FDIC QUARTERLY A

Quarterly

2017

Volume 11, Number 1

Federal Deposit 

Insurance Corporation

Quarterly Banking Profile:

Fourth Quarter 2016

Banks Attract More Deposits 

While Operating Fewer Offices
FDIC QUARTERLY

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

Federal Deposit Insurance Corporation and contains a comprehensive summary of the 

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

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

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

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

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

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

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

Chairman

Martin J. Gruenberg

Director, Division of Insurance and Research

Diane Ellis

Executive Editor

Richard A. Brown

Managing Editors

Matthew Green

Jack Reidhill

Philip A. Shively

Editors

Clayton Boyce

Peggi Gill

Frank Solomon

Kathy Zeidler

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993
FDIC QUARTERLY i

2017 FDIC QUARTERLY

Volume 11 • Number 1

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

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

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

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

Quarterly Banking Profile: Fourth Quarter 2016

FDIC-insured institutions reported aggregate net income of $43.7 billion in the fourth 

quarter of 2016, up $3.1 billion (7.7 percent) from a year earlier. The increase in earnings 

was mainly attributable to an $8.4 billion (7.6 percent) increase in net interest income. Of 

the 5,913 insured institutions reporting fourth quarter financial results, almost 60 percent 

reported year-over-year growth in quarterly earnings. The proportion of banks that were 

unprofitable in the fourth quarter fell to 8.1 percent from 9.6 percent a year earlier. 

See page 1.

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

income of $5.3 billion in the fourth quarter, up $507.9 million (10.5 percent) from one year 

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

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

12-month growth rate in loan balances at community banks was 8.3 percent, while growth 

at noncommunity banks was 4.8 percent. The noncurrent rate continued to improve, and 

community banks accounted for 43 percent of small loans to businesses. See page 17.

Insurance Fund Indicators Insured deposits increased by 1.4 percent in the fourth quarter of 2016. The DIF reserve 

ratio rose to 1.20 percent at year-end 2016, up from 1.18 percent at September 30, 2016, and 

1.11 percent at year-end 2015. There were no failures of FDIC-insured institutions during the 

quarter. See page 25.

Featured Article:

Banks Attract More Deposits While Operating 

Fewer Offices

Deposits across the banking industry grew while the number of offices shrank among 

noncommunity banks and increased among community banks from the previous year, 

according to the 2016 Summary of Deposits survey. Meanwhile, offices in energy-dependent 

counties reported almost no deposit growth as natural gas, oil, and coal prices fell. 

See page 39.

2017 FDIC QUARTERLY

QUARTERLY BANKING PROFILE Fourth Quarter 2016

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income Is 7.7 Percent Higher Than a Year Earlier

Full-Year 2016 Industry Earnings Rise to $171.3 Billion

Community Bank Revenue and Loan Growth Outpace Industry

Total Loan Balances Rise 5.3 Percent During 2016

Net Income Is $43.7 Billion 

in Fourth Quarter

Insured institutions reported net income of $43.7 billion for the quarter, an increase of 

$3.1 billion (7.7 percent) compared with the year before. Almost 60 percent of all banks 

reported year-over-year increases in quarterly earnings. Only 8.1 percent of banks were 

unprofitable for the quarter, down from 9.6 percent the previous year. The average return on 

assets (ROA) rose slightly to 1.04 percent, from 1.02 percent in fourth quarter 2015.

Full-Year 2016 Earnings 

Rise to $171.3 Billion

The industry reported $171.3 billion in net income for full-year 2016, $7.9 billion 

(4.9 percent) more than the industry earned in 2015. Almost two out of every three banks—

65.2 percent—reported higher earnings in 2016 than in 2015. Only 4.2 percent of all banks 

had negative full-year net income. This is the lowest percentage of unprofitable banks for 

any year since 1995. Net operating revenue was $29 billion (4.2 percent) higher than in 

2015, as net interest income increased by $29.8 billion (6.9 percent) and total noninterest 

income declined by $779 million (0.3 percent). The average net interest margin (NIM) rose 

to 3.13 percent from 3.07 percent in 2015. Total noninterest expenses were only $5.1 billion 

(1.2 percent) higher than a year earlier, as itemized litigation charges at a few large banks 

were $2.95 billion lower than in 2015. Loan-loss provisions totaled $47.8 billion, an 

increase of $10.7 billion (28.8 percent) from 2015. The average return on assets for 2016 was 

1.04 percent, unchanged from the full-year average for 2015.

50

-10

0

10

20

30

40

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

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

2010 2011

17.4

20.9

23.8 21.4

28.7

2012

28.5

35.2

25.3

34.8

2013

34.5

37.5

34.4

2014

40.3 38.2

36.1

39.8

37.3

2015

40.1 38.5 36.5

2016

39.8

43.0

40.4 40.6 39.0

43.6 45.6 43.7

Chart 1

Source: FDIC.

Percentage of All FDIC-Insured Institutions

Unprotable Institutions and 

Institutions With Increased Earnings

All FDIC-Insured Institutions

0

10

20

30

40

50

60

70

80

Percentage of Institutions With 

Year-Over-Year Quarterly Income Growth

Percentage of Institutions With Quarterly Losses

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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

2 FDIC QUARTERLY

Net Interest Income Growth 

Lifts Operating Revenues

Net operating revenue totaled $181.8 billion in the fourth quarter, up $7.9 billion 

(4.6 percent) from the year before. Net interest income was $8.4 billion (7.6 percent) higher, 

while noninterest income declined by $480 million (0.8 percent). The increase in net interest income was attributable to growth in interest-bearing assets (up 5.2 percent over the past 

12 months) and improvement in the industry’s aggregate NIM, which rose to 3.16 percent, 

from 3.12 percent in fourth quarter 2015. The NIM improvement was not broad-based. A 

majority of banks—54.3 percent—reported lower NIMs than the year earlier. The decline in 

noninterest income was driven by a $950 million drop in income from changes in fair values 

of financial instruments and a $432 million decline in interchange fees. Both trading income 

and servicing income rose $1.7 billion (39.8 percent and 51.4 percent, respectively) from 

fourth quarter 2015.

Noninterest Expenses Up 

2.6 Percent From a 

Year Before

Total noninterest expenses were $2.7 billion (2.6 percent) higher than the year before. 

Salary and employee benefit expenses rose $1.7 billion (3.4 percent), while goodwill impairment charges were $675 million higher. Expenses for premises and fixed assets were only 

$9 million (0.1 percent) higher than the year earlier.

Quarterly Loss Provisions 

Decline From a Year Ago

Loan-loss provisions totaled $12.2 billion in the fourth quarter, $3 million less than banks 

set aside a year earlier. This marks the first time since second quarter 2014 that quarterly 

provision expenses have not posted a year-over-year increase. For the industry, fourthquarter provisions represented 6.7 percent of the quarter’s net operating revenue, down from 

7 percent in fourth quarter 2015.

Annual Net Income

All FDIC-Insured Institutions

Source: FDIC.

-20

20

40

60

80

100

120

140

160

180

Securities and Other Gains/Losses, Net

Net Operating Income

2000 2002 2004 2006 2008 2010 2012 2014 2016

0

81.5 87.4

104.7

120.6 122.2

133.8

145.2

99.9

4.5

-10.0

85.5

118.4

141.0

154.3 152.2

163.4 171.3

$ Billions

Chart 3

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Quarterly Charge-Offs Rise 

for a Fifth Consecutive 

Quarter

Net loan losses totaled $12.2 billion, up $1.5 billion (13.5 percent) from a year earlier. This is 

the fifth quarter in a row that net charge-offs have posted a year-over-year increase. Credit 

card charge-offs were $1.4 billion (24.8 percent) higher, while net charge-offs of loans to 

commercial and industrial (C&I) borrowers rose $666 million (37.9 percent). Charge-offs 

of residential mortgage loans were $576 million (75.1 percent) lower than in fourth quarter 

2015. The average net charge-off rate rose to 0.53 percent, from 0.49 percent the year before. 

This is well below the high of 3.00 percent recorded in fourth quarter 2009.

Noncurrent Loan Rate at 

Lowest Level Since 2007

Noncurrent loans and leases—those 90 days or more past-due or in nonaccrual status—

declined for the 26th time in the last 27 quarters, falling by $2.4 billion (1.8 percent) during 

the three months ended December 31. During the quarter, noncurrent C&I loans declined 

for the first time in eight quarters, falling by $1.4 billion (5.3 percent). Noncurrent residential mortgage loan balances fell by $2 billion (3 percent), while noncurrent home equity 

loans declined by $170 million (1.6 percent), and noncurrent nonfarm nonresidential real 

estate loans fell by $192 million (2 percent). These improvements exceeded the $1.1 billion 

(12.7 percent) increase in noncurrent credit card balances. The average noncurrent loan rate 

fell from 1.45 percent to 1.41 percent, the lowest level since year-end 2007.

Loan-Loss Reserves Decline 

for the First Time in 

Five Quarters

Banks reduced their reserves for loan and lease losses during the fourth quarter, as slightly 

lower loan-loss provisions were offset by higher net charge-offs. Loss reserves fell by 

$649 million (0.5 percent). At banks that itemize their reserves, which represent more than 

90 percent of total industry reserves, the decline was driven by reductions in reserves for 

residential real estate loan losses, which fell by $1.2 billion (6.5 percent), and in reserves for 

commercial loan losses, which declined by $639 million (1.8 percent). Itemized reserves for 

losses on credit cards increased by $677 million (2.3 percent). Despite the small reduction in 

industry reserves, the larger decline in noncurrent loan balances caused the coverage ratio 

of reserves to noncurrent loans to rise from 91.1 percent to 92.3 percent in the quarter, the 

highest level since third quarter 2007.

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

Noncurrent Loan Rate

Quarterly Net Charge-O Rate

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Chart 5

Source: FDIC.

*Loan-loss reserves to noncurrent loans & leases.

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio*

 0

50

100

150

200

250

300

350

400

450

0

20

40

60

80

100

120

140

160

180

Noncurrent Loans & Leases ($ Billions)

Loan-Loss Reserves ($ Billions)

Coverage Ratio (Percent)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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

4 FDIC QUARTERLY

Equity Capital Posts a 

Quarterly Decline as the 

Market Value of AvailableFor-Sale Securities Falls

Total equity capital declined by $16.8 billion (0.9 percent) in fourth quarter 2016, as higher 

interest rates caused the market values of available-for-sale securities at banks to fall. Accumulated other comprehensive income declined by $39.5 billion in the quarter, mostly as a 

result of the drop in securities values. Retained earnings contributed $15.1 billion to equity 

growth, $1.8 billion (13.5 percent) more than a year earlier. Banks declared $28.6 billion in 

dividends, a $1.3 billion (4.8 percent) increase over fourth quarter 2015. The average equityto-assets ratio for the industry declined from 11.22 percent to 11.11 percent. At the end of 

the quarter, 99.7 percent of all banks, representing 99.9 percent of industry assets, met or 

exceeded the requirements for the highest regulatory capital category as defined for Prompt 

Corrective Action purposes.

Loan Balances Increase 

$72.3 Billion in the Fourth 

Quarter

Total assets rose by $13.7 billion (0.1 percent) during the fourth quarter. Total loan and lease 

balances increased by $72.3 billion (0.8 percent). Growth in loan balances was led by credit 

cards (up $38.2 billion, 5 percent), loans secured by nonfarm nonresidential real estate properties (up $22.8 billion, 1.7 percent), and real estate construction and development loans (up 

$10.1 billion, 3.3 percent). C&I loan balances fell for the first time in 26 quarters, declining 

$7.7 billion (0.4 percent). Investment securities portfolios rose by $52 billion (1.5 percent) 

during the quarter despite a $52.4 billion decline in the market values of securities available 

for sale. Assets in trading accounts declined by $27.3 billion (4.6 percent). Banks reduced 

their balances at Federal Reserve banks by $116.4 billion (9.6 percent).

-40

-20

0

20

40

60

80

100

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

Source: FDIC.

Held-to-Maturity Securities

$ Billions Available-for-Sale Securities

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

2012 2013 2014 2015 2016

59.5

(19.4)

Chart 7

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

Source: FDIC.

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

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

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

for the quarter absent this change in accounting standards. 

146

108

66 43

189

237

203

61

28

-6

-109

-210

-133 -107

-7

-126

67

24

134

-63

102 117

-37

74 70 91

38

178

51

149

53

185

95

197

100

182

72

196

-116-140

221*

-14

65

112

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

-15

-10

-5

0

5

10

15

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

Chart 8
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

Total Loan Balances Rise 

5.3 Percent During 2016

For full-year 2016, total assets increased $812.6 billion (5.1 percent). Total loans and leases 

increased by $466 billion (5.3 percent), as C&I loans rose by $94.2 billion (5.1 percent), loans 

secured by nonfarm nonresidential real estate were up by $92.6 billion (7.5 percent), and residential mortgages increased by $91.1 billion (4.8 percent). All major loan categories grew in 

2016. Banks increased their investment securities by $205.9 billion (6.1 percent) in 2016, with 

mortgage-backed securities up $133.3 billion (7.1 percent) and U.S. Treasury securities up 

$97 billion (23 percent).

Deposits Rise by $96 Billion Domestic deposit growth was relatively strong in the fourth quarter. Total deposits rose 

by $95.9 billion (0.7 percent), as deposits in domestic offices increased by $186.5 billion 

(1.6 percent), while foreign office deposits declined by $90.6 billion (6.8 percent). Balances 

in domestic interest-bearing accounts rose by $178.7 billion (2.1 percent), and balances 

in noninterest-bearing accounts grew by $7.7 billion (0.2 percent). Balances in consumeroriented accounts increased by $120.5 billion (3 percent), while all other domestic office 

deposits rose by $62 billion (1 percent). Banks reduced their nondeposit liabilities by 

$65.4 billion (3.1 percent), as securities sold under repurchase agreements declined by 

$25.1 billion (10.9 percent), and trading account liabilities fell by $13 billion (5.1 percent).

 Annual Change in Total Loan and Lease Balances

All FDIC-Insured Institutions

Source: FDIC.

Change in Loan Balances ($ Billions) Annual Growth Rate (Percent)

393

119

291

381

686

598

516

672

-33

-592

94

197

417

530 466

99

221

-800

-600

-400

-200

0

200

400

600

800

2000 2002 2004 2006 2008 2010 2012 2014 2016

-15

-10

-5

0

5

10

15

Without FAS 166/167, 

Total Loan Balances Would 

Have Declined in 2010

Chart 9

0

10

20

30

40

50

> 15 Years

5-15 Years

3-5 Years

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

All Insured Call Report Filers

Percentage

Source: FDIC.

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

33.3% 35.5%

Chart 10
2 0 1 7  •Volume 1 1  • Number 1

6 FDIC QUARTERLY

“Problem Bank List” 

Continues to Improve

The number of FDIC-insured commercial banks and savings institutions reporting quarterly financial results fell to 5,913 in the fourth quarter, from 5,980 in the third quarter of 

2016. There were 65 mergers of insured institutions during the quarter, while no insured 

banks failed. No new charters were added during the quarter. Banks reported 2,052,504 fulltime equivalent employees, an increase of 18,777 from fourth quarter 2015. The number of 

insured institutions on the FDIC’s “Problem Bank List” declined from 132 to 123, as total 

assets of problem banks rose from $24.9 billion to $27.6 billion. For all of 2016, the number 

of insured institutions reporting declined by 269. Mergers absorbed 251 institutions, and 

5 insured institutions failed. This is the smallest number of bank failures in a year since three 

FDIC-insured institutions failed in 2007. In 2015, there were eight failures.

Author:

Ross Waldrop

Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

Source: FDIC.

Assets ($ Billions) Number

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

0

50

100

150

200

250

300

350

400

450

500

0

100

200

300

400

500

600

700

800

900

1,000

Problem Bank Assets

Number of Problem Banks

28

123

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Problem Bank Assets

Chart 11
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 7

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

2016 2015 2014 2013 2012 2011 2010

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

Return on equity (%) 9.32 9.29 9.01 9.54 8.90 7.79 5.85

Core capital (leverage) ratio (%) 9.48 9.59 9.44 9.40 9.15 9.07 8.89

Noncurrent assets plus other real estate owned to assets (%) 0.86 0.97 1.20 1.63 2.20 2.61 3.11

Net charge-offs to loans (%) 0.47 0.44 0.49 0.69 1.10 1.55 2.55

Asset growth rate (%) 5.09 2.66 5.59 1.94 4.02 4.30 1.77

Net interest margin (%) 3.13 3.07 3.14 3.26 3.42 3.60 3.76

Net operating income growth (%) 4.96 7.08 -0.73 12.82 17.76 43.60 1,594.34

Number of institutions reporting 5,913 6,182 6,509 6,812 7,083 7,357 7,658

Commercial banks 5,113 5,338 5,607 5,847 6,072 6,275 6,519

Savings institutions 800 844 902 965 1,011 1,082 1,139

Percentage of unprofitable institutions (%) 4.19 4.79 6.27 8.16 11.00 16.23 22.15

Number of problem institutions 123 183 291 467 651 813 884

Assets of problem institutions (in billions) $28 $47 $87 $153 $233 $319 $390

Number of failed institutions 5 8 18 24 51 92 157

Number of assisted institutions 0 0 0 0 0 0 0

* Excludes insured branches of foreign banks (IBAs).

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

(dollar figures in millions)  4th Quarter

2016

3rd Quarter

2016

4th Quarter

2015

%Change 

15Q4-16Q4

Number of institutions reporting 5,913 5,980 6,182 -4.4

Total employees (full-time equivalent) 2,052,504 2,043,470 2,033,727 0.9

CONDITION DATA

Total assets $16,780,224 $16,766,505 $15,967,647 5.1

Loans secured by real estate 4,603,202 4,567,602 4,375,450 5.2

 1-4 Family residential mortgages 1,995,021 1,989,163 1,903,939 4.8

 Nonfarm nonresidential 1,323,958 1,301,195 1,231,397 7.5

 Construction and development 313,203 303,093 275,452 13.7

 Home equity lines 434,132 444,313 465,296 -6.7

Commercial & industrial loans 1,935,515 1,943,257 1,841,361 5.1

Loans to individuals 1,589,433 1,544,469 1,497,904 6.1

 Credit cards 799,810 761,645 756,464 5.7

Farm loans 79,905 80,624 81,651 -2.1

Other loans & leases 1,099,484 1,099,204 1,045,082 5.2

Less: Unearned income 2,174 2,075 2,080 4.6

Total loans & leases 9,305,365 9,233,080 8,839,368 5.3

Less: Reserve for losses 121,425 122,074 118,568 2.4

Net loans and leases 9,183,940 9,111,007 8,720,800 5.3

Securities 3,559,470 3,507,441 3,353,555 6.1

Other real estate owned 10,936 11,781 14,704 -25.6

Goodwill and other intangibles 369,231 363,420 360,397 2.5

All other assets 3,656,648 3,772,857 3,518,190 3.9

Total liabilities and capital 16,780,224 16,766,505 15,967,647 5.1

Deposits 12,894,726 12,798,803 12,190,024 5.8

 Domestic office deposits 11,647,282 11,460,797 10,905,152 6.8

 Foreign office deposits 1,247,444 1,338,006 1,284,872 -2.9

Other borrowed funds 1,413,237 1,445,272 1,385,671 2.0

Subordinated debt 83,905 87,037 91,597 -8.4

All other liabilities 518,550 548,744 499,431 3.8

Total equity capital (includes minority interests) 1,869,806 1,886,649 1,800,924 3.8

 Bank equity capital 1,863,641 1,880,438 1,794,346 3.9

Loans and leases 30-89 days past due 65,742 60,076 64,252 2.3

Noncurrent loans and leases 131,608 133,989 137,913 -4.6

Restructured loans and leases 65,445 67,818 72,256 -9.4

Mortgage-backed securities 2,004,983 1,979,611 1,871,680 7.1

Earning assets 15,114,416 15,113,731 14,365,863 5.2

FHLB Advances 563,250 541,820 495,040 13.8

Unused loan commitments 7,201,892 7,187,376 6,914,906 4.2

Trust assets 17,664,089 17,656,868 17,305,977 2.1

Assets securitized and sold 737,169 763,200 820,686 -10.2

Notional amount of derivatives 166,739,373 179,902,253 181,986,620 -8.4

INCOME DATA

Full Year 

2016

Full Year 

2015 %Change

4th Quarter 

2016

4th Quarter 

2015

%Change 

15Q4-16Q4

Total interest income $515,796 $478,506 7.8 $133,699 $123,737 8.1

Total interest expense 54,397 46,876 16.0 14,362 12,809 12.1

Net interest income 461,399 431,630 6.9 119,337 110,928 7.6

Provision for loan and lease losses 47,836 37,139 28.8 12,202 12,205 0.0

Total noninterest income 252,538 253,317 -0.3 62,448 62,929 -0.8

Total noninterest expense 422,162 417,016 1.2 108,214 105,506 2.6

Securities gains (losses) 3,792 3,635 4.3 634 852 -25.6

Applicable income taxes 75,741 70,539 7.4 18,159 16,295 11.4

Extraordinary gains, net* -326 -11 N/M -45 -37 N/M

Total net income (includes minority interests) 171,665 163,876 4.8 43,799 40,666 7.7

 Bank net income 171,324 163,390 4.9 43,700 40,587 7.7

Net charge-offs 42,519 37,283 14.1 12,213 10,762 13.5

Cash dividends 102,757 104,528 -1.7 28,628 27,311 4.8

Retained earnings 68,567 58,862 16.5 15,072 13,276 13.5

Net operating income 169,327 161,319 5.0 43,400 40,081 8.3

* See Notes to Users (page 31) for explanation. N/M - Not Meaningful
2 0 1 7  •Volume 1 1  • Number 1

8 FDIC QUARTERLY

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

Asset Concentration Groups*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

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

Commercial banks 5,113 12 5 1,411 2,718 110 50 272 478 57

Savings institutions 800 1 0 18 308 351 15 28 71 8

Total assets (in billions) $16,780.2 $519.0 $4,052.7 $284.9 $5,629.5 $330.8 $256.0 $51.0 $97.5 $5,558.8

Commercial banks 15,629.0 447.2 4,052.7 279.3 5,159.0 89.4 156.5 46.5 83.4 5,315.1

Savings institutions 1,151.2 71.8 0.0 5.6 470.5 241.4 99.5 4.6 14.2 243.7

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

Commercial banks 11,983.1 223.2 2,932.9 232.5 4,085.1 76.7 132.2 38.0 71.0 4,191.3

Savings institutions 911.6 54.7 0.0 3.3 349.5 186.1 83.1 3.1 11.6 220.3

Bank net income (in millions) 171,324 11,419 37,737 3,366 53,263 3,186 2,329 1,445 888 57,691

Commercial banks 157,591 9,655 37,737 3,255 46,897 1,308 1,564 661 802 55,713

Savings institutions 13,733 1,764 0 111 6,366 1,879 764 784 87 1,978

Performance Ratios (%)

Yield on earning assets 3.50 11.54 2.71 4.16 3.71 3.33 3.76 3.07 3.84 3.05

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

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

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

Noninterest expense to assets 2.57 5.46 2.36 2.54 2.76 2.51 2.43 5.81 3.03 2.25

Loan and lease loss provision to assets 0.29 3.17 0.19 0.16 0.18 -0.04 0.47 0.05 0.09 0.23

Net operating income to assets 1.03 2.28 0.93 1.18 0.97 0.96 0.96 2.80 0.89 1.05

Pretax return on assets 1.51 3.52 1.31 1.44 1.40 1.47 1.52 3.85 1.12 1.57

Return on assets 1.04 2.28 0.93 1.21 0.98 0.99 0.96 2.85 0.92 1.06

Return on equity 9.32 15.35 9.43 10.47 8.19 8.64 9.46 18.39 7.89 9.60

Net charge-offs to loans and leases 0.47 3.35 0.56 0.15 0.22 0.07 0.56 0.22 0.17 0.41

Loan and lease loss provision to 

net charge-offs 112.50 121.83 94.98 158.87 120.69 -96.02 118.40 80.54 94.48 109.47

Efficiency ratio 58.28 44.24 60.75 61.39 62.98 63.99 53.04 60.12 71.88 54.82

% of unprofitable institutions 4.19 0.00 0.00 1.68 4.26 7.59 10.77 7.00 5.65 1.54

% of institutions with earnings gains 65.23 46.15 80.00 59.34 70.65 61.17 64.62 56.00 58.29 75.38

Condition Ratios (%)

Earning assets to total assets 90.07 91.48 87.68 92.85 90.83 94.66 97.35 91.93 92.53 90.11

Loss allowance to:

Loans and leases 1.30 3.83 1.46 1.39 1.10 0.86 0.97 1.53 1.30 1.18

Noncurrent loans and leases 92.26 274.64 92.71 144.20 105.28 29.03 103.30 104.99 108.69 65.88

Noncurrent assets plus

other real estate owned to assets 0.86 1.12 0.61 0.77 0.86 1.97 0.70 0.63 0.94 0.96

Equity capital ratio 11.11 14.85 9.97 11.30 11.82 11.29 10.04 15.24 11.42 10.85

Core capital (leverage) ratio 9.48 12.63 8.66 10.85 10.11 11.15 10.24 14.88 11.38 8.88

Common equity tier 1 capital ratio 12.87 11.85 13.40 14.44 12.32 21.83 18.14 32.65 19.44 12.40

Tier 1 risk-based capital ratio 12.96 11.97 13.42 14.45 12.44 21.88 18.33 32.66 19.48 12.50

Total risk-based capital ratio 14.35 14.15 14.53 15.56 13.80 22.80 19.22 33.53 20.59 14.06

Net loans and leases to deposits 71.22 144.60 49.59 80.07 87.61 78.78 82.81 34.34 65.23 63.47

Net loans to total assets 54.73 77.44 35.89 66.27 69.02 62.59 69.66 27.66 55.26 50.37

Domestic deposits to total assets 69.41 52.83 48.14 82.76 78.47 79.43 84.11 80.53 84.72 74.96

Structural Changes

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

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

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

PRIOR FULL YEARS

(The way it was...)

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

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

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

Total assets (in billions) 2015 $15,967.7 $549.1 $3,774.6 $277.6 $5,892.1 $385.4 $187.3 $57.5 $113.9 $4,730.3

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

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

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

 2013 1.07 3.35 0.86 1.15 0.91 0.98 1.15 1.93 0.85 1.11

 2011 0.88 3.49 0.74 1.11 0.63 0.56 1.68 1.92 0.92 0.89

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

 2013 0.69 3.20 0.97 0.14 0.43 0.37 0.80 0.48 0.33 0.49

 2011 1.55 5.26 1.97 0.40 1.18 0.90 1.87 0.56 0.54 1.25

Noncurrent assets plus 

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

 2013 1.63 0.93 1.07 0.95 1.65 2.14 1.23 0.84 1.44 2.18

 2011 2.61 1.41 1.61 1.46 3.05 2.61 1.28 1.11 1.69 3.25

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

 2013 11.15 14.73 9.27 10.97 11.79 11.62 9.51 13.50 11.34 11.52

 2011 11.16 15.11 8.89 11.22 11.69 10.39 9.82 14.51 11.45 12.08

* See Table V-A (page 12) for explanations.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 9

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

Asset Size Distribution Geographic Regions*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

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

Commercial banks 5,113 1,354 3,155 506 89 9 375 651 1,063 1,431 1,186 407

Savings institutions 800 187 482 115 16 0 349 69 208 54 82 38

Total assets (in billions) $16,780.2 $91.5 $1,173.9 $1,762.2 $5,305.7 $8,446.8 $3,096.5 $3,507.3 $3,784.3 $3,633.9 $1,011.3 $1,747.0

Commercial banks 15,629.0 80.9 997.7 1,444.8 4,658.9 8,446.8 2,658.8 3,424.1 3,672.2 3,574.2 886.0 1,413.8

Savings institutions 1,151.2 10.6 176.3 317.5 646.9 0.0 437.7 83.2 112.1 59.6 125.3 333.2

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

Commercial banks 11,983.1 68.6 840.0 1,159.2 3,551.2 6,364.1 1,995.7 2,695.2 2,741.5 2,694.0 731.7 1,125.0

Savings institutions 911.6 8.2 139.9 242.0 521.5 0.0 328.4 67.1 79.1 48.2 102.5 286.4

Bank net income (in millions) 171,324 820 12,343 17,607 54,753 85,801 26,583 35,158 36,737 38,983 10,447 23,416

Commercial banks 157,591 708 10,507 15,035 45,540 85,801 23,512 34,437 35,397 38,503 9,094 16,648

Savings institutions 13,733 112 1,836 2,572 9,214 0 3,072 721 1,340 480 1,353 6,768

Performance Ratios (%)

Yield on earning assets 3.50 4.12 4.14 4.04 3.88 3.04 3.54 3.63 2.79 3.64 3.97 4.10

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

Net interest margin 3.13 3.68 3.68 3.61 3.45 2.74 3.07 3.32 2.49 3.23 3.65 3.70

Noninterest income to assets 1.54 1.21 1.20 1.22 1.57 1.63 1.33 1.45 1.85 1.35 1.40 1.91

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

Loan and lease loss provision to assets 0.29 0.12 0.13 0.23 0.45 0.23 0.32 0.36 0.14 0.29 0.26 0.47

Net operating income to assets 1.03 0.88 1.06 1.03 1.06 1.02 0.86 1.01 0.99 1.06 1.06 1.40

Pretax return on assets 1.51 1.05 1.35 1.48 1.59 1.49 1.23 1.50 1.40 1.57 1.41 2.18

Return on assets 1.04 0.91 1.08 1.05 1.06 1.03 0.87 1.02 1.00 1.09 1.07 1.41

Return on equity 9.32 7.03 9.53 8.97 8.88 9.70 7.23 8.33 9.66 10.83 9.65 11.70

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

Loan and lease loss provision to 

net charge-offs 112.50 105.39 138.85 135.89 118.52 101.20 112.88 113.23 101.52 101.97 130.65 132.04

Efficiency ratio 58.28 75.17 68.37 61.68 56.04 57.33 61.12 57.53 62.02 55.82 64.36 50.30

% of unprofitable institutions 4.19 8.89 2.78 1.45 0.95 0.00 5.39 6.67 5.19 2.15 3.55 4.04

% of institutions with earnings gains 65.23 55.94 66.46 79.71 74.29 55.56 69.61 67.64 64.99 61.62 64.27 69.66

Condition Ratios (%)

Earning assets to total assets 90.07 92.09 92.85 92.18 90.96 88.67 89.57 89.02 89.51 89.85 91.85 93.74

Loss allowance to:

Loans and leases 1.30 1.41 1.30 1.16 1.36 1.31 1.25 1.35 1.25 1.35 1.25 1.36

Noncurrent loans and leases 92.26 112.57 133.04 120.57 111.16 72.99 109.57 83.10 85.28 76.28 94.09 172.92

Noncurrent assets plus

other real estate owned to assets 0.86 1.10 0.95 0.82 0.78 0.90 0.70 1.03 0.79 1.00 1.03 0.53

Equity capital ratio 11.11 12.72 11.15 11.58 11.87 10.50 12.11 12.05 10.32 9.87 10.97 11.79

Core capital (leverage) ratio 9.48 12.63 10.98 10.46 10.17 8.61 9.95 9.52 9.03 8.74 9.97 10.90

Common equity tier 1 capital ratio 12.87 20.17 15.32 13.47 12.97 12.25 12.98 12.58 12.97 11.90 13.11 15.03

Tier 1 risk-based capital ratio 12.96 20.22 15.36 13.50 13.15 12.29 13.13 12.68 13.03 11.90 13.22 15.20

Total risk-based capital ratio 14.35 21.29 16.47 14.50 14.72 13.68 14.57 14.14 14.20 13.56 14.34 16.36

Net loans and leases to deposits 71.22 69.65 79.86 87.14 77.02 62.70 73.97 73.24 65.68 68.82 77.59 74.72

Net loans to total assets 54.73 58.49 66.66 69.29 59.12 47.24 55.52 57.68 48.95 51.93 64.00 60.37

Domestic deposits to total assets 69.41 83.97 83.46 79.22 73.14 62.91 68.1 76.15 65.71 59.1 82.41 80.16

Structural Changes

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

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

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

PRIOR FULL YEARS

(The way it was...)

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

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

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

Total assets (in billions) 2015 $15,967.7 $99.2 $1,199.9 $1,682.4 $5,163.6 $7,822.6 $3,074.1 $3,372.6 $3,503.7 $3,444.0 $943.1 $1,630.3

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

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

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

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

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

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

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

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

Noncurrent assets plus 

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

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

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

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

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

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

* See Table V-A (page 13) for explanations.
2 0 1 7  •Volume 1 1  • Number 1

10 FDIC QUARTERLY

TABLE IV-A. Fourth Quarter 2016, All FDIC-Insured Institutions

Asset Concentration Groups*

FOURTH QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

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

Commercial banks 5,113 12 5 1,411 2,718 110 50 272 478 57

Savings institutions 800 1 0 18 308 351 15 28 71 8

Total assets (in billions) $16,780.2 $519.0 $4,052.7 $284.9 $5,629.5 $330.8 $256.0 $51.0 $97.5 $5,558.8

Commercial banks 15,629.0 447.2 4,052.7 279.3 5,159.0 89.4 156.5 46.5 83.4 5,315.1

Savings institutions 1,151.2 71.8 0.0 5.6 470.5 241.4 99.5 4.6 14.2 243.7

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

Commercial banks 11,983.1 223.2 2,932.9 232.5 4,085.1 76.7 132.2 38.0 71.0 4,191.3

Savings institutions 911.6 54.7 0.0 3.3 349.5 186.1 83.1 3.1 11.6 220.3

Bank net income (in millions) 43,700 2,815 10,528 775 13,259 833 508 414 211 14,357

Commercial banks 40,369 2,312 10,528 739 11,892 334 363 176 189 13,835

Savings institutions 3,330 503 0 36 1,366 498 145 238 22 522

Performance Ratios (annualized, %)

Yield on earning assets 3.54 12.08 2.72 4.17 3.75 3.33 3.80 3.05 3.85 3.08

Cost of funding earning assets 0.38 1.27 0.36 0.48 0.41 0.49 0.36 0.31 0.41 0.27

Net interest margin 3.16 10.82 2.36 3.68 3.35 2.84 3.44 2.73 3.44 2.80

Noninterest income to assets 1.49 2.41 1.73 0.71 1.29 1.27 1.09 7.87 1.03 1.45

Noninterest expense to assets 2.58 5.49 2.34 2.62 2.80 2.47 2.64 6.08 3.09 2.23

Loan and lease loss provision to assets 0.29 3.47 0.16 0.21 0.19 0.03 0.50 0.06 0.10 0.22

Net operating income to assets 1.04 2.21 1.01 1.09 0.94 0.99 0.80 3.24 0.86 1.03

Pretax return on assets 1.48 3.36 1.33 1.31 1.35 1.47 1.30 4.26 1.03 1.54

Return on assets 1.04 2.21 1.03 1.10 0.95 1.01 0.80 3.26 0.87 1.04

Return on equity 9.34 14.71 10.40 9.50 7.95 8.89 7.99 20.91 7.44 9.45

Net charge-offs to loans and leases 0.53 3.79 0.64 0.25 0.27 0.06 0.60 0.33 0.23 0.42

Loan and lease loss provision to 

net charge-offs 99.91 114.88 68.24 125.19 102.97 95.13 117.50 62.83 78.85 100.87

Efficiency ratio 58.36 43.81 60.86 62.94 63.08 62.22 53.61 58.47 73.11 55.04

% of unprofitable institutions 8.12 0.00 0.00 8.54 6.61 12.36 13.85 13.00 9.11 4.62

% of institutions with earnings gains 59.04 76.92 100.00 50.31 65.04 57.27 58.46 54.67 50.09 73.85

Structural Changes

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

Institutions absorbed by mergers 65 0 0 13 48 0 0 1 3 0

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

PRIOR FOURTH QUARTERS

(The way it was...)

Return on assets (%) 2015 1.02 2.66 0.82 1.12 0.90 0.90 0.81 3.41 2.14 1.12

 2013 1.09 3.65 0.92 1.08 0.96 0.96 0.91 2.18 0.76 1.04

 2011 0.73 3.13 0.60 1.04 0.38 0.48 1.39 2.11 0.85 0.86

Net charge-offs to loans & leases (%) 2015 0.49 3.01 0.68 0.17 0.24 0.10 0.71 0.32 0.21 0.44

 2013 0.61 3.09 0.81 0.20 0.38 0.28 0.88 0.66 0.37 0.40

 2011 1.39 4.34 1.72 0.51 1.13 0.90 1.88 0.65 0.73 1.10

* See Table V-A (page 12) for explanations.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 11

TABLE IV-A. Fourth Quarter 2016, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FOURTH QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

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

Commercial banks 5,113 1,354 3,155 506 89 9 375 651 1,063 1,431 1,186 407

Savings institutions 800 187 482 115 16 0 349 69 208 54 82 38

Total assets (in billions) $16,780.2 $91.5 $1,173.9 $1,762.2 $5,305.7 $8,446.8 $3,096.5 $3,507.3 $3,784.3 $3,633.9 $1,011.3 $1,747.0

Commercial banks 15,629.0 80.9 997.7 1,444.8 4,658.9 8,446.8 2,658.8 3,424.1 3,672.2 3,574.2 886.0 1,413.8

Savings institutions 1,151.2 10.6 176.3 317.5 646.9 0.0 437.7 83.2 112.1 59.6 125.3 333.2

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

Commercial banks 11,983.1 68.6 840.0 1,159.2 3,551.2 6,364.1 1,995.7 2,695.2 2,741.5 2,694.0 731.7 1,125.0

Savings institutions 911.6 8.2 139.9 242.0 521.5 0.0 328.4 67.1 79.1 48.2 102.5 286.4

Bank net income (in millions) 43,700 171 3,079 4,316 13,724 22,410 6,776 8,668 10,184 9,881 2,466 5,725

Commercial banks 40,369 143 2,592 3,603 11,621 22,410 5,990 8,476 9,825 9,767 2,160 4,151

Savings institutions 3,330 28 487 713 2,102 0 786 192 358 114 306 1,573

Performance Ratios (annualized, %)

Yield on earning assets 3.54 4.16 4.16 4.07 3.97 3.06 3.61 3.65 2.83 3.67 3.99 4.19

Cost of funding earning assets 0.38 0.44 0.46 0.44 0.45 0.31 0.48 0.32 0.30 0.44 0.33 0.40

Net interest margin 3.16 3.72 3.70 3.64 3.52 2.75 3.13 3.33 2.52 3.23 3.66 3.79

Noninterest income to assets 1.49 1.24 1.23 1.22 1.50 1.58 1.26 1.41 1.77 1.34 1.36 1.85

Noninterest expense to assets 2.58 3.66 3.22 2.90 2.71 2.34 2.54 2.56 2.53 2.43 3.16 2.81

Loan and lease loss provision to assets 0.29 0.16 0.15 0.32 0.46 0.20 0.36 0.34 0.09 0.29 0.27 0.53

Net operating income to assets 1.04 0.74 1.05 0.97 1.04 1.05 0.88 0.99 1.07 1.06 0.98 1.31

Pretax return on assets 1.48 0.86 1.30 1.38 1.52 1.50 1.17 1.48 1.41 1.57 1.30 2.08

Return on assets 1.04 0.75 1.06 0.99 1.04 1.06 0.87 0.99 1.07 1.09 0.98 1.33

Return on equity 9.34 5.79 9.34 8.49 8.70 10.04 7.23 8.13 10.45 10.89 8.85 11.16

Net charge-offs to loans and leases 0.53 0.32 0.22 0.35 0.72 0.50 0.62 0.58 0.30 0.61 0.33 0.66

Loan and lease loss provision to 

net charge-offs 99.91 85.30 104.55 132.48 106.37 85.62 103.79 100.84 62.26 89.63 127.36 131.46

Efficiency ratio 58.36 78.22 68.74 60.87 56.51 57.21 60.97 57.55 62.28 56.07 64.50 50.34

% of unprofitable institutions 8.12 16.81 5.53 2.58 3.81 0.00 7.60 11.39 8.26 8.01 7.65 4.94

% of institutions with earnings gains 59.04 51.65 58.89 75.85 73.33 55.56 66.02 64.17 58.46 54.28 56.94 62.92

Structural Changes

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

Institutions absorbed by mergers 65 24 33 7 1 0 6 11 18 13 11 6

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

PRIOR FOURTH QUARTERS

(The way it was...)

Return on assets (%) 2015 1.02 0.75 1.19 1.03 0.99 1.02 0.77 1.02 1.02 1.09 0.97 1.43

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

 2011 0.73 0.30 0.40 0.61 0.79 0.79 0.83 0.25 0.69 0.86 0.81 1.45

Net charge-offs to loans & leases (%) 2015 0.49 0.31 0.22 0.30 0.59 0.54 0.53 0.54 0.28 0.59 0.35 0.62

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

 2011 1.39 0.78 1.09 1.23 1.55 1.39 1.55 1.45 1.21 1.58 1.00 1.07

* See Table V-A (page 13) for explanations.
2 0 1 7  •Volume 1 1  • Number 1

12 FDIC QUARTERLY

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

Asset Concentration Groups*

December 31, 2016 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.75 0.27 1.01 0.67 0.49 1.01 0.44 1.50 1.29 1.07

Construction and development 0.32 0.00 1.01 0.60 0.29 0.67 0.30 0.74 0.89 0.19

Nonfarm nonresidential 0.25 0.00 0.27 0.56 0.25 0.24 0.40 0.83 0.93 0.20

Multifamily residential real estate 0.13 0.00 0.13 0.33 0.12 0.15 0.02 3.23 0.53 0.13

Home equity loans 0.68 0.00 1.23 0.32 0.50 0.61 0.37 0.71 0.69 0.73

Other 1-4 family residential 1.30 0.31 1.39 1.11 0.99 1.15 0.45 2.14 1.68 1.68

Commercial and industrial loans 0.29 0.96 0.25 0.74 0.29 0.51 0.10 1.35 1.00 0.26

Loans to individuals 1.43 1.49 1.19 1.43 1.31 1.16 0.84 1.85 1.67 1.71

Credit card loans 1.28 1.49 1.08 1.11 0.93 1.50 0.88 1.77 1.89 1.17

Other loans to individuals 1.57 1.50 1.39 1.46 1.36 1.12 0.82 1.86 1.67 2.02

All other loans and leases (including farm) 0.27 1.26 0.33 0.49 0.20 0.26 0.08 0.44 0.69 0.26

Total loans and leases 0.71 1.47 0.73 0.66 0.49 0.97 0.63 1.47 1.26 0.86

Percent of Loans Noncurrent**

All real estate loans 1.95 0.56 2.79 0.94 1.08 3.21 1.51 1.67 1.30 3.22

Construction and development 0.73 0.00 0.26 0.77 0.75 0.88 4.18 2.49 1.02 0.66

Nonfarm nonresidential 0.71 0.00 0.93 0.94 0.69 1.56 3.94 1.49 1.41 0.59

Multifamily residential real estate 0.18 0.00 0.10 0.24 0.20 0.45 0.50 2.45 1.14 0.14

Home equity loans 2.41 0.00 3.63 0.43 1.32 1.86 2.41 0.94 0.56 3.45

Other 1-4 family residential 3.28 0.63 3.98 0.93 1.87 3.64 1.20 1.68 1.41 4.76

Commercial and industrial loans 1.27 0.87 1.47 1.46 1.28 1.06 0.15 1.42 1.19 1.19

Loans to individuals 0.92 1.41 1.02 0.54 0.76 0.47 0.59 0.88 0.81 0.63

Credit card loans 1.27 1.45 1.13 0.34 0.86 0.91 1.25 0.76 0.58 1.09

Other loans to individuals 0.56 0.66 0.80 0.55 0.74 0.42 0.43 0.90 0.82 0.36

All other loans and leases (including farm) 0.22 0.09 0.16 0.86 0.33 0.27 1.90 0.31 0.49 0.11

Total loans and leases 1.41 1.39 1.57 0.97 1.04 2.97 0.94 1.46 1.20 1.80

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.06 0.18 0.07 0.05 0.05 0.04 0.08 0.13 0.09 0.07

Construction and development -0.03 0.00 0.08 -0.05 -0.02 -0.08 1.08 0.15 0.04 -0.12

Nonfarm nonresidential 0.02 0.00 -0.01 0.06 0.03 0.05 0.22 0.08 0.13 -0.04

Multifamily residential real estate 0.00 0.00 0.00 0.11 0.00 -0.01 0.00 1.66 0.04 -0.01

Home equity loans 0.27 -1.13 0.36 -0.01 0.17 0.04 0.41 0.10 0.04 0.38

Other 1-4 family residential 0.06 0.22 0.05 0.08 0.07 0.04 0.02 0.09 0.09 0.06

Commercial and industrial loans 0.45 2.40 0.41 0.35 0.46 0.07 0.04 0.28 0.50 0.41

Loans to individuals 1.97 3.39 2.39 0.54 0.87 0.96 0.91 0.50 0.55 1.58

Credit card loans 3.16 3.47 3.18 1.53 2.28 3.57 2.49 0.97 1.43 2.79

Other loans to individuals 0.79 1.70 1.02 0.45 0.67 0.68 0.50 0.44 0.54 0.86

All other loans and leases (including farm) 0.13 0.21 0.08 0.26 0.20 0.17 0.03 0.64 0.26 0.10

Total loans and leases 0.47 3.35 0.56 0.15 0.22 0.07 0.56 0.22 0.17 0.41

Loans Outstanding (in billions)

All real estate loans $4,603.2 $0.2 $551.1 $117.5 $2,404.1 $190.3 $57.4 $9.9 $42.2 $1,230.6

Construction and development 313.2 0.0 13.9 7.1 226.1 4.7 0.5 0.8 2.6 57.5

Nonfarm nonresidential 1,324.0 0.0 46.6 32.5 940.8 15.3 3.7 3.4 9.7 272.0

Multifamily residential real estate 382.7 0.0 71.9 4.0 246.6 5.5 0.7 0.3 1.3 52.4

Home equity loans 434.1 0.0 57.4 2.5 200.1 10.0 5.0 0.3 1.7 157.2

Other 1-4 family residential 1,995.0 0.2 316.5 28.4 749.9 154.2 47.3 4.6 23.4 670.6

Commercial and industrial loans 1,935.5 14.9 308.9 22.3 923.6 4.6 8.5 1.8 4.5 646.4

Loans to individuals 1,589.4 402.5 272.1 6.6 302.2 4.4 104.5 1.9 4.5 490.8

Credit card loans 799.8 384.1 177.9 0.5 34.7 0.5 21.1 0.2 0.1 180.7

Other loans to individuals 789.6 18.4 94.2 6.0 267.4 4.0 83.4 1.6 4.4 310.2

All other loans and leases (including farm) 1,179.4 0.2 344.5 45.3 299.8 9.6 9.8 0.8 3.5 466.0

Total loans and leases (plus unearned income) 9,307.5 417.9 1,476.6 191.6 3,929.7 208.9 180.2 14.3 54.6 2,833.8

Memo: Other Real Estate Owned (in millions)

All other real estate owned 10,935.8 0.1 627.2 331.3 7,156.7 285.7 91.8 111.6 261.5 2,070.0

Construction and development 3,368.8 0.0 3.2 103.1 2,747.7 70.3 9.2 52.7 88.5 294.2

Nonfarm nonresidential 2,807.0 0.0 50.3 109.8 2,202.3 37.0 15.9 28.5 78.0 285.2

Multifamily residential real estate 174.2 0.0 1.0 15.2 149.5 1.5 0.1 0.9 4.1 2.1

1-4 family residential 3,904.1 0.1 421.6 64.1 1,866.9 158.5 52.9 28.9 83.7 1,227.2

Farmland 144.4 0.0 0.0 39.0 92.5 1.3 0.1 0.5 7.2 3.8

GNMA properties 526.4 0.0 142.0 0.2 97.8 17.1 13.6 0.2 0.1 255.4

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 13

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

Asset Size Distribution Geographic Regions*

December 31, 2016 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.75 1.18 0.64 0.37 0.59 1.11 0.53 0.93 0.77 1.02 0.72 0.32

Construction and development 0.32 0.76 0.46 0.25 0.29 0.34 0.47 0.24 0.30 0.22 0.39 0.29

Nonfarm nonresidential 0.25 0.90 0.40 0.22 0.22 0.21 0.28 0.23 0.29 0.24 0.34 0.16

Multifamily residential real estate 0.13 0.50 0.24 0.11 0.11 0.14 0.13 0.07 0.15 0.26 0.17 0.05

Home equity loans 0.68 0.65 0.50 0.40 0.52 0.87 0.46 0.80 0.79 0.76 0.50 0.31

Other 1-4 family residential 1.30 1.72 1.05 0.67 1.06 1.70 0.93 1.63 1.20 1.69 1.48 0.53

Commercial and industrial loans 0.29 1.09 0.60 0.45 0.24 0.25 0.26 0.27 0.30 0.23 0.43 0.35

Loans to individuals 1.43 2.04 1.54 1.44 1.29 1.55 1.13 2.00 1.16 1.35 1.15 1.34

Credit card loans 1.28 5.17 2.10 1.74 1.40 1.11 1.05 1.52 1.07 1.14 0.88 1.74

Other loans to individuals 1.57 1.98 1.50 1.33 1.14 1.95 1.27 2.49 1.19 1.65 1.27 1.00

All other loans and leases (including farm) 0.27 0.53 0.45 0.24 0.16 0.31 0.15 0.32 0.31 0.28 0.26 0.26

Total loans and leases 0.71 1.14 0.66 0.45 0.63 0.85 0.56 0.90 0.64 0.79 0.67 0.55

Percent of Loans Noncurrent** 

All real estate loans 1.95 1.31 0.97 0.89 1.49 3.29 1.44 2.51 2.18 2.77 1.27 0.59

Construction and development 0.73 1.20 1.27 0.80 0.41 0.63 0.79 1.23 0.53 0.49 0.64 0.55

Nonfarm nonresidential 0.71 1.45 0.89 0.68 0.69 0.60 0.88 0.65 0.78 0.71 0.69 0.48

Multifamily residential real estate 0.18 0.56 0.53 0.22 0.10 0.15 0.15 0.23 0.18 0.23 0.37 0.13

Home equity loans 2.41 0.64 0.57 0.69 1.43 3.68 2.40 3.12 2.39 2.38 1.34 0.59

Other 1-4 family residential 3.28 1.44 1.11 1.40 2.60 4.86 2.29 3.99 3.44 4.64 2.48 0.76

Commercial and industrial loans 1.27 1.80 1.22 1.48 1.30 1.21 0.98 1.17 1.05 1.59 2.09 1.26

Loans to individuals 0.92 0.93 0.83 0.81 1.06 0.79 0.93 1.05 0.72 0.87 0.93 0.92

Credit card loans 1.27 2.75 1.50 1.57 1.39 1.09 1.08 1.40 1.06 1.17 1.25 1.67

Other loans to individuals 0.56 0.89 0.78 0.53 0.60 0.52 0.67 0.71 0.59 0.45 0.78 0.26

All other loans and leases (including farm) 0.22 0.71 0.63 0.63 0.27 0.14 0.21 0.16 0.17 0.27 0.33 0.39

Total loans and leases 1.41 1.26 0.97 0.96 1.22 1.79 1.14 1.62 1.46 1.77 1.33 0.79

Percent of Loans Charged-Off (net, YTD) 

All real estate loans 0.06 0.09 0.06 0.04 0.05 0.07 0.06 0.10 0.06 0.05 0.03 -0.01

Construction and development -0.03 -0.03 0.02 -0.02 -0.05 -0.06 -0.01 0.09 -0.06 -0.10 -0.03 -0.16

Nonfarm nonresidential 0.02 0.13 0.06 0.04 0.01 -0.05 0.02 0.02 0.04 -0.02 0.04 0.00

Multifamily residential real estate 0.00 0.10 0.06 0.01 -0.01 -0.01 0.00 -0.01 -0.01 0.03 0.01 0.01

Home equity loans 0.27 0.10 0.05 0.09 0.20 0.37 0.19 0.39 0.22 0.36 0.15 0.01

Other 1-4 family residential 0.06 0.10 0.07 0.06 0.07 0.05 0.09 0.08 0.06 0.05 0.03 0.00

Commercial and industrial loans 0.45 0.53 0.33 0.58 0.48 0.40 0.38 0.38 0.36 0.49 0.63 0.65

Loans to individuals 1.97 0.82 0.81 1.59 2.18 1.87 2.15 2.09 1.21 2.35 1.42 1.90

Credit card loans 3.16 15.64 4.85 3.85 3.29 2.96 2.90 3.30 2.97 3.25 2.43 3.52

Other loans to individuals 0.79 0.62 0.53 0.80 0.65 0.91 0.84 0.83 0.59 1.17 0.94 0.49

All other loans and leases (including farm) 0.13 0.16 0.27 0.35 0.13 0.10 0.13 0.09 0.11 0.15 0.30 0.13

Total loans and leases 0.47 0.20 0.14 0.25 0.64 0.47 0.52 0.54 0.27 0.54 0.31 0.58

Loans Outstanding (in billions) 

All real estate loans $4,603.2 $36.9 $611.6 $896.7 $1,401.2 $1,656.8 $925.7 $921.3 $957.4 $869.6 $414.6 $514.6

Construction and development 313.2 2.2 56.9 84.4 100.9 68.9 55.3 60.2 54.5 48.1 62.4 32.7

Nonfarm nonresidential 1,324.0 9.3 232.7 364.2 427.8 289.9 295.7 272.1 208.2 190.8 168.3 188.8

Multifamily residential real estate 382.7 1.0 33.1 91.6 140.0 117.0 138.3 43.8 101.1 33.0 17.1 49.5

Home equity loans 434.1 0.9 25.4 48.8 142.7 216.3 83.1 114.2 110.0 78.3 19.9 28.8

Other 1-4 family residential 1,995.0 16.6 215.4 287.0 574.4 901.6 349.2 418.2 460.9 432.8 130.5 203.4

Commercial and industrial loans 1,935.5 6.3 99.6 190.2 715.9 923.5 295.9 481.0 418.6 389.1 128.0 222.9

Loans to individuals 1,589.4 3.5 31.7 85.4 735.8 733.0 341.3 391.9 224.9 322.0 63.1 246.2

Credit card loans 799.8 0.1 2.2 22.6 428.4 346.5 217.7 197.6 60.5 189.3 20.2 114.7

Other loans to individuals 789.6 3.5 29.5 62.8 307.4 386.4 123.6 194.4 164.5 132.7 42.9 131.5

All other loans and leases (including farm) 1,179.4 7.5 50.2 63.6 327.6 730.5 178.6 256.9 275.2 333.0 49.9 85.9

Total loans and leases 

(plus unearned income) 9,307.5 54.3 793.1 1,235.9 3,180.5 4,043.7 1,741.4 2,051.0 1,876.1 1,913.7 655.7 1,069.6

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 10,935.8 318.1 3,415.7 2,481.9 2,246.2 2,473.9 1,814.0 2,646.1 2,110.7 1,970.1 1,653.0 742.0

Construction and development 3,368.8 95.2 1,570.8 975.2 411.0 316.7 301.0 969.6 455.6 676.2 710.0 256.4

Nonfarm nonresidential 2,807.0 103.5 1,074.5 765.0 572.6 291.4 441.5 588.5 555.8 400.6 565.8 254.7

Multifamily residential real estate 174.2 14.4 68.9 62.3 10.7 18.0 37.9 28.8 22.2 48.8 18.6 18.0

1-4 family residential 3,904.1 93.0 622.8 614.5 1,101.6 1,472.1 956.6 958.2 881.9 611.3 308.0 188.1

Farmland 144.4 11.9 77.1 43.3 9.8 2.2 7.4 36.1 20.5 25.1 41.8 13.5

GNMA properties 526.4 0.2 1.7 21.6 140.5 362.4 69.6 64.8 174.7 197.2 8.8 11.3

* Regions:

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

U.S. Virgin Islands

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

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

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

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

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

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

14 FDIC QUARTERLY

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

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd

Quarter 

2016

1st

Quarter 

2016

4th 

Quarter 

2015

% 

Change 

15Q4-

16Q4

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,426 1,441 1,446 1,429 1,414 0.8 62 839 418 98 9

Total assets of institutions reporting derivatives $15,185,716 $15,188,993 $15,033,240 $14,766,715 $14,422,381 5.3 $4,669 $357,931 $1,325,790 $5,050,519 $8,446,806

Total deposits of institutions reporting derivatives 11,590,741 11,513,887 11,313,864 11,189,572 10,938,409 6.0 3,923 296,470 1,058,035 3,868,224 6,364,088

Total derivatives 166,739,373 179,902,253 192,350,486 195,508,825 181,986,620 -8.4 191 19,876 116,664 43,592,326 123,010,315

Derivative Contracts by Underlying Risk Exposure 

Interest rate 124,425,423 132,992,947 143,794,699 147,218,272 138,363,456 -10.1 191 19,855 112,354 36,689,697 87,603,326

Foreign exchange* 33,275,653 36,299,774 37,701,788 37,129,026 33,133,791 0.4 0 1 3,318 6,333,466 26,938,868

Equity 2,487,752 2,734,807 2,672,364 2,533,921 2,395,120 3.9 0 6 183 165,180 2,322,383

Commodity & other (excluding credit derivatives) 1,257,181 1,312,260 1,328,302 1,209,774 1,107,759 13.5 0 5 23 86,094 1,171,059

Credit 5,293,365 6,562,465 6,853,333 7,417,833 6,986,493 -24.2 0 9 787 317,890 4,974,679

Total 166,739,373 179,902,253 192,350,486 195,508,825 181,986,620 -8.4 191 19,876 116,664 43,592,326 123,010,315

Derivative Contracts by Transaction Type 

Swaps 96,383,730 103,013,911 111,900,682 114,814,419 107,392,487 -10.3 43 7,820 79,068 25,547,119 70,749,680

Futures & forwards 34,192,737 36,958,352 38,790,406 37,151,052 35,684,999 -4.2 61 6,079 20,090 8,090,412 26,076,095

Purchased options 14,772,195 15,466,148 16,277,239 16,857,478 15,469,691 -4.5 6 663 4,544 4,793,181 9,973,802

Written options 14,557,116 15,459,965 16,012,000 16,706,898 15,419,416 -5.6 82 5,305 11,955 4,716,621 9,823,152

Total 159,905,778 170,898,375 182,980,326 185,529,847 173,966,592 -8.1 191 19,866 115,657 43,147,333 116,622,729

Fair Value of Derivative Contracts 

Interest rate contracts 62,632 77,293 75,051 75,481 67,222 -6.8 1 128 212 29,356 32,934

Foreign exchange contracts 10,775 13,372 11,369 -11,530 -12,485 N/M 0 0 17 6,110 4,648

Equity contracts -2,181 1,643 6,637 5,035 5,318 N/M 0 0 0 -39 -2,141

Commodity & other (excluding credit derivatives) 622 -2,185 -3,151 -4,310 -3,571 N/M 0 0 1 263 359

Credit derivatives as guarantor 16,617 17,871 1,037 2,901 -2,697 N/M 0 -1 -2 127 16,492

Credit derivatives as beneficiary -15,028 -17,575 -167 -966 7,076 N/M 0 0 -29 330 -15,329

Derivative Contracts by Maturity** 

Interest rate contracts < 1 year 55,023,712 58,874,863 66,424,471 65,650,642 55,047,362 0.0 60 5,747 19,709 11,407,535 43,590,661

 1-5 years 43,262,430 45,382,723 47,001,897 50,714,670 49,406,784 -12.4 24 2,017 30,468 11,623,935 31,605,986

 > 5 years 29,761,959 32,522,164 33,930,510 34,846,003 32,980,646 -9.8 26 5,902 45,093 9,068,487 20,642,450

Foreign exchange and gold contracts < 1 year 23,909,631 25,797,765 26,622,784 26,231,748 24,129,842 -0.9 0 1 1,810 4,297,505 19,610,316

 1-5 years 4,452,789 4,096,173 4,112,254 4,081,595 3,986,436 11.7 0 0 507 860,473 3,591,810

 > 5 years 2,420,119 1,901,381 2,150,431 1,819,360 1,647,804 46.9 0 0 89 660,510 1,759,520

Equity contracts < 1 year 1,847,254 1,954,392 1,907,096 1,841,069 1,743,252 6.0 0 0 13 50,048 1,797,193

 1-5 years 680,094 821,844 709,947 674,710 627,875 8.3 0 0 69 42,326 637,698

 > 5 years 122,956 129,226 134,063 129,076 130,188 -5.6 0 0 0 15,731 107,226

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 2,681,965 2,826,215 3,032,137 2,813,615 2,651,133 1.2 0 4 33 87,564 2,594,363

 1-5 years 3,198,964 4,009,130 4,354,280 4,800,922 4,694,153 -31.9 0 5 102 163,696 3,035,160

 > 5 years 339,228 540,260 368,331 619,196 405,131 -16.3 0 5 169 29,005 310,049

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 29.2 35.2 37.2 34.5 30.1 0.0 0.3 0.6 19.3 42.7

Total potential future exposure to tier 1 capital (%) 44.0 41.0 43.5 47.5 48.3 0.1 0.4 0.7 21.1 70.1

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 73.2 76.2 80.7 82.0 78.4 0.1 0.7 1.3 40.4 112.8

Credit losses on derivatives*** 30.0 38.0 32.0 13.0 78.0 -61.5 0.0 0.0 0.0 15.0 15

HELD FOR TRADING 

Number of institutions reporting derivatives 260 251 257 252 250 4.0 7 98 92 55 8

Total assets of institutions reporting derivatives 12,093,909 12,138,725 11,985,152 11,719,838 11,460,982 5.5 545 41,670 353,800 3,520,118 8,177,775

Total deposits of institutions reporting derivatives 9,222,750 9,188,820 8,976,508 8,831,048 8,660,644 6.5 474 34,653 279,491 2,772,980 6,135,152

Derivative Contracts by Underlying Risk Exposure 

Interest rate 121,902,845 130,490,614 141,316,485 144,689,891 136,029,963 -10.4 8 1,275 33,060 36,156,096 85,712,406

Foreign exchange 31,226,301 33,353,870 34,671,042 34,029,316 31,666,580 -1.4 0 0 2,623 6,175,730 25,047,947

Equity 2,472,540 2,718,187 2,656,373 2,510,439 2,370,468 4.3 0 0 0 152,887 2,319,653

Commodity & other 1,255,199 1,310,469 1,326,621 1,208,052 1,105,989 13.5 0 0 5 84,945 1,170,248

Total 156,856,885 167,873,141 179,970,521 182,437,698 171,173,001 -8.4 8 1,276 35,688 42,569,659 114,250,254

Trading Revenues: Cash & Derivative Instruments 

Interest rate -1,378 2,962 1,906 3,072 155 N/M 0 -1 35 -3,030 1,618

Foreign exchange 5,941 2,294 3,736 1,407 3,401 74.7 0 0 4 3,742 2,195

Equity 574 728 972 670 741 -22.5 0 0 3 37 534

Commodity & other (including credit derivatives) 844 437 420 455 -25 N/M 0 0 1 28 816

Total trading revenues 5,982 6,421 7,034 5,604 4,271 40.1 0 0 42 777 5,163

Share of Revenue 

Trading revenues to gross revenues (%) 4.6 4.9 5.5 4.6 3.5 0.0 0.0 1.1 2.2 5.8

Trading revenues to net operating revenues (%) 19.9 20.7 24.7 22.6 15.7 0.0 -0.2 4.9 10.5 23.8

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 1,296 1,320 1,325 1,302 1,299 -0.2 56 758 380 93 9

Total assets of institutions reporting derivatives 14,888,132 14,893,525 14,754,766 14,523,714 14,204,940 4.8 4,216 325,223 1,222,487 4,889,400 8,446,806

Total deposits of institutions reporting derivatives 11,349,367 11,271,423 11,087,225 10,994,562 10,764,801 5.4 3,529 269,101 975,916 3,736,733 6,364,088

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,522,578 2,502,333 2,478,214 2,528,380 2,333,492 8.1 184 18,580 79,294 533,601 1,890,919

Foreign exchange 509,122 504,491 513,919 538,565 433,677 17.4 0 1 475 30,632 478,014

Equity 15,211 16,620 15,991 23,483 24,652 -38.3 0 6 183 12,293 2,730

Commodity & other 1,982 1,791 1,681 1,722 1,770 12.0 0 5 17 1,149 811

Total notional amount 3,048,893 3,025,234 3,009,806 3,092,149 2,793,591 9.1 184 18,591 79,969 577,675 2,372,475

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

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

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

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

more in total assets.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

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

Asset Size Distribution

(dollar figures in millions)

4th 

Quarter 

2016

3rd 

Quarter

2016

2nd 

Quarter

2016

1st 

Quarter

2016

4th 

Quarter

2015

% 

Change 

15Q4-

16Q4

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 75 74 74 73 73 2.7 0 15 19 34 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $643,700 $668,378 $687,192 $704,679 $715,914 -10.1 $0 $2,195 $14,260 $85,409 $541,836

Home equity loans 25 27 29 29 30 -16.7 0 0 0 25 0

Credit card receivables 12,879 13,491 13,485 13,400 13,502 -4.6 0 0 0 12,794 85

Auto loans 11,543 11,024 8,935 5,604 6,095 89.4 0 0 2,025 9,518 0

Other consumer loans 4,576 4,732 4,907 5,092 5,286 -13.4 0 0 0 2,368 2,208

Commercial and industrial loans 276 161 164 200 15 1,740.0 0 1 0 0 275

All other loans, leases, and other assets 64,170 65,387 71,245 74,712 79,844 -19.6 0 94 8,789 1,590 53,697

Total securitized and sold 737,169 763,200 785,958 803,716 820,686 -10.2 0 2,291 25,073 111,704 598,101

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 2,056 2,114 2,080 2,162 2,363 -13.0 0 4 0 1,343 709

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

Credit card receivables 1,162 1,209 1,207 1,152 1,108 4.9 0 0 0 1,162 0

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

Other consumer loans 97 96 91 86 89 9.0 0 0 0 0 97

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

All other loans, leases, and other assets 1,142 841 971 902 990 15.4 0 0 51 15 1,076

Total credit exposure 4,884 4,696 4,349 4,302 4,549 7.4 0 4 51 2,948 1,882

Total unused liquidity commitments provided to institution’s own 

securitizations 175 140 138 73 36 386.1 0 0 0 0 175

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

1-4 family residential loans 4.1 3.7 3.6 3.1 3.9 0.0 2.2 1.5 3.4 4.3

Home equity loans 6.9 5.5 8.6 6.2 5.4 0.0 0.0 0.0 6.9 0

Credit card receivables 0.4 0.4 0.3 0.4 0.4 0.0 0.0 0.0 0.4 1.2

Auto loans 1.7 1.5 1.3 1.2 1.5 0.0 0.0 3.4 1.3 0

Other consumer loans 4.6 4.4 3.8 3.8 3.9 0.0 0.0 0.0 2.1 7.4

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

All other loans, leases, and other assets 0.7 0.4 0.4 0.5 0.5 0.0 1.1 0.1 0.3 0.8

Total loans, leases, and other assets 3.7 3.3 3.3 2.8 3.5 0.0 2.2 1.2 2.8 4

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

1-4 family residential loans 1.4 1.5 1.6 1.6 2.0 0.0 1.5 0.5 1.2 1.5

Home equity loans 47.1 47.4 45.5 47.3 47.8 0.0 0.0 0.0 47.1 0

Credit card receivables 0.3 0.3 0.3 0.3 0.3 0.0 0.0 0.0 0.3 1.2

Auto loans 0.3 0.3 0.2 0.2 0.2 0.0 0.0 0.7 0.3 0

Other consumer loans 4.2 3.8 3.6 3.9 3.9 0.0 0.0 0.0 1.1 7.6

Commercial and industrial loans 0.0 0.0 0.1 0.1 1.0 0.0 0.0 0.0 0.0 0

All other loans, leases, and other assets 1.3 1.5 1.3 1.4 1.2 0.0 8.2 0.4 0.6 1.4

Total loans, leases, and other assets 1.4 1.4 1.5 1.6 1.9 0.0 1.7 0.5 1.0 1.5

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 6.9 3.6 2.2 1.0 5.2 0.0 0.0 0.0 6.9 0

Credit card receivables 4.2 3.7 3.4 3.0 1.8 0.0 0.0 0.0 4.2 4.7

Auto loans 0.7 0.5 0.3 0.3 0.4 0.0 0.0 1.7 0.5 0

Other consumer loans 1.0 0.7 0.5 0.2 0.8 0.0 0.0 0.0 0.9 1.1

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

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

Total loans, leases, and other assets 0.4 0.3 0.2 0.1 0.4 0.0 0.1 0.1 0.5 0.4

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

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

Credit card receivables 13,335 11,355 11,954 12,811 15,059 -11.4 0 0 0 13,335 0

Commercial and industrial loans 327 216 219 268 0 0.0 0 0 0 0 327

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

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 1,066 1,078 1,088 1,091 1,089 -2.1 103 726 181 48 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 38,301 37,756 36,579 36,826 38,602 -0.8 1,059 17,179 9,351 4,895 5,818

Home equity, credit card receivables, auto, and other consumer loans 580 626 634 684 712 -18.5 0 3 19 26 531

Commercial and industrial loans 364 339 340 271 215 69.3 0 24 34 279 26

All other loans, leases, and other assets 89,265 84,258 80,687 79,266 73,499 21.5 0 28 158 26,345 62,734

Total sold and not securitized 128,510 122,979 118,240 117,047 113,028 13.7 1,059 17,234 9,562 31,545 69,109

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 10,865 10,997 10,833 9,503 10,037 8.2 70 3,097 3,623 2,772 1,304

Home equity, credit card receivables, auto, and other consumer loans 147 148 134 161 163 -9.8 0 3 18 2 123

Commercial and industrial loans 308 183 186 181 151 104.0 0 24 5 279 0

All other loans, leases, and other assets 25,036 23,286 22,193 21,684 20,138 24.3 0 24 43 7,915 17,053

Total credit exposure 36,355 34,615 33,346 31,529 30,489 19.2 70 3,148 3,689 10,968 18,480

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 104 104 109 110 111 -6.3 6 56 22 14 6

Total credit exposure 35,050 40,187 42,341 41,078 41,500 -15.5 7 139 221 2,049 32,634

Total unused liquidity commitments 1,131 1,411 2,853 1,387 834 35.6 0 13 2 489 627

Other

Assets serviced for others* 6,002,174 5,997,016 6,035,190 6,056,621 6,061,667 -1.0 5,040 164,168 297,860 1,267,231 4,267,875

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 21,720 23,084 21,665 18,378 13,980 55.4 0 0 0 0 21,720

Unused liquidity commitments to conduits sponsored by institutions 

 and others 21,832 24,417 24,287 26,866 29,257 -25.4 0 0 6 1,824 20,001

Net servicing income (for the quarter) 5,039 2,647 1,174 882 3,328 51.4 14 293 336 1,479 2,918

Net securitization income (for the quarter) 228 287 181 203 250 -8.8 0 9 4 187 28

Total credit exposure to Tier 1 capital (%)** 4.9 5.1 5.2 5.1 5.1 0.7 2.6 2.2 3.1 7.4

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

** Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above.
2 0 1 7  •Volume 1 1  • Number 1

16 FDIC QUARTERLY

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

All Insured Institutions Asset Size Distribution

(dollar figures in millions)

Dec 31

2016

Dec 31

2015

Dec 31

2014

Dec 31

2013

% Change 

2015-2016

Less 

Than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

Number of institutions reporting 5,913 6,182 6,509 6,812 -4.4 1,541 3,637 621 105 9

Number of institutions with fiduciary powers 1,805 1,857 1,923 1,991 -2.8 228 1,146 351 71 9

Commercial banks 1,674 1,721 1,779 1,842 -2.7 210 1,083 307 65 9

Savings institutions 131 136 144 149 -3.7 18 63 44 6 0

Number of institutions exercising fiduciary powers 1,343 1,379 1,435 1,474 -2.6 138 842 291 63 9

Commercial banks 1,236 1,271 1,318 1,354 -2.8 121 791 257 58 9

Savings institutions 107 108 117 120 -0.9 17 51 34 5 0

Number of institutions reporting fiduciary activity 1,265 1,298 1,357 1,397 -2.5 130 784 279 63 9

Commercial banks 1,166 1,197 1,247 1,285 -2.6 113 738 248 58 9

Savings institutions 99 101 110 112 -2.0 17 46 31 5 0

Fiduciary and related assets - managed assets 

Personal trust and agency accounts 632,741 642,116 687,945 671,350 -1.5 16,697 53,201 72,718 234,808 255,317

Noninterest-bearing deposits 9,569 10,584 8,693 7,903 -9.6 19 722 153 325 8,349

Interest-bearing deposits 74,675 80,051 79,642 97,316 -6.7 269 4,803 7,744 12,157 49,702

U.S. Treasury and U.S. Government agency obligations 100,570 83,343 100,951 127,030 20.7 1,756 3,515 13,229 36,885 45,184

State, county and municipal obligations 199,548 194,887 180,255 176,967 2.4 5,817 10,846 20,033 78,262 84,591

Money market mutual funds 101,607 105,684 101,966 109,585 -3.9 2,483 8,061 11,306 36,023 43,734

Other short-term obligations 149,234 162,046 189,900 210,851 -7.9 35 81 784 118,332 30,003

Other notes and bonds 246,517 173,983 198,682 224,723 41.7 8,730 5,740 14,803 157,323 59,920

Common and preferred stocks 2,906,617 2,668,420 2,914,323 2,700,364 8.9 40,223 143,971 203,983 1,660,926 857,513

Real estate mortgages 2,035 1,957 1,989 1,936 4.0 336 201 235 807 455

Real estate 49,025 50,917 43,849 47,344 -3.7 1,061 7,507 6,736 12,997 20,724

Miscellaneous assets 116,135 118,135 117,239 101,488 -1.7 1,460 8,548 10,613 38,820 56,693

Employee benefit and retirement-related trust and 

agency accounts:

Employee benefit - defined contribution 396,787 342,054 361,774 403,358 16.0 1,172 7,362 11,732 338,388 38,133

Employee benefit - defined benefit 646,918 551,423 612,253 582,751 17.3 3,767 3,508 20,165 567,915 51,562

Other employee benefit and retirement-related 

 accounts 312,389 290,760 310,073 276,834 7.4 4,270 37,823 45,680 114,532 110,085

Corporate trust and agency accounts 19,811 19,444 20,957 22,832 1.9 0 376 4,606 10,949 3,880

Investment management and investment advisory 

agency accounts 1,616,213 1,433,152 1,560,369 1,299,675 12.8 33,909 79,976 114,319 784,436 603,574

Other fiduciary accounts 330,672 371,059 384,119 548,705 -10.9 2,375 11,748 20,399 101,832 194,318

Total managed fiduciary accounts: 

Assets 3,955,531 3,650,008 3,937,490 3,805,506 8.4 62,190 193,994 289,619 2,152,859 1,256,869

Number of accounts 1,760,895 1,694,192 1,635,972 1,557,905 3.9 111,176 303,418 323,984 464,779 557,538

Fiduciary and related assets - nonmanaged assets 

Personal trust and agency accounts 260,199 276,132 289,810 277,995 -5.8 5,137 22,783 24,861 129,798 77,621

Employee benefit and retirement-related trust and 

agency accounts: 

Employee benefit - defined contribution 2,112,262 2,037,017 2,208,911 3,122,507 3.7 99,027 25,050 64,254 1,383,148 540,783

Employee benefit - defined benefit 4,187,660 4,248,691 4,208,533 3,983,936 -1.4 14,473 23,601 13,822 3,253,922 881,843

Other employee benefit and retirement-related accounts 1,304,015 1,338,985 1,612,404 2,631,474 -2.6 11,184 23,269 15,677 1,064,125 189,760

Corporate trust and agency accounts 2,593,501 2,657,963 2,568,742 2,472,022 -2.4 4 19,412 358,505 314,805 1,900,775

Other fiduciary accounts 3,250,920 3,097,181 3,503,127 3,353,848 5.0 3,811 32,000 26,027 1,619,764 1,569,319

Total nonmanaged fiduciary accounts: 

Assets 13,708,558 13,655,968 14,391,526 15,841,782 0.4 133,636 146,115 503,145 7,765,561 5,160,101

Number of accounts 3,931,418 3,809,051 3,846,839 14,378,658 3.2 639,226 354,909 197,110 2,067,071 673,102

Custody and safekeeping accounts: 

Assets 85,357,482 81,196,148 83,499,072 80,166,742 5.1 185,479 1,000,681 773,234 28,037,541 55,360,547

Number of accounts 8,596,106 8,291,116 9,368,241 9,477,615 3.7 1,327,150 5,131,978 499,124 304,205 1,333,649

Fiduciary and related services income 

Personal trust and agency accounts 4,517 4,707 4,871 4,655 -4.0 132 239 521 1,644 1,980

Retirement-related trust and agency accounts: 

Employee benefit - defined contribution 1,229 1,199 1,190 1,281 2.5 18 47 179 551 434

Employee benefit - defined benefit 1,415 1,411 1,381 1,336 0.3 10 18 31 924 431

Other employee benefit and retirement-related accounts 1,655 1,528 1,498 1,350 8.3 45 346 283 526 455

Corporate trust and agency accounts 1,677 1,469 1,371 1,317 14.2 0 33 285 385 973

Investment management agency accounts 7,765 7,449 6,988 6,125 4.2 174 559 843 2,586 3,602

Other fiduciary accounts 764 699 827 816 9.3 3 23 7 352 380

Custody and safekeeping accounts 13,397 13,317 13,091 12,494 0.6 14 345 489 4,843 7,705

Other fiduciary and related services income 832 970 1,157 1,451 -14.2 5 91 97 229 411

Total gross fiduciary and related services income 33,394 32,883 32,515 30,992 1.6 405 1,786 2,748 12,084 16,372

Less: Expenses 30,651 31,276 30,827 29,519 -2.0 259 1,371 2,231 12,722 14,068

Less: Net losses from fiduciary and related services 199 367 220 245 -45.8 0 2 7 147 43

Plus: Intracompany income credits for fiduciary and 

 related services 5,757 4,946 5,406 5,507 16.4 0 15 260 3,293 2,190

Net fiduciary and related services income 8,136 6,051 6,730 6,565 34.5 143 342 737 2,463 4,451

Collective investment funds and common trust funds 

(market value) 

Domestic equity funds 636,516 558,173 615,207 373,714 14.0 6,937 810 13,794 480,665 134,309

International/global equity funds 186,627 188,974 193,625 186,382 -1.2 1,374 5,953 3,311 130,021 45,968

Stock/bond blend funds 142,755 137,835 143,065 125,635 3.6 1,188 887 2,142 94,395 44,143

Taxable bond funds 149,992 146,148 154,238 145,958 2.6 771 1,942 1,718 3,698 141,863

Municipal bond funds 3,291 3,924 4,373 4,263 -16.1 45 293 74 1,667 1,211

Short-term investments/money market funds 161,560 145,387 178,284 178,395 11.1 2,015 0 160 102,205 57,181

Specialty/other funds 56,067 52,694 47,543 77,419 6.4 288 292 6,165 5,000 44,322

Total collective investment funds 1,336,808 1,233,135 1,336,336 1,091,766 8.4 12,618 10,178 27,364 817,651 468,997
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

COMMUNITY BANK PERFORMANCE

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

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

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

designated during the previous quarter.

Community Bank Revenue and Loan Growth Outpace Industry

Quarterly Earnings Improve by 10.5 Percent From a Year Ago to $5.3 Billion

Full-Year 2016 Earnings Increase to $21.4 Billion, Led by Net Interest Income

Net Operating Revenue Rises on Higher Net Interest Income and Noninterest Income

Total Loan Balances Increase 8.3 Percent in 2016

Community Banks Report 

Earnings of $5.3 Billion in 

the Fourth Quarter

Earnings totaled $5.3 billion for the 5,461 FDIC-insured community banks in fourth quarter 

2016, an increase of $507.9 million (10.5 percent) from a year earlier. Improvement in earnings was led by higher net operating revenue (the sum of net interest income and total noninterest income), but was offset in part by higher loan-loss provisions and noninterest expense. 

The pretax return on assets (ROA) was 1.24 percent, down 14 basis points from the previous 

quarter, but up 5 basis points from fourth quarter 2015.

Full-Year 2016 Earnings of 

$21.4 Billion Up 10.1 Percent 

From Prior Year

Full-year 2016 earnings at community banks totaled $21.4 billion, an increase of $2 billion 

(10.1 percent) over full-year 2015 earnings. Higher net interest income (up $5.1 billion, or 

7.9 percent) and noninterest income (up $1.4 billion, or 7.6 percent) lifted full-year earnings, 

which was partly offset by higher loan-loss provisions (up $516.7 million, or 20.6 percent) 

and noninterest expense (up $3.4 billion, or 6 percent). Almost two out of every three 

community banks (65 percent) reported an improvement in earnings from 2015. Pretax ROA 

in 2016 was 1.31 percent, up 5 basis points from 1.26 percent in 2015. Annual pretax ROA 

was above 1 percent for the past five consecutive years.

Contributors to the Year-Over-Year Change in Income 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income NetInterest

Income

Loan Loss

Provisions NoninterestIncome NoninterestExpense RealizedGains on

Securities

Income

Taxes

Positive Factor Negative Factor

-0.5

0.0

0.5

1.0

1.5

$0.51 $1.26 $0.05 $0.37 $0.88 -$0.02 $0.16

+11% +7% +6% +8% +6% -32% +13%

Chart 1

Source: FDIC.

Net Interest Margin 

Percent

3.0 

3.5 

4.0 

Community Banks

All Insured Institutions 

3.59

3.16

2009 2010 2011 2012 2013 2014 2015 2016

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

18 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Change 4Q 2016 vs. 4Q 2015

Change 4Q 2016 vs. 3Q 2016

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

C&I

Loans

1-to-4 Family

Residential

RE

C&D

Loans

Agricultural

Production

Loans

CRE &

C&D

C&I

Loans

42.0

14.3 12.2

18.6

-0.2

10.9

5.0

12.3

3.6 0.9 3.1

-1.7

0.4 1.8

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Percent of Loan Portfolio Noncurrent

0

2

4

6

8

10

12

14

C&D Loans Nonfarm Nonresidential RE

1-to-4 Family RE

C&I Loans Home Equity 

Credit Cards

2008 2009 2010 2011 2012 2013 2014 2015 2016

Chart 4

Net Operating Revenue 

Increases More Than 

7 Percent From the 

Previous Year

Community banks reported net operating revenue of $23.2 billion for the fourth quarter, 

up $1.6 billion (7.6 percent) from the year-earlier quarter. Higher net interest income (up 

$1.3 billion, or 7.5 percent) and noninterest income (up $372 million, or 7.8 percent) drove 

the increase in net operating revenue. Growth in net interest income was led by interest 

income from non 1-to-4 family real estate loans (up $853.5 million, or 11.3 percent), while 

net gains on loan sales (up $343.6 million, or 38.2 percent) lifted the year-over-year increase 

in noninterest income.1

Net Interest Margin at 

Community Banks 

Remains Stable

The average net interest margin (NIM) at community banks was 3.59 percent in fourth 

quarter 2016, down 1 basis point from the same quarter in 2015, as asset yields remained 

flat and funding costs increased 1 basis point. NIM at noncommunity banks increased from 

3.04 percent in fourth quarter 2015 to 3.09 percent, with asset yields rising 8 basis points and 

funding costs increasing by 3 basis points.

Noninterest Expense Grows 

6 Percent From Fourth 

Quarter 2015

Noninterest expense of $15.6 billion rose by $877.1 million (6 percent) from the same quarter a year ago, with 60 percent of community banks reporting an increase. The 12-month 

increase was led by higher salary and employee benefits (up $662 million, or 8.1 percent). 

Full-time employees at community banks totaled 431,061 in fourth quarter 2016, up 12,632 

(3 percent) from a year earlier. The average asset per employee totaled $5.1 million during the 

quarter, up from $4.8 million in fourth quarter 2015. Noninterest expense as a percentage of 

net operating revenue declined from 68.7 percent in fourth quarter 2015 to 67.3 percent, the 

lowest fourth-quarter level since 2006.

Loan Balances Increase 

From the Previous Quarter

Total assets at community banks rose by $27.9 billion (1.3 percent) from the third quarter, 

with 80 percent of the growth coming from higher loan lease balances (up $22.4 billion, or 

1.5 percent). Almost two-thirds (63 percent) of community banks reported higher loan and 

lease balances from the previous quarter. The largest quarterly increase was among nonfarm 

nonresidential loans (up $12.3 billion, or 2.8 percent), commercial and industrial loans (up 

$3.6 billion, or 1.8 percent), multifamily residential loans (up $3.2 billion, or 3.2 percent), and 

construction and development loans (up $3.1 billion, or 3.1 percent).

1 Non 1-to-4 family real estate loan income includes construction and development, farmland, multifamily, and nonfarm 

nonresidential.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 19

Total Loan Balances at 

Community Banks Increase 

8.3 Percent in 2016

The 12-month growth rate in loan and lease balances at community banks was 8.3 percent, 

surpassing the 4.8 percent at noncommunity banks. The annual increase at community 

banks was attributed to nonfarm nonresidential loans (up $42 billion, or 10.4 percent), 

1-to-4 family residential mortgages (up $18.6 billion, or 5 percent), multifamily residential loans (up $14.7 billion, or 16.3 percent), and commercial and industrial loans (up 

$14.3 billion, or 7.5 percent). Unused loan commitments totaled $284.6 billion for the fourth 

quarter, an increase of $24.4 billion (9.4 percent) from fourth quarter 2015, with unused 

commercial real estate loan commitments—including construction and development—

growing $10.9 billion (15 percent).

Community Banks Increase 

Small Loans to Businesses 

at More Than Twice the Rate 

of Noncommunity Banks 

in 2016

Small loans to businesses totaled $298.3 billion in fourth quarter 2016, an increase of 

$579.3 million (0.2 percent) from the previous quarter.2 The quarterly increase was led 

by nonfarm nonresidential loans (up $912.5 million, or 0.6 percent) and commercial and 

industrial loans (up $743.3 million, or 0.8 percent), which was partly offset by a reduction in 

agricultural production loans (down $1.1 billion, or 3.6 percent). Over the past 12 months, 

community banks expanded small loans to businesses by $6.4 billion (2.2 percent), more 

than twice the rate of noncommunity banks ($3.1 billion, or 0.8 percent). The yearly increase 

at community banks was driven by nonfarm nonresidential loans (up $3.4 billion, or 

2.4 percent) and commercial and industrial loans (up $2.7 billion, or 3 percent). Community 

banks continued to hold 43 percent of all small loans to businesses.

Noncurrent Rate Declines 

Below 1 Percent

With more than half (56 percent) of community banks reducing their noncurrent loan and 

lease balances from the previous quarter, total balances fell by $393.6 million (2.6 percent). 

The noncurrent rate of 0.99 percent declined 4 basis points from the previous quarter. This 

is the first time since second quarter 2007 that the noncurrent rate was below 1 percent. The 

noncurrent rate declined for all major loan categories except for commercial and industrial 

loans (up 2 basis points) from the previous quarter. The largest decline was among construction and development loans (down 9 basis points) and nonfarm nonresidential loans (down 

7 basis points).

Net Charge-Off Rate 

Declines Modestly From 

Fourth Quarter 2015

The net charge-off rate for community banks declined 1 basis point from the year before to 

0.21 percent, while noncommunity banks had an increase of 4 basis points to 0.59 percent. 

The net charge-off rate for all major loan categories among community banks was lower 

from a year earlier except for commercial and industrial which increased 9 basis points 

to 0.55 percent. The largest annual improvement in the net charge-off rate was with 

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

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6578

2 Small loans to businesses consist of loans to commercial borrowers up to $1 million and farm loans up to $500,000.
2 0 1 7  •Volume 1 1  • Number 1

20 FDIC QUARTERLY

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

2016 2015 2014 2013 2012 2011 2010

Return on assets (%) 1.01 0.99 0.93 0.90 0.83 0.55 0.21

Return on equity (%) 9.06 8.85 8.45 8.27 7.68 5.19 2.07

Core capital (leverage) ratio (%) 10.71 10.67 10.57 10.43 10.18 9.98 9.57

Noncurrent assets plus other real estate owned to assets (%) 0.92 1.07 1.34 1.73 2.27 2.84 3.25

Net charge-offs to loans (%) 0.15 0.15 0.21 0.32 0.58 0.87 1.11

Asset growth rate (%) 3.00 2.71 2.21 0.39 2.25 1.64 -2.24

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

Net operating income growth (%) 5.50 9.54 4.81 14.64 56.17 207.86 211.59

Number of institutions reporting 5,461 5,735 6,037 6,307 6,542 6,799 7,014

Percentage of unprofitable institutions (%) 4.34 5.00 6.44 8.40 11.14 16.34 22.16

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

(dollar figures in millions)  4th Quarter

2016

3rd Quarter

2016

4th Quarter

2015

%Change 

15Q4-16Q4

Number of institutions reporting 5,461 5,522 5,735 -4.8

Total employees (full-time equivalent) 431,061 431,151 437,842 -1.5

CONDITION DATA

Total assets $2,183,605 $2,163,553 $2,119,973 3.0

Loans secured by real estate 1,160,722 1,143,151 1,094,369 6.1

 1-4 Family residential mortgages 389,858 389,636 376,160 3.6

 Nonfarm nonresidential 445,387 434,583 418,618 6.4

 Construction and development 101,939 98,985 93,745 8.7

 Home equity lines 50,721 50,538 50,629 0.2

Commercial & industrial loans 203,379 200,390 196,227 3.6

Loans to individuals 60,901 60,314 59,988 1.5

 Credit cards 2,215 2,141 2,173 1.9

Farm loans 50,721 52,468 51,331 -1.2

Other loans & leases 39,697 40,554 36,716 8.1

Less: Unearned income 660 642 638 3.4

Total loans & leases 1,514,761 1,496,235 1,437,993 5.3

Less: Reserve for losses 18,475 18,446 18,542 -0.4

Net loans and leases 1,496,285 1,477,789 1,419,450 5.4

Securities 422,959 419,992 438,358 -3.5

Other real estate owned 5,055 5,466 6,584 -23.2

Goodwill and other intangibles 14,400 14,284 13,826 4.2

All other assets 244,905 246,021 241,755 1.3

Total liabilities and capital 2,183,605 2,163,553 2,119,973 3.0

Deposits 1,793,682 1,771,676 1,736,385 3.3

 Domestic office deposits 1,793,205 1,771,265 1,735,985 3.3

 Foreign office deposits 478 411 400 19.4

 Brokered deposits 81,194 78,407 71,329 13.8

Estimated insured deposits 1,329,596 1,323,721 1,313,889 1.2

Other borrowed funds 131,764 128,641 131,741 0.0

Subordinated debt 806 802 479 68.5

All other liabilities 16,090 17,661 15,664 2.7

Total equity capital (includes minority interests) 241,262 244,773 235,704 2.4

 Bank equity capital 241,165 244,661 235,595 2.4

Loans and leases 30-89 days past due 8,711 7,802 8,972 -2.9

Noncurrent loans and leases 15,013 15,444 15,906 -5.6

Restructured loans and leases 8,298 8,663 9,424 -12.0

Mortgage-backed securities 181,024 179,986 185,291 -2.3

Earning assets 2,030,032 2,012,451 1,968,326 3.1

FHLB Advances 103,989 100,678 100,888 3.1

Unused loan commitments 284,645 281,271 271,069 5.0

Trust assets 294,313 253,776 292,961 0.5

Assets securitized and sold 14,704 14,435 15,812 -7.0

Notional amount of derivatives 59,690 74,283 51,861 15.1

INCOME DATA

Full Year

 2016

Full Year

2015 %Change

4th Quarter 

2016

4th Quarter 

2015

%Change 

15Q4-16Q4

Total interest income $79,194 $76,401 3.7 $20,424 $19,745 3.4

Total interest expense 9,133 8,652 5.6 2,369 2,216 6.9

Net interest income 70,061 67,750 3.4 18,056 17,528 3.0

Provision for loan and lease losses 3,026 2,558 18.3 930 894 4.1

Total noninterest income 19,958 19,528 2.2 5,155 5,022 2.7

Total noninterest expense 59,934 59,373 0.9 15,612 15,498 0.7

Securities gains (losses) 640 520 23.0 52 77 -32.8

Applicable income taxes 6,279 5,633 11.5 1,363 1,224 11.4

Extraordinary gains, net* -9 6 N/M -9 4 N/M

Total net income (includes minority interests) 21,411 20,239 5.8 5,347 5,016 6.6

 Bank net income 21,388 20,213 5.8 5,342 5,011 6.6

Net charge-offs 2,213 2,055 7.7 802 779 2.9

Cash dividends 10,209 10,093 1.2 3,055 3,271 -6.6

Retained earnings 11,179 10,120 10.5 2,287 1,741 31.4

Net operating income 20,913 19,822 5.5 5,316 4,946 7.5

* See Notes to Users (page 31) for explanation. N/M - Not Meaningful
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  4th Quarter 

2016

3rd Quarter 

2016

4th Quarter

2015

%Change 

15Q4-16Q4

Number of institutions reporting 5,461 5,461 5,461 0.0

Total employees (full-time equivalent) 431,061 428,269 418,429 3.0

CONDITION DATA

Total assets $2,183,605 $2,155,674 $2,061,965 5.9

Loans secured by real estate 1,160,722 1,139,999 1,065,971 8.9

 1-4 Family residential mortgages 389,858 388,999 371,306 5.0

 Nonfarm nonresidential 445,387 433,056 403,423 10.4

 Construction and development 101,939 98,849 89,768 13.6

 Home equity lines 50,721 50,241 48,333 4.9

Commercial & industrial loans 203,379 199,769 189,119 7.5

Loans to individuals 60,901 60,156 57,757 5.4

 Credit cards 2,215 2,135 2,146 3.2

Farm loans 50,721 52,446 50,962 -0.5

Other loans & leases 39,697 40,586 35,941 10.5

Less: Unearned income 660 643 651 1.3

Total loans & leases 1,514,761 1,492,314 1,399,100 8.3

Less: Reserve for losses 18,475 18,412 18,034 2.4

Net loans and leases 1,496,285 1,473,902 1,381,065 8.3

Securities 422,959 417,731 426,455 -0.8

Other real estate owned 5,055 5,443 6,380 -20.8

Goodwill and other intangibles 14,400 14,106 13,118 9.8

All other assets 244,905 244,493 234,947 4.2

Total liabilities and capital 2,183,605 2,155,674 2,061,965 5.9

Deposits 1,793,682 1,765,272 1,688,399 6.2

 Domestic office deposits 1,793,205 1,764,861 1,688,004 6.2

 Foreign office deposits 478 411 395 20.8

 Brokered deposits 81,194 78,306 69,994 16.0

Estimated insured deposits 1,329,596 1,319,482 1,277,188 4.1

Other borrowed funds 131,764 128,229 128,829 2.3

Subordinated debt 806 802 429 88.2

All other liabilities 16,090 17,533 15,169 6.1

Total equity capital (includes minority interests) 241,262 243,838 229,139 5.3

 Bank equity capital 241,165 243,726 229,030 5.3

Loans and leases 30-89 days past due 8,711 7,799 8,787 -0.9

Noncurrent loans and leases 15,013 15,406 15,514 -3.2

Restructured loans and leases 8,298 8,639 9,140 -9.2

Mortgage-backed securities 181,024 178,652 178,941 1.2

Earning assets 2,030,032 2,005,227 1,915,496 6.0

FHLB Advances 103,989 100,346 98,856 5.2

Unused loan commitments 284,645 280,019 260,206 9.4

Trust assets 294,313 252,060 275,175 7.0

Assets securitized and sold 14,704 14,435 13,196 11.4

Notional amount of derivatives 59,690 73,463 49,006 21.8

INCOME DATA

Full Year 

2016

Full Year 

2015 %Change

4th Quarter 

2016

4th Quarter 

2015

%Change 

15Q4-16Q4

Total interest income $79,194 $73,306 8.0 $20,424 $18,934 7.9

Total interest expense 9,133 8,348 9.4 2,369 2,137 10.8

Net interest income 70,061 64,958 7.9 18,056 16,797 7.5

Provision for loan and lease losses 3,026 2,509 20.6 930 880 5.8

Total noninterest income 19,958 18,551 7.6 5,155 4,783 7.8

Total noninterest expense 59,934 56,523 6.0 15,612 14,735 6.0

Securities gains (losses) 640 506 26.5 52 76 -31.7

Applicable income taxes 6,279 5,541 13.3 1,363 1,206 13.0

Extraordinary gains, net* -9 5 N/M -9 4 N/M

Total net income (includes minority interests) 21,411 19,447 10.1 5,347 4,839 10.5

 Bank net income 21,388 19,420 10.1 5,342 4,834 10.5

Net charge-offs 2,213 1,959 12.9 802 746 7.4

Cash dividends 10,209 9,766 4.5 3,055 3,140 -2.7

Retained earnings 11,179 9,655 15.8 2,287 1,695 34.9

Net operating income 20,913 19,042 9.8 5,316 4,769 11.5

* See Notes to Users (page 31) for explanation. N/M - Not Meaningful
2 0 1 7  •Volume 1 1  • Number 1

22 FDIC QUARTERLY

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

Fourth Quarter 2016

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 5,461 632 660 1,200 1,427 1,191 351

Total employees (full-time equivalent) 431,061 85,734 52,996 90,964 70,598 94,175 36,594

CONDITION DATA

Total assets $2,183,605 $579,560 $247,345 $396,142 $336,870 $420,337 $203,350

Loans secured by real estate 1,160,722 353,649 138,468 203,057 157,472 201,247 106,828

 1-4 Family residential mortgages 389,858 131,324 44,625 71,754 49,737 64,607 27,811

 Nonfarm nonresidential 445,387 125,502 59,874 74,347 51,942 82,719 51,003

 Construction and development 101,939 20,802 15,794 13,919 13,465 28,997 8,961

 Home equity lines 50,721 16,967 7,808 11,449 4,872 4,689 4,935

Commercial & industrial loans 203,379 50,934 19,194 37,913 33,118 42,739 19,482

Loans to individuals 60,901 13,377 6,368 12,147 10,141 13,727 5,142

 Credit cards 2,215 446 133 442 566 307 321

Farm loans 50,721 554 1,193 8,522 28,148 9,462 2,841

Other loans & leases 39,697 12,582 3,202 6,810 5,754 7,909 3,440

Less: Unearned income 660 167 117 60 57 128 130

Total loans & leases 1,514,761 430,930 168,309 268,389 234,576 274,956 137,602

Less: Reserve for losses 18,475 4,427 2,044 3,343 3,162 3,662 1,838

Net loans and leases 1,496,285 426,503 166,265 265,046 231,414 271,294 135,764

Securities 422,959 96,207 46,460 82,181 65,989 93,273 38,849

Other real estate owned 5,055 775 1,276 913 770 1,015 305

Goodwill and other intangibles 14,400 4,734 1,270 2,492 1,854 2,716 1,334

All other assets 244,905 51,341 32,074 45,510 36,843 52,039 27,097

Total liabilities and capital 2,183,605 579,560 247,345 396,142 336,870 420,337 203,350

Deposits 1,793,682 460,124 204,766 327,431 278,104 352,891 170,366

 Domestic office deposits 1,793,205 459,713 204,750 327,408 278,104 352,891 170,338

 Foreign office deposits 478 411 16 23 0 0 28

 Brokered deposits 81,194 26,889 7,294 13,942 12,439 11,669 8,962

 Estimated insured deposits 1,329,596 329,505 152,785 259,839 217,243 253,711 116,513

Other borrowed funds 131,764 48,296 13,598 22,129 19,914 19,261 8,567

Subordinated debt 806 687 20 47 22 16 15

All other liabilities 16,090 5,634 1,749 2,829 1,846 2,394 1,637

Total equity capital (includes minority interests) 241,262 64,820 27,212 43,706 36,984 45,775 22,765

 Bank equity capital 241,165 64,786 27,200 43,677 36,983 45,756 22,764

Loans and leases 30-89 days past due 8,711 2,223 1,151 1,478 1,228 2,152 479

Noncurrent loans and leases 15,013 5,036 1,646 2,620 1,779 3,136 796

Restructured loans and leases 8,298 2,337 1,146 2,046 1,036 1,118 615

Mortgage-backed securities 181,024 53,461 20,340 31,764 21,396 34,833 19,230

Earning assets 2,030,032 542,768 228,176 367,226 313,216 388,455 190,192

FHLB Advances 103,989 41,172 11,030 16,281 14,443 15,469 5,594

Unused loan commitments 284,645 72,850 30,620 53,061 47,062 51,462 29,589

Trust assets 294,313 53,174 12,768 78,097 87,821 50,810 11,643

Assets securitized and sold 14,704 3,690 67 5,955 936 639 3,417

Notional amount of derivatives 59,690 23,533 6,858 10,539 7,250 6,963 4,548

INCOME DATA

Total interest income $20,424 $5,185 $2,358 $3,605 $3,206 $4,109 $1,962

Total interest expense 2,369 759 262 405 379 398 165

Net interest income 18,056 4,426 2,096 3,199 2,826 3,711 1,797

Provision for loan and lease losses 930 220 86 100 170 315 40

Total noninterest income 5,155 954 528 1,303 812 964 594

Total noninterest expense 15,612 3,673 1,888 3,040 2,394 3,157 1,461

Securities gains (losses) 52 34 12 -7 6 9 -2

Applicable income taxes 1,363 413 154 228 187 154 228

Extraordinary gains, net -9 -9 0 0 0 0 0

Total net income (includes minority interests) 5,347 1,099 509 1,127 893 1,059 660

 Bank net income 5,342 1,097 508 1,125 893 1,059 660

Net charge-offs 802 196 81 136 157 194 38

Cash dividends 3,055 364 324 735 555 759 318

Retained earnings 2,287 733 185 390 338 299 342

Net operating income 5,316 1,081 500 1,135 888 1,050 662

* See Table V-A (page 13) for explanations.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 23

Table IV-B. Fourth Quarter 2016, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Fourth Quarter 2016, Geographic Regions*

 4th Quarter 

2016

3rd Quarter 

2016 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.06 4.05 3.86 4.18 3.95 4.12 4.25 4.16

Cost of funding earning assets 0.47 0.47 0.57 0.46 0.44 0.49 0.41 0.35

Net interest margin 3.59 3.58 3.30 3.71 3.50 3.63 3.84 3.81

Noninterest income to assets 0.95 0.99 0.67 0.86 1.32 0.97 0.92 1.18

Noninterest expense to assets 2.88 2.85 2.56 3.08 3.09 2.87 3.02 2.89

Loan and lease loss provision to assets 0.17 0.14 0.15 0.14 0.10 0.20 0.30 0.08

Net operating income to assets 0.98 1.03 0.75 0.82 1.15 1.06 1.01 1.31

Pretax return on assets 1.24 1.38 1.05 1.08 1.37 1.29 1.16 1.76

Return on assets 0.99 1.05 0.77 0.83 1.14 1.07 1.01 1.31

Return on equity 8.83 9.32 6.81 7.44 10.22 9.58 9.16 11.59

Net charge-offs to loans and leases 0.21 0.16 0.18 0.19 0.20 0.27 0.28 0.11

Loan and lease loss provision to net charge-offs 116.06 122.52 111.85 105.79 73.52 108.02 162.75 107.16

Efficiency ratio 66.24 65.38 65.20 71.56 67.20 65.41 66.95 60.79

Net interest income to operating revenue 77.79 77.04 82.27 79.87 71.06 77.69 79.38 75.16

% of unprofitable institutions 8.46 4.80 8.07 11.97 8.58 8.20 7.98 4.84

% of institutions with earnings gains 57.92 60.12 65.19 63.03 57.25 53.96 55.42 62.11

Table V-B. Full Year 2016, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks Full Year 2016, Geographic Regions*

Full Year 

2016

Full Year 

2015 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.04 4.03 3.85 4.16 3.92 4.10 4.24 4.13

Cost of funding earning assets 0.47 0.46 0.57 0.46 0.44 0.48 0.40 0.34

Net interest margin 3.57 3.57 3.28 3.70 3.49 3.62 3.84 3.79

Noninterest income to assets 0.95 0.95 0.67 0.92 1.30 0.93 0.94 1.11

Noninterest expense to assets 2.84 2.90 2.51 3.08 3.05 2.79 2.98 2.89

Loan and lease loss provision to assets 0.14 0.13 0.16 0.12 0.10 0.15 0.21 0.08

Net operating income to assets 0.99 0.97 0.75 0.85 1.08 1.13 1.11 1.19

Pretax return on assets 1.31 1.26 1.11 1.17 1.40 1.40 1.33 1.71

Return on assets 1.01 0.99 0.77 0.88 1.10 1.16 1.13 1.21

Return on equity 9.06 8.85 6.89 7.85 9.77 10.37 10.25 10.67

Net charge-offs to loans and leases 0.15 0.15 0.17 0.14 0.14 0.14 0.20 0.06

Loan and lease loss provision to net charge-offs 136.76 124.53 122.49 122.25 105.30 156.84 160.34 215.35

Efficiency ratio 66.06 67.64 66.01 70.69 66.93 64.40 66.11 61.73

Net interest income to operating revenue 77.83 77.63 82.02 78.66 71.35 78.43 79.12 76.17

% of unprofitable institutions 4.34 5.00 5.85 7.27 5.42 2.10 3.61 3.99

% of institutions with earnings gains 64.77 62.98 69.78 67.27 64.17 61.67 64.06 68.09

* See Table V-A (page 13) for explanations.
2 0 1 7  •Volume 1 1  • Number 1

24 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

December 31, 2016

Geographic Regions*

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

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.54 0.47 0.66 0.57 0.52 0.70 0.28

Construction and development 0.39 0.23 0.42 0.34 0.39 0.49 0.45

Nonfarm nonresidential 0.33 0.30 0.34 0.34 0.40 0.44 0.16

Multifamily residential real estate 0.16 0.13 0.28 0.19 0.22 0.31 0.01

Home equity loans 0.44 0.45 0.46 0.43 0.33 0.48 0.48

Other 1-4 family residential 0.92 0.81 1.22 1.00 0.77 1.19 0.49

Commercial and industrial loans 0.52 0.47 0.60 0.40 0.50 0.72 0.43

Loans to individuals 1.72 2.16 1.84 1.04 1.12 2.54 1.04

Credit card loans 2.10 2.23 1.26 1.19 4.04 1.14 0.99

Other loans to individuals 1.71 2.16 1.86 1.04 0.94 2.57 1.04

All other loans and leases (including farm) 0.39 0.26 0.22 0.31 0.39 0.50 0.60

Total loans and leases 0.57 0.52 0.68 0.55 0.52 0.78 0.35

Percent of Loans Noncurrent**

All loans secured by real estate 0.96 1.13 1.02 1.06 0.76 0.92 0.54

Construction and development 1.08 1.08 1.66 0.90 1.16 0.87 0.87

Nonfarm nonresidential 0.83 0.98 0.79 1.00 0.84 0.77 0.38

Multifamily residential real estate 0.27 0.16 0.65 0.50 0.32 0.46 0.11

Home equity loans 0.62 0.79 0.50 0.68 0.27 0.62 0.49

Other 1-4 family residential 1.30 1.68 1.19 1.34 0.69 1.20 0.85

Commercial and industrial loans 1.33 1.49 0.83 0.90 0.97 2.25 0.87

Loans to individuals 0.78 0.63 0.87 0.39 0.49 1.62 0.33

Credit card loans 1.12 1.31 0.39 0.93 1.74 0.63 0.77

Other loans to individuals 0.77 0.61 0.88 0.37 0.41 1.64 0.31

All other loans and leases (including farm) 0.72 1.58 0.40 0.48 0.62 0.63 0.50

Total loans and leases 0.99 1.17 0.98 0.98 0.76 1.14 0.58

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.06 0.07 0.08 0.08 0.04 0.05 -0.01

Construction and development 0.02 0.04 0.17 -0.02 -0.02 -0.01 -0.05

Nonfarm nonresidential 0.06 0.08 0.06 0.09 0.06 0.07 0.00

Multifamily residential real estate 0.02 0.01 0.10 0.02 0.11 0.01 -0.01

Home equity loans 0.06 0.07 0.07 0.09 0.01 0.05 0.01

Other 1-4 family residential 0.07 0.08 0.09 0.11 0.05 0.06 0.00

Commercial and industrial loans 0.39 0.58 0.26 0.27 0.26 0.53 0.15

Loans to individuals 0.90 0.94 0.92 0.63 1.06 1.05 0.69

Credit card loans 5.41 4.23 1.31 3.60 13.29 1.49 2.12

Other loans to individuals 0.73 0.82 0.91 0.52 0.40 1.04 0.59

All other loans and leases (including farm) 0.32 0.63 0.30 0.21 0.17 0.48 0.31

Total loans and leases 0.15 0.17 0.14 0.14 0.14 0.20 0.06

Loans Outstanding (in billions)

All loans secured by real estate $1,160.7 $353.6 $138.5 $203.1 $157.5 $201.2 $106.8

Construction and development 101.9 20.8 15.8 13.9 13.5 29.0 9.0

Nonfarm nonresidential 445.4 125.5 59.9 74.3 51.9 82.7 51.0

Multifamily residential real estate 105.4 56.9 6.2 15.5 8.4 7.6 10.8

Home equity loans 50.7 17.0 7.8 11.4 4.9 4.7 4.9

Other 1-4 family residential 389.9 131.3 44.6 71.8 49.7 64.6 27.8

Commercial and industrial loans 203.4 50.9 19.2 37.9 33.1 42.7 19.5

Loans to individuals 60.9 13.4 6.4 12.1 10.1 13.7 5.1

Credit card loans 2.2 0.4 0.1 0.4 0.6 0.3 0.3

Other loans to individuals 58.7 12.9 6.2 11.7 9.6 13.4 4.8

All other loans and leases (including farm) 90.4 13.1 4.4 15.3 33.9 17.4 6.3

Total loans and leases 1,515.4 431.1 168.4 268.4 234.6 275.1 137.7

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 284,645 72,850 30,620 53,061 47,062 51,462 29,589

Construction and development: 1-4 family residential 23,795 4,638 4,342 2,604 2,908 6,709 2,593

Construction and development: CRE and other 58,300 17,638 7,110 8,986 6,890 12,954 4,722

Commercial and industrial 92,007 22,948 8,622 18,894 15,038 16,487 10,019

* See Table V-A (page 13) for explanations.

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

FDIC QUARTERLY 25

Insurance Fund Indicators

Deposit Insurance Fund Increases by $2.5 Billion

Insured Deposits Grow by 1.4 Percent

DIF Reserve Ratio Rises 2 Basis Points to 1.20 Percent

The Deposit Insurance Fund (DIF) balance increased by $2.5 billion, to $83.2 billion, during 

the fourth quarter. Assessment income of $2.7 billion, which includes temporary assessment 

surcharges on large banks, drove the fund balance increase. A negative provision for insurance losses of $332 million, and interest on investments and other miscellaneous income of 

$192 million, also added to the fund balance. Operating expenses of $437 million and unrealized losses on available-for-sale securities of $317 million partially offset the increase in the 

fund balance. No insured institutions failed in the fourth quarter; for all of 2016, there were 

five failures of insured institutions, with combined assets of $277 million.

The deposit insurance assessment base—average consolidated total assets minus average 

tangible equity—rose 1.2 percent in the fourth quarter and 5.0 percent for all of 2016.12 Total 

estimated insured deposits increased by 1.4 percent in the fourth quarter of 2016 and by 

6.0 percent for all of 2016. The DIF’s reserve ratio (the fund balance as a percent of estimated 

insured deposits) increased to 1.20 percent at year-end 2016 from 1.18 percent at September 

30 and 1.11 percent at year-end 2015.

By law, the reserve ratio must reach a minimum of 1.35 percent by September 30, 2020. The 

law also requires that, in setting assessments, the FDIC offset the effect of the increase in the 

reserve ratio from 1.15 to 1.35 percent on banks with less than $10 billion in assets. To satisfy 

these requirements, large banks are subject to a temporary surcharge of 4.5 basis points of 

their assessment base, after making certain adjustments.34 Surcharges began in the third 

quarter of 2016 and will continue through the quarter in which the reserve ratio first meets 

or exceeds 1.35 percent. If, however, the reserve ratio has not reached 1.35 percent by the end 

of 2018, large banks will pay a shortfall assessment in early 2019 to close the gap.

Small banks will receive credits to offset the portion of their assessments that help to raise 

the reserve ratio from 1.15 percent to 1.35 percent. When the reserve ratio is at or above 

1.38 percent, the FDIC will automatically apply a small bank’s credits to reduce its regular 

assessment up to the entire amount of the assessment.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

1 There are additional adjustments to the assessment base for banker’s banks and custodial banks.

2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

3 Large banks are generally banks with assets of $10 billion or more.

4 The assessment base for the surcharge is a large bank’s regular assessment base reduced by $10 billion (and subject to additional 

adjustment for affiliated banks).
2 0 1 7  •Volume 1 1  • Number 1

26 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.01 1.03

1.07 1.09 1.11 1.13

1.18

0.79 0.80 0.84

0.89

1.17 1.20

12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd 

Quarter 

2016

1st 

Quarter 

2016

4th 

Quarter 

2015

3rd 

Quarter 

2015

2nd 

Quarter 

2015

1st 

Quarter 

2015

4th 

Quarter 

2014

3rd 

Quarter 

2014

2nd 

Quarter 

2014

1st 

Quarter 

2014

4th 

Quarter 

2013

Beginning Fund Balance $80,704 $77,910 $75,120 $72,600 $70,115 $67,589 $65,296 $62,780 $54,320 $51,059 $48,893 $47,191 $40,758

Changes in Fund Balance:

Assessments earned 2,688 2,643 2,328 2,328 2,160 2,170 2,328 2,189 2,030 2,009 2,224 2,393 2,224

Interest earned on 

investment securities 189 171 164 147 128 122 113 60 70 80 87 45 23

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 302

Operating expenses 437 422 441 415 447 410 434 396 408 406 428 422 436

Provision for insurance 

losses -332 -566 -627 -43 -930 -578 -317 -426 -6,787 -1,663 -204 348 -4,588

All other income, 

net of expenses 3 3 2 5 12 2 3 6 -43 6 6 9 9

Unrealized gain/(loss) on 

available-for-sale 

securities -317 -167 110 412 -298 64 -34 231 24 -91 73 25 -277

Total fund balance change 2,458 2,794 2,790 2,520 2,485 2,526 2,293 2,516 8,460 3,261 2,166 1,702 6,433

Ending Fund Balance 83,162 80,704 77,910 75,120 72,600 70,115 67,589 65,296 62,780 54,320 51,059 48,893 47,191

Percent change from 

 four quarters earlier 14.55 15.10 15.27 15.05 15.64 29.08 32.37 33.55 33.03 33.27 34.82 36.79 43.19

Reserve Ratio (%) 1.20 1.18 1.17 1.13 1.11 1.09 1.07 1.03 1.01 0.89 0.84 0.80 0.79

Estimated Insured 

Deposits 6,917,151 6,820,924 6,677,263 6,665,204 6,523,494 6,409,819 6,336,949 6,336,642 6,197,131 6,127,968 6,098,178 6,109,175 5,998,296

Percent change from 

 four quarters earlier 6.03 6.41 5.37 5.19 5.27 4.60 3.92 3.72 3.31 2.82 2.56 1.91 -18.96

Domestic Deposits 11,691,733 11,505,078 11,240,160 11,154,724 10,950,122 10,695,506 10,629,335 10,616,458 10,408,187 10,213,199 10,099,415 9,962,543 9,825,479

Percent change from 

 four quarters earlier 6.77 7.57 5.75 5.07 5.21 4.72 5.25 6.56 5.93 6.04 7.16 5.37 3.70

Assessment Base** 14,558,747 14,379,162 14,228,917 14,027,539 13,859,798 13,688,038 13,620,612 13,545,911 13,360,258 13,127,639 12,916,174 12,810,075 12,757,792

Percent change from 

 four quarters earlier 5.04 5.05 4.47 3.56 3.74 4.27 5.45 5.74 4.72 4.72 3.31 2.97 2.54

Number of Institutions 

Reporting 5,922 5,989 6,067 6,131 6,191 6,279 6,357 6,428 6,518 6,598 6,665 6,739 6,821

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

12/13 $47,191 $5,998,296

3/14 48,893 6,109,175

6/14 51,059 6,098,178

9/14 54,320 6,127,968

12/14 62,780 6,197,131

3/15 65,296 6,336,642

6/15 67,589 6,336,949

9/15 70,115 6,409,819

12/15 72,600 6,523,494

3/16 75,120 6,665,204

6/16 77,910 6,677,263

9/16 80,704 6,820,924

12/16 83,162 6,917,151

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2016 2015 2014 2013 2012 2011

Problem Institutions

Number of institutions 123 183 291 467 651 813

Total assets $27,624 $46,780 $86,712 $152,687 $232,701 $319,432

Failed Institutions

Number of institutions 5 8 18 24 51 92

Total assets*** $277 $6,706 $2,914 $6,044 $11,617 $34,923

* Quarterly financial statement results are unaudited.

** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

*** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions)

December 31, 2016

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 5,113 $15,629,024 $10,735,730 $6,154,337

 FDIC-Supervised 3,397 2,424,145 1,920,692 1,337,703

 OCC-Supervised 923 10,653,267 7,046,604 3,861,476

 Federal Reserve-Supervised 793 2,551,612 1,768,434 955,157

FDIC-Insured Savings Institutions 800 1,151,200 911,552 728,245

 OCC-Supervised 374 742,282 602,799 487,157

 FDIC-Supervised 390 384,030 289,102 225,478

 Federal Reserve-Supervised 36 24,888 19,651 15,610

Total Commercial Banks and Savings Institutions 5,913 16,780,224 11,647,282 6,882,582

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 94,314 44,452 34,569

Total FDIC-Insured Institutions 5,922 16,874,538 11,691,733 6,917,151

* Excludes $1.2 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending September 30, 2016 (dollar figures in billions)

Annual Rate in Basis Points*

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base**

Percent of Total 

Assessment Base

1.50 - 3.00 3,472 57.97 $2,407.5 16.74

3.01 - 6.00 1,640 27.38 10,816.8 75.23

6.01 - 10.00 647 10.80 881.9 6.13

10.01 - 15.00 83 1.39 214.6 1.49

15.01 - 20.00 119 1.99 49.7 0.35

20.01 - 25.00 18 0.30 2.9 0.02

>25.00 10 0.17 5.9 0.04

* Assessment rates do not incorporate temporary surcharges on large banks.

** Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as required by the Dodd-Frank Act.

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
2 0 1 7  •Volume 1 1  • Number 1

30 FDIC QUARTERLY

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed/assisted institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository institutions that are not insured by the FDIC through the DIF are not included in the FDIC Quarterly Banking Profile. U.S. branches of institutions 

headquartered in foreign countries and non-deposit trust companies 

are not included unless otherwise indicated. Efforts are made to obtain 

financial reports for all active institutions. However, in some cases, 

final financial reports are not available for institutions that have closed 

or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports submitted by 

all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

i.e., the sum of the individual numerator values divided by the sum 

of individual denominator values. All asset and liability figures used 

in calculating performance ratios represent average amounts for the 

period (beginning-of-period amount plus end-of-period amount plus 

any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income includes 

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

base period to totals for institutions in the current period. For the 

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup. When community 

bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions 

that were subsequently merged into current community banks.

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home state. 

In addition, institutions may relocate across state lines or change 

their charters, resulting in an inter-regional or inter-industry migration, e.g., institutions can move their home offices between regions, 

savings institutions can convert to commercial banks, or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Accounting for Measurement-Period Adjustments Related to a 

Business Combination 

In September 2015, the Financial Accounting Standards Board 

(FASB) issued Accounting Standards Update (ASU) No. 2015-16, 

“Simplifying the Accounting for Measurement-Period Adjustments.” 

Under Accounting Standards Codification Topic 805, Business 

Combinations (formerly FASB Statement No. 141(R), “Business 

Combinations”), if the initial accounting for a business combination 

is incomplete by the end of the reporting period in which the combination occurs, the acquirer reports provisional amounts in its financial statements for the items for which the accounting is incomplete. 

During the measurement period, the acquirer is required to adjust the 

provisional amounts recognized at the acquisition date, with a corresponding adjustment to goodwill, to reflect new information obtained 

about facts and circumstances that existed as of the acquisition date 

that, if known, would have affected the measurement of the amounts 

recognized as of that date. At present under Topic 805, an acquirer is 

required to retrospectively adjust the provisional amounts recognized 

at the acquisition date to reflect the new information. To simplify the 

accounting for the adjustments made to provisional amounts, ASU 

2015-16 eliminates the requirement to retrospectively account for the 

adjustments. Accordingly, the ASU amends Topic 805 to require an 

acquirer to recognize adjustments to provisional amounts that are 

identified during the measurement period in the reporting period 

in which adjustment amounts are determined. Under the ASU, the 

acquirer also must recognize in the financial statements for the same 

reporting period the effect on earnings, if any, resulting from the 

adjustments to the provisional amounts as if the accounting for the 

business combination had been completed as of the acquisition date. 

In general, the measurement period in a business combination is 

the period after the acquisition date during which the acquirer may 

adjust provisional amounts reported for identifiable assets acquired, 

liabilities assumed, and consideration transferred for the acquiree for 

which the initial accounting for the business combination is incomplete at the end of the reporting period in which the combination 

occurs. Topic 805 provides additional guidance on the measurement 

period, which shall not exceed one year from the acquisition date, 

and adjustments to provisional amounts during this period. 

For institutions that are public business entities, as defined under U.S. 

GAAP, ASU 2015-16 is effective for fiscal years, and interim periods 

within those fiscal years, beginning after December 15, 2015. For 

institutions that are not public business entities (i.e., that are private 

companies), the ASU is effective for fiscal years beginning after 

December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The ASU’s amendments to Topic 805 

should be applied prospectively to adjustments to provisional 

amounts that occur after the effective date of the ASU. Thus, institutions with a calendar year fiscal year that are public business entities 

must apply the ASU to any adjustments to provisional amounts that 

occur after January 1, 2016, beginning with their Call Reports for 

March 31, 2016. Institutions with a calendar year fiscal year that are 

private companies must apply the ASU to any adjustments to provisional amounts that occur after January 1, 2017, beginning with their 

Call Reports for December 31, 2017. Early application of ASU 2015-

16 is permitted in Call Reports that have not been submitted. 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 31

For additional information, institutions should refer to ASU 

2015-16, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Debt Issuance Costs 

In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the 

Presentation of Debt Issuance Costs.” This ASU requires debt issuance costs associated with a recognized debt liability to be presented 

as a direct deduction from the face amount of the related debt liability, similar to debt discounts. The ASU is limited to the presentation 

of debt issuance costs; therefore, the recognition and measurement guidance for such costs is unaffected. At present, Accounting 

Standards Codification (ASC) Subtopic 835-30, Interest—Imputation 

of Interest, requires debt issuance costs to be reported on the balance 

sheet as an asset (i.e., a deferred charge). For Call Report purposes, 

the costs of issuing debt currently are reported, net of accumulated 

amortization, in “Other assets.”

For institutions that are public business entities, as defined under U.S. 

GAAP, ASU 2015-03 is effective for fiscal years, and interim periods 

within those fiscal years, beginning after December 15, 2015. For 

example, institutions with a calendar year fiscal year that are public 

business entities must apply the ASU in their Call Reports beginning 

March 31, 2016. For institutions that are not public business entities 

(i.e., that are private companies), the ASU is effective for fiscal years 

beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Thus, institutions with 

a calendar year fiscal year that are private companies must apply 

the ASU in their December 31, 2016, and subsequent quarterly Call 

Reports. Early adoption of the guidance in ASU 2015-03 is permitted.

Extraordinary Items

In January 2015, the FASB issued ASU No. 2015-01, “Simplifying 

Income Statement Presentation by Eliminating the Concept of 

Extraordinary Items.” This ASU eliminates from U.S. GAAP the 

concept of extraordinary items. At present, ASC Subtopic 225-20, 

Income Statement—Extraordinary and Unusual Items (formerly 

Accounting Principles Board Opinion No. 30, “Reporting the Results 

of Operations”), requires an entity to separately classify, present, and 

disclose extraordinary events and transactions. An event or transaction is presumed to be an ordinary and usual activity of the reporting 

entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction currently meets the criteria for 

extraordinary classification, an institution must segregate the extraordinary item from the results of its ordinary operations and report the 

extraordinary item in its income statement as “Extraordinary items 

and other adjustments, net of income taxes.” 

ASU 2015-01 is effective for fiscal years, and interim periods within 

those fiscal years, beginning after December 15, 2015. Thus, for 

example, institutions with a calendar year fiscal year must begin 

to apply the ASU in their Call Reports for March 31, 2016. Early 

adoption of ASU 2015-01 is permitted provided that the guidance 

is applied from the beginning of the fiscal year of adoption. For Call 

Report purposes, an institution with a calendar year fiscal year must 

apply the ASU prospectively, that is, in general, to events or transactions occurring after the date of adoption. However, an institution 

with a fiscal year other than a calendar year may elect to apply ASU 

2015-01 prospectively or, alternatively, it may elect to apply the ASU 

retrospectively to all prior calendar quarters included in the institution’s year-to-date Call Report income statement that includes the 

beginning of the fiscal year of adoption. 

After an institution adopts ASU 2015-01, any event or transaction 

that would have met the criteria for extraordinary classification 

before the adoption of the ASU should be reported in “Other noninterest income,” or “Other noninterest expense,” as appropriate, unless 

the event or transaction would otherwise be reportable in the income 

statement. [As a result of the recent accounting change, year-to-date 

Third Quarter 2016 “Extraordinary gains, net” on the QBP includes 

only Discontinued operations expense. Accordingly, comparisons 

to periods prior to September 2016 are not meaningful, since prior 

periods included all Extraordinary gains and Discontinued operations expense.] For additional information, institutions should refer 

to ASU 2015-01, which is available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498. 

Accounting by Private Companies for Identifiable Intangible Assets 

in a Business Combination

In December 2014, the FASB issued ASU No. 2014-18, “Accounting 

for Identifiable Intangible Assets in a Business Combination,” which 

is a consensus of the Private Company Council (PCC). This ASU 

provides an accounting alternative that permits a private company, 

as defined in U.S. GAAP (and discussed in a later section of these 

Supplemental Instructions), to simplify the accounting for certain 

intangible assets. The accounting alternative applies when a private 

company is required to recognize or otherwise consider the fair value 

of intangible assets as a result of certain transactions, including when 

applying the acquisition method to a business combination under 

ASC Topic 805, Business Combinations (formerly FASB Statement 

No. 141 (revised 2007), “Business Combinations”).

Under ASU 2014-18, a private company that elects the accounting 

alternative should no longer recognize separately from goodwill:

•Customer-related intangible assets unless they are capable of bein

sold or licensed independently from the other assets of a business, 

and

• Noncompetition agreements.

However, because mortgage servicing rights and core deposit intangibles are regarded as capable of being sold or licensed independently, 

a private company that elects this accounting alternative must recognize these intangible assets separately from goodwill, initially measure 

them at fair value, and subsequently measure them in accordance 

with ASC Topic 350, Intangibles–Goodwill and Other (formerly 

FASB Statement No. 142, “Goodwill and Other Intangible Assets”).

A private company that elects the accounting alternative in 

ASU 2014-18 also must adopt the private company goodwill accounting alternative described in ASU 2014-02, “Accounting for Goodwill.” 

However, a private company that elects the goodwill accounting 

alternative in ASU 2014-02 is not required to adopt the accounting 

alternative for identifiable intangible assets in ASU 2014-18.

A private company’s decision to adopt ASU 2014-18 must be made 

upon the occurrence of the first business combination (or other 

transaction within the scope of the ASU) in fiscal years beginning 

after December 15, 2015. The effective date of the private company’s 

decision to adopt the accounting alternative for identifiable intangible 

assets depends on the timing of that first transaction.

If the first transaction occurs in the private company’s first fiscal year 

beginning after December 15, 2015, the adoption will be effective for 

that fiscal year’s annual financial reporting period and all interim and 

annual periods thereafter. If the first transaction occurs in a fiscal 

year beginning after December 15, 2016, the adoption will be effective in the interim period that includes the date of the transaction and 

subsequent interim and annual periods thereafter.

Early application of the intangibles accounting alternative is permitted for any annual or interim period for which a private company’s 
2 0 1 7  •Volume 1 1  • Number 1

32 FDIC QUARTERLY

financial statements have not yet been made available for issuance. 

Customer-related intangible assets and noncompetition agreements that exist as of the beginning of the period of adoption should 

continue to be accounted for separately from goodwill, i.e., such 

existing intangible assets should not be combined with goodwill.

A bank or savings association that meets the private company definition in U.S. GAAP is permitted, but not required, to adopt ASU 2014-

18 for Call Report purposes and may choose to early adopt the ASU, 

provided it also adopts the private company goodwill accounting 

alternative. If a private institution issues U.S. GAAP financial statements and adopts ASU 2014-18, it should apply the ASU’s intangible 

asset accounting alternative in its Call Report in a manner consistent 

with its reporting of intangible assets in its financial statements.

For additional information on the private company accounting alternative for identifiable intangible assets, institutions should refer to 

ASU 2014-18, which is available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.

Private Company Accounting Alternatives 

In May 2012, the Financial Accounting Foundation, the independent 

private sector organization responsible for the oversight of the FASB, 

approved the establishment of the PCC to improve the process of setting accounting standards for private companies. The PCC is charged 

with working jointly with the FASB to determine whether and in 

what circumstances to provide alternative recognition, measurement, 

disclosure, display, effective date, and transition guidance for private 

companies reporting under U.S. GAAP. Alternative guidance for private companies may include modifications or exceptions to otherwise 

applicable existing U.S. GAAP standards. 

The banking agencies have concluded that a bank or savings association that is a private company, as defined in U.S. GAAP (as discussed 

in a later section of these Supplemental Instructions), is permitted 

to use private company accounting alternatives issued by the FASB 

when preparing its Call Reports, except as provided in 12 U.S.C. 

1831n(a) as described in the following sentence. If the agencies 

determine that a particular accounting principle within U.S. GAAP, 

including a private company accounting alternative, is inconsistent 

with the statutorily specified supervisory objectives, the agencies may 

prescribe an accounting principle for regulatory reporting purposes 

that is no less stringent than U.S. GAAP. In such a situation, an institution would not be permitted to use that particular private company 

accounting alternative or other accounting principle within U.S. 

GAAP for Call Report purposes. The agencies would provide appropriate notice if they were to disallow any accounting alternative under 

the statutory process.

Accounting by Private Companies for Goodwill 

On January 16, 2014, the FASB issued ASU No. 2014-02, 

“Accounting for Goodwill,” which is a consensus of the PCC. This 

ASU generally permits a private company to elect to amortize goodwill on a straight-line basis over a period of ten years (or less than ten 

years if more appropriate) and apply a simplified impairment model 

to goodwill. In addition, if a private company chooses to adopt the 

ASU’s goodwill accounting alternative, the ASU requires the private 

company to make an accounting policy election to test goodwill 

for impairment at either the entity level or the reporting unit level. 

Goodwill must be tested for impairment when a triggering event 

occurs that indicates that the fair value of an entity (or a reporting 

unit) may be below its carrying amount. In contrast, U.S. GAAP does 

not otherwise permit goodwill to be amortized, instead requiring 

goodwill to be tested for impairment at the reporting unit level annually and between annual tests in certain circumstances. The ASU’s 

goodwill accounting alternative, if elected by a private company, is 

effective prospectively for new goodwill recognized in annual periods 

beginning after December 15, 2014, and in interim periods within 

annual periods beginning after December 15, 2015. Goodwill existing as of the beginning of the period of adoption is to be amortized 

prospectively over ten years (or less than ten years if more appropriate). The ASU states that early application of the goodwill accounting 

alternative is permitted for any annual or interim period for which a 

private company’s financial statements have not yet been made available for issuance. 

A bank or savings association that meets the private company definition in ASU 2014-02, as discussed in the following section of these 

Supplemental Instructions (i.e., a private institution), is permitted, 

but not required, to adopt this ASU for Call Report purposes and 

may choose to early adopt the ASU. If a private institution issues U.S. 

GAAP financial statements and adopts the ASU, it should apply the 

ASU’s goodwill accounting alternative in its Call Report in a manner 

consistent with its reporting of goodwill in its financial statements. 

Thus, for example, a private institution with a calendar year fiscal year that chooses to adopt ASU 2014-02 must apply the ASU’s 

provisions in its December 31, 2015, and subsequent quarterly Call 

Reports unless early application of the ASU was elected. This would 

require the private institution to report in its December 31, 2015, Call 

Report one year’s amortization of goodwill existing as of January 1, 

2015, and the amortization of any new goodwill recognized in 2015. 

For additional information on the private company accounting 

alternative for goodwill, institutions should refer to ASU 2014-

02, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Definitions of Private Company and Public Business Entity

According to ASU No. 2014-02, “Accounting for Goodwill,” a private 

company is a business entity that is not a public business entity. ASU 

No. 2013-12, “Definition of a Public Business Entity,” which was 

issued in December 2013, added this term to the Master Glossary 

in the Accounting Standards Codification. This ASU states that a 

business entity, such as a bank or savings association, that meets any 

one of five criteria set forth in the ASU is a public business entity for 

reporting purposes under U.S. GAAP, including for Call Report purposes. An institution that is a public business entity is not permitted 

to apply the private company goodwill accounting alternative discussed in the preceding section when preparing its Call Report.

For additional information on the definition of a public business 

entity, institutions should refer to ASU 2013-12, which is available at 

http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=

1176156316498.

Reporting Certain Government-Guaranteed Mortgage Loans 

Upon Foreclosure 

In August 2014, the FASB issued Accounting Standards Update 

(ASU) No. 2014-14, “Classification of Certain GovernmentGuaranteed Mortgage Loans Upon Foreclosure,” to address diversity 

in practice for how government-guaranteed mortgage loans are 

recorded upon foreclosure. The ASU updates guidance contained in 

ASC Subtopic 310-40, Receivables—Troubled Debt Restructurings by 

Creditors (formerly FASB Statement No. 15, “Accounting by Debtors 

and Creditors for Troubled Debt Restructurings,” as amended), 

because U.S. GAAP previously did not provide specific guidance on 

how to categorize or measure foreclosed mortgage loans that are government guaranteed. The ASU clarifies the conditions under which a 

creditor must derecognize a government-guaranteed mortgage loan 

and recognize a separate “other receivable” upon foreclosure (that is, 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 33

when a creditor receives physical possession of real estate property 

collateralizing a mortgage loan in accordance with the guidance in 

ASC Subtopic 310-40). 

Under the ASU, institutions should derecognize a mortgage loan and 

record a separate other receivable upon foreclosure of the real estate 

collateral if the following conditions are met: 

•The loan has a government guarantee that is not separable from th

loan before foreclosure. 

•At the time of foreclosure, the institution has the intent to conve

the property to the guarantor and make a claim on the guarantee 

and it has the ability to recover under that claim. 

•At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed (tha

is, the real estate property has been appraised for purposes of the 

claim and thus the institution is not exposed to changes in the fair 

value of the property). 

This guidance is applicable to fully and partially governmentguaranteed mortgage loans provided the three conditions identified 

above have been met. In such situations, upon foreclosure, the separate other receivable should be measured based on the amount of the 

loan balance (principal and interest) expected to be recovered from 

the guarantor. 

For institutions that are public business entities, as defined under 

U.S. GAAP (as discussed in an earlier section of these Supplemental 

Instructions), ASU 2014-14 is effective for fiscal years, and interim 

periods within those fiscal years, beginning after December 15, 2014. 

For example, institutions with a calendar year fiscal year that are 

public business entities must apply the ASU in their Call Reports 

beginning March 31, 2015. However, institutions that are not public 

business entities (i.e., that are private companies) are not required 

to apply the guidance in ASU 2014-14 until annual periods ending after December 15, 2015, and interim periods beginning after 

December 15, 2015. Thus, institutions with a calendar year fiscal year 

that are private companies must apply the ASU in their December 31, 

2015, and subsequent quarterly Call Reports. Earlier adoption of the 

guidance in ASU 2014-14 is permitted if the institution has already 

adopted the amendments in ASU No. 2014-04, “Reclassification of 

Residential Real Estate Collateralized Consumer Mortgage Loans 

upon Foreclosure.” 

For additional information, institutions should refer to ASU 

2014-14, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Reclassification of Residential Real Estate Collateralized 

Consumer Mortgage Loans Upon Foreclosure

In January 2014, the FASB issued Accounting Standards Update 

(ASU) No. 2014-04, “Reclassification of Residential Real Estate 

Collateralized Consumer Mortgage Loans upon Foreclosure,” to 

address diversity in practice for when certain loan receivables should 

be derecognized and the real estate collateral recognized. The ASU 

updated guidance contained in Accounting Standards Codification 

Subtopic 310-40, Receivables–Troubled Debt Restructurings by 

Creditors (formerly FASB Statement No.15, “Accounting by Debtors 

and Creditors for Troubled Debt Restructurings,” as amended).

Under prior accounting guidance, all loan receivables were reclassified to other real estate owned (OREO) when the institution, as 

creditor, obtained physical possession of the property, regardless of 

whether formal foreclosure proceedings had taken place. The new 

ASU clarifies when a creditor is considered to have received physical 

possession (resulting from an in-substance repossession or foreclosure) of residential real estate collateralizing a consumer mortgage 

loan. Under the new guidance, physical possession for these residential real estate properties is considered to have occurred and a loan 

receivable would be reclassified to OREO only upon:

•The institution obtaining legal title upon completion of a fo

closure even if the borrower has redemption rights that provide the 

borrower with a legal right for a period of time after foreclosure to 

reclaim the property by paying certain amounts specified by law, or

•The completion of a deed in lieu of foreclosure or similar lega

agreement under which the borrower conveys all interest in the 

residential real estate property to the institution to satisfy the loan.

Loans secured by real estate other than consumer mortgage loans collateralized by residential real estate should continue to be reclassified 

to OREO when the institution has received physical possession of a 

borrower’s real estate, regardless of whether formal foreclosure proceedings take place.

For institutions that are public business entities, as defined under U.S. 

generally accepted accounting principles, ASU 2014-04 is effective for 

fiscal years, and interim periods within those fiscal years, beginning 

after December 15, 2014. For example, institutions with a calendar 

year fiscal year that are public business entities must apply the ASU 

in their Call Reports beginning March 31, 2015. However, institutions that are not public business entities are not required to apply 

the guidance in ASU 2014-04 until annual periods beginning after 

December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Thus, institutions with a calendar year 

fiscal year that are not public business entities must apply the ASU 

in their December 31, 2015, and subsequent quarterly Call Reports. 

Earlier adoption of the guidance in ASU 2014-04 is permitted. 

Entities can elect to apply the ASU on either a modified retrospective 

transition basis or a prospective transition basis. Applying the ASU on 

a prospective transition basis should be less complex for institutions 

than applying the ASU on a modified retrospective transition basis. 

Under the prospective transition method, an institution should apply 

the new guidance to all instances where it receives physical possession 

of residential real estate property collateralizing consumer mortgage 

loans that occur after the date of adoption of the ASU. Under the 

modified retrospective transition method, an institution should apply 

a cumulative-effect adjustment to residential consumer mortgage 

loans and OREO existing as of the beginning of the annual period 

for which the ASU is effective. As a result of adopting the ASU on a 

modified retrospective basis, assets reclassified from OREO to loans 

should be measured at the carrying value of the real estate at the date 

of adoption while assets reclassified from loans to OREO should be 

measured at the lower of the net amount of the loan receivable or the 

OREO property’s fair value less costs to sell at the time of adoption.

For additional information, institutions should refer to ASU 2014-04, 

which is available at http://www.fasb.org/jsp/FASB/Page/SectionPage

&cid=1176156316498.

True-Up Liability Under an FDIC Loss-Sharing Agreement

An insured depository institution that acquires a failed insured institution may enter into a loss-sharing agreement with the FDIC under 

which the FDIC agrees to absorb a portion of the losses on a specified 

pool of the failed institution’s assets during a specified time period. 

The acquiring institution typically records an indemnification asset 

representing its right to receive payments from the FDIC for losses 

during the specified time period on assets covered under the losssharing agreement.

Since 2009, most loss-sharing agreements have included a true-up 

provision that may require the acquiring institution to reimburse the 
2 0 1 7  •Volume 1 1  • Number 1

34 FDIC QUARTERLY

FDIC if cumulative losses in the acquired loss-share portfolio are less 

than the amount of losses claimed by the institution throughout the 

loss-sharing period. Typically, a true-up liability may result because the 

recovery period on the loss-share assets (e.g., eight years) is longer than 

the period during which the FDIC agrees to reimburse the acquiring 

institution for losses on the loss-share portfolio (e.g., five years).

Consistent with U.S. GAAP and bank guidance for “Offsetting,” 

institutions are permitted to offset assets and liabilities recognized 

in the Report of Condition when a “right of setoff” exists. Under 

ASC Subtopic 210-20, Balance Sheet—Offsetting (formerly FASB 

Interpretation No. 39, “Offsetting of Amounts Related to Certain 

Contracts”), in general, a right of setoff exists when a reporting 

institution and another party each owes the other determinable 

amounts, the reporting institution has the right to set off the amounts 

each party owes and also intends to set off, and the right of setoff is 

enforceable at law. Because the conditions for the existence of a right 

of offset in ASC Subtopic 210-20 normally would not be met with 

respect to an indemnification asset and a true-up liability under a losssharing agreement with the FDIC, this asset and liability should not be 

netted for Call Report purposes. Therefore, institutions should report 

the indemnification asset gross (i.e., without regard to any true-up 

liability) in Other Assets, and any true-up liability in Other Liabilities.

In addition, an institution should not continue to report assets 

covered by loss-sharing agreements after the expiration of the losssharing period even if the terms of the loss-sharing agreement require 

reimbursements from the institution to the FDIC for certain amounts 

during the recovery period.

Indemnification Assets and Accounting Standards Update 

No. 2012-06 – In October 2012, the FASB issued Accounting 

Standards Update (ASU) No. 2012-06, “Subsequent Accounting 

for an Indemnification Asset Recognized at the Acquisition Date 

as a Result of a Government-Assisted Acquisition of a Financial 

Institution,” to address the subsequent measurement of an indemnification asset recognized in an acquisition of a financial institution that 

includes an FDIC loss-sharing agreement. This ASU amends ASC 

Topic 805, Business Combinations (formerly FASB Statement No. 141 

(revised 2007), “Business Combinations”), which includes guidance 

applicable to FDIC-assisted acquisitions of failed institutions.

Under the ASU, when an institution experiences a change in the 

cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash flows expected to be 

collected on the assets covered by the loss-sharing agreement, the 

institution should account for the change in the measurement of the 

indemnification asset on the same basis as the change in the assets 

subject to indemnification. Any amortization of changes in the value 

of the indemnification asset should be limited to the lesser of the 

term of the indemnification agreement and the remaining life of the 

indemnified assets.

The ASU is effective for fiscal years, and interim periods within those 

fiscal years, beginning on or after December 15, 2012. For institutions with a calendar year fiscal year, the ASU takes effect January 1, 

2013. Early adoption of the ASU is permitted. The ASU’s provisions 

should be applied prospectively to any new indemnification assets 

acquired after the date of adoption and to indemnification assets 

existing as of the date of adoption arising from an FDIC-assisted 

acquisition of a financial institution. Institutions with indemnification assets arising from FDIC loss-sharing agreements are expected 

to adopt ASU 2012-06 for Call Report purposes in accordance with 

the effective date of this standard. For additional information, refer 

to ASU 2012-06, available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Goodwill Impairment Testing – In September 2011, the FASB issued 

Accounting Standards Update (ASU) No. 2011-08, “Testing Goodwill 

for Impairment,” to address concerns about the cost and complexity of the existing goodwill impairment test in ASC Topic 350, 

Intangibles-Goodwill and Other (formerly FASB Statement No. 142, 

“Goodwill and Other Intangible Assets”). The ASU’s amendments to 

ASC Topic 350 are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 

2011 (i.e., for annual or interim tests performed on or after January 1, 

2012, for institutions with a calendar year fiscal year). Early adoption 

of the ASU was permitted. Under ASU 2011-08, an institution has 

the option of first assessing qualitative factors to determine whether 

it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering all relevant events and circumstances, an institution determines it is unlikely 

(that is, a likelihood of 50 percent or less) that the fair value of a 

reporting unit is less than its carrying amount (including goodwill), 

then the institution does not need to perform the two-step goodwill 

impairment test. If the institution instead concludes that the opposite 

is true (that is, it is likely that the fair value of a reporting unit is less 

than its carrying amount), then it is required to perform the first step 

and, if necessary, the second step of the two-step goodwill impairment test. Under ASU 2011-08, an institution may choose to bypass 

the qualitative assessment for any reporting unit in any period and 

proceed directly to performing the first step of the two-step goodwill 

impairment test.

Accounting for Loan Participations – Amended ASC Topic 860 

(formerly FAS 166) modified the criteria that must be met in order 

for a transfer of a portion of a financial asset, such as a loan participation, to qualify for sale accounting—refer to previously published 

Quarterly Banking Profile notes: http://www5.fdic.gov/qbp/2011mar/

qbpnot.html.

Other-Than-Temporary Impairment – When the fair value of an 

investment in an individual available-for-sale or held-to-maturity 

security is less than its cost basis, the impairment is either temporary 

or other-than-temporary. The amount of the total other-than-temporary impairment related to credit loss must be recognized in earnings, 

but the amount of total impairment related to other factors must be 

recognized in other comprehensive income, net of applicable taxes. 

To determine whether the impairment is other-than-temporary, an 

institution must apply the applicable accounting guidance—refer to 

previously published Quarterly Banking Profile notes: http://www5.

fdic.gov/qbp/2011mar/qbpnot.html.

Accounting Standards Codification – refer to previously published 

Quarterly Banking Profile notes: http://www5.fdic.gov/qbp/2011sep/

qbpnot.html. 

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assess-
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FDIC QUARTERLY 35

ment 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.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity tier 1 capital ratio – ratio of common equity tier 1 

capital to risk-weighted assets. Common equity tier 1 capital includes 

common stock instruments and related surplus, retained earnings, 

accumulated other comprehensive income (AOCI), and limited 

amounts of common equity tier 1 minority interest, minus applicable 

regulatory adjustments and deductions. Items that are fully deducted 

from common equity tier 1 capital include goodwill, other intangible 

assets (excluding mortgage servicing assets) and certain deferred tax 

assets; items that are subject to limits in common equity tier 1 capital 

include mortgage servicing assets, eligible deferred tax assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average earning assets.

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.
2 0 1 7  •Volume 1 1  • Number 1

36 FDIC QUARTERLY

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified 

future date, a specific quantity of an underlying variable or index 

at a specified price or yield. These contracts exist for a variety of 

variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning 

March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Beginning September 30, 2009, insured deposits include deposits in 

accounts of $100,000 to $250,000 that are covered by a temporary 

increase in the FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and Consumer 

Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. 

Also, the Dodd-Frank Act amended the Federal Deposit Insurance 

Act to include noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing transaction accounts were fully insured, without 

limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on the balance sheet—including trading assets and liabilities, available-for-sale 

securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 

of fair values. During periods of market stress, the fair values of some 

financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships, and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, 

less subsequent quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other loans 

secured by real estate.

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed from 

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.

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, 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 37

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that file a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet 

items multiplied by risk-weights that range from zero to 200 percent. 

A conversion factor is used to assign a balance sheet equivalent 

amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity,” 

which are reported at amortized cost (book value), and securities designated as “available-for-sale,” reported at fair (market) value.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for 

income taxes. Thrift Financial Report (TFR) filers also include gains 

(losses) on the sales of assets held for sale. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have been 

securitized, except an interest that is a form of recourse or other 

seller-provided credit enhancement. Seller’s interests differ from 

the securities issued to investors by the securitization structure. The 

principal amount of a seller’s interest is generally equal to the total 

principal amount of the pool of assets included in the securitization 

structure less the principal amount of those assets attributable to 

investors, i.e., in the form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending Fund 

(SBLF) was enacted into law in September 2010 as part of the Small 

Business Jobs Act of 2010 to encourage lending to small businesses 

by providing capital to qualified community institutions with assets 

of less than $10 billion. The SBLF Program is administered by the 

U.S. Treasury Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx).

Under the SBLF Program, the Treasury Department purchased 

noncumulative perpetual preferred stock from qualifying depository 

institutions and holding companies (other than Subchapter S and 

mutual institutions). When this stock has been issued by a depository 

institution, it is reported as “Perpetual preferred stock and related 

surplus.” For regulatory capital purposes, this noncumulative 

perpetual preferred stock qualifies as a component of Tier 1 capital. 

Qualifying Subchapter S corporations and mutual institutions issue 

unsecured subordinated debentures to the Treasury Department 

through the SBLF. Depository institutions that issued these 

debentures report them as “Subordinated notes and debentures.” 

For regulatory capital purposes, the debentures are eligible for 

inclusion in an institution’s Tier 2 capital in accordance with their 

primary federal regulator’s capital standards. To participate in the 

SBLF Program, an institution with outstanding securities issued 

to the Treasury Department under the Capital Purchase Program 

(CPP) was required to refinance or repay in full the CPP securities 

at the time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP remain 

outstanding after the refinancing of the CPP stock through the SBLF 

Program unless the institution chooses to repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal income 

tax purposes. It is generally not subject to any federal income taxes at 

the corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings.

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.

FDIC QUARTERLY 39

Introduction Deposits across the banking industry grew while the number of offices shrank among 

noncommunity banks and increased among community banks from the previous year, 

according to the 2016 Summary of Deposits (SOD) survey. Meanwhile, offices in energydependent counties reported almost no deposit growth as natural gas, oil, and coal prices fell.

This paper highlights key findings from the 2016 SOD, derived from office and deposit data 

that the FDIC collects from all FDIC-insured institutions as of June 30 each year. Recent 

trends in deposit growth and office contraction continued with the 2016 survey. Community 

banks reported more deposits and more offices, even as the number of offices declined for 

the industry as a whole.

Deposits at noncommunity banks grew faster in metropolitan areas than in micropolitan 

areas and rural areas, although the number of branches of noncommunity banks decreased 

at similar rates in each of those areas. While the total of all deposits in all offices in counties with high exposure to the energy industry did not increase from a year ago, these offices 

have stabilized from the 7.1 percent decrease in deposits noted in the 2015 SOD.

Offices Contract and 

Deposits Grow at a Steady 

Rate Industry Wide

In 2016, FDIC-insured institutions reduced their number of offices by 1.5 percent 

(1,411 offices) to 91,851 for the year ending June 30, 2016 (Chart 1). This decline is on par 

with the 1.5 percent (1,453 offices) year-over-year decrease in 2015 and marks the seventh 

consecutive year that the number of offices has declined. During this period, the largest 

decline occurred in 2014, when office counts dropped 1.7 percent (1,614 offices). Since 2014, 

the rate of decline in offices has fallen but remains higher than the five-year average decline 

of 1.3 percent.1

Total deposits at FDIC-insured institutions increased 5.8 percent to $11.2 trillion from the 

previous year—similar to year-over-year growth in 2015 but slightly lower than the five-year 

average of 6.4 percent. Due in part to the overall contraction in offices, total deposits per 

office grew 7.4 percent to $122 million and the number of offices per 10,000 people declined 

2.3 percent to 2.8 (Chart 2). The number of FDIC-insured institutions totaled 6,058 as of 

June 30, 2016, down from 6,348 one year earlier. Continuing a trend, the number of offices 

per institution increased to 15.2, up 3.2 percent year over year.

Banks Attract More Deposits While Operating Fewer Offices

1 In this analysis, “five-year average” refers to a five-year compound annual growth rate (CAGR).

Sources: FDIC Summary of Deposits and OTS Branch Oce Survey.

Number of Oces

Deposits Increased While the Number of Oces Decreased  

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

0

2

4

6

8

10

12

Number of Oces

Deposits

Deposits ($ Trillions)

Chart 1

Sources: FDIC Summary of Deposits, OTS Branch Oce Survey, and U.S. Census Bureau.

Deposits per Oces ($ Millions)

Oces per 10,000 People Decreased While 

Deposits per Oce Increased

Oces per 10,000 People

0

20

40

60

80

100

120

140

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

0

1

2

3

4

Deposits per Oce

Oces per 10,000 People

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

40 FDIC QUARTERLY

Metropolitan Areas Drive 

Deposit Growth, Rural 

Areas Report Slower 

Office Contraction

Deposits and offices continue to be concentrated in metropolitan areas: As of June 30, 2016, 

79 percent of deposit-taking offices and 93 percent of deposits were located in metropolitan 

areas. The high percentage of offices and deposits in these areas is not surprising, as nearly 

87 percent of the U.S. population lives in a metropolitan area.

Both metropolitan and nonmetropolitan areas reported office contraction and deposit 

growth year over year (Table 1).2 Deposits in metropolitan areas grew 6.1 percent from the 

previous year, compared with increases of 2.6 percent in micropolitan areas and 1.4 percent 

in rural areas. Deposits in metropolitan and micropolitan areas grew at a faster rate than a 

year ago, while deposit growth in rural areas slowed to just over half the rate of the previous 

year. Only micropolitan areas exceeded their five-year average growth rate.

For the third consecutive year, office contraction was slowest in rural areas and fastest in 

micropolitan areas. The number of offices in rural areas declined 1.2 percent from the previous year, compared with declines of 1.5 percent in metropolitan areas and 1.6 percent in 

micropolitan areas. The number of offices declined in metropolitan areas for the seventh 

consecutive year and at a rate faster than their five-year average, while offices declined for 

only the fifth consecutive year in micropolitan and rural areas and at a rate equal to their 

five-year averages.

Office density, defined as the number of offices per 10,000 people, compares the relative 

prevalence of banking services across geographies. Counties in rural and micropolitan areas 

tend to have higher and more stable densities per 10,000 people, while counties in metropolitan areas tend to have lower densities that have fallen more rapidly over time.3

 Continuing 

this trend, in 2016 counties located in rural areas reported an office density of 4.8 compared 

to a reported office density of 3.7 for those in micropolitan areas and 2.6 for those in metropolitan areas (Chart 3).4

 Since 1987, counties in metropolitan areas have reported a loss of 

0.7 offices per 10,000 people, the largest loss of office density among area types.

2 Metropolitan statistical areas contain a core urban area of greater than 50,000 inhabitants. Micropolitan statistical areas have 

urban clusters of between 10,000 and 50,000 inhabitants. All other areas are classified as rural.

3 See Eric C. Breitenstein and John M. McGee, “Brick and Mortar Banking Remains Prevalent in an Increasingly Virtual World,” 

FDIC Quarterly, Vol. 9, No. 1 (2015), https://www.fdic.gov/bank/analytical/quarterly/2015_vol9_1/FDIC_4Q2014_v9n1_

BrickAndMortar.pdf. 4 Population data for 2016 are forecasted by Moody’s Analytics. Data from 2015 are used as the 2016 forecast for Alaska, Hawaii, 

and Virginia.

Sources: FDIC Summary of Deposits and U.S. Census Bureau.

Number of Oces per 10,000 People by County Type, 1987–2016

Oce Density Across County Types Declined From a Year Ago 

While Dierences Between County Types Remained Stable

0

1

2

3

4

5

6

1987 1991 1995 1999 2003 2007 2011 2015

Metropolitan Counties

Micropolitan Counties

Rural Counties

5.1 4.8

4.1

3.7

3.3

2.6

Chart 3
FDIC QUARTERLY 41

BANKS ATTRACT MORE DEPOSITS WHILE OPERATING FEWER OFFICES

Deposit and Office Trends 

Remain Stable for the 

Largest Office Service Types

The largest reported office service types continued to be brick-and-mortar, retail, and drivethrough offices.5

 Traditional brick-and-mortar offices represented 90.7 percent of all banking offices in 2016, a share that has remained stable since 2001, while retail offices made up 

5.5 percent and drive-through offices comprised 2.6 percent. Continuing a trend that began 

in 2009, the number of brick-and-mortar offices fell 1.2 percent in 2016, a figure in line with 

the five-year average (Table 2). Deposits at brick-and-mortar offices increased 5.8 percent. 

The number of retail offices fell 4.7 percent, accelerating a trend of contraction that began 

in 2012. Deposits at retail offices rose 3.6 percent. The number of drive-through offices 

declined by 4.1 percent. Despite reporting a decline in deposits of 0.5 percent in 2016, drivethrough offices maintained a five-year average deposit growth of 27.3 percent. This high 

average is due to a 165.6 percent increase in reported deposits at drive-through offices from 

2013 to 2014, primarily due to one large institution reclassifying several offices from brickand-mortar to drive-through. All other office types represent 1.3 percent of offices, and their 

number contracted by 2.9 percent in 2016, much faster than the five-year average decline of 

0.2 percent. The average trend of slow contraction for all other office types is driven primarily by an increase in the number of offices reporting as trust offices—the only office service 

type to increase in number for each of the past six years.

Rural Areas Experienced the Slowest Rate of Office Contraction and the Weakest 

Rate of Deposit Growth

Metropolitan Areas Micropolitan Areas Rural Areas

Number of 

Offices

Deposits 

($ billions)

Number of 

Offices

Deposits 

($ billions)

Number of 

Offices

Deposits 

($ billions)

June 2016 72,686 10,404 10,045 468 9,120 361

June 2015 73,830 9,803 10,205 456 9,227 356

June 2011 77,584 7,480 10,892 424 9,708 326

1-Year Percent Change -1.5% 6.1% -1.6% 2.6% -1.2% 1.4%

5-Year CAGR -1.3% 6.8% -1.6% 2.0% -1.2% 2.1%

Source: FDIC Summary of Deposits.

Notes: CAGR = Compound Annual Growth Rate. Metropolitan statistical areas contain a core urban area of greater than 50,000 inhabitants. Micropolitan 

statistical areas have urban clusters of between 10,000 and 50,000 inhabitants. All other areas are classified as rural.

Table 1

All Office Types Declined in 2016

Brick-and-Mortar Offices Retail Offices Drive-Through Facilities Other Office Types

Number of 

Offices

Deposits 

($ billions)

Number of 

Offices

Deposits 

($ billions)

Number of 

Offices

Deposits 

($ billions)

Number of 

Offices

Deposits 

($ billions)

June 2016 83,265 10,763 5,016 101 2,348 90 1,222 279

June 2015 84,295 10,172 5,261 97 2,448 91 1,258 255

June 2011 88,207 7,920 5,968 85 2,772 27 1,237 198

1-Year Percent 

Change

-1.2% 5.8% -4.7% 3.6% -4.1% -0.5% -2.9% 9.6%

5-Year CAGR -1.1% 6.3% -3.4% 3.5% -3.3% 27.3% -0.2% 7.1%

Source: FDIC Summary of Deposits.

Note: CAGR = Compound Annual Growth Rate. 

Table 2

5 The SOD survey covers several banking office type categories, including brick-and-mortar, retail, drive-through, mobile, 

seasonal, home banking, trust offices, and more. For a detailed description of all branch service types, see https://www.fdic.gov/

regulations/resources/call/SOD_Instructions.pdf.
2 0 1 7  •Volume 1 1  • Number 1

42 FDIC QUARTERLY

Over a longer horizon, several office service types ran counter to the trend through 2016. 

Home banking offices and trust offices reported positive five-year average growth in the 

number of offices, with home banking offices increasing 1.8 percent and trust offices 

increasing 15.2 percent. Administrative, military, mobile, seasonal, and trust offices reported 

negative five-year average growth in deposits.

Community Bank Offices 

Increase Slightly While 

Noncommunity Bank 

Offices Decline

Unlike noncommunity banks, community banks increased their number of offices from the 

previous year and from five years prior (Table 3).6 Fewer noncommunity bank offices and 

a larger number of community bank offices combined to elevate the share of community 

bank offices from 32.8 percent in 2011 to 35.2 percent in 2016. Community bank offices 

increased 0.2 percent (67 offices) year over year, slightly more than the five-year average 

growth of 0.1 percent per year. The annual increase occurred predominantly in metropolitan areas. Office growth was limited to a small number of institutions, as most community banks (87 percent) reported no change in their total number of offices. Conversely, 

noncommunity banks were much more likely to open and close offices. Nearly 35 percent of 

noncommunity banks reported fewer offices than a year ago, more than six times the rate 

of community banks. Overall, noncommunity bank offices fell by 2.3 percent (1,418 offices), 

a faster pace than their five-year average. This reduction occurred across metropolitan and 

nonmetropolitan areas and in every state.

Noncommunity Banks Reduced Offices While Community Banks 

Maintained Office Numbers

Community Banks Noncommunity Banks

Number of 

Offices

Deposits 

($ billions)

Number of 

Offices

Deposits 

($ billions)

June 2016 32,297 1,752 59,554 9,481

June 2015 32,230 1,657 60,972 8,937

June 2011 32,107 1,415 65,821 6,775

1-Year Percent Change 0.2% 5.8% -2.3% 6.1%

5-Year CAGR 0.1% 4.4% -2.0% 7.0%

Source: FDIC Summary of Deposits.

Notes: Data have been adjusted for mergers. See inset box (page 43) for a detailed description of merger 

adjusting. 

Community banks are identified based on criteria defined in the FDIC Community Banking Study.

CAGR = Compound Annual Growth Rate.

Table 3

6 Community banks are identified based on criteria including asset size and geographic scope of operations. They are defined in 

the FDIC Community Banking Study (2012). Figures in which community and noncommunity banks are compared across time 

periods are adjusted for mergers. No other figures in this analysis were adjusted for mergers, because doing so is required only of 

industry subgroups. For more detail on merger adjusting, see the inset box. 
FDIC QUARTERLY 43

BANKS ATTRACT MORE DEPOSITS WHILE OPERATING FEWER OFFICES

Community and 

Noncommunity Banks 

Report Strong 

Deposit Growth

Deposits increased at community and noncommunity banks. In 2016, community bank 

deposits increased 5.8 percent ($95.3 billion) from a year earlier to $1.75 trillion, with more 

than two-thirds of community banks reporting an annual increase. The growth rate of 

community bank deposits outpaced that of noncommunity banks in all geographic areas 

(Chart 4). In micropolitan and rural areas, community banks held a majority of total 

deposits and accounted for more than 70 percent of deposit growth. In metropolitan areas, 

noncommunity banks held most of the deposits and accounted for more than 85 percent of 

total growth. Total noncommunity bank deposits increased 6.1 percent ($543.5 billion), with 

more than three-quarters of noncommunity banks reporting an annual increase.

Deposit Growth at Community Banks Outpaced Growth at

Noncommunity Banks in All Geographic Areas

Source: FDIC Summary of Deposits.

Note: Metropolitan statistical areas contain a core urban area of greater than 50,000 inhabitants. 

Micropolitan statistical areas have urban clusters of between 10,000 and 50,000 inhabitants. 

All other areas are classied as rural.

6.2

2.2

7.2

3.0

1.9

0

1

2

3

4

5

6

7

8

Metropolitan Areas Micropolitan Areas Rural Areas

Noncommunity Banks

1-Year Deposit Growth (Percent) Community Banks

0.5

Chart 4

The analysis of community and noncommunity banks was 

merger-adjusted with a fixed community bank designation 

as of June 30, 2016. Merger adjusting aligns acquired banks 

and their acquiring institutions in previous periods and 

treats the entities as if the merger had already occurred. 

Thus, if an institution purchased another during the study 

interval, merger adjusting combines the deposits and 

offices of the acquired institution with those of its acquirer 

in all prior periods. In addition, the community and 

noncommunity bank designations were fixed as of June 30, 

2016, for all prior periods. Both of these steps are required 

for a “like-to-like” comparison between quarters.

The process of merger adjusting bank data to fix the groupings as of a point in time is important, because not doing so 

may lead to erroneous conclusions. It is critical to control 

for changes to an institution’s community bank designation 

during the study interval, which is frequently the result 

of a merger. Community bank deposit growth would be 

understated and community bank office reductions would 

be overstated in an analysis that does not merger adjust and 

control for such changes.

Because merger adjusting aligns acquired institutions 

with the existing acquiring institution, institutions that 

voluntarily liquidate and failures resulting in a payout 

were excluded from this analysis. In these cases, there is 

not an existing institution to which to assign the deposits 

and branches. A total of 81 institutions, or 1.1 percent of 

total banks from second quarter 2011, were excluded from 

prior periods in the community and noncommunity bank 

portions of this analysis. These institutions tend to be small 

and account for minor reductions in the total number of 

offices and deposits in prior periods.

How Does Merger Adjusting Work? Why Do It?
2 0 1 7  •Volume 1 1  • Number 1

44 FDIC QUARTERLY

The Number of Offices 

Declines in Most States

The number of offices declined in 45 of the 50 U.S. states between 2015 and 2016, as shown 

in the map below. The number of offices remained the same in two states and increased in 

three others. The number of offices also declined in the District of Columbia, Puerto Rico, 

Guam, and the Northern Mariana Islands. The number of offices did not change in five 

other areas in which banks must file the Summary of Deposits survey.7

The Number of Banks With 

Offices in Multiple States 

Increases

Although the number of banks has declined since the 1980s, the number of banks 

with offices in multiple states has increased. The Riegle-Neal Interstate Banking and Efficiency Act of 1994 permitted interstate bank branching at the federal level, and the number 

of banks with offices in multiple states has grown since then.8 The net number of banks 

with offices in more than one state increased from 688 to 703 between 2015 and 2016. 

During that time, 50 banks that previously operated in only one state added offices in additional states, while six banks that operated in multiple states reduced their operations to only 

one state. Further, 27 banks that operated in multiple states were acquired during the year 

and two closed.

Over the course of the year, 83 banks added offices in additional states and consequently had 

broader branch networks in 2016 than in 2015. Twenty banks operated offices in fewer states 

in 2016 than in 2015.

e Number of Oces Declined in Most States

Source: FDIC Summary of Deposits. 

Oces Declined 1% - 2%

Oces Declined More an 2%

Oces Declined Less an 1%

Oces Were Unchanged

Oce Growth

Map

7 The remaining areas are American Samoa, the Federated States of Micronesia, the Marshall Islands, Palau, and the U.S. Virgin 

Islands.

8 Although some states permitted interstate banking before 1994, interstate banking was not permitted nationally until that year. 

See https://www.fdic.gov/regulations/laws/rules/6500-3500.html.
FDIC QUARTERLY 45

BANKS ATTRACT MORE DEPOSITS WHILE OPERATING FEWER OFFICES

Offices in Counties 

Highly Dependent on 

Energy Activity Show No 

Deposit Growth

Falling prices for energy products such as coal, oil, and natural gas contributed to job losses 

in several parts of the country. Deposit growth was adversely affected in those areas as well. 

Nationwide, the number of jobs in mining increased more than 38 percent between the 

fourth quarter of 2009 and the third quarter of 2014. Subsequent to this increase, the number 

of mining jobs decreased nearly 24 percent between the third quarter of 2014 and the second 

quarter of 2016 as energy prices fell. The U.S. Department of Agriculture (USDA) labels some 

U.S. counties as “mining-dependent,” which includes mining of coal, oil, and natural gas as 

well as support activities.9 Deposits in mining-dependent counties increased considerably 

in the earlier part of the decade, when energy exploration in the United States grew rapidly 

(Chart 5). Deposits in these counties declined in 2015 and were unchanged in 2016, which 

suggests that deposits in those counties may be stabilizing.

Deposit Market Share 

Among Metropolitan Areas 

Shows Little Change

The SOD data allow for analysis of market concentration in various areas. Markets are 

considered to be highly concentrated if a high percentage of deposits are held by a small 

number of institutions. By contrast, if deposits are widely distributed among many institutions, then market concentration is low. Out of 388 metropolitan areas counted in the SOD, 

slightly more than half (201) experienced an increase in market concentration while 187 

experienced a decrease.10

Conclusion The 2016 SOD survey shows that recent trends in deposit growth and office contraction of 

FDIC-insured institutions continued into 2016. Like the overall industry, the vast majority of 

states and territories reported deposit growth and a decline in the number of offices in 2016. 

In addition, metropolitan, micropolitan, and rural areas all reported deposit growth and 

fewer offices. Deposit growth rates in metropolitan areas continue to be higher than those in 

micropolitan and rural areas, but the gap in growth rates has been narrowing in recent years. 

Offices declined most slowly in rural areas for each of the past three years.

Counties With High Exposure to Oil, Natural Gas, and Coal 

Had No Deposit Growth 

Sources: USDA and FDIC Summary of Deposits.

Not Mining-Dependent

Year-Over-Year Deposit Growth (Percent) Mining-Dependent

1.2

7.3 8.3

5.2

6.9 5.9 6.0

10.0 9.3

11.6

10.3

11.8

-7.1

0.0

-8

-3

2

7

12

2010 2011 2012 2013 2014 2015 2016

Chart 5

9 The USDA defines mining-dependent counties as those in which 13 percent or more of the county’s annual labor and 

proprietors’ earnings were derived from mining, or 8 percent or more of jobs were in mining, as measured by the 2010–2012 

Bureau of Economic Analysis, Local Area Personal Income and Employment data http://www.ers.usda.gov/data-products/countytypology-codes/descriptions-and-maps.aspx#mining. 10 Market concentration is measured by the Herfindahl-Hirschman Index (HHI). This calculation is given by comparing the 

deposit share of each bank to total deposits in the area. An index score of 0 indicates perfectly equally distributed market share, 

while a score of 10,000 indicates that a single institution comprises the entire market. A market is considered highly concentrated 

at a score of 2,500. For an explanation of the HHI and how it is used to determine market concentration, see “Horizontal Merger 

Guidelines,” published by the Department of Justice at https://www.justice.gov/atr/horizontal-merger-guidelines-08192010.
2 0 1 7  •Volume 1 1  • Number 1

46 FDIC QUARTERLY

Noncommunity banks drove the overall industry trends in office reductions, as they 

reported fewer offices in metropolitan, micropolitan, and rural areas, and in all states. 

Conversely, the total number of community bank offices increased slightly. Community 

bank office growth occurred predominantly in metropolitan areas and also spanned a 

majority of states. Deposits at both community and noncommunity banks grew at a similar 

pace to that of the industry average. Both groups reported deposit growth in metropolitan, 

micropolitan, and rural areas, and in nearly every state.

Authors:

Nathan L. Hinton

Economic Analyst

Division of Insurance and Research

Derek K. Thieme

Economic Analyst

Division of Insurance and Research

Angela N. Woodhead

Economic Analyst

Division of Insurance and Research