QUARTERLY BANKING PROFILE Second Quarter 2017

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

FDIC-Insured Institutions Earn $48.3 Billion in the Second Quarter

Quarterly Net Income Is 10.7 Percent Higher Than a Year Earlier

Community Bank Net Income Rises 8.5 Percent From the Year Before

Average Return on Assets of 1.14 Percent Is Highest in 10 Years

Total Loans and Leases Increase 3.7 Percent From the Previous Year

Higher Net Interest Income 

Lifts Industry Earnings

Higher net interest income and restrained growth in operating expenses helped lift banking 

industry profits in second quarter 2017. The 5,787 commercial banks and savings institutions insured by the FDIC reported net income of $48.3 billion for the quarter, an increase 

of $4.7 billion (10.7 percent) compared with the second quarter of 2016. Almost two out of 

every three banks—63.4 percent—reported year-over-year earnings improvement, while only 

4.1 percent were unprofitable, down from 4.6 percent a year earlier. The average return on 

assets (ROA) rose to 1.14 percent from 1.06 percent the year before. This is the highest quarterly ROA for the industry since second quarter 2007.

Net Interest Margins 

Improve

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

rose to $190.5 billion in the second quarter, an $11 billion (6.1 percent) increase from 

second quarter 2016. Most of the improvement consisted of higher net interest income, 

which was $10.3 billion (9.1 percent) higher than a year earlier. The increase in net interest income helped lift the industry’s net interest margin (NIM) to 3.22 percent, from 

3.08 percent in second quarter 2016. This is the highest quarterly NIM since fourth quarter 

2013. While 57.7 percent of all banks reported higher NIMs, the improvement was greatest 

at larger institutions. More of their assets reprice or mature in the short term, and they are 

better-positioned to benefit from rising short-term interest rates. Noninterest income totaled 

$66.8 billion, up $654 million (1 percent) from a year earlier. Income from asset servicing 

was $1 billion (93.9 percent) higher, while gains on asset sales were $1.6 billion (31.7 percent) 

lower. Trading income fell $313 million (4.5 percent).

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

50

-10

0

10

20

30

40

1 2 3 4 1 2 341 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2

2011

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 43.2

2017

44.0

48.3

Chart 1

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 2
2 0 1 7  •  Volume 1 1  • Number 3

2 FDIC QUARTERLY

Noninterest Expense 

Growth Is Moderate

Banks set aside $12 billion in loan-loss provisions during the second quarter, up 

$273 million (2.3 percent) from the previous year. Slightly more than one-third of all 

banks—36.5 percent—increased their loss provisions versus second quarter 2016, while 

32.2 percent reported lower provisions. Noninterest expenses totaled $108.6 billion, an 

increase of $3.5 billion (3.3 percent). Expenses for salaries and employee benefits were 

$2.1 billion (4.3 percent) higher than a year earlier, as the total number of employees rose by 

48,019 (2.3 percent).

Credit Card Charge-Offs 

Continue to Increase

Loan losses rose from the year-ago level for a seventh consecutive quarter. Net charge-offs 

of loans and leases totaled $11.3 billion in the second quarter, an increase of $1.1 billion 

(11.2 percent) from a year earlier. Credit card charge-offs increased year over year for a 

seventh consecutive quarter, rising by $1.4 billion (24.5 percent), while charge-offs in other 

major loan categories declined. Net charge-offs of loans to commercial and industrial (C&I) 

borrowers were $210 million (9.7 percent) below the year-earlier level. The average net 

charge-off rate rose to 0.48 percent, from 0.45 percent in second quarter 2016.

Noncurrent Loan Balances 

Decline Further

The amount of loans and leases that were noncurrent—90 days or more past due or in 

nonaccrual status—fell for the 28th time in the last 29 quarters, declining by $8.4 billion 

(6.7 percent) in the three months ended June 30. Noncurrent balances declined in all major 

loan categories during the quarter. Noncurrent residential mortgage loans fell by $4.8 billion 

(7.9 percent), while noncurrent C&I loans declined by $2.2 billion (9.5 percent). The average noncurrent loan rate fell from 1.34 percent to 1.23 percent during the quarter, the lowest 

since third quarter 2007.

Banks Shift Their Reserve 

Allocations

Total loan-loss reserves posted a modest ($197 million, 0.2 percent) decline during the 

second quarter. The industry’s coverage ratio of reserves to noncurrent loans and leases rose 

from 97.5 percent to 104.3 percent, the highest level since third quarter 2007. Banks with 

assets greater than $1 billion, which account for 90 percent of the industry’s loss reserves, 

increased their reserves for credit card losses by $1.4 billion (4.3 percent), while reducing 

their reserves for commercial loan losses by $1.1 billion (3.3 percent) and their reserves for 

residential real estate loan losses by $922 million (5.5 percent).

Quarterly Net Interest Margin

All FDIC-Insured Institutions

Percent

Source: FDIC.

2.0

2.5

3.0

3.5

4.0

4.5

5.0

 Assets > $250 Billion

 Assets $10 Billion - $250 Billion

 Assets $1 Billion - $10 Billion

 Assets $100 Million - $1 Billion

 Assets < $100 Million

2010 2011 2012 2013 2014 2015 2016 2017

Chart 3

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

Noncurrent Loan Rate

Quarterly Net Charge-O Rate

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

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Retained Earnings Drive 

Capital Growth

Equity capital increased by $38.7 billion (2 percent) during the quarter. Retained earnings contributed $20 billion to the growth in capital, $322 million (1.6 percent) less than in 

second quarter 2016. Banks declared $28.3 billion in dividends in the quarter, up $5 billion 

(21.4 percent) from the year-earlier quarter. Lower long-term interest rates contributed to an 

$8 billion improvement in accumulated other comprehensive income, which was reflected 

in the equity capital increase. At the end of the quarter, 99.4 percent of all FDIC-insured 

institutions, representing 99.96 percent of total industry assets, met or exceeded the requirements for well-capitalized banks, as defined for Prompt Corrective Action purposes.

Banks Reduce Their Federal 

Reserve Bank Balances

Industry assets surpassed $17 trillion for the first time at the end of the second quarter, 

rising by $100.8 billion (0.6 percent) during the three months ended June 30. Banks reduced 

their balances at Federal Reserve banks by $102.4 billion (8 percent). They also reduced 

their investment securities by $15 billion (0.4 percent), as U.S. Treasury securities fell by 

$49.9 billion (9.7 percent), and mortgage-backed securities rose by $38 billion (1.9 percent). 

Securities held in available-for-sale accounts declined by $59 billion (9.7 percent), while securities in held-to-maturity accounts increased by $44 billion (4.7 percent). Assets in trading 

accounts increased by $18.7 billion (3.2 percent) during the quarter. The percentage of industry assets maturing or repricing in more than three years remained unchanged from the first 

quarter, at 35.4 percent. The all-time high level for this percentage—35.5 percent—occurred 

at the end of fourth quarter 2016.

The Annual Loan Growth 

Rate Slows for a Third 

Consecutive Quarter

Total loans and leases increased by $161.2 billion (1.7 percent) during the second quarter. 

All major loan categories posted increases, led by residential mortgage loans (up $35.1 billion, 

1.8 percent), credit card balances (up $23.6 billion, 3.1 percent), and C&I loans (up 

$22.1 billion, 1.1 percent). Unused loan commitments increased by $25.9 billion (0.4 percent). 

For the 12 months ended June 30, total loans and leases increased by $337.6 billion 

(3.7 percent), while unused loan commitments rose by $274.8 billion (3.9 percent). The 

12-month growth rate for total loans and leases has slowed in each of the last three quarters. 

A year ago, the 12-month loan growth rate was 6.7 percent. The 12-month growth rate in 

unused loan commitments has slowed for six consecutive quarters. In 2015, unused commitments increased 6.6 percent.

Source: FDIC.

*Loan-loss reserves to noncurrent loans & leases.

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio*

 0

50

100

150

200

250

300

350

400

450

0

20

40

60

80

100

120

140

160

180

Noncurrent Loans & Leases ($ Billions)

Loan-Loss Reserves ($ Billions)

Coverage Ratio (Percent)

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

Chart 5

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

Source: FDIC.

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

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

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

for the quarter absent this change in accounting standards. 

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

-15

-10

-5

0

5

10

15

146

108

66 43

189

237

203

61

28

-6

-109

-210

-133 -107

-7

-126

67

24

134

-63

102 117

-37

7470 91

38

178

51

149

53

185

95

197

99

182

72

-8

161

196

-116-140

221*

-14

65

112

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

Chart 6
2 0 1 7  •  Volume 1 1  • Number 3

4 FDIC QUARTERLY

The Number of Banking 

Employees Rises 2.3 Percent 

Over the Past Year

The number of FDIC-insured commercial banks and savings institutions reporting financial 

results fell to 5,787 in the second quarter, from 5,856 in the first quarter. During the second 

quarter, three insured institutions failed, while 62 institutions were absorbed by mergers. 

No new reporters were added during the quarter. The number of institutions on the FDIC’s 

Problem Bank List declined for a 25th consecutive quarter, from 112 to 105. This is the 

smallest number of problem banks since March 31, 2008, and is almost 90 percent below 

the peak of 888 at the end of March 2011. The number of full-time equivalent employees rose by 11,663 (0.6 percent) to 2,093,278 during the quarter, which was 48,019 

higher than second quarter 2016 (2.3 percent). This is still 5.9 percent below the peak of 

2,223,383 employees in first quarter 2007.

Author:

Ross Waldrop

Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

0

10

20

30

40

50

> 15 Years

5-15 Years

3-5 Years

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

All Insured Call Report Filers

Percent

Source: FDIC.

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

33.3% 35.4%

2017

Chart 7

Source: FDIC.

Assets ($ Billions) Number

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

0

50

100

150

200

250

300

350

400

450

500

0

100

200

300

400

500

600

700

800

900

1,000

Number of Problem Banks 

$17

105

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

Problem Bank Assets

Chart 8
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2017** 2016** 2016 2015 2014 2013 2012

Return on assets (%) 1.09 1.02 1.04 1.04 1.01 1.07 1.00

Return on equity (%) 9.74 9.04 9.29 9.29 9.01 9.54 8.90

Core capital (leverage) ratio (%) 9.69 9.57 9.48 9.59 9.44 9.40 9.15

Noncurrent assets plus other real estate owned to assets (%) 0.75 0.91 0.86 0.97 1.20 1.63 2.20

Net charge-offs to loans (%) 0.49 0.45 0.47 0.44 0.49 0.69 1.10

Asset growth rate (%) 3.22 4.95 5.09 2.66 5.59 1.94 4.02

Net interest margin (%) 3.21 3.09 3.13 3.07 3.14 3.26 3.42

Net operating income growth (%) 12.39 -0.29 4.65 7.07 -0.73 12.82 17.76

Number of institutions reporting 5,787 6,058 5,913 6,182 6,509 6,812 7,083

Commercial banks 5,011 5,238 5,112 5,338 5,607 5,847 6,072

Savings institutions 776 820 801 844 902 965 1,011

Percentage of unprofitable institutions (%) 3.99 4.37 4.43 4.79 6.27 8.16 11.00

Number of problem institutions 105 147 123 183 291 467 651

Assets of problem institutions (in billions) $17 $29 $28 $47 $87 $153 $233

Number of failed institutions 6 3 5 8 18 24 51

Number of assisted institutions 0 0 0 0 0 0 0

* Excludes insured branches of foreign banks (IBAs).

** Through June 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending June 30.

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

(dollar figures in millions)  2nd Quarter

2017

1st Quarter

2017

2nd Quarter

2016

%Change 

16Q2-17Q2

Number of institutions reporting 5,787 5,856 6,058 -4.5

Total employees (full-time equivalent) 2,093,278 2,081,615 2,045,259 2.3

CONDITION DATA

Total assets $17,066,539 $16,965,756 $16,533,894 3.2

Loans secured by real estate 4,690,769 4,626,218 4,505,561 4.1

 1-4 Family residential mortgages 2,019,900 1,984,760 1,960,624 3.0

 Nonfarm nonresidential 1,365,118 1,346,570 1,278,251 6.8

 Construction and development 324,037 319,166 294,242 10.1

 Home equity lines 423,976 429,987 452,283 -6.3

Commercial & industrial loans 1,982,735 1,960,652 1,928,717 2.8

Loans to individuals 1,573,842 1,545,181 1,515,156 3.9

 Credit cards 779,715 756,135 745,935 4.5

Farm loans 79,451 75,188 79,095 0.5

Other loans & leases 1,133,639 1,091,946 1,094,336 3.6

Less: Unearned income 2,039 2,032 2,106 -3.2

Total loans & leases 9,458,397 9,297,154 9,120,760 3.7

Less: Reserve for losses 121,581 121,778 121,683 -0.1

Net loans and leases 9,336,816 9,175,376 8,999,076 3.8

Securities 3,568,978 3,583,985 3,420,967 4.3

Other real estate owned 9,629 10,369 13,154 -26.8

Goodwill and other intangibles 373,654 370,338 359,511 3.9

All other assets 3,777,462 3,825,687 3,741,186 1.0

Total liabilities and capital 17,066,539 16,965,756 16,533,894 3.2

Deposits 13,105,331 13,083,810 12,528,055 4.6

 Domestic office deposits 11,780,639 11,812,764 11,201,213 5.2

 Foreign office deposits 1,324,692 1,271,046 1,326,842 -0.2

Other borrowed funds 1,447,740 1,416,069 1,457,653 -0.7

Subordinated debt 77,428 79,764 88,573 -12.6

All other liabilities 500,630 489,217 589,200 -15.0

Total equity capital (includes minority interests) 1,935,408 1,896,895 1,870,413 3.5

 Bank equity capital 1,930,328 1,891,668 1,864,076 3.6

Loans and leases 30-89 days past due 57,686 60,463 58,089 -0.7

Noncurrent loans and leases 116,567 124,946 136,414 -14.5

Restructured loans and leases 62,959 64,046 69,619 -9.6

Mortgage-backed securities 2,072,550 2,034,504 1,924,317 7.7

Earning assets 15,406,822 15,325,899 14,821,151 4.0

FHLB Advances 565,660 522,554 545,673 3.7

Unused loan commitments 7,346,813 7,320,899 7,072,043 3.9

Trust assets 18,557,634 18,210,185 17,194,383 7.9

Assets securitized and sold 715,757 731,198 785,391 -8.9

Notional amount of derivatives 187,860,657 180,503,814 192,350,483 -2.3

INCOME DATA

First Half 

2017

First Half 

2016 %Change

2nd Quarter 

2017

2nd Quarter 

2016

%Change 

16Q2-17Q2

Total interest income $277,110 $251,861 10.0 $140,943 $126,868 11.1

Total interest expense 32,702 26,402 23.9 17,236 13,484 27.8

Net interest income 244,408 225,459 8.4 123,706 113,384 9.1

Provision for loan and lease losses 24,041 24,315 -1.1 12,036 11,763 2.3

Total noninterest income 129,124 126,505 2.1 66,794 66,140 1.0

Total noninterest expense 217,363 209,536 3.7 108,582 105,068 3.3

Securities gains (losses) 1,318 2,299 -42.7 772 1,363 -43.4

Applicable income taxes 41,140 37,478 9.8 22,327 20,172 10.7

Extraordinary gains, net* 16 -206 N/M 19 -196 N/M

Total net income (includes minority interests) 92,322 82,727 11.6 48,346 43,686 10.7

 Bank net income 92,143 82,552 11.6 48,258 43,588 10.7

Net charge-offs 22,731 20,250 12.3 11,254 10,119 11.2

Cash dividends 55,546 43,822 26.8 28,280 23,287 21.4

Retained earnings 36,597 38,730 -5.5 19,978 20,301 -1.6

Net operating income 91,392 81,320 12.4 47,785 42,934 11.3

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 7  •  Volume 1 1  • Number 3

6 FDIC QUARTERLY

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

Asset Concentration Groups*

SECOND 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 5,787 12 5 1,417 2,960 453 60 276 546 58

Commercial banks 5,011 11 5 1,403 2,652 117 47 248 477 51

Savings institutions 776 1 0 14 308 336 13 28 69 7

Total assets (in billions) $17,066.5 $505.5 $4,194.3 $280.8 $5,909.1 $359.4 $261.7 $48.0 $97.0 $5,410.8

Commercial banks 15,890.5 431.8 4,194.3 275.1 5,400.0 84.3 160.8 43.5 83.1 5,217.6

Savings institutions 1,176.1 73.7 0.0 5.7 509.1 275.1 100.9 4.5 14.0 193.2

Total deposits (in billions) 13,105.3 279.4 3,042.3 231.1 4,636.2 283.5 217.7 39.1 81.8 4,294.3

Commercial banks 12,172.1 223.2 3,042.3 228.2 4,252.9 70.6 131.6 36.0 70.3 4,117.0

Savings institutions 933.2 56.2 0.0 2.9 383.3 212.9 86.1 3.0 11.5 177.3

Bank net income (in millions) 48,258 2,569 9,866 865 15,904 826 732 356 209 16,932

Commercial banks 44,879 2,162 9,866 848 14,447 319 502 161 186 16,389

Savings institutions 3,379 406 0 17 1,457 507 230 195 23 543

Performance Ratios (annualized, %)

Yield on earning assets 3.67 12.35 2.85 4.23 3.88 2.89 3.99 3.01 3.87 3.26

Cost of funding earning assets 0.45 1.49 0.46 0.51 0.45 0.40 0.40 0.31 0.40 0.35

Net interest margin 3.22 10.86 2.39 3.72 3.43 2.49 3.59 2.70 3.47 2.92

Noninterest income to assets 1.57 2.60 1.89 0.67 1.27 1.14 1.11 7.50 0.95 1.61

Noninterest expense to assets 2.56 5.37 2.44 2.52 2.71 2.25 2.33 5.90 2.96 2.22

Loan and lease loss provision to assets 0.28 3.97 0.15 0.17 0.16 -0.02 0.48 0.04 0.16 0.19

Net operating income to assets 1.12 2.05 0.94 1.23 1.08 0.88 1.13 2.96 0.85 1.23

Pretax return on assets 1.66 3.21 1.41 1.46 1.53 1.34 1.79 4.05 1.07 1.86

Return on assets 1.14 2.05 0.95 1.24 1.09 0.93 1.13 2.96 0.86 1.25

Return on equity 10.11 13.01 9.56 10.87 9.09 8.46 11.02 19.77 7.33 11.26

Net charge-offs to loans and leases 0.48 4.07 0.51 0.20 0.22 0.00 0.59 0.19 0.24 0.39

Loan and lease loss provision to 

net charge-offs 106.94 123.35 83.67 129.97 106.39 -700.80 114.91 72.21 122.95 98.20

Efficiency ratio 56.32 42.13 60.57 60.56 61.06 64.03 49.86 59.04 70.59 51.24

% of unprofitable institutions 4.15 0.00 0.00 3.25 3.68 6.62 6.67 7.25 5.68 0.00

% of institutions with earnings gains 63.44 58.33 60.00 55.89 68.21 59.38 60.00 56.16 63.37 75.86

Structural Changes

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

Institutions absorbed by mergers 62 0 0 5 49 3 0 0 4 1

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

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2016 1.06 2.27 0.96 1.23 1.06 0.95 0.96 2.50 0.94 1.01

 2014 1.07 3.03 0.87 1.20 1.00 0.87 1.08 2.05 0.89 1.05

 2012 0.99 2.97 0.72 1.27 0.96 0.85 1.82 1.07 0.90 0.98

Net charge-offs to loans & leases (%) 2016 0.45 3.28 0.55 0.16 0.22 0.06 0.64 0.27 0.16 0.40

 2014 0.50 2.96 0.77 0.13 0.27 0.25 0.45 0.28 0.26 0.25

 2012 1.09 3.91 1.37 0.23 0.75 0.64 1.53 0.55 0.43 0.92

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

FDIC QUARTERLY 7

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

Asset Size Distribution Geographic Regions*

SECOND 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 5,787 1,471 3,564 631 112 9 709 693 1,232 1,464 1,253 436

Commercial banks 5,011 1,291 3,100 515 96 9 369 627 1,031 1,412 1,173 399

Savings institutions 776 180 464 116 16 0 340 66 201 52 80 37

Total assets (in billions) $17,066.5 $87.1 $1,159.0 $1,752.2 $5,429.6 $8,638.6 $3,137.3 $3,540.4 $3,887.5 $3,692.3 $1,045.1 $1,763.9

Commercial banks 15,890.5 76.9 986.0 1,427.1 4,761.8 8,638.6 2,693.6 3,443.4 3,776.4 3,636.0 913.6 1,427.4

Savings institutions 1,176.1 10.1 173.0 325.1 667.8 0.0 443.6 97.0 111.1 56.3 131.5 336.5

Total deposits (in billions) 13,105.3 72.8 965.0 1,390.2 4,145.9 6,531.5 2,358.4 2,779.4 2,900.2 2,787.8 856.6 1,422.9

Commercial banks 12,172.1 64.9 827.9 1,142.3 3,605.5 6,531.5 2,024.5 2,701.0 2,823.4 2,742.7 747.8 1,132.7

Savings institutions 933.2 7.8 137.1 247.9 540.4 0.0 333.8 78.4 76.8 45.1 108.8 290.2

Bank net income (in millions) 48,258 208 3,206 5,466 15,625 23,754 7,422 10,591 10,201 9,959 3,292 6,793

Commercial banks 44,879 178 2,744 4,721 13,483 23,754 6,577 10,461 9,863 9,824 2,870 5,285

Savings institutions 3,379 30 462 745 2,141 0 846 130 338 135 422 1,508

Performance Ratios (annualized, %)

Yield on earning assets 3.67 4.17 4.23 4.14 4.12 3.21 3.80 3.77 2.95 3.80 4.08 4.33

Cost of funding earning assets 0.45 0.45 0.48 0.48 0.51 0.40 0.56 0.36 0.38 0.53 0.37 0.45

Net interest margin 3.22 3.72 3.74 3.65 3.61 2.81 3.24 3.41 2.56 3.26 3.70 3.88

Noninterest income to assets 1.57 1.23 1.18 1.38 1.54 1.69 1.37 1.58 1.90 1.27 1.49 1.88

Noninterest expense to assets 2.56 3.41 3.12 2.79 2.63 2.38 2.53 2.51 2.55 2.44 2.98 2.71

Loan and lease loss provision to assets 0.28 0.12 0.14 0.21 0.49 0.19 0.40 0.32 0.10 0.25 0.21 0.50

Net operating income to assets 1.12 0.95 1.10 1.24 1.15 1.09 0.95 1.19 1.06 1.05 1.26 1.53

Pretax return on assets 1.66 1.14 1.42 1.78 1.71 1.64 1.36 1.81 1.55 1.56 1.71 2.32

Return on assets 1.14 0.96 1.11 1.26 1.16 1.10 0.95 1.20 1.06 1.08 1.27 1.54

Return on equity 10.11 7.38 9.87 10.77 9.46 10.51 7.68 9.89 10.25 10.83 11.42 12.77

Net charge-offs to loans and leases 0.48 0.19 0.13 0.22 0.72 0.44 0.60 0.57 0.25 0.48 0.27 0.66

Loan and lease loss provision to 

net charge-offs 106.94 105.32 152.87 138.96 112.70 91.87 117.15 97.15 87.08 100.83 121.94 125.01

Efficiency ratio 56.32 72.94 66.71 58.03 53.87 55.97 58.29 53.74 60.11 56.84 60.32 48.70

% of unprofitable institutions 4.15 9.52 2.58 1.11 0.89 0.00 4.94 5.63 4.38 3.01 4.07 3.90

% of institutions with earnings gains 63.44 53.84 64.34 77.34 81.25 77.78 67.98 67.82 63.88 56.08 63.37 72.71

Structural Changes

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

Institutions absorbed by mergers 62 17 35 10 0 0 11 13 16 7 12 3

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

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2016 1.06 0.92 1.09 1.06 1.13 1.03 0.90 0.96 1.01 1.13 1.10 1.54

 2014 1.07 0.85 1.01 1.01 1.16 1.03 0.95 0.92 1.05 1.14 1.17 1.46

 2012 0.99 0.67 0.80 1.42 1.02 0.91 0.85 0.72 0.90 1.02 1.02 2.09

Net charge-offs to loans & leases (%) 2016 0.45 0.19 0.12 0.21 0.62 0.46 0.46 0.53 0.27 0.52 0.31 0.54

 2014 0.50 0.19 0.23 0.32 0.70 0.46 0.75 0.38 0.35 0.64 0.22 0.48

 2012 1.09 0.44 0.65 0.76 1.29 1.14 1.30 1.11 0.83 1.34 0.56 0.92

* See Table V-A (page 11) for explanations.
2 0 1 7  •  Volume 1 1  • Number 3

8 FDIC QUARTERLY

TABLE IV-A. First Half 2017, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST HALF

(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 5,787 12 5 1,417 2,960 453 60 276 546 58

Commercial banks 5,011 11 5 1,403 2,652 117 47 248 477 51

Savings institutions 776 1 0 14 308 336 13 28 69 7

Total assets (in billions) $17,066.5 $505.5 $4,194.3 $280.8 $5,909.1 $359.4 $261.7 $48.0 $97.0 $5,410.8

Commercial banks 15,890.5 431.8 4,194.3 275.1 5,400.0 84.3 160.8 43.5 83.1 5,217.6

Savings institutions 1,176.1 73.7 0.0 5.7 509.1 275.1 100.9 4.5 14.0 193.2

Total deposits (in billions) 13,105.3 279.4 3,042.3 231.1 4,636.2 283.5 217.7 39.1 81.8 4,294.3

Commercial banks 12,172.1 223.2 3,042.3 228.2 4,252.9 70.6 131.6 36.0 70.3 4,117.0

Savings institutions 933.2 56.2 0.0 2.9 383.3 212.9 86.1 3.0 11.5 177.3

Bank net income (in millions) 92,143 5,161 19,482 1,682 30,118 1,629 1,425 676 430 31,541

Commercial banks 85,581 4,424 19,482 1,635 27,307 582 1,002 307 386 30,456

Savings institutions 6,562 737 0 47 2,811 1,047 422 369 44 1,085

Performance Ratios (annualized, %)

Yield on earning assets 3.64 12.26 2.82 4.16 3.81 3.09 3.93 2.97 3.84 3.22

Cost of funding earning assets 0.43 1.42 0.43 0.49 0.43 0.45 0.38 0.31 0.39 0.33

Net interest margin 3.21 10.83 2.39 3.67 3.38 2.64 3.54 2.67 3.45 2.90

Noninterest income to assets 1.53 2.47 1.88 0.65 1.25 1.12 1.06 7.33 0.95 1.52

Noninterest expense to assets 2.57 5.29 2.45 2.52 2.72 2.34 2.29 5.93 2.93 2.25

Loan and lease loss provision to assets 0.28 3.90 0.17 0.14 0.16 0.01 0.47 0.04 0.12 0.19

Net operating income to assets 1.08 2.05 0.94 1.20 1.03 0.88 1.10 2.81 0.88 1.15

Pretax return on assets 1.58 3.20 1.36 1.42 1.46 1.35 1.75 3.82 1.10 1.72

Return on assets 1.09 2.05 0.95 1.21 1.03 0.93 1.10 2.82 0.90 1.16

Return on equity 9.74 13.23 9.51 10.68 8.71 8.48 10.84 18.87 7.63 10.57

Net charge-offs to loans and leases 0.49 3.97 0.58 0.15 0.21 0.05 0.62 0.15 0.19 0.40

Loan and lease loss provision to 

net charge-offs 105.76 123.48 82.63 145.16 110.33 18.60 108.58 95.56 118.73 93.95

Efficiency ratio 57.49 41.96 61.05 61.51 62.21 64.31 49.91 60.63 70.60 53.43

% of unprofitable institutions 3.99 0.00 0.00 2.61 3.75 7.06 6.67 6.16 5.49 0.00

% of institutions with earnings gains 62.09 50.00 80.00 52.43 68.95 55.63 58.33 47.10 61.36 81.03

Condition Ratios (%)

Earning assets to total assets 90.28 91.52 87.53 93.38 90.99 94.62 97.45 92.03 92.90 90.64

Loss allowance to:

Loans and leases 1.29 4.38 1.37 1.41 1.07 0.76 0.98 1.49 1.30 1.17

Noncurrent loans and leases 104.30 328.88 104.85 134.82 114.19 28.99 119.48 119.83 110.23 74.72

Noncurrent assets plus

other real estate owned to assets 0.75 1.06 0.50 0.83 0.76 1.63 0.62 0.50 0.90 0.83

Equity capital ratio 11.31 15.91 9.90 11.47 12.00 11.15 10.28 15.24 11.88 11.23

Core capital (leverage) ratio 9.69 13.41 8.77 11.02 10.23 11.46 10.33 14.39 11.71 9.19

Common equity tier 1 capital ratio 13.15 12.59 13.45 14.54 12.45 21.36 18.30 31.89 20.18 12.99

Tier 1 risk-based capital ratio 13.23 12.71 13.51 14.55 12.55 21.38 18.51 31.91 20.20 13.06

Total risk-based capital ratio 14.65 14.87 14.92 15.68 13.89 22.26 19.38 32.76 21.33 14.58

Net loans and leases to deposits 71.24 137.68 49.13 81.42 88.27 74.68 85.14 32.90 64.64 63.20

Net loans to total assets 54.71 76.09 35.64 67.02 69.25 58.91 70.82 26.80 54.51 50.16

Domestic deposits to total assets 69.03 54.05 47.38 82.31 78.16 78.87 83.17 81.45 84.32 74.83

Structural Changes

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

Institutions absorbed by mergers 116 0 0 14 88 6 0 1 6 1

Failed institutions 6 0 0 0 4 1 0 0 1 0

PRIOR FIRST HALVES

(The way it was...)

Number of institutions 2016 6,058 13 4 1,466 3,029 491 63 324 605 63

 2014 6,656 16 4 1,493 3,300 569 56 391 765 62

 2012 7,245 18 5 1,542 3,636 712 50 402 815 65

Total assets (in billions) 2016 $16,533.9 $501.9 $3,966.6 $270.7 $5,986.3 $396.2 $200.8 $56.4 $104.1 $5,050.7

 2014 15,171.9 601.2 3,802.2 250.6 5,059.2 458.5 212.7 63.1 138.7 4,585.7

 2012 14,030.8 567.7 3,710.9 220.4 4,161.1 823.9 96.9 64.5 144.4 4,241.1

Return on assets (%) 2016 1.02 2.33 0.90 1.22 1.01 0.96 1.00 2.49 0.93 0.97

 2014 1.04 3.25 0.82 1.15 0.98 0.82 1.06 1.96 0.86 0.99

 2012 0.99 3.14 0.76 1.27 0.90 0.84 1.81 1.18 0.92 1.00

Net charge-offs to loans & leases (%) 2016 0.45 3.27 0.57 0.13 0.22 0.06 0.65 0.17 0.15 0.40

 2014 0.51 2.98 0.74 0.10 0.27 0.26 0.50 0.21 0.21 0.30

 2012 1.12 3.95 1.43 0.20 0.76 0.80 1.54 0.37 0.38 0.96

Noncurrent assets plus 

OREO to assets (%) 2016 0.91 0.87 0.66 0.78 0.93 1.80 0.86 0.61 1.02 1.04

 2014 1.38 0.78 0.92 0.90 1.42 2.10 0.89 0.84 1.48 1.78

 2012 2.40 1.12 1.47 1.33 2.64 2.29 1.34 1.20 1.66 3.31

Equity capital ratio (%) 2016 11.27 14.82 9.95 11.58 11.88 11.60 10.24 15.44 11.98 11.18

 2014 11.25 14.61 9.38 11.26 12.05 11.71 9.83 13.99 11.63 11.45

 2012 11.32 14.75 9.04 11.49 11.91 10.75 9.69 14.67 11.51 12.38

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

FDIC QUARTERLY 9

TABLE IV-A. First Half 2017, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST HALF

(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 5,787 1,471 3,564 631 112 9 709 693 1,232 1,464 1,253 436

Commercial banks 5,011 1,291 3,100 515 96 9 369 627 1,031 1,412 1,173 399

Savings institutions 776 180 464 116 16 0 340 66 201 52 80 37

Total assets (in billions) $17,066.5 $87.1 $1,159.0 $1,752.2 $5,429.6 $8,638.6 $3,137.3 $3,540.4 $3,887.5 $3,692.3 $1,045.1 $1,763.9

Commercial banks 15,890.5 76.9 986.0 1,427.1 4,761.8 8,638.6 2,693.6 3,443.4 3,776.4 3,636.0 913.6 1,427.4

Savings institutions 1,176.1 10.1 173.0 325.1 667.8 0.0 443.6 97.0 111.1 56.3 131.5 336.5

Total deposits (in billions) 13,105.3 72.8 965.0 1,390.2 4,145.9 6,531.5 2,358.4 2,779.4 2,900.2 2,787.8 856.6 1,422.9

Commercial banks 12,172.1 64.9 827.9 1,142.3 3,605.5 6,531.5 2,024.5 2,701.0 2,823.4 2,742.7 747.8 1,132.7

Savings institutions 933.2 7.8 137.1 247.9 540.4 0.0 333.8 78.4 76.8 45.1 108.8 290.2

Bank net income (in millions) 92,143 409 6,210 10,179 29,824 45,521 14,544 19,273 19,558 19,772 6,218 12,778

Commercial banks 85,581 351 5,339 8,665 25,706 45,521 12,870 18,972 18,919 19,463 5,433 9,924

Savings institutions 6,562 58 872 1,514 4,117 0 1,674 300 639 309 785 2,854

Performance Ratios (annualized, %)

Yield on earning assets 3.64 4.12 4.18 4.09 4.07 3.18 3.75 3.76 2.91 3.75 4.01 4.27

Cost of funding earning assets 0.43 0.44 0.47 0.47 0.49 0.37 0.54 0.35 0.35 0.51 0.36 0.43

Net interest margin 3.21 3.68 3.70 3.63 3.58 2.80 3.20 3.41 2.56 3.24 3.66 3.84

Noninterest income to assets 1.53 1.22 1.16 1.28 1.50 1.65 1.35 1.48 1.86 1.30 1.40 1.77

Noninterest expense to assets 2.57 3.40 3.11 2.77 2.64 2.41 2.53 2.58 2.57 2.44 2.96 2.68

Loan and lease loss provision to assets 0.28 0.12 0.12 0.21 0.49 0.19 0.36 0.34 0.12 0.25 0.20 0.50

Net operating income to assets 1.08 0.94 1.08 1.17 1.10 1.05 0.93 1.09 1.02 1.05 1.21 1.45

Pretax return on assets 1.58 1.11 1.38 1.67 1.63 1.55 1.33 1.62 1.46 1.55 1.62 2.21

Return on assets 1.09 0.94 1.09 1.19 1.11 1.06 0.93 1.10 1.02 1.08 1.21 1.46

Return on equity 9.74 7.32 9.67 10.18 9.13 10.13 7.61 9.07 9.90 10.85 10.95 12.15

Net charge-offs to loans and leases 0.49 0.17 0.12 0.21 0.71 0.46 0.56 0.58 0.29 0.49 0.27 0.66

Loan and lease loss provision to 

net charge-offs 105.76 120.57 158.62 141.88 113.88 88.39 114.64 102.17 86.05 96.69 117.62 123.98

Efficiency ratio 57.49 73.39 67.40 59.24 54.84 57.37 59.21 56.37 61.45 56.85 61.45 49.31

% of unprofitable institutions 3.99 8.77 2.69 0.79 0.89 0.00 4.94 5.92 4.38 2.80 3.43 3.90

% of institutions with earnings gains 62.09 51.33 62.96 78.61 80.36 88.89 70.38 69.26 61.20 53.89 59.78 73.85

Condition Ratios (%)

Earning assets to total assets 90.28 92.57 93.07 92.40 91.01 88.99 89.61 89.72 89.78 89.69 92.07 93.81

Loss allowance to:

Loans and leases 1.29 1.41 1.28 1.13 1.37 1.26 1.26 1.34 1.19 1.32 1.19 1.39

Noncurrent loans and leases 104.30 110.48 135.70 129.77 124.46 84.13 116.12 95.72 95.14 87.80 108.53 192.15

Noncurrent assets plus

other real estate owned to assets 0.75 1.06 0.90 0.74 0.71 0.75 0.67 0.88 0.67 0.86 0.86 0.48

Equity capital ratio 11.31 13.10 11.36 11.83 12.32 10.55 12.46 12.21 10.31 10.08 11.32 12.23

Core capital (leverage) ratio 9.69 12.86 11.08 10.66 10.50 8.77 10.26 9.67 9.18 8.96 10.20 11.10

Common equity tier 1 capital ratio 13.15 20.49 15.36 13.61 13.27 12.57 13.21 12.91 13.14 12.27 13.15 15.38

Tier 1 risk-based capital ratio 13.23 20.52 15.40 13.62 13.45 12.61 13.29 13.02 13.19 12.33 13.25 15.53

Total risk-based capital ratio 14.65 21.59 16.50 14.61 14.95 14.12 14.68 14.44 14.43 14.21 14.37 16.61

Net loans and leases to deposits 71.24 70.32 80.70 87.23 78.25 62.01 74.59 73.04 65.20 68.84 78.04 75.12

Net loans to total assets 54.71 58.79 67.19 69.20 59.75 46.88 56.08 57.34 48.64 51.97 63.97 60.60

Domestic deposits to total assets 69.03 83.61 83.23 79.11 72.62 62.67 67.74 75.95 65.16 58.73 81.90 79.87

Structural Changes

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

Institutions absorbed by mergers 116 30 71 15 0 0 16 20 33 21 20 6

Failed institutions 6 2 2 2 0 0 1 0 3 0 1 1

PRIOR FIRST HALVES

(The way it was...)

Number of institutions 2016 6,058 1,637 3,690 619 102 10 739 743 1,305 1,519 1,292 460

 2014 6,656 1,975 4,007 565 101 8 823 837 1,444 1,629 1,398 525

 2012 7,245 2,341 4,244 553 100 7 898 929 1,539 1,754 1,524 601

Total assets (in billions) 2016 $16,533.9 $96.7 $1,173.6 $1,724.0 $4,897.6 $8,641.9 $3,127.7 $3,467.9 $3,692.0 $3,604.0 $976.1 $1,666.2

 2014 15,171.9 116.3 1,234.6 1,492.7 4,761.2 7,567.1 3,047.7 3,049.5 3,480.2 3,310.6 893.3 1,390.7

 2012 14,030.8 135.4 1,274.7 1,425.8 4,515.3 6,679.7 2,877.3 2,934.7 3,192.6 3,000.2 831.6 1,194.5

Return on assets (%) 2016 1.02 0.92 1.06 1.06 1.08 0.97 0.85 0.92 0.97 1.09 1.07 1.45

 2014 1.04 0.82 0.96 1.01 1.17 0.98 0.98 0.90 0.92 1.14 1.14 1.44

 2012 0.99 0.70 0.81 1.24 1.07 0.93 0.91 0.78 0.88 1.05 1.08 1.85

Net charge-offs to loans & leases (%) 2016 0.45 0.15 0.11 0.20 0.62 0.47 0.47 0.53 0.27 0.53 0.31 0.53

 2014 0.51 0.19 0.21 0.28 0.73 0.47 0.75 0.42 0.37 0.63 0.21 0.49

 2012 1.12 0.39 0.61 0.76 1.35 1.19 1.31 1.19 0.87 1.39 0.56 0.90

Noncurrent assets plus 

OREO to assets (%) 2016 0.91 1.17 1.05 0.89 0.83 0.94 0.73 1.08 0.85 1.10 1.05 0.55

 2014 1.38 1.62 1.61 1.61 0.93 1.58 0.98 1.90 1.26 1.67 1.34 0.76

 2012 2.40 2.21 2.73 2.87 1.60 2.79 1.58 3.63 2.19 2.56 2.31 1.65

Equity capital ratio (%) 2016 11.27 12.97 11.47 11.79 12.21 10.60 12.01 12.37 10.31 10.15 11.21 12.22

 2014 11.25 12.15 11.09 11.90 12.72 10.20 11.91 12.42 9.86 10.41 11.16 12.76

 2012 11.32 11.97 10.90 11.92 12.81 10.26 12.34 12.21 9.02 11.04 11.03 13.78

* See Table V-A (page 11) for explanations.
2 0 1 7  •  Volume 1 1  • Number 3

10 FDIC QUARTERLY

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

Asset Concentration Groups*

June 30, 2017 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.63 0.17 0.87 0.61 0.41 0.73 0.37 1.29 1.05 0.97

Construction and development 0.32 0.00 0.44 0.47 0.30 0.50 0.55 1.60 0.77 0.33

Nonfarm nonresidential 0.23 0.00 0.29 0.50 0.22 0.37 0.29 0.79 0.80 0.18

Multifamily residential real estate 0.11 0.00 0.05 0.25 0.13 0.10 0.13 3.74 0.59 0.05

Home equity loans 0.63 0.00 1.02 0.39 0.46 0.49 0.34 0.55 0.55 0.73

Other 1-4 family residential 1.07 0.19 1.24 1.00 0.75 0.81 0.38 1.55 1.30 1.49

Commercial and industrial loans 0.27 0.89 0.23 0.88 0.27 0.43 0.22 0.99 1.10 0.26

Loans to individuals 1.31 1.49 1.06 1.24 1.13 0.97 0.73 1.76 1.74 1.54

Credit card loans 1.27 1.50 1.04 0.86 0.93 1.07 0.71 0.72 2.30 1.15

Other loans to individuals 1.34 1.33 1.09 1.28 1.15 0.96 0.74 1.84 1.72 1.77

All other loans and leases (including farm) 0.25 0.47 0.40 0.62 0.17 0.26 0.04 0.64 0.46 0.15

Total loans and leases 0.61 1.46 0.66 0.60 0.40 0.69 0.55 1.11 0.94 0.76

Percent of Loans Noncurrent**

All real estate loans 1.68 0.53 2.38 1.01 0.96 2.85 1.32 1.42 1.21 2.82

Construction and development 0.62 0.00 0.34 0.71 0.63 0.59 3.85 2.02 0.79 0.59

Nonfarm nonresidential 0.65 0.00 0.58 1.01 0.65 0.86 3.48 1.37 1.42 0.56

Multifamily residential real estate 0.15 0.00 0.07 0.33 0.17 0.46 0.74 0.43 0.99 0.12

Home equity loans 2.38 0.86 4.01 0.43 1.25 1.44 1.91 0.54 0.50 3.49

Other 1-4 family residential 2.74 0.58 3.26 0.86 1.59 3.34 1.06 1.53 1.23 4.03

Commercial and industrial loans 1.08 0.85 1.11 1.45 1.14 0.60 0.56 1.03 1.07 0.98

Loans to individuals 0.85 1.36 0.85 0.51 0.72 0.42 0.50 0.83 1.56 0.62

Credit card loans 1.22 1.39 1.07 0.23 0.90 0.93 1.20 0.89 1.07 1.07

Other loans to individuals 0.50 0.65 0.39 0.53 0.70 0.37 0.33 0.83 1.57 0.36

All other loans and leases (including farm) 0.24 0.42 0.16 1.04 0.33 0.22 1.49 0.41 0.51 0.14

Total loans and leases 1.23 1.33 1.31 1.05 0.93 2.61 0.82 1.25 1.18 1.56

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.03 0.18 0.04 0.04 0.03 0.02 0.02 0.06 0.05 0.03

Construction and development -0.05 0.00 0.00 -0.04 -0.05 0.03 -0.24 0.15 -0.02 -0.08

Nonfarm nonresidential 0.03 0.00 -0.01 0.03 0.03 0.06 -0.02 0.08 0.04 0.01

Multifamily residential real estate 0.00 0.00 -0.01 0.10 0.00 0.02 0.00 0.06 0.11 -0.04

Home equity loans 0.17 -0.57 0.26 0.08 0.13 -0.03 0.06 0.03 0.06 0.20

Other 1-4 family residential 0.03 0.21 0.02 0.05 0.05 0.02 0.02 0.03 0.07 0.01

Commercial and industrial loans 0.36 2.82 0.25 0.37 0.41 0.30 0.51 0.15 0.36 0.28

Loans to individuals 2.27 4.03 2.81 0.48 1.02 1.03 1.01 0.47 0.50 1.71

Credit card loans 3.66 4.13 3.33 1.85 3.19 3.89 2.82 1.39 1.00 3.20

Other loans to individuals 0.90 2.01 1.81 0.36 0.71 0.74 0.57 0.39 0.48 0.84

All other loans and leases (including farm) 0.12 0.53 0.03 0.28 0.18 0.08 0.03 0.70 1.13 0.12

Total loans and leases 0.49 3.97 0.58 0.15 0.21 0.05 0.62 0.15 0.19 0.40

Loans Outstanding (in billions)

All real estate loans $4,690.8 $0.3 $563.8 $117.8 $2,539.7 $193.0 $58.2 $9.2 $41.0 $1,167.9

Construction and development 324.0 0.0 14.6 6.9 238.3 5.8 0.3 0.7 2.5 54.9

Nonfarm nonresidential 1,365.1 0.0 49.9 32.1 988.4 17.2 4.0 3.1 9.8 260.6

Multifamily residential real estate 398.5 0.0 74.6 3.8 266.1 4.8 0.7 0.2 1.2 47.1

Home equity loans 424.0 0.0 58.7 2.3 204.6 10.8 4.5 0.3 1.6 141.1

Other 1-4 family residential 2,019.9 0.3 318.5 28.8 799.0 153.7 48.4 4.3 22.4 644.6

Commercial and industrial loans 1,982.7 15.3 325.7 22.0 958.9 5.8 9.5 1.7 4.4 639.4

Loans to individuals 1,573.8 385.9 263.5 6.6 324.5 4.7 107.7 1.5 4.6 474.8

Credit card loans 779.7 366.7 176.7 0.6 39.4 0.4 20.7 0.1 0.1 174.9

Other loans to individuals 794.1 19.2 86.8 6.0 285.2 4.3 86.9 1.4 4.5 299.9

All other loans and leases (including farm) 1,213.1 0.8 363.1 44.5 314.2 9.9 12.0 0.7 3.6 464.2

Total loans and leases (plus unearned income) 9,460.4 402.3 1,516.1 191.0 4,137.3 213.4 187.3 13.1 53.6 2,746.4

Memo: Other Real Estate Owned (in millions)

All other real estate owned 9,628.9 0.2 554.7 336.6 6,256.9 265.1 98.9 73.4 244.7 1,798.4

Construction and development 2,965.0 0.0 3.2 88.0 2,449.9 58.1 9.4 36.9 76.6 242.8

Nonfarm nonresidential 2,605.8 0.0 53.2 109.2 1,959.0 32.1 15.5 19.2 78.4 339.1

Multifamily residential real estate 153.2 0.0 1.1 14.4 117.4 5.4 0.0 0.4 4.4 10.1

1-4 family residential 3,303.6 0.2 371.1 62.7 1,608.7 134.6 54.5 16.3 76.4 979.2

Farmland 154.4 0.0 0.0 62.3 73.6 1.6 0.2 0.4 8.8 7.4

GNMA properties 423.7 0.0 105.0 0.0 48.3 33.3 19.3 0.2 0.1 217.5

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

June 30, 2017 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.63 1.03 0.53 0.29 0.50 0.95 0.45 0.73 0.66 0.93 0.55 0.27

Construction and development 0.32 0.63 0.45 0.33 0.25 0.32 0.35 0.31 0.24 0.42 0.31 0.33

Nonfarm nonresidential 0.23 0.84 0.35 0.19 0.23 0.16 0.28 0.20 0.28 0.19 0.26 0.13

Multifamily residential real estate 0.11 0.38 0.26 0.12 0.13 0.04 0.13 0.04 0.08 0.13 0.17 0.16

Home equity loans 0.63 0.67 0.44 0.38 0.47 0.81 0.44 0.74 0.72 0.70 0.45 0.29

Other 1-4 family residential 1.07 1.42 0.79 0.46 0.85 1.45 0.75 1.21 1.01 1.56 1.13 0.42

Commercial and industrial loans 0.27 1.08 0.60 0.34 0.24 0.25 0.17 0.26 0.28 0.28 0.40 0.33

Loans to individuals 1.31 1.74 1.27 1.27 1.23 1.39 1.07 1.80 0.95 1.24 0.91 1.34

Credit card loans 1.27 4.99 2.03 2.04 1.39 1.08 1.05 1.45 1.03 1.11 0.70 1.89

Other loans to individuals 1.34 1.68 1.22 1.08 1.02 1.67 1.09 2.14 0.92 1.44 1.01 0.92

All other loans and leases (including farm) 0.25 0.65 0.54 0.22 0.18 0.26 0.07 0.14 0.37 0.32 0.20 0.28

Total loans and leases 0.61 0.92 0.48 0.36 0.57 0.74 0.48 0.74 0.56 0.74 0.50 0.51

Percent of Loans Noncurrent** 

All real estate loans 1.68 1.30 0.93 0.79 1.30 2.78 1.30 2.16 1.91 2.32 1.06 0.54

Construction and development 0.62 0.99 1.21 0.59 0.35 0.60 0.71 1.00 0.52 0.42 0.48 0.51

Nonfarm nonresidential 0.65 1.53 0.85 0.63 0.63 0.55 0.79 0.63 0.76 0.57 0.63 0.47

Multifamily residential real estate 0.15 0.91 0.43 0.20 0.09 0.11 0.15 0.16 0.16 0.16 0.27 0.08

Home equity loans 2.38 0.58 0.59 0.63 1.32 3.72 2.27 3.02 2.28 2.73 1.11 0.58

Other 1-4 family residential 2.74 1.33 1.01 1.22 2.25 3.95 2.06 3.32 2.88 3.79 2.06 0.65

Commercial and industrial loans 1.08 1.62 1.20 1.38 1.18 0.93 1.09 0.96 0.86 1.24 1.62 1.13

Loans to individuals 0.85 0.82 0.73 0.72 1.00 0.72 0.92 0.99 0.53 0.84 0.82 0.87

Credit card loans 1.22 2.59 1.45 1.70 1.34 1.05 1.10 1.28 1.02 1.10 1.21 1.67

Other loans to individuals 0.50 0.79 0.69 0.47 0.58 0.42 0.64 0.70 0.33 0.44 0.65 0.26

All other loans and leases (including farm) 0.24 1.05 0.81 0.71 0.29 0.14 0.26 0.14 0.17 0.32 0.35 0.41

Total loans and leases 1.23 1.27 0.94 0.87 1.10 1.50 1.08 1.40 1.25 1.50 1.09 0.72

Percent of Loans Charged-Off (net, YTD) 

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

Construction and development -0.05 0.07 -0.01 -0.03 -0.07 -0.08 -0.03 -0.02 -0.05 -0.10 0.00 -0.15

Nonfarm nonresidential 0.03 -0.02 0.03 0.02 0.06 -0.02 0.06 0.03 0.02 -0.01 0.03 0.01

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

Home equity loans 0.17 0.02 0.06 0.08 0.13 0.22 0.17 0.24 0.17 0.16 0.02 0.00

Other 1-4 family residential 0.03 0.08 0.04 0.04 0.05 0.01 0.07 0.03 0.03 0.01 0.02 0.00

Commercial and industrial loans 0.36 0.39 0.31 0.34 0.50 0.26 0.41 0.38 0.24 0.28 0.46 0.54

Loans to individuals 2.27 0.89 0.87 1.85 2.53 2.11 2.31 2.35 1.76 2.49 1.51 2.43

Credit card loans 3.66 17.65 6.13 4.89 3.92 3.24 3.18 4.01 3.41 3.40 2.79 4.69

Other loans to individuals 0.90 0.58 0.50 0.86 0.71 1.10 0.86 0.73 1.15 1.18 0.92 0.59

All other loans and leases (including farm) 0.12 0.26 0.31 0.26 0.12 0.09 0.11 0.13 0.12 0.09 0.30 0.10

Total loans and leases 0.49 0.17 0.12 0.21 0.71 0.46 0.56 0.58 0.29 0.49 0.27 0.66

Loans Outstanding (in billions) 

All real estate loans $4,690.8 $35.4 $608.1 $892.6 $1,482.5 $1,672.1 $952.1 $922.8 $975.7 $878.5 $428.1 $533.7

Construction and development 324.0 2.0 55.9 84.6 110.3 71.3 58.6 59.8 55.1 50.8 65.4 34.3

Nonfarm nonresidential 1,365.1 8.8 231.5 368.5 463.5 292.8 309.5 275.7 211.9 194.2 178.1 195.7

Multifamily residential real estate 398.5 1.0 32.7 94.1 149.9 120.8 142.5 45.0 104.7 34.7 18.5 53.1

Home equity loans 424.0 0.9 24.5 46.4 143.1 209.1 82.0 108.4 105.3 79.1 20.5 28.7

Other 1-4 family residential 2,019.9 16.0 214.0 277.0 600.1 912.8 355.1 421.4 475.7 428.9 128.5 210.4

Commercial and industrial loans 1,982.7 6.0 99.6 192.6 725.6 958.9 301.2 484.9 432.4 405.0 133.3 226.1

Loans to individuals 1,573.8 3.4 31.4 78.0 737.4 723.6 341.4 390.9 217.7 321.6 63.5 238.7

Credit card loans 779.7 0.1 1.9 15.7 415.5 346.5 212.4 191.4 60.4 192.5 19.7 103.3

Other loans to individuals 794.1 3.4 29.5 62.2 321.9 377.2 129.0 199.5 157.2 129.1 43.8 135.4

All other loans and leases (including farm) 1,213.1 7.1 50.1 63.8 344.3 747.8 187.5 259.3 288.2 340.2 51.9 85.9

Total loans and leases 

(plus unearned income) 9,460.4 51.9 789.3 1,227.1 3,289.8 4,102.4 1,782.1 2,057.8 1,914.0 1,945.3 676.8 1,084.4

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 9,628.9 263.4 2,935.8 2,198.3 2,139.2 2,092.2 1,721.5 2,213.9 1,791.5 1,736.3 1,518.6 647.2

Construction and development 2,965.0 67.4 1,336.4 865.8 424.2 271.2 298.5 813.0 387.8 593.1 645.7 226.9

Nonfarm nonresidential 2,605.8 83.3 936.6 696.2 579.3 310.5 456.3 517.8 486.5 410.8 527.4 207.1

Multifamily residential real estate 153.2 10.7 60.9 37.7 19.6 24.3 39.9 31.9 19.6 32.9 18.6 10.4

1-4 family residential 3,303.6 80.9 518.3 528.4 993.0 1,183.1 837.3 790.6 738.6 486.7 276.8 173.5

Farmland 154.4 21.0 83.0 43.0 4.7 2.7 8.7 28.3 24.3 40.6 42.0 10.5

GNMA properties 423.7 0.2 0.6 27.2 118.3 277.5 80.8 32.3 134.7 149.2 8.2 18.6

* 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 3

12 FDIC QUARTERLY

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

2nd 

Quarter 

2017

1st 

Quarter 

2017

4th

Quarter 

2016

3rd

Quarter 

2016

2nd 

Quarter 

2016

% 

Change 

16Q2-

17Q2

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 1,422 1,418 1,426 1,441 1,446 -1.7 54 832 424 103 9

Total assets of institutions reporting derivatives $15,449,008 $15,362,205 $15,183,854 $15,189,010 $15,033,255 2.8 $4,000 $356,503 $1,317,982 $5,131,935 $8,638,588

Total deposits of institutions reporting derivatives 11,789,663 11,768,685 11,589,438 11,513,889 11,313,864 4.2 3,362 294,422 1,047,876 3,912,518 6,531,486

Total derivatives 187,860,657 180,503,814 166,795,927 179,902,250 192,350,483 -2.3 235 22,763 129,604 50,728,682 136,979,373

Derivative Contracts by Underlying Risk Exposure 

Interest rate 139,826,463 132,697,634 124,479,973 132,992,944 143,794,696 -2.8 223 22,486 124,446 43,185,764 96,493,545

Foreign exchange* 38,856,459 38,313,393 33,277,647 36,299,774 37,701,788 3.1 0 1 3,964 7,013,717 31,838,777

Equity 2,908,473 2,839,056 2,487,763 2,734,807 2,672,364 8.8 0 0 153 145,796 2,762,524

Commodity & other (excluding credit derivatives) 1,334,384 1,349,981 1,257,180 1,312,260 1,328,302 0.5 0 0 42 89,647 1,244,695

Credit 4,934,591 5,303,594 5,293,365 6,562,465 6,853,333 -28.0 0 1 999 293,758 4,639,833

Total 187,851,359 180,495,622 166,795,927 179,902,250 192,350,483 -2.3 41 13,703 129,560 50,728,682 136,979,373

Derivative Contracts by Transaction Type 

Swaps 103,004,206 99,182,539 96,383,751 103,013,911 111,900,682 -8.0 20 6,192 85,882 26,691,266 76,220,846

Futures & forwards 39,841,399 39,857,885 34,192,708 36,958,352 38,790,403 2.7 14 3,911 22,841 8,523,199 31,291,435

Purchased options 19,127,394 16,947,409 14,799,704 15,466,148 16,277,239 17.5 0 300 4,361 7,672,093 11,450,641

Written options 18,608,685 17,051,321 14,586,169 15,459,962 16,012,000 16.2 7 3,299 15,225 7,292,737 11,297,416

Total 180,581,683 173,039,153 159,962,332 170,898,372 182,980,323 -1.3 41 13,702 128,309 50,179,295 130,260,338

Fair Value of Derivative Contracts 

Interest rate contracts 68,961 65,739 62,629 77,294 75,053 -8.1 0 84 269 34,430 34,178

Foreign exchange contracts -430 1,613 10,779 13,372 11,369 N/M 0 0 -11 2,737 -3,156

Equity contracts -4,898 -4,921 -2,181 1,643 6,637 N/M 0 0 0 -79 -4,820

Commodity & other (excluding credit derivatives) -1,300 118 622 -2,185 -3,151 N/M 0 0 0 133 -1,434

Credit derivatives as guarantor** 31,164 24,958 16,617 17,871 1,037 2,905.2 0 -1 -2 515 30,651

Credit derivatives as beneficiary** -31,788 -24,932 -15,028 -17,575 -167 N/M 0 0 -30 -379 -31,379

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 65,970,653 61,926,351 55,052,886 58,874,863 66,424,468 -0.7 40 6,345 21,430 13,940,031 52,002,807

 1-5 years 48,373,545 46,450,819 43,262,490 45,382,723 47,001,897 2.9 25 2,007 33,667 13,049,068 35,288,779

 > 5 years 29,634,389 29,973,269 29,761,959 32,522,164 33,930,510 -12.7 23 6,193 49,836 9,234,585 20,343,752

Foreign exchange and gold contracts < 1 year 27,411,021 27,320,407 23,910,532 25,797,765 26,622,784 3.0 0 0 2,440 4,757,185 22,651,396

 1-5 years 4,813,394 4,772,294 4,453,265 4,096,173 4,112,254 17.1 0 0 716 876,742 3,935,936

 > 5 years 2,496,193 2,429,269 2,420,119 1,901,381 2,150,431 16.1 0 0 32 650,346 1,845,815

Equity contracts < 1 year 2,236,472 2,202,638 1,847,254 1,954,392 1,907,096 17.3 0 0 16 36,283 2,200,173

 1-5 years 720,365 762,751 680,105 821,844 709,947 1.5 0 0 60 42,986 677,319

 > 5 years 126,774 84,970 122,956 129,226 134,063 -5.4 0 0 0 8,197 118,577

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 2,544,432 2,722,501 2,681,842 2,826,215 3,032,137 -16.1 0 0 64 79,222 2,465,145

 1-5 years 3,069,752 3,054,143 3,198,687 4,009,130 4,354,280 -29.5 0 5 170 163,234 2,906,343

 > 5 years 311,157 487,184 339,228 540,260 368,331 -15.5 0 16 259 31,214 279,668

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 26.1 25.7 29.2 35.2 37.2 0.0 0.4 0.6 16.4 38.7

Total potential future exposure to tier 1 capital (%) 45.4 46.7 44.0 41.0 43.5 0.1 0.3 0.8 22.1 72.0

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 71.5 72.3 73.2 76.2 80.7 0.1 0.7 1.4 38.5 110.7

Credit losses on derivatives  9.9 1.2 30.3 38.1 31.9 -69.0 0.0 -0.1 -1.5 11.6

HELD FOR TRADING 

Number of institutions reporting derivatives 205 201 260 251 257 -20.2 3 43 94 57 8

Total assets of institutions reporting derivatives 12,225,102 12,124,327 12,093,915 12,138,739 11,985,163 2.0 231 20,212 340,621 3,493,635 8,370,403

Total deposits of institutions reporting derivatives 9,306,449 9,265,757 9,222,603 9,188,820 8,976,508 3.7 208 16,844 270,606 2,714,356 6,304,435

Derivative Contracts by Underlying Risk Exposure 

Interest rate 137,316,184 130,188,927 121,957,324 130,490,614 141,316,485 -2.8 7 616 36,110 42,641,302 94,638,149

Foreign exchange 36,002,239 35,648,745 31,228,297 33,353,870 34,671,042 3.8 0 0 3,269 6,717,688 29,281,283

Equity 2,893,124 2,823,564 2,472,551 2,718,187 2,656,373 8.9 0 0 0 133,874 2,759,250

Commodity & other 1,306,894 1,321,931 1,255,198 1,310,469 1,326,621 -1.5 0 0 29 63,185 1,243,681

Total 177,518,442 169,983,168 156,913,371 167,873,141 179,970,521 -1.4 7 616 39,408 49,556,048 127,922,362

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  3,406 3,906 -1,376 2,962 1,906 78.7 0 0 29 1,085 2,292

Foreign exchange** 685 1,684 5,941 2,294 3,736 -81.7 0 0 5 -1,175 1,855

Equity** 1,122 922 574 728 972 15.4 0 0 5 -15 1,131

Commodity & other (including credit derivatives)** 1,502 546 844 437 420 257.6 0 0 0 1,156 346

Total trading revenues** 6,714 7,059 5,984 6,421 7,034 -4.5 0 0 40 1,051 5,624

Share of Revenue 

Trading revenues to gross revenues (%)** 4.9 5.4 4.6 4.9 5.5 0.0 0.0 1.0 2.8 5.9

Trading revenues to net operating revenues (%)** 20.6 24.0 19.9 20.7 24.7 0.0 0.0 4.8 11.9 24.6

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 819 829 1,297 1,320 1,325 -38.2 10 311 390 99 9

Total assets of institutions reporting derivatives 15,018,603 14,906,713 14,886,866 14,893,528 14,754,771 1.8 759 148,637 1,223,135 5,007,484 8,638,588

Total deposits of institutions reporting derivatives 11,438,107 11,393,987 11,348,587 11,271,425 11,087,225 3.2 639 122,899 971,555 3,811,529 6,531,486

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,501,268 2,500,672 2,522,648 2,502,329 2,478,211 0.9 33 13,085 88,292 544,462 1,855,396

Foreign exchange 519,135 511,772 509,119 504,491 513,919 1.0 0 0 442 40,400 478,292

Equity 15,349 15,492 15,211 16,620 15,991 -4.0 0 0 153 11,923 3,274

Commodity & other 27,490 28,049 1,982 1,791 1,681 1,535.3 0 0 14 26,462 1,014

Total notional amount 3,063,241 3,055,985 3,048,961 3,025,231 3,009,802 1.8 33 13,086 88,901 623,246 2,337,976

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

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

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

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

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

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

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

2nd 

Quarter 

2017

1st 

Quarter

2017

4th 

Quarter

2016

3rd 

Quarter

2016

2nd 

Quarter

2016

% 

Change 

16Q2-

17Q2

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 68 66 75 74 74 -8.1 0 8 19 34 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $621,278 $634,357 $643,700 $668,378 $687,192 -9.6 $0 $1,838 $12,700 $88,498 $518,242

Home equity loans 22 24 25 27 29 -24.1 0 0 0 22 0

Credit card receivables 17,306 16,406 12,879 13,491 13,485 28.3 0 1 0 17,261 44

Auto loans 11,566 12,158 11,543 11,024 8,935 29.4 0 0 1,957 9,609 0

Other consumer loans 3,778 3,955 4,576 4,732 4,907 -23.0 0 0 0 2,163 1,615

Commercial and industrial loans 309 312 276 161 164 88.4 0 0 0 0 309

All other loans, leases, and other assets 54,375 56,771 64,170 64,843 70,678 -23.1 0 0 8,460 1,507 44,408

Total securitized and sold 708,634 723,984 737,169 762,656 785,391 -9.8 0 1,839 23,117 119,060 564,618

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,750 1,906 2,056 2,114 2,080 -15.9 0 7 0 1,244 499

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

Credit card receivables 1,508 1,443 1,162 1,209 1,207 24.9 0 1 0 1,506 0

Auto loans 183 125 428 436 0 0.0 0 0 18 165 0

Other consumer loans 96 100 97 96 91 5.5 0 0 0 0 96

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

All other loans, leases, and other assets 874 875 1,142 838 971 -10.0 0 0 51 0 823

Total credit exposure 4,410 4,448 4,884 4,693 4,349 1.4 0 8 69 2,915 1,418

Total unused liquidity commitments provided to institution’s own 

securitizations 172 142 175 140 138 24.6 0 0 0 18 154

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

1-4 family residential loans 3.4 3.0 4.1 3.7 3.6 0.0 1.5 1.5 2.8 3.5

Home equity loans 8.2 5.6 6.9 5.5 8.6 0.0 0.0 0.0 8.2 0.0

Credit card receivables 0.4 0.4 0.4 0.4 0.3 0.0 1.7 0.0 0.4 2.3

Auto loans 1.4 1.2 1.7 1.5 1.3 0.0 0.0 2.9 1.1 0.0

Other consumer loans 4.1 4.0 4.6 4.4 3.8 0.0 0.0 0.0 2.1 6.7

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

All other loans, leases, and other assets 1.3 0.9 0.7 0.4 0.4 0.0 0.0 0.2 0.0 1.5

Total loans, leases, and other assets 3.1 2.7 3.7 3.3 3.3 0.0 1.5 1.1 2.3 3.4

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

1-4 family residential loans 1.3 1.4 1.4 1.5 1.6 0.0 0.8 0.6 1.0 1.4

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

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

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

Other consumer loans 4.0 4.1 4.2 3.8 3.6 0.0 0.0 0.0 0.9 8.1

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

All other loans, leases, and other assets 1.4 1.6 1.3 1.5 1.3 0.0 0.0 0.1 0.0 1.7

Total loans, leases, and other assets 1.3 1.4 1.4 1.4 1.5 0.0 0.8 0.4 0.9 1.4

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 5.9 2.6 6.9 3.6 2.2 0.0 0.0 0.0 5.9 0.0

Credit card receivables 0.8 0.4 4.2 3.7 3.4 0.0 0.0 0.0 0.8 2.3

Auto loans 0.5 0.2 0.7 0.5 0.3 0.0 0.0 1.1 0.4 0.0

Other consumer loans 0.6 0.4 1.0 0.7 0.5 0.0 0.0 0.0 0.4 0.9

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

All other loans, leases, and other assets 0.7 0.5 0.4 0.3 0.3 0.0 0.0 0.0 0.0 0.9

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

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

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

Credit card receivables 7,260 8,080 13,335 11,355 11,954 -39.3 0 0 0 7,260 0

Commercial and industrial loans 334 365 327 216 219 52.5 0 0 0 0 334

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 546 577 1,066 1,079 1,089 -49.9 20 273 193 52 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 26,063 25,903 38,320 37,792 36,609 -28.8 195 6,848 9,308 5,049 4,663

Home equity, credit card receivables, auto, and other consumer loans 543 564 580 626 634 -14.4 0 1 28 21 493

Commercial and industrial loans 188 230 364 339 340 -44.7 0 13 45 111 19

All other loans, leases, and other assets 95,098 93,140 89,265 84,258 80,687 17.9 0 18 143 29,651 65,286

Total sold and not securitized 121,892 119,837 128,528 123,015 118,270 3.1 195 6,881 9,524 34,831 70,461

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 7,796 7,628 10,885 11,033 10,863 -28.2 11 737 3,379 2,287 1,382

Home equity, credit card receivables, auto, and other consumer loans 152 153 147 148 134 13.4 0 1 27 2 122

Commercial and industrial loans 133 175 308 183 186 -28.5 0 13 9 111 0

All other loans, leases, and other assets 26,299 25,918 25,036 23,286 22,193 18.5 0 18 39 8,539 17,703

Total credit exposure 34,380 33,875 36,375 34,651 33,376 3.0 11 770 3,454 10,939 19,206

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 57 64 104 104 109 -47.7 1 19 19 12 6

Total credit exposure 35,012 35,130 35,264 40,190 42,341 -17.3 0 38 115 2,356 32,503

Total unused liquidity commitments 1,118 1,131 1,411 2,853 -65.6 0 13 0 339 630

Other

Assets serviced for others** 5,944,712 5,923,540 5,981,964 5,962,395 5,996,359 -0.9 4,469 230,802 312,170 1,305,375 4,091,895

Asset-backed commercial paper conduits 28,342 25,784 21,832 24,417 24,287 16.7 0 0 5 1,886 26,451

Credit exposure to conduits sponsored by institutions and others 16,698 17,521 21,720 23,084 21,665 -22.9 0 0 0 0 16,698

Unused liquidity commitments to conduits sponsored by institutions 

 and others 28,342 25,784 21,832 24,417 24,287 16.7 0 0 5 1,886 26,451

Net servicing income (for the quarter) 2,165 2,827 4,997 2,594 1,116 94.0 8 276 168 891 821

Net securitization income (for the quarter) 470 365 228 287 181 159.7 0 4 5 378 83

Total credit exposure to Tier 1 capital (%)*** 4.6 4.7 4.9 5.1 5.2 0.1 0.6 2.0 2.9 7.2

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

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

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

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

COMMUNITY BANK PERFORMANCE

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

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

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

designated during the previous quarter.

Net Income Rises 8.5 Percent to $5.7 Billion From the Year-Earlier Quarter

Net Interest Income Drives Increase in Net Operating Revenue

Net Interest Margin of 3.61 Percent Is Higher Than the Previous Year

Total Loan and Lease Balances Expand 7.8 Percent During the Year

Noncurrent Rate Improves Despite Uptick in Net Charge-Off Rate

Net Income Increases 

at Almost Two-Thirds 

(62 Percent) of 

Community Banks

Aggregate net income for the 5,338 community banks totaled $5.7 billion during the second 

quarter, an increase of $444.5 million (8.5 percent) over the past 12 months. Higher net 

interest income lifted second-quarter net income, but was partly offset by lower noninterest income and higher loan-loss provisions and noninterest expense. Almost two-thirds 

(62 percent) of community banks registered a year-over-year increase in net income. Only 

4.3 percent of community banks reported negative net income, the lowest level since second 

quarter 2007. The pretax return on assets was 1.36 percent in the second quarter, up 3 basis 

points from the previous quarter and 2 basis points from second quarter 2016. Three 

community banks failed during this period.

Net Interest Income Rises 

Close to 9 Percent From 

Second Quarter 2016

Net interest income increased $1.5 billion (8.9 percent) from the year before to $18.4 billion. 

Almost 80 percent of community banks reported year-over-year increases in net interest 

income. The annual increase was led by interest earned on non 1-to-4 family real estate 

loans (up $920.6 million, or 12 percent).1 The average net interest margin (NIM) rose by 

3 basis points from the previous year to 3.61 percent, as average asset yields increased more 

rapidly than average funding costs. NIM at community banks was 44 basis points above 

that of noncommunity banks in the quarter, but the spread narrowed 13 basis points from a 

year earlier.

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

2.0

$0.44 $1.50 $0.19 $0.00 $0.62 -$0.12 $0.13

+8% +9% +26% 0% +4% -54% +8%

Chart 1

Source: FDIC.

Net Interest Margin 

Percent

4.0 

Community Banks

All Insured Institutions 

3.0

3.5

3.61

3.22

2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 2

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

loans.
2 0 1 7  •  Volume 1 1  • Number 3

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Change 2Q 2017 vs. 2Q 2016

Change 2Q 2017 vs. 1Q 2017

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

44.1

14.7

10.5

16.7

0.7

9.5 7.3

12.1

6.2 8.0

2.2 3.2 5.2

-0.1

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Percent of Loan Portfolio Noncurrent

0

2

4

6

8

10

12

14

C&D Loans Nonfarm Nonresidential RE

1-to-4 Family RE

C&I Loans Home Equity 

Credit Cards

2009 2010 2011 2012 2013 2014 2015 2016 2017

Chart 4

Noninterest Income 

Remains Flat During 

the Year

Noninterest income for community banks fell by $2.3 million (0.05 percent) from the 

year before, while noncommunity banks reported an increase of $1 billion (1.6 percent). 

Less than a majority (45 percent) of community banks reported lower noninterest income 

from the previous year. The decline in noninterest income was led by losses on loan sales 

(down $111.9 million, or 9.6 percent) and losses on sale of other assets (down $50.3 million, 

or 82.4 percent). Noninterest income as a percent of net operating revenue declined from 

22.5 percent in second quarter 2016 to 20.8 percent.

Noninterest Expense 

Increases From the 

Year Before

Noninterest expense of $15 billion was $616.2 million (4.3 percent) higher from a year earlier, 

as salary and employee benefits increased by $462.4 million (5.7 percent). Nearly two out of 

every three (66 percent) community banks reported higher noninterest expense. Full-time 

employees at community banks increased by 9,315 (2.2 percent) from the year-ago quarter to 425,211. The average asset per employee increased to $5.2 million, compared with 

$4.9 million in second quarter 2016.

Loan Growth Rate at 

Community Banks 

Outpaces the Rate at 

Noncommunity Banks

Community banks reported $1.5 trillion in loan balances in the second quarter, an increase 

of $41 billion (2.7 percent) from the previous quarter. With 78 percent of community 

banks increasing their quarterly loan balances, the quarterly growth rate at community 

banks exceeded that of noncommunity banks (1.5 percent). The quarter-over-quarter 

increase in loan balances at community banks was led by nonfarm nonresidential loans (up 

$12.1 billion, or 2.7 percent), 1-to-4 family residential mortgages (up $8 billion, or 2 percent), 

and commercial and industrial loans (up $6.2 billion, or 3.1 percent). Loan balances 

increased by $111 billion (7.8 percent) over the past 12 months, surpassing the 3 percent 

growth rate at noncommunity banks. More than two-thirds (68 percent) of the yearly 

increase in loan balances at community banks was attributable to nonfarm nonresidential 

loans (up $44.1 billion, or 10.8 percent), 1-to-4 family residential mortgages (up $16.7 billion, 

or 4.4 percent), and commercial and industrial loans (up $14.7 billion, or 7.7 percent). Unused 

loan commitments increased by $23.3 billion (8.7 percent) from the year before, while 

unused commercial real estate loan commitments—including construction and development—rose by $9.5 billion (12.2 percent).
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Community Banks Increase 

Small Loans to Businesses

In second quarter 2017, small loans to businesses at community banks totaled $296.9 billion, 

up from $289 billion in the previous year.2 However, noncommunity banks reported an 

annual decline of $1.1 billion (0.3 percent). The 12-month increase at community banks was 

attributable to nonfarm nonresidential loans (up $3.8 billion, or 2.7 percent) and commercial and industrial loans (up $3 billion, or 3.4 percent). Community banks continue to hold 

43 percent of all small loans to businesses.

Noncurrent Rate Improves 

Modestly From First 

Quarter 2017

With more than half (52 percent) of community banks reducing their noncurrent loan 

balances from the previous quarter, the noncurrent rate fell by 6 basis points to 0.94 percent, 

the lowest level since second quarter 2007. The noncurrent rate for community banks was 

35 basis points below the 1.29 percent for noncommunity banks. All major loan categories 

among community banks improved their noncurrent rate from the previous quarter. After 

increasing for seven consecutive quarters, the noncurrent rate for commercial and industrial 

loans declined by 18 basis points from first quarter 2017.

Net Charge-Off Rate 

Increases From the 

Year Before

The net charge-off rate for community banks increased from 0.13 percent in second quarter 

2016 to 0.19 percent, while for noncommunity banks the increase was smaller, up 3 basis 

points to 0.54 percent. Among community banks, all major loan categories had mixed yearover-year results. The net charge-off rate increased for nonfarm nonresidential loans (up 

2 basis points) and commercial and industrial loans (up 41 basis points), and was the highest 

level since fourth quarter 2012. The rise in commercial and industrial loan net charge-offs 

was primarily the result of the write-down of taxi medallion loans at one large community 

bank. The net charge-off rate declined for 1-to-4 family residential mortgages (down 3 basis 

points). Construction and development loans had a negative net charge-off rate for the quarter (0.03 percent) as recoveries exceeded charge-offs.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6578

2 Small loans to businesses consist of commercial and industrial loans with original amounts of $1 million or less, loans secured by 

nonfarm nonresidential real estate with original amounts of $1 million or less, real estate loans secured by farmland with original 

amounts of $500,000 or less, and agricultural production loans with original amounts of $500,000 or less.
2 0 1 7  •  Volume 1 1  • Number 3

18 FDIC QUARTERLY

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

2017* 2016* 2016 2015 2014 2013 2012

Return on assets (%) 1.03 1.00 0.99 0.99 0.93 0.90 0.83

Return on equity (%) 9.23 8.92 8.81 8.85 8.45 8.27 7.68

Core capital (leverage) ratio (%) 10.82 10.69 10.69 10.67 10.57 10.43 10.18

Noncurrent assets plus other real estate owned to assets (%) 0.86 1.01 0.94 1.07 1.34 1.73 2.27

Net charge-offs to loans (%) 0.14 0.11 0.15 0.15 0.21 0.32 0.58

Asset growth rate (%) 2.78 2.94 2.97 2.71 2.21 0.39 2.25

Net interest margin (%) 3.58 3.57 3.57 3.57 3.61 3.59 3.67

Net operating income growth (%) 7.38 3.68 2.51 9.55 4.81 14.64 56.17

Number of institutions reporting 5,338 5,602 5,461 5,735 6,037 6,307 6,542

Percentage of unprofitable institutions (%) 4.22 4.59 4.61 5.00 6.44 8.40 11.14

* Through June 30, ratios annualized where appropriate. Asset growth rates for 12 months ending June 30.

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

(dollar figures in millions)  2nd Quarter

2017

1st Quarter

2017

2nd Quarter

2016

%Change 

16Q2-17Q2

Number of institutions reporting 5,338 5,401 5,602 -4.7

Total employees (full-time equivalent) 425,211 428,825 436,815 -2.7

CONDITION DATA

Total assets $2,206,085 $2,215,289 $2,146,407 2.8

Loans secured by real estate 1,185,656 1,179,778 1,125,990 5.3

 1-4 Family residential mortgages 396,626 394,860 382,059 3.8

 Nonfarm nonresidential 453,481 451,642 430,748 5.3

 Construction and development 102,423 102,463 97,586 5.0

 Home equity lines 49,594 50,023 50,658 -2.1

Commercial & industrial loans 206,239 203,798 201,623 2.3

Loans to individuals 60,779 60,627 60,813 -0.1

 Credit cards 1,988 2,110 2,119 -6.2

Farm loans 51,396 48,370 51,268 0.2

Other loans & leases 40,266 38,204 39,392 2.2

Less: Unearned income 695 665 633 9.8

Total loans & leases 1,543,641 1,530,112 1,478,454 4.4

Less: Reserve for losses 18,329 18,841 18,587 -1.4

Net loans and leases 1,525,311 1,511,271 1,459,867 4.5

Securities 423,937 432,396 427,803 -0.9

Other real estate owned 4,450 4,784 5,842 -23.8

Goodwill and other intangibles 14,428 14,719 14,279 1.0

All other assets 237,958 252,119 238,616 -0.3

Total liabilities and capital 2,206,085 2,215,289 2,146,407 2.8

Deposits 1,802,215 1,823,144 1,752,767 2.8

 Domestic office deposits 1,801,449 1,822,693 1,752,358 2.8

 Foreign office deposits 766 451 409 87.2

 Brokered deposits 86,788 84,675 75,309 15.2

Estimated insured deposits 1,338,364 1,353,718 1,318,653 1.5

Other borrowed funds 139,051 129,364 132,253 5.1

Subordinated debt 759 767 831 -8.7

All other liabilities 15,853 16,286 17,264 -8.2

Total equity capital (includes minority interests) 248,207 245,728 243,292 2.0

 Bank equity capital 248,080 245,603 243,191 2.0

Loans and leases 30-89 days past due 6,594 8,064 7,887 -16.4

Noncurrent loans and leases 14,448 15,276 15,668 -7.8

Restructured loans and leases 7,474 7,819 8,802 -15.1

Mortgage-backed securities 181,013 186,595 183,319 -1.3

Earning assets 2,056,178 2,064,412 1,995,848 3.0

FHLB Advances 112,682 102,227 103,873 8.5

Unused loan commitments 290,441 292,424 281,134 3.3

Trust assets 259,882 262,935 261,048 -0.4

Assets securitized and sold 21,606 21,403 16,570 30.4

Notional amount of derivatives 70,034 64,259 70,954 -1.3

INCOME DATA

First Half

 2017

First Half

 2016 %Change

2nd Quarter 

2017

2nd Quarter 

2016

%Change 

16Q2-17Q2

Total interest income $41,139 $39,524 4.1 $20,998 $19,986 5.1

Total interest expense 4,952 4,508 9.8 2,576 2,285 12.7

Net interest income 36,187 35,016 3.3 18,422 17,701 4.1

Provision for loan and lease losses 1,544 1,384 11.5 896 742 20.8

Total noninterest income 9,513 9,786 -2.8 4,845 5,141 -5.8

Total noninterest expense 29,768 30,020 -0.8 15,033 15,214 -1.2

Securities gains (losses) 227 416 -45.3 102 240 -57.5

Applicable income taxes 3,440 3,237 6.3 1,742 1,686 3.3

Extraordinary gains, net* -1 2 N/M -7 0 N/M

Total net income (includes minority interests) 11,175 10,579 5.6 5,691 5,438 4.7

 Bank net income 11,163 10,568 5.6 5,684 5,432 4.6

Net charge-offs 1,087 825 31.8 709 471 50.6

Cash dividends 5,051 5,104 -1.0 2,491 2,587 -3.7

Retained earnings 6,112 5,464 11.9 3,193 2,845 12.2

Net operating income 11,006 10,249 7.4 5,615 5,251 6.9

* See Notes to Users for explanation. N/M - Not Meaningful
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  2nd Quarter 

2017

1st Quarter 

2017

2nd Quarter

2016

%Change 

16Q2-17Q2

Number of institutions reporting 5,338 5,338 5,337 0.0

Total employees (full-time equivalent) 425,211 420,810 415,896 2.2

CONDITION DATA

Total assets $2,206,085 $2,177,383 $2,079,998 6.1

Loans secured by real estate 1,185,656 1,158,115 1,094,946 8.3

 1-4 Family residential mortgages 396,626 388,661 379,906 4.4

 Nonfarm nonresidential 453,481 441,405 409,331 10.8

 Construction and development 102,423 100,210 91,961 11.4

 Home equity lines 49,594 48,832 47,895 3.5

Commercial & industrial loans 206,239 200,012 191,555 7.7

Loans to individuals 60,779 59,437 57,695 5.3

 Credit cards 1,988 2,037 2,023 -1.7

Farm loans 51,396 48,196 50,691 1.4

Other loans & leases 40,266 37,545 38,338 5.0

Less: Unearned income 695 655 615 13.0

Total loans & leases 1,543,641 1,502,651 1,432,611 7.8

Less: Reserve for losses 18,329 18,195 17,928 2.2

Net loans and leases 1,525,311 1,484,456 1,414,682 7.8

Securities 423,937 426,548 416,691 1.7

Other real estate owned 4,450 4,740 5,643 -21.1

Goodwill and other intangibles 14,428 14,244 13,387 7.8

All other assets 237,958 247,396 229,596 3.6

Total liabilities and capital 2,206,085 2,177,383 2,079,998 6.1

Deposits 1,802,215 1,791,983 1,694,393 6.4

 Domestic office deposits 1,801,449 1,791,502 1,693,984 6.3

 Foreign office deposits 766 481 409 87.2

 Brokered deposits 86,788 82,831 72,890 19.1

Estimated insured deposits 1,338,364 1,331,621 1,277,089 4.8

Other borrowed funds 139,051 126,401 132,107 5.3

Subordinated debt 759 767 772 -1.7

All other liabilities 15,853 16,033 16,669 -4.9

Total equity capital (includes minority interests) 248,207 242,199 236,056 5.1

 Bank equity capital 248,080 242,074 235,955 5.1

Loans and leases 30-89 days past due 6,594 7,941 7,796 -15.4

Noncurrent loans and leases 14,448 14,519 15,222 -5.1

Restructured loans and leases 7,474 7,690 8,544 -12.5

Mortgage-backed securities 181,013 183,090 178,720 1.3

Earning assets 2,056,178 2,029,364 1,935,932 6.2

FHLB Advances 112,682 100,657 103,959 8.4

Unused loan commitments 290,441 286,469 267,184 8.7

Trust assets 259,882 256,270 240,794 7.9

Assets securitized and sold 21,606 21,403 14,043 53.9

Notional amount of derivatives 70,034 62,300 65,551 6.8

INCOME DATA

First Half 

2017

First Half 

2016 %Change

2nd Quarter 

2017

2nd Quarter 

2016

%Change 

16Q2-17Q2

Total interest income $41,139 $37,840 8.7 $20,998 $19,134 9.7

Total interest expense 4,952 4,367 13.4 2,576 2,214 16.3

Net interest income 36,187 33,472 8.1 18,422 16,920 8.9

Provision for loan and lease losses 1,544 1,312 17.7 896 711 26.0

Total noninterest income 9,513 9,244 2.9 4,845 4,847 0.0

Total noninterest expense 29,768 28,462 4.6 15,033 14,416 4.3

Securities gains (losses) 227 391 -41.9 102 220 -53.7

Applicable income taxes 3,440 3,148 9.3 1,742 1,615 7.9

Extraordinary gains, net* -1 2 N/M -7 0 N/M

Total net income (includes minority interests) 11,175 10,188 9.7 5,691 5,246 8.5

 Bank net income 11,163 10,178 9.7 5,684 5,240 8.5

Net charge-offs 1,087 784 38.7 709 460 54.1

Cash dividends 5,051 4,880 3.5 2,491 2,471 0.8

Retained earnings 6,112 5,298 15.4 3,193 2,768 15.4

Net operating income 11,006 9,878 11.4 5,615 5,073 10.7

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 7  •  Volume 1 1  • Number 3

20 FDIC QUARTERLY

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

Second Quarter 2017

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 5,338 619 630 1,164 1,408 1,174 343

Total employees (full-time equivalent) 425,211 88,308 50,104 88,327 71,255 93,277 33,940

CONDITION DATA

Total assets $2,206,085 $612,339 $234,164 $395,550 $342,128 $425,021 $196,883

Loans secured by real estate 1,185,656 376,869 129,737 203,961 163,691 205,487 105,910

 1-4 Family residential mortgages 396,626 139,985 41,418 71,871 51,036 65,843 26,474

 Nonfarm nonresidential 453,481 132,122 56,344 74,766 54,635 84,456 51,158

 Construction and development 102,423 22,034 14,781 13,893 13,742 29,329 8,644

 Home equity lines 49,594 16,990 7,011 11,011 5,036 4,743 4,803

Commercial & industrial loans 206,239 52,740 18,380 39,030 34,517 42,615 18,958

Loans to individuals 60,779 14,089 6,459 12,315 10,253 13,394 4,269

 Credit cards 1,988 444 119 402 552 224 248

Farm loans 51,396 591 1,397 8,214 28,364 9,945 2,885

Other loans & leases 40,266 12,921 3,133 7,008 5,850 7,957 3,396

Less: Unearned income 695 175 107 57 86 137 132

Total loans & leases 1,543,641 457,035 158,999 270,470 242,589 279,262 135,286

Less: Reserve for losses 18,329 4,554 1,894 3,310 3,246 3,557 1,767

Net loans and leases 1,525,311 452,481 157,105 267,160 239,343 275,704 133,518

Securities 423,937 100,531 43,875 82,138 66,268 94,464 36,660

Other real estate owned 4,450 759 1,047 799 701 903 241

Goodwill and other intangibles 14,428 5,122 1,128 2,580 1,888 2,675 1,036

All other assets 237,958 53,447 31,009 42,872 33,928 51,275 25,427

Total liabilities and capital 2,206,085 612,339 234,164 395,550 342,128 425,021 196,883

Deposits 1,802,215 480,103 195,489 325,120 280,900 356,654 163,950

 Domestic office deposits 1,801,449 479,700 195,170 325,104 280,900 356,654 163,922

 Foreign office deposits 766 402 319 17 0 0 28

 Brokered deposits 86,788 28,376 7,114 15,246 13,908 13,022 9,123

 Estimated insured deposits 1,338,364 344,394 146,261 258,274 221,944 256,915 110,577

Other borrowed funds 139,051 56,640 11,094 22,990 20,979 18,542 8,806

Subordinated debt 759 657 7 46 22 13 15

All other liabilities 15,853 5,580 1,506 2,783 1,898 2,511 1,575

Total equity capital (includes minority interests) 248,207 69,360 26,069 44,610 38,329 47,301 22,537

 Bank equity capital 248,080 69,289 26,054 44,593 38,328 47,280 22,537

Loans and leases 30-89 days past due 6,594 1,751 763 1,205 1,028 1,502 344

Noncurrent loans and leases 14,448 5,037 1,522 2,532 1,862 2,722 772

Restructured loans and leases 7,474 2,268 932 1,727 1,036 1,011 501

Mortgage-backed securities 181,013 56,904 18,597 31,306 21,443 35,225 17,539

Earning assets 2,056,178 573,455 216,324 368,017 319,364 394,346 184,673

FHLB Advances 112,682 49,061 9,136 17,786 15,422 14,793 6,485

Unused loan commitments 290,441 76,903 28,813 54,263 48,122 53,071 29,269

Trust assets 259,882 49,188 7,271 70,361 82,352 43,353 7,358

Assets securitized and sold 21,606 6,754 80 7,967 2,108 738 3,958

Notional amount of derivatives 70,034 28,220 6,994 12,667 8,660 9,945 3,547

INCOME DATA

Total interest income $20,998 $5,555 $2,283 $3,683 $3,334 $4,205 $1,937

Total interest expense 2,576 860 252 435 414 436 178

Net interest income 18,422 4,694 2,031 3,249 2,920 3,769 1,759

Provision for loan and lease losses 896 373 56 108 126 202 32

Total noninterest income 4,845 943 531 1,213 755 957 446

Total noninterest expense 15,033 3,672 1,746 2,875 2,326 3,064 1,348

Securities gains (losses) 102 52 6 11 12 17 3

Applicable income taxes 1,742 508 207 358 213 254 203

Extraordinary gains, net** -7 -5 0 0 0 0 -2

Total net income (includes minority interests) 5,691 1,131 558 1,132 1,022 1,223 624

 Bank net income 5,684 1,129 557 1,130 1,022 1,221 624

Net charge-offs 709 360 33 62 78 149 26

Cash dividends 2,491 268 180 615 584 583 261

Retained earnings 3,193 861 377 515 438 639 364

Net operating income 5,615 1,096 554 1,122 1,012 1,208 623

* See Table V-A for explanations.

** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Second Quarter 2017, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Second Quarter 2017, Geographic Regions*

 2nd Quarter 

2017

1st Quarter 

2017 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.12 4.02 3.91 4.27 4.03 4.20 4.29 4.22

Cost of funding earning assets 0.50 0.48 0.61 0.47 0.48 0.52 0.45 0.39

Net interest margin 3.61 3.54 3.31 3.80 3.56 3.68 3.85 3.83

Noninterest income to assets 0.89 0.87 0.62 0.92 1.24 0.89 0.91 0.91

Noninterest expense to assets 2.75 2.75 2.42 3.01 2.93 2.73 2.90 2.76

Loan and lease loss provision to assets 0.16 0.12 0.25 0.10 0.11 0.15 0.19 0.06

Net operating income to assets 1.03 1.00 0.72 0.96 1.14 1.19 1.14 1.27

Pretax return on assets 1.36 1.33 1.08 1.32 1.52 1.45 1.40 1.69

Return on assets 1.04 1.01 0.75 0.96 1.15 1.20 1.16 1.28

Return on equity 9.29 9.16 6.60 8.68 10.27 10.80 10.49 11.24

Net charge-offs to loans and leases 0.19 0.10 0.32 0.09 0.09 0.13 0.22 0.08

Loan and lease loss provision to net charge-offs 126.27 167.71 103.46 168.25 173.89 159.99 135.26 121.42

Efficiency ratio 64.29 65.56 64.81 67.79 64.13 62.89 64.60 60.88

Net interest income to operating revenue 79.18 79.02 83.27 79.29 72.82 79.45 79.75 79.76

% of unprofitable institutions 4.31 4.48 5.33 5.71 4.55 2.98 4.17 4.96

% of institutions with earnings gains 62.40 56.17 66.88 66.03 63.06 55.54 62.95 71.72

Table V-B. First Half 2017, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks First Half 2017, Geographic Regions*

First Half 

2017

First Half 

2016 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.07 4.03 3.88 4.21 3.98 4.13 4.26 4.18

Cost of funding earning assets 0.49 0.46 0.59 0.46 0.46 0.50 0.43 0.37

Net interest margin 3.58 3.57 3.29 3.75 3.52 3.63 3.83 3.81

Noninterest income to assets 0.88 0.93 0.62 0.91 1.21 0.86 0.92 0.90

Noninterest expense to assets 2.74 2.84 2.42 3.01 2.93 2.72 2.90 2.75

Loan and lease loss provision to assets 0.14 0.13 0.19 0.09 0.10 0.14 0.18 0.08

Net operating income to assets 1.01 0.97 0.76 0.92 1.10 1.15 1.16 1.20

Pretax return on assets 1.35 1.31 1.14 1.27 1.45 1.39 1.40 1.66

Return on assets 1.03 1.00 0.79 0.93 1.11 1.16 1.17 1.21

Return on equity 9.23 8.92 7.00 8.39 9.93 10.44 10.62 10.68

Net charge-offs to loans and leases 0.14 0.11 0.21 0.08 0.09 0.12 0.20 0.06

Loan and lease loss provision to net charge-offs 141.99 167.77 119.79 181.02 167.44 167.19 140.26 191.95

Efficiency ratio 64.82 66.67 65.12 68.56 65.21 63.72 64.65 61.16

Net interest income to operating revenue 79.18 78.16 83.16 79.22 73.05 79.69 79.49 79.81

% of unprofitable institutions 4.22 4.59 5.49 6.19 4.55 2.91 3.49 4.96

% of institutions with earnings gains 60.88 62.26 68.34 67.78 60.48 53.13 59.03 74.34

* See Table V-A for explanations.
2 0 1 7  •  Volume 1 1  • Number 3

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

June 30, 2017

Geographic Regions*

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

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.43 0.38 0.50 0.51 0.41 0.53 0.25

Construction and development 0.39 0.27 0.39 0.39 0.36 0.39 0.79

Nonfarm nonresidential 0.28 0.26 0.29 0.31 0.29 0.33 0.14

Multifamily residential real estate 0.14 0.10 0.13 0.31 0.14 0.27 0.03

Home equity loans 0.39 0.42 0.41 0.40 0.29 0.50 0.24

Other 1-4 family residential 0.70 0.61 0.86 0.82 0.57 0.87 0.37

Commercial and industrial loans 0.44 0.28 0.57 0.35 0.53 0.59 0.44

Loans to individuals 1.44 1.86 1.48 0.83 1.00 2.06 0.82

Credit card loans 2.03 2.19 1.09 1.23 3.55 1.15 0.91

Other loans to individuals 1.42 1.85 1.48 0.82 0.85 2.08 0.82

All other loans and leases (including farm) 0.43 0.22 0.34 0.44 0.55 0.40 0.44

Total loans and leases 0.43 0.38 0.48 0.45 0.42 0.54 0.25

Percent of Loans Noncurrent**

All loans secured by real estate 0.89 1.01 0.99 1.00 0.73 0.84 0.52

Construction and development 0.96 0.91 1.50 1.00 0.97 0.73 0.83

Nonfarm nonresidential 0.78 0.88 0.79 0.96 0.74 0.73 0.35

Multifamily residential real estate 0.22 0.13 0.51 0.49 0.16 0.39 0.10

Home equity loans 0.59 0.74 0.49 0.61 0.30 0.51 0.61

Other 1-4 family residential 1.19 1.53 1.19 1.17 0.60 1.07 0.82

Commercial and industrial loans 1.28 1.78 0.90 0.94 0.97 1.59 0.87

Loans to individuals 0.69 0.56 0.82 0.35 0.44 1.39 0.32

Credit card loans 1.08 1.29 0.60 0.87 1.44 0.51 0.96

Other loans to individuals 0.68 0.54 0.82 0.34 0.38 1.40 0.28

All other loans and leases (including farm) 0.85 1.54 0.47 0.53 0.84 0.78 0.59

Total loans and leases 0.94 1.10 0.96 0.94 0.77 0.97 0.57

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.04 0.06 0.02 0.04 0.03 0.03 -0.02

Construction and development -0.02 0.03 -0.01 -0.07 -0.09 0.01 -0.05

Nonfarm nonresidential 0.04 0.08 0.02 0.04 0.04 0.03 -0.02

Multifamily residential real estate 0.01 0.00 0.02 0.00 0.09 0.01 0.00

Home equity loans 0.05 0.07 0.05 0.07 0.04 0.02 -0.01

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

Commercial and industrial loans 0.49 1.09 0.15 0.14 0.20 0.58 0.21

Loans to individuals 0.92 0.94 0.87 0.59 1.19 1.01 0.99

Credit card loans 6.48 3.59 1.47 3.89 16.19 1.58 2.18

Other loans to individuals 0.73 0.85 0.86 0.47 0.33 1.00 0.92

All other loans and leases (including farm) 0.24 0.17 0.19 0.18 0.16 0.55 0.22

Total loans and leases 0.14 0.21 0.08 0.09 0.12 0.20 0.06

Loans Outstanding (in billions)

All loans secured by real estate $1,185.7 $376.9 $129.7 $204.0 $163.7 $205.5 $105.9

Construction and development 102.4 22.0 14.8 13.9 13.7 29.3 8.6

Nonfarm nonresidential 453.5 132.1 56.3 74.8 54.6 84.5 51.2

Multifamily residential real estate 113.7 63.4 5.9 16.0 9.0 7.9 11.5

Home equity loans 49.6 17.0 7.0 11.0 5.0 4.7 4.8

Other 1-4 family residential 396.6 140.0 41.4 71.9 51.0 65.8 26.5

Commercial and industrial loans 206.2 52.7 18.4 39.0 34.5 42.6 19.0

Loans to individuals 60.8 14.1 6.5 12.3 10.3 13.4 4.3

Credit card loans 2.0 0.4 0.1 0.4 0.6 0.2 0.2

Other loans to individuals 58.8 13.6 6.3 11.9 9.7 13.2 4.0

All other loans and leases (including farm) 91.7 13.5 4.5 15.2 34.2 17.9 6.3

Total loans and leases 1,544.3 457.2 159.1 270.5 242.7 279.4 135.4

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 290,441 76,903 28,813 54,263 48,122 53,071 29,269

Construction and development: 1-4 family residential 25,479 5,246 4,089 2,954 3,226 7,121 2,844

Construction and development: CRE and other 61,075 18,695 6,734 9,930 7,153 13,555 5,008

Commercial and industrial 91,438 23,748 7,806 18,506 14,925 16,655 9,799

* See Table V-A for explanations.

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

FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $2.7 Billion

DIF Reserve Ratio Rises 4 Basis Points to 1.24 Percent

Three Insured Institutions Fail

The Deposit Insurance Fund (DIF) balance increased by $2.7 billion, to $87.6 billion, 

during the second quarter. Assessment income of $2.6 billion, which includes temporary 

assessment surcharges on large banks, drove the fund balance increase. Interest on investments of $251 million, a negative provision for insurance losses of $233 million, and other 

miscellaneous income of $4 million also added to the fund balance. Operating expenses of 

$450 million and unrealized losses on available-for-sale securities of $12 million reduced the 

fund balance. Three insured institutions failed in the second quarter, with combined assets 

of $4.4 billion.

The deposit insurance assessment base—average consolidated total assets minus average 

tangible equity—increased by 0.5 percent in the second quarter and by 3.5 percent over 

12 months.1,2 Total estimated insured deposits decreased by 0.4 percent in the second quarter 

of 2017 but rose by 5.5 percent year-over-year. The DIF’s reserve ratio (the fund balance as 

a percent of estimated insured deposits) was 1.24 percent on June 30, up from 1.20 percent 

at March 31, 2017, and 1.17 percent on June 30 of last year. The June 30, 2017, reserve ratio of 

1.24 percent is the highest since December 31, 2005, when the reserve ratio was 1.25 percent.3

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.4,5 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 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 Reserve ratio for December 31, 2005, represents the combined balances of the Bank Insurance Fund and Savings Association 

Insurance Fund as a percent of estimated insured deposits.

4 Large banks are generally those with assets of $10 billion or more.

5 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 3

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

0.84

0.89

1.01 1.03 1.07 1.09 1.11 1.13

1.17 1.18 1.20 1.20

1.24

6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

2nd 

Quarter 

2017

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd 

Quarter 

2016

1st 

Quarter 

2016

4th 

Quarter 

2015

3rd 

Quarter 

2015

2nd 

Quarter 

2015

1st 

Quarter 

2015

4th 

Quarter 

2014

3rd 

Quarter 

2014

2nd 

Quarter 

2014

Beginning Fund Balance $84,928 $83,162 $80,704 $77,910 $75,120 $72,600 $70,115 $67,589 $65,296 $62,780 $54,320 $51,059 $48,893

Changes in Fund Balance:

Assessments earned 2,634 2,737 2,688 2,643 2,328 2,328 2,160 2,170 2,328 2,189 2,030 2,009 2,224

Interest earned on 

investment securities 251 227 189 171 164 147 128 122 113 60 70 80 87

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 450 442 437 422 441 415 447 410 434 396 408 406 428

Provision for insurance 

losses -233 765 -332 -566 -627 -43 -930 -578 -317 -426 -6,787 -1,663 -204

All other income, 

net of expenses 4 2 3 3 2 5 12 2 3 6 -43 6 6

Unrealized gain/(loss) on 

available-for-sale 

securities -12 7 -317 -167 110 412 -298 64 -34 231 24 -91 73

Total fund balance change 2,660 1,766 2,458 2,794 2,790 2,520 2,485 2,526 2,293 2,516 8,460 3,261 2,166

Ending Fund Balance 87,588 84,928 83,162 80,704 77,910 75,120 72,600 70,115 67,589 65,296 62,780 54,320 51,059

Percent change from 

 four quarters earlier 12.42 13.06 14.55 15.10 15.27 15.05 15.64 29.08 32.37 33.55 33.03 33.27 34.82

Reserve Ratio (%) 1.24 1.20 1.20 1.18 1.17 1.13 1.11 1.09 1.07 1.03 1.01 0.89 0.84

Estimated Insured 

Deposits 7,045,151 7,076,788 6,914,661 6,817,020 6,675,378 6,663,048 6,522,388 6,409,239 6,336,141 6,334,862 6,196,472 6,125,603 6,096,276

Percent change from 

 four quarters earlier 5.54 6.21 6.01 6.36 5.35 5.18 5.26 4.63 3.93 3.72 3.30 2.78 2.53

Domestic Deposits 11,827,954 11,856,694 11,691,575 11,505,081 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

Percent change from 

 four quarters earlier 5.23 6.29 6.77 7.57 5.75 5.07 5.21 4.72 5.25 6.56 5.93 6.04 7.16

Assessment Base** 14,695,350 14,621,127 14,563,348 14,383,036 14,193,985 14,022,564 13,833,118 13,662,685 13,589,495 13,533,469 13,346,567 13,113,585 12,901,784

Percent change from 

 four quarters earlier 3.53 4.27 5.28 5.27 4.45 3.61 3.65 4.19 5.33 5.68 4.61 4.61 3.19

Number of Institutions 

Reporting 5,796 5,865 5,922 5,989 6,067 6,131 6,191 6,279 6,357 6,428 6,518 6,598 6,665

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

6/14 $51,059 $6,096,276

9/14 54,320 6,125,603

12/14 62,780 6,196,472

3/15 65,296 6,334,862

6/15 67,589 6,336,141

9/15 70,115 6,409,239

12/15 72,600 6,522,388

3/16 75,120 6,663,048

6/16 77,910 6,675,378

9/16 80,704 6,817,020

12/16 83,162 6,914,661

3/17 84,928 7,076,788

6/17 87,588 7,045,151

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2017*** 2016*** 2016 2015 2014 2013 2012 2011

Problem Institutions

Number of institutions 105 147 123 183 291 467 651 813

Total assets $17,168 $28,970 $27,624 $46,780 $86,712 $152,687 $232,701 $319,432

Failed Institutions

Number of institutions 6 3 5 8 18 24 51 92

Total assets**** $4,882 $189 $277 $6,706 $2,914 $6,044 $11,617 $34,923

* Quarterly financial statement results are unaudited.

** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

*** Through June 30.

**** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions)

June 30, 2017

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 5,011 $15,890,468 $10,847,499 $6,252,426

 FDIC-Supervised 3,330 2,468,718 1,947,521 1,351,810

 OCC-Supervised 898 10,831,360 7,124,525 3,920,967

 Federal Reserve-Supervised 783 2,590,390 1,775,452 979,649

FDIC-Insured Savings Institutions 776 1,176,070 933,140 753,270

 OCC-Supervised 358 755,862 613,937 501,442

 FDIC-Supervised 381 394,160 298,628 235,617

 Federal Reserve-Supervised 37 26,048 20,575 16,210

Total Commercial Banks and Savings Institutions 5,787 17,066,539 11,780,639 7,005,695

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 86,190 47,315 39,456

Total FDIC-Insured Institutions 5,796 17,152,729 11,827,954 7,045,151

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending March 31, 2017 (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 3,423 58.36 $2,588.5 17.70

3.01 - 6.00 1,625 27.71 11,108.1 75.97

6.01 - 10.00 615 10.49 699.8 4.79

10.01 - 15.00 74 1.26 159.2 1.09

15.01 - 20.00 106 1.81 53.1 0.36

20.01 - 25.00 11 0.19 1.7 0.01

>25.00 11 0.19 10.8 0.07

* Assessment rates do not incorporate temporary surcharges on large banks.

** Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as required by the Dodd-Frank Act.
2 0 1 7  •  Volume 1 1  • Number 3

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

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), 

1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

problem institutions, failed/assisted institutions, estimated FDICinsured 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

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the Financial Accounting Standards Board (FASB) 

issued Accounting Standards Update (ASU) No. 2017-08, “Premium 

Amortization on Purchased Callable Debt Securities.” This ASU 

amends Accounting Standards Codification (ASC) Subtopic 310-20, 

Receivables – Nonrefundable Fees and Other Costs (formerly FASB 

Statement No. 91, “Accounting for Nonrefundable Fees and Costs 

Associated with Originating or Acquiring Loans and Initial Direct 

Costs of Leases”), by shortening the amortization period for premiums on callable debt securities that have explicit, non-contingent call 

features and are callable at fixed prices and on preset dates. Under 

existing U.S. generally accepted accounting principles (GAAP), the 

premium on such a callable debt security generally is required to be 

amortized as an adjustment of yield over the contractual life of the 

debt security. Under the ASU, the excess of the amortized cost basis 

of such a callable debt security over the amount repayable by the 

issuer at the earliest call date (i.e., the premium) must be amortized 

to the earliest call date (unless the institution applies the guidance in 

ASC Subtopic 310-20 that allows estimates of future principal prepayments to be considered in the effective yield calculation when the 

institution holds a large number of similar debt securities for which 

prepayments are probable and the timing and amount of the prepayments can be reasonably estimated). If the call option is not exercised 

at its earliest call date, the institution must reset the effective yield 

using the payment terms of the debt security.

The ASU does not change the accounting for debt securities held at a 

discount. The discount on such debt securities continues to be amortized to maturity (unless the Subtopic 310-20 guidance mentioned 

above is applied).

For institutions that are public business entities, as defined under 

U.S. GAAP, the new standard is effective for fiscal years beginning 

after December 15, 2018, including interim periods within those fiscal 

years. For institutions that are not public business entities (i.e., that 

are private companies), the new standard is effective for fiscal years 

beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Refer to the Glossary 

entries for “public business entity” and “private company” in the Call 

Report instructions for further information on these terms.

Early application of the new standard is permitted for all institutions, 

including adoption in an interim period of 2017 or a subsequent year 

before the applicable effective date for an institution. If an institution early adopts the ASU in an interim period, the cumulative-effect 

adjustment shall be reflected as of the beginning of the fiscal year of 

adoption.

An institution must apply the new standard on a modified retrospective basis as of the beginning of the period of adoption. Under the 

modified retrospective method, an institution should apply a cumulative-effect adjustment to affected accounts existing as of the beginning of the fiscal year the new standard is adopted and to retained 

earnings for this change in accounting principle.

For additional information, institutions should refer to ASU 2017-08, 

which is available at http://www.fasb.org/jsp/FASB/Document_C/

DocumentPage?cid=1176168934053&acceptedDisclaimer=true.

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.” 
2 0 1 7  •  Volume 1 1  • Number 3

28 FDIC QUARTERLY

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. 

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 

“Extraordinary gains, net” on the QBP includes only Discontinued 

operations expense. Accordingly, comparisons to prior periods 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. 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

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 

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. 
2 0 1 7  •  Volume 1 1  • Number 3

30 FDIC QUARTERLY

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, 

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
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 31

•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.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of deposits in banks’ domestic offices with certain 

adjustments.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).
2 0 1 7  •  Volume 1 1  • Number 3

32 FDIC QUARTERLY

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity tier 1 capital ratio – ratio of common equity tier 1 

capital to risk-weighted assets. Common equity tier 1 capital includes 

common stock instruments and related surplus, retained earnings, 

accumulated other comprehensive income (AOCI), and limited 

amounts of common equity tier 1 minority interest, minus applicable 

regulatory adjustments and deductions. Items that are fully deducted 

from common equity tier 1 capital include goodwill, other intangible 

assets (excluding mortgage servicing assets) and certain deferred tax 

assets; items that are subject to limits in common equity tier 1 capital 

include mortgage servicing assets, eligible deferred tax assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average earning assets.

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative 

plus an additional amount for potential future credit exposure based on 

the notional amount, the remaining maturity and type of the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified 

future date, a specific quantity of an underlying variable or index 

at a specified price or yield. These contracts exist for a variety of 

variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.

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.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 33

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, 

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.)
2 0 1 7  •  Volume 1 1  • Number 3

34 FDIC QUARTERLY

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.