FDIC Quarterly

Quarterly Banking Profile:

Second Quarter 2013

Highlights:

■ Earnings Rise 23 Percent to $42.2 Billion 

■ Lower Loss Provisions, Higher Trading Income Boost 

Net Income 

■ Noncurrent Loan Balances Decline by $21.7 Billion

■ Fund Balance Increases to $37.9 Billion 

■ DIF Reserve Ratio Rises 4 Basis Points to 0.63 Percent

2013, Volume 7, Number 3
Chairman Martin J. Gruenberg

Director, Division of Insurance Diane Ellis

  and Research

Executive Editors Richard A. Brown

Maureen E. Sweeney

Managing Editors Matthew Green

Jack Reidhill

Philip A. Shively

Editor Frank Solomon

Publication Manager Lynne Montgomery

Media Inquiries (202) 898-6993

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 

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2013, Volume 7, Number 3

FDIC Quarterly

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: Second Quarter 2013

FDIC-insured institutions reported aggregate net income of $42.2 billion in the second quarter of 2013, a 

$7.8 billion (22.6 percent) increase from the $34.4 billion in profits that the industry reported a year earlier. 

This is the 16th consecutive quarter that earnings have registered a year-over-year increase. Increased 

noninterest income, lower noninterest expenses, and reduced provisions for loan losses accounted for the 

increase in earnings from a year ago. Year-over-year earnings increased at more than half (53.8 percent) of 

the 6,940 insured institutions reporting financial results. The proportion of banks that were unprofitable fell 

to 8.2 percent, from 11.3 percent a year earlier. See page 1.

Insurance Fund Indicators

The Deposit Insurance Fund (DIF) increased by $2.1 billion during the second quarter to $37.9 billion. 

Estimated insured deposits decreased by 0.8 percent during the second quarter. The DIF reserve ratio was 

0.63 percent on June 30, 2013, up from 0.59 percent at March 31, 2013. Twelve FDIC-insured institutions 

failed during the quarter. See page 15.

FDIC Quarterly 1 2013, Volume 7, No. 3

Quarterly Banking Profile Second Quarter 2013

Earnings Rise for Sixteenth Consecutive Quarter

Rising noninterest income and falling loan loss 

expenses continued to lift bank earnings in the 

second quarter. FDIC-insured institutions reported 

net income of $42.2 billion, an increase of $7.8 

billion (22.6 percent) compared with second quarter 

2012 when industry earnings were reduced by losses 

on credit derivatives. This is the 16th consecutive 

quarter that earnings have registered a year-over-year 

increase. For a second consecutive quarter, industry 

earnings reached a new nominal high. However, the 

quarterly return on assets (ROA) of 1.17 percent, 

while up from 0.99 percent a year ago, remained 

below the 1.27 percent average for the industry from 

2000 through 2006. More than half of all banks—

53.8 percent—reported higher quarterly net income 

than a year ago, and only 8.2 percent reported negative net income. This is the lowest proportion of 

unprofitable institutions since third quarter 2006.

Noninterest Income Growth Outweighs Drop in 

Net Interest Income

Net operating revenue—the sum of net interest income 

and total noninterest income—totaled $170.6 billion, 

an increase of $4.9 billion (3 percent) from a year ago. 

Noninterest income was $6.7 billion (11.1 percent) 

higher than in second quarter 2012. Income from trading rose by $5.1 billion (238.3 percent) compared with a 

year ago, when the industry reported a net loss on credit 

derivatives. Net gains on sales of loans and other assets 

were $1.9 billion (63.7 percent) above the level of a year 

earlier. For the third quarter in a row and fourth time in 

the last five quarters, net interest income posted a yearover-year decline, falling by $1.8 billion (1.7 percent) as 

interest income from loans and other investments 

declined faster than interest expense on deposits and 

other liabilities. Banks set aside $8.6 billion in provisions for loan losses during the quarter, a $5.6 billion 

(39.6 percent) reduction from a year earlier. This is the 

lowest quarterly loss provision for the industry since 

third quarter 2006, when quarterly provisions totaled 

$7.6 billion. Total noninterest expense was $1.4 billion 

(1.4 percent) lower than in second quarter 2012, when 

industry expenses were elevated by restructuring charges. 

■ Earnings Rise 23 Percent to $42.2 Billion

■ Lower Loss Provisions, Higher Trading Income Boost Net Income

■ Noncurrent Loan Balances Decline by $21.7 Billion

■ Number of Insured Institutions Falls Below 7,000

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income

Billions of Dollars

Securities and Other Gains/Losses, Net

Net Operating Income

-$50

-$40

-$30

-$20

-$10

$0

$10

$20

$30

$40

$50

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

-6.1

-12.6

2009 2010

2.1

-1.7

17.4 20.9 23.8 21.4

28.7

2011

28.5

35.2

25.3

34.8

2012

34.4 37.5 34.5

2013

40.3 42.2

Chart 1 Chart 2

Unprotable Institutions and Institutions

With Increased Earnings

Percentage of All Insured Institutions

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011 2012 2013

Percentage of Institutions With Year-Over-Year

Quarterly Income Growth 

Percentage of Institutions With Quarterly Losses
FDIC Quarterly 2 2013, Volume 7, No. 3

Chart 4

Quarterly Net Interest Margins

Percent

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2006 2007 2008 2009 2010 2011 2012 2013

Assets < $1 Billion

Assets $1 Billion - $10 Billion

Assets $10 Billion - $100 Billion

Assets > $100 Billion

Loan Losses Fall to Lowest Level Since 2007

Net loan and lease charge-offs totaled $14.2 billion, a 

$6.3 billion (30.7 percent) year-over-year decline. 

This is the smallest quarterly total since third quarter 

2007. While charge-offs were down across all major 

loan categories, the overall decline was led by residential real estate loans. Charge-offs of home equity lines 

of credit were $1.1 billion (41.7 percent) below the 

level of a year ago, while charge-offs of other loans 

secured by 1-to-4 family residential properties were 

$1.4 billion (32.1 percent) lower. Smaller reductions 

occurred in charge-offs of real estate construction and 

land loans (down $772 million, or 67 percent), real 

estate loans secured by nonfarm nonresidential properties (down $775 million, or 52.5 percent), commercial 

and industrial loans (down $760 million, or 37.3 

percent), and credit cards (down $748 million, or 

11 percent). 

Noncurrent Loans Post Thirteenth Consecutive 

Quarterly Decline

Noncurrent loan levels also showed improvement 

across all major loan categories. The amount of loans 

and leases that were 90 days or more past due or in 

nonaccrual status fell by $21.7 billion (8.3 percent) 

during the second quarter, marking the 13th consecutive quarter that noncurrent balances have declined. 

Noncurrent first lien mortgage loans declined by $13.3 

billion (8.2 percent), while noncurrent real estate 

construction and land loans dropped by $2.8 billion 

(19.1 percent), and noncurrent real estate loans secured 

by nonfarm nonresidential properties fell by $2.5 billion 

(8.8 percent). During the quarter, the percentage of 

total loans and leases that were noncurrent declined 

from 3.41 percent to 3.09 percent, the lowest level 

since fourth quarter 2008. 

Reserve Coverage of Troubled Loans Improves

For the 13th quarter in a row, the banking industry’s 

reserves for loan losses posted a quarterly decline. 

Between the end of March and the end of June, total 

reserves fell by $6.4 billion (4.1 percent), as net chargeoffs removed $14.2 billion from reserves and loan-loss 

provisions added only $8.6 billion to reserves. As has 

been typically the case, most of the reduction in 

reserves occurred at large institutions, but quarterly 

charge-offs exceeded loss provisions at almost 40 

percent of all banks in the quarter. Even with the 

reserve reductions, the industry’s coverage ratio of 

reserves to noncurrent loans rose from 59.6 percent to 

62.3 percent during the quarter because of the sizable 

decline in noncurrent loan balances.

Lower Securities Values Lead to a Decline in 

Equity Capital

Equity capital of insured institutions declined by $14 

billion (0.9 percent), largely due to declines in the 

market values of securities caused by rising mediumand long-term interest rates. Higher interest rates 

were primarily responsible for a $51.1 billion drop in 

Chart 3

Quarterly Revenue and Loan-Loss Provision

Billions of Dollars

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

1234123412341234 1 2

2009 2010

* Net operating revenue = net interest income + noninterest income.

2011 2012 2013 

Quarterly Net Operating Revenue*

Quarterly Loan-Loss Provision
FDIC Quarterly 3 2013, Volume 7, No. 3

Quarterly Banking Profile

unrealized gains on banks’ available-for-sale investment 

securities. Under Generally Accepted Accounting 

Principles (GAAP), changes in unrealized gains are 

reflected in equity capital. However, they are not 

reflected in regulatory capital. The industry’s Tier 1 

leverage capital increased by $17.1 billion (1.3 percent) 

during the quarter, while total risk-based capital rose by 

$15 billion (1 percent). Retained earnings totaled 

$21.3 billion in the second quarter, up from $14.9 

billion in second quarter 2012. At the end of the quarter, almost 98 percent of all insured institutions, representing 99.7 percent of total industry assets, met or 

exceeded the requirements for the highest regulatory 

capital category, as defined for Prompt Corrective 

Action purposes.

Total Assets Fall by $14.8 Billion

For a second consecutive quarter, total industry assets 

posted a modest decline, falling by $14.8 billion (0.1 

percent). Assets in trading accounts declined by $65.7 

billion (9.1 percent), as balances of securities held for 

trading declined by $44.4 billion (14.6 percent). Trading securities are reported at market value, so it is 

likely that some of this decline was caused by the rise 

in medium- and long-term interest rates during the 

quarter. Balances of securities held in investment 

accounts declined by $53.2 billion (1.8 percent), due 

primarily to the $51.1 billion drop in unrealized gains 

noted above. 

Loan Balances Rise by $73.8 Billion

Total loans and leases increased by $73.8 billion 

(1 percent), as commercial and industrial loan balances 

grew by $30.4 billion (2 percent), real estate loans 

secured by nonfarm nonresidential real estate properties 

rose by $11.1 billion (1 percent), auto loans increased 

by $10 billion (3.1 percent), and credit card balances 

grew by $10.1 billion (1.5 percent). Balances of 1-to-4 

family residential real estate loans declined by $31.9 

billion (1.3 percent), with home equity lines falling by 

$9.8 billion (1.8 percent), and other 1-to-4 family residential real estate loans declining by $22.1 billion 

(1.2 percent). 

FHLB Borrowings Increase

Total liabilities of insured institutions registered a 

small $457 million decline in the second quarter. 

Deposit balances fell by $38.7 billion (0.4 percent), 

while Federal Home Loan Bank (FHLB) advances 

increased by $38.2 billion (11.6 percent). Most of the 

increase in FHLB borrowings—$34.6 billion—

consisted of borrowings maturing in one year or less. 

Interest-bearing deposits in domestic offices declined 

by $44.4 billion (0.6 percent), while balances in 

noninterest-bearing accounts rose by $13.4 billion 

(0.5 percent). Foreign office deposits declined by 

$7.7 billion (0.6 percent).

Chart 5

Noncurrent Loans and Loan Losses Continue to Fall

but Remain Well Above Pre-Crisis Levels 

Percent

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013

Noncurrent Loan Rate

Quarterly Net Charge-Off Rate

Chart 6

Quarterly Change in Loan Balances

Billions of Dollars

43

189

237

203

61

28

-6

-116-140

-109

-210

-133

-107

-7 -14

-126

67

24

-63

102

65

118

-37

74

221*

134

-$250

-$200

-$150

-$100

-$50

$0

$50

$100

$150

$200

$250

$300

1234123412341234123412341 2

2007 2008 2009 2010

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

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

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

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

2011 2012 2013
FDIC Quarterly 4 2013, Volume 7, No. 3

The Number of “Problem” Banks Falls Below 600

The number of FDIC-insured institutions filing quarterly Call Reports declined to 6,940 at mid-year, from 

7,019 at the end of the first quarter. During the second 

quarter, 62 insured institutions were merged into other 

institutions and 12 failed. For the eighth consecutive 

quarter, no new reporting institutions were added. The 

last de novo charter occurred in fourth quarter 2010. 

The number of institutions on the FDIC’s “Problem 

List” declined for a ninth consecutive quarter, from 612 

to 553. Total assets of “problem” banks fell from $213.3 

billion to $192.5 billion. Insured institutions reported 

2,097,292 full-time equivalent employees in the second 

quarter, down 5,544 from the previous quarter, and 

10,900 fewer than in second quarter 2012.

Author: Ross Waldrop, Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

Chart 9

Noninterest-Bearing Deposits in Domestic Ofces

Trillions of Dollars

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1234 1 2 3412 341234 12341 2341 2

2007 2008 2009 2010 2011 2012 2013

Noninterest-Bearing Transaction Balances > $250,000

All Other Domestic Noninterest-Bearing Deposits

Chart 7

Long-Term Assets as a Share of Total Assets*

Percent of Total Assets

0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

*Long-term assets = assets > 5 years. Call Report filers only.

Chart 10

Quarterly Changes in the Number of

Troubled Institutions

27

81

53 73 54 31 24

50 45

41

45

41

30

26 22 26 18 16 15 12 8 12 14

54 2

2

9

12

21

24

4

-75

-50

-25

0

25

50

75

100

125

150

175

200

123412341234123412341 2

2008 2009 2010 2011 2012 2013

-23 -21 -31 -41 -40 -38 -43 -23 -21 -31 -41 -40 -38 -43 -39 -59

111

136

150

4

Quarterly Failures

Net Quarterly Change in

Number of Problem Banks

Chart 8

Unrealized Gains/Losses on Available-for-Sale Securities

FDIC-Insured Call Report Filers* Billions of Dollars

-19

-43

-63

-56

-41

-29

13 7

18

36 42

18

34

45 42 47 54

73

57

6

17

66

-$80

-$60

-$40

-$20

$0

$20

$40

$60

$80

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

2008 2009 2010

*Prior to 2012, does not include data for insured savings institutions that file Thrift 

Financial Reports (TFRs). Beginning in 2012, all insured institutions file Call Reports.

2011 2012 2013
FDIC Quarterly 5 2013, Volume 7, No. 3

Quarterly Banking Profile

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2013** 2012** 2012 2011 2010 2009 2008

Return on assets (%)������������������������������������������������������������������������������������������������������ 1.15 0.99 1.00 0.88 0.65 -0.

Return on equity (%)������������������������������������������������������������������������������������������������������� 10.22 8.84 8.91 7.79 5.85 -0.

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 9.34 9.25 9.15 9.07 8.89 8.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 1.90 2.40 2.20 2.60 3.11 3.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 0.78 1.13 1.10 1.55 2.55 2.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 2.70 3.15 4.02 4.30 1.77 -5.

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.27 3.48 3.42 3.60 3.76 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 22.89 14.18 17.80 43.58 1594.73 -155.98

Number of institutions reporting������������������������������������������������������������������������������������� 6,940 7,245 7,083 7,357 7,658 8,012 8,305

Commercial banks��������������������������������������������������������������������������������������������������� 5,980 6,222 6,096 6,291 6,530 6,840 7,087

Savings institutions ������������������������������������������������������������������������������������������������� 960 1,023 987 1,066 1,128 1,172 1,218

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 8.16 10.89 10.89 16.22 22.15 30.8

Number of problem institutions �������������������������������������������������������������������������������������� 553 732 651 813 884 702 252

Assets of problem institutions (in billions) ��������������������������������������������������������������������� $192 $282 $233 $319 $390 $403 $159

Number of failed institutions������������������������������������������������������������������������������������������� 16 31 51 92 157 140 25

Number of assisted institutions�������������������������������������������������������������������������������������� 0 0 0 0 0 8 5

* Excludes insured branches of foreign banks (IBAs)

** Through June 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending June 3

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

(dollar figures in millions)  2nd Quarter

2013

1st Quarter

2013

2nd Quarter

2012

%Change 

12Q2-13Q2

Number of institutions reporting������������������������������������������������������������������������������������� 6,940 7,019 7,245 -4.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 2,097,292 2,102,836 2,108,192 -0.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $14,409,675 $14,424,502 $14,031,315 2.

Loans secured by real estate���������������������������������������������������������������������������������� 4,046,948 4,058,725 4,086,306 -1.

 1-4 Family residential mortgages �������������������������������������������������������������������� 1,855,206 1,877,257 1,874,709 -1.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 1,083,339 1,072,289 1,058,370 2.

 Construction and development 202,491 201,594 217,397 -6.

 Home equity lines��������������������������������������������������������������������������������������������� 528,652 538,501 580,601 -8.

Commercial & industrial loans �������������������������������������������������������������������������������� 1,563,227 1,532,786 1,423,307 9.

Loans to individuals������������������������������������������������������������������������������������������������� 1,310,290 1,291,638 1,282,444 2.

 Credit cards ������������������������������������������������������������������������������������������������������ 670,283 660,218 664,734 0.

Farm loans��������������������������������������������������������������������������������������������������������������� 65,079 59,837 64,010 1.

Other loans & leases����������������������������������������������������������������������������������������������� 748,975 717,871 659,291 13.

Less: Unearned income ������������������������������������������������������������������������������������������ 1,831 1,926 2,042 -10.

Total loans & leases ������������������������������������������������������������������������������������������������ 7,732,687 7,658,931 7,513,315 2.

Less: Reserve for losses����������������������������������������������������������������������������������������� 149,043 155,466 176,597 -15.

Net loans and leases����������������������������������������������������������������������������������������������� 7,583,644 7,503,465 7,336,718 3.

Securities����������������������������������������������������������������������������������������������������������������� 2,945,355 2,998,536 2,937,399 0.

Other real estate owned������������������������������������������������������������������������������������������ 32,615 35,893 41,749 -21.

Goodwill and other intangibles ������������������������������������������������������������������������������� 371,516 367,040 366,713 1.

All other assets�������������������������������������������������������������������������������������������������������� 3,476,546 3,519,568 3,348,735 3.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 14,409,675 14,424,502 14,031,315 2.

Deposits������������������������������������������������������������������������������������������������������������������� 10,780,493 10,819,218 10,322,536 4.

 Domestic office deposits���������������������������������������������������������������������������������� 9,395,551 9,426,586 8,913,731 5.

 Foreign office deposits������������������������������������������������������������������������������������� 1,384,942 1,392,632 1,408,805 -1.

Other borrowed funds ��������������������������������������������������������������������������������������������� 1,328,763 1,300,318 1,390,005 -4.

Subordinated debt��������������������������������������������������������������������������������������������������� 113,621 116,075 116,634 -2.

All other liabilities ���������������������������������������������������������������������������������������������������� 559,612 547,333 595,006 -5.

Total equity capital (includes minority interests)���������������������������������������������������� 1,627,187 1,641,557 1,607,133 1.

 Bank equity capital������������������������������������������������������������������������������������������� 1,612,371 1,626,394 1,588,810 1.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 75,429 80,031 83,874 -10.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 239,323 261,006 292,964 -18.

Restructured loans and leases �������������������������������������������������������������������������������������� 102,091 105,819 106,663 -4.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 1,678,439 1,698,273 1,713,698 -2.

Earning assets���������������������������������������������������������������������������������������������������������������� 12,704,468 12,753,203 12,272,406 3.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 368,399 330,183 325,850 13.

Unused loan commitments��������������������������������������������������������������������������������������������� 5,994,947 5,927,576 5,805,908 3.

Trust assets��������������������������������������������������������������������������������������������������������������������� 17,992,424 18,134,329 16,664,683 8.

Assets securitized and sold ������������������������������������������������������������������������������������������� 765,368 811,651 988,944 -22.

Notional amount of derivatives��������������������������������������������������������������������������������������� 236,526,457 232,672,271 225,035,729 5.

INCOME DATA First Half 2013 First Half 2012 %Change

2nd Quarter 

2013

2nd Quarter 

2012

%Change 

12Q2-13Q2

Total interest income ������������������������������������������������������������������� $235,235 $246,591 -4.6 $117,293 $122,488 -4

Total interest expense ����������������������������������������������������������������� 27,773 34,846 -20.3 13,608 17,051 -20

Net interest income �������������������������������������������������������������� 207,462 211,745 -2.0 103,685 105,437 -1

Provision for loan and lease losses �������������������������������������������� 19,608 28,543 -31.3 8,600 14,227 -39

Total noninterest income������������������������������������������������������������� 133,352 121,605 9.7 66,867 60,182 11

Total noninterest expense����������������������������������������������������������� 204,004 209,801 -2.8 101,991 103,408 -1

Securities gains (losses)������������������������������������������������������������� 3,436 5,549 -38.1 1,368 2,536 -46

Applicable income taxes ������������������������������������������������������������� 37,571 30,873 21.7 18,835 15,734 19

Extraordinary gains, net�������������������������������������������������������������� -91 -12 N/M -32 -126 N/M

Total net income (includes minority interests)��������������������� 82,976 69,669 19.1 42,463 34,658 22

 Bank net income������������������������������������������������������������ 82,549 69,290 19.1 42,235 34,449 22

Net charge-offs���������������������������������������������������������������������������� 30,133 42,202 -28.6 14,167 20,450 -30

Cash dividends ���������������������������������������������������������������������������� 35,346 40,481 -12.7 20,947 19,540 7

Retained earnings ����������������������������������������������������������������������� 47,203 28,809 63.9 21,288 14,910 42

Net operating income����������������������������������������������������������� 80,601 65,590 22.9 41,541 32,888 26

N/M - Not Meaningful
FDIC Quarterly 6 2013, Volume 7, No. 3

TABLE III-A. Second Quarter 2013, All FDIC-Insured Institutions

Asset Concentration Groups*

SECOND QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,940 16 4 1,521 3,455 603 47 416 809 69

Commercial banks������������������������������������� 5,980 14 4 1,501 3,123 167 36 376 703 56

Savings institutions ����������������������������������� 960 2 0 20 332 436 11 40 106 13

Total assets (in billions)������������������������������������ $14,409.7 $590.4 $3,645.4 $236.0 $4,625.4 $562.0 $103.9 $64.1 $143.

Commercial banks������������������������������������� 13,350.1 518.5 3,645.4 229.5 4,275.5 224.6 26.0 59.8 119

Savings institutions ����������������������������������� 1,059.5 71.9 0.0 6.5 350.0 337.4 77.9 4.3 

Total deposits (in billions)��������������������������������� 10,780.5 324.3 2,522.1 196.4 3,623.5 419.9 86.7 51.7 121

Commercial banks������������������������������������� 9,973.5 276.6 2,522.1 192.4 3,363.7 172.6 19.9 48.7 101

Savings institutions ����������������������������������� 807.0 47.7 0.0 4.1 259.8 247.3 66.8 3.0 

Bank net income (in millions) ��������������������������� 42,235 4,857 9,329 717 12,688 1,483 436 295 347 12,083

Commercial banks������������������������������������� 38,892 3,921 9,329 685 11,797 813 170 165 290 11,722

Savings institutions ����������������������������������� 3,343 936 0 32 890 671 266 129 58 360

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������ 3.69 10.17 2.84 4.15 4.02 3.57 4.65 3.00

Cost of funding earning assets ������������������������ 0.43 0.74 0.44 0.57 0.47 0.72 0.75 0.45

Net interest margin������������������������������������ 3.26 9.42 2.40 3.58 3.56 2.85 3.90 2.55

Noninterest income to assets��������������������������� 1.86 4.33 2.02 0.66 1.43 1.17 2.57 4.56

Noninterest expense to assets������������������������� 2.83 5.76 2.51 2.48 2.94 2.28 3.11 4.47

Loan and lease loss provision to assets���������� 0.24 2.01 0.10 0.12 0.22 0.07 0.53 0.07

Net operating income to assets ����������������������� 1.15 3.30 1.01 1.18 1.08 1.03 1.67 1.73

Pretax return on assets ������������������������������������ 1.70 5.16 1.49 1.40 1.48 1.53 2.64 2.44

Return on assets����������������������������������������������� 1.17 3.28 1.03 1.21 1.10 1.07 1.68 1.80

Return on equity ����������������������������������������������� 10.44 21.84 11.52 10.88 9.31 9.42 17.35 12.41

Net charge-offs to loans and leases���������������� 0.74 3.46 1.05 0.14 0.46 0.41 1.07 0.45

Loan and lease loss provision to 

net charge-offs ������������������������������������������ 60.70 75.51 28.13 147.27 71.90 27.00 73.29 55.76 7

Efficiency ratio �������������������������������������������������� 58.76 42.80 60.64 62.03 62.92 59.11 48.78 64.54 7

% of unprofitable institutions���������������������������� 8.16 0.00 0.00 3.35 9.93 10.78 2.13 11.54

% of institutions with earnings gains���������������� 53.76 75.00 100.00 47.47 59.25 45.44 42.55 47.60 5

Structural Changes

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

Institutions absorbed by mergers ������������� 62 0 0 9 42 3 0 1 5 2

Failed institutions �������������������������������������� 12 0 0 0 10 0 0 0 2 0

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%)��������������������������������2012 0.99 2.97 0.72 1.27 0.96 0.85 1.82 1.07

��������������������������������������2010 0.63 1.45 1.00 1.03 0.18 0.66 1.26 1.57

������������������������������������� 2008 0.14 2.39 0.26 1.17 0.24 -1.46 0.82 1.85

Net charge-offs to loans & leases (%) �����2012 1.10 4.02 1.37 0.23 0.75 0.64 1.53 0.55

��������������������������������������2010 2.68 11.59 2.04 0.65 1.97 1.15 2.20 0.60

������������������������������������� 2008 1.32 5.87 1.27 0.26 1.00 1.82 1.75 0.66

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

Note: Blue font identifies data that are also presented in the prior quarters data at bottom of table
FDIC Quarterly 7 2013, Volume 7, No. 3

Quarterly Banking Profile

TABLE III-A. Second Quarter 2013, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

SECOND QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,940 2,141 4,146 546 107 858 884 1,483 1,686 1,468 561

Commercial banks������������������������������������������� 5,980 1,898 3,556 438 88 467 796 1,230 1,610 1,369 508

Savings institutions ����������������������������������������� 960 243 590 108 19 391 88 253 76 99 53

Total assets (in billions)������������������������������������������ $14,409.7 $124.8 $1,256.8 $1,413.9 $11,614.1 $2,859.5 $2,980.3 $3,344.8 $3,082.9 $867

Commercial banks������������������������������������������� 13,350.1 111.1 1,050.6 1,143.0 11,045.4 2,401.0 2,894.0 3,230.6 3,024.2 76

Savings institutions ����������������������������������������� 1,059.5 13.7 206.2 270.9 568.7 458.5 86.3 114.2 58.7 

Total deposits (in billions)��������������������������������������� 10,780.5 106.1 1,052.7 1,101.8 8,520.0 2,107.0 2,280.0 2,355.4 2,361.1 

Commercial banks������������������������������������������� 9,973.5 95.2 886.8 896.8 8,094.6 1,770.5 2,215.5 2,268.6 2,313.9 

Savings institutions ����������������������������������������� 807.0 10.9 165.8 205.0 425.4 336.5 64.5 86.8 47.3

Bank net income (in millions) ��������������������������������� 42,235 246 2,973 4,494 34,521 7,886 7,667 9,329 9,817 2,532 5,004

Commercial banks������������������������������������������� 38,892 226 2,555 3,697 32,413 7,001 7,486 8,958 9,710 2,103 3,634

Savings institutions ����������������������������������������� 3,343 20 418 796 2,108 885 181 371 107 429 1,370

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������������ 3.69 4.17 4.22 4.30 3.55 4.00 3.68 2.90 3.9

Cost of funding earning assets ������������������������������ 0.43 0.56 0.59 0.53 0.40 0.47 0.37 0.38 0.4

Net interest margin������������������������������������������ 3.26 3.61 3.63 3.77 3.15 3.54 3.31 2.52 3.4

Noninterest income to assets��������������������������������� 1.86 1.05 1.15 1.40 2.00 1.67 1.74 2.15 1.8

Noninterest expense to assets������������������������������� 2.83 3.31 3.17 3.07 2.76 2.81 2.97 2.72 2.7

Loan and lease loss provision to assets���������������� 0.24 0.14 0.19 0.16 0.25 0.41 0.23 0.09 0.2

Net operating income to assets ����������������������������� 1.15 0.76 0.90 1.25 1.17 1.08 0.99 1.10 1.2

Pretax return on assets ������������������������������������������ 1.70 0.92 1.19 1.64 1.77 1.61 1.47 1.57 1.8

Return on assets����������������������������������������������������� 1.17 0.78 0.94 1.28 1.19 1.11 1.02 1.12 1.2

Return on equity ����������������������������������������������������� 10.44 6.60 8.64 10.81 10.63 9.07 8.33 12.21 11.69 

Net charge-offs to loans and leases���������������������� 0.74 0.36 0.37 0.43 0.84 1.02 0.70 0.48 0.9

Loan and lease loss provision to 

net charge-offs ������������������������������������������������ 60.70 73.72 81.02 59.14 59.56 76.02 56.60 39.27 50.32 

Efficiency ratio �������������������������������������������������������� 58.76 76.02 70.28 62.77 56.91 57.23 63.49 61.85 54.47 

% of unprofitable institutions���������������������������������� 8.16 12.47 6.85 2.56 0.93 8.74 13.01 9.10 4.98

% of institutions with earnings gains���������������������� 53.76 49.18 54.58 62.82 67.29 51.63 60.41 51.85 50.12 

Structural Changes

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

Institutions absorbed by mergers ������������������� 62 26 28 6 2 7 4 18 11 11 11

Failed institutions �������������������������������������������� 12 7 5 0 0 0 6 2 0 1 3

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%)��������������������������������������2012 0.99 0.67 0.80 1.42 0.96 0.85 0.72 0.90 1.0

��������������������������������������������2010 0.63 0.52 0.24 0.12 0.75 0.75 0.15 0.75 0.7

������������������������������������������� 2008 0.14 0.58 0.53 0.25 0.07 0.76 0.16 0.11 0.91

Net charge-offs to loans & leases (%) �����������2012 1.10 0.44 0.66 0.76 1.22 1.34 1.11 0.84 1.3

��������������������������������������������2010 2.68 0.71 1.14 1.93 3.08 4.09 2.56 1.91 2.9

������������������������������������������� 2008 1.32 0.30 0.47 1.00 1.53 1.30 1.14 1.27 1.3

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

Note: Blue font identifies data that are also presented in the prior quarters data at bottom of table
FDIC Quarterly 8 2013, Volume 7, No. 3

TABLE IV-A. First Half 2013, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST HALF

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,940 16 4 1,521 3,455 603 47 416 809 69

Commercial banks������������������������������������� 5,980 14 4 1,501 3,123 167 36 376 703 56

Savings institutions ����������������������������������� 960 2 0 20 332 436 11 40 106 13

Total assets (in billions)������������������������������������ $14,409.7 $590.4 $3,645.4 $236.0 $4,625.4 $562.0 $103.9 $64.1 $143.

Commercial banks������������������������������������� 13,350.1 518.5 3,645.4 229.5 4,275.5 224.6 26.0 59.8 119

Savings institutions ����������������������������������� 1,059.5 71.9 0.0 6.5 350.0 337.4 77.9 4.3 

Total deposits (in billions)��������������������������������� 10,780.5 324.3 2,522.1 196.4 3,623.5 419.9 86.7 51.7 121

Commercial banks������������������������������������� 9,973.5 276.6 2,522.1 192.4 3,363.7 172.6 19.9 48.7 101

Savings institutions ����������������������������������� 807.0 47.7 0.0 4.1 259.8 247.3 66.8 3.0 

Bank net income (in millions) ��������������������������� 82,549 9,482 18,019 1,388 23,674 2,791 821 571 682 25,122

Commercial banks������������������������������������� 76,462 7,964 18,019 1,328 22,068 1,461 339 325 571 24,388

Savings institutions ����������������������������������� 6,087 1,518 0 59 1,606 1,331 482 247 111 734

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������ 3.71 10.18 2.91 4.12 4.03 3.59 4.70 2.99

Cost of funding earning assets ������������������������ 0.44 0.76 0.46 0.58 0.48 0.73 0.76 0.46

Net interest margin������������������������������������ 3.27 9.42 2.45 3.54 3.55 2.86 3.94 2.53

Noninterest income to assets��������������������������� 1.85 4.17 1.94 0.64 1.38 1.14 2.49 4.49

Noninterest expense to assets������������������������� 2.83 5.65 2.52 2.47 2.93 2.30 3.11 4.45

Loan and lease loss provision to assets���������� 0.27 2.12 0.14 0.11 0.23 0.13 0.63 0.07

Net operating income to assets ����������������������� 1.12 3.21 0.96 1.14 1.00 0.96 1.59 1.66

Pretax return on assets ������������������������������������ 1.67 5.01 1.46 1.36 1.43 1.45 2.52 2.38

Return on assets����������������������������������������������� 1.15 3.19 1.00 1.17 1.03 1.01 1.60 1.74

Return on equity ����������������������������������������������� 10.22 21.45 11.16 10.51 8.71 8.92 16.57 11.43

Net charge-offs to loans and leases���������������� 0.78 3.46 1.12 0.12 0.49 0.42 1.13 0.44

Loan and lease loss provision to 

net charge-offs ������������������������������������������ 65.07 78.90 35.30 149.72 71.57 49.53 81.17 55.97 8

Efficiency ratio �������������������������������������������������� 58.80 42.45 61.21 62.77 63.44 59.74 48.91 65.11 7

% of unprofitable institutions���������������������������� 8.16 0.00 25.00 2.96 9.93 10.78 0.00 11.78

% of institutions with earnings gains���������������� 53.16 75.00 50.00 46.29 59.51 45.61 57.45 43.75 4

Condition Ratios (%)

Earning assets to total assets �������������������������� 88.17 91.60 86.18 92.51 89.33 93.54 94.86 91.60 9

Loss allowance to:

Loans and leases �������������������������������������� 1.93 3.83 2.66 1.52 1.66 1.33 1.74 1.95

Noncurrent loans and leases �������������������� 62.28 325.52 79.33 128.53 74.14 40.70 141.39 84.94 7

Noncurrent assets plus

other real estate owned to assets������������� 1.90 0.92 1.28 1.03 1.95 2.30 0.89 0.99

Equity capital ratio�������������������������������������������� 11.19 15.10 8.87 11.01 11.78 11.23 9.84 14.43 1

Core capital (leverage) ratio ���������������������������� 9.34 13.32 7.41 10.28 10.14 10.46 9.67 13.43 

Tier 1 risk-based capital ratio��������������������������� 13.00 15.20 11.52 14.82 12.85 20.62 13.62 31.71 1

Total risk-based capital ratio ���������������������������� 14.93 17.46 13.95 15.95 14.53 21.74 14.71 32.74 2

Net loans and leases to deposits��������������������� 70.35 136.53 49.23 72.61 84.59 79.99 80.37 34.03 6

Net loans to total assets ���������������������������������� 52.63 75.00 34.06 60.43 66.27 59.77 67.02 27.43 5

Domestic deposits to total assets �������������������� 65.20 52.16 41.36 83.23 77.23 74.58 83.37 80.55 8

Structural Changes

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

Institutions absorbed by mergers ������������� 117 0 0 17 79 5 0 1 10 5

Failed institutions �������������������������������������� 16 0 0 0 14 0 0 0 2 0

PRIOR FIRST HALVES

(The way it was...)

Number of institutions ������������������������������2012 7,245 18 5 1,542 3,637 711 50 402 815 65

��������������������������������������2010 7,830 21 4 1,579 4,267 744 84 293 776 62

������������������������������������� 2008 8,451 27 6 1,585 4,788 844 98 306 754 43

Total assets (in billions)����������������������������2012 $14,031.3 $567.7 $3,710.9 $220.4 $4,161.7 $823.7 $96.9 $64.5 $144.

��������������������������������������2010 13,199.5 698.2 3,059.4 189.0 4,357.9 794.5 97.1 38.1 124

������������������������������������� 2008 13,300.4 450.1 2,980.5 165.7 5,362.4 1,376.1 71.3 32.8 98

Return on assets (%)��������������������������������2012 0.99 3.14 0.76 1.27 0.90 0.84 1.81 1.18

��������������������������������������2010 0.59 1.14 0.87 1.00 0.20 0.72 1.37 1.46

������������������������������������� 2008 0.36 3.49 0.31 1.18 0.51 -0.84 1.04 2.30

Net charge-offs to loans & leases (%) �����2012 1.13 4.08 1.43 0.20 0.76 0.80 1.54 0.37

��������������������������������������2010 2.78 13.44 2.40 0.53 1.89 1.19 2.39 0.55

������������������������������������� 2008 1.16 5.38 1.20 0.21 0.86 1.48 1.72 0.46

Noncurrent assets plus 

OREO to assets (%) ��������������������������2012 2.40 1.12 1.47 1.33 2.64 2.29 1.34 1.20

��������������������������������������2010 3.33 2.25 2.60 1.71 3.90 3.17 1.05 0.79

������������������������������������� 2008 1.41 1.67 0.86 1.06 1.69 2.56 0.80 0.27

Equity capital ratio (%)������������������������������2012 11.32 14.75 9.04 11.49 11.90 10.75 9.69 14.67 1

��������������������������������������2010 11.11 14.20 9.27 11.33 10.99 10.02 10.64 18.38 1

������������������������������������� 2008 10.16 21.98 7.86 10.94 11.31 7.90 9.39 20.93 

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

Note: Blue font identifies data that are also presented in the prior years data at bottom of table
FDIC Quarterly 9 2013, Volume 7, No. 3

Quarterly Banking Profile

TABLE IV-A. First Half 2013, All FDIC-Insured Institutions

Asset Size Distribution Geographic Regions*

FIRST HALF

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,940 2,141 4,146 546 107 858 884 1,483 1,686 1,468 561

Commercial banks������������������������������������������� 5,980 1,898 3,556 438 88 467 796 1,230 1,610 1,369 508

Savings institutions ����������������������������������������� 960 243 590 108 19 391 88 253 76 99 53

Total assets (in billions)������������������������������������������ $14,409.7 $124.8 $1,256.8 $1,413.9 $11,614.1 $2,859.5 $2,980.3 $3,344.8 $3,082.9 $867

Commercial banks������������������������������������������� 13,350.1 111.1 1,050.6 1,143.0 11,045.4 2,401.0 2,894.0 3,230.6 3,024.2 76

Savings institutions ����������������������������������������� 1,059.5 13.7 206.2 270.9 568.7 458.5 86.3 114.2 58.7 

Total deposits (in billions)��������������������������������������� 10,780.5 106.1 1,052.7 1,101.8 8,520.0 2,107.0 2,280.0 2,355.4 2,361.1 

Commercial banks������������������������������������������� 9,973.5 95.2 886.8 896.8 8,094.6 1,770.5 2,215.5 2,268.6 2,313.9 

Savings institutions ����������������������������������������� 807.0 10.9 165.8 205.0 425.4 336.5 64.5 86.8 47.3

Bank net income (in millions) ��������������������������������� 82,549 481 5,763 8,386 67,919 14,007 16,235 18,393 19,388 4,934 9,592

Commercial banks������������������������������������������� 76,462 439 4,941 6,873 64,210 12,379 15,922 17,698 19,125 4,135 7,203

Savings institutions ����������������������������������������� 6,087 43 822 1,512 3,709 1,628 313 695 264 799 2,389

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������������ 3.71 4.17 4.21 4.30 3.57 4.00 3.67 2.93 4.0

Cost of funding earning assets ������������������������������ 0.44 0.58 0.60 0.54 0.40 0.47 0.38 0.38 0.4

Net interest margin������������������������������������������ 3.27 3.59 3.61 3.76 3.16 3.53 3.29 2.55 3.5

Noninterest income to assets��������������������������������� 1.85 1.02 1.13 1.35 2.00 1.59 1.94 2.09 1.7

Noninterest expense to assets������������������������������� 2.83 3.30 3.16 3.06 2.76 2.80 2.99 2.73 2.7

Loan and lease loss provision to assets���������������� 0.27 0.14 0.19 0.19 0.29 0.42 0.26 0.11 0.3

Net operating income to assets ����������������������������� 1.12 0.73 0.87 1.15 1.15 0.95 1.05 1.07 1.2

Pretax return on assets ������������������������������������������ 1.67 0.90 1.16 1.57 1.74 1.54 1.58 1.52 1.8

Return on assets����������������������������������������������������� 1.15 0.76 0.92 1.19 1.17 0.98 1.07 1.11 1.2

Return on equity ����������������������������������������������������� 10.22 6.41 8.35 10.15 10.48 8.04 8.80 12.12 11.59 

Net charge-offs to loans and leases���������������������� 0.78 0.31 0.35 0.42 0.90 1.07 0.76 0.52 1.0

Loan and lease loss provision to 

net charge-offs ������������������������������������������������ 65.07 80.26 85.62 71.53 63.50 73.78 60.02 46.75 59.33 

Efficiency ratio �������������������������������������������������������� 58.80 76.53 70.67 63.46 56.86 57.90 61.43 62.64 54.79 

% of unprofitable institutions���������������������������������� 8.16 12.38 6.78 3.30 1.87 9.79 13.12 9.37 4.98

% of institutions with earnings gains���������������������� 53.16 47.97 54.20 63.37 64.49 50.58 62.33 52.12 49.11 

Condition Ratios (%)

Earning assets to total assets ��������������������������������� 88.17 91.50 92.10 91.08 87.35 88.12 86.60 87.27 88.01 

Loss allowance to:

Loans and leases ��������������������������������������������� 1.93 1.73 1.70 1.69 2.00 1.85 1.83 2.08 2.2

Noncurrent loans and leases ��������������������������� 62.28 85.36 80.14 67.28 60.02 88.38 43.20 63.61 60.48 7

Noncurrent assets plus

other real estate owned to assets�������������������� 1.90 1.90 2.10 2.13 1.85 1.26 2.77 1.73 2.1

Equity capital ratio��������������������������������������������������� 11.19 11.77 10.85 11.78 11.15 12.13 12.22 9.16 10.85 

Core capital (leverage) ratio ����������������������������������� 9.34 11.46 10.54 10.64 9.02 9.83 9.35 7.80 9.27

Tier 1 risk-based capital ratio���������������������������������� 13.00 19.09 15.80 15.07 12.40 13.95 12.81 11.28 12.38 

Total risk-based capital ratio ����������������������������������� 14.93 20.20 16.99 16.28 14.51 15.61 14.72 13.58 14.60 

Net loans and leases to deposits���������������������������� 70.35 64.89 74.08 81.55 68.50 71.15 74.73 62.75 68.77 

Net loans to total assets ����������������������������������������� 52.63 55.16 62.05 63.54 50.25 52.43 57.17 44.19 52.67 

Domestic deposits to total assets ��������������������������� 65.20 85.00 83.73 77.51 61.49 64.48 73.43 58.24 56.93 

Structural Changes

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

Institutions absorbed by mergers ������������������� 117 46 59 10 2 11 9 32 23 24 18

Failed institutions �������������������������������������������� 16 10 6 0 0 0 7 3 1 1 4

PRIOR FIRST HALVES

(The way it was...)

Number of institutions ������������������������������������2012 7,245 2,341 4,244 553 107 898 929 1,539 1,754 1,524 601

��������������������������������������������2010 7,830 2,746 4,424 555 105 969 1,064 1,619 1,852 1,643 683

������������������������������������������� 2008 8,451 3,303 4,474 558 116 1,034 1,214 1,738 1,959 1,722 784

Total assets (in billions)����������������������������������2012 $14,031.3 $135.4 $1,274.7 $1,425.8 $11,195.4 $2,877.3 $2,934.7 $3,193.0 $3,000.2 $831

��������������������������������������������2010 13,199.5 154.7 1,324.8 1,428.3 10,291.8 2,672.0 2,987.4 2,865.9 1,656.3 78

������������������������������������������� 2008 13,300.4 177.0 1,333.3 1,464.5 10,325.6 2,478.4 3,397.0 2,937.6 989.0 76

Return on assets (%)��������������������������������������2012 0.99 0.70 0.81 1.24 0.99 0.91 0.78 0.88 1.0

��������������������������������������������2010 0.59 0.54 0.33 0.22 0.68 0.68 0.22 0.64 0.6

������������������������������������������� 2008 0.36 0.67 0.66 0.50 0.30 0.90 0.24 0.43 1.15

Net charge-offs to loans & leases (%) �����������2012 1.13 0.39 0.62 0.76 1.27 1.35 1.19 0.87 1.3

��������������������������������������������2010 2.78 0.66 0.99 1.78 3.28 4.10 2.63 2.12 3.1

������������������������������������������� 2008 1.16 0.25 0.38 0.85 1.35 1.23 0.95 1.06 1.2

Noncurrent assets plus 

OREO to assets (%) ��������������������������������2012 2.40 2.21 2.73 2.85 2.31 1.58 3.62 2.18 2.5

��������������������������������������������2010 3.33 2.38 3.40 3.63 3.29 2.23 4.03 3.22 4.6

������������������������������������������� 2008 1.41 1.20 1.57 1.77 1.34 0.96 1.43 1.26 1.6

Equity capital ratio (%)������������������������������������2012 11.32 11.97 10.90 11.92 11.29 12.34 12.21 9.02 11.04 

��������������������������������������������2010 11.11 12.19 10.21 11.06 11.22 12.29 11.43 9.15 11.55 

������������������������������������������� 2008 10.16 13.35 10.27 10.96 9.98 12.04 10.06 9.20 9.7

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

Note: Blue font identifies data that are also presented in the prior years data at bottom of table
FDIC Quarterly 10 2013, Volume 7, No. 3

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

Asset Concentration Groups*

June 30, 2013 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 

Billion

All Other 

>$1 

Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate ��������������������������������������� 1.27 0.22 1.80 0.79 0.86 1.11 0.81 1.52

Construction and development��������������������������������� 0.81 0.00 2.62 0.96 0.72 1.03 0.24 1.44

Nonfarm nonresidential��������������������������������������������� 0.60 0.00 0.55 0.66 0.57 0.50 1.19 1.19

Multifamily residential real estate ����������������������������� 0.38 0.00 0.24 0.77 0.37 0.45 0.34 1.49

Home equity loans����������������������������������������������������� 0.77 2.36 1.09 0.60 0.63 0.70 0.60 0.65

Other 1-4 family residential��������������������������������������� 2.03 0.16 2.80 1.49 1.43 1.24 0.96 1.98

Commercial and industrial loans ������������������������������������� 0.31 0.91 0.30 1.00 0.30 0.63 0.81 1.21

Loans to individuals���������������������������������������������������������� 1.33 1.15 1.40 1.56 1.23 1.16 0.93 1.50

Credit card loans ������������������������������������������������������� 1.19 1.14 1.29 1.06 1.21 1.83 0.63 1.47

Other loans to individuals ����������������������������������������� 1.47 1.36 1.58 1.61 1.23 1.08 1.07 1.51

All other loans and leases (including farm) ��������������������� 0.19 0.16 0.15 0.39 0.20 0.12 0.11 0.45

Total loans and leases������������������������������������������������������ 0.98 1.12 1.04 0.76 0.72 1.05 0.89 1.42

Percent of Loans Noncurrent**

All real estate loans ���������������������������������������������������������� 5.22 1.16 7.77 1.50 3.12 3.50 2.61 2.84

Construction and development.................................. 5.95 

Nonfarm nonresidential��������������������������������������������� 2.40 7.87 1.63 2.21 2.35 2.23 3.40 3.12

Multifamily residential real estate ����������������������������� 1.13 0.00 0.62 1.24 1.24 1.04 1.03 1.63

Home equity loans����������������������������������������������������� 2.83 0.00 4.19 0.96 1.56 2.19 3.10 1.47

Other 1-4 family residential��������������������������������������� 8.27 0.92 13.00 1.38 4.26 3.83 2.16 2.02 

Commercial and industrial loans ������������������������������������� 0.74 1.08 0.67 1.38 0.86 1.82 1.41 1.49

Loans to individuals���������������������������������������������������������� 1.05 1.19 1.24 0.59 0.90 0.77 0.77 0.63

Credit card loans ������������������������������������������������������� 1.23 1.20 1.27 0.23 1.47 1.93 1.05 0.93

Other loans to individuals ����������������������������������������� 0.86 1.09 1.20 0.62 0.81 0.64 0.63 0.61

All other loans and leases (including farm) ��������������������� 0.34 0.23 0.31 0.39 0.48 0.23 0.12 0.73

Total loans and leases������������������������������������������������������ 3.09 1.18 3.36 1.18 2.24 3.27 1.23 2.29

Percent of Loans Charged-Off (net, YTD)

All real estate loans ���������������������������������������������������������� 0.61 0.18 1.13 0.12 0.51 0.42 1.19 0.46

Construction and development��������������������������������� 0.81 0.00 4.06 0.48 0.82 0.47 2.26 1.48

Nonfarm nonresidential��������������������������������������������� 0.32 0.00 0.13 0.14 0.36 0.40 0.33 0.59

Multifamily residential real estate ����������������������������� 0.11 0.00 0.01 0.08 0.16 0.10 0.26 0.41

Home equity loans����������������������������������������������������� 1.26 -0.35 1.27 0.21 0.84 1.43 1.81 0.15

Other 1-4 family residential��������������������������������������� 0.66 0.23 1.60 0.17 0.60 0.36 0.76 0.20

Commercial and industrial loans ������������������������������������� 0.35 3.30 0.27 0.23 0.36 0.37 1.20 0.27

Loans to individuals���������������������������������������������������������� 2.27 3.49 3.13 0.31 0.99 1.26 1.11 0.46

Credit card loans ������������������������������������������������������� 3.65 3.54 4.24 0.62 3.83 5.02 2.30 2.04

Other loans to individuals ����������������������������������������� 0.81 2.38 1.26 0.28 0.55 0.85 0.51 0.36

All other loans and leases (including farm) ��������������������� 0.08 0.00 0.06 0.00 0.16 0.14 0.07 0.60

Total loans and leases������������������������������������������������������ 0.78 3.46 1.12 0.12 0.49 0.42 1.13 0.44

Loans Outstanding (in billions)

All real estate loans ���������������������������������������������������������� $4,046.9 $0.2 $476.5 $86.2 $1,935.0 $309.8 $17.5 $12.6 $59.

Construction and development��������������������������������� 202.5 0.0 5.6 4.2 144.6 6.0 0.3 1.

Nonfarm nonresidential��������������������������������������������� 1,083.3 0.0 35.9 24.0 764.7 29.0 1.0 4.5 

Multifamily residential real estate ����������������������������� 244.2 0.0 44.6 2.3 150.6 11.9 0.2 0.

Home equity loans����������������������������������������������������� 528.7 0.0 96.0 1.6 192.7 18.3 7.2 0.4

Other 1-4 family residential��������������������������������������� 1,855.2 0.2 240.3 22.2 649.9 243.2 8.7 5.6 

Commercial and industrial loans ������������������������������������� 1,563.2 35.3 279.1 18.3 719.1 9.6 0.5 2.3

Loans to individuals���������������������������������������������������������� 1,310.3 421.9 247.6 6.3 249.6 7.0 52.8 2.1

Credit card loans ������������������������������������������������������� 670.3 405.7 155.2 0.5 32.8 0.7 17.5 0.

Other loans to individuals ����������������������������������������� 640.0 16.2 92.4 5.7 216.8 6.3 35.3 1.9

All other loans and leases (including farm) ��������������������� 814.1 3.1 273.0 34.2 214.2 14.0 0.1 1.0

Total loans and leases (plus unearned income)�������������� 7,734.5 460.5 1,276.1 144.9 3,118.0 340.5 71.0 17.9 78

Memo: Other Real Estate Owned (in millions)

All other real estate owned����������������������������������������������� 32,615.3 0.2 2,676.5 711.5 20,052.7 1,734.9 51.3 221.5 681

Construction and development��������������������������������� 10,063.6 0.0 3.2 253.2 7,982.8 374.7 9.3 94.6 202

Nonfarm nonresidential��������������������������������������������� 8,169.2 0.0 33.4 268.6 6,174.1 237.5 24.5 78.9 212

Multifamily residential real estate ����������������������������� 927.7 0.0 8.0 14.9 709.5 35.7 0.5 2.4 

1-4 family residential ������������������������������������������������� 6,982.2 0.2 708.9 118.2 3,743.1 623.9 16.0 42.8 228

Farmland�������������������������������������������������������������������� 354.8 0.0 0.0 55.1 258.9 3.4 1.0 2.9

GNMA properties������������������������������������������������������� 6,053.4 0.0 1,862.0 1.4 1,183.1 459.6 0.0 0.0 0

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

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

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

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

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

exceed 25 percent of total assets

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 11 2013, Volume 7, No. 3

Quarterly Banking Profile

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

Asset Size Distribution Geographic Regions*

June 30, 2013 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ������������������������������ 1.27 1.32 0.89 0.83 1.47 0.93 1.45 1.20 1.8

Construction and development������������������������ 0.81 1.08 0.88 0.74 0.80 0.82 0.82 0.69 1.0

Nonfarm nonresidential������������������������������������ 0.60 0.99 0.69 0.59 0.55 0.64 0.61 0.67 0.5

Multifamily residential real estate �������������������� 0.38 0.54 0.53 0.41 0.34 0.28 0.55 0.33 0.6

Home equity loans�������������������������������������������� 0.77 0.92 0.67 0.63 0.79 0.51 0.91 0.92 0.7

Other 1-4 family residential������������������������������ 2.03 1.89 1.26 1.31 2.27 1.43 2.12 1.84 3.0

Commercial and industrial loans ���������������������������� 0.31 1.29 0.81 0.44 0.25 0.43 0.24 0.36 0.2

Loans to individuals������������������������������������������������� 1.33 2.02 1.67 1.47 1.31 1.15 1.96 1.21 1.4

Credit card loans ���������������������������������������������� 1.19 1.87 1.43 1.75 1.17 1.02 1.77 1.01 1.3

Other loans to individuals �������������������������������� 1.47 2.02 1.68 1.36 1.46 1.49 2.07 1.28 1.5

All other loans and leases (including farm) ������������ 0.19 0.43 0.38 0.25 0.18 0.14 0.15 0.27 0.1

Total loans and leases��������������������������������������������� 0.98 1.26 0.89 0.79 1.01 0.84 1.13 0.89 1.2

Percent of Loans Noncurrent** 

All real estate loans ������������������������������������������������� 5.22 2.36 2.37 3.08 6.43 3.24 7.25 5.69 6.5

Construction and development������������������������ 5.95 5.23 6.12 6.49 5.62 7.87 6.92 5.57 5.0

Nonfarm nonresidential������������������������������������ 2.40 3.00 2.34 2.46 2.37 2.54 2.49 2.61 2.4

Multifamily residential real estate �������������������� 1.13 2.65 1.65 1.29 0.96 0.85 1.53 1.26 1.3

Home equity loans�������������������������������������������� 2.83 1.32 1.19 1.32 3.08 1.88 3.34 3.24 3.0

Other 1-4 family residential������������������������������ 8.27 2.13 2.01 3.92 10.04 4.17 10.94 9.41 10.6

Commercial and industrial loans ���������������������������� 0.74 2.19 1.72 1.32 0.58 0.96 0.59 0.71 0.7

Loans to individuals������������������������������������������������� 1.05 0.88 0.86 0.90 1.06 1.06 1.02 0.96 1.3

Credit card loans ���������������������������������������������� 1.23 0.85 1.05 1.37 1.22 1.11 1.52 1.23 1.3

Other loans to individuals �������������������������������� 0.86 0.88 0.85 0.72 0.87 0.92 0.74 0.87 1.3

All other loans and leases (including farm) ������������ 0.34 0.48 0.58 0.54 0.31 0.20 0.22 0.28 0.4

Total loans and leases��������������������������������������������� 3.09 2.03 2.12 2.51 3.33 2.09 4.24 3.27 3.6

Percent of Loans Charged-Off (net, YTD) 

All real estate loans ������������������������������������������������� 0.61 0.30 0.31 0.35 0.74 0.54 0.75 0.57 0.8

Construction and development������������������������ 0.81 0.71 0.82 0.61 0.91 0.97 1.69 0.75 0.47

Nonfarm nonresidential������������������������������������ 0.32 0.42 0.28 0.30 0.34 0.42 0.47 0.35 0.1

Multifamily residential real estate �������������������� 0.11 0.18 0.16 0.22 0.06 0.05 0.10 0.20 0.1

Home equity loans�������������������������������������������� 1.26 0.27 0.47 0.57 1.38 0.75 1.78 1.04 1.5

Other 1-4 family residential������������������������������ 0.66 0.26 0.28 0.35 0.77 0.63 0.54 0.57 1.1

Commercial and industrial loans ���������������������������� 0.35 0.50 0.52 0.39 0.33 0.62 0.31 0.27 0.2

Loans to individuals������������������������������������������������� 2.27 0.41 0.75 1.40 2.37 2.82 2.00 1.28 3.0

Credit card loans ���������������������������������������������� 3.65 1.99 3.87 3.60 3.65 3.43 4.05 3.43 4.3

Other loans to individuals �������������������������������� 0.81 0.40 0.55 0.54 0.85 1.08 0.80 0.59 1.2

All other loans and leases (including farm) ������������ 0.08 0.00 0.15 0.16 0.07 0.07 0.06 0.01 0.1

Total loans and leases��������������������������������������������� 0.78 0.31 0.35 0.42 0.90 1.07 0.76 0.52 1.0

Loans Outstanding (in billions) 

All real estate loans ������������������������������������������������� $4,046.9 $48.8 $610.9 $655.7 $2,731.6 $790.2 $946.3 $785.2 $811.2 $3

Construction and development������������������������ 202.5 2.8 49.3 49.4 101.0 37.6 48.2 31.6 31.

Nonfarm nonresidential������������������������������������ 1,083.3 13.9 244.9 270.0 554.6 246.5 225.3 184.2 161.8 

Multifamily residential real estate �������������������� 244.2 1.5 31.0 53.9 157.8 80.5 29.6 68.5 22.

Home equity loans�������������������������������������������� 528.7 1.3 28.9 43.8 454.6 91.6 139.7 135.1 114.

Other 1-4 family residential������������������������������ 1,855.2 21.7 217.8 223.6 1,392.1 330.3 495.1 347.2 400.7 

Commercial and industrial loans ���������������������������� 1,563.2 8.7 104.5 144.8 1,305.2 231.1 387.4 327.3 335.3 

Loans to individuals������������������������������������������������� 1,310.3 4.5 34.8 68.7 1,202.3 372.3 235.0 191.1 281.8

Credit card loans ���������������������������������������������� 670.3 0.0 2.1 19.2 648.9 274.3 84.7 46.0 159.

Other loans to individuals �������������������������������� 640.0 4.5 32.7 49.5 553.4 98.0 150.3 145.0 122.

All other loans and leases (including farm) ������������ 814.1 8.1 43.5 45.1 717.3 134.4 167.0 205.8 232.

Total loans and leases (plus unearned income)����� 7,734.5 70.1 793.6 914.4 5,956.5 1,528.0 1,735.7 1,509.5 1,660.9 

Memo: Other Real Estate Owned (in millions) 

All other real estate owned�������������������������������������� 32,615.3 944.3 9,484.8 7,024.0 15,162.3 3,794.6 8,371.1 7,948.1 6,009.8 4,34

Construction and development������������������������ 10,063.6 305.0 4,255.9 3,081.2 2,421.5 874.1 2,827.7 1,448.0 2,013.6 1,

Nonfarm nonresidential������������������������������������ 8,169.2 323.4 3,192.7 2,229.5 2,423.7 1,071.6 1,690.6 1,755.9 1,584.9 1,

Multifamily residential real estate �������������������� 927.7 47.3 253.4 218.2 408.8 215.6 127.6 205.3 179.3

1-4 family residential ���������������������������������������� 6,982.2 247.6 1,603.9 1,345.2 3,785.5 1,254.9 1,808.5 1,830.5 969.6 

Farmland����������������������������������������������������������� 354.8 20.7 174.3 116.8 43.0 17.3 76.4 63.8 63.1

GNMA properties���������������������������������������������� 6,053.4 0.3 4.5 33.1 6,015.5 360.0 1,840.3 2,644.8 1,136.

* Regions:

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

U.S. Virgin Islan

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 12 2013, Volume 7, No. 3

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

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

2nd

Quarter 

2013

1st 

Quarter 

2013

4th 

Quarter 

2012

3rd 

Quarter 

2012

2nd 

Quarter 

2012

% Change 

12Q2-

13Q2

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����������������� 1,408 1,398 1,363 1,365 1,326 6.2 80 874 358 9

Total assets of institutions reporting derivatives ���������� $12,693,494 $12,688,491 $12,662,756 $12,420,432 $12,211,090 4.0 $5,769 $355,659 $1,026,783 $11,305,28

Total deposits of institutions reporting derivatives������� 9,409,187 9,427,223 9,383,383 9,074,347 8,883,459 5.9 4,821 293,859 812,379 8,298,12

Total derivatives������������������������������������������������������������� 236,526,457 232,672,271 224,081,074 229,350,281 225,035,729 5.1 285 23,400 93,037 236,409,73

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 188,303,466 184,950,557 178,936,077 181,462,870 178,823,511 5.3 284 23,111 82,802 188,197,26

Foreign exchange*��������������������������������������������������������� 31,485,720 30,329,231 28,600,020 30,098,652 29,088,318 8.2 0 2 8,398 31,477,31

Equity ����������������������������������������������������������������������������� 2,079,940 2,041,453 1,952,110 2,208,326 2,006,866 3.6 0 79 651 2,079,20

Commodity & other (excluding credit derivatives)�������� 1,275,103 1,449,766 1,402,392 1,582,317 1,492,694 -14.6 1 19 845 1,274,23

Credit������������������������������������������������������������������������������ 13,382,229 13,901,264 13,190,476 13,998,117 13,624,340 -1.8 0 188 340 13,381,70

Total�������������������������������������������������������������������������������� 236,526,457 232,672,271 224,081,074 229,350,281 225,035,729 5.1 285 23,400 93,037 236,409,73

Derivative Contracts by Transaction Type 

Swaps ���������������������������������������������������������������������������� 141,710,059 138,360,520 134,927,013 135,584,411 134,469,463 5.4 29 6,803 45,682 141,657,54

Futures & forwards �������������������������������������������������������� 43,358,499 45,599,448 43,442,591 44,034,379 40,616,309 6.8 127 8,405 27,350 43,322,61

Purchased options��������������������������������������������������������� 17,640,943 16,632,836 15,629,868 16,596,691 16,910,332 4.3 24 679 4,219 17,636,02

Written options��������������������������������������������������������������� 17,761,211 17,145,285 15,964,285 16,818,793 16,721,541 6.2 105 7,323 15,167 17,738,61

Total�������������������������������������������������������������������������������� 220,470,712 217,738,088 209,963,757 213,034,275 208,717,646 5.6 285 23,211 92,419 220,354,79

Fair Value of Derivative Contracts 

Interest rate contracts���������������������������������������������������� 61,423 67,452 96,553 98,516 92,904 -33.9 0 386 -40 61,07

Foreign exchange contracts������������������������������������������ -5,177 -6,644 -5,822 -13,618 -3,883 N/M 0 0 2 -5,179

Equity contracts������������������������������������������������������������� 1,396 -2,588 -2,029 -264 3,453 -59.6 0 2 8 1,38

Commodity & other (excluding credit derivatives)�������� 1,319 -2,530 -2,467 -2,590 -1,538 N/M 0 1 38 1,279

Credit derivatives as guarantor������������������������������������� -8,729 -20,833 -40,693 -84,508 -179,196 N/M 0 0 -1 -8,728

Credit derivatives as beneficiary����������������������������������� 13,886 25,372 42,352 87,900 185,191 -92.5 0 4 -23 13,90

Derivative Contracts by Maturity** 

Interest rate contracts ����������������������������� < 1 year 88,194,564 86,868,881 83,071,641 84,190,393 82,514,198 6.9 82 7,436 24,520 88,162,52

 ������������������������������������������ 1-5 years 30,699,973 29,343,805 30,498,385 30,961,899 30,337,240 1.2 30 2,936 22,790 30,674,21

 ������������������������������������������ > 5 years 20,837,681 20,313,212 21,448,437 21,990,686 21,795,550 -4.4 47 3,782 18,120 20,815,73

Foreign exchange contracts ������������������� < 1 year 19,249,542 18,647,264 18,347,400 18,781,964 18,604,099 3.5 0 1 6,573 19,242,96

 ������������������������������������������ 1-5 years 2,734,201 2,738,365 2,868,426 2,894,870 2,926,354 -6.6 0 0 115 2,734,08

 ������������������������������������������ > 5 years 1,455,297 1,389,930 1,442,901 1,453,914 1,422,938 2.3 0 0 0 1,455,29

Equity contracts��������������������������������������� < 1 year 660,941 648,510 627,310 638,274 597,782 10.6 0 3 177 660,76

 ������������������������������������������ 1-5 years 271,218 255,625 262,230 290,474 262,864 3.2 0 14 113 271,09

 ������������������������������������������ > 5 years 80,891 74,515 81,851 85,427 81,390 -0.6 0 0 13 80,87

Commodity & other contracts ����������������� < 1 year 424,514 480,077 391,393 460,565 442,919 -4.2 0 12 268 424,23

 ������������������������������������������ 1-5 years 163,094 179,413 242,068 247,795 205,411 -20.6 0 0 52 163,04

 ������������������������������������������ > 5 years 15,300 21,538 28,823 25,053 24,628 -37.9 0 0 0 15,30

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%)������������������� 30.5 32.6 35.9 37.2 38.9 0.1 0.4

Total potential future exposure to tier 1 capital (%)������ 62.8 62.1 62.8 66.4 66.1 0.1 0.2

Total exposure (credit equivalent amount) 

to tier 1 capital (%)�������������������������������������������������� 93.3 94.7 98.7 103.6 105.1 0.2 0.6 

Credit losses on derivatives***���������������������������������� 145.0 84.3 230.2 156.8 130.7 10.9 0.0 0.6

HELD FOR TRADING 

Number of institutions reporting derivatives����������������� 246 242 247 248 234 5.1 12 95 77 6

Total assets of institutions reporting derivatives ���������� 10,176,122 10,139,183 10,122,363 9,955,521 9,802,662 3.8 944 43,502 265,028 9,866,64

Total deposits of institutions reporting derivatives������� 7,534,972 7,539,122 7,513,330 7,270,076 7,116,728 5.9 772 35,854 207,929 7,290,41

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 184,310,115 181,115,575 175,185,511 177,553,778 174,789,894 5.4 80 3,008 17,442 184,289,58

Foreign exchange���������������������������������������������������������� 28,055,674 28,425,810 26,892,025 26,859,133 25,615,932 9.5 0 0 3,002 28,052,67

Equity ����������������������������������������������������������������������������� 2,065,640 2,028,256 1,939,747 2,194,867 1,993,028 3.6 0 0 256 2,065,38

Commodity & other�������������������������������������������������������� 1,264,349 1,433,289 1,386,727 1,559,924 1,475,527 -14.3 1 0 57 1,264,29

Total�������������������������������������������������������������������������������� 215,695,777 213,002,931 205,404,010 208,167,702 203,874,380 5.8 80 3,009 20,756 215,671,93

Trading Revenues: Cash & Derivative Instruments 

Interest rate�������������������������������������������������������������������� 2,762 2,216 4,155 4,458 2,873 -3.9 0 0 25 2,73

Foreign exchange���������������������������������������������������������� 3,139 3,190 759 1,020 2,001 56.9 0 0 2 3,13

Equity ����������������������������������������������������������������������������� 922 830 136 507 1,140 -19.1 0 0 1 92

Commodity & other (including credit derivatives) �������� 452 1,252 -683 -892 -3,853 N/M 0 0 0 451

Total trading revenues��������������������������������������������������� 7,275 7,488 4,367 5,093 2,161 236.6 0 0 28 7,24

Share of Revenue 

Trading revenues to gross revenues (%) ���������������������� 6.0 6.2 3.7 4.3 1.9 0.0 -0.

Trading revenues to net operating revenues (%)���������� 26.5 29.0 19.9 22.4 11.3 0.0 -0.4

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives����������������� 1,264 1,260 1,219 1,213 1,185 6.7 69 789 319 8

Total assets of institutions reporting derivatives ���������� 12,299,446 12,354,327 12,318,096 11,985,728 11,791,598 4.3 4,896 318,011 926,403 11,050,13

Total deposits of institutions reporting derivatives������� 9,100,460 9,166,967 9,111,173 8,728,197 8,548,194 6.5 4,111 262,681 731,538 8,102,12

Derivative Contracts by Underlying Risk 

Exposure 

Interest rate�������������������������������������������������������������������� 3,993,351 3,834,982 3,750,566 3,909,092 4,033,617 -1.0 204 20,103 65,361 3,907,68

Foreign exchange���������������������������������������������������������� 756,530 870,503 781,154 921,630 778,644 -2.8 0 2 5,118 751,41

Equity ����������������������������������������������������������������������������� 14,300 13,197 12,363 13,458 13,838 3.3 0 79 395 13,82

Commodity & other�������������������������������������������������������� 10,754 16,477 15,664 22,393 17,167 -37.4 0 18 788 9,94

Total notional amount ���������������������������������������������������� 4,774,935 4,735,157 4,559,747 4,866,573 4,843,266 -1.4 205 20,202 71,662 4,682,86

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

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

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

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

in total assets
FDIC Quarterly 13 2013, Volume 7, No. 3

Quarterly Banking Profile

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

Asset Size Distribution

(dollar figures in millions)

2nd 

Quarter

2013

1st 

Quarter

2013

4th 

Quarter

2012

3rd 

Quarter

2012

2nd 

Quarter 

2012

% Change 

12Q2-

13Q2

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 ����������������������������������������� 90 98 159 168 170 -47.1 3 35 19 3

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� $634,887 $636,305 $641,236 $754,730 $750,582 -15.4 $7 $3,628 $13,115 $618,13

Home equity loans��������������������������������������������������������������������������������������������� 46 47 49 51 52 -11.5 0 1 0 4

Credit card receivables�������������������������������������������������������������������������������������� 17,945 18,832 18,942 18,423 17,227 4.2 0 320 0 17,62

Auto loans ���������������������������������������������������������������������������������������������������������� 3,860 4,505 4,684 4,311 4,520 -14.6 0 0 0 3,86

Other consumer loans ��������������������������������������������������������������������������������������� 4,938 5,155 5,083 5,226 5,203 -5.1 0 3 0 4,93

Commercial and industrial loans����������������������������������������������������������������������� 4,467 4,025 1,839 3,373 1,713 160.8 0 10 1 4,45

All other loans, leases, and other assets���������������������������������������������������������� 99,224 142,783 199,968 204,902 209,647 -52.7 0 3,235 5,287 90,70

Total securitized and sold������������������������������������������������������������������������������������������ 765,368 811,651 871,800 991,017 988,944 -22.6 7 7,198 18,403 739,76

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 3,086 3,254 3,368 3,581 3,696 -16.5 0 62 39 2,98

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

Credit card receivables�������������������������������������������������������������������������������������� 557 588 605 666 611 -8.8 0 111 0 44

Auto loans ���������������������������������������������������������������������������������������������������������� 0 0 0 0 1 -100.0 0 0 0 

Other consumer loans ��������������������������������������������������������������������������������������� 168 185 200 206 209 -19.6 0 0 0 16

Commercial and industrial loans����������������������������������������������������������������������� 33 41 7 14 3 1,000.0 0 0 0 3

All other loans, leases, and other assets���������������������������������������������������������� 1,861 2,438 2,280 2,317 2,277 -18.3 0 2 0 1,85

Total credit exposure ������������������������������������������������������������������������������������������������� 5,705 6,506 6,460 6,785 6,798 -16.1 0 174 39 5,49

Total unused liquidity commitments provided to institution's own securitizations ��� 121 121 130 125 127 -4.7 0 0 0 12

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

1-4 family residential loans�������������������������������������������������������������������������������� 4.3 4.0 4.5 4.1 3.7 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 9.5 11.5 12.5 12.2 13.3 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 0.8 0.7 0.8 0.8 0.8 0.0 1.

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

Other consumer loans ��������������������������������������������������������������������������������������� 6.0 4.9 6.2 5.5 4.6 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.0 0.0 0.2 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 1.2 1.2 0.9 1.1 1.3 0.0 1.

Total loans, leases, and other assets ����������������������������������������������������������������������� 3.8 3.4 3.6 3.4 3.2 0.0 1.

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

1-4 family residential loans�������������������������������������������������������������������������������� 4.2 4.7 5.0 4.8 5.5 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 32.3 31.7 29.6 29.1 26.1 0.0 0.0

Credit card receivables�������������������������������������������������������������������������������������� 0.4 0.3 0.3 0.3 0.3 0.0 1.

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

Other consumer loans ��������������������������������������������������������������������������������������� 6.3 6.8 6.9 5.6 5.0 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.1 0.0 0.1 0.0 6.8

All other loans, leases, and other assets���������������������������������������������������������� 10.2 8.7 7.8 8.0 6.9 0.0 0.8

Total loans, leases, and other assets ����������������������������������������������������������������������� 4.9 5.2 5.5 5.3 5.6 0.0 1.

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans�������������������������������������������������������������������������������� 0.5 0.3 1.5 1.0 0.7 0.0 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.2 0.3 1.6 1.3 1.2 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 1.3 0.6 2.5 2.0 1.5 0.0 2.

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

Other consumer loans ��������������������������������������������������������������������������������������� 0.4 0.2 1.0 0.7 0.5 0.0 0.

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

All other loans, leases, and other assets���������������������������������������������������������� 0.5 0.1 0.5 0.3 0.2 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 0.5 0.3 1.3 0.9 0.6 0.0 0.

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

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

Credit card receivables�������������������������������������������������������������������������������������� 13,076 11,868 14,514 13,291 14,964 -12.6 0 279 0 12,79

Commercial and industrial loans����������������������������������������������������������������������� 0 0 0 0 3 -100.0 0 0 0 

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

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales������������������������������������������������������������ 1,062 1,058 1,024 1,006 1,001 6.1 161 695 159 4

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 49,462 51,484 52,271 55,376 57,646 -14.2 1,595 14,329 9,737 23,80

Home equity, credit card receivables, auto, and other consumer loans ��������� 829 852 857 863 883 -6.1 0 2 23 80

Commercial and industrial loans����������������������������������������������������������������������� 71 74 76 46 70 1.4 1 19 44 

All other loans, leases, and other assets���������������������������������������������������������� 63,988 64,769 64,999 63,170 62,899 1.7 2 50 430 63,50

Total sold and not securitized������������������������������������������������������������������������������������ 114,350 117,179 118,203 119,456 121,498 -5.9 1,598 14,400 10,235 88,11

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 12,169 13,023 13,325 15,884 17,043 -28.6 105 3,076 4,198 4,79

Home equity, credit card receivables, auto, and other consumer loans ��������� 151 167 173 164 168 -10.1 0 2 5 14

Commercial and industrial loans����������������������������������������������������������������������� 34 36 42 38 40 -15.0 1 19 13 

All other loans, leases, and other assets���������������������������������������������������������� 15,360 15,216 15,043 14,438 14,277 7.6 2 22 63 15,27

Total credit exposure ������������������������������������������������������������������������������������������������� 27,713 28,441 28,582 30,523 31,529 -12.1 108 3,119 4,279 20,20

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others ������� 158 167 166 172 176 -10.2 13 94 32 1

Total credit exposure ������������������������������������������������������������������������������������������������� 45,095 48,946 57,798 61,957 66,948 -32.6 14 218 358 44,50

Total unused liquidity commitments ������������������������������������������������������������������������� 828 673 779 776 1,275 -35.1 0 0 0 82

Other

Assets serviced for others*��������������������������������������������������������������������������������������� 4,872,698 5,184,975 5,349,521 5,500,344 5,601,387 -13.0 5,949 138,960 222,416 4,505,37

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others������������������ 8,267 7,875 8,372 8,009 12,801 -35.4 5 0 3 8,25

Unused liquidity commitments to conduits sponsored by institutions 

 and others �������������������������������������������������������������������������������������������������� 51,893 63,355 68,619 70,886 73,694 -29.6 0 0 1,122 50,77

Net servicing income (for the quarter)���������������������������������������������������������������������� 5,174 4,225 4,497 2,802 1,985 160.7 8 193 216 4,75

Net securitization income (for the quarter)��������������������������������������������������������������� 274 394 430 509 246 11.4 0 16 9 24

Total credit exposure to Tier 1 capital (%)** ������������������������������������������������������������� 6.0 6.5 7.3 7.8 8.4 0.8 2.

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

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

FDIC Quarterly 15 2013, Volume 7, No. 3

Quarterly Banking Profile

Total assets of the 6,940 FDIC-insured institutions were 

nearly unchanged, decreasing by only 0.1 percent 

($14.8 billion) from the previous quarter. 1 Total deposits decreased by 0.4 percent ($38.7 billion). Domestic 

office deposits decreased by 0.3 percent ($31.0 billion), 

while foreign office deposits decreased by 0.6 percent 

($7.7 billion). Within the category of domestic deposits, noninterest-bearing deposits rose by 0.5 percent 

($13.4 billion), interest-bearing checking and savings 

accounts declined by 0.6 percent ($32.7 billion), and 

domestic time deposits fell 0.7 percent ($11.8 billion).

Over the past four quarters, total domestic deposits grew 

by 5.4 percent ($481.8 billion), with interest-bearing 

deposits increasing by 4.9 percent ($322.4 billion) and 

noninterest-bearing deposits rising by 6.9 percent 

($159.4 billion). Foreign deposits fell by 1.7 percent, 

other borrowed money increased by 1.7 percent, and 

securities sold under agreements to repurchase declined 

by 15.6 percent over the same four-quarter period.2

Insured institutions had $2.5 trillion in domestic 

noninterest-bearing deposits on June 30, 2013, 69 percent 

($1.7 trillion) of which was in noninterest-bearing transaction accounts with balances larger than $250,000. Of 

the $1.7 trillion, $1.5 trillion exceeded the $250,000 

insurance limit. December 31 of last year was the last day 

of temporary unlimited insurance coverage provided to 

noninterest-bearing transaction deposits as part of the 

Dodd-Frank Act.3 The expiration of the unlimited coverage appeared to have only limited impact on deposit 

levels during the first six months of 2013. Over these six 

months, the aggregate amount exceeding the $250,000 

limit in noninterest-bearing transaction deposits declined 

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

 The Dodd-Frank Wall Street Reform and Consumer Protection Act 

(Dodd-Frank), enacted on July 21, 2010, provided temporary unlimited 

deposit insurance coverage for noninterest-bearing transaction 

accounts from December 31, 2010, through December 31, 2012, 

regardless of the balance in the account and the ownership capacity of 

the funds. The unlimited coverage was available to all depositors, 

including consumers, businesses and government entities. The coverage was separate from, and in addition to, the insurance coverage 

provided for a depositor’s other accounts held at an FDIC-insured bank.

by only $57 billion, or less than 4 percent. Table 1 shows 

the distribution of noninterest-bearing transaction 

accounts larger than $250,000 by institution asset size.

Total estimated insured deposits decreased by 0.8 

percent in the second quarter of 2013.4 For institutions 

existing at the start and the end of the most recent 

quarter, insured deposits increased during the quarter at 

2,424 institutions (35 percent), decreased at 4,481 institutions (65 percent), and remained unchanged at 31 

institutions. Excluding those deposit amounts that 

received temporary insurance coverage through the end 

of 2012, estimated insured deposits rose by 4.4 percent 

over the 12 months ending June 30, 2013.

The Deposit Insurance Fund (DIF) balance rose by 

$2.1 billion during the second quarter to $37.9 billion. 

Assessment income of $2.5 billion was primarily responsible for the increase. Investment income and other 

miscellaneous income of $105 million, and a negative 

provision for insurance losses of $33 million, also added 

to the fund balance. Operating expenses of $439 million 

and unrealized losses on available-for-sale securities of 

$96 million reduced the fund balance. Twelve FDICinsured institutions with combined assets of $1.4 billion 

failed during the second quarter, at an estimated cost to 

the DIF of $270 million. The DIF’s reserve ratio was 0.63 

percent on June 30, up from 0.59 percent at March 31.

To ensure that the DIF had sufficient liquidity to handle 

a high volume of failures, the Board issued a rule in 2009 

that required insured depository institutions to prepay 13 

quarters of estimated risk-based assessments. The $45.7 

billion in assessments prepaid on December 30, 2009, 

resolved the FDIC’s immediate liquidity needs. At the 

end of June, the FDIC refunded $5.85 billion in remaining prepaid assessments to more than 5,600 institutions.

Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets 

minus average tangible equity.5 Revisions to insurance 

4

 Figures for estimated insured deposits in this discussion include 

insured branches of foreign banks, in addition to insured commercial 

banks and savings institutions.

5

 There is an additional adjustment to the assessment base for 

banker’s banks and custodial banks, as permitted under Dodd-Frank.

■ Fund Balance Increases to $37.9 Billion

■ DIF Reserve Ratio Rises 4 Basis Points to 0.63 Percent

■ Twelve Institutions Fail During Second Quarter

INSURANCE FUND INDICATORS
FDIC Quarterly 16 2013, Volume 7, No. 3

assessment rates and risk-based pricing rules for large 

banks (banks with assets greater than $10 billion) also 

became effective on that date. The First Quarter 2010 

Quarterly Banking Profile includes a more detailed explanation of these changes. Table 2 shows the distribution 

of the assessment base as of June 30, by institution asset 

size category.

Dodd-Frank requires that, for at least five years, the 

FDIC must make available to the public the DIF reserve 

ratio and the Designated Reserve Ratio (DRR) using 

both estimated insured deposits and the new assessment 

base. As of June 30, 2013, the DIF reserve ratio would 

have been 0.30 percent using the new assessment base 

(compared to 0.63 percent using estimated insured 

deposits), and the 2.0 percent DRR using estimated 

insured deposits would have been 1.0 percent using the 

new assessment base.

Author: Kevin Brown, Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

Table 1

Insured Commercial Banks and Savings Institutions as of June 30, 2013

Distribution of Noninterest-Bearing Domestic Deposits by Asset Size

Asset Size

Number of 

Institutions

Total Assets 

($ Bil.)

Domestic Noninterest-Bearing Transaction Accounts

Larger Than $250,000* Other 

NoninterestBearing 

Deposits** 

($ Bil.)

Total 

($ Bil.)

Amount Above 

the $250,000 

Coverage Limit 

($ Bil.)

Average 

Account 

Size 

($ Thou.)

Average 

Number of 

Accounts per 

Institution

Less Than $1 Billion 6,287 $1,381.6 $75.8 $48.1 $683 18 $129.7

$1 - $10 Billion 546 1,413.9 108.7 78.3 894 223 109.4

$10 - $50 Billion 71 1,450.9 111.1 88.7 1,239 1,263 102.5

$50 - $100 Billion 16 1,223.3 137.9 123.0 2,310 3,731 41.8

Over $100 Billion 20 8,940.0 1,262.4 1,147.1 2,738 23,056 377.9

Total 6,940 14,409.7 1,695.9 1,485.1 2,011 121 761.3

March 31, 2013 7,019 14,424.5 1,678.7 1,472.1 2,031 118 765.2

December 31, 2012 7,083 14,450.7 1,753.5 1,542.3 2,075 119 787.9

September 30, 2012 7,181 14,223.3 1,693.5 1,491.7 2,098 112 698.7

June 30, 2012 7,245 14,031.3 1,567.3 1,374.7 2,034 106 730.5

March 31, 2012 7,308 13,926.0 1,496.5 1,309.9 2,004 102 735.8

December 31, 2011 7,357 13,892.1 1,577.3 1,395.5 2,169 99 688.0

September 30, 2011 7,437 13,811.9 1,385.3 1,209.7 1,972 94 708.1

June 30, 2011 7,513 13,602.6 1,207.1 1,040.8 1,815 89 705.3

March 31, 2011 7,574 13,414.3 1,047.1 888.7 1,653 84 699.9

December 31, 2010 7,658 13,318.9 1,010.0 854.2 1,621 81 679.5

* The Dodd-Frank Act provided temporary unlimited coverage through 12/31/2012, after which these accounts are not insured above the basic $250,000 coverage limit.

** Includes noninterest-bearing transaction accounts smaller than $250,000 and noninterest-bearing deposits not classified as transaction accounts.

Table 2

Distribution of the Assessment Base for FDIC-Insured Institutions* 

by Asset Size

Data as of June 30, 2013

Asset Size

Number of 

Institutions

Percent of 

Total Institutions

Assessment Base** 

($ Bil.)

Percent of 

Base

Less Than $1 Billion 6,287 90.6 $1,234.0 9.9 

$1 - $10 Billion 546 7.9 1,255.5 10.1 

$10 - $50 Billion 71 1.0 1,288.1 10.3 

$50 - $100 Billion 16 0.2 1,024.3 8.2 

Over $100 Billion 20 0.3 7,648.0 61.4 

Total 6,940 100.0 12,449.9 100.0 

* Excludes insured U.S. branches of foreign banks.

** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.
FDIC Quarterly 17 2013, Volume 7, No. 3

Quarterly Banking Profile

DIF Reserve Ratios

Percent of Insured Deposits

0.06

0.12

0.17

0.22

0.32 0.35

0.59

-0.28 -0.15 -0.12 -0.02

0.44

0.63

6/10 12/10 6/11 12/11 6/12 12/12 6/13

Table I-B. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

2nd 

Quarter 

2013

1st 

Quarter 

2013

4th 

Quarter 

2012

3rd 

Quarter 

2012

2nd 

Quarter 

2012

1st 

Quarter 

2012

4th 

Quarter 

2011

3rd 

Quarter 

2011

2nd 

Quarter 

2011

1st 

Quarter 

2011

4th 

Quarter 

2010

3rd 

Quarter 

2010

2nd 

Quarter 

2010

Beginning Fund Balance ..... $35,742 $32,958 $25,224 $22,693 $15,292 $11,827 $7,813 $3,916 -$1,023 -$7,352 -$8,009 -$15,247 -$20,717

Changes in Fund Balance:

Assessments earned .............. 2,526 2,645 2,937 2,833 2,933 3,694 3,209 3,642 3,163 3,484 3,498 3,592 3,242

Interest earned on 

investment securities ...... 54 -9 66 -8 81 20 33 30 37 28 39 40 64

Realized gain on sale of

investments ...................... 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses ............... 439 436 469 442 407 460 334 433 463 395 452 414 382

Provision for insurance 

losses ............................... -33 -499 -3,344 -84 -807 12 1,533 -763 -2,095 -3,089 2,446 -3,763 -2,552

All other income, 

net of expenses ............... 51 55 1,878 57 4,095 63 2,599 83 80 66 48 94 55

Unrealized gain/(loss) on 

available-for-sale 

securities ......................... -96 30 -22 7 -108 160 40 -188 27 57 -30 163 -61

Total fund balance change ..... 2,129 2,784 7,734 2,531 7,401 3,465 4,014 3,897 4,939 6,329 657 7,238 5,470

Ending Fund Balance ........... 37,871 35,742 32,958 25,224 22,693 15,292 11,827 7,813 3,916 -1,023 -7,352 -8,009 -15,247

Percent change from 

four quarters earlier ......... 66.88 133.73 178.67 222.85 479.49 NM NM NM NM NM NM 

Reserve Ratio (%) ................. 0.63 0.59 0.44 0.35 0.32 0.22 0.17 0.12 0.06 -0.02 -0.1

Estimated Insured 

Deposits** .............................. 5,965,510 6,013,067 7,412,319 7,257,372 7,089,783 7,038,822 6,980,332 6,761,531 6,529,322 6,384,450 6,306,215 5,421,425 5,437,417

Percent change from 

four quarters earlier ......... -15.86 -14.57 6.19 7.33 8.58 10.25 10.69 24.72 20.08 16.67 16.

Domestic Deposits ............... 9,424,529 9,454,602 9,474,604 9,084,804 8,937,726 8,848,707 8,782,134 8,526,713 8,244,900 8,006,898 7,887,733 7,753,409 7,681,283

Percent change from 

four quarters earlier ......... 5.45 6.85 7.88 6.55 8.40 10.51 11.34 9.97 7.34 3.95 2

Number of institutions 

reporting ......................... 6,949 7,028 7,092 7,190 7,254 7,317 7,366 7,446 7,522 7,583 7,667 7,770 7,839

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

6/10 -$15,247 $5,437,417

9/10 -8,009 5,421,425

12/10 -7,352 6,306,215

3/11 -1,023 6,384,450

6/11 3,916 6,529,322

9/11 7,813 6,761,531

12/11 11,827 6,980,332

3/12 15,292 7,038,822

6/12 22,693 7,089,783

9/12 25,224 7,257,372

12/12 32,958 7,412,319

3/13 35,742 6,013,067

6/13 37,871 5,965,510

Table II-B. Problem Institutions and Failed/Assisted Institutions

(dollar figures in millions) 2013*** 2012*** 2012 2011 2010 2009 2008

Problem Institutions

Number of institutions ������������������������������������������������������������ 553 732 651 813 884 702 252

Total assets����������������������������������������������������������������������������� $192,482 $282,432 $232,701 $319,432 $390,017 $402,782 $159,405

Failed Institutions

Number of institutions ������������������������������������������������������������ 16 31 51 92 157 140 25

Total assets ����������������������������������������������������������������������� $1,868 $7,481 $11,617 $34,923 $92,085 $169,709 $371,945

Assisted Institutions** ***

Number of institutions ������������������������������������������������������������ 0 0 0 0 0 8 5

Total assets����������������������������������������������������������������������������� $0 $0 $0 $0 $0 $1,917,482 $1,306,042

* Quarterly financial statement results are unaudited. NM - Not meaningf

** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act

(Dodd-Frank) temporarily provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012

*** Through June 30

  Total assets are based on final Call Reports submitted by failed institutions

** ***Assisted institutions represent five institutions under a single holding company that received assistance in 2008, and eight institutions under a different single holding company that 

received assistance in 2009
FDIC Quarterly 18 2013, Volume 7, No. 3

Table III-B. Estimated FDIC-Insured Deposits by Type of Institution

(dollar figures in millions) 

June 30, 2013

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ����������������������������������������������� 5,980 $13,350,127 $8,588,632 $5,247,808

 FDIC-Supervised ������������������������������������������������������������������� 3,937 2,122,139 1,647,110 1,245,493

 OCC-Supervised�������������������������������������������������������������������� 1,194 9,237,522 5,660,457 3,277,716

 Federal Reserve-Supervised������������������������������������������������� 849 1,990,467 1,281,065 724,600

FDIC-Insured Savings Institutions ���������������������������������������������� 960 1,059,548 806,919 691,505

 OCC-Supervised Savings Institutions ����������������������������������� 522 718,429 548,646 474,061

 FDIC-Supervised Savings Institutions����������������������������������� 438 341,119 258,273 217,444

Total Commercial Banks and Savings Institutions ���������������������� 6,940 14,409,675 9,395,551 5,939,313

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks ������������������������������������������������� 9 57,296 28,978 26,1

Total FDIC-Insured Institutions���������������������������������������������������� . 6,949 14,466,971 9,424,529 5,965,5

* Excludes $1.4 trillion in foreign office deposits, which are uninsure

Table IV-B. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending March 31, 2013 (dollar figures in billions)

Annual Rate in Basis Points

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base*

Percent of Total 

Assessment Base

2.50-5.00 1,358 19.32 $1,057 

5.01-7.50 2,591 36.87 2,716 2

7.51-10.00 1,585 22.55 5,818 4

10.01-15.00 837 11.91 2,475 1

15.01-20.00 44 0.63 95 

 20.01-25.00 495 7.04 135 

 25.01-30.00 10 0.14 88 

 30.01-35.00 102 1.45 38 

greater than 35.00 6 0.09 14 0

* Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as 

required by the Dodd-Frank Act
FDIC Quarterly 19 2013, Volume 7, No. 3

Quarterly Banking Profile

Notes to Users

This publication contains financial data and other information for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding 

the comparability of source data and reporting differences 

over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through V-A of 

the FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and savings institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

Securitization, and Asset Sales Activities) aggregate information only for insured commercial banks and state-chartered 

savings banks that file quarterly Call Reports. Table VIII-A 

(Trust Services) aggregates Trust asset and income information collected annually from all FDIC-insured institutions. 

Some tables are arrayed by groups of FDIC-insured institutions based on predominant types of asset concentration, 

while other tables aggregate institutions by asset size and geographic region. Quarterly and full-year data are provided for 

selected indicators, including aggregate condition and income 

data, performance ratios, condition ratios, and structural 

changes, as well as past due, noncurrent, and charge-off information for loans outstanding and other assets.

Tables I-B through IV-B.

A separate set of tables (Tables I-B through IV-B) provides 

comparative quarterly data related to the Deposit Insurance 

Fund (DIF), problem institutions, failed/assisted institutions, 

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by 

the FDIC through the DIF are not included in the FDIC 

Quarterly Banking Profile. U.S. branches of institutions 

headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. 

Efforts are made to obtain financial reports for all active 

institutions. However, in some cases, final financial reports 

are not available for institutions that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. (TFR filers began filing Call Reports effective 

with the quarter ending March 31, 2012.) This information is 

stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required 

to file separate reports. Data from subsidiary institution 

reports are included in the Quarterly Banking Profile tables, 

which can lead to double-counting. No adjustments are made 

for any double-counting of subsidiary data. Additionally, 

certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports. (TFR 

filers began filing Call Reports effective with the quarter ending March 31, 2012.)

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may relocate 

across state lines or change their charters, resulting in an 

inter-regional or inter-industry migration, e.g., institutions 

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Indemnification Assets and Accounting Standards Update No. 2012-

06 – In October 2012, the FASB issued Accounting Standards 

Update (ASU) No. 2012-06, “Subsequent Accounting for an 

Indemnification Asset Recognized at the Acquisition Date as 

a Result of a Government-Assisted Acquisition of a Financial 

Institution,” to address the subsequent measurement of an 

indemnification asset recognized in an acquisition of a financial institution that includes an FDIC loss-sharing agreement. 

This ASU amends ASC Topic 805, Business Combinations 

(formerly FASB Statement No. 141 (revised 2007),”Business 

Combinations”), which includes guidance applicable to FDICassisted acquisitions of failed institutions.

Under the ASU, when an institution experiences a change in 

the cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash 

flows expected to be collected on the assets covered by the 

loss-sharing agreement, the institution should account for the 

change in the measurement of the indemnification asset on 

the same basis as the change in the assets subject to indemnification. Any amortization of changes in the value of the 

indemnification asset should be limited to the lesser of the 

term of the indemnification agreement and the remaining life 

of the indemnified assets.

The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2012. 

For institutions with a calendar year fiscal year, the ASU takes 

effect January 1, 2013. Early adoption of the ASU is permitted. 

The ASU’s provisions should be applied prospectively to any 

new indemnification assets acquired after the date of adoption 

and to indemnification assets existing as of the date of adoption arising from an FDIC-assisted acquisition of a financial 

institution. Institutions with indemnification assets arising 

from FDIC loss-sharing agreements are expected to adopt ASU 

2012-06 for Call Report purposes in accordance with the effective date of this standard. For additional information, refer to 

ASU 2012-06, available at http:// www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.
FDIC Quarterly 20 2013, Volume 7, No. 3

ed accounting principles, institutions may not record the 

effect of this tax change in their balance sheets and income 

statements for financial and regulatory reporting purposes 

until the period in which the law was enacted, i.e., the first 

quarter of 2009.

Troubled Debt Restructurings and Current Market Interest Rates – 

Many institutions are restructuring or modifying the terms of 

loans to provide payment relief for those borrowers who have 

suffered deterioration in their financial condition. Such loan 

restructurings may include, but are not limited to, reductions 

in principal or accrued interest, reductions in interest rates, 

and extensions of the maturity date. Modifications may be 

executed at the original contractual interest rate on the loan, 

a current market interest rate, or a below-market interest rate. 

Many of these loan modifications meet the definition of a 

troubled debt restructuring (TDR).

The TDR accounting and reporting standards are set forth in 

ASC Subtopic 310-40, Receivables – Troubled Debt 

Restructurings by Creditors (formerly FASB Statement No. 

15, “Accounting by Debtors and Creditors for Troubled Debt 

Restructurings,” as amended). This guidance specifies that a 

restructuring of a debt constitutes a TDR if, at the date of 

restructuring, the creditor for economic or legal reasons related to a debtor’s financial difficulties grants a concession to 

the debtor that it would not otherwise consider.

In the Call Report, until a loan that is a TDR is paid in full or 

otherwise settled, sold, or charged off, it must be reported in 

the appropriate loan category, as well as identified as a performing TDR loan, if it is in compliance with its modified 

terms. If a TDR is not in compliance with its modified terms, 

it is reported as a past-due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past 

due and nonaccrual loans. To be considered in compliance 

with its modified terms, a loan that is a TDR must not be in 

nonaccrual status and must be current or less than 30 days past 

due on its contractual principal and interest payments under 

the modified repayment terms. A loan restructured in a TDR 

is an impaired loan. Thus, all TDRs must be measured for 

impairment in accordance with ASC Subtopic 310-10, 

Receivables – Overall (formerly FASB Statement No. 114, 

“Accounting by Creditors for Impairment of a Loan,” as 

amended), and the Call Report Glossary entry for “Loan 

Impairment.” Consistent with ASC Subtopic 310-10, TDRs 

may be aggregated and measured for impairment with other 

impaired loans that share common risk characteristics by using 

historical statistics, such as average recovery period and 

average amount recovered, along with a composite effective 

interest rate. The outcome of such an aggregation approach 

must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call Report 

instructions for loans that are “individually” considered 

impaired instead of the measurement method prescribed in 

ASC Subtopic 450-20, Contingencies – Loss Contingencies 

(formerly FASB Statement No. 5, “Accounting for Contingencies”) for loans not individually considered impaired that 

are collectively evaluated for impairment. When a loan not 

previously considered individually impaired is restructured and 

determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan 

to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the 

methods prescribed in ASC Subtopic 310-10.

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.

Extended Net Operating Loss Carryback Period – The Worker, 

Homeownership, and Business Assistance Act of 2009, which 

was enacted on November 6, 2009, permits banks and other 

businesses, excluding those banking organizations that 

received capital from the U.S. Treasury under the Troubled 

Asset Relief Program, to elect a net operating loss carryback 

period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after 

December 31, 2007, and beginning before January 1, 2010. 

For calendar-year banks, this extended carryback period 

applies to either the 2008 or 2009 tax year. The amount of 

the net operating loss that can be carried back to the fifth 

carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to 

other carryback years.

Under generally accepted accounting principles, banks may 

not record the effects of this tax change in their balance 

sheets and income statements for financial and regulatory 

reporting purposes until the period in which the law was 

enacted, i.e., the fourth quarter of 2009. Therefore, banks 

should recognize the effects of this fourth quarter 2009 tax 

law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in 

their Call Reports for December 31, 2009. Banks should not 

amend their Call Reports for prior quarters for the effects of 

the extended net operating loss carryback period.

The American Recovery and Reinvestment Act of 2009, 

which was enacted on February 17, 2009, permits qualifying 

small businesses, including FDIC-insured institutions, to elect 

a net operating loss carryback period of three, four, or five 

years instead of the usual carryback period of two years for 

any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accept-
FDIC Quarterly 21 2013, Volume 7, No. 3

Quarterly Banking Profile

ASC Topic 805 (formerly Business Combinations and Noncontrolling 

(Minority) Interests) – In December 2007, the FASB issued 

Statement No. 141 (Revised), Business Combinations FAS 

141(R)), and Statement No. 160, Noncontrolling Interests in 

Consolidated Financial Statements (FAS 160). Under FAS 

141(R), all business combinations, including combinations of 

mutual entities, are to be accounted for by applying the acquisition method. FAS 160 defines a noncontrolling interest, also 

called a minority interest, as the portion of equity in an institution’s subsidiary not attributable, directly or indirectly, to the 

parent institution. FAS 160 requires an institution to clearly 

present in its consolidated financial statements the equity 

ownership in and results of its subsidiaries that are attributable 

to the noncontrolling ownership interests in these subsidiaries. 

FAS 141(R) applies prospectively to business combinations for 

which the acquisition date is on or after the beginning of the 

first annual reporting period beginning on or after December 

15, 2008. Similarly, FAS 160 is effective for fiscal years beginning on or after December 15, 2008. Thus, for institutions 

with calendar-year fiscal years, these two accounting standards 

take effect in 2009. Beginning in March 2009, Institution 

equity capital and Noncontrolling interests are separately 

reported in arriving at Total equity capital and Net income.

ASC Topic 820 (formerly FASB Statement No. 157 Fair Value 

Measurements issued in September 2006) and ASC Topic 825 

(formerly FASB Statement No. 159 The Fair Value Option for 

Financial Assets and Financial Liabilities) issued in February 2007 – 

both are effective in 2008 with early adoption permitted in 

2007. FAS 157 defines fair value and establishes a framework 

for developing fair value estimates for the fair value measurements that are already required or permitted under other standards. FASB FSP 157-4, issued in April 2009, provides 

additional guidance for estimating fair value in accordance 

with FAS 157 when the volume and level of activity for the 

asset or liability have significantly decreased. The FSP also 

includes guidance on identifying circumstances that indicate a 

transaction is not orderly. The FSP is effective for interim and 

annual reporting periods ending after June 15, 2009, with early 

adoption permitted for periods ending after March 15, 2009.

Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value go 

through earnings for trading securities and most derivatives. 

Changes in the fair value of available-for-sale securities are 

reported in other comprehensive income. Available-for-sale 

securities and held-to-maturity debt securities are written down 

to fair value if impairment is other than temporary and loans 

held for sale are reported at the lower of cost or fair value.

FAS 159 allows institutions to report certain financial assets 

and liabilities at fair value with subsequent changes in fair 

value included in earnings. In general, an institution may 

elect the fair value option for an eligible financial asset or 

liability when it first recognizes the instrument on its balance 

sheet or enters into an eligible firm commitment.

ASC Topic 715 (formerly FASB Statement No. 158 Employers’ 

Accounting for Defined Benefit Pension and Other Postretirement 

Plans) – refer to previously published Quarterly Banking Profile

notes: http://www2.fdic.gov/qbp/2011mar/qbpnot.html.

ASC Topic 860 (formerly FASB Statement No. 156 Accounting for 

Servicing of Financial Assets) – refer to previously published 

Quarterly Banking Profile notes: http://www2.fdic.gov/

qbp/2011mar/qbpnot.html.

Troubled Debt Restructurings and Accounting Standards Update 

No. 2011-02 – In April 2011, the FASB issued Accounting 

Standards Update (ASU) No. 2011-02, “A Creditor’s 

Determination of Whether a Restructuring Is a Troubled 

Debt Restructuring,” to provide additional guidance to help 

creditors determine whether a concession has been granted to 

a borrower and whether a borrower is experiencing financial 

difficulties. The guidance is also intended to reduce diversity 

in practice in identifying and reporting TDRs. This ASU was 

effective for public companies for interim and annual periods 

beginning on or after June 15, 2011, and should have been 

applied retrospectively to the beginning of the annual period 

of adoption for purposes of identifying TDRs. The measurement of impairment for any newly identified TDRs resulting 

from retrospective application should have been applied prospectively in the first interim or annual period beginning on 

or after June 15, 2011. (For most public institutions, the ASU 

takes effect July 1, 2011, but retrospective application begins 

as of January 1, 2011.) Nonpublic companies should apply the 

new guidance for annual periods ending after December 15, 

2012, including interim periods within those annual periods. 

(For most nonpublic institutions, the ASU took effect 

January 1, 2012.) Early adoption of the ASU was permitted 

for both public and nonpublic entities. Nonpublic entities 

that adopt early are subject to a retrospective identification 

requirement. For additional information, refer to ASU 2011-

02, available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Accounting for Loan Participations – Amended ASC Topic 860 

(formerly FAS 166) modified the criteria that must be met in 

order for a transfer of a portion of a financial asset, such as a 

loan participation, to qualify for sale accounting. These 

changes apply to transfers of loan participations on or after 

the effective date of amended ASC Topic 860 (January 1, 

2010, for banks with calendar year fiscal year), including 

advances under lines of credit that are transferred on or after 

the effective date of amended ASC Topic 860 even if the line 

of credit agreements were entered into before this effective 

date. Therefore, banks with a calendar-year fiscal year must 

account for transfers of loan participations on or after January 

1, 2010, in accordance with amended ASC Topic 860. In 

general, loan participations transferred before the effective 

date of amended ASC Topic 860 are not affected by this new 

accounting standard.

Under amended ASC Topic 860, if a transfer of a portion of 

an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender) 

must evaluate whether the transfer meets all of the conditions 

in this accounting standard to qualify for sale accounting.

Other-Than-Temporary Impairment – When the fair value of an 

investment in an individual available-for-sale or held-tomaturity security is less than its cost basis, the impairment is 

either temporary or other-than-temporary. The amount of the 

total other-than-temporary impairment related to credit loss 

must be recognized in earnings, but the amount of total 

impairment related to other factors must be recognized in 

other comprehensive income, net of applicable taxes. To 

determine whether the impairment is other-than-temporary, 

an institution must apply the applicable accounting guidance 

– refer to previously published Quarterly Banking Profile notes: 

http://www2.fdic.gov/qbp/2011mar/qbpnot.html.
FDIC Quarterly 22 2013, Volume 7, No. 3

ASC Topic 740 (formerly FASB Interpretation No. 48 on Uncertain 

Tax Positions) – refer to previously published Quarterly Banking 

Profile notes: http://www2.fdic.gov/qbp/2011mar/qbpnot.html.

ASC Topic 718 (formerly FASB Statement No. 123 (Revised 2004) 

and Share-Based Payments – refer to previously published 

Quarterly Banking Profile notes: http://www2.fdic.gov/

qbp/2008dec/qbpnot.html.

ASC Topic 815 (formerly FASB Statement No. 133 Accounting for 

Derivative Instruments and Hedging Activities) – refer to previously published Quarterly Banking Profile notes: http://www2.

fdic.gov/qbp/2008dec/qbpnot.html.

Accounting Standards Codification – refer to previously published 

Quarterly Banking Profile notes: http://www2.fdic.gov/

qbp/2011sep/qbpnot.html.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid 

deposit insurance assessments, and other assets.

All other liabilities – bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance assessment base has changed to “average consolidated 

total assets minus average tangible equity” with an additional 

adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the 

assessment base was “assessable deposits” and consisted of DIF 

deposits (deposits insured by the FDIC Deposit Insurance 

Fund) in banks’ domestic offices with certain adjustments.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller- provided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 

2008 under the TARP, the Treasury Department purchase of 

noncumulative perpetual preferred stock and related warrants 

that is treated as Tier 1 capital for regulatory capital purposes 

is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued 

by publicly-traded banks are reflected as well in “Surplus.” 

Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock are classified in 

a bank’s balance sheet as “Other liabilities.”

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land 

acquisition and development.

Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated 

subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including servicing 

rights) included in core capital is limited in accordance with 

supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

ASC Topic 815 (formerly FASB Statement No. 155 Accounting for 

Certain Hybrid Financial Instruments) – refer to previously published Quarterly Banking Profile notes: http://www2.fdic.gov/

qbp/2011mar/qbpnot.html.

GNMA Buy-back Option – If an issuer of GNMA securities has 

the option to buy back the loans that collateralize the 

GNMA securities, when certain delinquency criteria are met, 

ASC Topic 860 (formerly FASB Statement No. 140) requires 

that loans with this buy-back option must be brought back on 

the issuer’s books as assets. The rebooking of GNMA loans is 

required regardless of whether the issuer intends to exercise 

the buy-back option. The banking agencies clarified in May 

2005 that all GNMA loans that are rebooked because of 

delinquency should be reported as past due according to their 

contractual terms.

ASC Topics 860 & 810 (formerly FASB Statements 166 & 167) – 

In June 2009, the FASB issued Statement No. 166, 

Accounting for Transfers of Financial Assets (FAS 166), and 

Statement No. 167, Amendments to FASB Interpretation 

No. 46(R) (FAS 167), which change the way entities account 

for securitizations and special purpose entities. FAS 166 

revised FASB Statement No. 140, Accounting for Transfers 

and Servicing of Financial Assets and Extinguishments of 

Liabilities, by eliminating the concept of a “qualifying specialpurpose entity,” creating the concept of a “participating interest,” changing the requirements for derecognizing financial 

assets, and requiring additional disclosures. FAS 167 revised 

FASB Interpretation No. 46(R), Consolidation of Variable 

Interest Entities, by changing how a bank or other company 

determines when an entity that is insufficiently capitalized or 

is not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under 

FAS 167, a bank must perform a qualitative assessment to 

determine whether its variable interest or interests give it a 

controlling financial interest in a VIE. If a bank’s variable 

interest or interests provide it with the power to direct the 

most significant activities of the VIE, and the right to receive 

benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE.

Both FAS 166 and FAS 167 take effect as of the beginning of 

each bank’s first annual reporting period that begins after 

November 15, 2009, for interim periods therein, and for interim and annual reporting periods thereafter (i.e., as of January 

1, 2010, for banks with a calendar year fiscal year). Earlier 

application is prohibited. Banks are expected to adopt FAS 

166 and FAS 167 for Call Report purposes in accordance with 

the effective date of these two standards. Also, FAS 166 has 

modified the criteria that must be met in order for a transfer of 

a portion of a financial asset, such as a loan participation, to 

qualify for sale accounting. These changes apply to transfers of 

loan participations on or after the effective date of FAS 166. 

Therefore, banks with a calendar year fiscal year must account 

for transfers of loan participations on or after January 1, 2010, 

in accordance with FAS 166. In general, loan participations 

transferred before the effective date of FAS 166 (January 1, 

2010, for calendar year banks) are not affected by this new 

accounting standard and pre-FAS 166 participations that were 

properly accounted for as sales under FASB Statement No. 

140 will continue to be reported as having been sold.
FDIC Quarterly 23 2013, Volume 7, No. 3

Quarterly Banking Profile

Estimated insured deposits – in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Beginning March 31, 2008, for institutions that file Call 

Reports, insured deposits are total assessable deposits minus 

estimated uninsured deposits. Beginning September 30, 2009, 

insured deposits include deposits in accounts of $100,000 to 

$250,000 that are covered by a temporary increase in the 

FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and 

Consumer Protection Act enacted on July 21, 2010, made 

permanent the standard maximum deposit insurance amount 

(SMDIA) of $250,000. Also, the Dodd-Frank Act amended 

the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit 

insurance account category. All funds held in noninterestbearing transaction accounts were fully insured, without limit, 

from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on 

the balance sheet—including trading assets and liabilities, 

available-for-sale securities, loans held for sale, assets and 

liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods 

of market stress, the fair values of some financial instruments 

and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as 

reported by Call Report filers and by TFR filers.

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 

seller-provided credit enhancements provided by the reporting bank to securitizations.

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off.

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.
FDIC Quarterly 24 2013, Volume 7, No. 3

Reserves for losses – the allowance for loan and lease losses on 

a consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms.

Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total (consolidated) assets. The basic yardstick of bank 

profitability.

Return on equity – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total equity capital.

Risk-based capital groups – definition:

(Percent)

Total 

Risk-Based 

Capital*

Tier 1

Risk-Based 

Capital*

Tier 1 

Leverage

Tangible

Equity

Well-capitalized ≥10 and ≥6 and ≥5 –

Adequately 

capitalized ≥8 and ≥4 and ≥4 –

Undercapitalized ≥6 and ≥3 and ≥3 –

Significantly 

undercapitalized <6 or <3 or <3 and >2

Critically 

undercapitalized – – – ≤2

* As a percentage of risk-weighted assets.

Risk Categories and Assessment Rate Schedule – The current risk 

categories became effective January 1, 2007. Capital ratios 

and supervisory ratings distinguish one risk category from 

another. Effective April 1, 2011, risk categories for large institutions (generally those with at least $10 billion in assets) are 

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.

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.
FDIC Quarterly 25 2013, Volume 7, No. 3

Quarterly Banking Profile

Beginning in 2007, each institution is assigned a risk-based 

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment is generally 

due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are 

effective for assessment purposes as of the examination transmittal date.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special 

assessment as of June 30, 2009. The special assessment was 

levied on each insured depository institution’s assets minus 

its Tier 1 capital as reported in its report of condition as of 

June 30, 2009. The special assessment was collected 

September 30, 2009, at the same time that the risk-based 

assessment for the second quarter of 2009 was collected. 

The special assessment for any institution was capped at 

10 basis points of the institution’s assessment base for the 

second quarter of 2009 risk-based assessment.

Prepaid Deposit Insurance Assessments – In November 2009, 

the FDIC Board of Directors adopted a final rule requiring 

insured depository institutions (except those that are 

exempted) to prepay their quarterly risk-based deposit 

insurance assessments for the fourth quarter of 2009, and 

for all of 2010, 2011, and 2012, on December 30, 2009. 

For regulatory capital purposes, an institution may assign 

a zero-percent risk weight to the amount of its prepaid 

deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment 

program, this program ended with the final application of 

prepaid assessments to the quarterly deposit insurance 

assessments payable March 29, 2013. The FDIC issued 

refunds of any unused prepaid deposit insurance assessments on June 28, 2013.

Risk-weighted assets – assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 200 percent. A conversion factor is used to assign 

a balance sheet equivalent amount for selected off-balancesheet accounts.

Securities – excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated as 

“held-to-maturity,” which are reported at amortized cost 

(book value), and securities designated as “available-for-sale,” 

reported at fair (market) value.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments 

for income taxes. Thrift Financial Report (TFR) filers also 

include gains (losses) on the sales of assets held for sale. 

(TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have 

been securitized, except an interest that is a form of recourse 

or other seller-provided credit enhancement. Seller’s interests 

differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is 

generally equal to the total principal amount of the pool of 

assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the 

form of securities issued to investors.

The base assessment rates for small institutions in Risk 

Category I are based on a combination of financial ratios and 

CAMELS component ratings (the financial ratios method).

As required by Dodd-Frank, the calculation of risk-based 

assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based 

on CAMELS ratings and certain forward-looking financial 

measures combined into two scorecards—one for most large 

institutions and another for the remaining very large institutions that are structurally and operationally complex or that 

pose unique challenges and risks in case of failure (highly 

complex institutions). In general, a highly complex institution is an institution (other than a credit card bank) with 

more than $500 billion in total assets that is controlled by a 

parent or intermediate parent company with more than $500 

billion in total assets or a processing bank or trust company 

with total fiduciary assets of $500 billion or more. The FDIC 

retains its ability to take additional information into account 

to make a limited adjustment to an institution’s total score 

(the large bank adjustment), which will be used to determine 

an institution’s initial base assessment rate.

Effective April 1, 2011, the three possible adjustments to 

an institution’s initial base assessment rate are as follows: 

(1) Unsecured Debt Adjustment: An institution’s rate may 

decrease by up to 5 basis points for unsecured debt. The unsecured debt adjustment cannot exceed the lesser of 5 basis 

points or 50 percent of an institution’s initial base assessment 

rate (IBAR). Thus, for example, an institution with an IBAR 

of 5 basis points would have a maximum unsecured debt 

adjustment of 2.5 basis points and could not have a total base 

assessment rate lower than 2.5 basis points. (2) Depository 

Institution Debt Adjustment: For institutions that hold longterm unsecured debt issued by another insured depository 

institution, a 50 basis point charge is applied to the amount 

of such debt held in excess of 3 percent of an institution’s 

Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for 

small institutions that are not in Risk Category I and for large 

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.
FDIC Quarterly 26 2013, Volume 7, No. 3

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.

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.

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