FDIC QUARTERLY A

Quarterly

2018

Volume 12, Number 2

Federal Deposit 

Insurance Corporation

Quarterly Banking Profile:

First Quarter 2018

Highlights:

■ Net Income Increases 27.5 Percent From a Year 

Earlier Due to Higher Net Operating Revenue and 

a Lower Effective Tax Rate

■ Loan Balances Rise 4.9 Percent Over 12 Months

■ Community Bank Net Income Rises 17.7 Percent 

Annually on Higher Net Interest Income and 

Lower Income Tax Expenses

■ Estimated Insured Deposits Grow by 2.6 Percent

■ DIF Reserve Ratio Is Unchanged at 1.30 Percent
FDIC QUARTERLY

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

Federal Deposit Insurance Corporation and contains a comprehensive summary of the 

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

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

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

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

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

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

submitted to the Public Information Center. 

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

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

Chairman

Jelena McWilliams

Director, Division of Insurance and Research

Diane Ellis

Executive Editor

Richard A. Brown

Managing Editors

Alan Deaton

Matthew Green

Patrick Mitchell

Shayna M. Olesiuk

Jonathan Pogach

Philip A. Shively

Kathy Zeidler

Editors

Clayton Boyce

Kathy Zeidler

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993
FDIC QUARTERLY i

2018 FDIC QUARTERLY

Volume 12 • Number 2

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

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

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

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

Quarterly Banking Profile: First Quarter 2018

FDIC-insured institutions reported aggregate net income of $56 billion in first quarter 

2018, up $12.1 billion (27.5 percent) from a year earlier. The improvement in earnings was 

attributable to higher net operating revenue and a lower effective tax rate. Of the 5,606 

insured institutions reporting first quarter financial results, more than 70 percent reported 

year-over-year growth in quarterly earnings. See page 1.

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

income of $6.1 billion in the first quarter, up $913.1 million (17.7 percent) from a year earlier. 

Higher net operating revenue and a lower effective tax rate boosted first quarter net income. 

See page 15.

Insurance Fund Indicators The Deposit Insurance Fund (DIF) balance increased by $2.3 billion during the quarter to 

$95.1 billion on March 31, driven by assessment income. The DIF’s reserve ratio (the fund 

balance as a percent of estimated insured deposits) was 1.30 percent on March 31, 2018, 

unchanged from year-end 2017 due primarily to strong first quarter growth in estimated 

insured deposits. See page 23.

2018 FDIC QUARTERLY

QUARTERLY BANKING PROFILE First Quarter 2018

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Net Income Increases 27.5 Percent From a Year Earlier Due to Higher Net Operating Revenue and a Lower Effective 

Tax Rate

Net Interest Income Rises 8.5 Percent From the Year Before

Noninterest Income Increases 7.9 Percent From a Year Earlier

Loan Balances Rise 4.9 Percent Over 12 Months

Net Income Increases 

27.5 Percent From a Year 

Earlier Due to Higher Net 

Operating Revenue and a 

Lower Effective Tax Rate

Aggregate net income for the 5,606 FDIC-insured commercial banks and savings institutions reporting first quarter performance totaled $56 billion in first quarter 2018, an 

increase of $12.1 billion (27.5 percent) from a year earlier.1 Improvement in net income was 

attributable to higher net operating revenue (the sum of net interest income and noninterest 

income) and a lower effective tax rate, but was offset in part by higher loan-loss provisions 

and noninterest expense. Using the effective tax rate before the new tax law, estimated net 

income would have been $49.4 billion, an increase of $5.5 billion (12.6 percent) from first 

quarter 2017.2 The average return on assets rose by 24 basis points from first quarter 2017 

to 1.28 percent. Less than 4 percent of institutions were unprofitable during the quarter, the 

lowest level since first quarter 1996.

Net Interest Income Rises 

8.5 Percent From the 

Year Before

Net interest income rose by $10.3 billion (8.5 percent), as more than four out of five banks 

(85.9 percent) reported an increase from 12 months ago. For the past seven consecutive 

quarters, the annual growth rate for net interest income has exceeded 7.4 percent. The net 

interest margin (NIM) increased from 3.19 percent in first quarter 2017 to 3.32 percent, due 

to growth in interest income as interest-bearing assets rose by 3.6 percent. The improvement in NIM was widespread, as more than two out of three banks (69.4 percent) reported 

increases from a year earlier.

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

10

20

30

40

50

60

123 412 3 412 341 234 1 2 3 4 1 2 3 4 1 2 3 4 1

2011 2012 2013 2014 2015 2016 2017

56.0

2018

28.7 28.5

35.2

25.3

34.8 34.5

37.5

34.4

40.3

38.2

36.1

39.8

37.3

40.1 38.5

36.5

39.8

43.0

40.4 40.6

39.0

43.6

45.6

43.243.9

48.1 47.9

25.3

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

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 2

1 One insured institution had not filed a March 31 Call Report at the time this report was prepared.

2 This estimate of net income applies the average effective quarterly tax rate between fourth quarter 2011 and third quarter 2017 to 

income before taxes and discontinued operations. 
2 0 1 8  •  Volume 1 2  • Number 2

2 FDIC QUARTERLY

Noninterest Income 

Increases 7.9 Percent From 

a Year Earlier

Over the past 12 months, noninterest income grew by $4.9 billion (7.9 percent) to 

$67.4 billion. This increase is the highest 12-month growth rate since third quarter 2014. 

The annual increase in noninterest income was led by higher trading revenue (up $1.1 billion, 

or 14.9 percent) and other noninterest income (up $2.4 billion, or 8.8 percent).3 More than 

half (55.1 percent) of all banks reported increases in noninterest income compared with 

first quarter 2017.

Noninterest Expense 

Increases 5.8 Percent From 

a Year Earlier

Noninterest expenses were $6.3 billion (5.8 percent) higher than first quarter 2017, as almost 

three out of four banks (74 percent) reported increases. Other noninterest expense rose by 

$3.7 billion (8.6 percent), and salary and employee benefits grew by $2.3 billion (4.3 percent). 

Average assets per employee increased from $8.2 million in first quarter 2017 to $8.4 million.

Provisions Increase 

Modestly From First 

Quarter 2017

In the first quarter, banks allocated $12.4 billion in loan-loss provisions, an increase of 

$356.6 million (3 percent) from a year earlier. Almost 37 percent of institutions reported 

higher loan-loss provisions than in first quarter 2017. The increase is due to higher net 

charge-offs, and a growing loan portfolio. Loan-loss provisions as a percent of net operating 

revenue totaled 6.2 percent for the first quarter, down from 6.6 percent a year ago.

Net Charge-Off Rate 

Remains Stable

Banks charged off $12.1 billion in uncollectable loans during the quarter, an increase of 

$540.6 million (4.7 percent) from a year earlier. The annual increase in net charge-offs 

was led by credit card balances (up $1.1 billion, or 16.3 percent). However, less than half 

(42.9 percent) of all banks reported a year-over-year increase, and net charge-offs were lower 

for most major loan categories. The average net-charge off rate remained stable (0.50 percent) 

from a year earlier.

Noncurrent Loan Rate 

Declines Modestly

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

$3.9 billion (3.4 percent) lower compared with the previous quarter. Slightly more than half 

(50.8 percent) of all banks reported declines in their noncurrent loan balances during the 

quarter. The decline in noncurrent loan balances was led by residential mortgages (down 

$2.8 billion, or 4.9 percent), commercial and industrial loans (down $617.2 million, or 

3.4 percent), and credit cards (down $436.4 million, or 3.7 percent). The average noncurrent 

rate declined by 5 basis points from the previous quarter to 1.15 percent. 

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

Noncurrent Loan Rate

Quarterly Net Charge-O Rate

0

1

2

3

4

5

6

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 3

Source: FDIC.

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

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio

All FDIC-Insured Institutions

0

50

100

150

200

250

300

350

400

450

0

20

40

60

80

100

120

140

160

180

 Loan-Loss Reserves ($) 

 Noncurrent Loans ($)

 Noncurrents Adjusted for GNMA Guaranteed Loans ($)

 Coverage Ratio (%) 

 Coverage Adjusted for GNMA Guaranteed Loans (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 4

3 Other noninterest income includes information technology costs, legal fees, consulting services, and audit fees.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Coverage Ratio Rises to 

110 Percent

Banks reduced their loan-loss reserves by $15 million from the previous quarter, with less 

than one-third (23.8 percent) of all banks reporting a quarterly decline. Banks with assets 

greater than $1 billion, which itemize their reserves, reported the largest quarterly increase 

in reserves for credit card losses (up $850.2 million, or 2.3 percent).4 Reserves declined for 

residential real estate losses (down $654.3 million, or 4.5 percent) and commercial loan 

losses (down $368.5 million, or 1.1 percent). With noncurrent loan balances declining at a 

faster quarterly rate than loan-loss reserves, the coverage ratio (loan-loss reserves to noncurrent loan balances) increased from 106.3 percent in fourth quarter 2017 to 110 percent. This 

marks the fourth consecutive quarter that the coverage ratio was above 100 percent.

Equity Capital Rises 

Modestly

Bank equity capital rose by $11.2 billion (0.6 percent) from the previous quarter. Retained 

earnings contributed $25.3 billion to equity growth, but were offset in part by the decline in 

the market value of available-for-sale securities, which reduced accumulated other comprehensive income by $25.8 billion. Declared dividends in the first quarter totaled $30.7 billion, 

an increase of $3.3 billion (12.2 percent) from the year-earlier quarter. At the end of the 

quarter, 99.5 percent of all insured institutions, which account for 99.98 percent of total 

industry assets, met or exceeded the requirements for the highest regulatory capital category 

as defined for Prompt Corrective Action purposes.

Banks Increase Their 

Federal Reserve 

Bank Balances

Total assets increased by $116.1 billion (0.7 percent) from the previous quarter. Balances 

at Federal Reserve banks increased by $41.9 billion (3.6 percent). The securities portfolio declined by $32.9 billion (0.9 percent) from the previous quarter, as available-for-sale 

accounts fell by $11 billion (0.4 percent) and held-to-maturity accounts were reduced by 

$26.7 billion (2.6 percent). This marks the first time since third quarter 2010 that securities 

held-to-maturity declined.

Held-to-Maturity Securities

Available-for-Sale Securities

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

80

-60

-40

-20

0

20

40

60

2013 2014 2015 2016 2017 2018

-55.1

Chart 5

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Source: FDIC.

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

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

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

for the quarter absent this change in accounting standards. 

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

-300

-200

-100

0

100

200

300

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

43

237

203

61

28

-6

-116-140

-109

-210

-107

-7-14

-126

67

24

-63

102

65

117

-37

74 91

38

178

51

149

185

95

197

99

182

72

-8

161

31

189

-133

134

70 53

112 99

164

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

221

Chart 6

4 Banks with assets greater than $1 billion represent almost 91 percent of total industry loan-loss reserves. 
2 0 1 8  •  Volume 1 2  • Number 2

4 FDIC QUARTERLY

Loan Balances Rise 

4.9 Percent Over 12 Months

Total loan and lease balances rose by $31.3 billion (0.3 percent) from fourth quarter 2017. 

Commercial and industrial loans increased by $38.6 billion (1.9 percent), nonfarm nonresidential loans grew by $11.5 billion (0.8 percent), and residential mortgage loans rose by 

$8.8 billion (0.4 percent). Credit card balances posted a seasonal decline of $44.6 billion 

(5.2 percent). Over the past 12 months, total loan and lease balances rose by $455.2 billion 

(4.9 percent), exceeding last quarter’s annual growth rate of 4.5 percent. Commercial and 

industrial loans increased by $91.8 billion (4.7 percent), residential mortgage loans grew 

by $87.8 billion (4.4 percent), credit card balances rose by $64.3 billion (8.5 percent), and 

nonfarm nonresidential loans increased by $56.1 billion (4.2 percent). Home equity lines of 

credit declined by $31.6 billion (7.3 percent) over the past 12 months. Unused loan commitments increased by 5.5 percent from a year earlier, the highest annual growth rate since 

first quarter 2016. 

Deposits Increase From the 

Previous Quarter

Total deposits grew by $129.7 billion (1 percent) in the first quarter. Domestic interestbearing deposits increased by $176.1 billion (2 percent), while noninterest-bearing deposits fell by $655.9 million (0.02 percent). Nondeposit liabilities declined by $24.1 billion 

(1.2 percent), led by other liabilities (down $30.7 billion, or 1.9 percent) and borrowings 

from Federal Home Loan Banks (down $28.6 billion, or 4.9 percent). Domestic deposits in 

accounts less than $250,000 rose by $169.7 billion (2.9 percent) from fourth quarter 2017.

Three New Charters Added 

in First Quarter 2018

There were 5,607 FDIC-insured commercial banks and savings institutions at the end of 

first quarter 2018, a decline from 5,670 the year before. The number of institutions on the 

FDIC’s “Problem Bank List” fell from 95 to 92. During the quarter, 65 institutions were 

absorbed by merger transactions, three new charters were added, and there were no failures.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6578

Source: FDIC.

Number Assets ($ Billions)

Number and Assets of Banks on the ‘Problem Bank List’ 

0

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

300

350

400

450

500

Number of Problem Banks

Problem Bank Assets

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 7
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2018** 2017** 2017 2016 2015 2014 2013

Return on assets (%) 1.28 1.04 0.97 1.04 1.04 1.01 1.07

Return on equity (%) 11.44 9.36 8.61 9.29 9.29 9.01 9.54

Core capital (leverage) ratio (%) 9.66 9.57 9.63 9.48 9.59 9.44 9.40

Noncurrent assets plus other real estate owned to assets (%) 0.69 0.81 0.72 0.86 0.97 1.20 1.63

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

Asset growth rate (%) 3.34 4.13 3.79 5.09 2.66 5.59 1.94

Net interest margin (%) 3.32 3.19 3.25 3.13 3.07 3.14 3.26

Net operating income growth (%) 28.14 13.52 -3.24 4.57 7.11 -0.73 12.82

Number of institutions reporting 5,606 5,856 5,670 5,913 6,182 6,509 6,812

Commercial banks 4,880 5,062 4,918 5,112 5,338 5,607 5,847

Savings institutions 726 794 752 801 844 902 965

Percentage of unprofitable institutions (%) 3.89 4.32 5.57 4.46 4.80 6.27 8.16

Number of problem institutions 92 112 95 123 183 291 467

Assets of problem institutions (in billions) $56 $24 $14 $28 $47 $87 $153

Number of failed institutions 0 3 8 5 8 18 24

* Excludes insured branches of foreign banks (IBAs).

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

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

(dollar figures in millions)  1st Quarter

2018

4th Quarter

2017

1st Quarter

2017

%Change 

17Q1-18Q1

Number of institutions reporting 5,606 5,670 5,856 -4.3

Total employees (full-time equivalent) 2,076,862 2,076,128 2,081,563 -0.2

CONDITION DATA

Total assets $17,531,466 $17,415,377 $16,965,542 3.3

Loans secured by real estate 4,795,158 4,773,641 4,626,271 3.7

 1-4 Family residential mortgages 2,072,605 2,063,782 1,984,814 4.4

 Nonfarm nonresidential 1,402,606 1,391,145 1,346,536 4.2

 Construction and development 344,189 338,318 319,233 7.8

 Home equity lines 398,436 411,152 429,988 -7.3

Commercial & industrial loans 2,051,912 2,013,292 1,960,091 4.7

Loans to individuals 1,634,565 1,677,991 1,545,190 5.8

 Credit cards 820,415 865,053 756,134 8.5

Farm loans 75,618 80,853 75,254 0.5

Other loans & leases 1,197,395 1,177,586 1,092,355 9.6

Less: Unearned income 2,283 2,290 2,034 12.2

Total loans & leases 9,752,364 9,721,072 9,297,126 4.9

Less: Reserve for losses 123,737 123,752 121,781 1.6

Net loans and leases 9,628,627 9,597,320 9,175,345 4.9

Securities 3,598,927 3,631,821 3,583,868 0.4

Other real estate owned 8,129 8,453 10,368 -21.6

Goodwill and other intangibles 388,719 383,383 370,338 5.0

All other assets 3,907,063 3,794,399 3,825,622 2.1

Total liabilities and capital 17,531,466 17,415,377 16,965,542 3.3

Deposits 13,528,840 13,399,154 13,083,807 3.4

 Domestic office deposits 12,256,800 12,081,403 11,812,761 3.8

 Foreign office deposits 1,272,040 1,317,751 1,271,046 0.1

Other borrowed funds 1,471,149 1,496,086 1,416,069 3.9

Subordinated debt 69,853 68,929 79,764 -12.4

All other liabilities 493,046 493,135 489,298 0.8

Total equity capital (includes minority interests) 1,968,579 1,958,072 1,896,602 3.8

 Bank equity capital 1,964,980 1,953,733 1,891,375 3.9

Loans and leases 30-89 days past due 63,139 67,582 61,369 2.9

Noncurrent loans and leases 112,489 116,425 124,958 -10.0

Restructured loans and leases 58,443 60,185 64,022 -8.7

Mortgage-backed securities 2,113,372 2,133,348 2,034,512 3.9

Earning assets 15,883,545 15,760,901 15,325,848 3.6

FHLB Advances 553,953 582,545 522,554 6.0

Unused loan commitments 7,721,846 7,516,027 7,319,365 5.5

Trust assets 20,360,228 20,333,867 18,210,185 11.8

Assets securitized and sold 656,289 677,871 731,228 -10.2

Notional amount of derivatives 205,986,323 173,483,932 180,496,035 14.1

INCOME DATA Full Year 2017 Full Year 2016 %Change

1st Quarter 

2018

1st Quarter 

2017

%Change 

17Q1-18Q1

Total interest income $572,280 $515,793 11.0 $154,939 $136,610 13.4

Total interest expense 73,254 54,391 34.7 23,592 15,529 51.9

Net interest income 499,026 461,402 8.2 131,347 121,081 8.5

Provision for loan and lease losses 51,125 48,108 6.3 12,397 12,041 3.0

Total noninterest income 255,253 253,641 0.6 67,420 62,500 7.9

Total noninterest expense 442,525 423,299 4.5 115,593 109,303 5.8

Securities gains (losses) 2,129 3,786 -43.8 242 549 -56.0

Applicable income taxes 97,961 76,015 28.9 14,940 18,801 -20.5

Extraordinary gains, net* -87 -323 N/M -8 -3 N/M

Total net income (includes minority interests) 164,710 171,086 -3.7 56,070 43,983 27.5

 Bank net income 164,374 170,745 -3.7 55,977 43,892 27.5

Net charge-offs 46,801 42,432 10.3 12,060 11,520 4.7

Cash dividends 121,367 102,761 18.1 30,650 27,318 12.2

Retained earnings 43,007 67,984 -36.7 25,327 16,574 52.8

Net operating income 163,286 168,748 -3.2 55,882 43,608 28.1

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 8  •  Volume 1 2  • Number 2

6 FDIC QUARTERLY

TABLE III-A. First Quarter 2018, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,606 11 5 1,355 2,934 412 61 273 497 58

Commercial banks 4,880 10 5 1,341 2,633 112 46 248 437 48

Savings institutions 726 1 0 14 301 300 15 25 60 10

Total assets (in billions) $17,531.5 $542.0 $4,278.6 $270.6 $6,143.4 $353.4 $278.1 $45.2 $86.2 $5,533.9

Commercial banks 16,327.8 462.4 4,278.6 265.4 5,633.4 100.9 166.8 41.1 73.4 5,305.9

Savings institutions 1,203.7 79.6 0.0 5.2 510.1 252.5 111.3 4.2 12.8 228.0

Total deposits (in billions) 13,528.8 297.7 3,106.5 225.3 4,845.7 275.0 232.8 36.7 73.3 4,435.8

Commercial banks 12,570.9 239.7 3,106.5 222.4 4,455.9 81.9 139.7 33.9 62.7 4,228.2

Savings institutions 957.9 58.0 0.0 2.8 389.9 193.1 93.2 2.8 10.5 207.7

Bank net income (in millions) 55,977 3,641 12,805 885 18,816 947 981 359 217 17,326

Commercial banks 51,903 3,149 12,805 853 17,149 364 689 177 196 16,521

Savings institutions 4,074 492 0 33 1,667 583 292 182 21 805

Performance Ratios (annualized, %)

Yield on earning assets 3.92 12.65 3.07 4.32 4.09 3.51 4.29 3.21 3.97 3.48

Cost of funding earning assets 0.60 1.76 0.59 0.59 0.58 0.60 0.59 0.36 0.46 0.50

Net interest margin 3.32 10.89 2.48 3.73 3.50 2.91 3.70 2.84 3.51 2.98

Noninterest income to assets 1.54 2.63 2.03 0.61 1.23 1.18 1.12 7.32 0.87 1.47

Noninterest expense to assets 2.65 5.60 2.51 2.52 2.71 2.57 2.44 6.06 2.87 2.38

Loan and lease loss provision to assets 0.28 3.65 0.18 0.09 0.17 -0.01 0.42 0.06 0.12 0.18

Net operating income to assets 1.28 2.64 1.20 1.31 1.23 1.06 1.42 3.22 1.01 1.25

Pretax return on assets 1.62 3.43 1.54 1.48 1.54 1.39 1.88 3.79 1.15 1.60

Return on assets 1.28 2.64 1.21 1.31 1.23 1.08 1.42 3.19 1.01 1.25

Return on equity 11.44 16.95 12.31 11.67 10.34 9.62 14.19 20.09 8.68 11.30

Net charge-offs to loans and leases 0.50 4.26 0.55 0.06 0.19 0.04 0.61 0.15 0.15 0.40

Loan and lease loss provision to 

net charge-offs 102.79 106.74 87.27 221.77 124.03 -31.00 95.65 142.11 143.91 92.59

Efficiency ratio 57.53 43.59 58.96 61.19 60.73 65.01 50.87 60.92 69.18 56.43

% of unprofitable institutions 3.89 0.00 0.00 2.80 3.14 7.77 3.28 8.42 5.43 6.90

% of institutions with earnings gains 74.19 81.82 100.00 69.67 78.80 68.69 80.33 67.40 66.00 77.59

Condition Ratios (%)

Earning assets to total assets 90.60 92.37 88.33 93.55 91.12 94.81 97.65 92.14 93.00 90.79

Loss allowance to:

Loans and leases 1.27 4.70 1.33 1.42 1.03 0.74 0.82 1.48 1.27 1.13

Noncurrent loans and leases 110.00 300.42 113.54 127.28 121.59 25.77 143.35 104.23 118.56 76.85

Noncurrent assets plus

other real estate owned to assets 0.69 1.25 0.44 0.87 0.69 1.77 0.42 0.55 0.81 0.77

Equity capital ratio 11.21 16.03 9.81 11.20 11.90 11.27 10.05 15.71 11.57 11.06

Core capital (leverage) ratio 9.66 13.50 8.75 11.08 10.19 11.05 10.23 15.52 11.87 9.13

Common equity tier 1 capital ratio 13.06 13.49 13.13 14.74 12.42 22.25 18.14 33.86 20.33 12.85

Tier 1 risk-based capital ratio 13.14 13.61 13.22 14.76 12.51 22.27 18.34 33.86 20.35 12.92

Total risk-based capital ratio 14.54 15.69 14.61 15.89 13.81 23.16 19.20 34.82 21.46 14.41

Net loans and leases to deposits 71.17 138.50 49.94 79.90 88.26 75.83 84.58 33.79 64.94 61.84

Net loans to total assets 54.92 76.07 36.26 66.51 69.61 59.00 70.82 27.43 55.20 49.57

Domestic deposits to total assets 69.91 54.00 47.80 83.24 78.60 77.53 83.72 81.19 84.99 76.76

Structural Changes

New reporters 3 0 0 0 0 0 0 3 0 0

Institutions absorbed by mergers 65 0 0 7 54 1 0 0 2 1

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

PRIOR FRST QUARTERS

(The way it was...)

Number of institutions 2017 5,856 13 4 1,399 2,987 454 61 309 563 66

 2015 6,419 15 4 1,464 3,150 557 58 387 713 71

 2013 7,019 16 5 1,491 3,483 619 49 450 827 79

Total assets (in billions) 2017 $16,965.5 $506.1 $4,001.0 $271.2 $5,730.6 $339.1 $258.2 $52.2 $102.7 $5,704.5

 2015 15,778.0 489.9 3,855.3 254.9 4,926.8 461.8 181.7 63.6 132.4 5,411.8

 2013 14,423.8 594.5 3,838.6 231.1 4,223.0 566.2 106.3 69.4 148.9 4,645.8

Return on assets (%) 2017 1.04 2.07 0.94 1.18 0.98 0.91 1.08 2.53 0.91 1.06

 2015 1.02 3.04 0.90 1.17 0.91 0.76 1.02 2.19 0.90 1.02

 2013 1.12 3.11 0.95 1.14 0.89 0.94 1.48 1.52 0.93 1.22

Net charge-offs to loans & leases (%) 2017 0.50 3.93 0.66 0.10 0.20 0.09 0.65 0.12 0.13 0.38

 2015 0.43 2.80 0.63 0.02 0.15 0.15 0.60 0.13 0.14 0.41

 2013 0.83 3.41 1.17 0.10 0.51 0.42 1.18 0.34 0.29 0.63

Noncurrent assets plus 

OREO to assets (%) 2017 0.81 1.14 0.56 0.84 0.82 1.92 0.68 0.56 0.90 0.86

 2015 1.10 0.83 0.78 0.80 1.06 1.94 1.11 0.70 1.31 1.33

 2013 2.08 1.04 1.30 1.07 2.12 2.57 0.92 1.05 1.68 2.85

Equity capital ratio (%) 2017 11.15 15.52 10.03 11.30 11.91 10.89 10.14 14.81 11.52 10.80

 2015 11.18 15.30 9.52 11.44 11.98 11.34 9.93 14.71 11.69 11.23

 2013 11.28 14.94 8.97 11.27 11.95 11.44 9.50 14.56 11.49 12.07

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

FDIC QUARTERLY 7

TABLE III-A. First Quarter 2018, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,606 1,392 3,453 629 123 9 684 656 1,208 1,425 1,214 419

Commercial banks 4,880 1,237 3,014 511 109 9 356 599 1,030 1,376 1,138 381

Savings institutions 726 155 439 118 14 0 328 57 178 49 76 38

Total assets (in billions) $17,531.5 $83.1 $1,130.3 $1,701.8 $5,827.3 $8,789.0 $3,273.9 $3,604.2 $3,969.6 $3,674.4 $1,102.8 $1,906.6

Commercial banks 16,327.8 74.3 964.4 1,356.4 5,143.6 8,789.0 2,838.6 3,502.9 3,859.6 3,633.9 965.8 1,527.0

Savings institutions 1,203.7 8.8 165.8 345.3 683.7 0.0 435.3 101.2 110.0 40.4 137.1 379.6

Total deposits (in billions) 13,528.8 69.7 946.4 1,361.8 4,464.9 6,686.2 2,480.0 2,863.9 2,952.8 2,816.3 904.1 1,511.6

Commercial banks 12,570.9 62.9 815.0 1,095.4 3,911.4 6,686.2 2,148.6 2,783.4 2,876.3 2,785.1 793.0 1,184.5

Savings institutions 957.9 6.7 131.3 266.4 553.5 0.0 331.4 80.6 76.6 31.2 111.1 327.1

Bank net income (in millions) 55,977 201 3,344 5,383 19,848 27,201 9,360 11,803 12,531 10,834 3,689 7,761

Commercial banks 51,903 176 2,862 4,493 17,171 27,201 8,397 11,560 12,172 10,715 3,216 5,842

Savings institutions 4,074 26 481 890 2,677 0 963 243 359 119 472 1,919

Performance Ratios (annualized, %)

Yield on earning assets 3.92 4.24 4.31 4.27 4.49 3.41 4.05 4.04 3.20 3.93 4.27 4.70

Cost of funding earning assets 0.60 0.50 0.56 0.60 0.70 0.54 0.73 0.52 0.51 0.65 0.48 0.65

Net interest margin 3.32 3.75 3.75 3.67 3.79 2.88 3.32 3.51 2.69 3.28 3.79 4.05

Noninterest income to assets 1.54 1.33 1.11 1.17 1.53 1.69 1.37 1.44 1.94 1.40 1.25 1.68

Noninterest expense to assets 2.65 3.58 3.11 2.77 2.74 2.49 2.54 2.61 2.66 2.60 2.96 2.80

Loan and lease loss provision to assets 0.28 0.11 0.11 0.19 0.48 0.19 0.37 0.30 0.12 0.26 0.15 0.57

Net operating income to assets 1.28 0.98 1.18 1.28 1.37 1.24 1.15 1.31 1.26 1.18 1.35 1.64

Pretax return on assets 1.62 1.09 1.39 1.61 1.76 1.57 1.45 1.68 1.59 1.51 1.62 2.13

Return on assets 1.28 0.97 1.19 1.28 1.37 1.24 1.15 1.31 1.27 1.18 1.35 1.64

Return on equity 11.44 7.37 10.54 10.88 11.24 11.89 9.30 10.90 12.23 11.77 11.74 14.23

Net charge-offs to loans and leases 0.50 0.16 0.08 0.18 0.74 0.46 0.62 0.56 0.24 0.53 0.20 0.73

Loan and lease loss provision to 

net charge-offs 102.79 121.59 197.16 151.56 106.63 88.90 106.07 94.03 95.75 92.77 112.92 124.47

Efficiency ratio 57.53 74.54 67.30 60.10 54.38 57.91 57.48 56.39 60.82 58.38 61.83 50.53

% of unprofitable institutions 3.89 9.55 2.20 1.27 0.81 0.00 4.82 5.49 4.47 2.81 2.97 4.53

% of institutions with earnings gains 74.19 63.22 75.82 86.01 91.06 88.89 78.95 76.52 70.86 71.72 74.38 80.19

Condition Ratios (%)

Earning assets to total assets 90.60 92.73 93.29 92.72 91.23 89.40 90.12 89.79 89.52 90.75 91.99 94.12

Loss allowance to:

Loans and leases 1.27 1.41 1.25 1.12 1.37 1.22 1.29 1.28 1.14 1.31 1.11 1.45

Noncurrent loans and leases 110.00 113.17 139.96 131.82 129.67 89.39 124.30 100.55 97.76 92.73 103.93 202.57

Noncurrent assets plus

other real estate owned to assets 0.69 1.02 0.83 0.70 0.68 0.67 0.63 0.79 0.62 0.79 0.82 0.47

Equity capital ratio 11.21 13.11 11.25 11.77 12.19 10.43 12.36 12.04 10.37 10.04 11.48 11.51

Core capital (leverage) ratio 9.66 13.19 11.24 10.88 10.39 8.70 10.31 9.54 9.18 9.02 10.28 10.70

Common equity tier 1 capital ratio 13.06 21.14 15.50 14.16 13.20 12.33 13.36 12.76 12.84 12.24 13.35 15.06

Tier 1 risk-based capital ratio 13.14 21.18 15.53 14.18 13.36 12.37 13.42 12.86 12.88 12.33 13.45 15.19

Total risk-based capital ratio 14.54 22.25 16.62 15.16 14.84 13.84 14.85 14.19 14.06 14.24 14.53 16.26

Net loans and leases to deposits 71.17 69.68 80.92 86.75 78.83 61.52 73.50 71.68 66.22 68.36 78.47 76.93

Net loans to total assets 54.92 58.38 67.76 69.42 60.40 46.80 55.68 56.96 49.26 52.40 64.33 60.99

Domestic deposits to total assets 69.91 83.78 83.72 79.77 73.66 63.61 69.22 76.90 64.98 60.91 81.93 78.57

Structural Changes

New reporters 3 3 0 0 0 0 0 1 0 0 0 2

Institutions absorbed by mergers 65 17 38 10 0 0 11 8 7 11 23 5

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

PRIOR FIRST QUARTERS

(The way it was...)

Number of institutions 2017 5,856 1,501 3,605 632 109 9 719 708 1,253 1,471 1,264 441

 2015 6,419 1,830 3,895 582 103 9 796 797 1,386 1,585 1,351 504

 2013 7,019 2,161 4,196 553 102 7 867 894 1,500 1,701 1,480 577

Total assets (in billions) 2017 $16,965.5 $88.9 $1,166.2 $1,763.5 $5,363.5 $8,583.4 $3,114.5 $3,539.0 $3,839.3 $3,679.1 $1,032.1 $1,761.6

 2015 15,778.0 107.6 1,219.7 1,572.9 4,684.3 8,193.5 3,020.2 3,273.1 3,633.2 3,424.9 923.6 1,503.1

 2013 14,423.8 126.0 1,270.8 1,423.8 4,705.9 6,897.3 2,862.3 3,017.0 3,345.3 3,068.2 870.9 1,260.0

Return on assets (%) 2017 1.04 0.90 1.04 1.09 1.06 1.02 0.92 0.99 0.98 1.08 1.15 1.36

 2015 1.02 0.86 1.01 1.05 1.03 1.01 0.83 0.98 0.94 1.16 1.03 1.35

 2013 1.12 0.73 0.87 1.09 1.10 1.19 0.86 1.11 1.09 1.25 1.09 1.49

Net charge-offs to loans & leases (%) 2017 0.50 0.14 0.12 0.20 0.71 0.49 0.52 0.58 0.34 0.51 0.28 0.67

 2015 0.43 0.15 0.11 0.20 0.53 0.50 0.46 0.52 0.27 0.54 0.16 0.46

 2013 0.83 0.27 0.33 0.43 1.06 0.88 1.10 0.83 0.55 1.05 0.37 0.65

Noncurrent assets plus 

OREO to assets (%) 2017 0.81 1.09 0.93 0.81 0.75 0.82 0.69 0.97 0.73 0.92 0.99 0.51

 2015 1.10 1.39 1.33 1.15 0.84 1.20 0.82 1.37 1.04 1.36 1.12 0.61

 2013 2.08 2.04 2.30 2.17 1.36 2.50 1.41 3.03 1.87 2.34 2.00 1.28

Equity capital ratio (%) 2017 11.15 12.86 11.19 11.59 12.08 10.45 12.29 12.04 10.30 9.89 10.94 11.94

 2015 11.18 12.45 11.28 11.87 12.47 10.28 11.76 12.47 9.89 10.25 11.08 12.53

 2013 11.28 11.97 11.00 11.84 12.63 10.28 12.26 12.22 9.12 11.03 10.81 13.41

* See Table V-A (page 11) for explanations.
2 0 1 8  •  Volume 1 2  • Number 2

8 FDIC QUARTERLY

TABLE IV-A. Full Year 2017, All FDIC-Insured Institutions

Asset Concentration Groups*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 5,670 11 5 1,390 2,943 420 59 272 510 60

Commercial banks 4,918 10 5 1,376 2,632 105 45 245 448 52

Savings institutions 752 1 0 14 311 315 14 27 62 8

Total assets (in billions) $17,415.4 $562.7 $4,196.0 $282.6 $6,025.9 $349.2 $270.9 $46.9 $88.9 $5,592.2

Commercial banks 16,217.8 483.6 4,196.0 277.4 5,545.8 95.3 163.1 42.7 76.8 5,337.3

Savings institutions 1,197.5 79.2 0.0 5.3 480.1 254.0 107.8 4.2 12.1 254.9

Total deposits (in billions) 13,399.2 309.7 3,064.1 234.1 4,733.5 274.4 227.6 38.0 74.8 4,442.8

Commercial banks 12,467.5 251.9 3,064.1 231.3 4,374.3 81.2 137.7 35.1 65.0 4,227.0

Savings institutions 931.6 57.8 0.0 2.9 359.2 193.3 89.9 2.9 9.8 215.8

Bank net income (in millions) 164,374 7,837 25,587 2,898 59,459 3,151 2,678 1,205 799 60,761

Commercial banks 151,772 6,274 25,587 2,786 54,236 1,357 1,907 621 722 58,281

Savings institutions 12,602 1,563 0 112 5,223 1,793 771 584 76 2,479

Performance Ratios (%)

Yield on earning assets 3.73 12.45 2.91 4.24 3.89 3.31 4.02 3.08 3.89 3.31

Cost of funding earning assets 0.48 1.54 0.49 0.52 0.47 0.48 0.46 0.33 0.41 0.37

Net interest margin 3.25 10.92 2.43 3.72 3.42 2.83 3.56 2.75 3.48 2.93

Noninterest income to assets 1.50 2.44 1.82 0.64 1.27 1.31 1.18 6.36 0.92 1.46

Noninterest expense to assets 2.60 5.32 2.42 2.67 2.73 2.51 2.45 5.52 2.91 2.33

Loan and lease loss provision to assets 0.30 3.92 0.19 0.15 0.16 0.00 0.46 0.06 0.10 0.21

Net operating income to assets 0.96 1.52 0.61 1.04 1.02 0.91 1.02 2.58 0.91 1.09

Pretax return on assets 1.54 3.19 1.34 1.30 1.49 1.51 1.76 3.35 1.15 1.59

Return on assets 0.97 1.52 0.62 1.05 1.02 0.94 1.02 2.61 0.91 1.10

Return on equity 8.61 9.84 6.21 9.26 8.56 8.40 10.20 17.37 7.66 9.98

Net charge-offs to loans and leases 0.50 3.95 0.56 0.16 0.21 0.04 0.60 0.23 0.15 0.43

Loan and lease loss provision to 

net charge-offs 109.24 124.63 95.36 134.52 113.81 5.10 106.58 90.99 111.51 95.52

Efficiency ratio 57.93 42.09 60.65 64.66 61.62 62.64 51.68 62.01 69.94 55.73

% of unprofitable institutions 5.57 0.00 0.00 3.17 5.50 10.24 8.47 10.29 6.27 3.33

% of institutions with earnings gains 55.84 27.27 40.00 54.53 57.59 50.48 47.46 53.68 55.10 68.33

Condition Ratios (%)

Earning assets to total assets 90.50 92.20 88.39 93.02 90.93 94.74 97.52 92.30 92.73 90.66

Loss allowance to:

Loans and leases 1.27 4.39 1.36 1.40 1.03 0.75 0.83 1.43 1.26 1.14

Noncurrent loans and leases 106.29 284.47 107.71 145.07 119.72 27.72 169.94 105.91 113.86 73.16

Noncurrent assets plus

other real estate owned to assets 0.72 1.25 0.48 0.77 0.70 1.70 0.36 0.59 0.81 0.82

Equity capital ratio 11.22 15.10 9.83 11.18 11.95 11.22 10.00 15.26 11.94 11.09

Core capital (leverage) ratio 9.63 13.12 8.66 10.89 10.16 10.90 10.12 14.73 11.84 9.19

Common equity tier 1 capital ratio 13.11 12.75 13.33 14.41 12.38 21.82 17.93 32.08 20.30 13.06

Tier 1 risk-based capital ratio 13.19 12.87 13.41 14.42 12.47 21.83 18.14 32.08 20.32 13.13

Total risk-based capital ratio 14.58 14.97 14.76 15.54 13.78 22.75 19.00 33.06 21.45 14.60

Net loans and leases to deposits 71.63 140.71 49.89 80.59 88.51 75.67 84.86 34.48 65.93 62.82

Net loans to total assets 55.11 77.45 36.44 66.76 69.53 59.46 71.30 27.95 55.47 49.91

Domestic deposits to total assets 69.37 54.42 48.25 82.84 78.27 78.29 84.00 81.07 84.13 74.85

Structural Changes

New reporters 5 0 0 0 3 0 0 2 0 0

Institutions absorbed by mergers 230 0 0 33 176 8 0 1 10 2

Failed institutions 8 0 0 1 4 2 0 0 1 0

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2016 5,913 13 5 1,429 3,025 462 65 300 549 65

 2014 6,509 15 3 1,515 3,222 553 52 374 708 67

 2012 7,083 19 5 1,537 3,499 659 51 414 826 73

Total assets (in billions) 2016 $16,779.6 $519.0 $4,052.7 $284.9 $5,628.2 $331.5 $256.0 $51.1 $97.5 $5,558.7

 2014 15,553.7 484.2 3,735.6 273.5 4,878.5 439.6 175.9 61.9 129.1 5,375.5

 2012 14,450.4 600.7 3,808.4 239.8 4,338.9 628.3 101.6 64.9 145.8 4,522.0

Return on assets (%) 2016 1.04 2.27 0.93 1.21 0.97 0.99 0.96 2.85 0.92 1.06

 2014 1.01 3.22 0.72 1.17 0.94 0.96 1.05 2.20 0.86 1.06

 2012 1.00 3.13 0.80 1.27 0.89 0.87 1.46 1.23 0.86 1.00

Net charge-offs to loans & leases (%) 2016 0.47 3.34 0.55 0.15 0.22 0.07 0.56 0.22 0.19 0.41

 2014 0.49 2.81 0.73 0.13 0.24 0.21 0.62 0.34 0.25 0.41

 2012 1.10 3.69 1.41 0.24 0.74 0.82 1.31 0.45 0.45 0.94

Noncurrent assets plus 

OREO to assets (%) 2016 0.86 1.14 0.61 0.77 0.87 1.97 0.70 0.63 0.94 0.96

 2014 1.20 0.88 0.85 0.83 1.17 2.19 1.19 0.73 1.39 1.43

 2012 2.20 1.11 1.39 1.11 2.21 2.70 0.88 1.04 1.67 3.06

Equity capital ratio (%) 2016 11.10 14.84 9.97 11.30 11.81 11.28 10.04 15.24 11.41 10.85

 2014 11.15 15.13 9.45 11.42 11.97 12.07 9.88 14.78 11.81 11.11

 2012 11.17 14.67 8.93 11.14 11.93 11.09 9.57 14.27 11.47 11.85

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

FDIC QUARTERLY 9

TABLE IV-A. Full Year 2017, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

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

Commercial banks 4,918 1,238 3,062 509 100 9 362 606 1,019 1,389 1,158 384

Savings institutions 752 169 451 118 14 0 331 62 195 49 77 38

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

Commercial banks 16,217.8 74.2 984.2 1,411.7 5,021.1 8,726.6 2,811.4 3,498.4 3,806.6 3,641.9 955.9 1,503.7

Savings institutions 1,197.5 9.5 170.0 340.0 678.1 0.0 436.7 102.6 111.5 41.2 134.1 371.5

Total deposits (in billions) 13,399.2 70.0 961.8 1,390.1 4,340.0 6,637.2 2,462.4 2,828.3 2,928.1 2,819.2 889.0 1,472.2

Commercial banks 12,467.5 62.6 827.8 1,131.8 3,808.1 6,637.2 2,130.3 2,747.0 2,851.1 2,788.8 781.0 1,169.5

Savings institutions 931.6 7.4 134.0 258.3 531.9 0.0 332.1 81.3 77.0 30.4 108.0 302.7

Bank net income (in millions) 164,374 685 11,686 17,691 57,377 76,935 26,827 35,146 38,508 28,007 11,697 24,190

Commercial banks 151,772 639 10,143 14,849 49,207 76,935 23,700 34,552 37,286 27,624 10,311 18,299

Savings institutions 12,602 47 1,544 2,841 8,170 0 3,126 594 1,221 383 1,386 5,892

Performance Ratios (%)

Yield on earning assets 3.73 4.18 4.24 4.14 4.21 3.26 3.85 3.85 3.00 3.82 4.10 4.41

Cost of funding earning assets 0.48 0.46 0.50 0.50 0.55 0.42 0.59 0.40 0.40 0.55 0.39 0.49

Net interest margin 3.25 3.72 3.74 3.64 3.66 2.83 3.26 3.44 2.60 3.27 3.71 3.92

Noninterest income to assets 1.50 1.18 1.15 1.24 1.53 1.58 1.33 1.45 1.85 1.25 1.35 1.74

Noninterest expense to assets 2.60 3.46 3.13 2.79 2.68 2.44 2.55 2.58 2.58 2.51 3.00 2.73

Loan and lease loss provision to assets 0.30 0.14 0.13 0.21 0.50 0.21 0.39 0.35 0.13 0.27 0.20 0.53

Net operating income to assets 0.96 0.82 1.03 1.04 1.04 0.89 0.85 1.00 1.00 0.75 1.12 1.34

Pretax return on assets 1.54 1.02 1.38 1.63 1.67 1.47 1.32 1.61 1.47 1.44 1.57 2.17

Return on assets 0.97 0.83 1.04 1.05 1.04 0.89 0.85 1.00 1.00 0.77 1.12 1.36

Return on equity 8.61 6.38 9.21 8.99 8.59 8.49 6.93 8.24 9.61 7.67 9.99 11.43

Net charge-offs to loans and leases 0.50 0.21 0.15 0.22 0.71 0.47 0.58 0.61 0.27 0.51 0.28 0.67

Loan and lease loss provision to 

net charge-offs 109.24 110.34 128.65 131.35 118.11 94.37 121.03 99.55 94.34 102.10 111.10 129.14

Efficiency ratio 57.93 74.93 67.39 59.76 54.45 58.58 59.08 56.29 61.40 58.67 62.25 49.83

% of unprofitable institutions 5.57 10.73 4.30 1.75 2.63 0.00 7.65 9.73 5.93 3.34 4.29 5.92

% of institutions with earnings gains 55.84 53.30 55.68 60.93 63.16 66.67 51.08 53.59 56.51 55.08 59.19 58.06

Condition Ratios (%)

Earning assets to total assets 90.50 92.36 93.04 92.35 91.16 89.35 90.06 89.74 89.48 90.55 91.73 94.02

Loss allowance to:

Loans and leases 1.27 1.39 1.25 1.10 1.38 1.24 1.29 1.29 1.16 1.32 1.11 1.43

Noncurrent loans and leases 106.29 115.59 141.50 141.33 127.25 83.87 120.77 96.48 96.65 86.08 107.20 209.24

Noncurrent assets plus

other real estate owned to assets 0.72 1.01 0.83 0.66 0.70 0.73 0.65 0.83 0.64 0.86 0.81 0.45

Equity capital ratio 11.22 13.01 11.29 11.82 12.13 10.47 12.34 12.06 10.42 9.99 11.49 11.58

Core capital (leverage) ratio 9.63 12.91 11.10 10.72 10.38 8.69 10.31 9.55 9.14 8.92 10.21 10.71

Common equity tier 1 capital ratio 13.11 20.56 15.35 13.85 13.14 12.54 13.28 12.81 12.97 12.44 13.15 15.00

Tier 1 risk-based capital ratio 13.19 20.59 15.39 13.87 13.31 12.58 13.36 12.91 13.02 12.51 13.25 15.14

Total risk-based capital ratio 14.58 21.66 16.48 14.87 14.77 14.04 14.72 14.27 14.22 14.38 14.32 16.22

Net loans and leases to deposits 71.63 70.55 81.31 87.90 78.96 62.03 73.67 73.07 66.04 68.57 79.38 77.70

Net loans to total assets 55.11 58.99 67.76 69.76 60.13 47.18 55.85 57.39 49.35 52.49 64.74 61.01

Domestic deposits to total assets 69.37 83.61 83.33 79.12 72.91 63.12 68.90 75.98 65.31 59.72 81.51 77.89

Structural Changes

New reporters 5 3 1 1 0 0 0 1 0 0 3 1

Institutions absorbed by mergers 230 55 137 35 3 0 34 42 52 42 40 20

Failed institutions 8 3 3 2 0 0 1 0 4 1 1 1

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2016 5,913 1,541 3,637 621 105 9 724 720 1,271 1,485 1,268 445

 2014 6,509 1,871 3,957 574 98 9 807 812 1,406 1,599 1,372 513

 2012 7,083 2,204 4,217 555 99 8 873 904 1,515 1,716 1,490 585

Total assets (in billions) 2016 $16,779.6 $91.5 $1,173.9 $1,761.8 $5,305.7 $8,446.8 $3,096.4 $3,507.3 $3,784.3 $3,633.8 $1,010.7 $1,747.0

 2014 15,553.7 109.7 1,232.1 1,576.4 4,534.2 8,101.3 2,956.4 3,217.9 3,595.8 3,404.0 904.4 1,475.2

 2012 14,450.4 128.1 1,275.0 1,454.7 4,468.7 7,123.9 2,896.1 3,056.1 3,298.1 3,068.7 870.4 1,261.0

Return on assets (%) 2016 1.04 0.89 1.08 1.01 1.07 1.03 0.87 1.02 1.00 1.09 1.02 1.40

 2014 1.01 0.79 1.00 1.09 1.09 0.95 0.83 1.00 0.88 1.07 1.14 1.49

 2012 1.00 0.68 0.80 1.13 1.13 0.94 0.96 0.77 0.90 1.10 1.01 1.72

Net charge-offs to loans & leases (%) 2016 0.47 0.21 0.14 0.25 0.64 0.47 0.52 0.54 0.27 0.53 0.31 0.58

 2014 0.49 0.23 0.23 0.27 0.60 0.54 0.55 0.54 0.36 0.60 0.23 0.47

 2012 1.10 0.43 0.64 0.73 1.30 1.17 1.24 1.19 0.85 1.37 0.56 0.84

Noncurrent assets plus 

OREO to assets (%) 2016 0.86 1.10 0.96 0.84 0.78 0.90 0.70 1.03 0.79 1.00 1.06 0.53

 2014 1.20 1.45 1.38 1.41 0.83 1.32 0.89 1.55 1.11 1.46 1.18 0.65

 2012 2.20 2.10 2.37 2.46 1.40 2.61 1.46 3.23 2.00 2.45 2.05 1.38

Equity capital ratio (%) 2016 11.10 12.70 11.14 11.55 11.87 10.50 12.11 12.05 10.32 9.87 10.92 11.79

 2014 11.15 12.28 11.20 11.90 12.39 10.28 11.81 12.45 9.80 10.20 11.06 12.47

 2012 11.17 12.00 10.90 11.77 12.37 10.32 12.18 12.03 9.10 10.86 10.70 13.24

* See Table V-A (page 11) for explanations.
2 0 1 8  •  Volume 1 2  • Number 2

10 FDIC QUARTERLY

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

Asset Concentration Groups*

March 31, 2018 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.66 0.17 0.79 0.80 0.46 0.86 0.34 1.28 1.16 1.00

Construction and development 0.38 0.00 0.09 0.60 0.35 0.56 0.51 1.03 0.72 0.55

Nonfarm nonresidential 0.32 0.00 0.37 0.58 0.28 0.27 0.27 0.98 0.96 0.40

Multifamily residential real estate 0.12 0.00 0.05 0.35 0.14 0.15 0.04 0.43 0.57 0.08

Home equity loans 0.66 0.00 0.99 0.35 0.50 0.55 0.31 0.49 0.71 0.80

Other 1-4 family residential 1.05 0.18 1.11 1.09 0.81 0.98 0.35 1.67 1.40 1.39

Commercial and industrial loans 0.29 0.96 0.35 0.98 0.29 0.51 0.27 0.94 1.03 0.22

Loans to individuals 1.32 1.45 1.09 1.21 1.17 0.98 0.71 1.47 1.66 1.59

Credit card loans 1.28 1.46 1.10 1.18 0.99 0.78 0.68 1.26 2.15 1.19

Other loans to individuals 1.37 1.33 1.06 1.21 1.19 1.00 0.72 1.48 1.64 1.84

All other loans and leases (including farm) 0.31 0.62 0.29 1.52 0.24 0.19 0.04 0.75 0.56 0.29

Total loans and leases 0.65 1.43 0.62 0.99 0.46 0.81 0.53 1.23 1.15 0.79

Percent of Loans Noncurrent**

All real estate loans 1.60 0.81 2.22 1.08 0.89 3.03 0.80 1.57 1.12 2.79

Construction and development 0.47 0.00 0.27 0.70 0.49 0.39 0.61 2.33 0.99 0.37

Nonfarm nonresidential 0.61 0.00 0.48 1.02 0.58 0.68 0.60 1.21 1.25 0.67

Multifamily residential real estate 0.15 0.00 0.07 0.21 0.16 0.46 0.18 1.68 0.61 0.13

Home equity loans 2.45 73.35 4.24 0.39 1.25 1.19 1.64 0.47 0.44 3.82

Other 1-4 family residential 2.61 0.68 3.03 0.85 1.49 3.64 0.76 1.67 1.14 3.86

Commercial and industrial loans 0.85 0.88 0.84 1.37 0.97 4.44 0.39 1.44 0.99 0.65

Loans to individuals 0.96 1.59 0.89 0.52 0.74 0.46 0.53 0.86 1.17 0.70

Credit card loans 1.40 1.64 1.17 0.40 0.98 0.76 1.28 0.47 1.03 1.22

Other loans to individuals 0.51 0.67 0.32 0.53 0.71 0.43 0.36 0.88 1.17 0.39

All other loans and leases (including farm) 0.22 0.47 0.09 1.19 0.33 0.18 0.04 0.66 0.46 0.17

Total loans and leases 1.15 1.56 1.17 1.12 0.85 2.86 0.57 1.42 1.07 1.47

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.02 0.11 0.06 0.00 0.02 0.01 -0.02 0.06 0.01 0.00

Construction and development -0.03 0.00 0.00 -0.14 -0.04 0.01 0.01 0.42 -0.19 -0.02

Nonfarm nonresidential 0.01 0.00 -0.01 -0.01 0.03 -0.03 0.04 0.00 -0.01 -0.03

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

Home equity loans 0.11 8.90 0.23 -0.08 0.10 -0.10 -0.05 -0.07 0.02 0.10

Other 1-4 family residential 0.02 0.10 0.06 0.03 0.02 0.02 -0.02 0.07 0.04 0.00

Commercial and industrial loans 0.28 2.94 0.27 0.16 0.32 -0.04 0.37 -0.04 0.88 0.17

Loans to individuals 2.43 4.32 2.63 0.51 1.16 1.12 1.05 0.61 0.60 1.92

Credit card loans 3.89 4.41 3.51 2.47 3.38 2.56 2.95 1.09 1.81 3.38

Other loans to individuals 0.90 2.35 0.78 0.33 0.84 0.98 0.60 0.59 0.56 1.02

All other loans and leases (including farm) 0.12 1.19 0.05 0.13 0.14 0.15 0.00 0.69 0.19 0.15

Total loans and leases 0.50 4.26 0.55 0.06 0.19 0.04 0.61 0.15 0.15 0.40

Loans Outstanding (in billions)

All real estate loans $4,795.2 $0.5 $574.2 $114.8 $2,653.0 $187.5 $62.5 $8.8 $36.9 $1,156.9

Construction and development 344.2 0.0 17.4 6.5 257.2 5.8 0.5 0.7 2.3 53.7

Nonfarm nonresidential 1,402.6 0.0 50.1 30.7 1,034.2 16.8 4.5 2.9 8.6 254.8

Multifamily residential real estate 411.0 0.0 77.1 3.7 278.0 4.8 1.2 0.2 1.0 45.0

Home equity loans 398.4 0.0 51.2 2.3 200.4 11.0 4.7 0.3 1.5 127.1

Other 1-4 family residential 2,072.6 0.4 328.5 27.7 836.3 148.2 51.5 4.1 20.4 655.4

Commercial and industrial loans 2,051.9 16.3 344.9 20.9 992.9 6.1 9.8 1.6 4.1 655.4

Loans to individuals 1,634.6 415.0 269.5 6.0 347.3 4.0 112.8 1.6 4.1 474.2

Credit card loans 820.4 395.0 181.1 0.5 43.2 0.4 20.8 0.1 0.1 179.2

Other loans to individuals 814.1 20.0 88.4 5.5 304.1 3.7 92.0 1.5 4.0 295.0

All other loans and leases (including farm) 1,273.0 0.8 384.2 40.9 329.4 12.5 13.6 0.6 3.0 488.0

Total loans and leases (plus unearned income) 9,754.6 432.6 1,572.7 182.6 4,322.6 210.2 198.7 12.6 48.2 2,774.5

Memo: Other Real Estate Owned (in millions)

All other real estate owned 8,129.2 0.2 498.1 314.9 5,243.1 242.3 32.4 69.5 178.0 1,550.7

Construction and development 2,314.7 0.0 5.2 70.4 1,934.6 50.3 4.8 29.4 53.2 166.6

Nonfarm nonresidential 2,290.7 0.0 67.0 107.5 1,691.9 20.3 6.1 22.8 56.1 319.1

Multifamily residential real estate 123.8 0.0 0.0 13.3 82.1 13.3 0.0 1.0 3.8 10.2

1-4 family residential 2,839.5 0.2 300.9 53.1 1,424.7 122.5 20.6 14.9 60.0 842.6

Farmland 182.9 0.0 0.0 70.5 72.0 2.4 0.9 1.1 4.5 31.4

GNMA properties 344.6 0.0 94.0 0.0 37.8 33.4 0.0 0.2 0.4 178.9

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

March 31, 2018 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.66 1.20 0.64 0.38 0.52 0.94 0.51 0.75 0.66 0.96 0.62 0.36

Construction and development 0.38 0.74 0.51 0.43 0.31 0.34 0.49 0.41 0.20 0.40 0.39 0.37

Nonfarm nonresidential 0.32 0.94 0.47 0.29 0.23 0.37 0.37 0.22 0.31 0.44 0.37 0.21

Multifamily residential real estate 0.12 0.75 0.27 0.09 0.15 0.05 0.14 0.13 0.10 0.10 0.10 0.11

Home equity loans 0.66 0.78 0.49 0.38 0.50 0.85 0.53 0.79 0.72 0.71 0.48 0.31

Other 1-4 family residential 1.05 1.59 0.89 0.57 0.89 1.34 0.77 1.19 0.98 1.48 1.16 0.55

Commercial and industrial loans 0.29 1.22 0.65 0.46 0.25 0.25 0.24 0.23 0.29 0.30 0.48 0.37

Loans to individuals 1.32 1.66 1.20 1.29 1.23 1.42 1.14 1.76 0.97 1.31 0.83 1.32

Credit card loans 1.28 4.23 1.92 2.98 1.36 1.12 1.16 1.39 1.10 1.16 0.66 1.63

Other loans to individuals 1.37 1.61 1.16 0.99 1.07 1.72 1.10 2.13 0.92 1.55 0.91 1.04

All other loans and leases (including farm) 0.31 1.09 0.98 0.51 0.28 0.27 0.09 0.23 0.38 0.31 0.31 0.81

Total loans and leases 0.65 1.22 0.69 0.46 0.60 0.73 0.54 0.75 0.57 0.76 0.59 0.63

Percent of Loans Noncurrent** 

All real estate loans 1.60 1.25 0.88 0.74 1.27 2.63 1.27 2.00 1.80 2.34 1.04 0.48

Construction and development 0.47 0.95 0.98 0.58 0.27 0.31 0.51 0.72 0.43 0.38 0.37 0.39

Nonfarm nonresidential 0.61 1.47 0.78 0.61 0.53 0.59 0.72 0.59 0.66 0.64 0.60 0.39

Multifamily residential real estate 0.15 1.03 0.44 0.15 0.11 0.10 0.15 0.18 0.15 0.15 0.25 0.07

Home equity loans 2.45 0.41 0.57 0.62 1.27 3.99 2.33 3.09 2.38 2.91 1.06 0.63

Other 1-4 family residential 2.61 1.26 0.97 1.11 2.32 3.63 2.07 3.03 2.69 3.81 2.10 0.57

Commercial and industrial loans 0.85 1.57 1.09 1.51 0.92 0.65 0.83 0.71 0.76 0.80 1.51 1.07

Loans to individuals 0.96 0.85 0.66 0.85 1.13 0.79 1.06 1.08 0.55 0.93 0.82 1.02

Credit card loans 1.40 2.68 1.69 2.99 1.53 1.17 1.33 1.45 1.18 1.23 1.26 1.80

Other loans to individuals 0.51 0.82 0.60 0.47 0.60 0.42 0.64 0.72 0.30 0.47 0.62 0.33

All other loans and leases (including farm) 0.22 1.13 0.87 0.44 0.29 0.12 0.22 0.15 0.15 0.27 0.36 0.39

Total loans and leases 1.15 1.24 0.89 0.85 1.06 1.37 1.04 1.28 1.17 1.41 1.07 0.71

Percent of Loans Charged-Off (net, YTD) 

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

Construction and development -0.03 0.02 -0.02 -0.06 -0.04 -0.02 0.01 -0.05 -0.02 -0.06 -0.01 -0.12

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

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

Home equity loans 0.11 0.03 0.02 0.03 0.10 0.14 0.14 0.14 0.12 0.06 0.02 0.02

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

Commercial and industrial loans 0.28 0.44 0.22 0.30 0.40 0.19 0.42 0.21 0.21 0.25 0.24 0.47

Loans to individuals 2.43 0.91 0.90 1.95 2.76 2.17 2.66 2.46 1.47 2.77 1.56 2.66

Credit card loans 3.89 18.97 6.69 7.78 4.16 3.41 3.63 4.04 3.68 3.63 2.83 4.76

Other loans to individuals 0.90 0.56 0.52 0.89 0.87 0.97 1.08 0.84 0.57 1.40 0.98 0.74

All other loans and leases (including farm) 0.12 0.27 0.15 0.16 0.10 0.12 0.11 0.13 0.11 0.11 0.13 0.11

Total loans and leases 0.50 0.16 0.08 0.18 0.74 0.46 0.62 0.56 0.24 0.53 0.20 0.73

Loans Outstanding (in billions) 

All real estate loans $4,795.2 $34.1 $601.3 $877.0 $1,615.7 $1,667.1 $979.5 $913.7 $999.5 $867.7 $462.5 $572.1

Construction and development 344.2 2.0 56.2 81.5 132.7 71.7 64.3 59.5 58.4 52.7 71.9 37.4

Nonfarm nonresidential 1,402.6 8.6 228.7 358.3 520.0 287.1 320.7 273.0 216.4 194.3 192.9 205.4

Multifamily residential real estate 411.0 1.0 33.2 97.4 159.5 119.9 147.4 42.2 108.0 33.9 20.3 59.2

Home equity loans 398.4 0.9 23.1 42.1 143.1 189.3 79.2 100.4 98.8 71.0 20.9 28.2

Other 1-4 family residential 2,072.6 15.4 209.4 275.1 642.8 929.9 363.5 424.1 494.4 422.1 138.6 229.9

Commercial and industrial loans 2,051.9 5.8 96.9 184.1 769.2 995.9 310.6 495.0 450.0 425.4 140.7 230.1

Loans to individuals 1,634.6 3.1 31.1 71.9 800.9 727.5 353.3 402.0 224.8 309.8 63.7 280.9

Credit card loans 820.4 0.1 1.9 10.9 452.9 354.6 215.7 200.2 64.3 188.6 19.7 131.9

Other loans to individuals 814.1 3.1 29.3 60.9 348.0 372.9 137.6 201.9 160.5 121.2 44.0 149.0

All other loans and leases (including farm) 1,273.0 6.2 46.5 62.3 383.6 774.4 203.8 268.8 303.7 348.7 50.7 97.3

Total loans and leases 

(plus unearned income) 9,754.6 49.2 775.9 1,195.2 3,569.4 4,164.9 1,847.3 2,079.6 1,978.1 1,951.6 717.6 1,180.4

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 8,129.2 231.1 2,424.5 1,806.5 1,924.8 1,742.3 1,506.0 1,870.3 1,516.8 1,412.0 1,350.9 473.2

Construction and development 2,314.7 61.6 1,051.7 646.7 379.4 175.2 246.9 624.7 286.6 435.2 555.4 166.0

Nonfarm nonresidential 2,290.7 66.8 793.6 613.0 511.0 306.2 435.3 487.5 424.9 353.0 456.1 133.9

Multifamily residential real estate 123.8 7.8 51.1 35.0 18.3 11.6 22.0 36.7 17.3 29.8 9.7 8.3

1-4 family residential 2,839.5 68.1 441.8 429.3 902.7 997.6 724.7 672.3 644.2 374.3 283.8 140.3

Farmland 182.9 26.6 84.2 62.8 8.0 1.3 8.5 15.0 23.4 85.6 38.9 11.5

GNMA properties 344.6 0.2 2.1 19.6 105.3 217.4 68.8 34.1 118.4 103.2 7.1 13.0

* 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 8  •  Volume 1 2  • Number 2

12 FDIC QUARTERLY

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

1st 

Quarter 

2018

4th 

Quarter 

2017

3rd

Quarter 

2017

2nd

Quarter 

2017

1st 

Quarter 

2017

% 

Change 

17Q1

18Q1

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 1,360 1,367 1,397 1,423 1,417 -4.0 46 766 424 115 9

Total assets of institutions reporting derivatives $15,927,968 $15,815,205 $15,675,909 $15,459,961 $15,361,609 3.7 $3,331 $332,335 $1,293,603 $5,509,712 $8,788,985

Total deposits of institutions reporting derivatives 12,246,999 12,133,126 11,947,177 11,796,323 11,768,346 4.1 2,791 275,640 1,032,280 4,250,137 6,686,150

Total derivatives 205,986,323 173,483,932 190,609,917 187,865,984 180,496,035 14.1 179 21,875 138,538 61,719,588 144,106,144

Derivative Contracts by Underlying Risk Exposure 

Interest rate 155,478,150 130,423,041 141,278,946 139,831,983 132,702,523 17.2 173 21,341 133,404 54,552,457 100,770,774

Foreign exchange* 41,064,224 34,422,180 39,707,400 38,856,459 38,313,393 7.2 0 2 3,579 6,606,699 34,453,946

Equity 3,466,899 3,079,607 3,055,705 2,908,473 2,826,463 22.7 0 0 260 184,151 3,282,487

Commodity & other (excluding credit derivatives) 1,631,020 1,372,891 1,477,532 1,334,384 1,349,981 20.8 0 0 50 103,616 1,527,354

Credit 4,345,494 4,186,122 5,090,240 4,934,591 5,303,594 -18.1 0 1 1,245 272,666 4,071,582

Total 205,976,568 173,477,207 190,601,362 187,856,881 180,488,143 14.1 38 12,328 138,472 61,719,588 144,106,144

Derivative Contracts by Transaction Type 

Swaps 105,094,180 94,523,862 101,820,942 103,004,241 99,182,539 6.0 17 6,545 78,335 28,749,450 76,259,833

Futures & forwards 45,497,476 34,407,165 40,132,650 39,846,961 39,862,946 14.1 12 2,794 33,150 10,917,744 34,543,776

Purchased options 23,840,759 19,163,376 20,398,592 19,127,368 16,939,463 40.7 0 264 13,051 10,565,665 13,261,779

Written options 24,973,407 19,677,290 20,908,669 18,608,635 17,046,726 46.5 8 2,723 12,586 11,056,543 13,901,546

Total 199,405,823 167,771,692 183,260,854 180,587,205 173,031,675 15.2 38 12,326 137,122 61,289,402 137,966,934

Fair Value of Derivative Contracts 

Interest rate contracts 51,499 49,031 52,123 68,960 65,746 -21.7 0 105 1,155 8,818 41,420

Foreign exchange contracts 27,846 10,372 13,938 -430 1,613 1,626.3 0 0 -26 5,004 22,868

Equity contracts 6,582 -7,514 -5,742 -4,898 -4,921 N/M 0 0 2 -19 6,599

Commodity & other (excluding credit derivatives) -867 -829 -1,390 -1,300 118 N/M 0 0 0 130 -997

Credit derivatives as guarantor** 33,701 33,170 34,840 31,164 24,958 35.0 0 -1 -2 1,364 32,340

Credit derivatives as beneficiary** -34,976 -34,547 -37,666 -31,788 -24,932 N/M 0 0 -32 -1,475 -33,469

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 95,439,463 72,590,569 72,171,780 65,977,189 61,931,290 54.1 22 4,816 32,279 28,207,444 67,194,902

 1-5 years 40,334,499 36,154,531 43,431,393 48,374,437 46,450,818 -13.2 26 2,280 34,293 8,409,525 31,888,375

 > 5 years 23,687,736 23,565,841 27,041,460 29,634,366 29,973,243 -21.0 20 6,532 49,455 6,767,744 16,863,985

Foreign exchange and gold contracts < 1 year 29,696,500 24,379,652 28,385,819 27,411,021 27,320,407 8.7 0 90 1,949 4,807,556 24,886,905

 1-5 years 5,021,957 4,805,216 4,987,149 4,813,394 4,772,294 5.2 0 340 940 836,849 4,183,828

 > 5 years 2,630,013 2,525,329 2,574,435 2,496,193 2,429,269 8.3 0 0 119 674,748 1,955,146

Equity contracts < 1 year 2,747,190 2,295,686 2,159,633 2,236,176 2,197,689 25.0 0 0 100 62,619 2,684,471

 1-5 years 843,259 732,909 780,834 730,676 720,348 17.1 0 0 64 41,517 801,679

 > 5 years 139,432 113,150 119,191 116,759 124,404 12.1 0 0 0 6,363 133,069

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 2,314,371 2,172,996 2,542,161 2,544,432 2,722,501 -15.0 0 4 38 63,023 2,251,305

 1-5 years 2,862,714 2,814,096 3,173,395 3,069,752 3,054,143 -6.3 0 1 295 176,370 2,686,047

 > 5 years 527,870 312,753 524,420 311,157 487,184 8.4 0 26 316 37,660 489,868

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 25.5 23.3 24.2 24.6 24.2 0.1 0.5 1.2 14.3 39.3

Total potential future exposure to tier 1 capital (%) 41.3 38.5 45.1 46.9 48.1 0.1 0.4 0.8 19.4 66.7

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 66.7 61.9 69.3 71.4 72.3 0.2 0.9 2.0 33.7 106.1

Credit losses on derivatives  -1.1 11.4 1.2 9.9 1.2 -191.7 0.0 0.0 0.2 -0.4 -0.9

HELD FOR TRADING 

Number of institutions reporting derivatives 199 201 200 205 201 -1.0 2 36 89 64 8

Total assets of institutions reporting derivatives 12,561,019 12,486,011 12,403,492 12,228,056 12,124,176 3.6 169 18,125 295,591 3,752,979 8,494,155

Total deposits of institutions reporting derivatives 9,624,399 9,558,217 9,421,994 9,306,454 9,265,757 3.9 153 15,048 234,269 2,940,377 6,434,552

Derivative Contracts by Underlying Risk Exposure 

Interest rate 153,264,480 128,187,734 138,893,663 137,316,308 130,188,927 17.7 3 736 33,102 54,007,387 99,223,253

Foreign exchange 38,353,254 32,402,444 36,960,571 36,002,239 35,648,745 7.6 0 1 2,989 6,413,826 31,936,439

Equity 3,450,109 3,063,576 3,040,023 2,893,124 2,810,971 22.7 0 0 86 171,705 3,278,318

Commodity & other 1,602,648 1,343,837 1,450,053 1,306,894 1,321,931 21.2 0 0 33 76,474 1,526,141

Total 196,670,491 164,997,591 180,344,309 177,518,566 169,970,575 15.7 3 737 36,209 60,669,391 135,964,150

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  2,648 2,237 2,917 4,521 3,866 -31.5 0 0 8 345 2,296

Foreign exchange** 2,894 1,795 1,540 681 1,684 71.9 0 0 5 389 2,501

Equity** 1,865 989 1,183 1,122 922 102.3 0 0 12 21 1,832

Commodity & other (including credit derivatives)** 789 13 754 314 653 20.8 0 0 0 182 607

Total trading revenues** 8,197 5,035 6,394 6,637 7,126 15.0 0 0 25 937 7,235

Share of Revenue 

Trading revenues to gross revenues (%)** 5.5 3.6 4.6 4.8 5.4 0.0 0.0 0.7 2.2 7.1

Trading revenues to net operating revenues (%)** 21.4 31.3 19.9 20.5 24.2 0.0 0.0 2.9 8.6 27.3

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 757 783 801 821 830 -8.8 10 239 388 111 9

Total assets of institutions reporting derivatives 15,474,554 15,370,172 15,239,665 15,029,964 14,906,732 3.8 743 117,081 1,208,650 5,359,094 8,788,985

Total deposits of institutions reporting derivatives 11,880,222 11,775,177 11,593,623 11,445,122 11,394,184 4.3 638 97,576 964,106 4,131,752 6,686,150

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,204,451 2,228,673 2,376,823 2,506,666 2,505,787 -12.0 35 11,589 100,236 545,070 1,547,521

Foreign exchange 485,719 500,344 496,561 519,135 511,772 -5.1 0 0 486 35,354 449,880

Equity 16,790 16,031 15,682 15,349 15,492 8.4 0 0 174 12,446 4,169

Commodity & other 28,371 29,054 27,479 27,490 28,049 1.1 0 0 17 27,141 1,213

Total notional amount 2,735,331 2,774,101 2,916,545 3,068,640 3,061,100 -10.6 35 11,589 100,913 620,011 2,002,784

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

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

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

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

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

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

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

1st 

Quarter 

2018

4th 

Quarter

2017

3rd 

Quarter

2017

2nd 

Quarter

2017

1st 

Quarter

2017

% 

Change 

17Q1-

18Q1

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 64 67 66 68 67 -4.5 0 6 19 32 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $569,744 $590,211 $606,755 $620,524 $634,480 -10.2 $0 $1,935 $13,924 $85,436 $468,448

Home equity loans 18 20 21 22 24 -25.0 0 0 0 18 0

Credit card receivables 4,781 4,553 16,114 17,306 16,406 -70.9 0 0 0 4,752 29

Auto loans 8,221 9,770 10,494 11,566 12,158 -32.4 0 0 1,332 6,889 0

Other consumer loans 2,914 3,052 3,610 3,778 3,955 -26.3 0 0 0 1,905 1,009

Commercial and industrial loans 381 380 316 309 312 22.1 0 0 0 0 381

All other loans, leases, and other assets 62,410 60,869 55,105 54,266 56,669 10.1 0 9 9,162 1,545 51,694

Total securitized and sold 648,470 668,855 692,414 707,771 724,004 -10.4 0 1,945 24,418 100,546 521,561

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,527 1,716 1,718 1,750 1,906 -19.9 0 0 26 1,097 405

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

Credit card receivables 392 353 1,405 1,508 1,443 -72.8 0 0 0 392 0

Auto loans 164 147 161 183 125 31.2 0 0 13 151 0

Other consumer loans 88 86 87 96 100 -12.0 0 0 0 0 88

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

All other loans, leases, and other assets 1,194 1,131 908 874 875 36.5 0 0 142 0 1,052

Total credit exposure 3,365 3,431 4,279 4,410 4,448 -24.3 0 0 180 1,640 1,545

Total unused liquidity commitments provided to institution’s own 

securitizations 143 215 246 172 142 0.7 0 0 0 21 122

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

1-4 family residential loans 3.2 4.7 4.3 3.4 3.0 0.0 1.4 1.3 3.0 3.3

Home equity loans 9.5 9.7 6.0 8.2 5.6 0.0 0.0 0.0 9.5 0.0

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

Auto loans 1.6 2.1 1.6 1.4 1.2 0.0 0.0 3.2 1.3 0.0

Other consumer loans 4.5 4.7 4.2 4.1 4.0 0.0 0.0 0.0 2.5 8.2

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 0.3 0.5 0.7 1.3 1.0 0.0 0.0 0.1 0.0 0.3

Total loans, leases, and other assets 2.9 4.2 3.9 3.1 2.7 0.0 1.4 0.9 2.7 3.0

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

1-4 family residential loans 1.5 1.6 1.3 1.3 1.4 0.0 0.9 1.3 2.4 1.3

Home equity loans 44.1 45.7 47.1 47.4 47.8 0.0 0.0 0.0 44.1 0.0

Credit card receivables 0.2 0.2 0.3 0.3 0.3 0.0 0.0 0.0 0.2 0.0

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

Other consumer loans 4.3 4.6 4.3 4.0 4.1 0.0 0.0 0.0 1.0 10.7

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 1.2 1.3 1.4 1.6 0.0 0.0 0.4 0.0 1.4

Total loans, leases, and other assets 1.4 1.5 1.3 1.3 1.4 0.0 0.9 0.9 2.1 1.3

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 4.9 11.7 8.7 6.0 2.6 0.0 0.0 0.0 4.9 0.0

Credit card receivables 0.3 1.2 1.3 0.8 0.4 0.0 0.0 0.0 0.3 3.5

Auto loans 0.4 1.2 0.8 0.5 0.2 0.0 0.0 0.9 0.3 0.0

Other consumer loans 0.3 1.5 1.0 0.6 0.4 0.0 0.0 0.0 0.2 0.5

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 0.0 1.7 1.3 0.7 0.5 0.0 0.0 0.0 0.0 0.0

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

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

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

Credit card receivables 1,730 2,460 8,171 7,260 8,080 -78.6 0 0 0 1,730 0

Commercial and industrial loans 426 463 401 334 365 16.7 0 0 0 0 426

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 476 521 524 548 579 -17.8 14 204 197 53 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 24,578 180,742 26,404 26,211 25,919 -5.2 168 5,397 10,999 5,452 2,562

Home equity, credit card receivables, auto, and other consumer loans 478 504 523 543 564 -15.2 0 0 27 17 434

Commercial and industrial loans 143 154 190 188 230 -37.8 0 2 39 72 31

All other loans, leases, and other assets 102,630 101,529 97,455 95,098 93,140 10.2 0 17 126 33,341 69,147

Total sold and not securitized 127,830 282,929 124,572 122,040 119,853 6.7 168 5,416 11,190 38,881 72,174

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 8,033 162,216 7,895 7,932 7,655 4.9 54 777 3,708 2,173 1,320

Home equity, credit card receivables, auto, and other consumer loans 150 152 151 152 153 -2.0 0 0 27 3 120

Commercial and industrial loans 80 93 116 133 175 -54.3 0 2 6 72 0

All other loans, leases, and other assets 28,449 28,110 27,057 26,299 25,918 9.8 0 17 33 9,682 18,718

Total credit exposure 36,712 190,570 35,219 34,516 33,902 8.3 54 796 3,774 11,930 20,158

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 50 53 54 56 63 -20.6 1 13 18 12 6

Total credit exposure 29,694 32,255 34,350 35,012 35,130 -15.5 0 30 131 1,612 27,920

Total unused liquidity commitments 1,149 1,260 1,298 1,150 1,118 2.8 0 11 0 323 815

Other

Assets serviced for others** 6,010,536 5,994,390 5,928,869 5,946,667 5,944,659 1.1 4,600 187,542 287,062 1,328,023 4,203,310

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 15,554 16,909 16,618 16,698 17,521 -11.2 0 0 0 0 15,554

Unused liquidity commitments to conduits sponsored by institutions 

 and others 29,497 26,928 27,458 28,342 25,784 14.4 0 0 4 2,107 27,387

Net servicing income (for the quarter) 3,652 2,352 2,306 2,167 2,829 29.1 9 251 250 1,351 1,791

Net securitization income (for the quarter) 151 131 395 472 363 -58.4 0 3 15 74 58

Total credit exposure to Tier 1 capital (%)*** 4.2 13.9 4.6 4.6 4.7 0.5 0.7 2.3 2.6 6.7

* 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 

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

banks designated during the previous quarter.

Net Income Rises 17.7 Percent Annually on Higher Net Interest Income and Lower Income Tax Expenses

Community Banks Grow Loan and Leases 7.4 Percent Over 12 Months

Net Interest Margin Widens to 3.64 Percent From a Year Earlier

Noncurrent Loan Rate Declines 15 Basis Points Year-Over-Year

More Than 70 Percent of 

Community Banks Report 

Higher Quarterly Earnings

Net income of $6.1 billion was up $913.1 million (17.7 percent) compared with first quarter 

2017, on higher net interest income and lower income tax expenses, offsetting increases in 

both noninterest expense and loan loss provisions. Excluding the effect of a lower corporate 

tax rate, estimated quarterly net income would have been $5.6 billion—up 9.2 percent from 

the $5.1 billion reported in first quarter 2017.1 More than seven out of ten community banks 

(73 percent) reported higher net income compared with a year earlier. The pretax return on 

assets held steady at 1.33 percent, up 2 basis points since year-end 2017 and up 1 basis point 

since first quarter 2017. The number of community banks totaled 5,168, reflecting three new 

community bank charters and no community bank failures.2

Net Interest Income Rises 

9.7 Percent Year-Over-Year

Net interest income increased by $1.6 billion (9.7 percent) compared with first quarter 2017. 

More than four out of five community banks (85.6 percent) reported higher net interest 

income compared to the year before. Growth in non 1-to-4 family real estate loan income 

(up $1.1 billion or 14.6 percent) contributed most to this increase.3 The average net interest 

margin (NIM) at community banks widened 10 basis points to 3.64 percent during the year 

as the increase in earning asset yields outpaced the increase in funding costs. The average 

NIM at community banks was 36 basis points higher than that of noncommunity banks, 

although the two ratios have been converging year-over-year since first quarter 2015.

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

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

$0.91 $1.63 $0.15 $0.13 $0.96 -$0.07 -$0.35

+18% +10% +24% +3% +7% -58% -22%

Chart 1

Source: FDIC.

Quarterly Average Net Interest Margin

Percent 

Community Banks 

Industry

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

3.64%

3.32%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 2

1 This estimate of net income applies the average quarterly tax rate at community banks between fourth quarter 2011 and third 

quarter 2017 to income before taxes and discontinued operations. 

2 One insured institution had not filed a March 31 Call Report at the time this report was prepared.

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

loans.
2 0 1 8  •  Volume 1 2  • Number 2

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions Change 1Q 2018 vs. 1Q 2017

Change 1Q 2018 vs. 4Q 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

38.9

14.1

10.8

19.2

0.8

9.9

5.9

8.7

2.3 2.3 1.2

-2.9

1.2 2.2

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 Farm Loans

Credit Cards

2010 2011 2012 2013 2014 2015 2016 2017 2018

Chart 4

Noninterest Income Grows 

2.9 Percent During the Year

Noninterest income rose by $127.6 million (2.9 percent) to $4.5 billion primarily because of 

growth in other noninterest income, which increased $122.3 million (6.9 percent) during 

the year.4 Higher noninterest income offset the decline in net gains on loan sales and sales 

of other assets. More than half of community banks (54.2 percent) reported higher noninterest income during the year.

Noninterest Expense Climbs 

6.9 Percent From a Year 

Earlier

Noninterest expense increased $963.9 million (6.9 percent) to $15 billion compared with 

first quarter 2017, driven by an increase in salary and employee benefits of $556.6 million 

(6.9 percent). The number of full-time equivalent employees increased by 9,003 (2.2 percent) 

during the year, while average assets per employee rose by 4.4 percent to $5.3 million.

Community Bank Loan and 

Lease Growth Rate Exceeds 

That of the Industry

Loan and lease balances increased by $14.4 billion (0.9 percent) during the quarter to 

$1.5 trillion. More than half (56.7 percent) of community banks reported higher loan and 

lease balances compared with the previous quarter. Quarterly loan growth was led by the 

following categories: nonfarm nonresidential loans, up $8.7 billion or 1.9 percent; multifamily residential loans, up $2.9 billion or 2.5 percent; and commercial and industrial (C&I) 

loans, up $2.3 billion or 1.1 percent.

Loan and lease balances rose by $107.3 billion (7.4 percent) during the year, reflecting 

a growth rate that was 3 percentage points higher than that of noncommunity banks. 

Nearly 80 percent of community banks reported higher loan balances compared with 

one year earlier. Annual loan growth was led by the following loan categories: nonfarm 

nonresidential loans, up $38.9 billion or 9.2 percent; 1-to-4 family residential loans, up 

$20.5 billion or 4.9 percent; C&I loans, up $14.1 billion or 7.4 percent; multifamily residential loans, up $11.3 billion or 10.7 percent; and construction and development (C&D) 

loans, up $10.9 billion or 11.4 percent. Unused loan commitments of $297.4 billion were up 

$24.1 billion (8.8 percent) from the year before. Commitments to lend against commercial 

real estate properties—including C&D properties—increased by $9.9 billion (12.8 percent) 

during the year. Loan and lease balances at community banks represented 70.3 percent of 

total assets, a ratio nearly 15 percentage points higher than that of noncommunity banks.

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

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

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

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

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

FDIC QUARTERLY 17

Noncurrent Loan Balances 

Decline

More than three out of five (61 percent) community banks reported lower or unchanged 

noncurrent loan balances compared with the previous quarter. Total noncurrent loan and 

lease balances declined by $25.6 million (0.2 percent), leading to a slight decline in the 

noncurrent rate of 1 basis point to 0.85 percent—36 basis points below that of noncommunity banks. The noncurrent rate for all major loan categories—except nonfarm nonresidential loans—declined compared with the previous quarter. The noncurrent rate for 

nonfarm nonresidential loans increased 1 basis point to 0.73 percent, while the past-due rate 

(loans 30 to 89 days past due) for nonfarm nonresidential loans increased 9 basis points to 

0.40 percent. Noncurrent rates for C&I and C&D loans improved the most among major 

loan categories—decreasing by 7 basis points each. The noncurrent rate for farm loans 

increased 21 basis points during the quarter to 1.09 percent due to increases in the noncurrent rates for farmland loans (up 20 basis points to 1.28 percent) and agricultural production 

loans (up 18 basis points to 0.79 percent).

Net Charge-Off Rate 

Increases Slightly From a 

Year Earlier

Compared with first quarter 2017, the net charge-off rate for community banks increased 

2 basis points to 0.13 percent, but was well below the net charge-off rate of noncommunity banks. The net charge-off rate on all major loan categories—except C&I—declined or 

remained unchanged from a year earlier. The net-charge off rate on C&I loans increased 

21 basis points to 0.48 percent compared with first quarter 2017.

Regulatory Capital Ratios 

Grow During the Quarter

Equity capital totaled $243.8 billion, up $1.7 billion (0.7 percent) compared with fourth 

quarter 2017. However, net unrealized losses on available-for-sale securities increased by 

$4.5 billion to $5.6 billion and contributed to a decline in the total equity capital ratio of 

4 basis points. The following regulatory capital ratios increased in the first quarter: the tier 

1 risk-based capital ratio, up 13 basis points to 14.71 percent; the total risk-based capital 

ratio, up 12 basis points to 15.77 percent; and the leverage capital ratio, up 10 basis points 

to 10.90 percent. The first quarter 2018 leverage capital ratio represents a 30-year high for 

community banks.

Author:

Erica Jill Tholmer

Senior Financial Analyst

Division of Insurance and Research

(202) 898-3935
2 0 1 8  •  Volume 1 2  • Number 2

18 FDIC QUARTERLY

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

2018* 2017* 2017 2016 2015 2014 2013

Return on assets (%) 1.11 1.01 0.96 0.99 0.99 0.93 0.90

Return on equity (%) 10.00 9.13 8.66 8.81 8.85 8.45 8.27

Core capital (leverage) ratio (%) 10.90 10.73 10.80 10.69 10.67 10.57 10.43

Noncurrent assets plus other real estate owned to assets (%) 0.77 0.91 0.78 0.94 1.07 1.34 1.73

Net charge-offs to loans (%) 0.13 0.11 0.16 0.16 0.15 0.21 0.32

Asset growth rate (%) -0.66 4.11 0.85 2.97 2.71 2.21 0.39

Net interest margin (%) 3.64 3.54 3.62 3.57 3.57 3.61 3.59

Net operating income growth (%) 10.29 8.74 -0.03 2.42 9.54 4.81 14.64

Number of institutions reporting 5,168 5,401 5,227 5,461 5,735 6,037 6,307

Percentage of unprofitable institutions (%) 4.06 4.55 5.70 4.65 5.02 6.44 8.40

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

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

(dollar figures in millions)  1st Quarter

2018

4th Quarter

2017

1st Quarter

2017

%Change 

17Q1-18Q1

Number of institutions reporting 5,168 5,227 5,401 -4.3

Total employees (full-time equivalent) 411,542 416,263 428,773 -4.0

CONDITION DATA

Total assets $2,200,587 $2,201,581 $2,215,225 -0.7

Loans secured by real estate 1,196,115 1,195,000 1,179,830 1.4

 1-4 Family residential mortgages 394,000 395,474 394,914 -0.2

 Nonfarm nonresidential 459,216 457,040 451,608 1.7

 Construction and development 105,991 106,797 102,530 3.4

 Home equity lines 48,308 49,746 50,024 -3.4

Commercial & industrial loans 204,497 204,836 203,605 0.4

Loans to individuals 61,406 61,879 60,636 1.3

 Credit cards 1,923 2,038 2,109 -8.8

Farm loans 48,594 51,658 48,373 0.5

Other loans & leases 38,159 38,905 38,308 -0.4

Less: Unearned income 694 698 667 4.1

Total loans & leases 1,548,077 1,551,581 1,530,084 1.2

Less: Reserve for losses 18,140 18,079 18,843 -3.7

Net loans and leases 1,529,937 1,533,502 1,511,241 1.2

Securities 405,387 408,787 432,396 -6.2

Other real estate owned 3,777 3,915 4,782 -21.0

Goodwill and other intangibles 14,021 13,535 14,719 -4.7

All other assets 247,465 241,842 252,087 -1.8

Total liabilities and capital 2,200,587 2,201,581 2,215,225 -0.7

Deposits 1,812,310 1,804,510 1,823,141 -0.6

 Domestic office deposits 1,811,520 1,804,020 1,822,690 -0.6

 Foreign office deposits 789 490 451 74.9

 Brokered deposits 92,583 90,765 84,733 9.3

Estimated insured deposits 1,335,694 1,328,244 1,354,785 -1.4

Other borrowed funds 128,275 135,383 129,364 -0.8

Subordinated debt 630 865 767 -17.8

All other liabilities 15,462 15,856 16,276 -5.0

Total equity capital (includes minority interests) 243,910 244,967 245,677 -0.7

 Bank equity capital 243,796 244,844 245,552 -0.7

Loans and leases 30-89 days past due 8,962 8,366 8,950 0.1

Noncurrent loans and leases 13,172 13,275 15,287 -13.8

Restructured loans and leases 6,607 7,005 7,796 -15.3

Mortgage-backed securities 174,030 173,570 186,602 -6.7

Earning assets 2,056,721 2,052,645 2,064,421 -0.4

FHLB Advances 106,075 111,179 102,227 3.8

Unused loan commitments 297,365 290,991 292,422 1.7

Trust assets 286,832 331,171 262,935 9.1

Assets securitized and sold 19,462 24,076 21,535 -9.6

Notional amount of derivatives 69,529 66,616 64,134 8.4

INCOME DATA Full Year 2017 Full Year 2016 %Change

1st Quarter 

2018

1st Quarter 

2017

%Change 

17Q1-18Q1

Total interest income $82,221 $79,190 3.8 $21,563 $20,531 5.0

Total interest expense 10,321 9,133 13.0 3,036 2,433 24.8

Net interest income 71,900 70,057 2.6 18,528 18,098 2.4

Provision for loan and lease losses 3,139 3,277 -4.2 804 685 17.4

Total noninterest income 18,690 19,937 -6.3 4,497 4,802 -6.3

Total noninterest expense 59,094 59,983 -1.5 14,992 15,080 -0.6

Securities gains (losses) 351 638 -45.1 52 128 -59.3

Applicable income taxes 8,146 6,566 24.1 1,221 1,720 -29.0

Extraordinary gains, net* 2 -9 N/M 2 7 N/M

Total net income (includes minority interests) 20,563 20,797 -1.1 6,061 5,550 9.2

 Bank net income 20,540 20,774 -1.1 6,058 5,545 9.2

Net charge-offs 2,394 2,256 6.1 489 413 18.3

Cash dividends 9,950 10,213 -2.6 2,439 2,593 -6.0

Retained earnings 10,590 10,561 0.3 3,619 2,952 22.6

Net operating income 20,294 20,301 0.0 6,016 5,455 10.3

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

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  1st Quarter 

2018

4th Quarter 

2017

1st Quarter

2017

%Change 

17Q1-18Q1

Number of institutions reporting 5,168 5,165 5,162 0.1

Total employees (full-time equivalent) 411,542 409,786 402,539 2.2

CONDITION DATA

Total assets $2,200,587 $2,176,109 $2,090,201 5.3

Loans secured by real estate 1,196,115 1,180,843 1,110,036 7.8

 1-4 Family residential mortgages 394,000 391,706 374,806 5.1

 Nonfarm nonresidential 459,216 450,518 420,364 9.2

 Construction and development 105,991 104,750 95,160 11.4

 Home equity lines 48,308 48,813 46,969 2.9

Commercial & industrial loans 204,497 202,207 190,430 7.4

Loans to individuals 61,406 61,422 58,390 5.2

 Credit cards 1,923 2,022 2,000 -3.8

Farm loans 48,594 51,480 47,797 1.7

Other loans & leases 38,159 38,387 34,769 9.7

Less: Unearned income 694 694 646 7.5

Total loans & leases 1,548,077 1,533,645 1,440,777 7.4

Less: Reserve for losses 18,140 17,907 17,633 2.9

Net loans and leases 1,529,937 1,515,738 1,423,144 7.5

Securities 405,387 405,284 411,640 -1.5

Other real estate owned 3,777 3,877 4,598 -17.9

Goodwill and other intangibles 14,021 13,135 12,193 15.0

All other assets 247,465 238,075 238,626 3.7

Total liabilities and capital 2,200,587 2,176,109 2,090,201 5.3

Deposits 1,812,310 1,784,519 1,725,829 5.0

 Domestic office deposits 1,811,520 1,784,029 1,725,378 5.0

 Foreign office deposits 789 490 451 74.9

 Brokered deposits 92,583 88,785 79,813 16.0

Estimated insured deposits 1,335,694 1,315,282 1,289,778 3.6

Other borrowed funds 128,275 133,096 117,465 9.2

Subordinated debt 630 618 582 8.2

All other liabilities 15,462 15,645 15,268 1.3

Total equity capital (includes minority interests) 243,910 242,231 231,056 5.6

 Bank equity capital 243,796 242,119 230,950 5.6

Loans and leases 30-89 days past due 8,962 8,340 8,594 4.3

Noncurrent loans and leases 13,172 13,197 14,134 -6.8

Restructured loans and leases 6,607 6,942 7,479 -11.7

Mortgage-backed securities 174,030 171,960 174,433 -0.2

Earning assets 2,056,721 2,029,328 1,949,553 5.5

FHLB Advances 106,075 109,030 93,781 13.1

Unused loan commitments 297,365 286,028 273,316 8.8

Trust assets 286,832 329,637 263,395 8.9

Assets securitized and sold 19,462 24,076 21,535 -9.6

Notional amount of derivatives 69,529 64,570 57,844 20.2

INCOME DATA Full Year 2017 Full Year 2016 %Change

1st Quarter 

2018

1st Quarter 

2017

%Change 

17Q1-18Q1

Total interest income $80,928 $73,563 10.0 $21,563 $19,150 12.6

Total interest expense 10,163 8,511 19.4 3,036 2,255 34.6

Net interest income 70,765 65,052 8.8 18,528 16,895 9.7

Provision for loan and lease losses 3,114 2,841 9.6 804 650 23.7

Total noninterest income 18,137 18,095 0.2 4,497 4,369 2.9

Total noninterest expense 57,890 55,608 4.1 14,992 14,029 6.9

Securities gains (losses) 343 593 -42.2 52 124 -57.7

Applicable income taxes 7,992 5,818 37.4 1,221 1,569 -22.2

Extraordinary gains, net* 2 -9 N/M 2 7 N/M

Total net income (includes minority interests) 20,251 19,464 4.0 6,061 5,148 17.7

 Bank net income 20,233 19,447 4.0 6,058 5,144 17.7

Net charge-offs 2,364 2,150 9.9 489 380 28.6

Cash dividends 9,663 9,241 4.6 2,439 2,348 3.9

Retained earnings 10,570 10,206 3.6 3,619 2,797 29.4

Net operating income 19,988 19,001 5.2 6,016 5,057 19.0

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 8  •  Volume 1 2  • Number 2

20 FDIC QUARTERLY

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

First Quarter 2018

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 5,168 593 601 1,139 1,372 1,138 325

Total employees (full-time equivalent) 411,542 84,938 46,984 86,655 69,803 90,480 32,682

CONDITION DATA

Total assets $2,200,587 $603,592 $226,658 $398,208 $348,879 $424,022 $199,228

Loans secured by real estate 1,196,115 377,303 123,622 208,190 168,679 209,118 109,203

 1-4 Family residential mortgages 394,000 138,024 39,146 71,907 51,421 66,466 27,037

 Nonfarm nonresidential 459,216 133,966 53,428 76,385 56,653 86,336 52,449

 Construction and development 105,991 24,578 13,868 15,041 14,519 29,010 8,975

 Home equity lines 48,308 16,179 6,673 10,745 5,081 4,845 4,786

Commercial & industrial loans 204,497 49,920 18,567 40,325 35,370 41,563 18,754

Loans to individuals 61,406 14,934 6,720 12,110 10,297 12,812 4,531

 Credit cards 1,923 423 153 373 551 225 198

Farm loans 48,594 583 1,222 8,029 27,312 8,822 2,626

Other loans & leases 38,159 11,614 3,129 7,260 5,843 7,019 3,295

Less: Unearned income 694 168 101 54 95 130 147

Total loans & leases 1,548,077 454,185 153,160 275,861 247,406 279,203 138,262

Less: Reserve for losses 18,140 4,584 1,797 3,245 3,295 3,449 1,771

Net loans and leases 1,529,937 449,602 151,363 272,616 244,111 275,754 136,492

Securities 405,387 94,419 42,559 79,265 63,945 89,864 35,335

Other real estate owned 3,777 651 851 651 613 807 204

Goodwill and other intangibles 14,021 4,647 1,067 2,586 1,986 2,684 1,051

All other assets 247,465 54,273 30,818 43,091 38,225 54,913 26,146

Total liabilities and capital 2,200,587 603,592 226,658 398,208 348,879 424,022 199,228

Deposits 1,812,310 478,264 190,389 329,717 290,147 358,258 165,534

 Domestic office deposits 1,811,520 477,542 190,389 329,677 290,147 358,258 165,507

 Foreign office deposits 789 722 0 40 0 0 27

 Brokered deposits 92,583 30,295 7,182 17,141 15,823 12,858 9,284

 Estimated insured deposits 1,335,694 339,352 142,322 260,494 226,314 256,672 110,540

Other borrowed funds 128,275 51,578 10,347 21,623 18,417 16,730 9,580

Subordinated debt 630 508 10 45 10 42 15

All other liabilities 15,462 5,519 1,450 2,591 1,836 2,458 1,607

Total equity capital (includes minority interests) 243,910 67,723 24,461 44,231 38,470 46,534 22,491

 Bank equity capital 243,796 67,654 24,457 44,212 38,469 46,512 22,491

Loans and leases 30-89 days past due 8,962 2,253 997 1,531 1,605 2,052 524

Noncurrent loans and leases 13,172 4,233 1,381 2,420 1,957 2,475 706

Restructured loans and leases 6,607 2,050 761 1,571 908 903 413

Mortgage-backed securities 174,030 53,334 18,201 30,498 20,671 34,101 17,225

Earning assets 2,056,721 567,028 209,882 371,825 326,435 394,097 187,455

FHLB Advances 106,075 46,161 8,566 17,050 13,939 13,110 7,249

Unused loan commitments 297,365 79,136 26,958 56,105 51,400 53,350 30,415

Trust assets 286,832 63,471 9,091 73,183 88,677 44,071 8,340

Assets securitized and sold 19,462 7,259 74 7,923 2,651 781 774

Notional amount of derivatives 69,529 29,404 6,195 14,894 9,036 7,203 2,797

INCOME DATA

Total interest income $21,563 $5,652 $2,251 $3,829 $3,467 $4,300 $2,065

Total interest expense 3,036 986 284 527 499 523 217

Net interest income 18,528 4,666 1,966 3,303 2,968 3,777 1,848

Provision for loan and lease losses 804 323 62 95 113 141 70

Total noninterest income 4,497 928 451 1,148 710 931 328

Total noninterest expense 14,992 3,699 1,666 2,929 2,343 3,027 1,329

Securities gains (losses) 52 39 6 3 -4 2 7

Applicable income taxes 1,221 347 121 258 146 183 166

Extraordinary gains, net** 2 0 0 0 0 0 1

Total net income (includes minority interests) 6,061 1,265 576 1,171 1,073 1,357 620

 Bank net income 6,058 1,263 576 1,169 1,073 1,357 620

Net charge-offs 489 235 33 41 57 95 29

Cash dividends 2,439 245 220 633 595 550 196

Retained earnings 3,619 1,018 355 537 478 808 424

Net operating income 6,016 1,232 571 1,169 1,076 1,356 612

* See Table V-A for explanation.

** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. First Quarter 2018, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks First Quarter 2018, Geographic Regions*

 1st Quarter 

2018

4th Quarter 

2017 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.23 4.22 4.04 4.32 4.14 4.27 4.40 4.44

Cost of funding earning assets 0.60 0.56 0.70 0.55 0.57 0.62 0.54 0.47

Net interest margin 3.64 3.66 3.34 3.78 3.57 3.66 3.87 3.97

Noninterest income to assets 0.82 0.88 0.62 0.80 1.16 0.82 0.88 0.66

Noninterest expense to assets 2.75 2.83 2.48 2.96 2.95 2.69 2.88 2.69

Loan and lease loss provision to assets 0.15 0.16 0.22 0.11 0.10 0.13 0.13 0.14

Net operating income to assets 1.10 0.75 0.83 1.01 1.18 1.24 1.29 1.24

Pretax return on assets 1.33 1.31 1.08 1.24 1.44 1.40 1.46 1.59

Return on assets 1.11 0.75 0.85 1.02 1.18 1.23 1.29 1.25

Return on equity 10.00 6.70 7.57 9.42 10.59 11.16 11.72 11.13

Net charge-offs to loans and leases 0.13 0.22 0.21 0.09 0.06 0.09 0.14 0.08

Loan and lease loss provision to net charge-offs 164.44 102.77 137.55 188.42 233.75 198.53 149.37 240.32

Efficiency ratio 64.81 65.37 65.83 68.59 65.47 63.30 64.05 60.84

Net interest income to operating revenue 80.47 79.58 83.40 81.33 74.20 80.70 80.23 84.92

% of unprofitable institutions 4.06 16.53 5.40 5.66 4.57 2.92 3.16 4.92

% of institutions with earnings gains 73.34 46.13 77.57 75.21 69.97 71.57 73.73 80.00

Table V-B. Full Year 2017, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks Full Year 2017, Geographic Regions*

Full Year 2017 Full Year 2016 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.14 4.04 3.95 4.23 4.05 4.20 4.32 4.26

Cost of funding earning assets 0.52 0.47 0.62 0.49 0.49 0.54 0.46 0.40

Net interest margin 3.62 3.57 3.33 3.73 3.56 3.67 3.87 3.86

Noninterest income to assets 0.88 0.95 0.66 0.91 1.23 0.86 0.92 0.73

Noninterest expense to assets 2.77 2.85 2.48 3.01 2.96 2.74 2.93 2.72

Loan and lease loss provision to assets 0.15 0.16 0.20 0.11 0.10 0.15 0.17 0.08

Net operating income to assets 0.95 0.96 0.67 0.79 1.09 1.13 1.13 1.01

Pretax return on assets 1.35 1.30 1.14 1.24 1.48 1.40 1.41 1.57

Return on assets 0.96 0.99 0.70 0.80 1.09 1.13 1.14 1.02

Return on equity 8.66 8.81 6.26 7.26 9.76 10.20 10.33 9.07

Net charge-offs to loans and leases 0.16 0.16 0.20 0.13 0.13 0.15 0.22 0.05

Loan and lease loss provision to net charge-offs 131.14 145.31 133.24 129.29 114.73 142.38 120.67 223.32

Efficiency ratio 64.85 66.13 65.01 68.66 64.87 63.54 64.77 62.12

Net interest income to operating revenue 79.37 77.85 82.63 79.16 72.97 79.85 79.66 83.16

% of unprofitable institutions 5.70 4.65 7.99 9.97 6.03 3.47 4.33 6.69

% of institutions with earnings gains 55.37 64.24 50.25 52.78 55.81 55.09 58.18 59.27

* See Table V-A for explanation.
2 0 1 8  •  Volume 1 2  • Number 2

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

March 31, 2018

Geographic Regions*

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

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.54 0.47 0.63 0.56 0.55 0.69 0.30

Construction and development 0.48 0.56 0.53 0.27 0.42 0.52 0.49

Nonfarm nonresidential 0.40 0.42 0.37 0.39 0.38 0.52 0.22

Multifamily residential real estate 0.16 0.16 0.11 0.27 0.17 0.12 0.02

Home equity loans 0.43 0.50 0.49 0.39 0.29 0.52 0.31

Other 1-4 family residential 0.78 0.64 1.06 0.86 0.68 1.06 0.43

Commercial and industrial loans 0.51 0.39 0.55 0.41 0.57 0.64 0.61

Loans to individuals 1.29 1.55 1.43 0.82 0.89 1.87 0.81

Credit card loans 2.30 3.46 1.24 1.14 3.28 1.16 1.40

Other loans to individuals 1.26 1.50 1.43 0.81 0.75 1.88 0.78

All other loans and leases (including farm) 0.81 0.35 0.34 0.70 1.17 0.66 0.83

Total loans and leases 0.58 0.50 0.65 0.55 0.65 0.73 0.38

Percent of Loans Noncurrent**

All loans secured by real estate 0.83 0.93 0.95 0.91 0.74 0.78 0.45

Construction and development 0.77 0.69 1.36 0.81 0.82 0.53 0.67

Nonfarm nonresidential 0.73 0.84 0.78 0.85 0.72 0.66 0.32

Multifamily residential real estate 0.22 0.18 0.40 0.37 0.22 0.33 0.08

Home equity loans 0.54 0.62 0.58 0.56 0.25 0.55 0.49

Other 1-4 family residential 1.09 1.37 1.15 1.08 0.60 1.02 0.66

Commercial and industrial loans 1.07 1.18 0.75 0.94 1.01 1.36 0.79

Loans to individuals 0.66 0.59 0.73 0.34 0.44 1.29 0.34

Credit card loans 1.10 0.70 0.72 1.15 1.69 0.60 1.05

Other loans to individuals 0.64 0.59 0.73 0.31 0.37 1.30 0.30

All other loans and leases (including farm) 0.74 0.33 0.44 0.71 0.92 0.77 0.83

Total loans and leases 0.85 0.93 0.90 0.88 0.79 0.89 0.51

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.02 0.04 0.00 0.01 0.01 0.02 -0.03

Construction and development -0.03 0.02 -0.08 -0.10 -0.04 0.03 -0.10

Nonfarm nonresidential 0.02 0.04 0.00 0.02 0.02 0.02 0.00

Multifamily residential real estate 0.00 0.00 -0.01 -0.03 0.04 0.01 0.00

Home equity loans 0.02 0.06 0.02 0.01 -0.04 0.00 -0.05

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

Commercial and industrial loans 0.48 1.31 0.36 0.15 0.11 0.34 0.15

Loans to individuals 1.05 0.88 0.88 0.56 1.22 1.22 2.23

Credit card loans 7.06 4.51 1.75 3.03 16.98 1.81 2.55

Other loans to individuals 0.85 0.77 0.86 0.47 0.31 1.21 2.21

All other loans and leases (including farm) 0.15 0.12 0.14 0.14 0.11 0.21 0.29

Total loans and leases 0.13 0.21 0.09 0.06 0.09 0.14 0.08

Loans Outstanding (in billions)

All loans secured by real estate $1,196.1 $377.3 $123.6 $208.2 $168.7 $209.1 $109.2

Construction and development 106.0 24.6 13.9 15.0 14.5 29.0 9.0

Nonfarm nonresidential 459.2 134.0 53.4 76.4 56.7 86.3 52.4

Multifamily residential real estate 116.8 62.2 6.2 17.3 9.6 8.9 12.5

Home equity loans 48.3 16.2 6.7 10.7 5.1 4.8 4.8

Other 1-4 family residential 394.0 138.0 39.1 71.9 51.4 66.5 27.0

Commercial and industrial loans 204.5 49.9 18.6 40.3 35.4 41.6 18.8

Loans to individuals 61.4 14.9 6.7 12.1 10.3 12.8 4.5

Credit card loans 1.9 0.4 0.2 0.4 0.6 0.2 0.2

Other loans to individuals 59.5 14.5 6.6 11.7 9.7 12.6 4.3

All other loans and leases (including farm) 86.8 12.2 4.4 15.3 33.2 15.8 5.9

Total loans and leases 1,548.8 454.4 153.3 275.9 247.5 279.3 138.4

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 297,365 79,136 26,958 56,105 51,400 53,350 30,415

Construction and development: 1-4 family residential 24,515 5,036 3,344 2,967 3,091 7,164 2,913

Construction and development: CRE and other 61,486 19,338 6,126 10,490 7,594 12,800 5,138

Commercial and industrial 92,545 24,288 7,228 19,357 15,364 16,389 9,919

* See Table V-A for explanation.

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

FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $2.3 Billion

Estimated Insured Deposits Grow by 2.6 Percent

DIF Reserve Ratio Is Unchanged at 1.30 Percent

The Deposit Insurance Fund (DIF) balance increased by $2.3 billion, to $95.1 billion, during 

the first quarter. Assessment income of $2.9 billion, which includes temporary assessment 

surcharges on large banks, was the main driver of the fund balance increase. Interest on 

investments of $338 million and a negative provision for insurance losses of $65 million also 

added to the fund. Operating expenses of $433 million and unrealized losses on availablefor-sale securities of $496 million partially offset the increase in the fund balance. No banks 

failed during the quarter.

The deposit insurance assessment base—average consolidated total assets minus average tangible equity—increased by 0.4 percent in the first quarter and by 3.1 percent over 

12 months.1,2 Total estimated insured deposits increased by 2.6 percent in the first quarter 

of 2018 and by 3.7 percent year-over-year. The DIF’s reserve ratio (the fund balance as a 

percent of estimated insured deposits) was 1.30 percent on March 31, 2018, unchanged from 

year-end 2017 due primarily to strong first quarter growth in estimated insured deposits. 

The reserve ratio increased by ten basis points from one year earlier.

By law, the reserve ratio must reach a minimum of 1.35 percent by September 30, 2020. The 

law also requires that, in setting assessments, the FDIC offset the effect of the increase in the 

reserve ratio from 1.15 to 1.35 percent on banks with less than $10 billion in assets. To satisfy 

these requirements, large banks are subject to a temporary surcharge of 4.5 basis points of 

their assessment base, after making certain adjustments.3,4 Surcharges began in the third 

quarter of 2016 and will continue through the quarter in which the reserve ratio first meets 

or exceeds 1.35 percent. If, however, the reserve ratio has not reached 1.35 percent by the end 

of 2018, large banks will pay a shortfall assessment in early 2019 to close the gap.

Small banks will receive credits to offset the portion of their assessments that help to raise 

the reserve ratio from 1.15 percent to 1.35 percent. When the reserve ratio is at or above 

1.38 percent, the FDIC will automatically apply a small bank’s credits to reduce its regular 

assessment up to the entire amount of the assessment.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

1 There are additional adjustments to the assessment base for banker’s banks and custodial banks.

2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

3 Large banks are generally those with assets of $10 billion or more.

4 The assessment base for the surcharge is a large bank’s regular assessment base reduced by $10 billion (and subject to additional 

adjustment for affiliated banks).
2 0 1 8  •  Volume 1 2  • Number 2

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.13

1.17 1.18 1.20 1.20 1.24

1.30

1.03

1.07 1.09 1.11

1.28 1.30

3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 3/18

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

1st 

Quarter 

2018

4th 

Quarter 

2017

3rd 

Quarter 

2017

2nd 

Quarter 

2017

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd 

Quarter 

2016

1st 

Quarter 

2016

4th 

Quarter 

2015

3rd 

Quarter 

2015

2nd 

Quarter 

2015

1st 

Quarter 

2015

Beginning Fund Balance $92,747 $90,506 $87,588 $84,928 $83,162 $80,704 $77,910 $75,120 $72,600 $70,115 $67,589 $65,296 $62,780

Changes in Fund Balance:

Assessments earned 2,850 2,656 2,568 2,634 2,737 2,688 2,643 2,328 2,328 2,160 2,170 2,328 2,189

Interest earned on 

investment securities 338 305 274 251 227 189 171 164 147 128 122 113 60

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 433 443 404 450 442 437 422 441 415 447 410 434 396

Provision for insurance 

losses -65 -203 -512 -233 765 -332 -566 -627 -43 -930 -578 -317 -426

All other income, 

net of expenses 1 3 1 4 2 3 3 2 5 12 2 3 6

Unrealized gain/(loss) on 

available-for-sale 

securities** -496 -481 -33 -12 7 -317 -167 110 412 -298 64 -34 231

Total fund balance change 2,325 2,242 2,918 2,660 1,766 2,457 2,794 2,790 2,520 2,485 2,526 2,293 2,516

Ending Fund Balance 95,072 92,747 90,506 87,588 84,928 83,162 80,704 77,910 75,120 72,600 70,115 67,589 65,296

Percent change from 

 four quarters earlier 11.95 11.53 12.14 12.42 13.06 14.55 15.10 15.27 15.05 15.64 29.08 32.37 33.55

Reserve Ratio (%) 1.30 1.30 1.28 1.24 1.20 1.20 1.18 1.17 1.13 1.11 1.09 1.07 1.03

Estimated Insured 

Deposits 7,334,558 7,150,843 7,094,228 7,042,277 7,075,295 6,910,931 6,813,252 6,672,294 6,659,996 6,519,715 6,406,678 6,333,620 6,333,948

Percent change from 

 four quarters earlier 3.66 3.47 4.12 5.55 6.24 6.00 6.35 5.35 5.15 5.23 4.61 3.91 3.70

Domestic Deposits 12,305,735 12,129,449 11,966,432 11,827,933 11,856,691 11,693,371 11,506,877 11,242,960 11,156,523 10,952,922 10,698,306 10,632,635 10,618,958

Percent change from 

 four quarters earlier 3.79 3.73 3.99 5.20 6.28 6.76 7.56 5.74 5.06 5.21 4.75 5.28 6.59

Assessment Base*** 15,067,900 15,001,354 14,834,412 14,703,143 14,620,990 14,563,517 14,383,150 14,194,051 13,994,519 13,833,119 13,662,701 13,589,504 13,533,515

Percent change from 

 four quarters earlier 3.06 3.01 3.14 3.59 4.48 5.28 5.27 4.45 3.41 3.65 4.19 5.33 5.78

Number of Institutions 

Reporting 5,615 5,679 5,747 5,796 5,865 5,922 5,989 6,067 6,131 6,191 6,279 6,357 6,428

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

3/15 $65,296 $6,333,948

6/15 67,589 6,333,620

9/15 70,115 6,406,678

12/15 72,600 6,519,715

3/16 75,120 6,659,996

6/16 77,910 6,672,294

9/16 80,704 6,813,252

12/16 83,162 6,910,931

3/17 84,928 7,075,295

6/17 87,588 7,042,277

9/17 90,506 7,094,228

12/17 92,747 7,150,843

3/18 95,072 7,334,558

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2018  2017** ** 2017 2016 2015 2014 2013 2012

Problem Institutions

Number of institutions 92 112 95 123 183 291 467 651

Total assets $56,445 $23,675 $13,939 $27,624 $46,780 $86,712 $152,687 $232,701

Failed Institutions

Number of institutions 0 3 8 5 8 18 24 51

Total assets***** $0 $490 $5,082 $277 $6,706 $2,914 $6,044 $11,617

* Quarterly financial statement results are unaudited.

** Includes unrealized postretirement benefit gain (loss).

*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

 Through March 31.

** *** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions)

March 31, 2018

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 4,880 $16,327,788 $11,298,929 $6,522,266

 FDIC-Supervised 3,245 2,556,412 2,015,956 1,390,461

 OCC-Supervised 867 11,048,021 7,381,926 4,099,093

 Federal Reserve-Supervised 768 2,723,355 1,901,047 1,032,712

FDIC-Insured Savings Institutions 726 1,203,678 957,871 773,675

 OCC-Supervised 336 772,797 630,520 517,152

 FDIC-Supervised 352 400,745 303,633 237,484

 Federal Reserve-Supervised 38 30,136 23,718 19,039

Total Commercial Banks and Savings Institutions 5,606 17,531,466 12,256,800 7,295,941

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 89,222 48,935 38,617

Total FDIC-Insured Institutions 5,615 17,620,688 12,305,735 7,334,558

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending December 31, 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 3,334 58.71 $2,684.8 17.90

3.01 - 6.00 1,587 27.95 11,331.2 75.53

6.01 - 10.00 584 10.28 817.8 5.45

10.01 - 15.00 68 1.20 134.3 0.89

15.01 - 20.00 91 1.60 14.3 0.10

20.01 - 25.00 8 0.14 5.7 0.04

> 25.00 7 0.12 13.4 0.09

* 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.

Note: Certain row labels in Table I-C were incorrect in the printed version of the Fourth Quarter 2017 Quarterly Banking 

Profile (as published within the FDIC Quarterly, Volume 12, Number 1). The labels have been corrected in Table I-C and 

can be obtained on the FDIC website at https://www.fdic.gov/bank/analytical/qbp/2017dec/qbp.pdf. Alternatively, you may 

request a copy from the FDIC Public Information Center by calling 877-275-3342.
2 0 1 8  •  Volume 1 2  • Number 2

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call Report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered 

community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), 

problem institutions, failed institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository insti1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

tutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions 

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports (TFR) submitted 

by all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

which is the sum of the individual numerator values divided by the 

sum of individual denominator values. All asset and liability figures 

used in calculating performance ratios represent average amounts for 

the period (beginning-of-period amount plus end-of-period amount 

plus any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

are included in average assets, since the year-to-date income includes 

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

base period to totals for institutions in the current period. For the 

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup. When community 

bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions 

that were subsequently merged into current community banks.

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home 

state. In addition, institutions may relocate across state lines or 

change their charters, resulting in an inter-regional or inter-industry 

migration; institutions can move their home offices between regions, 

savings institutions can convert to commercial banks, or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Financial accounting pronouncements by the Financial Accounting 

Standards Board (FASB) can result in changes in an individual 

bank’s accounting policies and in the Call Reports they submit. Such 

accounting changes can affect the aggregate amounts presented in the 

QBP for the current period and the period-to-period comparability of 

such financial data. 

The current quarter’s Financial Institution Letter (FIL) and related 

Call Report supplemental instructions can provide additional explanation to the QBP reader beyond any material accounting changes 

discussed in the QBP analysis. 

https://www.fdic.gov/news/news/financial/2018/fil18017.html

https://www.fdic.gov/news/news/financial/2018/fil18017.pdf

https://www.fdic.gov/regulations/resources/call/call.html

Further information on changes in financial statement presentation, 

income recognition and disclosure is available from the FASB. http://

www.fasb.org/jsp/FASB/Page/LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of deposits in banks’ domestic offices with certain 

adjustments.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 
2 0 1 8  •  Volume 1 2  • Number 2

28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity Tier 1 capital ratio – ratio of common equity 

Tier 1 capital to risk-weighted assets. Common equity Tier 1 capital 

includes common stock instruments and related surplus, retained 

earnings, accumulated other comprehensive income (AOCI), and 

limited amounts of common equity Tier 1 minority interest, minus 

applicable regulatory adjustments and deductions. Items that are fully 

deducted from common equity Tier 1 capital include goodwill, other 

intangible assets (excluding mortgage servicing assets) and certain 

deferred tax assets; items that are subject to limits in common equity 

Tier 1 capital include mortgage servicing assets, eligible deferred tax 

assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative plus an additional amount for potential future credit exposure 

based on the notional amount, the remaining maturity and type of 

the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified future 

date, a specific quantity of an underlying variable or index at a 

specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, 

as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning 

March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Beginning September 30, 2009, insured deposits include deposits in 

accounts of $100,000 to $250,000 that are covered by a temporary 

increase in the FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and Consumer 

Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. 

Also, the Dodd-Frank Act amended the Federal Deposit Insurance 

Act to include noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing transaction accounts were fully insured, without 

limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on the 

balance sheet—including trading assets and liabilities, available-forsale securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 

of fair values. During periods of market stress, the fair values of some 

financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC-insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships, and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, 

less subsequent quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other loans 

secured by real estate.

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed from 

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions that 

actually filed a financial report.

New reporters – insured institutions filing quarterly financial reports 

for the first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that filed a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.
2 0 1 8  •  Volume 1 2  • Number 2

30 FDIC QUARTERLY

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet 

items multiplied by risk-weights that range from zero to 200 percent. 

A conversion factor is used to assign a balance sheet equivalent 

amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity” 

(reported at amortized cost (book value)), securities designated as 

“available-for-sale” (reported at fair (market) value), and equity 

securities with readily determinable fair values not held for trading.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for 

income taxes. Thrift Financial Report (TFR) filers also include gains 

(losses) on the sales of assets held for sale. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have been 

securitized, except an interest that is a form of recourse or other 

seller-provided credit enhancement. Seller’s interests differ from 

the securities issued to investors by the securitization structure. The 

principal amount of a seller’s interest is generally equal to the total 

principal amount of the pool of assets included in the securitization 

structure less the principal amount of those assets attributable to 

investors, i.e., in the form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending Fund 

(SBLF) was enacted into law in September 2010 as part of the Small 

Business Jobs Act of 2010 to encourage lending to small businesses 

by providing capital to qualified community institutions with assets 

of less than $10 billion. The SBLF Program is administered by the 

U.S. Treasury Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx).

Under the SBLF Program, the Treasury Department purchased 

noncumulative perpetual preferred stock from qualifying depository 

institutions and holding companies (other than Subchapter S and 

mutual institutions). When this stock has been issued by a depository 

institution, it is reported as “Perpetual preferred stock and related 

surplus.” For regulatory capital purposes, this noncumulative 

perpetual preferred stock qualifies as a component of Tier 1 capital. 

Qualifying Subchapter S corporations and mutual institutions issue 

unsecured subordinated debentures to the Treasury Department 

through the SBLF. Depository institutions that issued these 

debentures report them as “Subordinated notes and debentures.” 

For regulatory capital purposes, the debentures are eligible for 

inclusion in an institution’s Tier 2 capital in accordance with their 

primary federal regulator’s capital standards. To participate in the 

SBLF Program, an institution with outstanding securities issued 

to the Treasury Department under the Capital Purchase Program 

(CPP) was required to refinance or repay in full the CPP securities 

at the time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP remain 

outstanding after the refinancing of the CPP stock through the SBLF 

Program unless the institution chooses to repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal income 

tax purposes. It is generally not subject to any federal income taxes at 

the corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings.

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the assets 

of the financial institution.

Unearned income and contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured 

by commercial real estate, and unused commitments to originate 

or purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.