������������������������������������������������������� 658.4 396.6 157.1 0.4 35.4 5.9 18.3 0.

Other loans to individuals ����������������������������������������� 668.6 16.3 92.2 5.5 238.7 7.7 59.2 2.2

All other loans and leases (including farm) ��������������������� 916.0 3.6 300.0 33.9 235.8 16.3 2.0 1.2

Total loans and leases (plus unearned income)�������������� 7,932.8 452.7 1,300.3 149.6 3,363.9 339.8 111.3 20.1 76

Memo: Other Real Estate Owned (in millions)

All other real estate owned����������������������������������������������� 29,366.6 1.2 3,076.8 612.5 16,733.6 1,345.9 148.2 232.0 670

Construction and development��������������������������������� 7,934.9 0.0 2.1 216.8 6,252.3 251.6 23.1 98.4 2

Nonfarm nonresidential��������������������������������������������� 6,695.0 0.0 61.4 229.3 5,029.4 137.0 42.2 81.0 2

Multifamily residential real estate ����������������������������� 696.3 0.0 6.0 21.7 522.7 18.2 0.4 5.1 

1-4 family residential ������������������������������������������������� 6,573.3 0.2 739.3 101.5 3,611.3 489.2 72.7 45.5 229

Farmland�������������������������������������������������������������������� 283.1 0.0 0.0 42.7 212.4 2.3 0.9 2.0

GNMA properties������������������������������������������������������� 7,126.1 0.0 2,213.0 0.4 1,105.7 447.5 8.9 0.0 0

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

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

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

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

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

exceed 25 percent of total assets

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

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

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

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

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

concentrations

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 11 2014, Volume 8, No. 2

Quarterly Banking Profile

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

Asset Size Distribution Geographic Regions*

March 31, 2014 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ������������������������������ 1.10 1.41 0.93 0.75 1.23 0.81 1.25 1.07 1.5

Construction and development������������������������ 0.70 0.91 0.82 0.66 0.66 0.88 0.86 0.59 0.6

Nonfarm nonresidential������������������������������������ 0.50 1.19 0.73 0.49 0.39 0.59 0.48 0.60 0.3

Multifamily residential real estate �������������������� 0.28 0.65 0.49 0.23 0.25 0.20 0.47 0.32 0.2

Home equity loans�������������������������������������������� 0.71 0.93 0.62 0.54 0.73 0.49 0.82 0.80 0.7

Other 1-4 family residential������������������������������ 1.80 1.88 1.32 1.29 1.96 1.23 1.86 1.67 2.7

Commercial and industrial loans ���������������������������� 0.34 1.38 0.79 0.43 0.29 0.40 0.37 0.39 0.2

Loans to individuals������������������������������������������������� 1.26 1.85 1.51 1.32 1.25 1.09 1.81 1.14 1.3

Credit card loans ���������������������������������������������� 1.15 1.81 1.35 1.60 1.13 0.97 1.61 0.98 1.3

Other loans to individuals �������������������������������� 1.37 1.85 1.52 1.19 1.37 1.42 1.91 1.20 1.4

All other loans and leases (including farm) ������������ 0.26 0.95 0.66 0.37 0.23 0.37 0.17 0.34 0.1

Total loans and leases��������������������������������������������� 0.88 1.38 0.92 0.72 0.89 0.77 1.00 0.83 1.0

Percent of Loans Noncurrent** 

All real estate loans ������������������������������������������������� 4.16 2.07 1.85 2.51 5.13 2.69 5.46 4.52 5.7

Construction and development������������������������ 3.43 4.16 4.02 3.76 2.97 4.79 3.92 3.45 2.8

Nonfarm nonresidential������������������������������������ 1.78 2.46 1.83 1.94 1.66 2.05 1.70 2.01 1.7

Multifamily residential real estate �������������������� 0.74 2.33 1.17 0.86 0.60 0.52 0.82 0.91 0.9

Home equity loans�������������������������������������������� 2.70 1.20 0.98 1.16 2.98 2.04 3.48 2.82 2.7

Other 1-4 family residential������������������������������ 6.85 1.98 1.74 3.70 8.28 3.71 8.45 7.52 9.9

Commercial and industrial loans ���������������������������� 0.60 1.83 1.52 1.05 0.46 0.77 0.47 0.65 0.5

Loans to individuals������������������������������������������������� 1.01 0.83 1.23 0.77 1.01 1.00 1.07 0.85 1.2

Credit card loans ���������������������������������������������� 1.21 0.93 1.12 1.57 1.20 1.05 1.55 1.16 1.2

Other loans to individuals �������������������������������� 0.81 0.83 1.24 0.42 0.81 0.87 0.84 0.75 1.1

All other loans and leases (including farm) ������������ 0.28 0.65 0.50 0.48 0.25 0.37 0.20 0.15 0.3

Total loans and leases��������������������������������������������� 2.46 1.80 1.71 2.05 2.63 1.78 3.14 2.58 3.1

Percent of Loans Charged-Off (net, YTD) 

All real estate loans ������������������������������������������������� 0.24 0.16 0.14 0.15 0.28 0.21 0.33 0.28 0.2

Construction and development������������������������ 0.06 0.45 0.16 0.10 -0.02 0.48 0.16 0.03 -0.35 

Nonfarm nonresidential������������������������������������ 0.10 0.21 0.13 0.14 0.07 0.14 0.15 0.15 0.0

Multifamily residential real estate �������������������� 0.01 -0.06 0.10 -0.01 0.00 -0.02 0.01 0.05 -0.0

Home equity loans�������������������������������������������� 0.72 0.28 0.17 0.28 0.80 0.43 1.00 0.69 0.8

Other 1-4 family residential������������������������������ 0.25 0.16 0.16 0.21 0.28 0.25 0.27 0.28 0.3

Commercial and industrial loans ���������������������������� 0.23 0.22 0.29 0.18 0.23 0.37 0.14 0.27 0.1

Loans to individuals������������������������������������������������� 2.05 0.46 0.68 1.57 2.12 2.40 1.87 1.25 2.6

Credit card loans ���������������������������������������������� 3.26 2.76 3.96 3.74 3.24 2.92 3.98 3.10 3.6

Other loans to individuals �������������������������������� 0.83 0.44 0.46 0.58 0.87 0.95 0.81 0.63 1.3

All other loans and leases (including farm) ������������ 0.08 0.00 0.11 0.11 0.08 0.08 0.04 0.15 0.0

Total loans and leases��������������������������������������������� 0.52 0.18 0.18 0.26 0.62 0.75 0.47 0.38 0.6

Loans Outstanding (in billions) 

All real estate loans ������������������������������������������������� $4,075.5 $45.9 $605.8 $699.6 $2,724.2 $820.7 $918.3 $788.7 $807.9 $3

Construction and development������������������������ 214.3 2.7 49.8 53.7 108.1 40.3 48.2 34.0 32.

Nonfarm nonresidential������������������������������������ 1,117.7 12.7 241.3 289.3 574.3 256.0 231.1 184.8 166.4 

Multifamily residential real estate �������������������� 271.7 1.4 31.6 60.6 178.1 94.9 33.3 74.2 22.

Home equity loans�������������������������������������������� 503.5 1.2 27.6 44.8 429.9 90.3 131.8 127.1 107.

Other 1-4 family residential������������������������������ 1,822.3 20.5 214.7 234.8 1,352.3 335.2 463.4 348.6 390.6 

Commercial and industrial loans ���������������������������� 1,614.3 8.0 103.8 161.2 1,341.3 248.4 388.2 333.9 342.3 

Loans to individuals������������������������������������������������� 1,327.0 4.1 34.6 67.4 1,220.9 376.2 235.8 196.7 288.2

Credit card loans ���������������������������������������������� 658.4 0.0 2.2 20.7 635.5 274.4 76.6 48.0 161.

Other loans to individuals �������������������������������� 668.6 4.0 32.4 46.7 585.4 101.8 159.2 148.7 126.

All other loans and leases (including farm) ������������ 916.0 7.6 42.6 48.4 817.4 144.7 204.1 223.4 261.

Total loans and leases (plus unearned income)����� 7,932.8 65.6 786.8 976.6 6,103.8 1,589.9 1,746.4 1,542.8 1,699.6 

Memo: Other Real Estate Owned (in millions) 

All other real estate owned�������������������������������������� 29,366.6 835.5 7,699.5 6,216.4 14,615.2 3,470.7 6,785.7 7,357.9 6,575.6 3,46

Construction and development������������������������ 7,934.9 280.4 3,455.0 2,429.4 1,770.1 723.7 2,266.3 1,098.5 1,636.9 1,

Nonfarm nonresidential������������������������������������ 6,695.0 287.7 2,539.3 1,938.3 1,929.7 969.0 1,374.4 1,408.0 1,305.4 1,

Multifamily residential real estate �������������������� 696.3 32.5 213.9 176.5 273.5 200.8 98.4 144.9 139.

1-4 family residential ���������������������������������������� 6,573.3 220.2 1,339.3 1,263.7 3,750.1 1,279.8 1,666.0 1,668.5 946.6 

Farmland����������������������������������������������������������� 283.1 14.8 140.5 97.0 30.9 20.0 72.8 48.3 46.

GNMA properties���������������������������������������������� 7,126.1 0.0 11.6 311.5 6,803.0 276.4 1,307.8 2,989.8 2,443.

* 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 Islan

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
FDIC Quarterly 12 2014, Volume 8, No. 2

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

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

1st

Quarter 

2014

4th

Quarter 

2013

3rd 

Quarter 

2013

2nd 

Quarter 

2013

1st 

Quarter 

2013

% Change 

13Q1-

14Q1

Less 

Than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

Than 

$10 Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives����������������� 1,398 1,390 1,424 1,412 1,400 -0.1 72 855 372 9

Total assets of institutions reporting derivatives ���������� $13,233,953 $13,068,354 $12,906,608 $12,690,786 $12,689,035 4.3 $5,355 $357,844 $1,086,216 $11,784,53

Total deposits of institutions reporting derivatives������� 9,974,698 9,858,640 9,682,692 9,410,509 9,427,713 5.8 4,583 297,053 867,615 8,805,44

Total derivatives������������������������������������������������������������� 233,457,475 238,755,603 243,290,586 236,542,159 232,583,465 0.4 190 20,638 91,148 233,345,50

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 185,830,083 194,555,379 195,710,388 188,190,450 184,797,423 0.6 189 18,787 83,240 185,727,86

Foreign exchange*��������������������������������������������������������� 32,994,577 29,668,744 31,200,455 31,471,711 30,374,632 8.6 0 1,680 6,852 32,986,04

Equity ����������������������������������������������������������������������������� 2,151,169 2,077,309 2,191,416 2,130,468 2,064,904 4.2 0 73 415 2,150,68

Commodity & other (excluding credit derivatives)�������� 1,263,060 1,208,874 1,339,676 1,367,298 1,445,238 -12.6 0 5 220 1,262,83

Credit������������������������������������������������������������������������������ 11,218,586 11,245,297 12,848,651 13,382,231 13,901,267 -19.3 0 93 420 11,218,07

Total�������������������������������������������������������������������������������� 233,457,475 238,755,603 243,290,586 236,542,159 232,583,465 0.4 190 20,638 91,148 233,345,50

Derivative Contracts by Transaction Type 

Swaps ���������������������������������������������������������������������������� 139,451,119 150,608,677 150,075,780 141,036,599 137,818,904 1.2 47 7,389 49,558 139,394,12

Futures & forwards �������������������������������������������������������� 44,424,266 42,022,121 42,067,188 43,970,239 46,024,148 -3.5 44 6,926 22,456 44,394,84

Purchased options��������������������������������������������������������� 17,909,006 16,870,263 17,637,787 17,680,639 16,644,988 7.6 14 815 4,785 17,903,39

Written options��������������������������������������������������������������� 17,629,569 16,929,743 17,784,103 17,800,582 17,161,532 2.7 85 5,399 12,705 17,611,38

Total�������������������������������������������������������������������������������� 219,413,960 226,430,803 227,564,857 220,488,059 217,649,573 0.8 190 20,528 89,504 219,303,73

Fair Value of Derivative Contracts 

Interest rate contracts���������������������������������������������������� 72,730 71,270 64,832 60,694 67,678 7.5 1 40 56 72,63

Foreign exchange contracts������������������������������������������ 5,563 5,991 -10,390 -4,673 -6,685 N/M 0 0 -6 5,569

Equity contracts������������������������������������������������������������� 1,553 32 -1,928 1,396 -2,588 N/M 0 9 8 1,537

Commodity & other (excluding credit derivatives)�������� -893 1,350 1,181 1,298 -2,544 N/M 0 1 -4 -890

Credit derivatives as guarantor������������������������������������� 80,758 74,870 27,246 -8,729 -20,833 N/M 0 0 0 80,758

Credit derivatives as beneficiary����������������������������������� -77,327 -71,252 -22,672 13,888 25,373 N/M 0 0 -24 -77,303

Derivative Contracts by Maturity** 

Interest rate contracts ����������������������������� < 1 year 77,936,405 77,933,066 91,852,227 88,198,011 86,869,690 -10.3 41 5,237 17,252 77,913,87

 ������������������������������������������ 1-5 years 37,667,856 44,472,870 32,988,175 30,694,796 29,322,277 28.5 25 3,423 23,953 37,640,45

 ������������������������������������������ > 5 years 24,282,231 24,885,723 21,753,468 20,836,812 20,275,485 19.8 38 4,104 23,790 24,254,29

Foreign exchange contracts ������������������� < 1 year 20,099,306 18,349,410 18,975,694 19,247,580 18,646,641 7.8 0 1,249 4,232 20,093,82

 ������������������������������������������ 1-5 years 2,299,021 2,325,624 2,870,026 2,737,466 2,758,223 -16.6 0 0 93 2,298,92

 ������������������������������������������ > 5 years 974,381 1,029,302 1,503,977 1,456,229 1,427,702 -31.8 0 0 0 974,38

Equity contracts��������������������������������������� < 1 year 673,720 661,448 706,604 660,945 648,510 3.9 0 3 37 673,67

 ������������������������������������������ 1-5 years 305,141 292,486 311,790 271,219 255,625 19.4 0 12 112 305,01

 ������������������������������������������ > 5 years 89,804 135,907 88,294 80,891 74,515 20.5 0 23 18 89,76

Commodity & other contracts ����������������� < 1 year 379,469 338,091 375,292 424,508 479,201 -20.8 0 1 137 379,33

 ������������������������������������������ 1-5 years 140,984 163,812 175,069 163,093 179,141 -21.3 0 0 8 140,97

 ������������������������������������������ > 5 years 18,960 5,903 16,142 15,300 21,505 -11.8 0 0 0 18,96

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%)������������������� 23.5 26.1 27.1 30.5 32.6 0.1 0.3

Total potential future exposure to tier 1 capital (%)������ 56.7 58.7 62.4 62.8 62.3 0.1 0.3

Total exposure (credit equivalent amount) 

to tier 1 capital (%) ����������������������������������������������������� 80.3 84.8 89.5 93.3 94.9 0.2 0.6

Credit losses on derivatives***���������������������������������� 12.9 264.2 180.7 145.0 84.3 -84.7 0.0 0.

HELD FOR TRADING 

Number of institutions reporting derivatives����������������� 245 253 242 242 239 2.5 8 92 81 6

Total assets of institutions reporting derivatives ���������� 10,658,787 10,573,821 10,414,762 10,169,674 10,137,664 5.1 641 45,186 282,175 10,330,78

Total deposits of institutions reporting derivatives������� 8,023,514 7,985,223 7,805,731 7,533,192 7,537,825 6.4 545 37,451 223,522 7,761,99

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 182,694,013 190,617,697 191,932,848 184,197,615 180,965,139 1.0 25 2,320 21,682 182,669,98

Foreign exchange���������������������������������������������������������� 29,320,112 27,745,453 27,518,482 28,043,313 28,471,504 3.0 0 0 2,700 29,317,41

Equity ����������������������������������������������������������������������������� 2,135,205 2,060,585 2,175,912 2,116,168 2,051,707 4.1 0 0 1 2,135,20

Commodity & other�������������������������������������������������������� 1,256,235 1,200,547 1,330,681 1,356,542 1,428,759 -12.1 0 3 123 1,256,10

Total�������������������������������������������������������������������������������� 215,405,564 221,624,282 222,957,923 215,713,638 212,917,110 1.2 26 2,323 24,507 215,378,70

Trading Revenues: Cash & Derivative Instruments 

Interest rate�������������������������������������������������������������������� 1,775 475 3,085 2,762 2,216 -19.9 0 0 27 1,74

Foreign exchange���������������������������������������������������������� 2,201 1,532 499 3,139 3,190 -31.0 0 0 2 2,19

Equity ����������������������������������������������������������������������������� 607 470 230 922 830 -26.9 0 0 4 60

Commodity & other (including credit derivatives) �������� 1,531 483 656 452 1,253 22.2 0 0 0 1,53

Total trading revenues��������������������������������������������������� 6,114 2,960 4,469 7,275 7,489 -18.4 0 0 32 6,08

Share of Revenue 

Trading revenues to gross revenues (%) ���������������������� 5.4 2.6 3.9 6.0 6.2 0.0 0.

Trading revenues to net operating revenues (%)���������� 26.5 11.5 20.8 31.2 29.0 0.0 0.3

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives����������������� 1,280 1,254 1,287 1,272 1,264 1.3 64 785 340 9

Total assets of institutions reporting derivatives ���������� 12,928,122 12,757,901 12,611,978 12,299,488 12,355,856 4.6 4,715 328,413 993,839 11,601,15

Total deposits of institutions reporting derivatives������� 9,732,773 9,614,299 9,449,509 9,103,518 9,168,313 6.2 4,038 272,530 793,395 8,662,81

Derivative Contracts by Underlying 

Risk Exposure 

Interest rate�������������������������������������������������������������������� 3,136,071 3,937,682 3,777,540 3,992,835 3,832,284 -18.2 164 16,467 61,558 3,057,88

Foreign exchange���������������������������������������������������������� 849,536 843,789 804,895 756,530 870,503 -2.4 0 1,664 2,929 844,94

Equity ����������������������������������������������������������������������������� 15,964 16,724 15,504 14,300 13,197 21.0 0 73 414 15,47

Commodity & other�������������������������������������������������������� 6,825 8,327 8,995 10,756 16,479 -58.6 0 2 97 6,72

Total notional amount ���������������������������������������������������� 4,008,396 4,806,521 4,606,934 4,774,421 4,732,462 -15.3 164 18,205 64,997 3,925,02

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

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

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

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

in total assets
FDIC Quarterly 13 2014, Volume 8, No. 2

Quarterly Banking Profile

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

Asset Size Distribution

(dollar figures in millions)

1st 

Quarter

2014

4th 

Quarter

2013

3rd 

Quarter

2013

2nd 

Quarter

2013

1st 

Quarter

2013

% Change 

13Q1-

14Q1

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

Than $10 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities ����������������������������������������� 79 83 82 88 96 -17.7 1 30 17 3

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� $598,531 $610,275 $625,642 $634,877 $636,296 -5.9 $0 $2,824 $13,689 $582,01

Home equity loans��������������������������������������������������������������������������������������������� 41 42 44 46 47 -12.8 0 0 0 4

Credit card receivables�������������������������������������������������������������������������������������� 16,349 19,405 17,115 17,945 18,832 -13.2 0 161 0 16,18

Auto loans ���������������������������������������������������������������������������������������������������������� 4,735 4,676 4,708 3,860 4,505 5.1 0 711 0 4,02

Other consumer loans ��������������������������������������������������������������������������������������� 4,462 4,607 4,790 4,938 5,155 -13.4 0 2 0 4,46

Commercial and industrial loans����������������������������������������������������������������������� 1,881 1,987 3,945 4,472 4,025 -53.3 0 12 0 1,86

All other loans, leases, and other assets���������������������������������������������������������� 96,092 101,456 104,890 99,226 140,309 -31.5 0 3,507 5,040 87,54

Total securitized and sold������������������������������������������������������������������������������������������ 722,091 742,448 761,133 765,366 809,168 -10.8 0 7,218 18,730 696,14

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 2,895 2,794 2,927 3,086 3,254 -11.0 0 6 38 2,85

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

Credit card receivables�������������������������������������������������������������������������������������� 1,455 603 554 557 588 147.4 0 76 0 1,37

Auto loans ���������������������������������������������������������������������������������������������������������� 5 0 0 0 0 0.0 0 0 0 

Other consumer loans ��������������������������������������������������������������������������������������� 174 164 168 168 185 -5.9 0 0 0 17

Commercial and industrial loans����������������������������������������������������������������������� 38 27 20 33 41 -7.3 0 0 0 3

All other loans, leases, and other assets���������������������������������������������������������� 1,308 1,633 1,729 1,861 2,438 -46.3 0 1 0 1,30

Total credit exposure ������������������������������������������������������������������������������������������������� 5,876 5,221 5,397 5,705 6,506 -9.7 0 83 38 5,75

Total unused liquidity commitments provided to institution's own securitizations ��� 120 121 121 121 121 -0.8 0 0 0 12

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

1-4 family residential loans�������������������������������������������������������������������������������� 3.3 4.3 4.1 4.3 4.0 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 8.8 10.4 10.7 9.5 11.5 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 0.9 0.8 1.0 0.8 0.8 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.6 1.0 0.6 0.4 0.3 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 5.2 5.6 5.4 6.0 4.9 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.0 0.0 0.0 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 0.3 0.8 1.1 1.2 1.2 0.0 1.

Total loans, leases, and other assets ����������������������������������������������������������������������� 2.9 3.7 3.6 3.8 3.4 0.0 1.

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

1-4 family residential loans�������������������������������������������������������������������������������� 3.3 3.4 3.7 4.2 4.7 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 37.8 36.5 34.4 32.3 31.7 0.0 0.0

Credit card receivables�������������������������������������������������������������������������������������� 0.7 0.6 0.6 0.4 0.4 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.1 0.1 0.0 0.0 0.0 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 6.7 7.3 7.1 6.3 6.9 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.0 0.0 0.0 0.0 4.

All other loans, leases, and other assets���������������������������������������������������������� 8.7 9.2 8.9 10.2 8.8 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 3.9 4.1 4.3 4.9 5.3 0.0 0.

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans�������������������������������������������������������������������������������� 0.2 0.9 0.7 0.5 0.3 0.0 0.

Home equity loans��������������������������������������������������������������������������������������������� -0.1 0.2 0.3 0.2 0.3 0.0 0.0

Credit card receivables�������������������������������������������������������������������������������������� 0.6 2.2 2.0 1.3 0.6 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.0 0.3 0.1 0.1 0.1 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 0.2 0.9 0.7 0.4 0.2 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.0 0.0 0.0 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 0.7 0.9 0.6 0.5 0.1 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 0.2 0.9 0.7 0.5 0.3 0.0 0.

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

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

Credit card receivables�������������������������������������������������������������������������������������� 13,116 12,850 13,451 13,076 11,868 10.5 0 257 0 12,85

Commercial and industrial loans����������������������������������������������������������������������� 2 3 3 3 0 0.0 0 2 0 

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

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

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

Commercial and industrial loans����������������������������������������������������������������������� 48 52 0 0 0 0.0 0 0 0 4

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales������������������������������������������������������������ 1,086 1,083 1,066 1,065 1,059 2.5 149 718 171 4

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 43,650 46,443 48,349 48,783 50,644 -13.8 1,712 13,540 7,842 20,55

Home equity, credit card receivables, auto, and other consumer loans ��������� 755 776 802 829 852 -11.4 0 14 6 73

Commercial and industrial loans����������������������������������������������������������������������� 69 62 64 71 74 -6.8 0 23 40 

All other loans, leases, and other assets���������������������������������������������������������� 65,974 67,794 62,143 63,988 64,769 1.9 2 61 199 65,71

Total sold and not securitized������������������������������������������������������������������������������������ 110,448 115,074 111,358 113,671 116,339 -5.1 1,713 13,639 8,087 87,00

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 9,529 10,727 11,607 12,225 13,152 -27.5 110 1,981 2,669 4,76

Home equity, credit card receivables, auto, and other consumer loans ��������� 155 160 156 151 167 -7.2 0 14 3 13

Commercial and industrial loans����������������������������������������������������������������������� 33 27 29 34 36 -8.3 0 23 10 

All other loans, leases, and other assets���������������������������������������������������������� 16,970 17,058 15,316 15,360 15,216 11.5 2 18 55 16,89

Total credit exposure ������������������������������������������������������������������������������������������������� 26,687 27,973 27,109 27,769 28,571 -6.6 112 2,035 2,738 21,80

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others ������� 139 148 154 157 167 -16.8 14 78 28 1

Total credit exposure ������������������������������������������������������������������������������������������������� 42,058 44,707 44,848 45,095 48,946 -14.1 12 194 347 41,50

Total unused liquidity commitments ������������������������������������������������������������������������� 1,017 981 923 828 673 51.1 0 0 0 1,01

Other

Assets serviced for others*��������������������������������������������������������������������������������������� 4,557,964 4,712,508 4,773,340 4,885,219 5,186,035 -12.1 5,373 158,848 287,074 4,106,67

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others������������������ 12,110 12,317 13,049 11,316 10,925 10.8 5 0 3 12,10

Unused liquidity commitments to conduits sponsored by institutions 

 and others������������������������������������������������������������������������������������������������������� 30,515 31,113 40,363 51,893 63,355 -51.8 0 0 798 29,71

Net servicing income (for the quarter)���������������������������������������������������������������������� 2,141 4,627 3,182 5,827 4,218 -49.2 8 184 155 1,79

Net securitization income (for the quarter)��������������������������������������������������������������� 283 395 352 273 394 -28.2 0 8 8 26

Total credit exposure to Tier 1 capital (%)** ������������������������������������������������������������� 5.4 5.8 5.9 6.0 6.5 0.9 1.

* 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
FDIC Quarterly 14 2014, Volume 8, No. 2

Community Banks Represent 93 Percent of 

Insured Institutions

In December 2012, the FDIC released the Community 

Banking Study which examined institutions that provide 

traditional, relationship-based banking services in their 

communities. Based on criteria developed for the study, 

there were 6,234 community banks (93 percent of all 

FDIC-insured institutions) in the first quarter of 2014 

with assets of $2.0 trillion (14 percent of industry 

assets). This new section of the Quarterly Banking Profile

will provide insight into the condition and performance 

of this important part of the banking industry.

Earnings Down 1.5 Percent From a Year Ago, 

Far Less Than the Industry Decline

Community banks reported net income of $4.4 billion, 

down $67 million (1.5 percent) from first quarter 2013.1

Despite the decline, more than half (54 percent) of all 

community banks reported higher earnings from a year 

ago and the percentage reporting a quarterly loss fell to 

1

 Prior period dollar amounts used for comparisons are mergeradjusted, meaning the same institutions identified as community 

banks in the current quarter are used to determine dollar amounts in 

prior quarters, after taking into account acquisitions. Performance 

ratios are not merger-adjusted.

7.5 percent from 8.7 percent. The percentage decline in 

earnings at community banks was far less than the 7.6 

percent decline for the industry.

Net Interest Income Increases at a Faster Pace 

Than the Industry

Net interest income—which accounts for about 80 

percent of net operating revenue at community banks—

was $16.6 billion during the quarter, up $790 million 

(5 percent) from a year ago. Two-thirds (67 percent) of 

community banks reported a year-over-year increase. 

The average net interest margin at community banks of 

3.57 percent was 4 basis points higher than a year ago 

and 40 basis points above the industry average. Nearly 

76 percent of community banks reported net interest 

margins above the industry average of 3.17 percent.

Lower Noninterest Income and Higher Noninterest 

Expense Reduce Earnings

Noninterest income—which accounts for about 20 

percent of net operating revenue at community banks—

was $4.1 billion in the first quarter, down $562 million 

(12 percent) from first quarter 2013 as revenue from 

loan sales—including mortgage sales—declined by $657 

million (52 percent) from a year ago. Like community 

■ Community Banks Earn $4.4 Billion in First Quarter 2014

■ Net Interest Income Up 5 Percent From a Year Ago, Boosted by Loan Growth

■ Loan Balances Rise During the Quarter, Outpacing Industry Growth

■ Asset Quality Indicators Show Continuing Improvement

■ Community Banks Account for 45 Percent of Small Loans to Businesses

COMMUNITY BANK PERFORMANCE

Contributors to the Year-Over-Year Change in Income

FDIC-Insured Community Banks

Billions of Dollars Positive Factor

Negative Factor

-0.07

0.79

-0.27

-0.56

0.32

-0.14

0.09

-$1.0

-$0.5

$0.0

$0.5

$1.0

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Source: FDIC. 

-2% +5% -33% -12% +2% -48% +8%

Chart 1 Chart 2

Net Interest Margin

Percent

3.53 3.57

3.27

3.17

3.0

3.5

4.0

2006 2007 2008 2009 2010 2011 2012 2013 2014

Community Banks

All Insured Institutions

Source: FDIC.
FDIC Quarterly 15 2014, Volume 8, No. 2

Quarterly Banking Profile

banks, the industry experienced an 11 percent yearover-year decline in noninterest income, driven by a 44 

percent decline in income from loan sales. Noninterest 

expense at community banks was $315 million (2.2 

percent) higher than a year earlier. Relative to total 

assets at community banks, noninterest expense 

declined to 0.72 percent from 0.73 percent a year ago, 

as assets grew at a faster pace than noninterest expense.

Loan Growth at Community Banks Higher 

Than the Industry

Total assets at community banks increased by $28 

billion (1.4 percent) from the previous quarter, as loan 

balances grew by $12.3 billion (0.9 percent). Community banks reported higher loan growth than the industry, which experienced 0.5 percent growth. Over 75 

percent of the increase in loan balances at community 

banks during the quarter was due to nonfarm nonresidential real estate loans (up $5.8 billion or 1.5 percent) 

and commercial and industrial loans (up $3.6 billion or 

2.0 percent). Year-over-year loan growth at community 

banks of 6.6 percent also outpaced the industry at 3.6 

percent. Total unused loan commitments at community 

banks increased by $12.1 billion (5.2 percent) during the 

quarter to $245 billion, indicating the potential for additional on-balance sheet loan growth in future quarters.

Community Banks Hold 45 Percent of Small Loans 

to Businesses

Small loans to businesses—loans to commercial borrowers up to $1 million, and farm loans up to $500,000—at 

community banks totaled $296.1 billion in the first 

quarter, down by $920 million (0.3 percent) from the 

prior quarter but up by $8.2 billion (2.9 percent) from a 

year ago. Commercial and industrial loans increased by 

$1.4 billion (1.6 percent) from last quarter, while agricultural production loans fell by $2.8 billion (10.5 

percent). Over two-thirds (68 percent) of the year-overyear increase in small loans to businesses was driven by 

improvement in commercial and industrial loans, and 

nonfarm nonresidential real estate loans.

Noncurrent Loan Rate at Community Banks Declines 

for 16 Consecutive Quarters

Loan performance at community banks continued to 

improve, as the noncurrent loan rate and the net-charge 

off rate both declined from the previous quarter and a 

year ago. Noncurrent loans (those 90+ days past due or 

in nonaccrual status) totaled $22 billion, down $6.2 

billion (22 percent) from a year ago. Over 60 percent of 

community banks reported a decline in noncurrent 

loans relative to a year ago. The noncurrent rate was 

1.68 percent in the first quarter, its lowest level since 

the first quarter of 2008. The noncurrent rate fell 11 

basis points from the previous quarter and 65 basis 

points from a year ago, and it is 78 basis points below 

the industry rate of 2.46 percent. The coverage ratio 

(loan loss reserves relative to noncurrent loans) for 

community banks improved for a 10th consecutive quarter, rising from 87.4 percent to 91.2 percent despite a 

small ($55 million or 0.3 percent) decline in reserves 

during the quarter. The coverage ratio at community 

banks is well above the industry average of 67.8 percent.

Author: Benjamin Tikvina, Economic Analyst 

Division of Insurance and Research

(202) 898-6578

Change in Loan Balances and Unused Commitments

FDIC-Insured Community Banks

Source: FDIC. 

23.8

15.7

4.9

10.0

4.3

2.4

0.4

13.7

7.4

5.8

3.6

1.7 1.1 -3.5 -0.1 0.0

3.0 2.5

Change 1Q 2013 - 1Q 2014

Change 4Q 2013 - 1Q 2014

Billions of Dollars

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential RE

C&I

Loans

1-to-4

Family

Residential RE

C&D

Loans

Agricultural

Production

Loans

Loans to

Individuals

Home

Equity

Real Estate

(CRE & C&D)

C&I

Loans

Chart 3 Chart 4

Noncurrent Loan Rates

FDIC-Insured Community Banks

Percent of Loan Portfolio Noncurrent

0

2

4

6

8

10

12

14

16

2006 2007 2008 2009 2010 2011 2012 2013 2014

C&D Loans

Nonfarm Nonresidential RE

1-to-4 Family RE

C&I Loans

Home Equity

Credit Cards

Source: FDIC.
FDIC Quarterly 16 2014, Volume 8, No. 2

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

2014* 2013* 2013 2012 2011 2010 2009

Return on assets (%)������������������������������������������������������������������������������������������������������ 0.87 0.89 0.90 0.83 0.55 0.2

Return on equity (%)������������������������������������������������������������������������������������������������������� 8.03 8.15 8.30 7.66 5.17 2.0

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 10.50 10.29 10.44 10.18 9.98 9.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 1.62 2.17 1.72 2.27 2.84 3.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 0.17 0.29 0.31 0.59 0.87 1.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 1.20 0.78 0.25 2.24 1.47 -2.

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.57 3.53 3.59 3.67 3.74 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 0.65 13.69 14.99 56.45 204.41 204.92 

Number of institutions reporting������������������������������������������������������������������������������������� 6,234 6,489 6,307 6,543 6,800 7,017 7,254

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 7.49 8.66 8.37 11.17 16.35 22.1

* Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 3

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

(dollar figures in millions)  1st Quarter

2014

4th Quarter

2013

1st Quarter

2013

%Change 

13Q1-14Q1

Number of institutions reporting������������������������������������������������������������������������������������� 6,234 6,307 6,489 -3.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 449,924 453,462 459,761 -2.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $2,035,169 $2,019,280 $2,010,959 1.

Loans secured by real estate���������������������������������������������������������������������������������� 999,115 994,247 965,688 3.

 1-4 Family residential mortgages �������������������������������������������������������������������� 349,772 349,691 345,124 1.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 394,568 392,763 382,382 3.

 Construction and development������������������������������������������������������������������������ 77,825 77,372 75,410 3.

 Home equity lines��������������������������������������������������������������������������������������������� 47,476 47,830 49,314 -3.

Commercial & industrial loans �������������������������������������������������������������������������������� 182,169 179,673 171,298 6.

Loans to individuals������������������������������������������������������������������������������������������������� 55,442 55,646 53,304 4.

 Credit cards ������������������������������������������������������������������������������������������������������ 1,766 1,850 1,938 -8.

Farm loans��������������������������������������������������������������������������������������������������������������� 39,716 43,290 35,677 11.

Other loans & leases����������������������������������������������������������������������������������������������� 27,975 27,894 25,894 8.

Less: Unearned income ������������������������������������������������������������������������������������������ 553 554 523 5.

Total loans & leases ������������������������������������������������������������������������������������������������ 1,303,885 1,300,196 1,251,338 4.

Less: Reserve for losses����������������������������������������������������������������������������������������� 20,020 20,285 21,586 -7.

Net loans and leases����������������������������������������������������������������������������������������������� 1,283,865 1,279,911 1,229,752 4.

Securities����������������������������������������������������������������������������������������������������������������� 463,857 461,702 471,985 -1.

Other real estate owned������������������������������������������������������������������������������������������ 10,822 11,362 14,284 -24.

Goodwill and other intangibles ������������������������������������������������������������������������������� 12,681 12,647 11,632 9.

All other assets�������������������������������������������������������������������������������������������������������� 263,946 253,657 283,306 -6.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 2,035,169 2,019,280 2,010,959 1.

Deposits������������������������������������������������������������������������������������������������������������������� 1,688,056 1,669,232 1,669,753 1.

 Domestic office deposits���������������������������������������������������������������������������������� 1,687,825 1,668,991 1,669,553 1.

 Foreign office deposits������������������������������������������������������������������������������������� 231 241 200 15.

 Brokered deposits �������������������������������������������������������������������������������������������� 56,078 53,578 51,924 8.

Estimated insured deposits������������������������������������������������������������������������������������� 1,326,886 1,314,925 1,338,259 -0.

Other borrowed funds ��������������������������������������������������������������������������������������������� 111,543 118,397 103,972 7.

Subordinated debt��������������������������������������������������������������������������������������������������� 432 447 553 -21.

All other liabilities ���������������������������������������������������������������������������������������������������� 14,223 14,296 16,144 -11.

Total equity capital (includes minority interests)���������������������������������������������������� 220,916 216,908 220,538 0.

 Bank equity capital������������������������������������������������������������������������������������������� 220,770 216,765 220,373 0.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 10,850 10,763 12,007 -9.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 21,954 23,219 29,121 -24.

Restructured loans and leases �������������������������������������������������������������������������������������� 11,499 12,503 12,914 -11.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 204,670 203,863 214,307 -4.

Earning assets���������������������������������������������������������������������������������������������������������������� 1,876,464 1,860,414 1,854,720 1.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 80,224 83,896 70,571 13.

Unused loan commitments��������������������������������������������������������������������������������������������� 244,787 234,091 241,981 1.

Trust assets��������������������������������������������������������������������������������������������������������������������� 237,443 278,654 228,276 4.

Assets securitized and sold ������������������������������������������������������������������������������������������� 15,169 14,862 16,173 -6.

Notional amount of derivatives��������������������������������������������������������������������������������������� 44,487 40,598 54,196 -17.

INCOME DATA

Full Year

 2013

Full Year

 2012 %Change

1st Quarter 

2014

1st Quarter 

2013

%Change 

13Q1-14Q1

Total interest income ������������������������������������������������������������������� $75,772 $79,518 -4.7 $18,927 $19,120 -1

Total interest expense ����������������������������������������������������������������� 10,346 13,457 -23.12 2,330 2,808 -17

Net interest income �������������������������������������������������������������� 65,425 66,061 -1.0 16,597 16,313 1

Provision for loan and lease losses �������������������������������������������� 3,151 6,572 -52.1 549 863 -36

Total noninterest income������������������������������������������������������������� 18,579 18,688 -0.6 4,148 4,879 -15

Total noninterest expense ����������������������������������������������������������� 59,137 59,082 0.1 14,698 14,958 -1

Securities gains (losses)������������������������������������������������������������� 562 1,517 -63.0 145 290 -50

Applicable income taxes ������������������������������������������������������������� 4,522 4,284 5.5 1,267 1,194 6

Extraordinary gains, net�������������������������������������������������������������� 43 -10 -521.9 5 2 123

Total net income (includes minority interests)��������������������� 17,800 16,318 9.1 4,382 4,469 -2

 Bank net income������������������������������������������������������������ 17,777 16,289 9.1 4,378 4,463 -1

Net charge-offs���������������������������������������������������������������������������� 3,947 7,195 -45.1 542 921 -41

Cash dividends ���������������������������������������������������������������������������� 8,705 8,951 -2.8 2,092 1,765 18

Retained earnings ����������������������������������������������������������������������� 9,072 7,337 23.6 2,286 2,698 -15

Net operating income����������������������������������������������������������� 17,320 15,062 15.0 4,267 4,239 0

N/M - Not Meaningful
FDIC Quarterly 17 2014, Volume 8, No. 2

Quarterly Banking Profile

TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks

First Quarter 2014

(dollar figures in millions)

Geographic Regions*

All Community Banks New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting����������������������������������� 6,234 730 783 1,392 1,576 1,328 425

Total employees (full-time equivalent)������������������������� 449,924 87,366 59,299 97,735 72,162 97,461 35,901

CONDITION DATA

Total assets������������������������������������������������������������������� $2,035,169 $503,960 $250,784 $394,761 $317,344 $397,693 $170,627

Loans secured by real estate�������������������������������� 999,115 284,931 132,024 194,371 135,188 171,196 81,405

 1-4 Family residential mortgages ������������������ 349,772 118,093 41,271 71,443 44,147 56,568 18,251

 Nonfarm nonresidential���������������������������������� 394,568 101,466 59,032 73,023 46,478 71,982 42,586

 Construction and development���������������������� 77,825 13,871 14,263 11,450 9,850 22,163 6,226

 Home equity lines������������������������������������������� 47,476 15,591 7,737 11,099 4,243 4,261 4,545

Commercial & industrial loans ������������������������������ 182,169 40,249 18,849 35,710 29,848 40,861 16,654

Loans to individuals����������������������������������������������� 55,442 10,338 7,162 11,278 9,234 13,388 4,041

 Credit cards ���������������������������������������������������� 1,766 202 134 444 395 317 275

Farm loans������������������������������������������������������������� 39,716 451 936 6,233 22,464 7,386 2,246

Other loans & leases��������������������������������������������� 27,975 7,504 1,877 5,173 4,837 5,766 2,818

Less: Unearned income ���������������������������������������� 553 141 97 62 25 116 112

Total loans & leases ���������������������������������������������� 1,303,885 343,333 160,773 252,702 201,545 238,480 107,051

Less: Reserve for losses��������������������������������������� 20,020 4,302 2,727 4,345 3,120 3,569 1,956

Net loans and leases��������������������������������������������� 1,283,865 339,031 158,046 248,357 198,425 234,911 105,095

Securities��������������������������������������������������������������� 463,857 107,568 51,543 91,349 75,870 100,763 36,763

Other real estate owned���������������������������������������� 10,822 1,249 2,839 2,262 1,728 1,997 748

Goodwill and other intangibles ����������������������������� 12,681 4,101 1,266 2,458 1,686 2,288 882

All other assets������������������������������������������������������ 263,946 52,011 37,091 50,335 39,635 57,735 27,139

Total liabilities and capital �������������������������������������������� 2,035,169 503,960 250,784 394,761 317,344 397,693 170,627

Deposits����������������������������������������������������������������� 1,688,056 400,967 210,792 330,825 264,454 338,556 142,461

 Domestic office deposits�������������������������������� 1,687,825 400,849 210,725 330,798 264,454 338,556 142,443

 Foreign office deposits����������������������������������� 231 119 67 27 0 0 18

 Brokered deposits ������������������������������������������ 56,078 15,968 6,635 11,929 8,119 9,096 4,332

 Estimated insured deposits ��������������������������� 1,326,886 310,130 166,308 272,848 215,373 255,482 106,744

Other borrowed funds ������������������������������������������� 111,543 43,105 11,221 18,550 17,374 14,679 6,613

Subordinated debt������������������������������������������������� 432 207 68 103 7 5 43

All other liabilities �������������������������������������������������� 14,223 4,552 1,549 2,701 1,722 2,290 1,409

Total equity capital (includes minority interests)�� 220,916 55,128 27,155 42,582 33,788 42,162 20,100

 Bank equity capital����������������������������������������� 220,770 55,082 27,146 42,527 33,787 42,131 20,098

Loans and leases 30-89 days past due����������������������� 10,850 2,802 1,709 2,242 1,529 2,069 500

Noncurrent loans and leases ��������������������������������������� 21,954 6,012 3,954 5,167 2,198 3,003 1,619

Restructured loans and leases ������������������������������������ 11,499 2,375 2,163 3,107 1,364 1,478 1,012

Mortgage-backed securities ���������������������������������������� 204,670 59,450 23,029 37,146 26,881 39,732 18,433

Earning assets�������������������������������������������������������������� 1,876,464 467,786 228,645 363,485 293,212 365,542 157,793

FHLB Advances������������������������������������������������������������ 80,224 33,696 8,265 12,454 11,962 10,397 3,449

Unused loan commitments������������������������������������������� 244,787 59,555 28,487 46,749 42,137 43,994 23,865

Trust assets������������������������������������������������������������������� 237,443 53,530 8,614 66,692 60,863 37,605 10,138

Assets securitized and sold ����������������������������������������� 15,169 3,063 516 6,140 4,183 531 736

Notional amount of derivatives������������������������������������� 44,487 15,194 5,441 9,794 5,157 6,946 1,955

INCOME DATA

Total interest income ���������������������������������������������������� $18,927 $4,542 $2,439 $3,612 $2,952 $3,794 $1,588

Total interest expense �������������������������������������������������� 2,330 690 307 443 376 388 126

Net interest income ����������������������������������������������� 16,597 3,853 2,132 3,170 2,576 3,406 1,461

Provision for loan and lease losses ����������������������������� 549 159 66 145 62 116 1

Total noninterest income���������������������������������������������� 4,148 760 469 1,132 633 814 340

Total noninterest expense �������������������������������������������� 14,698 3,278 1,973 3,027 2,171 2,969 1,279

Securities gains (losses)���������������������������������������������� 145 66 16 16 19 17 11

Applicable income taxes ���������������������������������������������� 1,267 385 148 282 163 152 137

Extraordinary gains, net����������������������������������������������� 5 0 1 0 3 1 0

Total net income (includes minority interests)������ 4,382 857 430 863 835 1,002 395

 Bank net income��������������������������������������������� 4,378 856 430 861 835 1,002 395

Net charge-offs������������������������������������������������������������� 542 135 90 167 54 75 22

Cash dividends ������������������������������������������������������������� 2,092 169 157 435 491 533 307

Retained earnings �������������������������������������������������������� 2,286 687 273 426 344 469 88

Net operating income�������������������������������������������� 4,267 808 417 850 818 987 387

* See Table V-A (page 11) for explanations
FDIC Quarterly 18 2014, Volume 8, No. 2

Table IV-B. First Quarter 2014, FDIC-Insured Community Banks

All Community Banks First Quarter 2014, Geographic Regions*

1st Quarter 

2014

4th Quarter 

2013 New York Atlanta Chicago Kansas City Dallas San Francisco

Performance ratios (annualized, %)

Yield on earning assets�������������������������������������������������� 4.07 4.18 3.92 4.31 4.00 4.05 4

Cost of funding earning assets �������������������������������������� 0.50 0.53 0.60 0.54 0.49 0.52 0

Net interest margin�������������������������������������������������� 3.57 3.65 3.32 3.76 3.51 3.53 3

Noninterest income to assets����������������������������������������� 0.82 0.84 0.61 0.75 1.15 0.80 0

Noninterest expense to assets��������������������������������������� 2.91 3.07 2.62 3.18 3.08 2.75 3

Loan and lease loss provision to assets������������������������ 0.11 0.15 0.13 0.11 0.15 0.08 0

Net operating income to assets ������������������������������������� 0.85 0.80 0.65 0.67 0.87 1.04 1

Pretax return on assets �������������������������������������������������� 1.12 0.98 0.99 0.93 1.16 1.26 1

Return on assets������������������������������������������������������������� 0.87 0.80 0.69 0.69 0.88 1.06 1

Return on equity ������������������������������������������������������������� 8.03 7.42 6.29 6.42 8.21 10.00 9

Net charge-offs to loans and leases������������������������������ 0.17 0.35 0.16 0.22 0.26 0.11 0

Loan and lease loss provision to net charge-offs���������� 101.17 68.23 117.57 73.30 86.92 114.07 154

Efficiency ratio ���������������������������������������������������������������� 70.52 71.90 70.70 75.44 70.05 67.30 70.

Net interest income to operating revenue���������������������� 80.00 79.96 83.52 81.98 73.69 80.26 80.

% of unprofitable institutions������������������������������������������ 7.49 13.11 8.49 11.88 8.33 5.20 5.

% of institutions with earnings gains������������������������������ 54.03 52.81 49.86 58.24 48.42 56.35 56.

Table V-B. Full Year 2013, FDIC-Insured Community Banks

All Community Banks Full Year 2013, Geographic Regions*

Full Year

 2013

Full Year 

2012 New York Atlanta Chicago Kansas City Dallas San Francisco

Performance ratios (%)

Yield on earning assets�������������������������������������������������� 4.16 4.42 3.99 4.39 4.11 4.13 4

Cost of funding earning assets �������������������������������������� 0.57 0.75 0.66 0.62 0.57 0.59 0

Net interest margin�������������������������������������������������� 3.59 3.67 3.33 3.77 3.54 3.54 3

Noninterest income to assets����������������������������������������� 0.94 0.95 0.72 0.84 1.27 0.91 0

Noninterest expense to assets��������������������������������������� 2.99 3.01 2.70 3.30 3.14 2.81 3

Loan and lease loss provision to assets������������������������ 0.16 0.34 0.18 0.17 0.20 0.12 0

Net operating income to assets ������������������������������������� 0.87 0.77 0.65 0.61 0.95 1.05 1

Pretax return on assets �������������������������������������������������� 1.13 1.05 0.99 0.83 1.22 1.27 1

Return on assets������������������������������������������������������������� 0.90 0.83 0.69 0.63 0.97 1.07 1

Return on equity ������������������������������������������������������������� 8.30 7.66 6.29 5.86 9.16 10.00 9

Net charge-offs to loans and leases������������������������������ 0.31 0.59 0.25 0.47 0.48 0.20 0

Loan and lease loss provision to net charge-offs���������� 79.84 91.35 109.94 55.71 66.68 93.50 95.

Efficiency ratio ���������������������������������������������������������������� 69.85 69.25 70.50 75.29 68.86 66.91 68.

Net interest income to operating revenue���������������������� 77.88 77.95 80.98 80.40 71.91 78.27 78.

% of unprofitable institutions������������������������������������������ 8.37 11.17 10.72 14.86 9.54 4.47 5.

% of institutions with earnings gains������������������������������ 53.72 67.31 49.39 62.17 50.11 51.76 54.

* See Table V-A (page 11) for explanations
FDIC Quarterly 19 2014, Volume 8, No. 2

Quarterly Banking Profile

Table VI-B. Loan Performance, FDIC-Insured Community Banks

March 31, 2014

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 ������������������������������������������� 0.83 0.77 1.08 0.96 0.73 0.

Construction and development������������������������������������� 0.78 0.96 0.94 0.77 0.73 0.

Nonfarm nonresidential������������������������������������������������� 0.64 0.60 0.80 0.83 0.55 0.

Multifamily residential real estate ��������������������������������� 0.33 0.23 0.42 0.63 0.27 0.

Home equity loans��������������������������������������������������������� 0.58 0.60 0.73 0.56 0.55 0.

Other 1-4 family residential������������������������������������������� 1.22 1.07 1.66 1.32 1.04 1.

Commercial and industrial loans ����������������������������������������� 0.68 0.73 0.74 0.62 0.76 0.

Loans to individuals�������������������������������������������������������������� 1.60 2.79 1.83 1.03 1.09 1.

Credit card loans ����������������������������������������������������������� 1.47 2.73 1.37 1.02 2.10 0.

Other loans to individuals ��������������������������������������������� 1.61 2.79 1.84 1.03 1.04 1.

All other loans and leases (including farm) ������������������������� 0.62 0.23 0.61 0.36 0.80 0.

Total loans and leases���������������������������������������������������������� 0.83 0.82 1.06 0.89 0.76 0.

Percent of Loans Noncurrent**

All loans secured by real estate ������������������������������������������� 1.87 1.89 2.60 2.31 1.23 1.

Construction and development������������������������������������� 3.93 4.11 6.47 5.01 3.21 2.

Nonfarm nonresidential������������������������������������������������� 1.83 1.82 2.23 2.44 1.40 1.

Multifamily residential real estate ��������������������������������� 0.86 0.44 1.73 1.75 0.77 0.

Home equity loans��������������������������������������������������������� 1.00 1.07 1.00 1.25 0.55 0.

Other 1-4 family residential������������������������������������������� 1.90 2.20 2.21 2.25 1.13 1.

Commercial and industrial loans ����������������������������������������� 1.34 1.27 1.53 1.53 1.32 1.

Loans to individuals�������������������������������������������������������������� 0.95 0.93 2.84 0.49 0.56 0.

Credit card loans ����������������������������������������������������������� 0.99 2.09 2.06 0.70 1.01 0.

Other loans to individuals ��������������������������������������������� 0.94 0.91 2.85 0.49 0.54 0.

All other loans and leases (including farm) ������������������������� 0.46 0.25 1.00 0.60 0.35 0.

Total loans and leases���������������������������������������������������������� 1.68 1.75 2.46 2.04 1.09 1.

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate ������������������������������������������� 0.14 0.12 0.20 0.25 0.08 0.

Construction and development������������������������������������� 0.18 0.37 0.45 0.31 -0.03 0.0

Nonfarm nonresidential������������������������������������������������� 0.14 0.10 0.20 0.29 0.10 0.

Multifamily residential real estate ��������������������������������� 0.09 0.02 0.07 0.21 0.08 0.3

Home equity loans��������������������������������������������������������� 0.17 0.15 0.15 0.35 0.13 0.0

Other 1-4 family residential������������������������������������������� 0.15 0.14 0.17 0.24 0.12 0.

Commercial and industrial loans ����������������������������������������� 0.22 0.28 0.22 0.32 0.14 0.

Loans to individuals�������������������������������������������������������������� 0.65 0.72 0.71 0.51 0.65 0.

Credit card loans ����������������������������������������������������������� 4.28 5.70 1.03 3.59 9.09 1.

Other loans to individuals ��������������������������������������������� 0.53 0.61 0.70 0.38 0.26 0.

All other loans and leases (including farm) ������������������������� 0.10 0.07 0.13 0.13 0.02 0.

Total loans and leases���������������������������������������������������������� 0.17 0.16 0.22 0.26 0.11 0.

Loans Outstanding (in billions)

All loans secured by real estate ������������������������������������������� $999.1 $284.9 $132.0 $194.4 $135.2 $171.

Construction and development������������������������������������� 77.8 13.9 14.3 11.5 9.8 2

Nonfarm nonresidential������������������������������������������������� 394.6 101.5 59.0 73.0 46.5 72

Multifamily residential real estate ��������������������������������� 73.7 34.5 5.7 13.9 6.7 

Home equity loans��������������������������������������������������������� 47.5 15.6 7.7 11.1 4.2 

Other 1-4 family residential������������������������������������������� 349.8 118.1 41.3 71.4 44.1 56

Commercial and industrial loans ����������������������������������������� 182.2 40.2 18.8 35.7 29.8 40

Loans to individuals�������������������������������������������������������������� 55.4 10.3 7.2 11.3 9.2 1

Credit card loans ����������������������������������������������������������� 1.8 0.2 0.1 0.4 0.4 

Other loans to individuals ��������������������������������������������� 53.7 10.1 7.0 10.8 8.8 1

All other loans and leases (including farm) ������������������������� 67.7 8.0 2.8 11.4 27.3 1

Total loans and leases���������������������������������������������������������� 1,304.4 343.5 160.9 252.8 201.6 238.

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments ��������������������������������������������� 244,787 59,555 28,487 46,749 42,137 43,994 23,865

Construction and development: 1-4 family residential �� 17,461 3,594 3,417 1,854 2,050 5,060 1,487

Construction and development: CRE and other ����������� 39,709 12,312 5,428 5,974 4,719 8,282 2,994

Commercial and industrial �������������������������������������������� 85,053 19,714 8,617 17,854 13,797 16,143 8,928

* See Table V-A (page 11) for explanations

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 20 2014, Volume 8, No. 2

Total assets of the 6,730 FDIC-insured institutions 

increased by 1.2 percent ($178.3 billion) during the 

first quarter of 2014. Total deposits increased by 1.1 

percent ($125.8 billion), domestic office deposits 

increased by 1.3 percent ($131.1 billion), and foreign 

office deposits decreased by 0.4 percent ($5.4 billion). 

Domestic noninterest-bearing deposits increased by 

1.8 percent ($46.4 billion) and savings deposits and 

interest-bearing checking accounts increased by 1.9 

percent ($105.6 billion), while domestic time deposits 

decreased by 1.3 percent ($20.8 billion). For the twelve 

months ending March 31, total domestic deposits grew 

by 5.3 percent ($495.5 billion), with interest-bearing 

deposits increasing by 4 percent ($279.1 billion) and 

noninterest-bearing deposits rising by 8.9 percent 

($216.4 billion).1 Foreign deposits increased by 0.2 

percent, other borrowed money increased by 9.5 

percent, while securities sold under agreements to 

repurchase declined by 11.2 percent over the same 

twelve-month period.2 At the end of the first quarter, 

domestic deposits funded 66.6 percent of industry assets, 

the largest share since the fourth quarter of 1993, when 

the share was 68 percent.

1

 Throughout the insurance fund discussion, FDIC-insured institutions 

include insured commercial banks and savings associations and, 

except where noted, exclude insured branches of foreign banks. 

2

 Other borrowed money includes FHLB advances, term federal funds, 

mortgage indebtedness, and other borrowings.

Total estimated insured deposits increased by 1.9 

percent from the prior quarter and by 2.1 percent from 

one year earlier.3 For institutions existing at the start 

and the end of the first quarter, insured deposits 

increased during the quarter at 4,932 institutions (73 

percent), decreased at 1,760 institutions (26 percent), 

and remained unchanged at 35 institutions.

The condition of the Deposit Insurance Fund (DIF) 

continues to improve. The DIF increased by $1.7 

billion during the first quarter to $48.9 billion. Assessment income of $2.4 billion was primarily responsible 

for the increase. Interest earned on investments of 

$45 million, unrealized gains on available-for-sale securities of $25 million, and other miscellaneous income of 

$9 million also added to the fund. Operating expenses 

of $422 million and provisions for insurance losses of 

$348 million partially offset the fund balance increase. 

During the first quarter of 2014, five insured institutions 

with combined assets of $718 million failed, at an estimated cost to the fund of $92 million. The DIF’s 

reserve ratio—the DIF fund balance as a percent of 

estimated insured deposits—was 0.80 percent as of the 

first quarter, up from 0.79 percent in the prior quarter 

and 0.60 percent one year earlier.

3

 Figures for estimated insured deposits in this discussion include 

insured branches of foreign banks, in addition to insured commercial 

banks and savings institutions.

■ Insured Deposits Grow by 1.9 Percent

■ DIF Reserve Ratio Rises 1 Basis Point to 0.80 Percent

■ Five Institutions Fail During First Quarter

INSURANCE FUND INDICATORS
FDIC Quarterly 21 2014, Volume 8, No. 2

Quarterly Banking Profile

Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets 

minus average tangible equity.4 Revisions to insurance 

assessment rates and risk-based pricing rules for large 

banks (banks with assets greater than $10 billion) also 

became effective on that date.5 Table 1 shows the distribution of the assessment base by institution asset size 

category as of the first quarter of 2014.

Dodd-Frank requires that, for at least five years, the 

FDIC must make available to the public the reserve 

ratio and the Designated Reserve Ratio (DRR) using 

4

 There is an additional adjustment to the assessment base for banker’s 

banks and custodial banks, as permitted under Dodd-Frank.

5

 The Fourth Quarter 2010 Quarterly Banking Profile includes a more 

detailed explanation of these changes.

both estimated insured deposits and the new assessment 

base. As of March 31, 2014, the FDIC reserve ratio 

would have been 0.38 percent using the new assessment 

base (compared to 0.80 percent using estimated insured 

deposits), and the 2 percent DRR using estimated 

insured deposits would have been 0.96 percent using 

the new assessment base.

Author: Kevin Brown, Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

Table 1

Distribution of the Assessment Base for FDIC-Insured Institutions* 

by Asset Size

Data as of March 31, 2014

Asset Size

Number of 

Institutions

Percent of 

Total Institutions

Assessment Base** 

($ Bil.)

Percent of 

Base

Less Than $1 Billion 6,058 90.0 $1,202.6 9.4 

$1 - $10 Billion 565 8.4 1,321.4 10.4 

$10 - $50 Billion 71 1.1 1,349.6 10.6 

$50 - $100 Billion 14 0.2 939.7 7.4 

Over $100 Billion 22 0.3 7,937.8 62.3 

Total 6,730 100.0 12,751.0 100.0 

* Excludes insured U.S. branches of foreign banks.

** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.
FDIC Quarterly 22 2014, Volume 8, No. 2

DIF Reserve Ratios

Percent of Insured Deposits

0.44

0.60

0.64

0.79

-0.02

0.06

0.12

0.17

0.22

0.32 0.35

0.68

0.80

3/11 9/11 3/12 9/12 3/13 9/13 3/14

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

1st 

Quarter 

2014

4th 

Quarter 

2013

3rd 

Quarter 

2013

2nd 

Quarter 

2013

1st 

Quarter 

2013

4th 

Quarter 

2012

3rd 

Quarter 

2012

2nd 

Quarter 

2012

1st 

Quarter 

2012

4th 

Quarter 

2011

3rd 

Quarter 

2011

2nd 

Quarter 

2011

1st 

Quarter 

2011

Beginning Fund Balance .. $47,191 $40,758 $37,871 $35,742 $32,958 $25,224 $22,693 $15,292 $11,827 $7,813 $3,916 -$1,023 -$7,352

Changes in Fund Balance:

Assessments earned .......... 2,393 2,224 2,339 2,526 2,645 2,937 2,833 2,933 3,694 3,209 3,642 3,163 3,484

Interest earned on 

investment securities ...... 45 23 34 54 -9 66 -8 81 20 33 30 37 28

Realized gain on sale of

investments...................... 0 302 156 0 0 0 0 0 0 0 0 0 0

Operating expenses ........... 422 436 298 439 436 469 442 407 460 334 433 463 395

Provision for insurance 

losses .............................. 348 -4,588 -539 -33 -499 -3,344 -84 -807 12 1,533 -763 -2,095 -3,089

All other income, 

net of expenses ............... 9 9 46 51 55 1,878 57 4,095 63 2,599 83 80 66

Unrealized gain/(loss) on 

available-for-sale 

securities ......................... 25 -277 71 -96 30 -22 7 -108 160 40 -188 27 57

Total fund balance change .. 1,702 6,433 2,887 2,129 2,784 7,734 2,531 7,401 3,465 4,014 3,897 4,939 6,329

Ending Fund Balance ....... 48,893 47,191 40,758 37,871 35,742 32,958 25,224 22,693 15,292 11,827 7,813 3,916 -1,023

Percent change from 

 four quarters earlier ....... 36.79 43.19 61.58 66.88 133.73 178.67 222.85 479.49 NM NM 

Reserve Ratio (%) ............. 0.80 0.79 0.68 0.64 0.60 0.44 0.35 0.32 0.22 0.17 0.

Estimated Insured 

Deposits** .......................... $6,123,766 $6,009,801 $5,969,906 $5,953,332 $6,000,446 $7,406,525 $7,249,849 $7,083,434 $7,032,875 $6,974,690 $6,756,302 $6,524,750 $6,380,407

Percent change from 

 four quarters earlier ....... 2.06 -18.86 -17.65 -15.95 -14.68 6.19 7.30 8.56 10.23 10.67 24.6

Domestic Deposits ........... $9,962,466 $9,825,321 $9,630,392 $9,424,433 $9,454,580 $9,474,585 $9,084,803 $8,937,725 $8,848,706 $8,782,134 $8,526,713 $8,244,900 $8,006,898

Percent change from 

 four quarters earlier ....... 5.37 3.70 6.01 5.45 6.85 7.88 6.55 8.40 10.51 11.34 9

Number of Institutions 

Reporting ....................... 6,739 6,821 6,900 6,949 7,028 7,092 7,190 7,254 7,317 7,366 7,446 7,522 7,583

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

3/11 -$1,023 $6,380,407

6/11 3,916 6,524,750

9/11 7,813 6,756,302

12/11 11,827 6,974,690

3/12 15,292 7,032,875

6/12 22,693 7,083,434

9/12 25,224 7,249,849

12/12 32,958 7,406,525

3/13 35,742 6,000,446

6/13 37,871 5,953,332

9/13 40,758 5,969,906

12/13 47,191 6,009,801

3/14 48,893 6,123,766

Table II-C. Problem Institutions and Failed/Assisted Institutions

(dollar figures in millions) 2014*** 2013*** 2013 2012 2011 2010 2009

Problem Institutions

Number of institutions �������������������������������������������������� 411 612 467 651 813 884 702

Total assets������������������������������������������������������������������� $126,106 $213,339 $152,687 $232,701 $319,432 $390,017 $402,782

Failed Institutions

Number of institutions �������������������������������������������������� 5 4 24 51 92 157 140

Total assets ������������������������������������������������������������� $718 $459 $6,044 $11,617 $34,923 $92,085 $169,709

Assisted Institutions** ***

Number of institutions �������������������������������������������������� 0 0 0 0 0 0 8

Total assets������������������������������������������������������������������� $0 $0 $0 $0 $0 $0 $1,917,482

* Quarterly financial statement results are unaudited. NM - Not meaningf

** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act

(Dodd-Frank) temporarily provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012

*** Through March 31

  Total assets are based on final Call Reports submitted by failed institutions

** *** Assisted institutions represent eight institutions under a single holding company that received assistance in 2009
FDIC Quarterly 23 2014, Volume 8, No. 2

Quarterly Banking Profile

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions) 

March 31, 2014

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ����������������������������������������������� 5,809 $13,854,733 $9,120,424 $5,417,543

 FDIC-Supervised ������������������������������������������������������������������� 3,817 2,190,907 1,717,051 1,284,587

 OCC-Supervised�������������������������������������������������������������������� 1,131 9,560,608 6,009,317 3,399,985

 Federal Reserve-Supervised������������������������������������������������� 861 2,103,219 1,394,056 732,972

FDIC-Insured Savings Institutions ���������������������������������������������� 921 1,046,269 801,665 676,804

 OCC-Supervised Savings Institutions ����������������������������������� 489 690,467 537,353 455,439

 FDIC-Supervised Savings Institutions����������������������������������� 432 355,802 264,311 221,366

Total Commercial Banks and Savings Institutions ���������������������� 6,730 14,901,002 9,922,088 6,094,347

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks ������������������������������������������������� 9 86,151 40,377 29,4

Total FDIC-Insured Institutions���������������������������������������������������� . 6,739 14,987,152 9,962,466 6,123,7

* Excludes $1.4 trillion in foreign office deposits, which are uninsure

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending December 31, 2013 (dollar figures in billions)

Annual Rate in Basis Points

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base*

Percent of Total 

Assessment Base

2.50-5.00 1,369 20.07 $1,035 

5.01-7.50 2,895 42.44 9,215 7

7.51-10.00 1,408 20.64 1,704 1

10.01-15.00 653 9.57 443 

15.01-20.00 31 0.45 147 

 20.01-25.00 382 5.60 142 

 25.01-30.00 8 0.12 18 

 30.01-35.00 70 1.03 16 

greater than 35.00 5 0.07 12 0

* 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
FDIC Quarterly 24 2014, Volume 8, No. 2

The fourth step includes organizations that operate within a 

limited geographic scope. This limitation of scope is used as a 

proxy measure for a bank’s relationship approach to banking. 

Banks that operate within a limited market area have more 

ease in managing relationships at a personal level. Under this 

step, four criteria are applied to each banking organization. 

They include both a minimum and maximum number of total 

banking offices, a maximum level of deposits for any one 

office, and location-based criteria. The limits on the number 

of and deposits per office are gradually adjusted upward over 

time. For banking offices, banks must have more than one 

office, and the maximum number of offices starts at 40 in 1985 

and reaches 75 in 2010. The maximum level of deposits for 

any one office is $1.25 billion in deposits in 1985 and $5 billion in deposits in 2010. The remaining geographic limitations 

are also based on maximums for the number of states (fixed at 

3) and large metropolitan areas (fixed at 2) in which the organization maintains offices. Branch office data are based on the 

most recent data from the annual June 30 Summary of Deposits 

Survey that are available at the time of publication.

Finally, the definition establishes an asset-size limit, also 

adjusted upward over time from $250 million in 1985 to 

$1 billion in 2010, below which the limits on banking activities and geographic scope are waived. This final step acknowledges the fact that most of those small banks that are not 

excluded as specialty banks meet the requirements for banking activities and geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking.

(All charters under designated holding companies are considered community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, 

including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks 

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed 

maximum number of offices.3

1

 Consumer nonbank banks are financial institutions with limited charters that can make commercial loans or take deposits, but not both.

2

 Asset size threshold indexed to equal $250 million in 1985 and 

$1 billion in 2010.

3

 Maximum number of offices indexed to equal 40 in 1985 and 75 

in 2010.

Notes to Users

This publication contains financial data and other information for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding 

the comparability of source data and reporting differences 

over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through V-A of 

the FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and savings institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

Securitization, and Asset Sales Activities) aggregate information only for insured commercial banks and state-chartered 

savings banks that file quarterly Call Reports. Table VIII-A 

(Trust Services) aggregates Trust asset and income information collected annually from all FDIC-insured institutions. 

Some tables are arrayed by groups of FDIC-insured institutions based on predominant types of asset concentration, 

while other tables aggregate institutions by asset size and 

geographic region. Quarterly and full-year data are provided 

for selected indicators, including aggregate condition and 

income data, performance ratios, condition ratios, and structural changes, as well as past due, noncurrent, and charge-off 

information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is 

aggregated for all FDIC-insured commercial banks and savings 

institutions meeting the criteria for community banks that 

were developed for the FDIC’s Community Banking Study, 

published in December, 2012: http://fdic.gov/regulations/

resources/cbi/report/cbi-full.pdf. 

The determination of which insured institutions are considered community banks is based on five steps.

The first step in defining a community bank is to aggregate 

all charter-level data reported under each holding company 

into a single banking organization. This aggregation applies 

both to balance-sheet measures and the number and location 

of banking offices. Under the FDIC definition, if the banking 

organization is designated as a community bank, every charter reporting under that organization is also considered a 

community bank when working with data at the charter 

level. 

The second step is to exclude any banking organization 

where more than 50 percent of total assets are held in certain 

specialty banking charters, including: credit card specialists, 

consumer nonbank banks, industrial loan companies, trust companies, bankers’ banks, and banks holding 10 percent or more 

of total assets in foreign offices. 

Once the specialty organizations are removed, the third step 

involves including organizations that engage in basic banking 

activities as measured by the total loans-to-assets ratio (greater than 33 percent) and the ratio of core deposits to assets 

(greater than 50 percent). Core deposits are defined as nonbrokered 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.
FDIC Quarterly 25 2014, Volume 8, No. 2

Quarterly Banking Profile

• 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/assisted institutions, 

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by the 

FDIC through the DIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered in 

foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to obtain 

financial reports for all active institutions. However, in some 

cases, final financial reports are not available for institutions 

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. (TFR filers began filing Call Reports effective 

with the quarter ending March 31, 2012.) This information is 

stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required 

to file separate reports. Data from subsidiary institution 

reports are included in the Quarterly Banking Profile tables, 

which can lead to double-counting. 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 asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-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.

4

 Maximum branch deposit size indexed to equal $1.25 billion in 1985 

and $5 billion in 2010.

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may relocate 

across state lines or change their charters, resulting in an 

inter-regional or inter-industry migration, e.g., institutions 

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Indemnification Assets and Accounting Standards Update No. 2012-

06 – In October 2012, the FASB issued Accounting Standards 

Update (ASU) No. 2012-06, “Subsequent Accounting for an 

Indemnification Asset Recognized at the Acquisition Date as 

a Result of a Government-Assisted Acquisition of a Financial 

Institution,” to address the subsequent measurement of an 

indemnification asset recognized in an acquisition of a financial institution that includes an FDIC loss-sharing agreement. 

This ASU amends ASC Topic 805, Business Combinations 

(formerly FASB Statement No. 141 (revised 2007),”Business 

Combinations”), which includes guidance applicable to FDICassisted acquisitions of failed institutions.

Under the ASU, when an institution experiences a change in 

the cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash 

flows expected to be collected on the assets covered by the 

loss-sharing agreement, the institution should account for the 

change in the measurement of the indemnification asset on 

the same basis as the change in the assets subject to indemnification. Any amortization of changes in the value of the 

indemnification asset should be limited to the lesser of the 

term of the indemnification agreement and the remaining life 

of the indemnified assets.

The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2012. 

For institutions with a calendar year fiscal year, the ASU takes 

effect January 1, 2013. Early adoption of the ASU is permitted. 

The ASU’s provisions should be applied prospectively to any 

new indemnification assets acquired after the date of adoption 

and to indemnification assets existing as of the date of adoption arising from an FDIC-assisted acquisition of a financial 

institution. Institutions with indemnification assets arising 

from FDIC loss-sharing agreements are expected to adopt ASU 

2012-06 for Call Report purposes in accordance with the effective date of this standard. For additional information, refer to 

ASU 2012-06, available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.

Goodwill Impairment Testing – In September 2011, the FASB 

issued Accounting Standards Update (ASU) No. 2011-08, 

“Testing Goodwill for Impairment,” to address concerns about 

the cost and complexity of the existing goodwill impairment 

test in ASC Topic 350, Intangibles-Goodwill and Other 

(formerly FASB Statement No. 142, “Goodwill and Other 

Intangible Assets”). The ASU’s amendments to ASC 

Topic 350 are effective for annual and interim goodwill 

impairment tests performed for fiscal years beginning after 

December 15, 2011 (i.e., for annual or interim tests performed 

on or after January 1, 2012, for institutions with a calendar 

year fiscal year). Early adoption of the ASU was permitted. 

Under ASU 2011-08, an institution has the option of first 

assessing qualitative factors to determine whether it is neces-
FDIC Quarterly 26 2014, Volume 8, No. 2

Many of these loan modifications meet the definition of a 

troubled debt restructuring (TDR).

The TDR accounting and reporting standards are set forth in 

ASC Subtopic 310-40, Receivables – Troubled Debt 

Restructurings by Creditors (formerly FASB Statement No. 

15, “Accounting by Debtors and Creditors for Troubled Debt 

Restructurings,” as amended). This guidance specifies that a 

restructuring of a debt constitutes a TDR if, at the date of 

restructuring, the creditor for economic or legal reasons related to a debtor’s financial difficulties grants a concession to 

the debtor that it would not otherwise consider.

In the Call Report, until a loan that is a TDR is paid in full or 

otherwise settled, sold, or charged off, it must be reported in 

the appropriate loan category, as well as identified as a performing TDR loan, if it is in compliance with its modified 

terms. If a TDR is not in compliance with its modified terms, 

it is reported as a past-due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past 

due and nonaccrual loans. To be considered in compliance 

with its modified terms, a loan that is a TDR must not be in 

nonaccrual status and must be current or less than 30 days past 

due on its contractual principal and interest payments under 

the modified repayment terms. A loan restructured in a TDR 

is an impaired loan. Thus, all TDRs must be measured for 

impairment in accordance with ASC Subtopic 310-10, 

Receivables – Overall (formerly FASB Statement No. 114, 

“Accounting by Creditors for Impairment of a Loan,” as 

amended), and the Call Report Glossary entry for “Loan 

Impairment.” Consistent with ASC Subtopic 310-10, TDRs 

may be aggregated and measured for impairment with other 

impaired loans that share common risk characteristics by using 

historical statistics, such as average recovery period and 

average amount recovered, along with a composite effective 

interest rate. The outcome of such an aggregation approach 

must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call Report 

instructions for loans that are “individually” considered 

impaired instead of the measurement method prescribed in 

ASC Subtopic 450-20, Contingencies – Loss Contingencies 

(formerly FASB Statement No. 5, “Accounting for Contingencies”) for loans not individually considered impaired that 

are collectively evaluated for impairment. When a loan not 

previously considered individually impaired is restructured and 

determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan 

to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the 

methods prescribed in ASC Subtopic 310-10.

Troubled Debt Restructurings and Accounting Standards Update 

No. 2011-02 – In April 2011, the FASB issued Accounting 

Standards Update (ASU) No. 2011-02, “A Creditor’s 

Determination of Whether a Restructuring Is a Troubled 

Debt Restructuring,” to provide additional guidance to help 

creditors determine whether a concession has been granted to 

a borrower and whether a borrower is experiencing financial 

difficulties. The guidance is also intended to reduce diversity 

in practice in identifying and reporting TDRs. This ASU was 

effective for public companies for interim and annual periods 

beginning on or after June 15, 2011, and should have been 

applied retrospectively to the beginning of the annual period 

of adoption for purposes of identifying TDRs. The measurement of impairment for any newly identified TDRs resulting 

sary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering 

all relevant events and circumstances, an institution determines it is unlikely (that is, a likelihood of 50 percent or less) 

that the fair value of a reporting unit is less than its carrying 

amount (including goodwill), then the institution does not 

need to perform the two-step goodwill impairment test. If the 

institution instead concludes that the opposite is true (that is, 

it is likely that the fair value of a reporting unit is less than its 

carrying amount), then it is required to perform the first step 

and, if necessary, the second step of the two-step goodwill 

impairment test. Under ASU 2011-08, an institution may 

choose to bypass the qualitative assessment for any reporting 

unit in any period and proceed directly to performing the first 

step of the two-step goodwill impairment test.

Extended Net Operating Loss Carryback Period – The Worker, 

Homeownership, and Business Assistance Act of 2009, which 

was enacted on November 6, 2009, permits banks and other 

businesses, excluding those banking organizations that 

received capital from the U.S. Treasury under the Troubled 

Asset Relief Program, to elect a net operating loss carryback 

period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after 

December 31, 2007, and beginning before January 1, 2010. 

For calendar-year banks, this extended carryback period 

applies to either the 2008 or 2009 tax year. The amount of 

the net operating loss that can be carried back to the fifth 

carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to 

other carryback years.

Under generally accepted accounting principles, banks may 

not record the effects of this tax change in their balance 

sheets and income statements for financial and regulatory 

reporting purposes until the period in which the law was 

enacted, i.e., the fourth quarter of 2009. Therefore, banks 

should recognize the effects of this fourth quarter 2009 tax 

law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in 

their Call Reports for December 31, 2009. Banks should not 

amend their Call Reports for prior quarters for the effects of 

the extended net operating loss carryback period.

The American Recovery and Reinvestment Act of 2009, 

which was enacted on February 17, 2009, permits qualifying 

small businesses, including FDIC-insured institutions, to elect 

a net operating loss carryback period of three, four, or five 

years instead of the usual carryback period of two years for 

any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accepted accounting principles, institutions may not record the 

effect of this tax change in their balance sheets and income 

statements for financial and regulatory reporting purposes 

until the period in which the law was enacted, i.e., the first 

quarter of 2009.

Troubled Debt Restructurings and Current Market Interest Rates – 

Many institutions are restructuring or modifying the terms of 

loans to provide payment relief for those borrowers who have 

suffered deterioration in their financial condition. Such loan 

restructurings may include, but are not limited to, reductions 

in principal or accrued interest, reductions in interest rates, 

and extensions of the maturity date. Modifications may be 

executed at the original contractual interest rate on the loan, 

a current market interest rate, or a below-market interest rate. 
FDIC Quarterly 27 2014, Volume 8, No. 2

Quarterly Banking Profile

is not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under 

FAS 167, a bank must perform a qualitative assessment to 

determine whether its variable interest or interests give it a 

controlling financial interest in a VIE. If a bank’s variable 

interest or interests provide it with the power to direct the 

most significant activities of the VIE, and the right to receive 

benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE.

Both FAS 166 and FAS 167 take effect as of the beginning of 

each bank’s first annual reporting period that begins after 

November 15, 2009, for interim periods therein, and for 

interim and annual reporting periods thereafter (i.e., as of 

January 1, 2010, for banks with a calendar year fiscal year). 

Earlier application is prohibited. Banks are expected to adopt 

FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also, 

FAS 166 has modified the criteria that must be met in order 

for a transfer of a portion of a financial asset, such as a loan 

participation, to qualify for sale accounting. These changes 

apply to transfers of loan participations on or after the effective date of FAS 166. Therefore, banks with a calendar year 

fiscal year must account for transfers of loan participations on 

or after January 1, 2010, in accordance with FAS 166. In general, loan participations transferred before the effective date 

of FAS 166 (January 1, 2010, for calendar year banks) are not 

affected by this new accounting standard and pre-FAS 166 

participations that were properly accounted for as sales under 

FASB Statement No. 140 will continue to be reported as 

having been sold.

Accounting Standards Codification – refer to previously published Quarterly Banking Profile notes: http://www2.fdic.

gov/qbp/2011sep/qbpnot.html.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid 

deposit insurance assessments, and other assets.

All other liabilities – bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance assessment base has changed to “average consolidated 

total assets minus average tangible equity” with an additional 

adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the 

assessment base was “assessable deposits” and consisted of DIF 

deposits (deposits insured by the FDIC Deposit Insurance 

Fund) in banks’ domestic offices with certain adjustments.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller- provided 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 

from retrospective application should have been applied prospectively in the first interim or annual period beginning on 

or after June 15, 2011. (For most public institutions, the ASU 

takes effect July 1, 2011, but retrospective application begins 

as of January 1, 2011.) Nonpublic companies should apply the 

new guidance for annual periods ending after December 15, 

2012, including interim periods within those annual periods. 

(For most nonpublic institutions, the ASU took effect 

January 1, 2012.) Early adoption of the ASU was permitted 

for both public and nonpublic entities. Nonpublic entities 

that adopt early are subject to a retrospective identification 

requirement. For additional information, refer to ASU 2011-

02, available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Accounting for Loan Participations – Amended ASC Topic 860 

(formerly FAS 166) modified the criteria that must be met in 

order for a transfer of a portion of a financial asset, such as a 

loan participation, to qualify for sale accounting. These 

changes apply to transfers of loan participations on or after 

the effective date of amended ASC Topic 860 (January 1, 

2010, for banks with calendar year fiscal year), including 

advances under lines of credit that are transferred on or after 

the effective date of amended ASC Topic 860 even if the line 

of credit agreements were entered into before this effective 

date. Therefore, banks with a calendar-year fiscal year must 

account for transfers of loan participations on or after January 

1, 2010, in accordance with amended ASC Topic 860. In 

general, loan participations transferred before the effective 

date of amended ASC Topic 860 are not affected by this new 

accounting standard.

Under amended ASC Topic 860, if a transfer of a portion of 

an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender) 

must evaluate whether the transfer meets all of the conditions 

in this accounting standard to qualify for sale accounting.

Other-Than-Temporary Impairment – When the fair value of an 

investment in an individual available-for-sale or held-tomaturity security is less than its cost basis, the impairment is 

either temporary or other-than-temporary. The amount of the 

total other-than-temporary impairment related to credit loss 

must be recognized in earnings, but the amount of total 

impairment related to other factors must be recognized in 

other comprehensive income, net of applicable taxes. To 

determine whether the impairment is other-than-temporary, 

an institution must apply the applicable accounting guidance 

– refer to previously published Quarterly Banking Profile notes: 

http://www2.fdic.gov/qbp/2011mar/qbpnot.html.

ASC Topics 860 & 810 (formerly FASB Statements 166 & 167) – 

In June 2009, the FASB issued Statement No. 166, 

Accounting for Transfers of Financial Assets (FAS 166), and 

Statement No. 167, Amendments to FASB Interpretation 

No. 46(R) (FAS 167), which change the way entities account 

for securitizations and special purpose entities. FAS 166 

revised FASB Statement No. 140, Accounting for Transfers 

and Servicing of Financial Assets and Extinguishments of 

Liabilities, by eliminating the concept of a “qualifying specialpurpose entity,” creating the concept of a “participating interest,” changing the requirements for derecognizing financial 

assets, and requiring additional disclosures. FAS 167 revised 

FASB Interpretation No. 46(R), Consolidation of Variable 

Interest Entities, by changing how a bank or other company 

determines when an entity that is insufficiently capitalized or 
FDIC Quarterly 28 2014, Volume 8, No. 2

ing the quantity (notional principal) of the underlying 

variable or index by specified reference rates or prices. 

Except for currency swaps, the notional principal is used 

to calculate each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk, and operational risk, as well as, 

interest rate risk.

Domestic deposits to total assets – total domestic office deposits 

as a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn 

interest or dividend income.

Efficiency ratio – Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, 

so that a lower value indicates greater efficiency.

Estimated insured deposits – in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Beginning March 31, 2008, for institutions that file Call 

Reports, insured deposits are total assessable deposits minus 

estimated uninsured deposits. Beginning September 30, 2009, 

insured deposits include deposits in accounts of $100,000 to 

$250,000 that are covered by a temporary increase in the 

FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and 

Consumer Protection Act enacted on July 21, 2010, made 

permanent the standard maximum deposit insurance amount 

(SMDIA) of $250,000. Also, the Dodd-Frank Act amended 

the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit 

insurance account category. All funds held in noninterestbearing transaction accounts were fully insured, without limit, 

from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on 

the balance sheet—including trading assets and liabilities, 

available-for-sale securities, loans held for sale, assets and 

liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods 

of market stress, the fair values of some financial instruments 

and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as 

reported by Call Report filers, and by TFR filers prior to 

March 31, 2012.

Goodwill and other intangibles – intangible assets include 

servicing rights, purchased credit card relationships, and other 

identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired, less subsequent impairment adjustments. Other 

intangible assets are recorded at fair value, less subsequent 

quarterly amortization and impairment adjustments.

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.”

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 multiply-
FDIC Quarterly 29 2014, Volume 8, No. 2

Quarterly Banking Profile

“Problem” institutions – federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on a 

scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

risk and supervisory concern, they are rated either a “4” or 

“5.” The number and assets of “problem” institutions are 

based on FDIC composite ratings. Prior to March 31, 2008, 

for institutions whose primary federal regulator was the OTS, 

the OTS composite rating was used.

Recourse – an arrangement in which a bank retains, in form or 

in substance, any credit risk directly or indirectly associated 

with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the 

bank’s claim on the asset. If a bank has no claim on an asset 

it has sold, then the retention of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on 

a consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms.

Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total (consolidated) assets. The basic yardstick of bank 

profitability.

Return on equity – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total equity capital.

Risk-based capital groups – definition:

(Percent)

Total 

Risk-Based 

Capital*

Tier 1

Risk-Based 

Capital*

Tier 1 

Leverage

Tangible

Equity

Well-capitalized ≥10 and ≥6 and ≥5 –

Adequately 

capitalized ≥8 and ≥4 and ≥4 –

Undercapitalized ≥6 and ≥3 and ≥3 –

Significantly 

undercapitalized <6 or <3 or <3 and >2

Critically 

undercapitalized – – – ≤2

* As a percentage of risk-weighted assets.

Risk Categories and Assessment Rate Schedule – The current risk 

categories became effective January 1, 2007. Capital ratios 

and supervisory ratings distinguish one risk category from 

another. Effective April 1, 2011, risk categories for large institutions (generally those with at least $10 billion in assets) 

were eliminated. [Note: Effective January 1, 2014, a small 

number of “advanced approach institutions” began reporting 

Tier 1 capital based on regulatory capital standards approved 

by the banking agencies in July 2013. For all other FDICinsured institutions, prior existing reporting will continue 

until January 2015 when mandatory compliance for all institutions is scheduled to begin. http://www.fdic.gov/regulations/

capital/.] The following table shows the relationship of risk 

categories (I, II, III, IV) for small institutions to capital and 

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties, and 

all other loans secured by real estate.

Loans to individuals – includes outstanding credit card balances 

and other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with 

remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other 

seller-provided credit enhancements provided by the reporting bank to securitizations.

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off.

Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to 

depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a 

percent of total assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from 

operating income have been adjusted to exclude the portion 

applicable to securities gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, 

and other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days 

or more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions 

that actually filed a financial report.

New reporters – insured institutions filing quarterly financial 

reports for the first time.

Other borrowed funds – federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the 

U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts.

Other real estate owned – primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that file a Thrift Financial Report (TFR), the 

valuation allowance subtracted also includes allowances for 

other repossessed assets. Also, for TFR filers the components 

of other real estate owned are reported gross of valuation 

allowances. (TFR filers began filing Call Reports effective 

with the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier.
FDIC Quarterly 30 2014, Volume 8, No. 2

institutions that are not well capitalized or do not have a 

composite CAMELS rating of 1 or 2 may increase (not to 

exceed 10 basis points) if their brokered deposits exceed 10 

percent of domestic deposits. After applying all possible 

adjustments (excluding the Depository Institution Debt 

Adjustment), minimum and maximum total base assessment 

rates for each risk category are as follows:

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

Large and 

Highly 

Complex 

Institutions

Initial base 

assessment rate 5–9 14 23 35 5–35

Unsecured debt 

adjustment -4.5–0 -5–0 -5–0 -5–0 -5–0

Brokered deposit 

adjustment — 0–10 0–10 0–10 0–10

Total Base 

Assessment rate 2.5–9 9–24 18–33 30–45 2.5–45

* All amounts for all categories are in basis points annually. Total base rates that are 

not the minimum or maximum rate will vary between these rates. Total base assessment rates do not include the depository institution debt adjustment.

Beginning in 2007, each institution is assigned a risk-based 

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment is generally 

due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are 

effective for assessment purposes as of the examination transmittal date.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special 

assessment as of June 30, 2009. The special assessment was 

levied on each insured depository institution’s assets minus 

its Tier 1 capital as reported in its report of condition as of 

June 30, 2009. The special assessment was collected 

September 30, 2009, at the same time that the risk-based 

assessment for the second quarter of 2009 was collected. 

The special assessment for any institution was capped at 

10 basis points of the institution’s assessment base for the 

second quarter of 2009 risk-based assessment.

Prepaid Deposit Insurance Assessments – In November 2009, 

the FDIC Board of Directors adopted a final rule requiring 

insured depository institutions (except those that are 

exempted) to prepay their quarterly risk-based deposit 

insurance assessments for the fourth quarter of 2009, and 

for all of 2010, 2011, and 2012, on December 30, 2009. 

For regulatory capital purposes, an institution may assign 

a zero-percent risk weight to the amount of its prepaid 

deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment 

program, this program ended with the final application of 

prepaid assessments to the quarterly deposit insurance 

assessments payable March 29, 2013. The FDIC issued 

refunds of any unused prepaid deposit insurance assessments on June 28, 2013.

Risk-weighted assets – assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 200 percent. A conversion factor is used to assign 

supervisory groups as well as the initial base assessment rates 

(in basis points) for each risk category. Supervisory Group A 

generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite rating of 3; and Supervisory 

Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment 

capital groups, undercapitalized includes institutions that are 

significantly or critically undercapitalized.

Capital Category

Supervisory Group

A B C

1. Well Capitalized I

5–9 bps II

14 bps

III

23 bps 2. Adequately Capitalized II

14 bps

3. Undercapitalized III

23 bps

IV

35 bps

Effective April 1, 2011, the initial base assessment rates are 5 

to 35 basis points. An institution’s total assessment rate may 

be less than or greater than its initial base assessment rate as a 

result of additional risk adjustments.

The base assessment rates for small institutions in Risk 

Category I are based on a combination of financial ratios and 

CAMELS component ratings (the financial ratios method).

As required by Dodd-Frank, the calculation of risk-based 

assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based 

on CAMELS ratings and certain forward-looking financial 

measures combined into two scorecards—one for most large 

institutions and another for the remaining very large institutions that are structurally and operationally complex or that 

pose unique challenges and risks in case of failure (highly 

complex institutions). In general, a highly complex institution is an institution (other than a credit card bank) with 

more than $500 billion in total assets that is controlled by a 

parent or intermediate parent company with more than $500 

billion in total assets or a processing bank or trust company 

with total fiduciary assets of $500 billion or more. The FDIC 

retains its ability to take additional information into account 

to make a limited adjustment to an institution’s total score 

(the large bank adjustment), which will be used to determine 

an institution’s initial base assessment rate.

Effective April 1, 2011, the three possible adjustments to 

an institution’s initial base assessment rate are as follows: 

(1) Unsecured Debt Adjustment: An institution’s rate may 

decrease by up to 5 basis points for unsecured debt. The unsecured debt adjustment cannot exceed the lesser of 5 basis 

points or 50 percent of an institution’s initial base assessment 

rate (IBAR). Thus, for example, an institution with an IBAR 

of 5 basis points would have a maximum unsecured debt 

adjustment of 2.5 basis points and could not have a total base 

assessment rate lower than 2.5 basis points. (2) Depository 

Institution Debt Adjustment: For institutions that hold longterm unsecured debt issued by another insured depository 

institution, a 50 basis point charge is applied to the amount 

of such debt held in excess of 3 percent of an institution’s 

Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for 

small institutions that are not in Risk Category I and for large 
FDIC Quarterly 31 2014, Volume 8, No. 2

Quarterly Banking Profile

issue unsecured subordinated debentures to the Treasury 

Department through the SBLF. Depository institutions that 

issued these debentures report them as “Subordinated notes 

and debentures.” For regulatory capital purposes, the 

debentures are eligible for inclusion in an institution’s Tier 2 

capital in accordance with their primary federal regulator’s 

capital standards. To participate in the SBLF Program, an 

institution with outstanding securities issued to the Treasury 

Department under the Capital Purchase Program (CPP) was 

required to refinance or repay in full the CPP securities at the 

time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP 

remain outstanding after the refinancing of the CPP stock 

through the SBLF Program unless the institution chooses to 

repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. This can have the 

effect of reducing institutions’ reported taxes and increasing 

their after-tax earnings.

Trust assets – market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

equipment, collectibles, and household goods. Such fiduciary 

assets are not included in the assets of the financial 

institution.

Unearned income & contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home 

equity lines, commitments to make loans for construction, 

loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for 

sale, which are accounted for as derivatives on the balance 

sheet.)

Yield on earning assets – total interest, dividend, and fee 

income earned on loans and investments as a percentage of 

average earning assets.

a balance sheet equivalent amount for selected off-balancesheet accounts.

Securities – excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated as 

“held-to-maturity,” which are reported at amortized cost 

(book value), and securities designated as “available-for-sale,” 

reported at fair (market) value.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments 

for income taxes. Thrift Financial Report (TFR) filers also 

include gains (losses) on the sales of assets held for sale. 

(TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have 

been securitized, except an interest that is a form of recourse 

or other seller-provided credit enhancement. Seller’s interests 

differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is 

generally equal to the total principal amount of the pool of 

assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the 

form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending 

Fund (SBLF) was enacted into law in September 2010 as part 

of the Small Business Jobs Act of 2010 to encourage lending 

to small businesses by providing capital to qualified 

community institutions with assets of less than $10 billion. 

The SBLF Program is administered by the U.S. Treasury 

Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx). 

Under the SBLF Program, the Treasury Department 

purchased noncumulative perpetual preferred stock from 

qualifying depository institutions and holding companies 

(other than Subchapter S and mutual institutions). When 

this stock has been issued by a depository institution, it is 

reported as “Perpetual preferred stock and related surplus.” 

For regulatory capital purposes, this noncumulative perpetual 

preferred stock qualifies as a component of Tier 1 capital. 

Qualifying Subchapter S corporations and mutual institutions