FDIC QUARTERLY A

Quarterly

2016

Volume 10, Number 2

Federal Deposit 

Insurance Corporation

Quarterly Banking Profile:

First Quarter 2016

Highlights:

■ First-Quarter Net Income of $39.1 Billion Is 2 Percent 

Lower Than the Year Before

■ Troubled Commercial and Industrial Loan Balances 

Register a Sharp Increase

■ Community Bank Net Income Improves More Than 

7 Percent From First Quarter 2015

■ Community Bank Loan Balances Increase 8.9 Percent 

From the Year Before

■ DIF Reserve Ratio Rises 2 Basis Points to 1.13 Percent

■ Final Rule Approved in March 2016 to Raise DIF to 

1.35 Percent of Insured Deposits

■ Final Rule Approved in April 2016 Revises Calculation 

of Insurance Assessments for Small Banks
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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individual feature articles, subscribe at www.fdic.gov/about/subscriptions/index.html.

Chairman

Martin J. Gruenberg

Director, Division of Insurance and Research

Diane Ellis

Executive Editor

Richard A. Brown

Managing Editors

Matthew Green

Jack Reidhill

Philip A. Shively

Editors

Clayton Boyce

Peggi Gill

Frank Solomon

Kathy Zeidler

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993
FDIC QUARTERLY i

2016 FDIC QUARTERLY

Volume 10 • 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 2016

FDIC-insured institutions reported aggregate net income of $39.1 billion in the first quarter 

of 2016, down $765 million (1.9 percent) from a year earlier. The decline in earnings was 

mainly attributable to a $4.2 billion increase in provisions for loan losses and a $2.2 billion 

decline in noninterest income. The increase in loan-loss provisions is primarily attributable 

to rising levels of troubled loans to commercial and industrial borrowers, particularly in 

the energy sector. The decline in noninterest income reflects weakness in trading income 

at a few large banks, as well as lower income from asset servicing. Of the 6,122 insured 

institutions reporting first quarter financial results, more than half (61.4 percent) reported 

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

in the first quarter fell from 5.7 percent a year earlier to 5 percent, the lowest level since the 

first quarter of 1998. See page 1.

Community Bank Performance Community banks—which represent 93 percent of insured institutions—reported net 

income of $5.2 billion in the first quarter, up $353.6 million (7.4 percent) from the yearearlier quarter. Improved revenue from net interest income and noninterest income was 

offset in part by higher loan-loss provisions and noninterest expense. Asset quality indicators 

continued to improve, and community banks accounted for 44 percent of small loans to 

businesses. See page 15.

Insurance Fund Indicators Insured deposits increased by 2 percent in the first quarter of 2016. The DIF reserve ratio 

rose to 1.13 percent on March 31, 2016, up from 1.11 percent at December 31, 2015, and 

1.03 percent at March 31, 2015. Final rules were approved to raise the DIF to 1.35 percent 

of insured deposits and revise the calculation of insurance assessments for small banks. 

See page 23.

2016 FDIC QUARTERLY

QUARTERLY BANKING PROFILE First Quarter 2016

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

First-Quarter Net Income of $39.1 Billion Is 2 Percent Lower Than the Year Before

Loan-Loss Provisions Are $4.2 Billion Higher

Troubled Commercial and Industrial Loan Balances Register a Sharp Increase

Loan Growth Rate Continues to Rise

Industry Assets Post Largest Quarterly Increase in Eight Years

Higher Expenses for 

Credit Losses Weigh on 

First-Quarter Earnings

Higher expenses for loan losses and lower noninterest income from trading and asset 

servicing contributed to a $765 million (1.9 percent) decline in quarterly earnings for FDICinsured institutions in first quarter 2016. Most of the year-over-year drop in net income was 

concentrated among the largest banks. More than half of all banks—61.4 percent—reported 

higher quarterly earnings compared with first quarter 2015. Only 5 percent of banks 

reported negative net income in the quarter, down from 5.7 percent the year before. The 

average return on assets in the first quarter was 0.97 percent, down from 1.02 percent in first 

quarter 2015.

Net Interest Margins 

Improve From Year-Ago 

Levels

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

totaled $172.9 billion in the quarter, up $4.6 billion (2.7 percent) from the year earlier. Net 

interest income was $6.7 billion (6.4 percent) higher, while total noninterest income was 

$2.2 billion (3.4 percent) lower. The improvement in net interest income was attributable to 

wider net interest margins, as average asset yields increased more rapidly than average funding costs, and to a 3.7 percent increase in average interest-earning assets compared with first 

quarter 2015. The average net interest margin rose to 3.10 percent, from 3.02 percent the 

year before, as 57 percent of banks reported year-over-year improvement in their margins. 

The drop in noninterest income was concentrated among larger banks, and reflected a 

$1.9 billion (24.9 percent) decline in trading income, as well as a $736 million (46 percent) 

decline in servicing income.

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-20

-10

0

10

20

30

40

50

1 2 3 4 1 2 3 4 123 412 3 4 1 2 3 412 3 4 1

2010 2011

17.4

20.9 23.8 21.4

28.7

2012

28.5

35.2

25.3

34.8

2013

34.5 37.5 34.4

2014

40.3 38.2 36.1

39.8 37.3

2015

40.1 38.5 36.5

2016

39.8 43.0 40.4 40.7 39.1

Chart 1

Source: FDIC.

Percentage of All FDIC-Insured Institutions

Unprotable Institutions and 

Institutions With Increased Earnings

All FDIC-Insured Institutions

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Percentage of Institutions With 

Year-Over-Year Quarterly Income Growth

Percentage of Institutions With Quarterly Losses

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

2 FDIC QUARTERLY

Aggregate Loan-Loss 

Provisions Continue to Rise

Banks set aside $12.5 billion in provisions for loan losses in the first quarter, a year-overyear increase of $4.2 billion (49.7 percent). This is the largest quarterly increase since fourth 

quarter 2012, and marks the seventh consecutive quarter that loan-loss provisions have 

increased. Slightly more than one-third of all banks—35.6 percent—reported higher quarterly loss provisions than the year before. Most of the increase in loss provisions occurred at 

larger banks. Quarterly provision expenses at banks with assets greater than $10 billion were 

$4.1 billion (54.8 percent) higher than in first quarter 2015, while total provisions at banks 

with less than $10 billion in assets were $140 million (15.8 percent) higher.

Loan Losses Post Second 

Consecutive Quarterly 

Increase

Quarterly net charge-offs (NCOs) totaled $10.1 billion, an increase of $1.1 billion 

(12.3 percent) compared with a year earlier. This is the second consecutive quarter that 

NCOs have posted a year-over-year increase, following 21 quarters in a row in which NCOs 

fell. NCOs of commercial and industrial (C&I) loans were $1.1 billion (144.7 percent) higher 

than in first quarter 2015. Smaller year-over-year NCO increases were reported in credit 

cards, auto loans, real estate construction and development loans, and agricultural production loans. The average NCO rate in the first quarter was 0.46 percent, compared with 

0.43 percent a year earlier. Fewer than half of all banks—41.9 percent—reported year-overyear increases in quarterly NCOs.

Noncurrent C&I Loans 

Increase by $9.3 Billion

The amount of loan balances that were noncurrent—90 days or more past due or in nonaccrual status—rose by $3.3 billion (2.4 percent) during the first three months of 2016. This 

is the first quarterly increase in total noncurrent loan balances in 24 quarters, driven by a 

$9.3 billion (65.1 percent) increase in noncurrent C&I loans. This is the largest quarterly 

increase in noncurrent C&I loans since first quarter 1987. Most of the increase occurred at 

larger banks. At institutions with assets greater than $10 billion, noncurrent C&I loans rose 

by $8.9 billion (82.1 percent). At institutions with less than $10 billion in assets, noncurrent C&I balances increased by $415 million (12 percent). A large part of the weakness in 

C&I loans is attributable to loans to the energy sector, especially oil and gas producers. 

Sharply lower energy prices have reduced the ability of many borrowers to service their 

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Chart 3

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

All FDIC-Insured Institutions

Source: FDIC.

-35

-30

-25

-20

-15

-10

-5

0

5

10

$ Billions

4.2

-30.7

1 2 3 4 123 4 1 234 1 2 3 4 1 2 3 4 1

2011 2012 2013 2014 2015 2016

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

debts, and a large share of the direct lending exposure of the banking industry to these 

borrowers is held by larger banks. The average noncurrent loan rate rose from 1.56 percent 

to 1.58 percent during the quarter. This is still the second-lowest noncurrent rate for 

the industry since year-end 2007. For C&I loans, the average noncurrent rate rose from 

0.78 percent to 1.24 percent. This is the highest noncurrent rate for C&I loans since year-end 

2011. Noncurrent rates declined for all other major loan categories in the first quarter.

Loss Reserves Increase for 

the First Time in Six Years

As a result of the increase in noncurrent loans, the industry’s coverage ratio of loan-loss 

reserves to noncurrent loans posted its first quarterly decline in 14 quarters, falling from 

86 percent at the end of 2015 to 85.5 percent at the end of March. Banks increased their 

loan-loss reserves by $2.1 billion (1.8 percent), as they added more in loan-loss provisions 

($12.5 billion) than they took out in net charge-offs ($10.1 billion). This is the first time in 

six years that the industry’s aggregate loan-loss reserves have increased. Banks with assets 

greater than $1 billion, which itemize their reserves for major loan categories, reported a 

$3.3 billion (10.4 percent) increase in their reserves for estimated losses on non-real-estate 

commercial loans in the first quarter.

Equity Capital Increases by 

$39.3 Billion

An increase in retained earnings and higher market values in securities portfolios helped 

lift the equity capital of insured institutions by $39.3 billion (2.2 percent) during the first 

quarter. This is the largest quarterly increase in equity since third quarter 2009. While net 

income was lower than the year before, banks reduced their cash dividends by $1.6 billion 

(7.1 percent) compared with first quarter 2015. As a result, retained earnings totaled 

$18.3 billion, a year-over-year increase of $815 million (4.7 percent). In addition, accumulated other comprehensive income increased by $17.3 billion during first quarter 2016, 

buoyed by higher unrealized gains on available-for-sale securities. The industry’s ratio of 

equity capital to total assets increased from 11.24 percent to 11.26 percent during the quarter. 

At the end of the first quarter, 99 percent of all insured institutions, holding 99.9 percent of 

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

category as defined for Prompt Corrective Action purposes.

Source: FDIC.

Percentage

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Noncurrent Loan Rate

Quarterly Net Charge-O Rate

Chart 5

Source: FDIC.

Percentage

C & I Loan Performance

All FDIC-Insured Institutions

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Noncurrent Loan Rate

Quarterly Net Charge-O Rate

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

4 FDIC QUARTERLY

Loan Growth 

Remains Strong

Total assets increased by $325.6 billion (2 percent) during the quarter, the largest quarterly 

increase in industry assets since first quarter 2008. Balances with Federal Reserve banks 

increased by $79.7 billion (6.7 percent), primarily at large banks. Investment securities portfolios grew by $31.1 billion (0.9 percent), primarily as a result of a $23.4 billion increase in unrealized gains on available-for-sale securities. Total loans and leases increased by $99.7 billion 

(1.1 percent) during the first three months of 2016. C&I loans increased by $71.2 billion 

(3.9 percent), with the acquisition of a commercial finance business from outside the industry 

contributing to the strong growth in reported C&I loan balances. Real estate loans secured 

by nonfarm nonresidential real estate properties increased by $20.3 billion (1.6 percent), and 

1-to-4 family residential mortgage loans rose by $14.3 billion (0.7 percent). Credit card balances 

posted a seasonal decline of $32.8 billion (4.3 percent), as borrowers paid down balances 

incurred during the holiday season. Over the 12 months ended March 31, total loan and lease 

balances increased by 6.9 percent. This is the highest 12-month growth rate for loan portfolios 

since midyear 2007–midyear 2008. Unused credit lines increased by $121.6 billion (1.8 percent) 

during the quarter, and are up by $451.1 billion (6.9 percent) over the previous 12 months.

Deposits Fund Most of the 

Industry’s Asset Growth

Total deposits increased by $239.5 billion (2 percent) during the quarter. Deposits in domestic offices rose by $201.3 billion (1.8 percent), while deposits in foreign offices increased 

by $38.2 billion (3 percent). Domestic deposits in interest-bearing accounts grew by 

$218.4 billion (2.8 percent), while balances in noninterest-bearing domestic accounts fell 

by $17.1 billion (0.6 percent). Banks increased their nondeposit liabilities by $47 billion 

(2.4 percent), as liabilities in trading accounts rose by $38 billion (15.4 percent).

One Insured Bank Failed in 

the First Quarter

The number of insured commercial banks and savings institutions filing quarterly financial reports declined from 6,182 to 6,122 in the first quarter. During the quarter, mergers 

absorbed 58 insured institutions, while one insured bank failed. No new charters were 

added in the first quarter. The number of full-time equivalent employees totaled 2,039,887 

in the quarter, a net increase of 6,163 (0.3 percent) from the fourth quarter of 2015, but 2,799 

(0.1 percent) fewer than the year before.

Author:

Ross Waldrop

Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

Quarterly Change in Asset Funding

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-500

-400

-300

-200

-100

0

100

200

300

400

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Equity Capital

Nondeposit Liabilities

Deposits

Chart 7

Source: FDIC.

Assets ($ Billions) Number

Number and Assets of Banks on the “Problem List”

31

165

0

50

100

150

200

250

300

350

400

450

500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

100

200

300

400

500

600

700

800

900

1,000

Problem Bank Assets

Number of Problem Banks

Chart 8
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2016** 2015** 2015 2014 2013 2012 2011

Return on assets (%) 0.97 1.02 1.04 1.01 1.07 1.00 0.88

Return on equity (%) 8.62 9.12 9.30 9.01 9.54 8.90 7.79

Core capital (leverage) ratio (%) 9.61 9.48 9.59 9.44 9.40 9.15 9.07

Noncurrent assets plus other real estate owned to assets (%) 0.96 1.10 0.96 1.20 1.63 2.20 2.61

Net charge-offs to loans (%) 0.46 0.43 0.44 0.49 0.69 1.10 1.55

Asset growth rate (%) 3.27 5.82 2.66 5.59 1.94 4.02 4.30

Net interest margin (%) 3.10 3.02 3.07 3.14 3.26 3.42 3.60

Net operating income growth (%) -1.36 6.01 7.15 -0.72 12.82 17.76 43.60

Number of institutions reporting 6,122 6,419 6,182 6,509 6,812 7,083 7,357

Commercial banks 5,289 5,535 5,338 5,607 5,847 6,072 6,275

Savings institutions 833 884 844 902 965 1,011 1,082

Percentage of unprofitable institutions (%) 5.00 5.67 4.72 6.27 8.16 11.00 16.23

Number of problem institutions 165 253 183 291 467 651 813

Assets of problem institutions (in billions) $31 $60 $47 $87 $153 $233 $319

Number of failed institutions 1 4 8 18 24 51 92

Number of assisted institutions 0 0 0 0 0 0 0

* 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

2016

4th Quarter

2015

1st Quarter

2015

%Change 

15Q1-16Q1

Number of institutions reporting 6,122 6,182 6,419 -4.6

Total employees (full-time equivalent) 2,039,887 2,033,724 2,042,686 -0.1

CONDITION DATA

Total assets $16,293,443 $15,967,835 $15,777,989 3.3

Loans secured by real estate 4,419,244 4,375,101 4,203,636 5.1

 1-4 Family residential mortgages 1,918,539 1,904,269 1,855,274 3.4

 Nonfarm nonresidential 1,251,596 1,231,290 1,163,541 7.6

 Construction and development 284,246 274,884 245,984 15.6

 Home equity lines 457,505 465,297 483,906 -5.5

Commercial & industrial loans 1,913,330 1,842,170 1,749,152 9.4

Loans to individuals 1,474,257 1,497,956 1,383,943 6.5

 Credit cards 723,659 756,464 679,967 6.4

Farm loans 77,620 81,501 71,545 8.5

Other loans & leases 1,056,820 1,044,846 955,668 10.6

Less: Unearned income 2,109 2,079 1,928 9.4

Total loans & leases 8,939,162 8,839,496 8,362,016 6.9

Less: Reserve for losses 120,663 118,546 121,056 -0.3

Net loans and leases 8,818,499 8,720,950 8,240,960 7.0

Securities 3,384,656 3,353,559 3,267,342 3.6

Other real estate owned 14,049 14,700 19,339 -27.4

Goodwill and other intangibles 359,116 360,500 355,857 0.9

All other assets 3,717,122 3,518,126 3,894,492 -4.6

Total liabilities and capital 16,293,443 15,967,835 15,777,989 3.3

Deposits 12,429,484 12,189,990 11,958,412 3.9

 Domestic office deposits 11,106,439 10,905,117 10,578,233 5.0

 Foreign office deposits 1,323,045 1,284,872 1,380,179 -4.1

Other borrowed funds 1,379,952 1,385,671 1,362,839 1.3

Subordinated debt 91,747 91,597 94,842 -3.3

All other liabilities 551,989 499,432 590,320 -6.5

Total equity capital (includes minority interests) 1,840,272 1,801,146 1,771,569 3.9

 Bank equity capital 1,833,872 1,794,568 1,764,320 3.9

Loans and leases 30-89 days past due 58,616 64,293 61,385 -4.5

Noncurrent loans and leases 141,179 137,876 152,964 -7.7

Restructured loans and leases 71,109 72,147 79,503 -10.6

Mortgage-backed securities 1,895,546 1,871,667 1,773,843 6.9

Earning assets 14,653,442 14,365,762 14,102,979 3.9

FHLB Advances 481,183 495,033 433,048 11.1

Unused loan commitments 7,036,296 6,914,743 6,585,190 6.9

Trust assets 16,872,286 17,302,619 18,061,024 -6.6

Assets securitized and sold 803,719 820,686 940,322 -14.5

Notional amount of derivatives 195,508,395 182,006,727 206,694,352 -5.4

INCOME DATA

Full Year 

2015

Full Year 

2014 %Change

1st Quarter 

2016

1st Quarter 

2015

%Change 

15Q1-16Q1

Total interest income $478,517 $469,781 1.9 $125,246 $117,287 6.8

Total interest expense 46,508 47,128 -1.3 12,833 11,593 10.7

Net interest income 432,009 422,653 2.2 112,413 105,694 6.4

Provision for loan and lease losses 37,034 29,798 24.3 12,522 8,365 49.7

Total noninterest income 253,292 247,855 2.2 60,467 62,620 -3.4

Total noninterest expense 417,302 422,788 -1.3 104,782 103,495 1.2

Securities gains (losses) 3,635 3,202 13.5 940 1,309 -28.2

Applicable income taxes 70,596 68,177 3.6 17,372 17,832 -2.6

Extraordinary gains, net -10 -55 N/M -10 43 N/M

Total net income (includes minority interests) 163,993 152,893 7.3 39,133 39,974 -2.1

 Bank net income 163,507 152,263 7.4 39,056 39,821 -1.9

Net charge-offs 37,201 39,557 -6.0 10,115 9,005 12.3

Cash dividends 104,513 90,196 15.9 20,714 22,295 -7.1

Retained earnings 58,994 62,067 -5.0 18,341 17,526 4.7

Net operating income 161,436 150,668 7.2 38,477 39,006 -1.4

N/M - Not Meaningful
2 0 1 6  •Volume 1 0  • Number 2

6 FDIC QUARTERLY

TABLE III-A. First Quarter 2016, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 6,122 14 5 1,460 3,046 503 58 336 634 66

Commercial banks 5,289 12 5 1,443 2,738 125 43 306 560 57

Savings institutions 833 2 0 17 308 378 15 30 74 9

Total assets (in billions) $16,293.4 $540.1 $4,014.9 $275.6 $5,742.1 $404.9 $192.5 $60.1 $112.6 $4,950.8

Commercial banks 15,202.8 426.1 4,014.9 270.1 5,350.7 151.7 96.4 54.1 98.1 4,740.7

Savings institutions 1,090.6 113.9 0.0 5.4 391.4 253.2 96.1 5.9 14.5 210.1

Total deposits (in billions) 12,429.5 315.1 2,878.2 228.6 4,486.2 323.0 162.7 48.8 95.0 3,892.0

Commercial banks 11,568.8 228.1 2,878.2 225.4 4,198.0 126.3 81.1 44.7 83.1 3,703.9

Savings institutions 860.7 87.0 0.0 3.2 288.2 196.7 81.6 4.1 11.9 188.1

Bank net income (in millions) 39,056 3,750 8,195 838 12,899 968 509 351 248 11,297

Commercial banks 35,690 2,539 8,195 815 12,079 499 307 167 229 10,859

Savings institutions 3,366 1,211 0 23 820 469 203 184 20 437

Performance Ratios (annualized, %)

Yield on earning assets 3.45 10.77 2.69 4.11 3.66 3.28 4.12 3.01 3.91 2.92

Cost of funding earning assets 0.35 1.04 0.34 0.46 0.39 0.47 0.43 0.33 0.40 0.23

Net interest margin 3.10 9.73 2.35 3.64 3.28 2.81 3.69 2.68 3.51 2.69

Noninterest income to assets 1.50 4.14 1.77 0.64 1.18 0.96 1.30 5.98 0.86 1.42

Noninterest expense to assets 2.60 6.20 2.40 2.50 2.67 2.29 2.65 5.26 2.96 2.27

Loan and lease loss provision to assets 0.31 2.59 0.26 0.13 0.21 -0.10 0.54 0.03 0.09 0.26

Net operating income to assets 0.95 2.75 0.83 1.19 0.89 0.94 1.07 2.32 0.85 0.90

Pretax return on assets 1.40 4.36 1.16 1.44 1.29 1.46 1.68 3.19 1.09 1.36

Return on assets 0.97 2.75 0.83 1.22 0.91 0.97 1.08 2.36 0.89 0.92

Return on equity 8.62 18.92 8.33 10.62 7.69 8.53 10.71 15.98 7.51 8.20

Net charge-offs to loans and leases 0.46 3.07 0.57 0.10 0.20 0.06 0.68 0.07 0.15 0.42

Loan and lease loss provision to 

net charge-offs 123.79 110.03 124.86 200.55 153.53 -249.36 110.14 154.71 110.66 123.33

Efficiency ratio 59.85 46.51 62.20 61.61 63.69 62.99 53.89 62.27 71.90 57.81

% of unprofitable institutions 5.00 0.00 0.00 2.53 4.86 9.15 1.72 8.04 7.10 3.03

% of institutions with earnings gains 61.39 35.71 40.00 62.12 63.99 56.06 58.62 56.25 54.73 65.15

Condition Ratios (%)

Earning assets to total assets 89.93 92.58 87.20 93.29 90.57 94.82 95.68 91.70 92.64 90.24

Loss allowance to:

Loans and leases 1.35 3.40 1.58 1.40 1.18 0.89 1.14 1.67 1.39 1.20

Noncurrent loans and leases 85.47 294.19 87.48 154.06 97.85 34.94 95.76 120.00 100.85 57.61

Noncurrent assets plus

other real estate owned to assets 0.96 0.88 0.68 0.75 0.99 1.84 0.89 0.62 1.12 1.10

Equity capital ratio 11.26 14.83 9.89 11.57 11.82 11.37 10.02 14.65 11.89 11.28

Core capital (leverage) ratio 9.61 12.35 8.87 10.75 9.99 11.15 10.14 13.72 11.52 9.16

Common equity tier 1 capital ratio 12.69 12.34 12.93 14.46 12.10 21.82 13.82 30.72 19.92 12.37

Tier 1 risk-based capital ratio 12.77 12.46 12.96 14.47 12.21 21.87 14.03 30.73 19.95 12.48

Total risk-based capital ratio 14.24 14.72 14.31 15.58 13.67 22.71 14.82 31.65 21.09 14.00

Net loans and leases to deposits 70.95 125.52 48.91 79.02 86.73 77.58 82.60 33.97 64.37 63.75

Net loans to total assets 54.12 73.24 35.06 65.54 67.76 61.89 69.80 27.60 54.34 50.11

Domestic deposits to total assets 68.17 57.58 46.17 82.95 77.37 79.76 84.49 81.23 84.40 73.55

Structural Changes

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

Institutions absorbed by mergers 58 0 0 4 48 1 0 2 2 1

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

PRIOR FIRST QUARTERS

(The way it was...)

Number of institutions 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

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

Total assets (in billions) 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

 2011 13,414.3 676.3 3,164.6 200.3 4,084.5 795.8 118.4 51.8 137.1 4,185.5

Return on assets (%) 2015 1.02 3.04 0.90 1.17 0.91 0.76 1.02 2.17 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

 2011 0.86 3.68 0.60 1.04 0.59 0.48 1.33 1.34 0.80 0.90

Net charge-offs to loans & leases (%) 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

 2011 1.83 6.67 1.96 0.31 1.34 0.98 1.77 0.76 0.39 1.40

Noncurrent assets plus 

OREO to assets (%) 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

 2011 2.96 1.72 2.01 1.64 3.59 2.93 1.22 0.93 1.78 3.43

Equity capital ratio (%) 2015 11.18 15.30 9.52 11.44 11.98 11.34 9.93 14.69 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

 2011 11.25 16.03 8.72 10.95 11.60 10.30 10.81 15.07 11.16 12.22

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

FDIC QUARTERLY 7

TABLE III-A. First Quarter 2016, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 6,122 1,663 3,734 616 109 752 753 1,325 1,528 1,299 465

Commercial banks 5,289 1,464 3,231 501 93 388 680 1,107 1,470 1,218 426

Savings institutions 833 199 503 115 16 364 73 218 58 81 39

Total assets (in billions) $16,293.4 $97.8 $1,179.8 $1,723.2 $13,292.6 $3,084.8 $3,417.7 $3,624.0 $3,543.5 $962.3 $1,661.2

Commercial banks 15,202.8 86.5 999.9 1,423.1 12,693.3 2,661.9 3,335.7 3,511.9 3,487.6 845.0 1,360.7

Savings institutions 1,090.6 11.3 179.9 300.1 599.3 422.9 82.0 112.0 55.9 117.3 300.4

Total deposits (in billions) 12,429.5 82.2 983.3 1,368.9 9,995.0 2,305.2 2,671.1 2,652.2 2,668.7 794.7 1,337.5

Commercial banks 11,568.8 73.5 840.7 1,141.6 9,513.0 1,988.3 2,604.6 2,570.7 2,624.6 697.8 1,082.8

Savings institutions 860.7 8.8 142.7 227.3 482.0 316.9 66.5 81.5 44.1 96.9 254.7

Bank net income (in millions) 39,056 228 3,023 4,454 31,351 6,222 7,486 8,284 9,071 2,495 5,497

Commercial banks 35,690 201 2,603 3,813 29,073 5,469 7,317 7,974 8,957 2,156 3,816

Savings institutions 3,366 26 420 641 2,278 753 169 309 114 339 1,681

Performance Ratios (annualized, %)

Yield on earning assets 3.45 4.10 4.12 3.99 3.32 3.50 3.48 2.82 3.63 3.96 4.01

Cost of funding earning assets 0.35 0.43 0.46 0.42 0.34 0.43 0.30 0.30 0.39 0.32 0.39

Net interest margin 3.10 3.67 3.66 3.58 2.98 3.07 3.18 2.52 3.24 3.64 3.62

Noninterest income to assets 1.50 1.10 1.13 1.13 1.58 1.33 1.41 1.82 1.31 1.34 1.81

Noninterest expense to assets 2.60 3.33 3.16 2.80 2.52 2.60 2.62 2.58 2.42 3.05 2.72

Loan and lease loss provision to assets 0.31 0.09 0.11 0.16 0.35 0.30 0.38 0.20 0.32 0.29 0.44

Net operating income to assets 0.95 0.90 1.00 1.03 0.94 0.80 0.86 0.92 1.03 1.02 1.32

Pretax return on assets 1.40 1.08 1.30 1.50 1.40 1.19 1.29 1.30 1.49 1.36 2.07

Return on assets 0.97 0.93 1.03 1.05 0.95 0.81 0.88 0.93 1.04 1.05 1.34

Return on equity 8.62 7.26 9.14 8.94 8.54 6.80 7.19 8.94 10.21 9.43 11.07

Net charge-offs to loans and leases 0.46 0.11 0.09 0.19 0.55 0.48 0.54 0.26 0.55 0.30 0.52

Loan and lease loss provision to 

net charge-offs 123.79 144.56 174.37 125.17 122.69 113.25 120.42 152.37 109.63 151.84 139.77

Efficiency ratio 59.85 74.28 69.40 62.58 58.46 62.95 60.82 63.03 56.36 64.64 51.81

% of unprofitable institutions 5.00 11.00 3.00 1.46 1.83 4.92 8.23 6.04 3.53 3.54 5.81

% of institutions with earnings gains 61.39 56.95 62.40 68.34 55.05 59.84 63.48 59.02 58.31 64.90 67.53

Condition Ratios (%)

Earning assets to total assets 89.93 92.14 92.94 92.20 89.36 89.33 89.40 89.02 89.67 91.69 93.69

Loss allowance to:

Loans and leases 1.35 1.47 1.35 1.19 1.38 1.27 1.38 1.37 1.41 1.29 1.33

Noncurrent loans and leases 85.47 110.69 123.23 111.18 79.86 99.41 79.13 79.89 69.94 92.75 157.66

Noncurrent assets plus

other real estate owned to assets 0.96 1.22 1.09 0.92 0.95 0.77 1.13 0.93 1.14 1.10 0.56

Equity capital ratio 11.26 12.86 11.34 11.73 11.17 12.01 12.35 10.32 10.14 11.11 12.12

Core capital (leverage) ratio 9.61 12.47 10.95 10.41 9.37 9.82 9.68 9.25 8.98 9.96 11.04

Common equity tier 1 capital ratio 12.69 20.13 15.43 13.47 12.31 12.72 12.53 12.59 11.79 13.08 14.97

Tier 1 risk-based capital ratio 12.77 20.17 15.48 13.50 12.40 12.88 12.63 12.62 11.79 13.19 15.15

Total risk-based capital ratio 14.24 21.27 16.60 14.53 13.96 14.39 14.12 13.78 13.71 14.36 16.28

Net loans and leases to deposits 70.95 68.51 78.39 85.84 68.20 72.12 73.86 66.17 68.62 76.37 74.01

Net loans to total assets 54.12 57.62 65.34 68.19 51.28 53.90 57.72 48.43 51.68 63.07 59.59

Domestic deposits to total assets 68.17 84.10 83.34 79.17 65.27 66.98 75.23 63.78 57.50 82.46 79.86

Structural Changes

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

Institutions absorbed by mergers 58 18 38 2 0 9 9 11 13 10 6

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

PRIOR FIRST QUARTERS

(The way it was...)

Number of institutions 2015 6,419 1,830 3,895 582 112 796 797 1,386 1,585 1,351 504

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

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

Total assets (in billions) 2015 $15,778.0 $107.6 $1,219.6 $1,573.0 $12,877.8 $3,020.2 $3,273.1 $3,633.2 $3,424.9 $923.7 $1,503.0

 2013 14,423.8 126.0 1,270.8 1,423.8 11,603.2 2,862.3 3,017.0 3,345.3 3,068.2 870.9 1,260.0

 2011 13,414.3 147.1 1,284.8 1,428.4 10,554.0 2,709.1 2,913.4 3,047.9 1,680.2 788.2 2,275.5

Return on assets (%) 2015 1.02 0.86 1.01 1.05 1.02 0.83 0.98 0.94 1.16 1.04 1.35

 2013 1.12 0.73 0.87 1.09 1.15 0.86 1.11 1.09 1.25 1.09 1.49

 2011 0.86 0.57 0.52 0.69 0.93 1.04 0.60 0.68 1.19 0.92 0.96

Net charge-offs to loans & leases (%) 2015 0.43 0.15 0.11 0.20 0.51 0.46 0.52 0.27 0.54 0.16 0.46

 2013 0.83 0.27 0.33 0.43 0.96 1.10 0.83 0.55 1.05 0.37 0.65

 2011 1.83 0.43 0.77 1.37 2.09 2.29 1.82 1.43 2.02 0.83 1.98

Noncurrent assets plus 

OREO to assets (%) 2015 1.10 1.39 1.33 1.15 1.07 0.82 1.37 1.04 1.36 1.12 0.61

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

 2011 2.96 2.39 3.39 3.47 2.84 2.05 3.97 2.75 4.05 3.02 2.18

Equity capital ratio (%) 2015 11.18 12.45 11.28 11.87 11.08 11.76 12.47 9.89 10.25 11.08 12.53

 2013 11.28 11.97 11.00 11.84 11.23 12.26 12.22 9.12 11.03 10.82 13.41

 2011 11.25 11.57 10.28 11.43 11.34 12.74 11.84 8.52 11.58 10.73 12.33

* See Table V-A (page 11) for explanations.
2 0 1 6  •Volume 1 0  • Number 2

8 FDIC QUARTERLY

TABLE IV-A. Full Year 2015, All FDIC-Insured Institutions

Asset Concentration Groups*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting 6,182 14 4 1,479 3,090 501 65 332 630 67

Commercial banks 5,338 12 4 1,461 2,779 120 49 298 557 58

Savings institutions 844 2 0 18 311 381 16 34 73 9

Total assets (in billions) $15,967.8 $549.1 $3,774.6 $277.6 $5,892.4 $385.7 $187.3 $57.5 $113.3 $4,730.3

Commercial banks 14,893.4 433.4 3,774.6 272.4 5,495.9 144.5 94.9 51.3 98.2 4,528.2

Savings institutions 1,074.4 115.7 0.0 5.2 396.5 241.3 92.4 6.1 15.2 202.1

Total deposits (in billions) 12,190.0 321.8 2,697.2 230.4 4,582.0 305.9 157.5 46.0 95.3 3,753.9

Commercial banks 11,349.5 235.6 2,697.2 227.2 4,292.9 120.4 79.9 41.8 82.8 3,571.6

Savings institutions 840.5 86.2 0.0 3.2 289.1 185.5 77.6 4.2 12.4 182.3

Bank net income (in millions) 163,507 14,490 33,961 2,625 53,687 3,118 1,872 1,522 1,013 51,219

Commercial banks 151,964 10,535 33,961 2,520 50,814 1,694 1,135 683 924 49,699

Savings institutions 11,543 3,955 0 105 2,873 1,424 737 840 89 1,520

Performance Ratios (%)

Yield on earning assets 3.40 10.50 2.58 4.10 3.57 3.24 4.07 3.03 3.87 3.00

Cost of funding earning assets 0.33 0.93 0.30 0.45 0.39 0.50 0.44 0.34 0.42 0.19

Net interest margin 3.07 9.57 2.28 3.64 3.19 2.74 3.63 2.69 3.45 2.81

Noninterest income to assets 1.62 4.47 1.81 0.66 1.26 0.86 1.36 6.92 0.99 1.65

Noninterest expense to assets 2.66 6.44 2.43 2.77 2.69 2.24 2.72 5.60 3.04 2.38

Loan and lease loss provision to assets 0.24 2.46 0.17 0.12 0.14 0.02 0.51 0.03 0.08 0.18

Net operating income to assets 1.03 2.84 0.86 0.94 0.94 0.80 1.03 2.63 0.87 1.09

Pretax return on assets 1.49 4.42 1.21 1.18 1.31 1.22 1.64 3.79 1.10 1.65

Return on assets 1.04 2.84 0.87 0.97 0.95 0.83 1.04 2.68 0.90 1.12

Return on equity 9.30 19.11 8.93 8.43 8.01 7.23 10.26 17.84 7.58 9.89

Net charge-offs to loans and leases 0.44 2.79 0.59 0.10 0.19 0.13 0.62 0.20 0.20 0.41

Loan and lease loss provision to 

net charge-offs 99.55 113.69 83.18 178.56 110.03 22.83 112.85 61.75 70.46 88.88

Efficiency ratio 59.92 47.61 63.33 62.30 64.33 64.80 54.90 59.46 72.59 55.70

% of unprofitable institutions 4.72 0.00 0.00 2.03 4.89 9.18 7.69 7.83 5.08 2.99

% of institutions with earnings gains 63.26 57.14 100.00 62.27 68.19 53.29 66.15 46.99 57.30 65.67

Condition Ratios (%)

Earning assets to total assets 89.97 92.50 87.49 92.81 90.51 94.66 97.22 91.71 92.51 90.06

Loss allowance to:

Loans and leases 1.34 3.20 1.59 1.38 1.17 0.96 1.14 1.69 1.39 1.20

Noncurrent loans and leases 85.98 274.03 87.52 172.42 103.89 36.45 89.88 115.06 95.55 55.14

Noncurrent assets plus

other real estate owned to assets 0.96 0.90 0.70 0.68 0.93 1.92 0.97 0.61 1.19 1.16

Equity capital ratio 11.24 14.29 10.13 11.32 11.77 11.36 10.12 15.02 11.80 11.08

Core capital (leverage) ratio 9.59 12.30 8.83 10.66 10.05 11.27 10.29 14.35 11.56 8.98

Common equity tier 1 capital ratio 12.66 11.87 13.11 14.33 12.16 21.83 13.68 32.09 19.83 12.20

Tier 1 risk-based capital ratio 12.75 11.98 13.15 14.34 12.34 21.88 13.89 32.10 19.87 12.20

Total risk-based capital ratio 14.21 14.20 14.48 15.44 13.83 22.73 14.70 33.02 21.00 13.67

Net loans and leases to deposits 71.54 127.74 50.27 78.65 86.27 78.84 85.75 33.83 64.97 63.04

Net loans to total assets 54.62 74.87 35.92 65.27 67.08 62.52 72.11 27.09 54.61 50.03

Domestic deposits to total assets 68.29 57.73 46.52 82.99 76.75 79.28 84.08 80.08 84.05 73.46

Structural Changes

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

Institutions absorbed by mergers 304 0 1 47 219 12 2 1 15 7

Failed institutions 8 0 0 0 7 0 0 0 1 0

PRIOR FULL YEARS

(The way it was...)

Number of institutions 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

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

Total assets (in billions) 2014 $15,553.8 $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

 2010 13,318.9 705.4 3,038.1 199.8 4,094.5 789.0 114.3 42.9 132.3 4,202.6

Return on assets (%) 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

 2010 0.65 1.82 0.72 0.98 0.20 0.68 1.28 1.48 0.70 0.80

Net charge-offs to loans & leases (%) 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

 2010 2.55 10.83 2.29 0.59 1.90 1.14 2.37 0.64 0.56 1.87

Noncurrent assets plus 

OREO to assets (%) 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

 2010 3.11 1.90 2.38 1.62 3.71 2.88 1.22 0.81 1.67 3.49

Equity capital ratio (%) 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

 2010 11.15 14.96 8.93 10.86 11.40 10.05 11.00 16.31 11.01 12.04

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

FDIC QUARTERLY 9

TABLE IV-A. Full Year 2015, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FULL YEAR

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 6,182 1,688 3,792 595 107 762 762 1,337 1,543 1,307 471

Commercial banks 5,338 1,483 3,279 485 91 394 689 1,117 1,482 1,226 430

Savings institutions 844 205 513 110 16 368 73 220 61 81 41

Total assets (in billions) $15,967.8 $99.2 $1,199.9 $1,682.5 $12,986.3 $3,074.1 $3,372.6 $3,503.7 $3,444.0 $943.2 $1,630.3

Commercial banks 14,893.4 87.6 1,014.8 1,391.0 12,400.1 2,655.0 3,293.4 3,392.0 3,389.1 831.9 1,332.0

Savings institutions 1,074.4 11.6 185.1 291.5 586.2 419.2 79.2 111.7 54.9 111.2 298.3

Total deposits (in billions) 12,190.0 83.4 997.5 1,331.0 9,778.1 2,305.4 2,635.1 2,559.7 2,609.1 779.0 1,301.6

Commercial banks 11,349.5 74.3 851.0 1,111.3 9,312.8 1,994.0 2,571.8 2,479.4 2,565.1 687.8 1,051.4

Savings institutions 840.5 9.1 146.5 219.7 465.3 311.4 63.3 80.3 44.1 91.2 250.2

Bank net income (in millions) 163,507 827 12,424 17,701 132,555 25,908 33,881 34,184 39,614 9,974 19,946

Commercial banks 151,964 745 10,510 15,274 125,435 23,584 33,490 32,724 39,212 8,684 14,269

Savings institutions 11,543 82 1,914 2,427 7,120 2,324 392 1,461 401 1,290 5,676

Performance Ratios (%)

Yield on earning assets 3.40 4.07 4.13 4.00 3.25 3.41 3.57 2.65 3.61 3.94 3.98

Cost of funding earning assets 0.33 0.44 0.46 0.40 0.31 0.42 0.28 0.26 0.35 0.31 0.42

Net interest margin 3.07 3.64 3.67 3.60 2.94 2.99 3.29 2.40 3.26 3.63 3.56

Noninterest income to assets 1.62 1.14 1.19 1.21 1.71 1.44 1.53 1.87 1.46 1.38 2.04

Noninterest expense to assets 2.66 3.44 3.18 2.87 2.58 2.61 2.71 2.60 2.48 3.10 2.93

Loan and lease loss provision to assets 0.24 0.11 0.11 0.19 0.26 0.28 0.28 0.10 0.24 0.20 0.39

Net operating income to assets 1.03 0.82 1.04 1.09 1.02 0.86 1.00 0.95 1.14 1.09 1.30

Pretax return on assets 1.49 0.96 1.33 1.50 1.51 1.21 1.49 1.33 1.68 1.42 2.05

Return on assets 1.04 0.84 1.07 1.11 1.03 0.87 1.03 0.96 1.16 1.10 1.31

Return on equity 9.30 6.73 9.45 9.36 9.30 7.37 8.32 9.47 11.30 9.91 10.60

Net charge-offs to loans and leases 0.44 0.19 0.15 0.20 0.51 0.48 0.50 0.27 0.52 0.23 0.52

Loan and lease loss provision to 

net charge-offs 99.55 102.52 107.08 133.06 97.07 110.24 96.45 76.19 88.21 134.48 122.42

Efficiency ratio 59.92 76.27 68.92 62.63 58.57 62.72 60.15 64.37 55.36 65.35 53.09

% of unprofitable institutions 4.72 9.54 3.22 1.01 2.80 6.56 8.53 5.09 2.53 3.29 5.73

% of institutions with earnings gains 63.26 55.92 64.74 74.96 61.68 61.02 63.91 64.70 64.42 59.37 68.79

Condition Ratios (%)

Earning assets to total assets 89.97 91.75 92.75 92.17 89.41 89.67 89.09 89.10 89.79 91.91 93.45

Loss allowance to:

Loans and leases 1.34 1.46 1.34 1.20 1.36 1.26 1.37 1.36 1.42 1.27 1.28

Noncurrent loans and leases 85.98 109.58 121.79 114.07 80.14 101.31 78.20 80.29 69.47 100.11 168.44

Noncurrent assets plus

other real estate owned to assets 0.96 1.25 1.11 0.93 0.95 0.75 1.15 0.94 1.18 1.03 0.53

Equity capital ratio 11.24 12.56 11.25 11.70 11.17 11.78 12.22 10.50 10.22 11.06 12.03

Core capital (leverage) ratio 9.59 12.30 10.92 10.48 9.33 9.77 9.61 9.19 9.02 9.96 11.10

Common equity tier 1 capital ratio 12.66 19.81 15.38 13.51 12.27 12.63 12.38 12.72 11.85 13.12 14.75

Tier 1 risk-based capital ratio 12.75 19.86 15.44 13.56 12.37 12.81 12.48 12.76 11.85 13.24 14.92

Total risk-based capital ratio 14.21 20.94 16.55 14.58 13.91 14.32 13.99 13.86 13.78 14.38 16.03

Net loans and leases to deposits 71.54 68.65 78.78 86.33 68.82 71.67 74.39 67.28 69.05 76.64 75.88

Net loans to total assets 54.62 57.73 65.49 68.29 51.81 53.75 58.13 49.15 52.31 63.30 60.58

Domestic deposits to total assets 68.29 84.08 83.13 78.84 65.44 66.69 75.45 63.80 58.29 82.46 79.11

Structural Changes

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

Institutions absorbed by mergers 304 101 171 26 6 39 32 62 57 74 40

Failed institutions 8 5 2 1 0 1 3 2 0 1 1

PRIOR FULL YEARS

(The way it was...)

Number of institutions 2014 6,509 1,871 3,957 574 107 807 812 1,406 1,599 1,372 513

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

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

Total assets (in billions) 2014 $15,553.8 $109.7 $1,232.1 $1,576.4 $12,635.5 $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 11,592.6 2,896.1 3,056.1 3,298.1 3,068.7 870.4 1,261.0

 2010 13,318.9 148.6 1,291.7 1,429.6 10,449.0 2,694.8 2,929.7 2,950.1 1,686.6 789.0 2,268.8

Return on assets (%) 2014 1.01 0.79 1.00 1.09 1.00 0.83 1.00 0.88 1.07 1.14 1.49

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

 2010 0.65 0.27 0.26 0.18 0.76 0.76 0.34 0.60 0.84 0.68 0.81

Net charge-offs to loans & leases (%) 2014 0.49 0.23 0.23 0.27 0.56 0.55 0.54 0.36 0.60 0.23 0.47

 2012 1.10 0.43 0.64 0.73 1.22 1.24 1.19 0.85 1.37 0.56 0.84

 2010 2.55 0.80 1.12 1.80 2.93 3.57 2.43 2.03 2.88 1.27 2.29

Noncurrent assets plus 

OREO to assets (%) 2014 1.20 1.45 1.38 1.41 1.15 0.89 1.55 1.11 1.46 1.18 0.65

 2012 2.20 2.10 2.37 2.46 2.15 1.46 3.23 2.00 2.45 2.05 1.38

 2010 3.11 2.39 3.44 3.57 3.01 2.14 3.93 2.98 4.24 3.17 2.51

Equity capital ratio (%) 2014 11.15 12.28 11.20 11.90 11.04 11.81 12.45 9.80 10.20 11.06 12.47

 2012 11.17 12.00 10.90 11.77 11.11 12.18 12.03 9.10 10.86 10.70 13.24

 2010 11.15 11.70 10.15 11.18 11.26 12.58 11.59 8.71 11.33 10.54 12.11

* See Table V-A (page 11) for explanations.
2 0 1 6  •Volume 1 0  • Number 2

10 FDIC QUARTERLY

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

Asset Concentration Groups*

March 31, 2016 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.76 0.15 1.03 0.77 0.52 0.80 0.53 1.26 1.15 1.12

Construction and development 0.37 0.00 0.59 0.61 0.36 0.78 0.38 1.11 0.87 0.26

Nonfarm nonresidential 0.27 0.00 0.31 0.51 0.27 0.36 0.92 0.85 0.86 0.18

Multifamily residential real estate 0.13 0.00 0.07 0.30 0.15 0.18 3.34 0.34 0.27 0.08

Home equity loans 0.61 0.00 1.01 0.38 0.45 0.63 0.35 0.46 0.59 0.69

Other 1-4 family residential 1.30 0.16 1.47 1.13 0.97 0.89 0.51 1.74 1.45 1.81

Commercial and industrial loans 0.27 0.84 0.26 0.99 0.29 0.33 0.11 1.10 0.91 0.17

Loans to individuals 1.16 1.17 1.18 1.28 0.98 0.75 0.71 1.71 2.23 1.35

Credit card loans 1.09 1.17 1.09 0.75 1.06 1.27 0.63 2.31 1.57 0.99

Other loans to individuals 1.22 1.17 1.32 1.32 0.97 0.71 0.73 1.65 2.24 1.56

All other loans and leases (including farm) 0.25 0.22 0.24 1.24 0.24 0.16 0.09 0.69 0.59 0.17

Total loans and leases 0.66 1.14 0.70 0.92 0.48 0.76 0.61 1.25 1.18 0.78

Percent of Loans Noncurrent**

All real estate loans 2.32 0.51 3.41 0.95 1.37 2.82 3.31 1.63 1.48 3.91

Construction and development 1.00 0.00 0.57 0.98 1.03 0.96 7.55 2.47 1.69 0.88

Nonfarm nonresidential 0.86 0.00 0.69 1.06 0.82 1.39 7.96 1.84 1.66 0.87

Multifamily residential real estate 0.26 0.00 0.16 0.59 0.27 0.44 1.27 2.14 1.00 0.21

Home equity loans 2.66 0.00 4.46 0.58 1.37 2.10 2.51 0.63 0.59 3.77

Other 1-4 family residential 3.89 0.56 4.83 1.00 2.44 3.17 3.02 1.43 1.51 5.83

Commercial and industrial loans 1.24 0.65 1.35 1.28 1.28 0.83 0.21 1.10 1.40 1.16

Loans to individuals 0.82 1.21 0.98 0.59 0.67 0.34 0.53 0.69 1.06 0.56

Credit card loans 1.15 1.23 1.09 0.29 1.07 0.91 1.22 1.10 0.60 1.01

Other loans to individuals 0.50 0.61 0.80 0.61 0.62 0.31 0.35 0.65 1.07 0.29

All other loans and leases (including farm) 0.25 0.08 0.25 0.68 0.29 0.12 2.79 0.31 0.63 0.15

Total loans and leases 1.58 1.16 1.80 0.91 1.21 2.56 1.20 1.39 1.38 2.08

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.07 -0.10 0.10 0.03 0.04 0.04 0.16 0.01 0.09 0.11

Construction and development -0.05 0.00 0.40 -0.07 -0.08 -0.30 0.03 -0.22 0.00 -0.03

Nonfarm nonresidential 0.00 0.00 -0.01 0.04 0.01 0.01 0.03 -0.02 0.09 -0.06

Multifamily residential real estate -0.01 0.00 -0.02 0.06 -0.01 0.05 0.00 -0.01 -0.05 -0.01

Home equity loans 0.33 0.00 0.40 0.01 0.22 0.07 0.53 0.11 0.06 0.46

Other 1-4 family residential 0.09 -0.11 0.07 0.08 0.08 0.06 0.08 0.08 0.12 0.11

Commercial and industrial loans 0.39 2.01 0.41 0.17 0.34 0.07 -0.01 -0.01 0.05 0.40

Loans to individuals 1.94 3.18 2.43 0.38 0.97 0.60 0.94 0.42 0.54 1.56

Credit card loans 3.12 3.25 3.26 1.53 3.27 3.35 2.49 1.10 1.17 2.76

Other loans to individuals 0.77 1.59 1.05 0.29 0.64 0.40 0.51 0.33 0.53 0.85

All other loans and leases (including farm) 0.11 0.23 0.11 0.17 0.16 0.10 0.02 0.26 0.52 0.07

Total loans and leases 0.46 3.07 0.57 0.10 0.20 0.06 0.68 0.07 0.15 0.42

Loans Outstanding (in billions)

All real estate loans $4,419.2 $0.2 $539.1 $111.5 $2,366.3 $225.8 $28.0 $12.0 $47.5 $1,088.9

Construction and development 284.2 0.0 10.3 6.4 212.5 5.3 0.3 0.9 2.9 45.6

Nonfarm nonresidential 1,251.6 0.0 42.7 30.5 901.7 18.7 1.9 4.1 11.5 240.4

Multifamily residential real estate 352.1 0.0 64.5 3.6 230.2 7.8 0.2 0.4 1.4 44.0

Home equity loans 457.5 0.0 66.4 2.4 214.7 11.3 5.4 0.4 1.8 155.1

Other 1-4 family residential 1,918.5 0.2 305.5 27.6 768.1 181.9 20.0 5.6 26.1 583.4

Commercial and industrial loans 1,913.3 35.4 308.5 21.7 949.2 7.4 7.2 2.0 5.3 576.4

Loans to individuals 1,474.3 373.5 245.8 6.3 317.8 6.9 94.4 1.8 5.1 422.7

Credit card loans 723.7 356.5 151.9 0.4 39.0 0.4 19.8 0.2 0.1 155.3

Other loans to individuals 750.6 17.0 93.9 5.9 278.8 6.5 74.6 1.6 5.0 267.4

All other loans and leases (including farm) 1,134.4 0.3 337.5 43.7 305.3 12.8 6.4 1.0 4.1 423.3

Total loans and leases (plus unearned income) 8,941.3 409.5 1,430.9 183.3 3,938.6 252.9 136.0 16.9 62.1 2,511.3

Memo: Other Real Estate Owned (in millions)

All other real estate owned 14,049.3 0.2 807.6 387.9 9,070.5 932.6 82.4 131.4 398.2 2,238.4

Construction and development 4,321.7 0.0 2.3 142.2 3,473.0 118.1 7.4 59.8 142.4 376.4

Nonfarm nonresidential 3,426.6 0.0 56.9 122.6 2,637.7 52.0 17.3 40.1 119.0 381.0

Multifamily residential real estate 232.9 0.0 1.0 17.4 193.4 3.6 0.3 2.7 6.2 8.3

1-4 family residential 4,383.1 0.2 363.3 79.6 2,461.1 224.5 51.5 25.0 121.6 1,056.2

Farmland 214.4 0.0 0.0 25.8 163.8 1.7 0.0 3.6 9.0 10.5

GNMA properties 1,443.5 0.0 359.0 0.2 141.6 532.6 5.9 0.2 0.0 404.0

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

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

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

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

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

exceed 25 percent of total assets.

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

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

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

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

concentrations.

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

concentrations.

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

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

March 31, 2016 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.76 1.22 0.68 0.41 0.87 0.54 0.90 0.79 1.05 0.76 0.33

Construction and development 0.37 0.73 0.58 0.38 0.29 0.41 0.32 0.32 0.33 0.54 0.21

Nonfarm nonresidential 0.27 0.88 0.46 0.24 0.22 0.34 0.23 0.33 0.22 0.34 0.17

Multifamily residential real estate 0.13 0.76 0.32 0.14 0.10 0.13 0.15 0.12 0.08 0.24 0.10

Home equity loans 0.61 0.59 0.44 0.38 0.66 0.42 0.74 0.70 0.69 0.40 0.30

Other 1-4 family residential 1.30 1.68 1.00 0.69 1.46 0.90 1.55 1.23 1.74 1.51 0.55

Commercial and industrial loans 0.27 1.18 0.70 0.40 0.23 0.21 0.18 0.35 0.23 0.54 0.32

Loans to individuals 1.16 1.66 1.46 1.12 1.15 0.97 1.53 0.97 1.16 0.92 1.02

Credit card loans 1.09 3.82 1.67 1.46 1.08 0.90 1.20 0.89 1.14 0.63 1.38

Other loans to individuals 1.22 1.62 1.45 1.00 1.22 1.09 1.88 1.00 1.20 1.06 0.71

All other loans and leases (including farm) 0.25 1.04 0.92 0.42 0.21 0.10 0.20 0.43 0.22 0.39 0.23

Total loans and leases 0.66 1.22 0.73 0.46 0.68 0.51 0.76 0.66 0.75 0.70 0.47

Percent of Loans Noncurrent** 

All real estate loans 2.32 1.39 1.12 1.06 2.96 1.67 2.88 2.64 3.38 1.44 0.72

Construction and development 1.00 1.42 1.61 1.11 0.72 1.19 1.65 0.76 0.61 0.78 0.80

Nonfarm nonresidential 0.86 1.65 1.08 0.81 0.79 1.08 0.81 0.95 0.79 0.79 0.59

Multifamily residential real estate 0.26 0.50 0.67 0.28 0.19 0.23 0.20 0.29 0.33 0.55 0.17

Home equity loans 2.66 0.56 0.65 0.80 3.04 2.56 3.16 2.61 3.00 1.49 0.73

Other 1-4 family residential 3.89 1.48 1.21 1.62 4.78 2.53 4.63 4.16 5.68 2.72 0.93

Commercial and industrial loans 1.24 1.90 1.27 1.32 1.22 0.96 1.12 1.13 1.41 1.90 1.35

Loans to individuals 0.82 0.79 0.80 0.63 0.83 0.89 0.86 0.70 0.81 0.76 0.78

Credit card loans 1.15 1.75 1.45 1.39 1.14 1.02 1.20 0.99 1.14 1.22 1.37

Other loans to individuals 0.50 0.78 0.76 0.39 0.49 0.68 0.51 0.60 0.41 0.54 0.25

All other loans and leases (including farm) 0.25 0.79 0.61 1.04 0.19 0.43 0.13 0.26 0.22 0.36 0.33

Total loans and leases 1.58 1.33 1.09 1.07 1.72 1.27 1.75 1.71 2.01 1.39 0.84

Percent of Loans Charged-Off (net, YTD) 

All real estate loans 0.07 0.04 0.04 0.03 0.09 0.07 0.12 0.07 0.08 0.02 -0.01

Construction and development -0.05 -0.23 -0.04 -0.03 -0.07 0.03 0.02 -0.12 -0.03 -0.05 -0.30

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

Multifamily residential real estate -0.01 0.07 0.03 0.00 -0.02 -0.01 -0.02 -0.01 -0.01 0.00 0.00

Home equity loans 0.33 0.00 0.04 0.11 0.37 0.26 0.45 0.29 0.40 0.19 0.03

Other 1-4 family residential 0.09 0.10 0.06 0.06 0.10 0.10 0.14 0.07 0.09 0.03 0.02

Commercial and industrial loans 0.39 0.25 0.21 0.34 0.41 0.29 0.35 0.32 0.49 0.68 0.42

Loans to individuals 1.94 0.66 0.69 1.49 2.00 2.07 2.09 1.15 2.39 1.38 1.83

Credit card loans 3.12 10.73 4.54 3.72 3.10 2.79 3.30 2.91 3.35 2.40 3.31

Other loans to individuals 0.77 0.50 0.44 0.76 0.78 0.82 0.78 0.55 1.18 0.88 0.48

All other loans and leases (including farm) 0.11 0.10 0.17 0.18 0.10 0.10 0.06 0.09 0.14 0.24 0.17

Total loans and leases 0.46 0.11 0.09 0.19 0.55 0.48 0.54 0.26 0.55 0.30 0.52

Loans Outstanding (in billions) 

All real estate loans $4,419.2 $39.0 $601.8 $859.8 $2,918.5 $903.6 $905.2 $900.9 $848.0 $384.7 $476.9

Construction and development 284.2 2.3 54.3 78.9 148.8 51.4 57.8 46.0 43.9 56.4 28.7

Nonfarm nonresidential 1,251.6 10.0 229.4 347.5 664.8 286.3 261.9 192.2 179.4 154.5 177.4

Multifamily residential real estate 352.1 1.1 31.6 84.8 234.6 128.7 43.7 91.2 28.6 15.5 44.4

Home equity loans 457.5 1.0 25.6 49.6 381.3 87.6 119.8 113.9 88.1 19.5 28.6

Other 1-4 family residential 1,918.5 17.7 214.9 278.2 1,407.7 345.3 408.6 435.7 418.8 123.3 186.9

Commercial and industrial loans 1,913.3 6.8 98.8 189.5 1,618.3 293.1 476.3 402.6 396.4 125.3 219.6

Loans to individuals 1,474.3 3.6 31.9 80.2 1,358.5 310.1 370.5 214.9 294.2 59.4 225.1

Credit card loans 723.7 0.1 1.9 19.8 701.9 193.9 188.8 54.1 162.5 19.0 105.4

Other loans to individuals 750.6 3.6 30.0 60.4 656.6 116.2 181.7 160.8 131.8 40.5 119.7

All other loans and leases (including farm) 1,134.4 7.8 49.2 60.3 1,017.1 177.5 248.6 261.2 319.3 45.7 82.1

Total loans and leases (plus unearned income) 8,941.3 57.2 781.8 1,189.8 6,912.5 1,684.4 2,000.6 1,779.6 1,858.0 615.1 1,003.6

Memo: Other Real Estate Owned (in millions) 

All other real estate owned 14,049.3 430.0 4,293.9 3,121.0 6,204.3 2,137.9 3,704.5 2,854.7 2,469.1 1,965.0 918.1

Construction and development 4,321.7 151.0 1,988.5 1,275.6 906.6 385.0 1,243.3 630.9 862.1 869.2 331.3

Nonfarm nonresidential 3,426.6 132.5 1,327.9 963.4 1,002.7 560.4 716.0 726.9 541.3 615.0 266.9

Multifamily residential real estate 232.9 19.9 99.7 67.5 45.7 72.1 34.8 37.4 37.4 31.2 20.1

1-4 family residential 4,383.1 118.9 788.7 726.1 2,749.4 1,055.6 1,093.8 985.7 594.6 380.2 273.3

Farmland 214.4 7.5 88.3 68.8 49.9 20.0 39.7 65.3 19.5 58.3 11.6

GNMA properties 1,443.5 0.2 0.9 19.6 1,423.0 44.8 577.0 408.5 387.2 11.2 14.9

* Regions:

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

U.S. Virgin Islands

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
2 0 1 6  •Volume 1 0  • Number 2

12 FDIC QUARTERLY

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

1st 

Quarter 

2016

4th 

Quarter 

2015

3rd

Quarter 

2015

2nd 

Quarter 

2015

1st 

Quarter 

2015

% Change 

15Q1-

16Q1

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

Greater 

Than 

$10 Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,426 1,414 1,418 1,431 1,434 -0.6 64 841 418 103

Total assets of institutions reporting derivatives $14,765,546 $14,422,560 $14,231,256 $14,198,373 $14,162,861 4.3 $4,796 $350,617 $1,301,596 $13,108,537

Total deposits of institutions reporting derivatives 11,188,407 10,938,377 10,735,417 10,706,603 10,666,242 4.9 4,000 290,303 1,039,498 9,854,607

Total derivatives 195,508,395 182,006,727 195,421,111 201,692,063 206,694,352 -5.4 320 22,400 117,159 195,368,516

Derivative Contracts by Underlying Risk Exposure 

Interest rate 147,218,152 138,401,684 148,698,245 154,434,103 158,514,087 -7.1 320 22,383 110,523 147,084,927

Foreign exchange* 37,128,715 33,133,167 34,636,874 34,969,999 35,563,105 4.4 0 0 5,681 37,123,033

Equity 2,533,921 2,377,623 2,495,086 2,363,902 2,359,532 7.4 0 4 330 2,533,587

Commodity & other (excluding credit derivatives) 1,209,774 1,107,759 1,393,229 1,436,333 1,241,078 -2.5 0 8 79 1,209,687

Credit 7,417,833 6,986,493 8,197,677 8,487,726 9,016,551 -17.7 0 4 547 7,417,282

Total 195,508,395 182,006,727 195,421,111 201,692,063 206,694,352 -5.4 320 22,400 117,159 195,368,516

Derivative Contracts by Transaction Type 

Swaps 114,814,442 107,392,487 112,697,602 117,508,997 117,711,339 -2.5 52 7,103 69,490 114,737,797

Futures & forwards 37,150,560 35,684,916 38,988,133 40,359,824 44,545,061 -16.6 113 7,245 22,682 37,120,519

Purchased options 16,857,467 15,479,916 16,827,743 16,260,327 16,451,135 2.5 11 796 5,979 16,850,681

Written options 16,706,949 15,429,380 16,247,252 15,985,025 16,189,901 3.2 145 7,251 18,351 16,681,202

Total 185,529,417 173,986,699 184,760,730 190,114,173 194,897,435 -4.8 320 22,396 116,502 185,390,200

Fair Value of Derivative Contracts 

Interest rate contracts 75,481 67,223 76,692 71,659 68,542 10.1 0 21 -380 75,840

Foreign exchange contracts -11,530 -12,485 -15,284 -19,614 -10,042 N/M 0 0 -27 -11,503

Equity contracts 5,035 5,318 7,880 2,695 335 1,403.0 0 0 0 5,035

Commodity & other (excluding credit derivatives) -4,310 -3,571 -6,952 -3,488 -5,756 N/M 0 0 1 -4,310

Credit derivatives as guarantor 2,901 -2,697 1,890 35,840 54,675 -94.7 0 -1 -2 2,903

Credit derivatives as beneficiary -966 7,076 2,441 -34,672 -53,203 N/M 0 0 -26 -940

Derivative Contracts by Maturity** 

Interest rate contracts < 1 year 65,650,483 55,066,477 60,770,924 63,776,000 72,044,050 -8.9 84 6,989 21,917 65,621,493

 1-5 years 50,714,685 49,406,784 52,458,092 54,771,292 54,914,300 -7.6 23 2,371 27,894 50,684,398

 > 5 years 34,846,026 32,980,646 34,618,605 35,837,393 35,099,036 -0.7 38 4,841 38,257 34,802,889

Foreign exchange and gold contracts < 1 year 26,231,437 24,129,441 25,206,272 25,081,829 25,513,647 2.8 0 0 3,798 26,227,638

 1-5 years 4,081,595 3,986,436 3,672,989 3,859,497 3,917,108 4.2 0 0 244 4,081,351

 > 5 years 1,819,360 1,647,804 1,500,445 1,612,940 1,612,457 12.8 0 0 9 1,819,352

Equity contracts < 1 year 1,841,069 1,734,984 1,604,394 1,567,482 1,595,472 15.4 0 0 29 1,841,040

 1-5 years 674,710 627,574 670,068 579,705 555,013 21.6 0 0 108 674,602

 > 5 years 129,076 130,188 183,539 162,800 169,232 -23.7 0 0 10 129,066

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 2,813,615 2,651,133 2,567,836 2,358,891 2,192,082 28.4 0 6 44 2,813,565

 1-5 years 4,800,922 4,694,153 5,771,045 5,329,031 5,718,321 -16.0 0 5 54 4,800,863

 > 5 years 619,196 405,131 750,909 428,131 598,669 3.4 0 0 108 619,088

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 34.5 30.1 34.3 31.6 39.8 0.1 0.5 1.1 39.2

Total potential future exposure to tier 1 capital (%) 47.5 48.3 50.3 54.8 50.3 0.1 0.3 0.6 54.0

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 82.0 78.4 84.6 86.4 90.0 0.2 0.8 1.7 93.2

Credit losses on derivatives*** 13.3 78.3 71.9 61.4 69.3 -80.8 0.0 0.7 0.2 12.3

HELD FOR TRADING 

Number of institutions reporting derivatives 251 250 247 249 249 0.8 11 93 85 62

Total assets of institutions reporting derivatives 11,719,505 11,460,983 11,384,421 11,367,405 11,440,608 2.4 774 38,927 296,612 11,383,192

Total deposits of institutions reporting derivatives 8,830,787 8,660,644 8,553,870 8,547,594 8,584,534 2.9 645 32,516 234,813 8,562,814

Derivative Contracts by Underlying Risk Exposure 

Interest rate 144,656,610 136,068,193 146,169,740 151,668,106 155,492,761 -7.0 59 1,686 26,506 144,628,358

Foreign exchange 34,029,005 31,665,956 31,764,784 31,318,657 32,197,481 5.7 0 0 4,478 34,024,527

Equity 2,510,439 2,352,971 2,472,541 2,344,517 2,340,858 7.2 0 0 0 2,510,439

Commodity & other 1,208,052 1,105,989 1,390,888 1,433,959 1,234,659 -2.2 0 1 36 1,208,015

Total 182,404,106 171,193,110 181,797,953 186,765,239 191,265,759 -4.6 59 1,687 31,020 182,371,339

Trading Revenues: Cash & Derivative Instruments 

Interest rate 3,072 155 2,581 3,404 957 221.0 0 0 19 3,054

Foreign exchange 1,407 3,401 1,931 854 4,702 -70.1 0 0 8 1,399

Equity 670 741 50 584 791 -15.3 0 0 -1 671

Commodity & other (including credit derivatives) 604 -25 758 660 1,211 -50.1 0 1 2 602

Total trading revenues 5,753 4,271 5,319 5,502 7,662 -24.9 0 1 27 5,725

Share of Revenue 

Trading revenues to gross revenues (%) 4.7 3.5 4.4 4.5 6.4 0.0 0.2 0.9 4.9

Trading revenues to net operating revenues (%) 23.2 15.7 19.9 19.0 29.4 0.0 1.0 4.7 23.7

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 1,300 1,299 1,305 1,311 1,308 -0.6 53 764 384 99

Total assets of institutions reporting derivatives 14,522,929 14,205,123 13,960,567 13,896,049 13,845,427 4.9 4,021 320,918 1,212,042 12,985,948

Total deposits of institutions reporting derivatives 10,993,692 10,764,769 10,518,599 10,465,122 10,412,082 5.6 3,355 265,262 967,451 9,757,624

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,561,543 2,333,490 2,528,505 2,765,996 3,021,326 -15.2 260 20,697 84,016 2,456,569

Foreign exchange 538,565 433,677 409,385 561,179 585,259 -8.0 0 0 1,093 537,472

Equity 23,483 24,652 22,545 19,385 18,674 25.8 0 4 330 23,149

Commodity & other 1,722 1,770 2,342 2,374 6,418 -73.2 0 7 43 1,672

Total notional amount 3,125,312 2,793,589 2,962,777 3,348,934 3,631,677 -13.9 260 20,709 85,482 3,018,861

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

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

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

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

more in total assets.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 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 

2016

4th 

Quarter

2015

3rd 

Quarter

2015

2nd 

Quarter

2015

1st 

Quarter

2015

% Change 

15Q1-

16Q1

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

Than $10 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 74 73 72 71 71 4.2 0 19 17 38

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $704,676 $715,914 $734,519 $749,911 $818,351 -13.9 $0 $2,009 $13,738 $688,929

Home equity loans 29 30 31 33 35 -17.1 0 0 0 29

Credit card receivables 13,400 13,502 14,187 17,766 17,817 -24.8 0 0 0 13,400

Auto loans 5,604 6,095 6,221 5,660 3,740 49.8 0 0 2,379 3,225

Other consumer loans 5,093 5,286 4,754 6,430 5,966 -14.6 0 1 0 5,092

Commercial and industrial loans 204 15 14 14 13 1,469.2 0 7 0 197

All other loans, leases, and other assets 74,712 79,844 86,277 89,384 94,400 -20.9 0 95 8,430 66,188

Total securitized and sold 803,719 820,686 846,005 869,198 940,322 -14.5 0 2,113 24,547 777,059

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 2,617 2,840 2,933 3,101 3,117 -16.0 0 4 0 2,613

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

Credit card receivables 1,152 1,108 1,187 1,470 1,531 -24.8 0 0 0 1,152

Auto loans 0 0 0 0 0 0.0 0 0 0 0

Other consumer loans 86 89 89 187 211 -59.2 0 0 0 86

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

All other loans, leases, and other assets 902 990 1,319 1,084 1,405 -35.8 0 0 0 902

Total credit exposure 4,757 5,026 5,528 5,842 6,264 -24.1 0 4 0 4,753

Total unused liquidity commitments provided to institution’s own securitizations 73 36 37 38 0 0.0 0 0 0 73

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

1-4 family residential loans 3.1 3.9 3.8 3.4 3.1 0.0 1.2 1.6 3.1

Home equity loans 6.2 5.4 5.9 5.3 5.2 0.0 0.0 0.0 6.2

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

Auto loans 1.2 1.5 1.1 0.9 1.0 0.0 0.0 1.4 1.0

Other consumer loans 3.8 3.9 4.3 4.1 4.6 0.0 0.0 0.0 3.8

Commercial and industrial loans 0.0 0.0 0.0 1.2 0.0 0.0 0.0 0.0 0.0

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

Total loans, leases, and other assets 2.8 3.5 3.3 3.0 2.8 0.0 1.1 1.0 2.9

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

1-4 family residential loans 1.6 2.1 2.1 2.1 2.1 0.0 1.3 0.5 1.7

Home equity loans 47.3 47.8 47.4 46.5 44.7 0.0 0.0 0.0 47.3

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

Auto loans 0.3 0.2 0.2 0.1 0.1 0.0 0.0 0.4 0.2

Other consumer loans 3.9 3.9 4.4 4.4 5.1 0.0 0.0 0.0 3.9

Commercial and industrial loans 0.1 1.0 1.2 1.8 1.9 0.0 2.4 0.0 0.0

All other loans, leases, and other assets 1.4 1.2 1.3 1.4 1.4 0.0 10.5 0.5 1.5

Total loans, leases, and other assets 1.6 1.9 2.0 2.0 2.0 0.0 1.7 0.5 1.6

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 1.0 5.2 3.2 1.8 0.7 0.0 0.0 0.0 1.0

Credit card receivables 3.0 1.8 1.4 0.8 0.4 0.0 0.0 0.0 3.0

Auto loans 0.3 0.4 0.2 0.2 0.1 0.0 0.0 0.3 0.2

Other consumer loans 0.2 0.8 0.6 0.3 0.2 0.0 0.0 0.0 0.2

Commercial and industrial loans 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 0.1 0.6 0.5 0.3 0.1 0.0 0.0 0.0 0.1

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

Credit card receivables 12,811 15,059 13,248 10,380 9,983 28.3 0 0 0 12,811

Commercial and industrial loans 268 0 0 0 0 0.0 0 0 0 268

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

Credit card receivables 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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 1,089 1,087 1,099 1,106 1,097 -0.7 119 731 187 52

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 36,776 38,515 39,013 38,992 38,856 -5.4 1,031 15,216 8,865 11,664

Home equity, credit card receivables, auto, and other consumer loans 684 712 714 742 694 -1.4 0 3 54 627

Commercial and industrial loans 267 215 217 80 83 221.7 2 12 96 156

All other loans, leases, and other assets 79,293 73,499 72,201 74,990 71,382 11.1 35 128 1,207 77,923

Total sold and not securitized 117,020 112,941 112,145 114,804 111,015 5.4 1,068 15,359 10,223 90,370

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 9,475 9,950 10,495 10,436 10,061 -5.8 63 2,558 2,946 3,908

Home equity, credit card receivables, auto, and other consumer loans 161 163 134 136 137 17.5 0 3 30 128

Commercial and industrial loans 177 151 154 16 19 831.6 2 12 6 156

All other loans, leases, and other assets 21,711 20,138 19,655 19,652 18,624 16.6 35 12 90 21,575

Total credit exposure 31,524 30,402 30,438 30,240 28,841 9.3 100 2,585 3,072 25,767

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 110 111 110 110 117 -6.0 9 57 25 19

Total credit exposure 41,078 41,500 42,211 44,649 44,981 -8.7 8 157 334 40,579

Total unused liquidity commitments 1,387 834 884 2,005 887 56.4 0 10 1 1,377

Other

Assets serviced for others* 0 0 0 0 0 0.0 0 0 0 0

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 18,378 13,980 12,020 12,284 11,736 56.6 4 1 0 18,373

Unused liquidity commitments to conduits sponsored by institutions 

 and others 26,866 29,257 27,631 27,902 28,878 -7.0 0 0 6 26,860

Net servicing income (for the quarter) 864 3,328 1,040 4,546 1,600 -46.0 7 215 54 588

Net securitization income (for the quarter) 203 250 348 325 298 -31.9 0 5 6 192

Total credit exposure to Tier 1 capital (%)** 5.1 5.2 5.3 5.5 5.5 0.9 2.2 2.0 5.9

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

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

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

COMMUNITY BANK PERFORMANCE

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

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

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

designated during the previous quarter.

Net Income Improves More Than 7 Percent From First Quarter 2015

Revenue Increase Led by $1.3 Billion Growth in Net Interest Income

Percent of Unprofitable Community Banks Declines to the Lowest Level Since 1998

Net Interest Margin of 3.56 Percent Increases From the Year Before

Asset Quality Improves for All Major Loan Categories From the Previous Year, but Declines for Commercial and 

Industrial Loans

Net Income Grows at 

Community Banks but 

Declines at Noncommunity 

Banks

Aggregate net income of 5,664 FDIC-insured community banks totaled $5.2 billion during first 

quarter 2016, up $353.6 million (7.4 percent) from the year-earlier quarter. Improved revenue 

from net interest income and noninterest income was offset in part by higher loan-loss provisions and noninterest expense. Net income at noncommunity banks was down $942.4 million 

(2.7 percent), led by a few large noncommunity banks. Over the past 12 months, almost 

62 percent of community banks improved their net income, while 5.1 percent were unprofitable 

during the quarter. Pretax return on assets was 1.28 percent, up 3 basis points from the same 

2015 quarter, but 14 basis points below the rate of noncommunity banks (1.42 percent). There 

were 71 fewer community banks than in fourth quarter 2015, with one bank failure.

Net Interest Margin and Net 

Interest Income Increase 

From the Previous Year

Community banks reported net interest income of $17.5 billion during first quarter 2016, up 

$1.3 billion (8.2 percent) from first quarter 2015. With nearly 78 percent of them increasing 

their net interest income, the annual rate at community banks exceeded that of noncommunity banks (7.2 percent). The yearly increase in net interest income for community banks 

was led by non 1-to-4 family real estate loan income (up $747.6 million, or 10.5 percent).1 Net 

interest margin (NIM) of 3.56 percent for the quarter was up 2 basis points from the year 

earlier, as asset yields increased (up 2 basis points) and funding costs remained unchanged. 

NIM at community banks was 53 basis points above that of noncommunity banks.

Contributors to the Year-Over-Year Change in Income 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income NetInterest

Income

Loan Loss

Provisions NoninterestIncome NoninterestExpense RealizedGains on

Securities

Income

Taxes

Positive Factor Negative Factor

-0.5

0.0

0.5

1.0

1.5

$0.35 $1.33 $0.09 $0.10 $0.82 -$0.05 $0.11

+7% +8% +17% +2% +6% -23% +8%

Chart 1

Source: FDIC.

Net Interest Margin 

Percent

3.0 

3.5 

4.0 

Community Banks

All Insured Institutions 

3.54 3.56

3.02

3.10

2008 2009 2010 2011 2012 2013 2014 2015 2016

Chart 2

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

nonresidential.
2 0 1 6  •Volume 1 0  • Number 2

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Change 1Q 2016 vs. 1Q 2015

Change 1Q 2016 vs. 4Q 2015

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

36.3

15.6

13.3

17.8

4.3

14.5

7.3 8.5

2.9 2.8 2.7

-1.8

3.1

0.7

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

16

C&D Loans

Nonfarm Nonresidential RE

1-to-4 Family RE

C&I Loans 

Home Equity 

Credit Cards

2008 2009 2010 2011 2012 2013 2014 2015 2016

Chart 4

Noninterest Income 

Increases 2.1 Percent From 

the Previous Year

Noninterest income totaled $4.7 billion, up $97.6 million (2.1 percent) from a year earlier. 

While noninterest income improved at community banks, it declined for noncommunity 

banks (down $1.9 billion, or 3.2 percent) due to lower trading revenue (down $1.9 billion, or 

24.9 percent). More than half (55 percent) of community banks increased their noninterest 

income from first quarter 2015. The year-over-year increase was led by net gains on sale of 

other assets (up $47 million, or 82.3 percent) and service charges on deposit accounts (up 

$30.3 million, or 3.3 percent).

Noninterest Expense as 

Percent of Net Operating 

Revenue Declines

Noninterest expense at community banks was $819.9 million (5.8 percent) higher than in 

first quarter 2015. The annual increase was from higher salary and employee benefits (up 

$539.9 million, or 6.8 percent). Almost three out of four community banks (71 percent) 

increased noninterest expense from the year before. Full-time employees at community 

banks totaled 434,761 for the first quarter, up 12,221 (2.9 percent) from the same 2015 

quarter. Noninterest expense represented 67.6 percent of net operating revenue, down from 

68.8 percent in first quarter 2015, the lowest level since third quarter 2007. Average assets per 

employee were $4.9 million, up from $4.7 million in first quarter 2015.

Loan and Lease Balances 

Increase From the Previous 

Quarter and the Year Before

Total assets at community banks were $29.1 billion (1.4 percent) higher than in the previous 

quarter, as loan and lease balances grew $21.3 billion (1.5 percent). All major loan categories 

increased from fourth quarter 2015, led by nonfarm nonresidential loans (up $8.5 billion, or 

2.1 percent), multifamily residential mortgages (up $4.1 billion, or 4.5 percent), commercial 

and industrial loans (up $2.9 billion, or 1.5 percent), and 1-to-4 family residential mortgages 

(up $2.8 billion, or 0.8 percent). Close to 60 percent of community banks posted a quarterover-quarter increase in their loan and lease balance. The 12-month growth rate in loan and 

lease balances was 8.9 percent, exceeding the rate of noncommunity banks (6.6 percent). 

With close to 80 percent of community banks increasing their year-over-year loan and lease 

balances, the annual growth was led by nonfarm nonresidential loans (up $36.3 billion, or 

9.4 percent), 1-to-4 family residential mortgages (up $17.8 billion, or 5 percent), commercial 

and industrial loans (up $15.6 billion, or 8.6 percent), and multifamily residential mortgages 

(up $15.3 billion, or 19.1 percent). Unused loan commitments totaled $278.4 billion in the 

quarter, up $11.3 billion from first quarter 2015, with commercial real estate, including 

construction and development, increasing $14.5 billion (22.7 percent).
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Small Loans to Businesses 

Increase From First Quarter 

2015

Small loans to businesses of $297.7 billion in the first quarter were $725.8 million 

(0.2 percent) higher than fourth quarter 2015. Almost half (47 percent) of community 

banks increased their small loans to businesses during the quarter. While the quarterly 

growth was led by commercial and industrial loans (up $1.3 billion, or 1.4 percent) and 

nonfarm nonresidential loans (up $944.8 million, or 0.7 percent), agricultural production 

loans declined $1.6 billion (5.4 percent). The annual increase in small loans to businesses 

at community banks (up $10.8 billion, or 3.8 percent) surpassed that of noncommunity 

banks (up $7.2 billion, or 1.9 percent). The 12-month growth in small loans to businesses 

at community banks was led by commercial and industrial loans (up $4.3 billion, or 

4.9 percent) and nonfarm nonresidential loans (up $3.3 billion, or 2.3 percent). Meanwhile, 

nonfarm nonresidential loans for noncommunity banks declined (down $6.1 billion, or 

4.1 percent). Community banks continued to hold 44 percent of small loans to businesses.

Community Banks Lower 

Their Noncurrent Loan and 

Lease Balances

Community banks reported noncurrent loan and lease balances of $16 billion for the 

quarter, down $1.7 billion (9.8 percent) from the year before. More than half (55 percent) 

of community banks reduced their noncurrent loan and lease balances from first quarter 

2015. The coverage ratio—reserves for loan losses to noncurrent loans—was 116.19 percent, 

up from 104.71 percent a year earlier. The coverage ratio was above 100 percent for the 

past six consecutive quarters. Reserves for loan losses totaled $18.5 billion at the end of the 

quarter. For the first quarter, loan-loss provisions of $620.5 million were offset in part by 

$349 million in net charge-offs.

Asset Quality for 

Commercial and Industrial 

Loans Declines From the 

Previous Year

The noncurrent rate of 1.1 percent was 22 basis points lower than a year earlier, as all major 

loan categories, except for commercial and industrial loans, had lower noncurrent rates. The 

commercial and industrial noncurrent rate (1.2 percent) increased for a third consecutive 

quarter. The rate was 10 basis points above the previous quarter, and 13 basis points above 

first quarter 2015. The commercial and industrial noncurrent rate for noncommunity banks 

(1.24 percent) was 4 basis points above the rate for community banks. The net charge-off rate 

for community banks was 0.1 percent for the quarter, the lowest rate since first quarter 2006. 

All major loan categories, except for commercial and industrial loans (up 6 basis points), had 

lower net charge-off rates from the year before.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6578
2 0 1 6  •Volume 1 0  • Number 2

18 FDIC QUARTERLY

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

2016* 2015* 2015 2014 2013 2012 2011

Return on assets (%) 0.98 0.96 0.99 0.93 0.90 0.83 0.55

Return on equity (%) 8.75 8.61 8.89 8.46 8.28 7.68 5.19

Core capital (leverage) ratio (%) 10.70 10.65 10.67 10.57 10.43 10.18 9.98

Noncurrent assets plus other real estate owned to assets (%) 1.05 1.29 1.06 1.34 1.73 2.26 2.84

Net charge-offs to loans (%) 0.10 0.10 0.14 0.21 0.32 0.58 0.87

Asset growth rate (%) 2.77 1.83 2.71 2.31 0.33 2.25 1.60

Net interest margin (%) 3.56 3.54 3.57 3.61 3.59 3.67 3.74

Net operating income growth (%) 6.39 10.66 9.98 4.89 14.61 56.25 207.82

Number of institutions reporting 5,664 5,946 5,735 6,037 6,306 6,541 6,798

Percentage of unprofitable institutions (%) 5.12 5.92 4.93 6.44 8.40 11.15 16.34

* 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

2016

4th Quarter

2015

1st Quarter

2015

%Change 

15Q1-16Q1

Number of institutions reporting 5,664 5,735 5,946 -4.7

Total employees (full-time equivalent) 434,761 437,839 439,096 -1.0

CONDITION DATA

Total assets $2,127,886 $2,120,094 $2,070,578 2.8

Loans secured by real estate 1,102,255 1,094,601 1,040,173 6.0

 1-4 Family residential mortgages 376,255 376,499 361,797 4.0

 Nonfarm nonresidential 421,326 418,598 402,170 4.8

 Construction and development 95,163 93,662 85,387 11.4

 Home equity lines 49,937 50,629 49,372 1.1

Commercial & industrial loans 196,778 196,373 190,142 3.5

Loans to individuals 59,524 59,990 58,879 1.1

 Credit cards 2,080 2,173 1,982 5.0

Farm loans 49,454 51,331 45,270 9.2

Other loans & leases 36,930 36,466 33,446 10.4

Less: Unearned income 629 637 553 13.8

Total loans & leases 1,444,312 1,438,123 1,367,358 5.6

Less: Reserve for losses 18,546 18,522 18,929 -2.0

Net loans and leases 1,425,766 1,419,602 1,348,429 5.7

Securities 434,583 438,361 445,436 -2.4

Other real estate owned 6,259 6,579 8,382 -25.3

Goodwill and other intangibles 13,927 13,818 12,817 8.7

All other assets 247,350 241,734 255,514 -3.2

Total liabilities and capital 2,127,886 2,120,094 2,070,578 2.8

Deposits 1,748,379 1,736,384 1,708,821 2.3

 Domestic office deposits 1,747,960 1,735,983 1,708,341 2.3

 Foreign office deposits 420 400 480 -12.6

 Brokered deposits 72,978 71,357 65,670 11.1

Estimated insured deposits 1,319,947 1,313,887 1,313,741 0.5

Other borrowed funds 123,675 131,741 114,621 7.9

Subordinated debt 585 479 458 27.6

All other liabilities 16,295 15,661 15,652 4.1

Total equity capital (includes minority interests) 238,953 235,829 231,025 3.4

 Bank equity capital 238,855 235,720 230,907 3.4

Loans and leases 30-89 days past due 9,059 8,972 9,852 -8.0

Noncurrent loans and leases 15,962 15,781 18,077 -11.7

Restructured loans and leases 8,926 9,420 10,065 -11.3

Mortgage-backed securities 185,170 185,278 190,950 -3.0

Earning assets 1,979,545 1,968,471 1,920,809 3.1

FHLB Advances 95,105 100,881 85,204 11.6

Unused loan commitments 278,354 271,029 259,713 7.2

Trust assets 260,121 292,935 247,297 5.2

Assets securitized and sold 16,363 15,812 14,130 15.8

Notional amount of derivatives 61,850 51,859 57,732 7.1

INCOME DATA

Full Year 

2015

Full Year 

2014 %Change

1st Quarter 

2016

1st Quarter 

2015

%Change 

15Q1-16Q1

Total interest income $76,403 $75,692 0.9 $19,725 $18,998 3.8

Total interest expense 8,652 9,101 -4.9 2,245 2,167 3.6

Net interest income 67,751 66,591 1.7 17,480 16,832 3.9

Provision for loan and lease losses 2,456 2,566 -4.3 620 540 14.9

Total noninterest income 19,522 17,680 10.4 4,694 4,681 0.3

Total noninterest expense 59,320 58,523 1.4 14,982 14,796 1.3

Securities gains (losses) 520 561 -7.2 180 245 -26.6

Applicable income taxes 5,687 5,186 9.7 1,586 1,512 4.9

Extraordinary gains, net 7 2 197.6 1 0 N/M

Total net income (includes minority interests) 20,337 18,559 9.6 5,166 4,911 5.2

 Bank net income 20,310 18,535 9.6 5,162 4,901 5.3

Net charge-offs 1,973 2,757 -28.4 349 349 0.0

Cash dividends 10,102 9,251 9.2 2,536 2,160 17.4

Retained earnings 10,208 9,284 10.0 2,626 2,741 -4.2

Net operating income 19,919 18,111 10.0 5,023 4,721 6.4

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 

2016

4th Quarter 

2015

1st Quarter

2015

%Change 

15Q1-16Q1

Number of institutions reporting 5,664 5,664 5,663 0.0

Total employees (full-time equivalent) 434,761 432,358 422,540 2.9

CONDITION DATA

Total assets $2,127,886 $2,098,745 $2,015,557 5.6

Loans secured by real estate 1,102,255 1,082,734 1,011,278 9.0

 1-4 Family residential mortgages 376,255 373,412 358,448 5.0

 Nonfarm nonresidential 421,326 412,849 385,015 9.4

 Construction and development 95,163 92,417 81,833 16.3

 Home equity lines 49,937 49,819 46,914 6.4

Commercial & industrial loans 196,778 193,862 181,187 8.6

Loans to individuals 59,524 59,618 56,694 5.0

 Credit cards 2,080 2,161 2,125 -2.1

Farm loans 49,454 51,286 45,151 9.5

Other loans & leases 36,930 36,124 32,813 12.5

Less: Unearned income 629 629 534 17.7

Total loans & leases 1,444,312 1,422,995 1,326,588 8.9

Less: Reserve for losses 18,546 18,318 18,359 1.0

Net loans and leases 1,425,766 1,404,677 1,308,230 9.0

Securities 434,583 434,165 437,551 -0.7

Other real estate owned 6,259 6,490 8,055 -22.3

Goodwill and other intangibles 13,927 13,707 12,442 11.9

All other assets 247,350 239,706 249,280 -0.8

Total liabilities and capital 2,127,886 2,098,745 2,015,557 5.6

Deposits 1,748,379 1,718,687 1,659,710 5.3

 Domestic office deposits 1,747,960 1,718,287 1,659,264 5.3

 Foreign office deposits 420 400 446 -5.9

 Brokered deposits 72,978 70,793 63,203 15.5

Estimated insured deposits 1,319,947 1,300,843 1,279,839 3.1

Other borrowed funds 123,675 130,484 114,390 8.1

Subordinated debt 585 479 443 31.9

All other liabilities 16,295 15,514 15,341 6.2

Total equity capital (includes minority interests) 238,953 233,580 225,672 5.9

 Bank equity capital 238,855 233,483 225,562 5.9

Loans and leases 30-89 days past due 9,059 8,905 9,732 -6.9

Noncurrent loans and leases 15,962 15,601 17,695 -9.8

Restructured loans and leases 8,926 9,305 9,770 -8.6

Mortgage-backed securities 185,170 182,914 186,563 -0.7

Earning assets 1,979,545 1,948,505 1,869,979 5.9

FHLB Advances 95,105 100,014 85,370 11.4

Unused loan commitments 278,354 267,580 267,044 4.2

Trust assets 260,121 289,725 245,170 6.1

Assets securitized and sold 16,363 15,812 14,130 15.8

Notional amount of derivatives 61,850 51,600 53,926 14.7

INCOME DATA

Full Year 

2015

Full Year 

2014 %Change

1st Quarter 

2016

1st Quarter 

2015

%Change 

15Q1-16Q1

Total interest income $75,420 $71,583 5.4 $19,725 $18,252 8.1

Total interest expense 8,543 8,585 -0.5 2,245 2,101 6.8

Net interest income 66,877 62,998 6.2 17,480 16,151 8.2

Provision for loan and lease losses 2,433 2,360 3.1 620 530 17.1

Total noninterest income 19,306 17,049 13.2 4,694 4,596 2.1

Total noninterest expense 58,514 55,164 6.1 14,982 14,162 5.8

Securities gains (losses) 516 535 -3.5 180 232 -22.5

Applicable income taxes 5,640 4,657 21.1 1,586 1,471 7.8

Extraordinary gains, net 7 1 402.3 1 0 N/M

Total net income (includes minority interests) 20,119 18,402 9.3 5,166 4,817 7.2

 Bank net income 20,092 18,377 9.3 5,162 4,808 7.4

Net charge-offs 1,947 2,568 -24.2 349 332 5.1

Cash dividends 10,013 8,985 11.4 2,536 2,194 15.6

Retained earnings 10,079 9,392 7.3 2,626 2,613 0.5

Net operating income 19,704 17,978 9.6 5,023 4,637 8.3

N/M - Not Meaningful
2 0 1 6  •Volume 1 0  • Number 2

20 FDIC QUARTERLY

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

First Quarter 2016

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 5,664 659 691 1,249 1,471 1,223 371

Total employees (full-time equivalent) 434,761 86,434 54,169 90,711 71,162 95,272 37,013

CONDITION DATA

Total assets $2,127,886 $560,570 $245,108 $386,196 $332,289 $413,109 $190,614

Loans secured by real estate 1,102,255 334,378 134,140 194,849 151,647 191,371 95,870

 1-4 Family residential mortgages 376,255 127,432 43,724 70,258 48,946 62,553 23,340

 Nonfarm nonresidential 421,326 118,207 57,014 71,015 50,043 77,592 47,455

 Construction and development 95,163 18,862 15,586 12,295 12,472 27,704 8,244

 Home equity lines 49,937 16,956 7,471 11,346 4,695 4,430 5,038

Commercial & industrial loans 196,778 48,837 18,553 36,528 32,497 42,096 18,267

Loans to individuals 59,524 12,671 6,703 11,689 9,779 13,578 5,103

 Credit cards 2,080 453 128 415 484 305 296

Farm loans 49,454 504 1,166 7,780 28,141 9,332 2,531

Other loans & leases 36,930 11,627 2,797 6,291 5,517 7,448 3,249

Less: Unearned income 629 167 131 61 45 123 101

Total loans & leases 1,444,312 407,851 163,228 257,075 227,536 263,701 124,920

Less: Reserve for losses 18,546 4,575 2,131 3,451 3,103 3,498 1,787

Net loans and leases 1,425,766 403,276 161,096 253,624 224,433 260,203 123,133

Securities 434,583 98,414 47,652 83,647 68,841 96,559 39,471

Other real estate owned 6,259 943 1,579 1,254 925 1,193 365

Goodwill and other intangibles 13,927 4,608 1,161 2,210 1,790 2,662 1,496

All other assets 247,350 53,329 33,620 45,461 36,299 52,492 26,149

Total liabilities and capital 2,127,886 560,570 245,108 386,196 332,289 413,109 190,614

Deposits 1,748,379 444,474 203,701 320,072 273,677 347,661 158,794

 Domestic office deposits 1,747,960 444,106 203,696 320,055 273,677 347,661 158,765

 Foreign office deposits 420 368 6 17 0 0 29

 Brokered deposits 72,978 25,559 7,236 12,285 11,135 10,623 6,140

 Estimated insured deposits 1,319,947 325,024 156,112 256,799 216,446 255,390 110,175

Other borrowed funds 123,675 47,252 12,312 19,445 19,591 17,102 7,973

Subordinated debt 585 416 20 75 19 6 50

All other liabilities 16,295 5,529 1,684 2,876 1,958 2,533 1,715

Total equity capital (includes minority interests) 238,953 62,900 27,391 43,728 37,043 45,808 22,082

 Bank equity capital 238,855 62,846 27,380 43,713 37,042 45,792 22,081

Loans and leases 30-89 days past due 9,059 2,230 1,119 1,504 1,591 2,112 502

Noncurrent loans and leases 15,962 5,613 2,049 2,842 1,741 2,810 908

Restructured loans and leases 8,926 2,505 1,303 2,337 1,015 1,063 702

Mortgage-backed securities 185,170 54,903 20,592 32,500 22,524 35,781 18,869

Earning assets 1,979,545 524,303 225,882 358,703 310,322 382,333 178,001

FHLB Advances 95,105 39,328 9,798 13,731 14,299 13,248 4,701

Unused loan commitments 278,354 72,135 29,679 51,091 46,880 50,342 28,227

Trust assets 260,121 57,337 9,663 64,400 77,274 41,583 9,864

Assets securitized and sold 16,363 3,367 517 5,974 784 615 5,106

Notional amount of derivatives 61,850 21,377 7,303 10,962 9,224 7,706 5,278

INCOME DATA

Total interest income $19,725 $4,993 $2,323 $3,490 $3,134 $4,005 $1,781

Total interest expense 2,245 729 263 388 361 373 132

Net interest income 17,480 4,264 2,060 3,102 2,773 3,632 1,649

Provision for loan and lease losses 620 169 58 79 96 178 40

Total noninterest income 4,694 921 560 1,148 690 925 450

Total noninterest expense 14,982 3,516 1,874 2,902 2,257 3,035 1,397

Securities gains (losses) 180 47 21 26 26 35 24

Applicable income taxes 1,586 499 197 296 195 189 209

Extraordinary gains, net 1 2 0 0 -1 -1 0

Total net income (includes minority interests) 5,166 1,051 512 999 939 1,189 476

 Bank net income 5,162 1,049 511 997 939 1,188 476

Net charge-offs 349 95 36 63 49 93 13

Cash dividends 2,536 289 206 696 597 523 224

Retained earnings 2,626 760 305 301 342 665 252

Net operating income 5,023 1,014 496 976 918 1,159 460

* See Table V-A (page 11) for explanations.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. First Quarter 2016, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks First Quarter 2016, Geographic Regions*

 1st Quarter 

2016

4th Quarter 

2015 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.02 4.06 3.85 4.16 3.91 4.06 4.22 4.06

Cost of funding earning assets 0.46 0.46 0.56 0.47 0.43 0.47 0.39 0.30

Net interest margin 3.56 3.60 3.29 3.69 3.48 3.59 3.83 3.75

Noninterest income to assets 0.89 0.96 0.66 0.92 1.19 0.83 0.90 0.96

Noninterest expense to assets 2.84 2.95 2.54 3.09 3.02 2.72 2.96 2.97

Loan and lease loss provision to assets 0.12 0.15 0.12 0.10 0.08 0.12 0.17 0.08

Net operating income to assets 0.95 0.96 0.73 0.82 1.02 1.11 1.13 0.98

Pretax return on assets 1.28 1.21 1.12 1.17 1.35 1.37 1.34 1.46

Return on assets 0.98 0.97 0.76 0.84 1.04 1.13 1.16 1.01

Return on equity 8.75 8.68 6.78 7.56 9.21 10.24 10.52 8.73

Net charge-offs to loans and leases 0.10 0.20 0.09 0.09 0.10 0.09 0.14 0.04

Loan and lease loss provision to net charge-offs 177.76 113.23 177.58 160.85 125.81 197.28 191.54 307.28

Efficiency ratio 67.23 68.05 67.44 71.13 68.01 64.81 66.31 66.25

Net interest income to operating revenue 78.83 77.74 82.23 78.63 72.98 80.09 79.71 78.56

% of unprofitable institutions 5.12 10.01 5.16 8.83 6.16 3.33 3.68 6.47

% of institutions with earnings gains 61.60 56.32 60.24 64.25 58.77 58.74 65.41 67.39

Table V-B. Full Year 2015, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks Full Year 2015, Geographic Regions*

Full Year 

2015

Full Year 

2014 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.03 4.10 3.87 4.14 3.94 4.05 4.22 4.04

Cost of funding earning assets 0.46 0.49 0.56 0.48 0.44 0.46 0.39 0.30

Net interest margin 3.57 3.61 3.31 3.67 3.51 3.59 3.83 3.74

Noninterest income to assets 0.95 0.89 0.70 0.92 1.30 0.91 0.92 1.17

Noninterest expense to assets 2.90 2.93 2.62 3.15 3.08 2.77 3.00 3.02

Loan and lease loss provision to assets 0.12 0.13 0.17 0.09 0.07 0.11 0.15 0.05

Net operating income to assets 0.97 0.91 0.69 0.80 1.11 1.14 1.13 1.11

Pretax return on assets 1.27 1.19 1.04 1.07 1.41 1.38 1.33 1.60

Return on assets 0.99 0.93 0.72 0.82 1.12 1.16 1.15 1.12

Return on equity 8.89 8.46 6.42 7.28 9.99 10.55 10.51 9.50

Net charge-offs to loans and leases 0.14 0.21 0.16 0.17 0.17 0.11 0.17 0.03

Loan and lease loss provision to net charge-offs 124.46 93.08 150.64 83.37 65.36 154.39 145.96 226.33

Efficiency ratio 67.58 69.11 68.62 73.16 67.40 64.94 66.79 64.62

Net interest income to operating revenue 77.63 79.02 81.58 78.54 71.43 78.60 79.31 74.79

% of unprofitable institutions 4.93 6.44 7.19 9.26 5.20 2.49 3.49 6.35

% of institutions with earnings gains 63.03 63.62 61.08 63.11 64.57 64.24 59.42 68.25

* See Table V-A (page 11) for explanations.
2 0 1 6  •Volume 1 0  • Number 2

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

March 31, 2016

Geographic Regions*

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

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.58 0.50 0.68 0.60 0.61 0.70 0.36

Construction and development 0.47 0.32 0.44 0.45 0.62 0.55 0.36

Nonfarm nonresidential 0.37 0.36 0.42 0.41 0.37 0.42 0.23

Multifamily residential real estate 0.17 0.15 0.20 0.29 0.13 0.19 0.13

Home equity loans 0.38 0.43 0.45 0.39 0.27 0.36 0.23

Other 1-4 family residential 0.91 0.78 1.21 0.95 0.76 1.15 0.65

Commercial and industrial loans 0.58 0.46 0.52 0.42 0.67 0.86 0.44

Loans to individuals 1.55 2.46 1.44 0.82 0.97 2.11 0.72

Credit card loans 1.66 2.14 1.02 1.04 2.73 0.95 1.03

Other loans to individuals 1.54 2.47 1.45 0.81 0.87 2.14 0.70

All other loans and leases (including farm) 0.77 0.27 0.52 0.57 1.08 0.73 0.78

Total loans and leases 0.63 0.55 0.69 0.58 0.70 0.80 0.40

Percent of Loans Noncurrent**

All loans secured by real estate 1.12 1.33 1.34 1.21 0.78 1.00 0.68

Construction and development 1.39 1.48 2.51 1.29 1.25 0.94 0.99

Nonfarm nonresidential 1.01 1.18 1.12 1.14 0.87 0.89 0.57

Multifamily residential real estate 0.37 0.23 0.71 0.67 0.54 0.57 0.09

Home equity loans 0.74 0.86 0.67 0.82 0.38 0.71 0.67

Other 1-4 family residential 1.44 1.90 1.37 1.48 0.75 1.24 0.93

Commercial and industrial loans 1.20 1.38 0.96 1.01 0.96 1.52 1.01

Loans to individuals 0.67 0.70 0.87 0.43 0.49 1.02 0.32

Credit card loans 1.02 1.40 0.56 0.98 1.29 0.70 0.62

Other loans to individuals 0.66 0.68 0.88 0.41 0.45 1.02 0.30

All other loans and leases (including farm) 0.98 3.22 0.50 0.47 0.58 0.75 0.88

Total loans and leases 1.11 1.38 1.26 1.11 0.76 1.07 0.73

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.03 0.05 0.02 0.06 0.02 0.03 -0.03

Construction and development -0.04 -0.02 -0.01 0.08 -0.07 -0.08 -0.17

Nonfarm nonresidential 0.03 0.03 0.00 0.02 0.05 0.05 -0.03

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

Home equity loans 0.06 0.09 0.03 0.10 0.01 0.02 -0.01

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

Commercial and industrial loans 0.21 0.16 0.28 0.16 0.13 0.38 0.17

Loans to individuals 0.80 0.96 0.77 0.57 0.89 0.85 0.70

Credit card loans 5.09 4.21 1.05 3.47 12.68 1.36 1.98

Other loans to individuals 0.65 0.83 0.77 0.46 0.27 0.84 0.62

All other loans and leases (including farm) 0.16 0.22 0.23 0.09 0.09 0.29 0.26

Total loans and leases 0.10 0.09 0.09 0.10 0.09 0.14 0.04

Loans Outstanding (in billions)

All loans secured by real estate $1,102.3 $334.4 $134.1 $194.8 $151.6 $191.4 $95.9

Construction and development 95.2 18.9 15.6 12.3 12.5 27.7 8.2

Nonfarm nonresidential 421.3 118.2 57.0 71.0 50.0 77.6 47.5

Multifamily residential real estate 95.4 50.9 6.2 14.7 7.9 7.0 8.7

Home equity loans 49.9 17.0 7.5 11.3 4.7 4.4 5.0

Other 1-4 family residential 376.3 127.4 43.7 70.3 48.9 62.6 23.3

Commercial and industrial loans 196.8 48.8 18.6 36.5 32.5 42.1 18.3

Loans to individuals 59.5 12.7 6.7 11.7 9.8 13.6 5.1

Credit card loans 2.1 0.5 0.1 0.4 0.5 0.3 0.3

Other loans to individuals 57.4 12.2 6.6 11.3 9.3 13.3 4.8

All other loans and leases (including farm) 86.4 12.1 4.0 14.1 33.7 16.8 5.8

Total loans and leases 1,444.9 408.0 163.4 257.1 227.6 263.8 125.0

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 278,354 72,135 29,679 51,091 46,880 50,342 28,227

Construction and development: 1-4 family residential 21,914 4,673 3,902 2,397 2,504 6,084 2,354

Construction and development: CRE and other 55,033 17,225 7,435 7,588 6,341 12,053 4,391

Commercial and industrial 90,409 22,289 8,294 18,834 15,085 16,324 9,582

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

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

FDIC QUARTERLY 23

Insurance Fund Indicators

DIF Reserve Ratio Rises 2 Basis Points to 1.13 Percent

Insured Deposits Increase by 2 Percent

Final Rule Approved in March 2016 to Raise DIF to 1.35 Percent of Insured Deposits

Final Rule Approved in April 2016 Revises Calculation of Insurance Assessments for Small Banks

Total assets of the 6,122 FDIC-insured institutions increased by 2 percent ($325.6 billion) 

during the first quarter of 2016. Total deposits increased by 2 percent ($239.5 billion), 

domestic office deposits increased by 1.8 percent ($201.3 billion), and foreign office 

deposits increased by 3 percent ($38.2 billion). Domestic interest-bearing deposits 

increased by 2.8 percent ($218.4 billion), and noninterest-bearing deposits decreased by 

0.6 percent ($17.1 billion). For the 12 months ending March 31, total domestic deposits 

grew by 5 percent ($528.2 billion), with interest-bearing deposits increasing by 6.3 percent 

($483.4 billion) and noninterest-bearing deposits increasing by 1.5 percent ($44.8 billion).1

Other borrowed money increased by 5.2 percent, securities sold under agreements to repurchase declined by 17.1 percent, and foreign office deposits declined by 4.1 percent over the 

same twelve-month period.2

Total estimated insured deposits increased by 2 percent in the first quarter of 2016.3 For 

institutions existing at the start and the end of the most recent quarter, insured deposits 

increased during the quarter at 3,900 institutions (64 percent), decreased at 2,201 institutions 

(36 percent), and remained unchanged at only 30 institutions. Estimated insured deposits 

increased by 5 percent over the 12 months ending March 31, 2016.

The Deposit Insurance Fund (DIF) increased by $2.5 billion during the first quarter of 

2016 to $75.1 billion (unaudited). Assessment income of $2.3 billion and unrealized gains 

on securities of $412 million drove the fund balance increase. Interest on investments of 

$147 million and a negative provision for insurance losses of $43 million also contributed 

to fund balance growth. First quarter operating expenses reduced the fund balance by 

$415 million. One insured institution, with assets of $67 million, failed during the first 

quarter. The DIF’s reserve ratio was 1.13 percent on March 31, up from 1.11 percent at 

December 31, 2015, and 1.03 percent four quarters ago.

Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets minus average tangible equity.4 Table 1 shows the distribution of the assessment base as of March 31, by institution asset size category.

Achieving the Minimum 

Reserve Ratio and Calculating 

Small Bank Assessments5

 On March 15, 2016, the FDIC Board of Directors (Board) approved a final rule to increase 

the DIF to the statutorily required minimum of 1.35 percent of estimated insured deposits.6

Congress, in the Dodd-Frank Wall Street Reform and Consumer Protection Act (the 

Dodd-Frank Act), increased the minimum DIF reserve ratio, the ratio of the fund balance to 

estimated insured deposits, from 1.15 percent to 1.35 percent and required that the ratio 

reach that level by September 30, 2020. Further, the Dodd-Frank Act required that, in setting 

assessments, the FDIC offset the effect of the increase in the minimum reserve ratio from 

1.15 to 1.35 percent on banks with less than $10 billion in assets.

1 Throughout the insurance fund discussion, FDIC-insured institutions include insured commercial banks and savings 

associations and, except where noted, exclude insured branches of foreign banks. 

2 Other borrowed money includes FHLB advances, term federal funds, mortgage indebtedness, and other borrowings.

3 Figures for estimated insured deposits in this discussion include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

4 There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank.

5 Banks with total assets less than $10 billion.

6 https://www.federalregister.gov/articles/2016/03/25/2016-06770/assessments. 
2 0 1 6  •Volume 1 0  • Number 2

24 FDIC QUARTERLY

To satisfy these requirements, the final rule imposes on large banks a surcharge of 4.5 basis 

points of their assessment base, after making certain adjustments.7,8 Large banks will pay 

quarterly surcharges in addition to their regular risk-based assessments. (Overall regular risk-based assessment rates will decline once the reserve ratio reaches 1.15 percent, as 

approved by the FDIC Board in 2011.9)

The final rule will become effective on July 1 of this year. If the reserve ratio reaches 

1.15 percent before that date, surcharges will begin July 1. If the reserve ratio has not 

reached 1.15 percent by that date, surcharges will begin the first quarter after the reserve 

ratio reaches 1.15 percent. The FDIC expects that surcharges will last eight quarters. In any 

event, surcharges will continue through the quarter in which the reserve ratio first meets 

or exceeds 1.35 percent, but not past the fourth quarter of 2018. If the reserve ratio has not 

reached 1.35 percent by the end of 2018, a shortfall assessment will be imposed on large 

banks 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. After the reserve ratio reaches 

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.

On April 26, 2016, the Board adopted a final rule that amends the way insurance assessment 

rates are calculated for established small banks.10,11 It updates the data and methodology that 

the FDIC uses to determine risk-based assessment rates for these institutions to better reflect 

risks and to help ensure that banks that take on greater risks pay more for deposit insurance 

than their less risky counterparts. The rule revises the financial ratios method used to determine assessment rates for these banks so that it is based on a statistical model that estimates 

the probability of failure over three years. Financial measures used in the financial ratios 

method are updated to be consistent with the statistical model.

Distribution of the Assessment Base for FDIC-Insured Institutions* 

by Asset Size

Data as of March 31, 2016

Asset Size Number of Institutions

Percent of 

Total Institutions

Assessment Base** 

($ Bil.) Percent of Base

Less Than $1 Billion 5,397 88.2 $1,123.7 8.1 

$1 - $10 Billion 616 10.1 1,522.4 10.9 

$10 - $50 Billion 69 1.1 1,396.0 10.0 

$50 - $100 Billion 15 0.2 957.8 6.9 

Over $100 Billion 25 0.4 8,951.9 64.2 

Total 6,122 100.0 13,951.8 100.0 

* Excludes insured U.S. branches of foreign banks.

** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.

Table 1

7 Large banks are, generally, banks with assets of $10 billion or more.

8 The assessment base for the surcharge will be a large bank’s regular assessment base reduced by $10 billion (and subject to 

adjustment for affiliated banks).

9 As discussed below, the FDIC Board reaffirmed these lower rates in April 2016.

10 Generally, banks that have less than $10 billion in assets that have been federally insured for at least five years.

11 https://www.gpo.gov/fdsys/pkg/FR-2016-05-20/pdf/2016-11181.pdf. 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

Initial and Total Base Assessment Rates* 

(In basis points per annum)

After the Reserve Ratio Reaches 1.15 Percent**

Established Small Banks

Large & 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

* Total base assessment rates in the table do not include the Depository Institution Debt Adjustment (DIDA).

** The reserve ratio for the immediately prior assessment period must also be less than 2 percent.

*** The unsecured debt adjustment cannot exceed the lesser of 5 basis points or 50 percent of an insured depository institution’s initial base assessment 

rate; thus, for example, an insured depository institution with an initial base assessment rate of 3 basis points will have a maximum unsecured debt 

adjustment of 1.5 basis points and cannot have a total base assessment rate lower than 1.5 basis points.

Table 2

The rule eliminates risk categories for established small banks and uses the financial ratios 

method for all such banks (subject to minimum or maximum assessment rates based on a 

bank’s CAMELS composite rating). The final rule preserves the overall reduction in assessment rates that will apply once the DIF reaches 1.15 percent and adopts the assessment rate 

schedules shown in Table 2.

The aggregate assessment revenue collected from small banks will be approximately the 

same as it would have been without the changes in the rule. The FDIC estimates that assessment rates under the final rule will be lower than current rates for about 93 percent of small 

banks and higher for about 7 percent of small banks. This final rule is also effective on July 1. 

If the reserve ratio reaches 1.15 percent before that date, the revisions in the final rule will 

begin July 1. If the reserve ratio has not reached 1.15 percent by that date, the revisions will 

begin the first quarter after the reserve ratio reaches 1.15 percent.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817
2 0 1 6  •Volume 1 0  • Number 2

26 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

0.80

0.84

0.88

1.01 1.03 1.06

1.11

0.60

0.64

0.68

0.79

1.09

1.13

3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

1st 

Quarter 

2016

4th 

Quarter 

2015

3rd 

Quarter 

2015

2nd 

Quarter 

2015

1st 

Quarter 

2015

4th 

Quarter 

2014

3rd 

Quarter 

2014

2nd 

Quarter 

2014

1st 

Quarter 

2014

4th 

Quarter 

2013

3rd 

Quarter 

2013

2nd 

Quarter 

2013

1st 

Quarter 

2013

Beginning Fund Balance $72,600 $70,115 $67,589 $65,296 $62,780 $54,320 $51,059 $48,893 $47,191 $40,758 $37,871 $35,742 $32,958

Changes in Fund Balance:

Assessments earned 2,328 2,160 2,170 2,328 2,189 2,030 2,009 2,224 2,393 2,224 2,339 2,526 2,645

Interest earned on 

investment securities 147 128 122 113 60 70 80 87 45 23 34 54 -9

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 302 156 0 0

Operating expenses 415 447 410 434 396 408 406 428 422 436 298 439 436

Provision for insurance 

losses -43 -930 -578 -317 -426 -6,787 -1,663 -204 348 -4,588 -539 -33 -499

All other income, 

net of expenses 5 12 2 3 6 -43 6 6 9 9 46 51 55

Unrealized gain/(loss) on 

available-for-sale 

securities 412 -298 64 -34 231 24 -91 73 25 -277 71 -96 30

Total fund balance change 2,520 2,485 2,526 2,293 2,516 8,460 3,261 2,166 1,702 6,433 2,887 2,129 2,784

Ending Fund Balance 75,120 72,600 70,115 67,589 65,296 62,780 54,320 51,059 48,893 47,191 40,758 37,871 35,742

Percent change from 

 four quarters earlier 15.05 15.64 29.08 32.37 33.55 33.03 33.27 34.82 36.79 43.19 61.58 66.88 133.73

Reserve Ratio (%) 1.13 1.11 1.09 1.06 1.03 1.01 0.88 0.84 0.80 0.79 0.68 0.64 0.60

Estimated Insured 

Deposits 6,669,378 6,541,665 6,423,858 6,350,106 6,352,414 6,211,197 6,141,732 6,109,668 6,120,755 6,010,810 5,967,515 5,950,765 5,999,235

Percent change from 

 four quarters earlier 4.99 5.32 4.59 3.94 3.78 3.33 2.92 2.67 2.03 -18.83 -17.68 -15.96 -14.68

Domestic Deposits 11,154,728 10,950,088 10,695,508 10,629,336 10,616,459 10,408,189 10,213,201 10,099,416 9,962,545 9,825,480 9,631,665 9,424,637 9,454,796

Percent change from 

 four quarters earlier 5.07 5.21 4.72 5.25 6.56 5.93 6.04 7.16 5.37 3.70 6.02 5.45 6.85

Assessment Base** 14,025,685 13,859,593 13,687,867 13,620,468 13,545,766 13,360,103 13,127,457 12,921,318 12,809,815 12,757,552 12,538,835 12,502,839 12,440,201

Percent change from 

 four quarters earlier 3.54 3.74 4.27 5.41 5.75 4.72 4.69 3.35 2.97 2.59 2.14 2.82 1.34

Number of Institutions 

Reporting 6,131 6,191 6,279 6,357 6,428 6,518 6,598 6,665 6,739 6,821 6,900 6,949 7,028

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

3/13 $35,742 $5,999,235

6/13 37,871 5,950,765

9/13 40,758 5,967,515

12/13 47,191 6,010,810

3/14 48,893 6,120,755

6/14 51,059 6,109,668

9/14 54,320 6,141,732

12/14 62,780 6,211,197

3/15 65,296 6,352,414

6/15 67,589 6,350,106

9/15 70,115 6,423,858

12/15 72,600 6,541,665

3/16 75,120 6,669,378

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2016*** 2015*** 2015 2014 2013 2012 2011

Problem Institutions

Number of institutions 165 253 183 291 467 651 813

Total assets $30,870 $60,276 $46,780 $86,712 $152,687 $232,701 $319,432

Failed Institutions

Number of institutions 1 4 8 18 24 51 92

Total assets**** $67 $6,299 $6,706 $2,914 $6,044 $11,617 $34,923

* Quarterly financial statement results are unaudited.

** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

*** Through March 31.

**** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions)

March 31, 2016

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 5,289 $15,202,849 $10,245,808 $5,938,941

 FDIC-Supervised 3,510 2,338,073 1,854,156 1,318,810

 OCC-Supervised 980 10,417,123 6,739,830 3,732,712

 Federal Reserve-Supervised 799 2,447,653 1,651,822 887,419

FDIC-Insured Savings Institutions 833 1,090,594 860,631 701,662

 OCC-Supervised Savings Institutions 395 696,112 562,604 464,096

 FDIC-Supervised Savings Institutions 401 370,165 278,969 222,124

 Federal Reserve-Supervised 37 24,317 19,058 15,441

Total Commercial Banks and Savings Institutions 6,122 16,293,443 11,106,439 6,640,603

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 95,647 48,289 28,776

Total FDIC-Insured Institutions 6,131 16,389,090 11,154,728 6,669,378

* 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, 2015 (dollar figures in billions)

Annual Rate in Basis Points

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base*

Percent of Total 

Assessment Base

2.50-5.00 1,640 26.49 $1,785.9 12.89

5.01-7.50 3,074 49.65 10,331.0 74.54

7.51-10.00 920 14.86 1,249.2 9.01

10.01-15.00 362 5.85 342.4 2.47

15.01-20.00 16 0.26 58.7 0.42

 20.01-25.00 143 2.31 85.6 0.62

 25.01-30.00 0 0.00 0.0 0.00

 30.01-35.00 35 0.57 6.6 0.05

greater than 35.00 1 0.02 0.0 0.00

* Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as required by the Dodd-Frank Act.

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through V-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

institutions, both commercial banks and savings institutions. Tables 

VI-A (Derivatives) and VII-A (Servicing, Securitization, and Asset 

Sales Activities) aggregate information only for insured commercial banks and state-chartered savings banks that file quarterly Call 

Reports. Table VIII-A (Trust Services) aggregates Trust asset and 

income information collected annually from all FDIC-insured institutions. Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios, and structural changes, as well as past due, noncurrent, and 

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.

The determination of which insured institutions are considered community banks is based on five steps.

The first step in defining a community bank is to aggregate all 

charter-level data reported under each holding company into 

a single banking organization. This aggregation applies both to 

balance-sheet measures and the number and location of banking 

offices. Under the FDIC definition, if the banking organization is 

designated as a community bank, every charter reporting under that 

organization is also considered a community bank when working 

with data at the charter level.

The second step is to exclude any banking organization where more 

than 50 percent of total assets are held in certain specialty banking 

charters, including: credit card specialists, consumer nonbank banks, 

industrial loan companies, trust companies, bankers’ banks, and banks 

holding 10 percent or more of total assets in foreign offices.

Once the specialty organizations are removed, the third step involves 

including organizations that engage in basic banking activities as 

measured by the total loans-to-assets ratio (greater than 33 percent) 

and the ratio of core deposits to assets (greater than 50 percent). Core 

deposits are defined as 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 gradually adjusted upward over 

time. For banking offices, banks must have more than one office, and 

the maximum number of offices starts at 40 in 1985 and reaches 75 in 

2010. The maximum level of deposits for any one office is $1.25 billion in deposits in 1985 and $5 billion in deposits in 2010. The 

remaining geographic limitations are also based on maximums for 

the number of states (fixed at 3) and large metropolitan areas (fixed 

at 2) in which the organization maintains offices. Branch office data 

are based on the most recent data from the annual June 30 Summary 

of Deposits Survey that are available at the time of publication.

Finally, the definition establishes an asset-size limit, also adjusted 

upward over time from $250 million in 1985 to $1 billion in 2010, 

below which the limits on banking activities and geographic scope are 

waived. This final step acknowledges the fact that most of those small 

banks that are not excluded as specialty banks meet the requirements 

for banking activities and geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum 

number of offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

1 Consumer nonbank banks are financial institutions with limited charters that can 

make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $1 billion in 2010.

3 Maximum number of offices indexed to equal 40 in 1985 and 75 in 2010.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $5 billion 

in 2010.
2 0 1 6  •Volume 1 0  • Number 2

30 FDIC QUARTERLY

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed/assisted institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository institutions that are not insured by the FDIC through the DIF are not included in the FDIC Quarterly Banking Profile. U.S. branches of institutions 

headquartered in foreign countries and non-deposit trust companies 

are not included unless otherwise indicated. Efforts are made to obtain 

financial reports for all active institutions. However, in some cases, 

final financial reports are not available for institutions that have closed 

or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports submitted by 

all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

i.e., the sum of the individual numerator values divided by the sum 

of individual denominator values. All asset and liability figures used 

in calculating performance ratios represent average amounts for the 

period (beginning-of-period amount plus end-of-period amount plus 

any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income includes 

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

base period to totals for institutions in the current period. For the 

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup.

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home 

state. In addition, institutions may relocate across state lines or 

change their charters, resulting in an inter-regional or inter-industry 

migration, e.g., institutions can move their home offices between 

regions, and savings institutions can convert to commercial banks or 

commercial banks may convert to savings institutions.

ACCOUNTING CHANGES

Accounting for Measurement-Period Adjustments Related to a 

Business Combination 

In September 2015, the Financial Accounting Standards Board 

(FASB) issued Accounting Standards Update (ASU) No. 2015-16, 

“Simplifying the Accounting for Measurement-Period Adjustments.” 

Under Accounting Standards Codification Topic 805, Business 

Combinations (formerly FASB Statement No. 141(R), “Business 

Combinations”), if the initial accounting for a business combination 

is incomplete by the end of the reporting period in which the combination occurs, the acquirer reports provisional amounts in its financial statements for the items for which the accounting is incomplete. 

During the measurement period, the acquirer is required to adjust the 

provisional amounts recognized at the acquisition date, with a corresponding adjustment to goodwill, to reflect new information obtained 

about facts and circumstances that existed as of the acquisition date 

that, if known, would have affected the measurement of the amounts 

recognized as of that date. At present under Topic 805, an acquirer is 

required to retrospectively adjust the provisional amounts recognized 

at the acquisition date to reflect the new information. To simplify the 

accounting for the adjustments made to provisional amounts, ASU 

2015-16 eliminates the requirement to retrospectively account for the 

adjustments. Accordingly, the ASU amends Topic 805 to require an 

acquirer to recognize adjustments to provisional amounts that are 

identified during the measurement period in the reporting period 

in which adjustment amounts are determined. Under the ASU, the 

acquirer also must recognize in the financial statements for the same 

reporting period the effect on earnings, if any, resulting from the 

adjustments to the provisional amounts as if the accounting for the 

business combination had been completed as of the acquisition date. 

In general, the measurement period in a business combination is 

the period after the acquisition date during which the acquirer may 

adjust provisional amounts reported for identifiable assets acquired, 

liabilities assumed, and consideration transferred for the acquiree for 

which the initial accounting for the business combination is incomplete at the end of the reporting period in which the combination 

occurs. Topic 805 provides additional guidance on the measurement 

period, which shall not exceed one year from the acquisition date, 

and adjustments to provisional amounts during this period. 

For institutions that are public business entities, as defined under U.S. 

GAAP, ASU 2015-16 is effective for fiscal years, and interim periods 

within those fiscal years, beginning after December 15, 2015. For 

institutions that are not public business entities (i.e., that are private 

companies), the ASU is effective for fiscal years beginning after 

December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The ASU’s amendments to Topic 805 

should be applied prospectively to adjustments to provisional 

amounts that occur after the effective date of the ASU. Thus, institutions with a calendar year fiscal year that are public business entities 

must apply the ASU to any adjustments to provisional amounts that 

occur after January 1, 2016, beginning with their Call Reports for 

March 31, 2016. Institutions with a calendar year fiscal year that are 

private companies must apply the ASU to any adjustments to provisional amounts that occur after January 1, 2017, beginning with their 

Call Reports for December 31, 2017. Early application of ASU 2015-

16 is permitted in Call Reports that have not been submitted. 

For additional information, institutions should refer to ASU 

2015-16, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 31

Debt Issuance Costs 

In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the 

Presentation of Debt Issuance Costs.” This ASU requires debt issuance costs associated with a recognized debt liability to be presented 

as a direct deduction from the face amount of the related debt liability, similar to debt discounts. The ASU is limited to the presentation 

of debt issuance costs; therefore, the recognition and measurement guidance for such costs is unaffected. At present, Accounting 

Standards Codification (ASC) Subtopic 835-30, Interest—Imputation 

of Interest, requires debt issuance costs to be reported on the balance 

sheet as an asset (i.e., a deferred charge). For Call Report purposes, 

the costs of issuing debt currently are reported, net of accumulated 

amortization, in “Other assets.”

For institutions that are public business entities, as defined under U.S. 

GAAP, ASU 2015-03 is effective for fiscal years, and interim periods 

within those fiscal years, beginning after December 15, 2015. For 

example, institutions with a calendar year fiscal year that are public 

business entities must apply the ASU in their Call Reports beginning 

March 31, 2016. For institutions that are not public business entities 

(i.e., that are private companies), the ASU is effective for fiscal years 

beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Thus, institutions with 

a calendar year fiscal year that are private companies must apply 

the ASU in their December 31, 2016, and subsequent quarterly Call 

Reports. Early adoption of the guidance in ASU 2015-03 is permitted.

Extraordinary Items

In January 2015, the FASB issued ASU No. 2015-01, “Simplifying 

Income Statement Presentation by Eliminating the Concept of 

Extraordinary Items.” This ASU eliminates from U.S. GAAP the 

concept of extraordinary items. At present, ASC Subtopic 225-20, 

Income Statement—Extraordinary and Unusual Items (formerly 

Accounting Principles Board Opinion No. 30, “Reporting the Results 

of Operations”), requires an entity to separately classify, present, and 

disclose extraordinary events and transactions. An event or transaction is presumed to be an ordinary and usual activity of the reporting 

entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction currently meets the criteria for 

extraordinary classification, an institution must segregate the extraordinary item from the results of its ordinary operations and report the 

extraordinary item in its income statement as “Extraordinary items 

and other adjustments, net of income taxes.” 

ASU 2015-01 is effective for fiscal years, and interim periods within 

those fiscal years, beginning after December 15, 2015. Thus, for 

example, institutions with a calendar year fiscal year must begin 

to apply the ASU in their Call Reports for March 31, 2016. Early 

adoption of ASU 2015-01 is permitted provided that the guidance 

is applied from the beginning of the fiscal year of adoption. For Call 

Report purposes, an institution with a calendar year fiscal year must 

apply the ASU prospectively, that is, in general, to events or transactions occurring after the date of adoption. However, an institution 

with a fiscal year other than a calendar year may elect to apply ASU 

2015-01 prospectively or, alternatively, it may elect to apply the ASU 

retrospectively to all prior calendar quarters included in the institution’s year-to-date Call Report income statement that includes the 

beginning of the fiscal year of adoption. 

After an institution adopts ASU 2015-01, any event or transaction 

that would have met the criteria for extraordinary classification 

before the adoption of the ASU should be reported in “Other noninterest income,” or “Other noninterest expense,” as appropriate, unless 

the event or transaction would otherwise be reportable in the income 

statement. In addition, consistent with ASU 2015-01, the agencies 

plan to remove reference to the term “extraordinary items” from the 

Call Report income statement.

For additional information, institutions should refer to ASU 

2015-01, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Accounting by Private Companies for Identifiable Intangible Assets 

in a Business Combination

In December 2014, the FASB issued ASU No. 2014-18, “Accounting 

for Identifiable Intangible Assets in a Business Combination,” which 

is a consensus of the Private Company Council (PCC). This ASU 

provides an accounting alternative that permits a private company, 

as defined in U.S. GAAP (and discussed in a later section of these 

Supplemental Instructions), to simplify the accounting for certain 

intangible assets. The accounting alternative applies when a private 

company is required to recognize or otherwise consider the fair value 

of intangible assets as a result of certain transactions, including when 

applying the acquisition method to a business combination under 

ASC Topic 805, Business Combinations (formerly FASB Statement 

No. 141 (revised 2007), “Business Combinations”).

Under ASU 2014-18, a private company that elects the accounting 

alternative should no longer recognize separately from goodwill:

•Customer-related intangible assets unless they are capable of bein

sold or licensed independently from the other assets of a business, 

and

• Noncompetition agreements.

However, because mortgage servicing rights and core deposit intangibles are regarded as capable of being sold or licensed independently, 

a private company that elects this accounting alternative must recognize these intangible assets separately from goodwill, initially measure 

them at fair value, and subsequently measure them in accordance 

with ASC Topic 350, Intangibles–Goodwill and Other (formerly 

FASB Statement No. 142, “Goodwill and Other Intangible Assets”).

A private company that elects the accounting alternative in 

ASU 2014-18 also must adopt the private company goodwill accounting alternative described in ASU 2014-02, “Accounting for Goodwill.” 

However, a private company that elects the goodwill accounting 

alternative in ASU 2014-02 is not required to adopt the accounting 

alternative for identifiable intangible assets in ASU 2014-18.

A private company’s decision to adopt ASU 2014-18 must be made 

upon the occurrence of the first business combination (or other 

transaction within the scope of the ASU) in fiscal years beginning 

after December 15, 2015. The effective date of the private company’s 

decision to adopt the accounting alternative for identifiable intangible 

assets depends on the timing of that first transaction.

If the first transaction occurs in the private company’s first fiscal year 

beginning after December 15, 2015, the adoption will be effective for 

that fiscal year’s annual financial reporting period and all interim and 

annual periods thereafter. If the first transaction occurs in a fiscal 

year beginning after December 15, 2016, the adoption will be effective in the interim period that includes the date of the transaction and 

subsequent interim and annual periods thereafter.

Early application of the intangibles accounting alternative is permitted for any annual or interim period for which a private company’s 

financial statements have not yet been made available for issuance. 

Customer-related intangible assets and noncompetition agreements 

that exist as of the beginning of the period of adoption should continue to be accounted for separately from goodwill, i.e., such existing 

intangible assets should not be combined with goodwill.
2 0 1 6  •Volume 1 0  • Number 2

32 FDIC QUARTERLY

A bank or savings association that meets the private company definition in U.S. GAAP is permitted, but not required, to adopt ASU 2014-

18 for Call Report purposes and may choose to early adopt the ASU, 

provided it also adopts the private company goodwill accounting 

alternative. If a private institution issues U.S. GAAP financial statements and adopts ASU 2014-18, it should apply the ASU’s intangible 

asset accounting alternative in its Call Report in a manner consistent 

with its reporting of intangible assets in its financial statements.

For additional information on the private company accounting alternative for identifiable intangible assets, institutions should refer to 

ASU 2014-18, which is available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.

Private Company Accounting Alternatives 

In May 2012, the Financial Accounting Foundation, the independent 

private sector organization responsible for the oversight of the FASB, 

approved the establishment of the PCC to improve the process of setting accounting standards for private companies. The PCC is charged 

with working jointly with the FASB to determine whether and in 

what circumstances to provide alternative recognition, measurement, 

disclosure, display, effective date, and transition guidance for private 

companies reporting under U.S. GAAP. Alternative guidance for private companies may include modifications or exceptions to otherwise 

applicable existing U.S. GAAP standards. 

The banking agencies have concluded that a bank or savings association that is a private company, as defined in U.S. GAAP (as discussed 

in a later section of these Supplemental Instructions), is permitted 

to use private company accounting alternatives issued by the FASB 

when preparing its Call Reports, except as provided in 12 U.S.C. 

1831n(a) as described in the following sentence. If the agencies 

determine that a particular accounting principle within U.S. GAAP, 

including a private company accounting alternative, is inconsistent 

with the statutorily specified supervisory objectives, the agencies may 

prescribe an accounting principle for regulatory reporting purposes 

that is no less stringent than U.S. GAAP. In such a situation, an institution would not be permitted to use that particular private company 

accounting alternative or other accounting principle within U.S. 

GAAP for Call Report purposes. The agencies would provide appropriate notice if they were to disallow any accounting alternative under 

the statutory process.

Accounting by Private Companies for Goodwill 

On January 16, 2014, the FASB issued ASU No. 2014-02, 

“Accounting for Goodwill,” which is a consensus of the PCC. This 

ASU generally permits a private company to elect to amortize goodwill on a straight-line basis over a period of ten years (or less than ten 

years if more appropriate) and apply a simplified impairment model 

to goodwill. In addition, if a private company chooses to adopt the 

ASU’s goodwill accounting alternative, the ASU requires the private 

company to make an accounting policy election to test goodwill 

for impairment at either the entity level or the reporting unit level. 

Goodwill must be tested for impairment when a triggering event 

occurs that indicates that the fair value of an entity (or a reporting 

unit) may be below its carrying amount. In contrast, U.S. GAAP does 

not otherwise permit goodwill to be amortized, instead requiring 

goodwill to be tested for impairment at the reporting unit level annually and between annual tests in certain circumstances. The ASU’s 

goodwill accounting alternative, if elected by a private company, is 

effective prospectively for new goodwill recognized in annual periods 

beginning after December 15, 2014, and in interim periods within 

annual periods beginning after December 15, 2015. Goodwill existing as of the beginning of the period of adoption is to be amortized 

prospectively over ten years (or less than ten years if more appropriate). The ASU states that early application of the goodwill accounting 

alternative is permitted for any annual or interim period for which a 

private company’s financial statements have not yet been made available for issuance. 

A bank or savings association that meets the private company definition in ASU 2014-02, as discussed in the following section of these 

Supplemental Instructions (i.e., a private institution), is permitted, 

but not required, to adopt this ASU for Call Report purposes and 

may choose to early adopt the ASU. If a private institution issues U.S. 

GAAP financial statements and adopts the ASU, it should apply the 

ASU’s goodwill accounting alternative in its Call Report in a manner 

consistent with its reporting of goodwill in its financial statements. 

Thus, for example, a private institution with a calendar year fiscal year that chooses to adopt ASU 2014-02 must apply the ASU’s 

provisions in its December 31, 2015, and subsequent quarterly Call 

Reports unless early application of the ASU was elected. This would 

require the private institution to report in its December 31, 2015, Call 

Report one year’s amortization of goodwill existing as of January 1, 

2015, and the amortization of any new goodwill recognized in 2015. 

For additional information on the private company accounting 

alternative for goodwill, institutions should refer to ASU 2014-

02, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Definitions of Private Company and Public Business Entity

According to ASU No. 2014-02, “Accounting for Goodwill,” a private 

company is a business entity that is not a public business entity. ASU 

No. 2013-12, “Definition of a Public Business Entity,” which was 

issued in December 2013, added this term to the Master Glossary 

in the Accounting Standards Codification. This ASU states that a 

business entity, such as a bank or savings association, that meets any 

one of five criteria set forth in the ASU is a public business entity for 

reporting purposes under U.S. GAAP, including for Call Report purposes. An institution that is a public business entity is not permitted 

to apply the private company goodwill accounting alternative discussed in the preceding section when preparing its Call Report.

For additional information on the definition of a public business 

entity, institutions should refer to ASU 2013-12, which is available at 

http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=

1176156316498.

Reporting Certain Government-Guaranteed Mortgage Loans 

Upon Foreclosure 

In August 2014, the FASB issued Accounting Standards Update 

(ASU) No. 2014-14, “Classification of Certain GovernmentGuaranteed Mortgage Loans Upon Foreclosure,” to address diversity 

in practice for how government-guaranteed mortgage loans are 

recorded upon foreclosure. The ASU updates guidance contained in 

ASC Subtopic 310-40, Receivables—Troubled Debt Restructurings by 

Creditors (formerly FASB Statement No. 15, “Accounting by Debtors 

and Creditors for Troubled Debt Restructurings,” as amended), 

because U.S. GAAP previously did not provide specific guidance on 

how to categorize or measure foreclosed mortgage loans that are government guaranteed. The ASU clarifies the conditions under which a 

creditor must derecognize a government-guaranteed mortgage loan 

and recognize a separate “other receivable” upon foreclosure (that is, 

when a creditor receives physical possession of real estate property 

collateralizing a mortgage loan in accordance with the guidance in 

ASC Subtopic 310-40). 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 33

Under the ASU, institutions should derecognize a mortgage loan and 

record a separate other receivable upon foreclosure of the real estate 

collateral if the following conditions are met: 

•The loan has a government guarantee that is not separable from th

loan before foreclosure. 

•At the time of foreclosure, the institution has the intent to conve

the property to the guarantor and make a claim on the guarantee 

and it has the ability to recover under that claim. 

•At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed (tha

is, the real estate property has been appraised for purposes of the 

claim and thus the institution is not exposed to changes in the fair 

value of the property). 

This guidance is applicable to fully and partially governmentguaranteed mortgage loans provided the three conditions identified 

above have been met. In such situations, upon foreclosure, the separate other receivable should be measured based on the amount of the 

loan balance (principal and interest) expected to be recovered from 

the guarantor. 

For institutions that are public business entities, as defined under 

U.S. GAAP (as discussed in an earlier section of these Supplemental 

Instructions), ASU 2014-14 is effective for fiscal years, and interim 

periods within those fiscal years, beginning after December 15, 2014. 

For example, institutions with a calendar year fiscal year that are 

public business entities must apply the ASU in their Call Reports 

beginning March 31, 2015. However, institutions that are not public 

business entities (i.e., that are private companies) are not required 

to apply the guidance in ASU 2014-14 until annual periods ending after December 15, 2015, and interim periods beginning after 

December 15, 2015. Thus, institutions with a calendar year fiscal year 

that are private companies must apply the ASU in their December 31, 

2015, and subsequent quarterly Call Reports. Earlier adoption of the 

guidance in ASU 2014-14 is permitted if the institution has already 

adopted the amendments in ASU No. 2014-04, “Reclassification of 

Residential Real Estate Collateralized Consumer Mortgage Loans 

upon Foreclosure.” 

For additional information, institutions should refer to ASU 

2014-14, which is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498. 

Reclassification of Residential Real Estate Collateralized 

Consumer Mortgage Loans Upon Foreclosure

In January 2014, the FASB issued Accounting Standards Update 

(ASU) No. 2014-04, “Reclassification of Residential Real Estate 

Collateralized Consumer Mortgage Loans upon Foreclosure,” to 

address diversity in practice for when certain loan receivables should 

be derecognized and the real estate collateral recognized. The ASU 

updated guidance contained in Accounting Standards Codification 

Subtopic 310-40, Receivables–Troubled Debt Restructurings by 

Creditors (formerly FASB Statement No.15, “Accounting by Debtors 

and Creditors for Troubled Debt Restructurings,” as amended).

Under prior accounting guidance, all loan receivables were reclassified to other real estate owned (OREO) when the institution, as 

creditor, obtained physical possession of the property, regardless of 

whether formal foreclosure proceedings had taken place. The new 

ASU clarifies when a creditor is considered to have received physical 

possession (resulting from an in-substance repossession or foreclosure) of residential real estate collateralizing a consumer mortgage 

loan. Under the new guidance, physical possession for these residential real estate properties is considered to have occurred and a loan 

receivable would be reclassified to OREO only upon:

•The institution obtaining legal title upon completion of a fo

closure even if the borrower has redemption rights that provide the 

borrower with a legal right for a period of time after foreclosure to 

reclaim the property by paying certain amounts specified by law, or

•The completion of a deed in lieu of foreclosure or similar lega

agreement under which the borrower conveys all interest in the 

residential real estate property to the institution to satisfy the loan.

Loans secured by real estate other than consumer mortgage loans collateralized by residential real estate should continue to be reclassified 

to OREO when the institution has received physical possession of a 

borrower’s real estate, regardless of whether formal foreclosure proceedings take place.

For institutions that are public business entities, as defined under U.S. 

generally accepted accounting principles, ASU 2014-04 is effective for 

fiscal years, and interim periods within those fiscal years, beginning 

after December 15, 2014. For example, institutions with a calendar 

year fiscal year that are public business entities must apply the ASU 

in their Call Reports beginning March 31, 2015. However, institutions that are not public business entities are not required to apply 

the guidance in ASU 2014-04 until annual periods beginning after 

December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Thus, institutions with a calendar year 

fiscal year that are not public business entities must apply the ASU 

in their December 31, 2015, and subsequent quarterly Call Reports. 

Earlier adoption of the guidance in ASU 2014-04 is permitted. 

Entities can elect to apply the ASU on either a modified retrospective 

transition basis or a prospective transition basis. Applying the ASU on 

a prospective transition basis should be less complex for institutions 

than applying the ASU on a modified retrospective transition basis. 

Under the prospective transition method, an institution should apply 

the new guidance to all instances where it receives physical possession 

of residential real estate property collateralizing consumer mortgage 

loans that occur after the date of adoption of the ASU. Under the 

modified retrospective transition method, an institution should apply 

a cumulative-effect adjustment to residential consumer mortgage 

loans and OREO existing as of the beginning of the annual period 

for which the ASU is effective. As a result of adopting the ASU on a 

modified retrospective basis, assets reclassified from OREO to loans 

should be measured at the carrying value of the real estate at the date 

of adoption while assets reclassified from loans to OREO should be 

measured at the lower of the net amount of the loan receivable or the 

OREO property’s fair value less costs to sell at the time of adoption.

For additional information, institutions should refer to ASU 2014-04, 

which is available at http://www.fasb.org/jsp/FASB/Page/SectionPage

&cid=1176156316498.

True-Up Liability Under an FDIC Loss-Sharing Agreement

An insured depository institution that acquires a failed insured institution may enter into a loss-sharing agreement with the FDIC under 

which the FDIC agrees to absorb a portion of the losses on a specified 

pool of the failed institution’s assets during a specified time period. 

The acquiring institution typically records an indemnification asset 

representing its right to receive payments from the FDIC for losses 

during the specified time period on assets covered under the losssharing agreement.

Since 2009, most loss-sharing agreements have included a true-up 

provision that may require the acquiring institution to reimburse the 

FDIC if cumulative losses in the acquired loss-share portfolio are less 
2 0 1 6  •Volume 1 0  • Number 2

34 FDIC QUARTERLY

than the amount of losses claimed by the institution throughout the 

loss-sharing period. Typically, a true-up liability may result because 

the recovery period on the loss-share assets (e.g., eight years) is 

longer than the period during which the FDIC agrees to reimburse 

the acquiring institution for losses on the loss-share portfolio (e.g., 

five years).

Consistent with U.S. GAAP and bank guidance for “Offsetting,” 

institutions are permitted to offset assets and liabilities recognized 

in the Report of Condition when a “right of setoff” exists. Under 

ASC Subtopic 210-20, Balance Sheet—Offsetting (formerly FASB 

Interpretation No. 39, “Offsetting of Amounts Related to Certain 

Contracts”), in general, a right of setoff exists when a reporting 

institution and another party each owes the other determinable 

amounts, the reporting institution has the right to set off the amounts 

each party owes and also intends to set off, and the right of setoff is 

enforceable at law. Because the conditions for the existence of a right 

of offset in ASC Subtopic 210-20 normally would not be met with 

respect to an indemnification asset and a true-up liability under a losssharing agreement with the FDIC, this asset and liability should not be 

netted for Call Report purposes. Therefore, institutions should report 

the indemnification asset gross (i.e., without regard to any true-up 

liability) in Other Assets, and any true-up liability in Other Liabilities.

In addition, an institution should not continue to report assets 

covered by loss-sharing agreements after the expiration of the losssharing period even if the terms of the loss-sharing agreement require 

reimbursements from the institution to the FDIC for certain amounts 

during the recovery period.

Indemnification Assets and Accounting Standards Update 

No. 2012-06 – In October 2012, the FASB issued Accounting 

Standards Update (ASU) No. 2012-06, “Subsequent Accounting 

for an Indemnification Asset Recognized at the Acquisition Date 

as a Result of a Government-Assisted Acquisition of a Financial 

Institution,” to address the subsequent measurement of an indemnification asset recognized in an acquisition of a financial institution that 

includes an FDIC loss-sharing agreement. This ASU amends ASC 

Topic 805, Business Combinations (formerly FASB Statement No. 141 

(revised 2007), “Business Combinations”), which includes guidance 

applicable to FDIC-assisted acquisitions of failed institutions.

Under the ASU, when an institution experiences a change in the 

cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash flows expected to be 

collected on the assets covered by the loss-sharing agreement, the 

institution should account for the change in the measurement of the 

indemnification asset on the same basis as the change in the assets 

subject to indemnification. Any amortization of changes in the value 

of the indemnification asset should be limited to the lesser of the 

term of the indemnification agreement and the remaining life of the 

indemnified assets.

The ASU is effective for fiscal years, and interim periods within those 

fiscal years, beginning on or after December 15, 2012. For institutions with a calendar year fiscal year, the ASU takes effect January 1, 

2013. Early adoption of the ASU is permitted. The ASU’s provisions 

should be applied prospectively to any new indemnification assets 

acquired after the date of adoption and to indemnification assets 

existing as of the date of adoption arising from an FDIC-assisted 

acquisition of a financial institution. Institutions with indemnification assets arising from FDIC loss-sharing agreements are expected 

to adopt ASU 2012-06 for Call Report purposes in accordance with 

the effective date of this standard. For additional information, refer 

to ASU 2012-06, available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Goodwill Impairment Testing – In September 2011, the FASB issued 

Accounting Standards Update (ASU) No. 2011-08, “Testing Goodwill 

for Impairment,” to address concerns about the cost and complexity of the existing goodwill impairment test in ASC Topic 350, 

Intangibles-Goodwill and Other (formerly FASB Statement No. 142, 

“Goodwill and Other Intangible Assets”). The ASU’s amendments to 

ASC Topic 350 are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 

2011 (i.e., for annual or interim tests performed on or after January 1, 

2012, for institutions with a calendar year fiscal year). Early adoption 

of the ASU was permitted. Under ASU 2011-08, an institution has 

the option of first assessing qualitative factors to determine whether 

it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering all relevant events and circumstances, an institution determines it is unlikely 

(that is, a likelihood of 50 percent or less) that the fair value of a 

reporting unit is less than its carrying amount (including goodwill), 

then the institution does not need to perform the two-step goodwill 

impairment test. If the institution instead concludes that the opposite 

is true (that is, it is likely that the fair value of a reporting unit is less 

than its carrying amount), then it is required to perform the first step 

and, if necessary, the second step of the two-step goodwill impairment test. Under ASU 2011-08, an institution may choose to bypass 

the qualitative assessment for any reporting unit in any period and 

proceed directly to performing the first step of the two-step goodwill 

impairment test.

Accounting for Loan Participations – Amended ASC Topic 860 

(formerly FAS 166) modified the criteria that must be met in order 

for a transfer of a portion of a financial asset, such as a loan participation, to qualify for sale accounting—refer to previously published 

Quarterly Banking Profile notes: http://www5.fdic.gov/qbp/2011mar/

qbpnot.html.

Other-Than-Temporary Impairment – When the fair value of an 

investment in an individual available-for-sale or held-to-maturity 

security is less than its cost basis, the impairment is either temporary 

or other-than-temporary. The amount of the total other-than-temporary impairment related to credit loss must be recognized in earnings, 

but the amount of total impairment related to other factors must be 

recognized in other comprehensive income, net of applicable taxes. 

To determine whether the impairment is other-than-temporary, an 

institution must apply the applicable accounting guidance—refer to 

previously published Quarterly Banking Profile notes: http://www5.

fdic.gov/qbp/2011mar/qbpnot.html.

Accounting Standards Codification – refer to previously published 

Quarterly Banking Profile notes: http://www5.fdic.gov/qbp/2011sep/

qbpnot.html. 

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base has changed to “average consolidated total assets 

minus average tangible equity” with an additional adjustment to the 
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 35

assessment base for banker’s banks and custodial banks, as permitted 

under Dodd-Frank. Previously the assessment base was “assessable 

deposits” and consisted of DIF deposits (deposits insured by the 

FDIC Deposit Insurance Fund) in banks’ domestic offices with certain adjustments.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity tier 1 capital ratio – ratio of common equity tier 1 

capital to risk-weighted assets. Common equity tier 1 capital includes 

common stock instruments and related surplus, retained earnings, 

accumulated other comprehensive income (AOCI), and limited 

amounts of common equity tier 1 minority interest, minus applicable 

regulatory adjustments and deductions. Items that are fully deducted 

from common equity tier 1 capital include goodwill, other intangible 

assets (excluding mortgage servicing assets) and certain deferred tax 

assets; items that are subject to limits in common equity tier 1 capital 

include mortgage servicing assets, eligible deferred tax assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average earning assets.

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative 

plus an additional amount for potential future credit exposure based on 

the notional amount, the remaining maturity and type of the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified 

future date, a specific quantity of an underlying variable or index 

at a specified price or yield. These contracts exist for a variety of 

variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning 

March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Beginning September 30, 2009, insured deposits include deposits in 

accounts of $100,000 to $250,000 that are covered by a temporary 

increase in the FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and Consumer 

Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. 

Also, the Dodd-Frank Act amended the Federal Deposit Insurance 

Act to include noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing transaction accounts were fully insured, without 

limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on the balance sheet—including trading assets and liabilities, available-for-sale 

securities, loans held for sale, assets and liabilities accounted for 

under the fair value option, and foreclosed assets—involves the use 
2 0 1 6  •Volume 1 0  • Number 2

36 FDIC QUARTERLY

of fair values. During periods of market stress, the fair values of some 

financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers, and by TFR filers prior to March 31, 2012.

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships, and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, 

less subsequent quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, junior 

liens secured by 1-4 family residential properties, and all other loans 

secured by real estate.

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed from 

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions that 

actually filed a financial report.

New reporters – insured institutions filing quarterly financial reports 

for the first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that file a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.

Recourse – an arrangement in which a bank retains, in form or in 

substance, any credit risk directly or indirectly associated with an 

asset it has sold (in accordance with generally accepted accounting 

principles) that exceeds a pro rata share of the bank’s claim on the 

asset. If a bank has no claim on an asset it has sold, then the retention 

of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on a 

consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms.

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

Return on equity – bank net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total 

equity capital.

Risk-based capital groups – definitions:

Capital Ratios Used to Determine Capital Evaluations for Assessment 

Purposes, Effective January 1, 2015*

Capital 

Evaluations

Total RiskBased Capital 

Ratio

Tier 1 RiskBased Capital 

Ratio

Common Equity 

Tier 1 Capital 

Ratio Leverage Ratio

Well 

Capitalized

≥10% ≥8% ≥6.5% ≥5%

Adequately 

Capitalized**

≥8% ≥6% ≥4.5% ≥4%

UndercapitalizedDoes not qualify as either Well Capitalized or 

Adequately Capitalized

* Effective January 1, 2018, the supplemental leverage ratio will be added to capital 

evaluations for deposit insurance assessment purposes. 

**An institution is Adequately Capitalized if it is not Well Capitalized, but satisfies 

each of the listed capital ratio standards for Adequately Capitalized.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 37

Risk Categories and Assessment Rate Schedule – The current 

risk categories became effective January 1, 2007. Capital ratios and 

supervisory ratings distinguish one risk category from another. 

Effective April 1, 2011, risk categories for large institutions (generally those with at least $10 billion in assets) were eliminated. The 

following table shows the relationship of risk categories (I, II, III, IV) 

for small institutions to capital and supervisory groups as well as the 

initial base assessment rates (in basis points) for each risk category. 

Supervisory Group A generally includes institutions with CAMELS 

composite ratings of 1 or 2; Supervisory Group B generally includes 

institutions with a CAMELS composite rating of 3; and Supervisory 

Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment capital 

groups, undercapitalized includes institutions that are significantly or 

critically undercapitalized.

Capital Category

Supervisory Group

A B C

1. Well Capitalized I

5–9 bps II

14 bps

III

23 bps 2. Adequately 

Capitalized

II

14 bps

3. Undercapitalized III

23 bps

IV

35 bps

Effective April 1, 2011, the initial base assessment rates are 5 to 

35 basis points. An institution’s total assessment rate may be less than 

or greater than its initial base assessment rate as a result of additional 

risk adjustments.

The base assessment rates for small institutions in Risk Category I are 

based on a combination of financial ratios and CAMELS component 

ratings (the financial ratios method).

As required by Dodd-Frank, the calculation of risk-based assessment rates for large institutions no longer relies on long-term debt 

issuer ratings. Rates for large institutions are based on CAMELS 

ratings and certain forward-looking financial measures combined 

into two scorecards—one for most large institutions and another for 

the remaining very large institutions that are structurally and operationally complex or that pose unique challenges and risks in case of 

failure (highly complex institutions). In general, a highly complex 

institution is an institution (other than a credit card bank) with more 

than $500 billion in total assets that is controlled by a parent or intermediate parent company with more than $500 billion in total assets 

or a processing bank or trust company with total fiduciary assets of 

$500 billion or more. The FDIC retains its ability to take additional 

information into account to make a limited adjustment to an institution’s total score (the large bank adjustment), which will be used to 

determine an institution’s initial base assessment rate.

Effective April 1, 2011, the three possible adjustments to an institution’s initial base assessment rate are as follows: (1) Unsecured Debt 

Adjustment: An institution’s rate may decrease by up to 5 basis 

points for unsecured debt. The unsecured debt adjustment cannot 

exceed the lesser of 5 basis points or 50 percent of an institution’s 

initial base assessment rate (IBAR). Thus, for example, an institution with an IBAR of 5 basis points would have a maximum unsecured debt adjustment of 2.5 basis points and could not have a total 

base assessment rate lower than 2.5 basis points. (2) Depository 

Institution Debt Adjustment: For institutions that hold 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 small institutions that are not in Risk 

Category I and 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. After applying all possible adjustments (excluding 

the Depository Institution Debt Adjustment), minimum and maximum total base assessment rates for each risk category are as follows:

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

Large and 

Highly Complex 

Institutions

Initial base 

assessment rate 5–9 14 23 35 5–35

Unsecured debt 

adjustment -4.5–0 -5–0 -5–0 -5–0 -5–0

Brokered deposit 

adjustment — 0–10 0–10 0–10 0–10

Total Base 

Assessment rate 2.5–9 9–24 18–33 30–45 2.5–45

* All amounts for all categories are in basis points annually. Total base rates that 

are not the minimum or maximum rate will vary between these rates. Total base 

assessment rates do not include the depository institution debt adjustment.

Beginning in 2007, each institution is assigned a risk-based rate for 

a quarterly assessment period near the end of the quarter following 

the assessment period. Payment is generally due on the 30th day 

of the last month of the quarter following the assessment period. 

Supervisory rating changes are effective for assessment purposes as of 

the examination transmittal date.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special assessment as of June 30, 2009. The special assessment was levied on 

each insured depository institution’s assets minus its Tier 1 capital 

as reported in its report of condition as of June 30, 2009. The special assessment was collected September 30, 2009, at the same time 

that the risk-based assessment for the second quarter of 2009 was 

collected. The special assessment for any institution was capped at 

10 basis points of the institution’s assessment base for the second 

quarter of 2009 risk-based assessment.

Prepaid Deposit Insurance Assessments – In November 2009, 

the FDIC Board of Directors adopted a final rule requiring 

insured depository institutions (except those that are exempted) 

to prepay their quarterly risk-based deposit insurance assessments 

for the fourth quarter of 2009, and for all of 2010, 2011, and 2012, 

on December 30, 2009. For regulatory capital purposes, an institution may assign a zero-percent risk weight to the amount of its 

prepaid deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment program, this program ended with the final application of prepaid 

assessments to the quarterly deposit insurance assessments payable March 29, 2013. The FDIC issued refunds of any unused prepaid deposit insurance assessments on June 28, 2013.

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as 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,” 
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38 FDIC QUARTERLY

which are reported at amortized cost (book value), and securities designated as “available-for-sale,” reported at fair (market) value.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for 

income taxes. Thrift Financial Report (TFR) filers also include gains 

(losses) on the sales of assets held for sale. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have been 

securitized, except an interest that is a form of recourse or other 

seller-provided credit enhancement. Seller’s interests differ from 

the securities issued to investors by the securitization structure. The 

principal amount of a seller’s interest is generally equal to the total 

principal amount of the pool of assets included in the securitization 

structure less the principal amount of those assets attributable to 

investors, i.e., in the form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending Fund 

(SBLF) was enacted into law in September 2010 as part of the Small 

Business Jobs Act of 2010 to encourage lending to small businesses 

by providing capital to qualified community institutions with assets 

of less than $10 billion. The SBLF Program is administered by the 

U.S. Treasury Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx).

Under the SBLF Program, the Treasury Department purchased 

noncumulative perpetual preferred stock from qualifying depository 

institutions and holding companies (other than Subchapter S and 

mutual institutions). When this stock has been issued by a depository 

institution, it is reported as “Perpetual preferred stock and related 

surplus.” For regulatory capital purposes, this noncumulative 

perpetual preferred stock qualifies as a component of Tier 1 capital. 

Qualifying Subchapter S corporations and mutual institutions issue 

unsecured subordinated debentures to the Treasury Department 

through the SBLF. Depository institutions that issued these 

debentures report them as “Subordinated notes and debentures.” 

For regulatory capital purposes, the debentures are eligible for 

inclusion in an institution’s Tier 2 capital in accordance with their 

primary federal regulator’s capital standards. To participate in the 

SBLF Program, an institution with outstanding securities issued 

to the Treasury Department under the Capital Purchase Program 

(CPP) was required to refinance or repay in full the CPP securities 

at the time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP remain 

outstanding after the refinancing of the CPP stock through the SBLF 

Program unless the institution chooses to repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated 

as a pass-through entity, similar to a partnership, for federal income 

tax purposes. It is generally not subject to any federal income taxes at 

the corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings.

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the assets 

of the financial institution.

Unearned income & contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured 

by commercial real estate, and unused commitments to originate 

or purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.