quarterly banking profile: second quarter 2019 · from the year-ago quarter, while less than 4...

FDIC QUARTERLY A

Quarterly

2019 Volume 13, Number 3

Federal Deposit Insurance Corporation

Quarterly Banking Profile: Second Quarter 2019

Highlights:■ Net Income Rises 4.1 Percent to $62.6 Billion on

Higher Net Interest Income■ Total Loan and Lease Balances Expand 4.5 Percent

From 12 Months Ago■ Community Bank Net Income Rises 8.1 Percent Year

Over Year■ Community Bank Annual Loan Growth Rate Remains

Strong at 6.3 Percent■ DIF Reserve Ratio Rises 4 Basis Points to 1.40 Percent■ Small Bank Credits Will Be Applied to Second Quarter

Assessments

FDIC QUARTERLY

The FDIC Quarterly is published by the Division of Insurance and Research of the Federal Deposit Insurance Corporation and contains a comprehensive summary of the most current financial results for the banking industry. Feature articles appearing in the FDIC Quarterly range from timely analysis of economic and banking trends at the national and regional level that may affect the risk exposure of FDIC-insured institutions to research on issues affecting the banking system and the development of regulatory policy.

Single copy subscriptions of the FDIC Quarterly can be obtained through the FDIC Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226. E-mail requests should be sent to [email protected]. Change of address information also should be submitted to the Public Information Center.

The FDIC Quarterly is available online by visiting the FDIC website at www.fdic.gov. To receive e-mail notification of the electronic release of the FDIC Quarterly and the individual feature articles, subscribe at www.fdic.gov/about/subscriptions/index.html.

Chairman Jelena McWilliams

Director, Division of Insurance and Research Diane Ellis

Executive Editor George French

Managing Editors Rosalind Bennett Alan Deaton Patrick Mitchell Shayna M. Olesiuk Philip A. Shively

Editors Clayton Boyce Kathy Zeidler

Publication Manager Lynne Montgomery

Media Inquiries (202) 898-6993

mailto:[email protected]

www.fdic.gov

www.fdic.gov/about/subscriptions/index.html

FDIC QUARTERLY i

2019 FDIC QUARTERLYV o l u m e 1 3 • N u m b e r 3

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 2019FDIC-insured institutions reported aggregate net income of $62.6 billion in second quarter 2019, an increase of $2.5 billion (4.1 percent) from a year earlier. Improvement in quarterly net income was attributable to higher net interest income and an increase in realized securities gains. Almost 60 percent of all banks reported annual increases in net income from the year-ago quarter, while less than 4 percent of banks were unprofitable during the second quarter. See page 1.

Community Bank Performance Community banks—which represent 92 percent of insured institutions—reported net income of $6.9 billion in second quarter 2019, up $522.2 million (8.1 percent) from a year earlier. Growth in net interest income (up 5.1 percent), noninterest income (up 4.7 percent), and gains on securities sales (up 656.7 percent) drove the annual increase in net income, which was partially offset by an increase in noninterest expense (up 5.6 percent) and a modest increase in provision expense (up 2.3 percent). See page 15.

Insurance Fund Indicators The Deposit Insurance Fund (DIF) balance increased by $2.6 billion during the quarter to $107.4 billion on June 30, driven by assessment income and unrealized gains on available-for-sale securities. The DIF’s reserve ratio (the fund balance as a percent of estimated insured deposits) was 1.40 percent on June 30, 2019, up from 1.36 on March 31, 2019, and up from 1.33 percent on June 30, 2018. See page 23.

2019 FDIC QUARTERLY

QUARTERLY BANKING PROFILE Second Quarter 2019

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Net Income Rises 4.1 Percent to $62.6 Billion on Higher Net Interest IncomeNet Interest Margin Remains Stable at 3.39 PercentTotal Loan and Lease Balances Expand 4.5 Percent From 12 Months AgoNoncurrent Rate Improves and Net Charge-Off Rate Remains StableFive New Banks Are Added in Second Quarter 2019

Net Income Rises 4.1 Percent to $62.6 Billion on Higher Net Interest Income

During the three months ended June 30, quarterly net income for the 5,303 FDIC-insured commercial banks and savings institutions totaled $62.6 billion, an increase of $2.5 billion (4.1 percent) from a year ago. Improvement in quarterly net income was attributable to higher net interest income and an increase in realized securities gains. Almost 60 percent of all banks reported annual increases in net income from the year-ago quarter, while less than 4 percent of banks were unprofitable during the second quarter.1 The average return on assets increased to 1.38 percent from 1.37 percent in second quarter 2018.

Net Interest Income Expands 3.7 Percent From a Year Earlier

Net interest income of $139 billion increased by $4.9 billion (3.7 percent) from a year earlier, the slowest year-over-year growth rate since fourth quarter 2015. Slightly more than three-quarters of all banks (75.1 percent) reported an increase in net interest income from second quarter 2018. Net interest margin for the banking industry was 3.39 percent during the quarter, up slightly from 3.38 percent a year ago but below a recent high of 3.48 percent in fourth quarter 2018. Since year-end 2018, the average yield on earning assets rose by 1 basis point, while the average cost of funding increased by 11 basis points. During this period, the largest increase in the average cost of funding was among banks with assets from $1 billion to $10 billion.

Loan-Loss Provisions Increase More Than 9 Percent From Second Quarter 2018

Banks set aside $12.8 billion in loan-loss provisions during the second quarter, an increase of $1.1 billion (9.3 percent) from a year earlier. More than one-third of all banks (36.1 percent) reported year-over-year increases in loan-loss provisions. Loan-loss provisions as a percent-age of net operating revenue increased from 5.80 percent in second quarter 2018 to 6.25 percent.

Securities and Other Gains/Losses, NetNet Operating Income

Quarterly Net IncomeAll FDIC-Insured Institutions$ Billions

Source: FDIC.

-20

-10

0

10

20

30

40

50

60

70

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

62.6

Chart 1

Quarterly Noninterest Income Quarterly Net Interest Income

Quarterly Net Operating Revenue All FDIC-Insured Institutions

$ Billions

Source: FDIC.

020406080

100120140160180200220

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

205.2

Chart 2

1 Methodology used for calculating industry participation counts consists of institutions existing in both reporting periods.

2019 • Volume 1 3 • Number 3

2 FDIC QUARTERLY

Noninterest Income Falls 2.7 Percent From a Year Earlier

Noninterest income fell by $1.8 billion (2.7 percent) from 12 months ago, although less than half of all banks (41 percent) reported declines. The overall decline in noninterest income was driven primarily by servicing fees, which fell by $3.1 billion from a year ago to negative $332.7 million, and investment banking fees, which declined by $533.5 million (16.1 percent). Increases in all other noninterest income (up $1.2 billion, or 3.8 percent) and trading revenue (up $742.5 million, or 9.8 percent) helped offset the decline in noninterest income during the year.

Noninterest Expense Increases From Second Quarter 2018

Noninterest expense rose by $1.6 billion (1.4 percent) from a year ago. The increase was widespread with 75.3 percent of all banks contributing to the growth. Salary and employee benefits rose by $1.8 billion (3.2 percent) from a year ago, as average assets per employee increased from $8.4 million to $8.8 million.

Net Charge-Offs Rise 9.3 Percent From a Year Ago

Banks charged off $12.8 billion in uncollectable loans during the second quarter, up $1.1 billion (9.3 percent) from a year ago. The overall increase in net charge-offs was led by credit card balances (up $669.4 million, or 8.3 percent) and commercial and industrial loans (up $368.9 million, or 25.2 percent). The average net charge-off rate increased modestly from 0.48 percent in second quarter 2018 to 0.50 percent. The net charge-off rate for commercial and industrial loans rose 5 basis points from a year ago to 0.33 percent, while the net charge-off rate for credit cards rose by 12 basis points from a year ago to 4.03 percent, surpassing the 4 percent level for the first time since second quarter 2012.

Noncurrent Loan Rate Improves to 0.93 Percent

Noncurrent loan balances (90 days or more past due or in nonaccrual status) declined by $4.9 billion (4.8 percent) from first quarter 2019. Slightly more than half of all banks (50.6 percent) reported declines in noncurrent loan balances. The quarter-over-quarter improvement was reflected in residential mortgages, which fell by $2.1 billion (5 percent), and credit card balances, which declined by $1.1 billion (8.7 percent). The average noncur-rent rate declined by 6 basis points from the previous quarter to 0.93 percent.

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O RateAll FDIC-Insured Institutions

0

1

2

3

4

5

6Quarterly Net Charge-O� RateNoncurrent Rate

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 3

Source: FDIC.Note: Loan-loss reserves to noncurrent loans and leases.

$ Billions Coverage Ratio (Percent)

Reserve Coverage RatioAll FDIC-Insured Institutions

050

100150200250300350400450

020406080

100120140160180

Loan-Loss Reserves ($) Noncurrent Loans ($) Noncurrents Adjusted for GNMA Guaranteed Loans ($)

Coverage Ratio (%) Coverage Adjusted for GNMA Guaranteed Loans (%)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 4

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Loan-Loss Reserves Decline Modestly From the Previous Quarter

Loan-loss reserves totaled $124.9 billion at the end of second quarter, down $292.5 million (0.2 percent) from the first quarter. Just over one-quarter of all banks (26.3 percent) reported quarterly declines in loan-loss reserves. At banks that itemize their loan-loss reserves, which are banks with total assets of $1 billion or more and represent 91 percent of total industry loan-loss reserves, the quarterly decline was attributable to residential real estate (down $762.7 million, or 6.5 percent) and credit cards (down $59.3 million, or 0.1 percent). Loan-loss reserves for commercial loans increased by $445.2 million (1.4 percent) from the previ-ous quarter.

Total Assets Increase From First Quarter 2019

Total assets rose by $177.3 billion (1 percent) from the previous quarter. Cash and balances due from depository institutions declined by $81.5 billion (4.8 percent). Banks increased their investment securities by $54.8 billion (1.5 percent), as mortgage-backed securities rose by $65 billion (2.9 percent) and state and municipal securities declined by $14.5 billion (4.5 percent). After reaching an all-time high of 35.8 percent in second quarter 2018, the percentage of industry assets maturing or repricing in more than three years continued to decline, falling to 35.1 percent in the second quarter.

Loan Balances Increase From the Previous Quarter and a Year Ago

Total loan and lease balances rose by $152.3 billion (1.5 percent) from first quarter 2019. Almost three-quarters of all banks (72.7 percent) reported quarterly increases in their loan and lease balances. All major loan categories reported quarter-over-quarter increases, led by consumer loans, which rose by $42.2 billion (2.5 percent), and residential mortgage loans, which increased by $38.3 billion (1.8 percent).2 Over the past year, total loan and lease balances rose by $443 billion (4.5 percent), a modest increase from the 4.1 percent annual growth rate reported last quarter. Commercial and industrial loans had the largest dollar increase from a year ago, increasing by $142.8 billion (6.9 percent).

Held-to-Maturity SecuritiesAvailable-for-Sale Securities

Unrealized Gains (Losses) on Investment SecuritiesAll FDIC-Insured Institutions

$ Billions

Source: FDIC.

-100

-80

-60

-40

-20 0

20

40

60

80

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

35

Chart 5Quarterly Change in Loan Balances All FDIC-Insured Institutions

Source: FDIC.Note: FASB Statements 166 and 167 resulted in the consolidation of large amounts of securitized loan balances back onto banks’ balance sheets in the �rst quarter of 2010. Although the total amount consolidated cannot be precisely quanti�ed, the industry would have reported a decline in loan balances for the quarter absent this change in accounting standards.

$ Billions Percent

-300

-200

-100

0

100

200

300

-10-8-6-4-202468

Quarterly Change (Le� Axis)12-Month Growth Rate (Right Axis)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

152

Chart 6

2 Consumer loans include credit card balances.


4 FDIC QUARTERLY

Deposits Increase From First Quarter 2019

Total deposit balances increased by $114 billion (0.8 percent) from the previous quarter, as deposits in foreign offices increased by $51.3 billion (4.1 percent) and domestic office depos-its rose by $62.7 billion (0.5 percent). Domestic deposits in noninterest-bearing accounts rose by $37.2 billion (1.2 percent), while interest-bearing deposits increased by $25.5 billion (0.3 percent). Nondeposit liabilities increased by $25.1 billion (1.2 percent) from the previous quarter, as other liabilities rose by $25.2 billion (6.2 percent).

Equity Capital Rises From the Previous Quarter

Equity capital rose to $2.1 trillion in the second quarter, up $38.6 billion (1.9 percent) from the previous quarter, led by accumulated other comprehensive income. Declared dividends totaled $48.6 billion, an increase of $10.8 billion (28.6 percent) from second quarter 2018. At the end of second quarter, 16 insured institutions with $2.2 billion in total assets were below the requirements for the well-capitalized category as defined for Prompt Corrective Action purposes.

Five New Banks Are Added in Second Quarter 2019

The number of FDIC-insured commercial banks and savings institutions declined from 5,362 to 5,303 during the three months ended June 30. Five new banks were added during the second quarter, 60 institutions were absorbed by mergers, and one bank failed. The number of institutions on the FDIC’s “Problem Bank List” declined from 59 to 56 at the end of second quarter, the lowest number since first quarter 2007. Total assets of problem banks increased from $46.7 billion to $48.5 billion.

Author: Benjamin Tikvina Senior Financial Analyst Division of Insurance and Research

Source: FDIC.

Number

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

0

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

300

350

400

450

500Assets ($ Billions)

Number of Problem Banks Assets of Problem Banks

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 7


FDIC QUARTERLY 5

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions*2019** 2018** 2018 2017 2016 2015 2014

Return on assets (%) 1.36 1.33 1.35 0.97 1.04 1.04 1.01Return on equity (%) 12.01 11.81 11.98 8.60 9.27 9.29 9.01Core capital (leverage) ratio (%) 9.81 9.74 9.70 9.63 9.48 9.59 9.44Noncurrent assets plus other real estate owned to assets (%) 0.57 0.64 0.60 0.73 0.86 0.97 1.20Net charge-offs to loans (%) 0.50 0.49 0.48 0.50 0.47 0.44 0.49Asset growth rate (%) 4.19 2.71 3.03 3.79 5.09 2.66 5.59Net interest margin (%) 3.40 3.36 3.40 3.25 3.13 3.07 3.14Net operating income growth (%) 4.96 27.24 45.45 -3.27 4.43 7.11 -0.73Number of institutions reporting 5,303 5,542 5,406 5,670 5,913 6,182 6,509 Commercial banks 4,630 4,834 4,715 4,918 5,112 5,338 5,607 Savings institutions 673 708 691 752 801 844 902Percentage of unprofitable institutions (%) 3.68 3.92 3.39 5.61 4.48 4.82 6.27Number of problem institutions 56 82 60 95 123 183 291Assets of problem institutions (in billions) $49 $54 $48 $14 $28 $47 $87Number of failed institutions 1 0 0 8 5 8 18

* Excludes insured branches of foreign banks (IBAs).** Through June 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending June 30.

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

(dollar figures in millions) 2nd Quarter

20191st Quarter

20192nd Quarter

2018%Change

18Q2-19Q2

Number of institutions reporting 5,303 5,362 5,542 -4.3Total employees (full-time equivalent) 2,069,218 2,065,597 2,077,005 -0.4CONDITION DATATotal assets $18,267,235 $18,089,969 $17,532,880 4.2 Loans secured by real estate 4,963,895 4,902,382 4,831,844 2.7 1-4 Family residential mortgages 2,160,307 2,122,039 2,090,369 3.3 Nonfarm nonresidential 1,473,823 1,457,778 1,421,846 3.7 Construction and development 357,120 353,646 346,820 3.0 Home equity lines 358,451 365,370 389,049 -7.9 Commercial & industrial loans 2,214,578 2,202,051 2,071,790 6.9 Loans to individuals 1,748,022 1,705,831 1,658,206 5.4 Credit cards 881,143 859,946 837,186 5.3 Farm loans 81,601 78,535 79,836 2.2 Other loans & leases 1,293,931 1,260,929 1,217,313 6.3 Less: Unearned income 2,347 2,347 2,346 0.0 Total loans & leases 10,299,680 10,147,381 9,856,644 4.5 Less: Reserve for losses 124,887 125,180 123,424 1.2 Net loans and leases 10,174,793 10,022,201 9,733,220 4.5 Securities 3,779,176 3,724,355 3,633,322 4.0 Other real estate owned 6,361 6,555 7,612 -16.4 Goodwill and other intangibles 397,154 399,310 391,772 1.4 All other assets 3,909,751 3,937,548 3,766,954 3.8

Total liabilities and capital 18,267,235 18,089,969 17,532,880 4.2 Deposits 14,039,675 13,925,694 13,468,691 4.2 Domestic office deposits 12,747,618 12,684,906 12,235,403 4.2 Foreign office deposits 1,292,057 1,240,788 1,233,288 4.8 Other borrowed funds 1,496,881 1,505,756 1,494,292 0.2 Subordinated debt 68,946 68,853 67,197 2.6 All other liabilities 564,021 530,165 518,861 8.7 Total equity capital (includes minority interests) 2,097,713 2,059,501 1,983,838 5.7 Bank equity capital 2,094,600 2,056,019 1,980,357 5.8

Loans and leases 30-89 days past due 60,729 64,196 59,288 2.4Noncurrent loans and leases 95,680 100,545 104,832 -8.7Restructured loans and leases 52,879 55,262 57,606 -8.2Mortgage-backed securities 2,282,678 2,217,641 2,156,747 5.8Earning assets 16,485,316 16,350,347 15,852,101 4.0FHLB Advances 533,185 521,067 583,973 -8.7Unused loan commitments 8,048,558 7,988,966 7,736,524 4.0Trust assets 20,621,589 20,144,341 20,302,438 1.6Assets securitized and sold 550,767 571,777 642,669 -14.3Notional amount of derivatives 207,258,101 203,961,596 209,843,315 -1.2

INCOME DATAFirst Half

2019First Half

2018 %Change2nd Quarter

20192nd Quarter

2018%Change

18Q2-19Q2

Total interest income $359,698 $316,552 13.6 $180,661 $161,925 11.6Total interest expense 81,649 51,328 59.1 41,630 27,803 49.7 Net interest income 278,050 265,224 4.8 139,031 134,122 3.7Provision for loan and lease losses 26,694 24,130 10.6 12,818 11,724 9.3Total noninterest income 131,566 135,299 -2.8 66,185 67,997 -2.7Total noninterest expense 230,112 228,929 0.5 115,068 113,432 1.4Securities gains (losses) 1,992 421 372.7 1,121 176 535.9Applicable income taxes 31,574 31,675 -0.3 15,988 16,786 -4.8Extraordinary gains, net* 169 -188 N/M 177 -180 N/M Total net income (includes minority interests) 123,397 116,022 6.4 62,639 60,172 4.1 Bank net income 123,267 115,872 6.4 62,574 60,115 4.1Net charge-offs 25,505 23,748 7.4 12,773 11,685 9.3Cash dividends 87,184 68,359 27.5 48,600 37,806 28.6Retained earnings 36,083 47,513 -24.1 13,974 22,308 -37.4 Net operating income 121,622 115,872 5.0 61,558 60,214 2.2

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


6 FDIC QUARTERLY

TABLE III-A. Second Quarter 2019, All FDIC-Insured InstitutionsAsset Concentration Groups*

SECOND QUARTER (The way it is...)

All Insured Institutions

Credit Card

BanksInternational

BanksAgricultural

BanksCommercial

LendersMortgage

LendersConsumer

Lenders

Other Specialized <$1 Billion

All Other <$1 Billion

All Other >$1 Billion

Number of institutions reporting 5,303 11 5 1,329 2,803 388 70 220 426 51 Commercial banks 4,630 10 5 1,317 2,519 105 50 198 384 42 Savings institutions 673 1 0 12 284 283 20 22 42 9Total assets (in billions) $18,267.2 $521.0 $4,488.8 $291.1 $6,584.1 $355.5 $222.4 $37.7 $75.6 $5,691.0 Commercial banks 17,098.0 428.9 4,488.8 285.1 6,142.4 110.3 114.3 33.3 65.9 5,429.1 Savings institutions 1,169.2 92.0 0.0 6.0 441.7 245.3 108.1 4.4 9.8 261.9Total deposits (in billions) 14,039.7 350.2 3,211.8 239.3 5,137.0 275.4 183.0 29.7 63.2 4,550.1 Commercial banks 13,115.3 281.6 3,211.8 236.2 4,808.0 86.0 91.8 26.6 55.5 4,317.8 Savings institutions 924.3 68.6 0.0 3.0 329.1 189.3 91.1 3.1 7.7 232.4Bank net income (in millions) 62,574 4,188 13,931 968 20,419 1,003 798 286 272 20,710 Commercial banks 58,787 3,444 13,931 950 19,406 475 519 114 249 19,700 Savings institutions 3,787 744 0 18 1,014 528 279 172 24 1,009

Performance Ratios (annualized, %)Yield on earning assets 4.41 12.87 3.78 4.80 4.53 3.87 5.27 3.59 4.41 3.91Cost of funding earning assets 1.02 2.33 1.01 0.96 1.02 0.99 1.04 0.62 0.70 0.89 Net interest margin 3.39 10.53 2.77 3.84 3.51 2.88 4.24 2.97 3.71 3.01Noninterest income to assets 1.46 4.43 1.69 0.65 1.07 1.34 1.38 6.47 1.88 1.45Noninterest expense to assets 2.53 7.04 2.36 2.56 2.55 2.57 3.03 5.52 3.62 2.18Loan and lease loss provision to assets 0.28 3.28 0.26 0.18 0.17 0.02 0.57 0.05 0.14 0.17Net operating income to assets 1.36 3.20 1.21 1.31 1.23 1.16 1.40 2.90 1.41 1.45Pretax return on assets 1.73 4.17 1.55 1.53 1.57 1.44 1.88 3.80 1.62 1.85Return on assets 1.38 3.21 1.24 1.34 1.25 1.13 1.44 3.05 1.44 1.46Return on equity 12.07 26.13 11.93 11.32 10.33 10.35 13.41 17.65 11.18 12.96Net charge-offs to loans and leases 0.50 4.33 0.73 0.17 0.19 0.02 0.79 0.15 0.16 0.35Loan and lease loss provision to net charge-offs 100.35 94.48 92.87 149.61 125.60 123.47 103.72 133.34 154.12 95.25Efficiency ratio 55.58 48.15 56.79 59.94 59.18 62.63 54.81 59.92 67.67 51.90% of unprofitable institutions 3.83 0.00 0.00 2.33 3.75 8.51 2.86 6.36 3.99 1.96% of institutions with earnings gains 60.12 63.64 40.00 59.44 61.43 53.09 52.86 58.64 61.74 62.75

Structural Changes New reporters 5 0 0 0 0 0 0 4 1 0 Institutions absorbed by mergers 60 0 1 9 47 0 1 0 2 0 Failed institutions 1 0 0 1 0 0 0 0 0 0

PRIOR SECOND QUARTERS (The way it was...)

Return on assets (%) 2018 1.37 2.73 1.23 1.34 1.28 1.07 1.20 3.76 1.14 1.45 2016 1.06 2.27 0.96 1.23 1.06 0.94 0.96 2.51 0.94 1.01 2014 1.07 3.03 0.87 1.20 1.00 0.87 1.08 2.05 0.89 1.05

Net charge-offs to loans & leases (%) 2018 0.48 4.02 0.50 0.19 0.16 0.01 1.14 0.04 0.09 0.36 2016 0.45 3.28 0.55 0.16 0.22 0.06 0.64 0.27 0.16 0.40 2014 0.50 2.96 0.77 0.13 0.27 0.25 0.45 0.28 0.26 0.25

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


FDIC QUARTERLY 7

TABLE III-A. Second Quarter 2019, All FDIC-Insured Institutions Asset Size Distribution Geographic Regions*

SECOND QUARTER (The way it is...)


Less Than $100

Million

$100 Million to $1 Billion

$1 Billion to $10 Billion


Greater Than $250

BillionNew York Atlanta Chicago

Kansas City Dallas

San Francisco

Number of institutions reporting 5,303 1,230 3,281 651 132 9 640 611 1,143 1,357 1,165 387 Commercial banks 4,630 1,090 2,884 531 116 9 335 558 982 1,311 1,093 351 Savings institutions 673 140 397 120 16 0 305 53 161 46 72 36Total assets (in billions) $18,267.2 $72.7 $1,090.1 $1,716.1 $6,287.9 $9,100.4 $3,318.2 $3,735.2 $4,220.8 $3,745.8 $1,169.1 $2,078.1 Commercial banks 17,098.0 64.5 939.9 1,397.6 5,595.5 9,100.4 2,910.1 3,634.4 4,118.6 3,699.5 1,021.0 1,714.4 Savings institutions 1,169.2 8.2 150.2 318.5 692.3 0.0 408.1 100.8 102.2 46.3 148.1 363.7Total deposits (in billions) 14,039.7 59.9 907.2 1,378.3 4,821.3 6,873.0 2,541.9 2,945.8 3,069.9 2,896.2 943.3 1,642.5 Commercial banks 13,115.3 53.9 788.5 1,133.0 4,267.1 6,873.0 2,234.1 2,869.3 2,996.6 2,860.5 824.8 1,330.0 Savings institutions 924.3 6.1 118.7 245.3 554.2 0.0 307.8 76.5 73.3 35.7 118.5 312.5Bank net income (in millions) 62,574 174 3,660 5,432 22,266 31,043 9,408 13,412 14,209 12,423 4,049 9,072 Commercial banks 58,787 148 3,180 4,675 19,741 31,043 8,548 13,272 13,802 12,285 3,634 7,246 Savings institutions 3,787 25 481 756 2,525 0 861 140 407 138 415 1,826

Performance Ratios (annualized, %)Yield on earning assets 4.41 4.61 4.77 4.76 4.86 3.97 4.38 4.45 3.89 4.40 4.81 5.16Cost of funding earning assets 1.02 0.76 0.92 1.02 1.15 0.93 1.21 0.91 0.88 1.08 0.89 1.11 Net interest margin 3.39 3.86 3.86 3.74 3.71 3.03 3.17 3.54 3.01 3.31 3.92 4.05Noninterest income to assets 1.46 1.45 1.23 1.11 1.47 1.54 1.30 1.49 1.68 1.26 1.29 1.65Noninterest expense to assets 2.53 3.82 3.19 2.82 2.61 2.34 2.44 2.54 2.53 2.37 2.99 2.71Loan and lease loss provision to assets 0.28 0.13 0.14 0.19 0.41 0.23 0.27 0.31 0.19 0.28 0.18 0.49Net operating income to assets 1.36 0.93 1.29 1.24 1.42 1.35 1.12 1.44 1.33 1.30 1.39 1.72Pretax return on assets 1.73 1.12 1.58 1.61 1.84 1.70 1.46 1.82 1.65 1.66 1.70 2.29Return on assets 1.38 0.96 1.35 1.28 1.43 1.37 1.15 1.44 1.34 1.34 1.40 1.75Return on equity 12.07 6.75 11.42 10.64 11.88 12.66 9.51 11.81 12.16 12.97 11.61 15.50Net charge-offs to loans and leases 0.50 0.15 0.11 0.21 0.66 0.51 0.45 0.54 0.41 0.53 0.22 0.77Loan and lease loss provision to net charge-offs 100.35 144.89 173.25 125.72 100.98 93.83 106.24 98.55 92.73 99.17 124.38 101.34Efficiency ratio 55.58 75.65 65.81 61.02 53.22 54.76 58.17 54.15 57.59 55.22 60.74 49.32% of unprofitable institutions 3.83 9.19 2.59 0.77 0.00 0.00 4.38 6.38 4.64 1.92 3.18 5.17% of institutions with earnings gains 60.12 54.31 61.02 65.59 63.64 77.78 58.91 62.68 59.23 58.66 59.74 66.93

Structural Changes New reporters 5 5 0 0 0 0 2 1 2 0 0 0 Institutions absorbed by mergers 60 13 36 9 2 0 12 7 15 12 9 5 Failed institutions 1 1 0 0 0 0 0 0 0 0 1 0

PRIOR SECOND QUARTERS (The way it was…)Return on assets (%) 2018 1.37 1.08 1.27 1.29 1.47 1.34 1.20 1.50 1.30 1.27 1.42 1.76 2016 1.06 0.92 1.10 1.06 1.13 1.02 0.90 0.96 1.01 1.13 1.10 1.54 2014 1.07 0.85 1.01 1.01 1.16 1.03 0.95 0.92 1.05 1.14 1.17 1.46

Net charge-offs to loans & leases (%) 2018 0.48 0.11 0.11 0.27 0.69 0.43 0.60 0.54 0.25 0.49 0.21 0.70 2016 0.45 0.19 0.12 0.21 0.62 0.46 0.46 0.53 0.27 0.52 0.31 0.54 2014 0.50 0.19 0.23 0.32 0.70 0.46 0.75 0.38 0.35 0.64 0.22 0.48



8 FDIC QUARTERLY

TABLE IV-A. First Half 2019, All FDIC-Insured InstitutionsAsset Concentration Groups*

FIRST HALF (The way it is...)


Credit Card

BanksInternational

BanksAgricultural

BanksCommercial

LendersMortgage

LendersConsumer

Lenders




Number of institutions reporting 5,303 11 5 1,329 2,803 388 70 220 426 51 Commercial banks 4,630 10 5 1,317 2,519 105 50 198 384 42 Savings institutions 673 1 0 12 284 283 20 22 42 9Total assets (in billions) $18,267.2 $521.0 $4,488.8 $291.1 $6,584.1 $355.5 $222.4 $37.7 $75.6 $5,691.0 Commercial banks 17,098.0 428.9 4,488.8 285.1 6,142.4 110.3 114.3 33.3 65.9 5,429.1 Savings institutions 1,169.2 92.0 0.0 6.0 441.7 245.3 108.1 4.4 9.8 261.9Total deposits (in billions) 14,039.7 350.2 3,211.8 239.3 5,137.0 275.4 183.0 29.7 63.2 4,550.1 Commercial banks 13,115.3 281.6 3,211.8 236.2 4,808.0 86.0 91.8 26.6 55.5 4,317.8 Savings institutions 924.3 68.6 0.0 3.0 329.1 189.3 91.1 3.1 7.7 232.4Bank net income (in millions) 123,267 8,346 27,851 1,925 39,894 2,071 1,521 569 536 40,554 Commercial banks 115,473 6,725 27,851 1,875 37,856 941 1,022 223 488 38,494 Savings institutions 7,794 1,621 0 50 2,039 1,131 499 347 47 2,061

Performance Ratios (annualized, %)Yield on earning assets 4.40 12.88 3.83 4.74 4.51 3.85 5.25 3.59 4.37 3.90Cost of funding earning assets 1.00 2.33 1.03 0.93 0.99 0.96 1.00 0.61 0.68 0.87 Net interest margin 3.40 10.56 2.80 3.81 3.52 2.89 4.25 2.98 3.69 3.02Noninterest income to assets 1.46 4.25 1.80 0.62 1.05 1.32 1.25 6.34 1.84 1.41Noninterest expense to assets 2.55 6.92 2.45 2.54 2.55 2.56 2.93 5.50 3.60 2.18Loan and lease loss provision to assets 0.30 3.29 0.27 0.13 0.17 0.01 0.58 0.04 0.12 0.20Net operating income to assets 1.35 3.20 1.22 1.32 1.22 1.16 1.36 2.92 1.40 1.42Pretax return on assets 1.71 4.13 1.57 1.53 1.55 1.50 1.84 3.71 1.60 1.80Return on assets 1.36 3.21 1.25 1.33 1.24 1.17 1.38 3.07 1.43 1.43Return on equity 12.01 26.18 11.99 11.45 10.25 10.84 12.96 17.93 11.16 12.78Net charge-offs to loans and leases 0.50 4.32 0.72 0.18 0.18 0.02 0.79 0.13 0.13 0.37Loan and lease loss provision to net charge-offs 104.66 94.25 98.64 104.08 134.93 121.54 104.83 116.28 161.92 105.45Efficiency ratio 55.69 47.78 57.06 60.41 59.26 62.61 53.89 60.49 68.08 52.07% of unprofitable institutions 3.68 0.00 0.00 2.41 3.39 9.28 1.43 6.36 3.29 5.88% of institutions with earnings gains 62.59 72.73 40.00 60.72 64.65 51.80 52.86 62.73 65.96 64.71

Condition Ratios (%)Earning assets to total assets 90.25 95.40 87.41 93.45 90.79 95.10 95.46 92.06 93.07 90.66Loss allowance to: Loans and leases 1.21 4.51 1.43 1.37 0.98 0.62 1.05 1.44 1.28 1.02 Noncurrent loans and leases 130.53 303.96 161.64 116.66 126.54 33.78 163.89 126.40 138.23 96.99Noncurrent assets plus other real estate owned to assets 0.57 1.20 0.37 0.92 0.61 1.19 0.46 0.43 0.67 0.56Equity capital ratio 11.47 12.32 10.46 11.94 12.18 11.05 10.93 17.57 13.09 11.31Core capital (leverage) ratio 9.81 12.00 9.13 11.35 10.19 10.64 10.93 16.62 12.86 9.44Common equity tier 1 capital ratio 13.36 14.07 14.07 14.79 12.26 21.05 17.67 36.04 21.50 13.49Tier 1 risk-based capital ratio 13.44 14.21 14.15 14.80 12.33 21.07 17.90 36.05 21.52 13.56Total risk-based capital ratio 14.79 16.13 15.68 15.88 13.54 21.82 18.91 36.86 22.58 14.96Net loans and leases to deposits 72.47 115.36 51.97 83.12 89.97 79.38 83.60 34.67 68.28 62.76Net loans to total assets 55.70 77.54 37.18 68.31 70.20 61.48 68.79 27.32 57.01 50.18Domestic deposits to total assets 69.78 65.98 47.31 82.19 77.72 77.15 82.27 78.80 83.49 76.85

Structural Changes New reporters 6 0 0 0 1 0 0 4 1 0 Institutions absorbed by mergers 103 0 1 18 78 1 1 1 3 0 Failed institutions 1 0 0 1 0 0 0 0 0 0

PRIOR FIRST HALVES (The way it was...)

Number of institutions 2018 5,542 12 5 1,383 2,894 406 71 245 475 51 2016 6,058 13 4 1,466 3,029 491 63 324 605 63 2014 6,656 16 4 1,493 3,300 569 56 391 765 62

Total assets (in billions) 2018 $17,532.9 $626.4 $4,222.2 $283.8 $6,167.6 $356.4 $216.8 $39.3 $80.8 $5,539.6 2016 16,534.0 502.0 3,966.6 270.7 5,986.3 396.2 200.9 56.4 104.1 5,050.8 2014 15,171.9 601.2 3,802.2 250.6 5,059.2 458.5 212.7 63.1 138.7 4,585.7

Return on assets (%) 2018 1.33 2.71 1.22 1.32 1.24 1.08 1.31 3.64 1.08 1.35 2016 1.02 2.31 0.90 1.22 1.01 0.95 1.00 2.50 0.93 0.97 2014 1.04 3.25 0.82 1.15 0.98 0.82 1.06 1.96 0.86 0.99

Net charge-offs to loans & leases (%) 2018 0.49 4.02 0.53 0.13 0.17 0.02 0.97 0.10 0.13 0.37 2016 0.45 3.27 0.57 0.13 0.22 0.06 0.65 0.17 0.15 0.40 2014 0.51 2.98 0.74 0.10 0.27 0.26 0.50 0.21 0.21 0.30

Noncurrent assets plus OREO to assets (%) 2018 0.64 1.05 0.41 0.88 0.65 1.61 0.47 0.44 0.76 0.71 2016 0.91 0.87 0.66 0.78 0.93 1.80 0.86 0.61 1.02 1.04 2014 1.38 0.78 0.92 0.90 1.42 2.10 0.89 0.84 1.48 1.78

Equity capital ratio (%) 2018 11.30 15.29 10.02 11.31 11.91 11.23 10.35 16.60 11.89 11.12 2016 11.27 14.81 9.95 11.58 11.88 11.59 10.24 15.48 11.98 11.18 2014 11.25 14.61 9.38 11.26 12.05 11.71 9.83 13.99 11.63 11.45



FDIC QUARTERLY 9

TABLE IV-A. First Half 2019, All FDIC-Insured Institutions Asset Size Distribution Geographic Regions*

FIRST HALF (The way it is...)


Less Than $100

Million




Greater Than $250


Kansas City Dallas

San Francisco

Number of institutions reporting 5,303 1,230 3,281 651 132 9 640 611 1,143 1,357 1,165 387 Commercial banks 4,630 1,090 2,884 531 116 9 335 558 982 1,311 1,093 351 Savings institutions 673 140 397 120 16 0 305 53 161 46 72 36Total assets (in billions) $18,267.2 $72.7 $1,090.1 $1,716.1 $6,287.9 $9,100.4 $3,318.2 $3,735.2 $4,220.8 $3,745.8 $1,169.1 $2,078.1 Commercial banks 17,098.0 64.5 939.9 1,397.6 5,595.5 9,100.4 2,910.1 3,634.4 4,118.6 3,699.5 1,021.0 1,714.4 Savings institutions 1,169.2 8.2 150.2 318.5 692.3 0.0 408.1 100.8 102.2 46.3 148.1 363.7Total deposits (in billions) 14,039.7 59.9 907.2 1,378.3 4,821.3 6,873.0 2,541.9 2,945.8 3,069.9 2,896.2 943.3 1,642.5 Commercial banks 13,115.3 53.9 788.5 1,133.0 4,267.1 6,873.0 2,234.1 2,869.3 2,996.6 2,860.5 824.8 1,330.0 Savings institutions 924.3 6.1 118.7 245.3 554.2 0.0 307.8 76.5 73.3 35.7 118.5 312.5Bank net income (in millions) 123,267 361 6,947 10,630 44,047 61,282 18,302 26,252 28,551 24,327 7,808 18,028 Commercial banks 115,473 313 5,995 9,064 38,820 61,282 16,550 25,882 27,785 24,064 7,023 14,169 Savings institutions 7,794 48 952 1,566 5,228 0 1,752 370 765 263 785 3,858

Performance Ratios (annualized, %)Yield on earning assets 4.40 4.55 4.73 4.73 4.84 3.99 4.35 4.46 3.92 4.40 4.78 5.14Cost of funding earning assets 1.00 0.73 0.89 0.99 1.12 0.93 1.18 0.88 0.91 1.05 0.87 1.08 Net interest margin 3.40 3.82 3.84 3.74 3.72 3.06 3.17 3.57 3.01 3.35 3.91 4.06Noninterest income to assets 1.46 1.39 1.17 1.07 1.44 1.57 1.28 1.43 1.80 1.24 1.22 1.60Noninterest expense to assets 2.55 3.68 3.17 2.80 2.60 2.38 2.44 2.51 2.60 2.39 2.96 2.70Loan and lease loss provision to assets 0.30 0.13 0.13 0.18 0.42 0.25 0.29 0.34 0.21 0.29 0.18 0.48Net operating income to assets 1.35 0.97 1.25 1.23 1.41 1.34 1.10 1.41 1.34 1.28 1.36 1.72Pretax return on assets 1.71 1.14 1.51 1.59 1.82 1.69 1.43 1.79 1.69 1.63 1.66 2.27Return on assets 1.36 0.99 1.29 1.26 1.42 1.36 1.13 1.42 1.35 1.32 1.36 1.74Return on equity 12.01 7.10 11.02 10.58 11.89 12.57 9.36 11.68 12.33 12.79 11.40 15.57Net charge-offs to loans and leases 0.50 0.14 0.10 0.19 0.66 0.52 0.46 0.56 0.39 0.52 0.21 0.78Loan and lease loss provision to net charge-offs 104.66 159.22 181.74 132.51 102.76 101.20 110.68 104.94 102.70 104.46 127.71 97.47Efficiency ratio 55.69 74.53 66.40 61.26 53.13 54.99 58.42 53.90 57.66 55.57 60.96 49.42% of unprofitable institutions 3.68 9.27 2.26 1.08 0.00 0.00 4.53 5.40 4.02 2.43 2.92 5.17% of institutions with earnings gains 62.59 56.59 63.46 68.36 67.42 77.78 60.47 65.14 62.82 58.88 64.38 68.99

Condition Ratios (%)Earning assets to total assets 90.25 92.83 93.31 92.39 91.04 88.90 89.92 89.47 88.84 90.51 91.33 93.92Loss allowance to: Loans and leases 1.21 1.39 1.24 1.08 1.23 1.22 1.15 1.19 1.20 1.27 1.02 1.39 Noncurrent loans and leases 130.53 109.76 151.50 143.51 134.96 121.45 127.76 127.04 130.19 114.17 106.16 206.08Noncurrent assets plus other real estate owned to assets 0.57 0.97 0.73 0.62 0.60 0.51 0.54 0.58 0.53 0.62 0.74 0.44Equity capital ratio 11.47 14.36 11.95 12.08 12.07 10.85 12.06 12.29 11.18 10.29 12.13 11.38Core capital (leverage) ratio 9.81 14.01 11.61 11.02 10.21 9.05 10.29 9.67 9.58 9.30 10.48 10.33Common equity tier 1 capital ratio 13.36 22.40 15.91 14.10 13.00 13.09 13.59 12.97 13.51 12.81 13.31 14.45Tier 1 risk-based capital ratio 13.44 22.42 15.94 14.12 13.15 13.12 13.64 13.07 13.55 12.89 13.40 14.56Total risk-based capital ratio 14.79 23.48 17.01 15.09 14.46 14.62 14.93 14.31 14.87 14.73 14.41 15.61Net loans and leases to deposits 72.47 71.64 82.17 88.62 80.20 62.54 72.72 72.90 69.71 68.03 81.91 78.89Net loans to total assets 55.70 59.07 68.38 71.18 61.50 47.23 55.70 57.49 50.71 52.60 66.10 62.36Domestic deposits to total assets 69.78 82.45 83.22 80.07 74.11 63.15 70.52 76.38 63.61 61.43 80.65 78.22

Structural Changes New reporters 6 6 0 0 0 0 2 1 2 0 1 0 Institutions absorbed by mergers 103 19 63 17 4 0 19 13 23 22 18 8 Failed institutions 1 1 0 0 0 0 0 0 0 0 1 0

PRIOR FIRST HALVES (The way it was…)Number of institutions 2018 5,542 1,372 3,399 637 125 9 675 645 1,195 1,412 1,205 410 2016 6,058 1,637 3,690 619 102 10 739 743 1,305 1,519 1,292 460 2014 6,656 1,975 4,007 565 101 8 823 837 1,444 1,629 1,398 525

Total assets (in billions) 2018 $17,532.9 $81.8 $1,112.2 $1,706.7 $5,951.5 $8,680.7 $3,276.4 $3,614.2 $3,957.2 $3,626.7 $1,114.0 $1,944.4 2016 16,534.0 96.7 1,173.6 1,724.1 4,897.6 8,642.0 3,127.7 3,467.9 3,692.0 3,604.1 976.1 1,666.2 2014 15,171.9 116.3 1,234.6 1,492.7 4,761.2 7,567.1 3,047.7 3,049.5 3,480.2 3,310.6 893.3 1,390.7

Return on assets (%) 2018 1.33 1.03 1.23 1.28 1.42 1.29 1.17 1.41 1.29 1.22 1.38 1.70 2016 1.02 0.92 1.07 1.05 1.08 0.97 0.85 0.92 0.97 1.08 1.07 1.44 2014 1.04 0.82 0.96 1.01 1.17 0.98 0.98 0.90 0.92 1.14 1.14 1.44

Net charge-offs to loans & leases (%) 2018 0.49 0.15 0.10 0.22 0.71 0.44 0.61 0.55 0.25 0.51 0.21 0.72 2016 0.45 0.15 0.11 0.20 0.62 0.47 0.47 0.53 0.27 0.53 0.31 0.53 2014 0.51 0.19 0.21 0.28 0.73 0.47 0.75 0.42 0.37 0.63 0.21 0.49

Noncurrent assets plus OREO to assets (%) 2018 0.64 0.99 0.80 0.69 0.63 0.62 0.61 0.72 0.57 0.74 0.76 0.46 2016 0.91 1.17 1.05 0.89 0.83 0.94 0.73 1.08 0.85 1.10 1.05 0.55 2014 1.38 1.62 1.61 1.61 0.93 1.58 0.98 1.90 1.26 1.67 1.34 0.76

Equity capital ratio (%) 2018 11.30 13.36 11.32 11.74 12.14 10.61 12.49 12.08 10.49 10.26 11.55 11.26 2016 11.27 12.97 11.47 11.78 12.21 10.60 12.01 12.37 10.31 10.15 11.21 12.22 2014 11.25 12.15 11.09 11.90 12.72 10.20 11.91 12.42 9.86 10.41 11.16 12.76



10 FDIC QUARTERLY

TABLE V-A. Loan Performance, All FDIC-Insured InstitutionsAsset Concentration Groups*

June 30, 2019 All Insured Institutions

Credit Card

BanksInternational

BanksAgricultural

BanksCommercial

LendersMortgage

LendersConsumer

Lenders




Percent of Loans 30-89 Days Past DueAll loans secured by real estate 0.55 0.15 0.65 0.71 0.41 0.68 0.36 0.95 1.01 0.79 Construction and development 0.37 0.00 0.07 0.84 0.35 0.62 0.20 0.92 1.04 0.42 Nonfarm nonresidential 0.21 0.00 0.21 0.57 0.21 0.22 0.58 0.53 0.73 0.15 Multifamily residential real estate 0.09 0.00 0.06 0.38 0.09 0.11 0.01 0.07 0.33 0.11 Home equity loans 0.61 0.00 1.08 0.49 0.48 0.49 0.40 0.56 0.71 0.67 Other 1-4 family residential 0.90 0.17 0.91 1.01 0.76 0.76 0.33 1.30 1.21 1.12Commercial and industrial loans 0.29 0.80 0.32 0.86 0.27 0.57 0.45 0.97 1.11 0.23Loans to individuals 1.37 1.60 0.97 1.16 1.37 0.99 0.83 1.60 1.58 1.63 Credit card loans 1.28 1.63 0.99 1.09 1.32 0.79 0.73 2.62 2.90 1.13 Other loans to individuals 1.46 1.20 0.90 1.17 1.37 1.00 0.85 1.51 1.47 1.93All other loans and leases (including farm) 0.23 0.74 0.33 0.74 0.19 0.51 0.21 0.65 0.74 0.13Total loans and leases 0.59 1.52 0.58 0.75 0.44 0.67 0.69 1.03 1.05 0.67

Percent of Loans Noncurrent**All real estate loans 1.19 1.71 1.48 1.11 0.79 1.97 1.29 1.30 0.99 1.88 Construction and development 0.45 0.11 0.61 0.55 0.45 0.30 0.99 0.58 0.69 0.38 Nonfarm nonresidential 0.56 51.85 0.56 0.86 0.52 0.51 1.27 1.12 1.08 0.64 Multifamily residential real estate 0.13 0.00 0.06 0.51 0.14 0.98 0.14 2.14 0.58 0.09 Home equity loans 1.95 0.00 3.82 0.36 1.15 0.92 1.66 0.30 0.45 2.78 Other 1-4 family residential 1.83 0.59 1.92 0.85 1.32 2.29 1.27 1.54 0.98 2.43Commercial and industrial loans 0.79 0.65 0.84 1.37 0.86 1.01 0.23 0.79 0.85 0.66Loans to individuals 0.92 1.57 0.88 0.49 0.79 0.42 0.48 0.83 0.62 0.67 Credit card loans 1.31 1.64 1.05 0.47 1.18 0.72 1.27 1.28 2.06 1.12 Other loans to individuals 0.52 0.52 0.29 0.50 0.75 0.40 0.30 0.80 0.50 0.40All other loans and leases (including farm) 0.22 0.02 0.09 1.32 0.35 0.77 0.13 0.66 0.68 0.13Total loans and leases 0.93 1.48 0.88 1.17 0.77 1.84 0.64 1.14 0.92 1.05

Percent of Loans Charged-Off (net, YTD)All real estate loans 0.01 0.02 0.01 0.07 0.02 -0.02 -0.01 0.00 0.04 -0.02 Construction and development -0.01 0.00 0.08 -0.03 -0.01 -0.07 0.00 0.05 -0.05 -0.04 Nonfarm nonresidential 0.04 0.00 0.13 0.07 0.04 0.01 0.04 0.00 0.07 0.03 Multifamily residential real estate 0.00 0.00 0.00 -0.01 0.01 0.00 -0.01 0.00 0.01 0.00 Home equity loans -0.07 0.00 -0.02 -0.03 0.04 -0.22 0.07 0.04 0.05 -0.25 Other 1-4 family residential 0.01 0.03 -0.01 0.03 0.02 -0.01 -0.02 -0.02 0.04 -0.01Commercial and industrial loans 0.30 2.29 0.31 0.29 0.26 0.05 0.60 0.20 0.17 0.26Loans to individuals 2.44 4.54 2.85 0.58 1.19 1.07 1.06 0.52 0.84 1.79 Credit card loans 3.97 4.66 3.50 2.91 4.47 1.81 2.89 1.97 6.20 3.41 Other loans to individuals 0.86 2.51 0.65 0.35 0.90 1.02 0.63 0.40 0.48 0.83All other loans and leases (including farm) 0.12 1.50 0.06 0.36 0.14 0.25 0.03 0.70 0.28 0.12Total loans and leases 0.50 4.32 0.72 0.18 0.18 0.02 0.79 0.13 0.13 0.37

Loans Outstanding (in billions)All real estate loans $4,963.9 $1.1 $560.3 $125.5 $2,833.4 $196.6 $34.4 $7.2 $33.6 $1,171.7 Construction and development 357.1 0.1 16.4 7.4 274.6 5.2 0.6 0.6 2.0 50.2 Nonfarm nonresidential 1,473.8 0.0 55.7 34.9 1,102.3 17.3 2.1 2.4 7.6 251.5 Multifamily residential real estate 444.9 0.0 81.9 4.2 306.7 5.3 0.3 0.2 1.0 45.4 Home equity loans 358.5 0.0 41.6 2.5 190.0 10.5 3.3 0.2 1.2 109.2 Other 1-4 family residential 2,160.3 1.0 316.4 29.2 910.4 157.3 28.0 3.3 18.8 695.8Commercial and industrial loans 2,214.6 39.6 356.6 23.8 1,076.0 6.1 6.4 1.4 3.7 700.9Loans to individuals 1,748.0 382.1 381.3 6.7 382.4 4.4 110.5 1.4 3.6 475.6 Credit card loans 881.1 359.2 294.1 0.6 30.5 0.3 20.6 0.1 0.3 175.6 Other loans to individuals 866.9 22.9 87.2 6.1 351.9 4.1 90.0 1.3 3.3 300.0All other loans and leases (including farm) 1,375.5 0.3 395.6 45.6 377.2 13.0 3.3 0.5 2.7 537.4Total loans and leases (plus unearned income) 10,302.0 423.0 1,693.8 201.7 4,669.0 220.1 154.7 10.5 43.7 2,885.6

Memo: Other Real Estate Owned (in millions)All other real estate owned 6,361.3 0.2 456.8 303.1 4,141.6 166.2 28.5 40.4 103.5 1,120.9 Construction and development 1,591.5 0.0 4.0 56.7 1,358.9 41.1 3.9 18.5 16.1 92.2 Nonfarm nonresidential 1,960.6 0.0 73.0 89.9 1,468.8 18.4 7.7 13.0 45.0 244.7 Multifamily residential real estate 82.0 0.0 1.0 7.5 72.3 0.6 0.0 0.1 0.2 0.3 1-4 family residential 2,464.0 0.2 324.8 53.0 1,141.3 104.7 16.8 8.3 38.3 776.6 Farmland 208.2 0.0 0.0 96.0 100.3 1.4 0.0 0.5 3.9 6.2

* 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

TABLE V-A. Loan Performance, All FDIC-Insured InstitutionsAsset Size Distribution Geographic Regions*

June 30, 2019 All Insured Institutions

Less Than $100

Million


$1 Billion to

$10 Billion


Greater Than $250


Kansas City Dallas

San Francisco

Percent of Loans 30-89 Days Past Due All loans secured by real estate 0.55 1.17 0.58 0.32 0.48 0.74 0.43 0.58 0.56 0.82 0.64 0.25 Construction and development 0.37 0.91 0.55 0.40 0.31 0.31 0.35 0.21 0.29 0.65 0.35 0.44 Nonfarm nonresidential 0.21 0.96 0.41 0.22 0.16 0.14 0.24 0.17 0.24 0.20 0.31 0.12 Multifamily residential real estate 0.09 0.60 0.28 0.10 0.06 0.08 0.08 0.12 0.12 0.09 0.08 0.05 Home equity loans 0.61 0.72 0.49 0.39 0.51 0.77 0.49 0.61 0.72 0.78 0.43 0.30 Other 1-4 family residential 0.90 1.53 0.79 0.47 0.86 1.07 0.74 0.93 0.81 1.29 1.35 0.37Commercial and industrial loans 0.29 1.15 0.64 0.46 0.23 0.26 0.17 0.25 0.33 0.27 0.39 0.41Loans to individuals 1.37 1.75 1.39 1.34 1.36 1.38 1.22 1.94 0.89 1.20 0.89 1.53 Credit card loans 1.28 1.33 2.09 2.86 1.52 1.04 1.38 1.45 0.92 1.14 0.73 1.65 Other loans to individuals 1.46 1.76 1.35 1.05 1.20 1.81 1.09 2.41 0.86 1.31 0.95 1.42All other loans and leases (including farm) 0.23 0.70 0.63 0.27 0.16 0.24 0.08 0.15 0.37 0.27 0.22 0.16Total loans and leases 0.59 1.14 0.62 0.40 0.57 0.65 0.46 0.70 0.53 0.66 0.58 0.58

Percent of Loans Noncurrent** All real estate loans 1.19 1.19 0.79 0.69 1.03 1.79 1.03 1.32 1.34 1.70 1.07 0.40 Construction and development 0.45 0.65 0.71 0.47 0.39 0.33 0.54 0.44 0.60 0.33 0.34 0.45 Nonfarm nonresidential 0.56 1.35 0.71 0.60 0.44 0.61 0.65 0.52 0.64 0.60 0.57 0.33 Multifamily residential real estate 0.13 0.65 0.28 0.15 0.14 0.06 0.13 0.25 0.12 0.12 0.16 0.08 Home equity loans 1.95 0.50 0.53 0.60 1.13 3.17 1.96 1.86 2.02 2.89 0.99 0.55 Other 1-4 family residential 1.83 1.14 0.83 0.98 1.78 2.34 1.64 1.96 1.87 2.51 2.24 0.45Commercial and industrial loans 0.79 1.67 0.98 1.17 0.84 0.66 0.81 0.56 0.80 0.79 0.96 1.18Loans to individuals 0.92 0.77 0.66 0.74 1.09 0.79 1.02 1.09 0.61 0.92 0.74 0.98 Credit card loans 1.31 0.53 1.64 2.52 1.56 1.07 1.56 1.34 0.94 1.21 1.23 1.64 Other loans to individuals 0.52 0.77 0.59 0.39 0.63 0.42 0.56 0.85 0.25 0.44 0.54 0.40All other loans and leases (including farm) 0.22 1.51 1.00 0.45 0.28 0.12 0.20 0.17 0.16 0.28 0.37 0.30Total loans and leases 0.93 1.26 0.82 0.75 0.91 1.01 0.90 0.93 0.92 1.11 0.96 0.67

Percent of Loans Charged-Off (net, YTD) All real estate loans 0.01 0.06 0.02 0.03 0.03 -0.02 0.03 -0.01 0.01 0.01 0.03 0.00 Construction and development -0.01 0.05 -0.02 -0.02 0.00 -0.01 0.03 -0.03 0.03 -0.05 0.00 -0.05 Nonfarm nonresidential 0.04 0.08 0.03 0.04 0.04 0.05 0.05 0.05 0.02 0.06 0.05 0.00 Multifamily residential real estate 0.00 0.03 0.00 0.00 0.01 0.00 0.01 0.03 0.00 0.00 -0.01 0.00 Home equity loans -0.07 0.13 0.02 0.03 0.02 -0.17 0.05 -0.30 0.01 -0.02 0.03 -0.04 Other 1-4 family residential 0.01 0.03 0.02 0.02 0.02 -0.02 0.03 0.01 0.00 -0.01 0.01 -0.01Commercial and industrial loans 0.30 0.30 0.26 0.33 0.35 0.26 0.24 0.29 0.30 0.26 0.29 0.49Loans to individuals 2.44 0.56 1.02 1.88 2.72 2.29 2.49 2.45 1.98 2.78 1.37 2.77 Credit card loans 3.97 3.04 5.79 7.27 4.48 3.46 4.01 4.08 3.37 3.81 2.72 4.85 Other loans to individuals 0.86 0.54 0.72 0.81 0.97 0.76 1.16 0.83 0.51 0.99 0.79 0.88All other loans and leases (including farm) 0.12 0.21 0.19 0.24 0.10 0.11 0.11 0.13 0.10 0.11 0.22 0.10Total loans and leases 0.50 0.14 0.10 0.19 0.66 0.52 0.46 0.56 0.39 0.52 0.21 0.78

Loans Outstanding (in billions) All real estate loans $4,963.9 $29.6 $581.1 $900.8 $1,814.6 $1,637.8 $1,025.7 $929.8 $1,002.9 $875.3 $498.3 $631.9 Construction and development 357.1 1.7 55.3 88.1 146.7 65.4 68.5 59.1 60.4 50.1 78.2 41.0 Nonfarm nonresidential 1,473.8 6.9 219.9 368.6 590.6 287.8 339.2 286.9 223.8 199.6 207.5 216.8 Multifamily residential real estate 444.9 0.7 31.8 101.9 185.2 125.2 157.1 44.6 112.5 38.8 22.9 69.0 Home equity loans 358.5 0.7 20.8 39.1 137.4 160.4 73.5 87.3 88.6 61.7 20.1 27.2 Other 1-4 family residential 2,160.3 13.7 201.0 277.6 735.6 932.4 382.7 437.7 492.9 431.1 150.7 265.3Commercial and industrial loans 2,214.6 5.1 94.7 196.5 855.3 1,063.0 345.6 541.5 495.2 439.4 152.6 240.2Loans to individuals 1,748.0 2.7 30.7 70.2 802.6 841.7 290.3 415.7 338.1 314.1 67.6 322.2 Credit card loans 881.1 0.0 1.8 11.5 395.1 472.7 132.9 205.3 172.7 199.0 19.9 151.4 Other loans to individuals 866.9 2.7 28.9 58.7 407.5 369.0 157.4 210.4 165.4 115.1 47.7 170.8All other loans and leases (including farm) 1,375.5 6.1 48.6 67.7 443.7 809.4 208.8 286.2 330.2 367.6 62.5 120.2Total loans and leases (plus unearned income) 10,302.0 43.5 755.2 1,235.2 3,916.1 4,352.0 1,870.4 2,173.3 2,166.4 1,996.4 781.0 1,314.5

Memo: Other Real Estate Owned (in millions) All other real estate owned 6,361.3 154.9 1,768.2 1,382.7 1,672.3 1,383.2 1,147.7 1,417.4 1,253.6 1,074.1 1,132.8 335.7 Construction and development 1,591.5 32.7 720.6 438.5 311.8 87.9 212.5 434.9 186.1 265.8 384.2 108.0 Nonfarm nonresidential 1,960.6 47.7 587.3 555.4 464.5 305.7 299.2 424.9 395.1 303.3 468.5 69.7 Multifamily residential real estate 82.0 5.2 45.0 22.6 5.7 3.5 15.7 21.4 14.4 15.6 8.7 6.1 1-4 family residential 2,464.0 47.7 325.1 292.2 867.9 931.1 608.5 522.7 612.1 366.0 230.0 124.8 Farmland 208.2 21.6 90.1 74.1 22.3 0.0 11.8 13.4 21.0 93.4 41.4 27.2

* 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 IslandsAtlanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West VirginiaChicago - Illinois, Indiana, Kentucky, Michigan, Ohio, WisconsinKansas City - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South DakotaDallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, TexasSan 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.


12 FDIC QUARTERLY

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

2nd Quarter

2019

1st Quarter

2019

4th Quarter

2018

3rd Quarter

2018

2nd Quarter

2018

% Change

18Q2- 19Q2

Asset Size Distribution

(dollar figures in millions; notional amounts unless otherwise indicated)

Less Than $100

Million

$100 Million

to $1 Billion


$10 Billion

to $250 Billion

Greater Than $250

BillionALL DERIVATIVE HOLDERS Number of institutions reporting derivatives 1,342 1,320 1,311 1,347 1,362 -1.5 38 734 437 124 9Total assets of institutions reporting derivatives $16,696,059 $16,498,425 $16,296,552 $16,058,176 $15,950,535 4.7 $2,687 $322,353 $1,284,154 $5,986,437 $9,100,428Total deposits of institutions reporting derivatives 12,778,472 12,647,277 12,555,763 12,291,565 12,206,863 4.7 2,184 266,193 1,027,742 4,609,386 6,872,967Total derivatives 207,258,101 203,961,596 178,089,335 209,769,422 209,843,315 -1.2 242 25,931 151,963 60,090,499 146,989,465

Derivative Contracts by Underlying Risk Exposure Interest rate 151,863,612 149,193,449 128,175,074 156,781,236 157,435,172 -3.5 240 25,703 145,236 49,051,929 102,640,505Foreign exchange* 46,115,633 45,570,276 40,948,207 43,473,496 43,279,998 6.6 0 1 4,828 10,426,309 35,684,495Equity 3,722,531 3,675,244 3,374,363 3,644,559 3,420,624 8.8 0 0 193 162,162 3,560,175Commodity & other (excluding credit derivatives) 1,482,094 1,377,390 1,314,571 1,525,680 1,525,765 -2.9 0 0 34 112,551 1,369,508Credit 4,073,984 4,145,034 4,276,958 4,341,695 4,178,619 -2.5 0 8 1,648 337,547 3,734,782Total 207,257,854 203,961,393 178,089,173 209,766,666 209,840,178 -1.2 240 25,712 151,939 60,090,499 146,989,465

Derivative Contracts by Transaction Type Swaps 110,905,216 106,836,761 97,923,416 104,801,209 107,973,543 2.7 2 8,045 88,543 29,669,388 81,139,237Futures & forwards 46,206,834 46,165,354 36,143,797 47,051,282 46,023,905 0.4 3 3,359 30,763 13,650,973 32,521,737Purchased options 21,893,579 21,850,950 18,707,980 25,031,776 23,883,350 -8.3 1 310 12,921 8,014,546 13,865,801Written options 21,794,090 22,283,503 19,300,817 25,769,336 25,142,041 -13.3 2 2,660 17,205 7,941,365 13,832,857Total 200,799,718 197,136,567 172,076,010 202,653,603 203,022,839 -1.1 9 14,375 149,432 59,276,271 141,359,632

Fair Value of Derivative Contracts Interest rate contracts 55,925 53,806 47,241 53,594 49,617 12.7 0 76 -47 12,195 43,701Foreign exchange contracts -2,565 10,800 11,282 25,827 23,843 N/M 0 0 5 2,676 -5,245Equity contracts -1,110 -272 6,407 1,975 5,003 N/M 0 0 2 320 -1,432Commodity & other (excluding credit derivatives) -2,161 -778 -1,873 2,948 1,181 N/M 0 0 0 81 -2,241Credit derivatives as guarantor** 18,529 16,412 6,606 26,237 23,965 -22.7 0 0 3 975 17,551Credit derivatives as beneficiary** -21,734 -18,387 -6,765 -26,912 -24,348 N/M 0 0 -6 -1,658 -20,070

Derivative Contracts by Maturity*** Interest rate contracts < 1 year 90,569,101 87,928,755 71,493,447 93,168,889 91,960,389 -1.5 58 6,837 30,772 24,340,315 66,191,120 1-5 years 39,191,566 38,988,277 36,682,682 42,735,097 42,279,251 -7.3 8 2,262 37,158 9,774,088 29,378,050 > 5 years 24,216,180 24,263,088 23,246,059 24,228,390 24,373,859 -0.6 9 8,603 54,526 7,273,092 16,879,951 Foreign exchange and gold contracts < 1 year 32,804,737 32,626,686 28,891,823 29,674,897 31,341,537 4.7 0 5 2,986 7,228,245 25,573,501 1-5 years 4,340,277 4,364,397 4,218,682 4,928,405 4,906,415 -11.5 0 0 918 869,487 3,469,872 > 5 years 2,170,971 2,181,911 2,095,962 2,470,383 2,472,893 -12.2 0 0 0 632,374 1,538,598 Equity contracts < 1 year 2,725,454 2,714,590 2,448,707 2,825,222 2,679,109 1.7 0 0 48 69,281 2,656,124 1-5 years 972,497 957,790 863,793 963,096 867,817 12.1 0 0 38 49,157 923,303 > 5 years 149,222 143,076 139,158 135,954 123,737 20.6 0 0 2 10,247 138,973 Commodity & other contracts (including credit

derivatives, excluding gold contracts) < 1 year 2,008,663 1,754,422 1,745,343 1,896,551 1,994,605 0.7 0 3 26 72,451 1,936,182 1-5 years 2,803,027 2,847,105 3,105,744 3,017,006 3,019,612 -7.2 0 6 460 220,696 2,581,865 > 5 years 260,548 528,263 298,075 537,194 309,072 -15.7 0 40 596 30,421 229,490

Risk-Based Capital: Credit Equivalent Amount Total current exposure to tier 1 capital (%) 23.9 22.0 22.7 23.9 24.5 0.1 0.9 1.3 15.2 35.1Total potential future exposure to tier 1 capital (%) 36.6 37.6 36.0 40.9 39.5 0.1 0.4 0.9 19.1 57Total exposure (credit equivalent amount) to tier 1 capital (%) 60.5 59.5 58.8 64.8 64.0 0.1 1.4 2.2 34.4 92.1

Credit losses on derivatives**** 26.3 9.1 11.7 11.6 2.8 839.3 0.0 0.0 -0.6 12.9 14.0

HELD FOR TRADING Number of institutions reporting derivatives 189 187 193 197 197 -4.1 0 24 90 67 8Total assets of institutions reporting derivatives 13,222,400 12,931,735 12,768,696 12,612,012 12,484,349 5.9 0 11,951 294,502 4,120,938 8,795,009Total deposits of institutions reporting derivatives 10,023,986 9,864,375 9,799,266 9,613,504 9,518,156 5.3 0 9,959 234,076 3,165,558 6,614,394

Derivative Contracts by Underlying Risk Exposure Interest rate 149,515,929 147,070,054 126,215,235 154,523,852 155,241,947 -3.7 0 473 37,800 48,346,653 101,131,003Foreign exchange 43,278,150 42,441,495 38,768,802 40,241,704 40,144,539 7.8 0 0 3,806 9,923,579 33,350,765Equity 3,704,416 3,659,003 3,359,405 3,628,434 3,402,588 8.9 0 0 20 151,217 3,553,179Commodity & other 1,451,571 1,347,235 1,285,123 1,496,650 1,496,752 -3.0 0 0 15 83,670 1,367,886Total 197,950,066 194,517,787 169,628,565 199,890,639 200,285,826 -1.2 0 473 41,641 58,505,119 139,402,833

Trading Revenues: Cash & Derivative Instruments Interest rate** 2,730 4,080 2,306 1,998 587 365.1 0 0 7 217 2,506Foreign exchange** 2,900 2,254 1,971 3,130 4,569 -36.5 0 0 4 1,316 1,581Equity** 2,464 2,895 -43 1,444 1,727 42.7 0 0 6 -78 2,536Commodity & other (including credit derivatives)** -46 808 -202 487 501 N/M 0 0 0 -716 670Total trading revenues** 8,048 10,037 4,031 7,059 7,385 9.0 0 0 17 738 7,293

Share of Revenue Trading revenues to gross revenues (%)** 4.8 6.2 2.5 4.5 4.8 0.0 0.0 0.4 1.5 6.5Trading revenues to net operating revenues (%)** 18.9 24.4 10.1 16.8 17.8 0.0 0.0 2.0 6.1 24.6

HELD FOR PURPOSES OTHER THAN TRADING Number of institutions reporting derivatives 719 724 734 750 759 -5.3 5 196 390 119 9Total assets of institutions reporting derivatives 16,229,102 16,008,090 15,816,221 15,575,002 15,481,315 4.8 407 95,708 1,187,055 5,845,504 9,100,428Total deposits of institutions reporting derivatives 12,402,056 12,251,856 12,172,535 11,903,875 11,829,384 4.8 346 79,242 948,776 4,500,725 6,872,967

Derivative Contracts by Underlying Risk Exposure Interest rate 2,335,640 2,113,244 1,950,783 2,249,741 2,184,847 6.9 9 13,901 106,953 705,276 1,509,501Foreign exchange 465,373 459,140 452,256 468,068 505,117 -7.9 0 1 645 26,049 438,679Equity 18,116 16,241 14,959 16,125 18,036 0.4 0 0 173 10,946 6,996Commodity & other 30,523 30,155 29,448 29,030 29,012 5.2 0 0 19 28,881 1,622Total notional amount 2,849,652 2,618,781 2,447,445 2,762,964 2,737,012 4.1 9 13,902 107,791 771,152 1,956,799

All line items are reported on a quarterly basis. N/M - Not Meaningful* Includes spot foreign exchange contracts. All other references to foreign exchange contracts in which notional values or fair values are reported exclude spot foreign exchange contracts.** Does not include banks filing the FFIEC 051 report form, which was introduced in first quarter 2017.*** Derivative contracts subject to the risk-based capital requirements for derivatives.**** Credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and banks filing the FFIEC 041 report form that have $300 million or more in total assets, but is not applicaable to banks filing the FFIEC 051 form.


FDIC QUARTERLY 13

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

(dollar figures in millions)

2nd Quarter

2019

1st Quarter

2019

4th Quarter

2018

3rd Quarter

2018

2nd Quarter

2018

% Change

18Q2- 19Q2

Less Than $100

Million

$100 Million

to $1 Billion


$10 Billion

to $250 Billion

Greater Than $250

BillionAssets Securitized and Sold with Servicing Retained or with Recourse or Other Seller-Provided Credit Enhancements Number of institutions reporting securitization activities 65 65 64 64 64 1.6 0 5 19 34 7Outstanding Principal Balance by Asset Type 1-4 family residential loans $465,275 $486,472 $520,030 $542,310 $560,132 -16.9 $0 $978 $13,140 $88,724 $362,433 Home equity loans 12 13 14 15 16 -25.0 0 0 0 12 0 Credit card receivables 0 0 22 24 26 -100.0 0 0 0 0 0 Auto loans 2,494 3,062 3,710 4,415 4,647 -46.3 0 0 0 2,494 0 Other consumer loans 1,603 1,668 1,738 1,806 1,887 -15.1 0 0 0 693 911 Commercial and industrial loans 558 550 453 360 271 105.9 0 0 0 0 558 All other loans, leases, and other assets 73,791 72,857 71,416 68,646 67,948 8.6 0 7 9,756 2,944 61,083Total securitized and sold 543,733 564,622 597,383 617,576 634,927 -14.4 0 985 22,896 94,867 424,985

Maximum Credit Exposure by Asset Type 1-4 family residential loans 1,055 1,050 1,102 1,228 1,327 -20.5 0 0 48 764 243 Home equity loans 0 0 0 0 0 0.0 0 0 0 0 0 Credit card receivables 0 0 0 0 0 0.0 0 0 0 0 0 Auto loans 86 94 104 114 125 -31.2 0 0 0 86 0 Other consumer loans 111 89 86 85 82 35.4 0 0 0 0 111 Commercial and industrial loans 0 0 0 0 0 0.0 0 0 0 0 0 All other loans, leases, and other assets 1,230 1,257 1,208 1,112 1,266 -2.8 0 0 161 30 1,039Total credit exposure 2,482 2,490 2,500 2,539 2,800 -11.4 0 0 209 880 1,393Total unused liquidity commitments provided to institution’s own securitizations 185 230 213 226 144 28.5 0 0 0 23 162

Securitized Loans, Leases, and Other Assets 30-89 Days Past Due (%) 1-4 family residential loans 4.0 3.5 3.6 4.1 3.5 0.0 2.7 0.8 3.2 4.3 Home equity loans 7.1 5.7 8.0 8.9 8.4 0.0 0.0 0.0 7.1 0.0 Credit card receivables 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Auto loans 2.3 2.0 2.6 1.9 1.8 0.0 0.0 0.0 2.3 0.0 Other consumer loans 4.5 4.2 4.2 4.5 4.7 0.0 0.0 0.0 2.5 6.0 Commercial and industrial loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 All other loans, leases, and other assets 0.2 0.2 0.2 0.2 0.3 0.0 0.0 0.5 1.1 0.2Total loans, leases, and other assets 3.6 3.2 3.3 3.8 3.2 0.0 0.0 0.0 2.6 3.7Securitized Loans, Leases, and Other Assets 90 Days or More Past Due (%) 1-4 family residential loans 1.1 1.1 1.1 1.1 1.2 0.0 1.2 0.7 1.1 1.1 Home equity loans 35.9 39.4 39.0 40.2 42.6 0.0 0.0 0.0 35.9 0.0 Credit card receivables 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Auto loans 0.5 0.5 0.5 0.4 0.4 0.0 0.0 0.0 0.5 0.0 Other consumer loans 4.0 4.1 4.3 4.3 6.0 0.0 0.0 0.0 1.9 5.6 Commercial and industrial loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 All other loans, leases, and other assets 0.2 0.3 0.5 0.6 0.7 0.0 0.0 1.1 0.1 0.1Total loans, leases, and other assets 0.9 1.0 1.0 1.0 1.2 0.0 0.0 0.0 0.6 0.9Securitized Loans, Leases, and Other Assets Charged-off (net, YTD, annualized, %) 1-4 family residential loans 0.1 0.0 0.1 0.0 -0.1 0.0 0.0 0.0 0.0 0.1 Home equity loans 3.6 0.9 18.2 13.9 11.4 0.0 0.0 0.0 3.6 0.0 Credit card receivables 0.0 0.0 9.1 4.2 3.8 0.0 0.0 0.0 0.0 0.0 Auto loans 0.7 0.3 1.4 1.0 0.6 0.0 0.0 0.0 0.7 0.0 Other consumer loans 0.4 0.2 1.0 0.8 0.6 0.0 0.0 0.0 0.4 0.3 Commercial and industrial loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 All other loans, leases, and other assets 0.1 0.1 1.1 0.4 0.3 0.0 0.0 0.1 0.2 0.1Total loans, leases, and other assets 0.1 0.1 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.1

Seller’s Interests in Institution's Own Securitizations – Carried as Loans Home equity loans 0 0 0 0 0 0.0 0 0 0 0 0 Credit card receivables 0 0 0 0 0 0.0 0 0 0 0 0 Commercial and industrial loans 644 623 427 361 306 110.5 0 0 0 0 644Seller’s Interests in Institution's Own Securitizations – Carried as Securities Home equity loans 0 0 0 0 0 0.0 0 0 0 0 0 Credit card receivables 0 0 0 0 0 0.0 0 0 0 0 0 Commercial and industrial loans 0 0 0 0 0 0.0 0 0 0 0 0

Assets Sold with Recourse and Not Securitized Number of institutions reporting asset sales 437 442 469 476 474 -7.8 11 156 203 59 8Outstanding Principal Balance by Asset Type 1-4 family residential loans 97,125 25,583 26,298 25,828 24,727 292.8 132 67,729 19,972 7,642 1,650 All other loans, leases, and other assets 121,462 118,898 116,452 112,296 109,138 11.3 0 10 191 40,049 81,211Total sold and not securitized 218,587 144,481 142,750 138,124 133,865 63.3 132 67,740 20,163 47,691 82,862

Maximum Credit Exposure by Asset Type 1-4 family residential loans 10,410 7,377 7,677 7,943 7,632 36.4 5 2,891 3,962 2,794 759 All other loans, leases, and other assets 34,162 33,545 32,781 31,286 30,545 11.8 0 10 43 11,712 22,396Total credit exposure 44,572 40,923 40,457 39,229 38,178 16.7 5 2,901 4,005 14,506 23,155

Support for Securitization Facilities Sponsored by Other Institutions Number of institutions reporting securitization facilities sponsored by others 0 0 0 0 0 0.0 0 0 0 0 0Total credit exposure 23,532 22,527 23,013 24,792 26,570 -11.4 0 0 0 1,859 21,673Total unused liquidity commitments 658 492 604 1,313 1,031 -36.2 0 0 0 295 363

OtherAssets serviced for others** 6,075,764 6,128,896 6,061,048 5,984,007 5,919,134 2.6 4,065 148,035 298,375 1,554,347 4,070,942Asset-backed commercial paper conduits Credit exposure to conduits sponsored by institutions and others 16,249 17,150 17,366 16,898 16,069 1.1 0 0 0 0 16,249 Unused liquidity commitments to conduits sponsored by institutions and others 29,907 29,998 31,491 30,447 30,593 -2.2 0 0 0 908 28,999Net servicing income (for the quarter) -333 1,524 1,464 2,699 2,774 N/M 7 219 131 32 -721Net securitization income (for the quarter) 72 79 65 64 -49 N/M 0 3 8 4 56Total credit exposure to Tier 1 capital (%)*** 3.5 3.5 3.5 3.6 3.7 0.0 0.0 0.0 2.5 5.8

* Does not include banks filing the FFIEC 051 report form, which was introduced in first quarter 2017. N/M - Not Meaningful** 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

COMMUNITY BANK PERFORMANCE

Community banks are identified based on criteria defined in the FDIC’s Community Banking Study. When comparing community bank performance across quarters, prior-quarter dollar amounts are based on community banks designated as such in the current quarter, adjusted for mergers. In contrast, prior-quarter performance ratios are based on community banks designated during the previous quarter.

Community Banks Report 8.1 Percent Increase in Net IncomeGrowth in Net Interest Income and Noninterest Income Increases Net Operating RevenueLoan and Lease Balances Grow 6.3 PercentNet Charge-Off and Noncurrent Rates Both Decline Year Over Year

Community Banks Report 8.1 Percent Increase in Net Income

Community banks reported net income of $6.9 billion in second quarter 2019, an increase of $522.2 million (8.1 percent) from second quarter 2018. Growth in net interest income (up 5.1 percent), noninterest income (up 4.7 percent), and gains on securities sales (up 656.7 percent) drove the annual increase in net income, which was partially offset by an increase in noninterest expense (up 5.6 percent) and a modest increase in provision expense (up 2.3 percent). Community banks reported a pretax return on average assets of 1.48 percent in second quarter 2019, up 7 basis points from a year ago, as the gap between community banks and noncommunity banks narrowed by 12 basis points over the same period. Ninety-six percent of community banks reported a profit during the quarter. At the end of second quarter 2019, there were 4,874 community banks. Fifty-four banks merged, one community bank opened, and one community bank failed during the quarter.

Growth in Net Interest Income and Noninterest Income Increases Net Operating Revenue

Net operating revenue rose to $24 billion at community banks in second quarter 2019, up $1.2 billion from a year ago owing to growth in net interest income (up 5.1 percent) and noninterest income (up 4.7 percent). Higher interest income on non-1-4 family real estate loans (up 13.3 percent), commercial and industrial (C&I) loans (up 17.1 percent), and 1-4 family mortgage loans (up 9 percent) drove the increase in net interest income from a year ago. Noninterest income increased $212.1 million (4.7 percent) from second quarter 2018 to $4.7 billion largely due to higher net gains from loan sales (up $206.9 million, or 25.5 percent). More than half of community banks (56.8 percent) reported an increase in noninterest income from second quarter 2018.

Contributors to the Year-Over-Year Change in Income FDIC-Insured Community Banks

Source: FDIC.

$ Billions

NetIncome

NetInterestIncome

Loan LossProvisions

NoninterestIncome

NoninterestExpense

RealizedGains onSecurities

IncomeTaxes

Positive Factor Negative Factor

0.0

0.5

1.0$0.02$0.52 $0.94 $0.21 $0.82 $0.20 $0.12

+2%+8% +5% +5% +6% +657% +10%

Chart 1

Source: FDIC.

Net Interest Margin

Percent Community Banks (3.68)Industry (3.39)

2.75

3.00

3.25

3.50

3.75

4.00

4.25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 2

https://www.fdic.gov/regulations/resources/cbi/study.html


16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments FDIC-Insured Community Banks

Source: FDIC.

$ BillionsChange 2Q 2019 vs. 2Q 2018Change 2Q 2019 vs. 1Q 2019

Loan BalancesUnused

Commitments

NonfarmNonresidential

RE

C&ILoans

1–4 FamilyResidential

RE

C&DLoans

AgriculturalProduction

Loans

CRE &C&D

C&ILoans

0

5

10

15

20

25

30

35

40

32.3

17.3

9.4

15.7

1.8

7.310.4

8.2 6.2 6.9

1.8 2.6 4.11.9

Chart 3Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Share of Loan Portfolio NoncurrentPercent

0

2

4

6

8

10

12

14

16

C&D LoansNonfarm Nonresidential RE1–4 Family RE

C&I Loans

Farm LoansHome Equity

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 4

Net Interest Margin Remains Stable

The net interest margin narrowed 1 basis point from a year ago to 3.68 percent, as the increase in average funding costs slightly outpaced the increase in average earning asset yields. Average funding costs for community banks have been lower than funding costs for noncommunity banks for six consecutive quarters, reversing a ten-year trend from first quar-ter 2008 through first quarter 2018 during which community banks reported a higher cost of funds than noncommunity banks. Community banks funded 89 percent of the increase in earning assets with deposits during the year. Depositors added $82.7 billion (6 percent) to interest-bearing accounts and $14.7 billion (3.9 percent) to noninterest-bearing accounts at community banks from a year ago. Growth in short-term time deposits—time deposits with maturities of three years or less—led the increase in interest-bearing deposit volume.

Noninterest Expense Rises as Payroll Expense and Assets Increase

Noninterest expense increased to $15.3 billion in second quarter 2019, up $817.1 million (5.6 percent) from a year ago. Slightly more than three-quarters (75.7 percent) of commu-nity banks reported higher noninterest expense compared with second quarter 2018. Payroll expense increased $526.8 million (6.3 percent) from a year ago, as average assets per employee increased from $5.35 million to $5.56 million.

Loan and Lease Balances Grow 6.3 Percent

Loan and lease balances increased $34.6 billion (2.2 percent) to $1.6 trillion during second quarter 2019, as 73.1 percent of community banks reported higher loan and lease balances compared with the previous quarter. Growth in major loan categories—nonfarm nonresi-dential loans (30 percent of total loans at community banks), 1–4 family residential real estate loans (25 percent of total loans), C&I loans (14 percent of total loans) and construction and development (C&D) loans (7 percent of total loans)—drove the quarterly and annual increases in loan and lease balances.

Loan and lease balances rose $96.5 billion (6.3 percent) from second quarter 2018, led by growth in nonfarm nonresidential loans (up $32.3 billion, or 7.2 percent), C&I loans (up $17.3 billion, or 8.5 percent), 1–4 family residential real estate loans (up $15.7 billion, or 4.1 percent), and C&D loans (up $9.4 billion, or 9 percent). Community banks contin-ued to grow their small loans to businesses, adding $7.1 billion (2.4 percent) since second quarter 2018. Small loans to businesses held by community banks are 40.9 percent of the industry total.


FDIC QUARTERLY 17

Asset Quality Metrics Remain Favorable

Noncurrent loan and lease balances declined $146 million (1.2 percent) during second quar-ter 2019. This decline contributed to an increase in the coverage ratio (loan and lease loss reserves to noncurrent loans) to 150.2 percent from 147.6 percent last quarter. The noncur-rent rate for total loans declined 7 basis points to 0.75 percent from a year ago, reflecting a decline in noncurrent rates for major loan categories both quarterly and annually. The C&I noncurrent rate registered the largest decline among major loan categories during the quarter, falling 9 basis points to 0.88 percent.

The noncurrent rate for farm loans, of which community banks hold more than twice the volume held by noncommunity banks, was 1.28 percent in second quarter 2019, an increase of 13 basis points from a year ago but still below the recent high of 1.54 percent in first quar-ter 2010. The noncurrent rate for farmland loans increased 14 basis points from a year ago to 1.52 percent, and the noncurrent rate for agricultural production loans increased 11 basis points to 0.93 percent.

Net Charge-Off Rate Remains Low

Net charge-offs increased $69 million (19.3 percent) during the quarter and $20.6 million (5.1 percent) compared to second quarter 2018. The net charge-off rate for total loans was relatively flat at 0.11 percent (up 2 basis points quarterly), which is only slightly above the ten-year low of 0.09 percent and 46 basis points below that of noncommunity banks. The net charge-off rate for farm loans increased 4 basis points to 0.10 percent during the quarter. Of the major loan categories, only C&D loans registered a decline in the net charge-off rate during the quarter—down 2 basis points to negative 0.03 percent—as loan loss recover-ies exceeded charge offs. The net charge-off rate for C&I loans increased 7 basis points to 0.25 percent during the quarter.

Community Bank Capital Ratios Continue to Expand

Equity capital grew $24.8 billion (10.3 percent) during the year, supporting annual increases in all regulatory capital ratios. The total equity capital ratio increased 52 basis points to 11.68 percent, the leverage capital ratio increased 17 basis points to 11.14 percent year over year, and the total risk based capital ratio increased 8 basis points to 15.80 percent.

Author: Erica Jill Tholmer Senior Financial Analyst Division of Insurance and Research


18 FDIC QUARTERLY

TABLE I-B. Selected Indicators, FDIC-Insured Community Banks2019* 2018* 2018 2017 2016 2015 2014

Return on assets (%) 1.20 1.14 1.19 0.96 0.99 0.99 0.93Return on equity (%) 10.45 10.24 10.59 8.65 8.81 8.85 8.45Core capital (leverage) ratio (%) 11.14 10.97 11.09 10.80 10.69 10.67 10.57Noncurrent assets plus other real estate owned to assets (%) 0.66 0.75 0.70 0.78 0.94 1.07 1.34Net charge-offs to loans (%) 0.10 0.14 0.12 0.16 0.16 0.15 0.21Asset growth rate (%) 2.06 0.70 2.31 1.17 2.97 2.74 2.20Net interest margin (%) 3.67 3.66 3.72 3.62 3.57 3.57 3.61Net operating income growth (%) 3.34 14.08 28.16 0.21 2.42 9.57 4.78Number of institutions reporting 4,874 5,112 4,981 5,228 5,462 5,736 6,037Percentage of unprofitable institutions (%) 3.80 4.13 3.57 5.72 4.67 5.04 6.44

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

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

(dollar figures in millions) 2nd Quarter 2019

1st Quarter 2019

2nd Quarter 2018

%Change 18Q2-19Q2

Number of institutions reporting 4,874 4,932 5,112 -4.7Total employees (full-time equivalent) 407,901 406,575 415,477 -1.8

CONDITION DATATotal assets $2,267,582 $2,258,777 $2,221,855 2.1 Loans secured by real estate 1,239,029 1,234,817 1,216,853 1.8 1-4 Family residential mortgages 399,943 399,232 400,033 0.0 Nonfarm nonresidential 479,116 477,544 468,395 2.3 Construction and development 113,784 113,466 108,623 4.8 Home equity lines 47,306 47,539 48,776 -3.0 Commercial & industrial loans 221,869 216,995 210,179 5.6 Loans to individuals 65,103 64,037 62,697 3.8 Credit cards 2,025 1,988 1,885 7.5 Farm loans 53,410 50,933 52,095 2.5 Other loans & leases 43,265 40,150 39,804 8.7 Less: Unearned income 642 642 701 -8.5 Total loans & leases 1,622,035 1,606,289 1,580,927 2.6 Less: Reserve for losses 18,291 18,271 18,243 0.3 Net loans and leases 1,603,744 1,588,018 1,562,684 2.6 Securities 389,305 392,599 403,050 -3.4 Other real estate owned 2,834 2,985 3,571 -20.6 Goodwill and other intangibles 16,998 16,725 15,202 11.8 All other assets 254,701 258,450 237,348 7.3

Total liabilities and capital 2,267,582 2,258,777 2,221,855 2.1 Deposits 1,859,739 1,861,209 1,818,620 2.3 Domestic office deposits 1,857,467 1,858,899 1,818,033 2.2 Foreign office deposits 2,271 2,310 587 287.0 Brokered deposits 75,516 77,356 74,726 1.1 Estimated insured deposits 1,350,104 1,355,680 1,335,071 1.1 Other borrowed funds 123,286 119,332 138,443 -10.9 Subordinated debt 631 618 629 0.4 All other liabilities 18,935 17,711 16,068 17.8 Total equity capital (includes minority interests) 264,991 259,907 248,095 6.8 Bank equity capital 264,916 259,839 247,978 6.8

Loans and leases 30-89 days past due 8,031 9,212 7,432 8.1Noncurrent loans and leases 12,178 12,375 12,925 -5.8Restructured loans and leases 5,965 6,033 6,549 -8.9Mortgage-backed securities 179,687 177,205 177,217 1.4Earning assets 2,115,034 2,107,482 2,072,598 2.0FHLB Advances 100,718 95,973 115,387 -12.7Unused loan commitments 315,984 313,263 303,200 4.2Trust assets 276,541 269,923 293,149 -5.7Assets securitized and sold 12,908 12,965 19,148 -32.6Notional amount of derivatives 99,265 83,604 78,089 27.1


2019First Half


20192nd Quarter

2018%Change

18Q2-19Q2

Total interest income $48,048 $43,782 9.7 $24,422 $22,383 9.1Total interest expense 9,819 6,400 53.4 5,112 3,401 50.3 Net interest income 38,229 37,382 2.3 19,310 18,982 1.7Provision for loan and lease losses 1,325 1,496 -11.5 673 678 -0.7Total noninterest income 8,901 9,205 -3.3 4,695 4,710 -0.3Total noninterest expense 30,160 30,016 0.5 15,326 15,126 1.3Securities gains (losses) 405 91 345.5 234 31 664.4Applicable income taxes 2,737 2,538 7.8 1,407 1,314 7.1Extraordinary gains, net* 115 -162 N/M 118 -163 N/M Total net income (includes minority interests) 13,428 12,466 7.7 6,949 6,441 7.9 Bank net income 13,424 12,458 7.8 6,946 6,436 7.9Net charge-offs 781 1,086 -28.1 426 590 -27.8Cash dividends 6,671 5,320 25.4 3,417 2,921 17.0Retained earnings 6,754 7,138 -5.4 3,529 3,516 0.4 Net operating income 12,973 12,554 3.3 6,631 6,581 0.8



FDIC QUARTERLY 19

TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community BanksPrior Periods Adjusted for Mergers

(dollar figures in millions) 2nd Quarter

20191st Quarter

20192nd Quarter

2018%Change

18Q2-19Q2

Number of institutions reporting 4,874 4,870 4,867 0.1Total employees (full-time equivalent) 407,901 403,002 401,912 1.5

CONDITION DATATotal assets $2,267,582 $2,238,343 $2,149,512 5.5 Loans secured by real estate 1,239,029 1,218,664 1,169,668 5.9 1-4 Family residential mortgages 399,943 393,048 384,243 4.1 Nonfarm nonresidential 479,116 470,911 446,828 7.2 Construction and development 113,784 111,996 104,385 9.0 Home equity lines 47,306 47,059 47,172 0.3 Commercial & industrial loans 221,869 215,689 204,557 8.5 Loans to individuals 65,103 63,225 61,202 6.4 Credit cards 2,025 1,980 2,005 1.0 Farm loans 53,410 50,820 51,634 3.4 Other loans & leases 43,265 39,621 39,109 10.6 Less: Unearned income 642 629 666 -3.7 Total loans & leases 1,622,035 1,587,390 1,525,503 6.3 Less: Reserve for losses 18,291 18,097 17,747 3.1 Net loans and leases 1,603,744 1,569,293 1,507,756 6.4 Securities 389,305 394,334 395,274 -1.5 Other real estate owned 2,834 2,938 3,406 -16.8 Goodwill and other intangibles 16,998 16,546 15,133 12.3 All other assets 254,701 255,232 227,942 11.7

Total liabilities and capital 2,267,582 2,238,343 2,149,512 5.5 Deposits 1,859,739 1,844,447 1,762,042 5.5 Domestic office deposits 1,857,467 1,842,137 1,760,060 5.5 Foreign office deposits 2,271 2,310 1,982 14.6 Brokered deposits 75,516 76,747 71,624 5.4 Estimated insured deposits 1,350,104 1,343,483 1,292,781 4.4 Other borrowed funds 123,286 118,214 130,837 -5.8 Subordinated debt 631 618 620 1.9 All other liabilities 18,935 17,532 15,762 20.1 Total equity capital (includes minority interests) 264,991 257,532 240,252 10.3 Bank equity capital 264,916 257,464 240,141 10.3

Loans and leases 30-89 days past due 8,031 9,157 7,268 10.5Noncurrent loans and leases 12,178 12,324 12,545 -2.9Restructured loans and leases 5,965 6,030 6,392 -6.7Mortgage-backed securities 179,687 177,763 173,810 3.4Earning assets 2,115,034 2,088,720 2,005,031 5.5FHLB Advances 100,718 94,981 108,492 -7.2Unused loan commitments 315,984 310,403 293,266 7.7Trust assets 276,541 268,537 260,358 6.2Assets securitized and sold 12,908 12,965 14,113 -8.5Notional amount of derivatives 99,265 81,473 72,967 36.0


2019First Half


20192nd Quarter

2018%Change

18Q2-19Q2

Total interest income $48,048 $42,231 13.8 $24,422 $21,675 12.7Total interest expense 9,819 6,175 59.0 5,112 3,310 54.5 Net interest income 38,229 36,056 6.0 19,310 18,365 5.1Provision for loan and lease losses 1,325 1,447 -8.5 673 658 2.3Total noninterest income 8,901 8,725 2.0 4,695 4,483 4.7Total noninterest expense 30,160 28,705 5.1 15,326 14,509 5.6Securities gains (losses) 405 86 372.4 234 31 656.7Applicable income taxes 2,737 2,455 11.5 1,407 1,285 9.5Extraordinary gains, net* 115 2 N/M 118 1 N/M Total net income (includes minority interests) 13,428 12,263 9.5 6,949 6,427 8.1 Bank net income 13,424 12,256 9.5 6,946 6,424 8.1Net charge-offs 781 883 -11.6 426 405 5.1Cash dividends 6,671 5,283 26.3 3,417 2,870 19.1Retained earnings 6,754 6,973 -3.1 3,529 3,554 -0.7 Net operating income 12,973 12,190 6.4 6,631 6,402 3.6



20 FDIC QUARTERLY

TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community BanksSecond Quarter 2019(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 4,874 552 561 1,073 1,304 1,085 299Total employees (full-time equivalent) 407,901 83,284 45,641 83,857 71,971 88,728 34,420

CONDITION DATATotal assets $2,267,582 $619,673 $230,159 $397,946 $373,103 $421,133 $225,569 Loans secured by real estate 1,239,029 385,019 126,300 209,657 184,502 211,185 122,365 1-4 Family residential mortgages 399,943 137,499 39,625 68,256 55,040 68,070 31,453 Nonfarm nonresidential 479,116 139,676 55,381 78,957 62,268 85,936 56,897 Construction and development 113,784 26,440 14,268 16,667 16,187 29,659 10,564 Home equity lines 47,306 14,943 6,252 10,010 5,334 4,907 5,860 Commercial & industrial loans 221,869 56,158 19,238 42,177 39,641 42,457 22,198 Loans to individuals 65,103 15,916 6,395 12,251 11,070 12,938 6,532 Credit cards 2,025 427 144 247 566 213 428 Farm loans 53,410 641 1,447 8,498 30,178 9,616 3,030 Other loans & leases 43,265 12,439 3,267 8,171 6,809 7,912 4,666 Less: Unearned income 642 161 90 48 107 131 105 Total loans & leases 1,622,035 470,013 156,558 280,705 272,094 283,978 158,687 Less: Reserve for losses 18,291 4,393 1,755 3,209 3,543 3,438 1,953 Net loans and leases 1,603,744 465,620 154,803 277,497 268,550 280,539 156,734 Securities 389,305 92,329 42,101 72,008 63,818 82,370 36,679 Other real estate owned 2,834 500 557 531 493 611 142 Goodwill and other intangibles 16,998 4,884 1,194 2,951 2,438 3,174 2,357 All other assets 254,701 56,339 31,504 44,959 37,804 54,438 29,657

Total liabilities and capital 2,267,582 619,673 230,159 397,946 373,103 421,133 225,569 Deposits 1,859,739 490,873 192,573 328,707 307,569 353,940 186,076 Domestic office deposits 1,857,467 490,188 192,573 328,578 307,569 353,940 184,619 Foreign office deposits 2,271 685 1 129 0 0 1,457 Brokered deposits 75,516 25,744 4,935 14,193 14,026 10,122 6,496 Estimated insured deposits 1,350,104 343,241 139,959 256,874 238,615 252,377 119,039 Other borrowed funds 123,286 50,041 9,056 19,338 20,004 14,616 10,231 Subordinated debt 631 509 13 36 10 42 21 All other liabilities 18,935 6,435 1,701 2,992 2,500 3,069 2,237 Total equity capital (includes minority interests) 264,991 71,814 26,817 46,872 43,020 49,465 27,003 Bank equity capital 264,916 71,789 26,813 46,848 43,019 49,444 27,002

Loans and leases 30-89 days past due 8,031 1,743 867 1,531 1,509 1,841 538Noncurrent loans and leases 12,178 3,492 1,179 2,243 2,157 2,344 763Restructured loans and leases 5,965 2,034 603 1,378 845 698 406Mortgage-backed securities 179,687 52,938 19,446 29,741 23,033 33,429 21,100Earning assets 2,115,034 580,771 213,514 371,159 348,926 390,589 210,076FHLB Advances 100,718 44,067 7,430 14,924 15,702 11,204 7,390Unused loan commitments 315,984 85,606 27,581 56,415 55,230 54,272 36,880Trust assets 276,541 55,868 8,973 58,577 92,878 42,089 18,155Assets securitized and sold 12,908 7,599 69 1,061 2,804 950 424Notional amount of derivatives 99,265 39,554 8,573 14,880 15,212 13,337 7,708

INCOME DATATotal interest income $24,422 $6,364 $2,498 $4,214 $4,116 $4,742 $2,488Total interest expense 5,112 1,633 475 849 862 881 412 Net interest income 19,310 4,731 2,023 3,366 3,254 3,861 2,076Provision for loan and lease losses 673 144 59 109 138 159 64Total noninterest income 4,695 916 471 1,120 834 974 380Total noninterest expense 15,326 3,669 1,692 2,858 2,543 3,089 1,475Securities gains (losses) 234 71 38 72 20 26 7Applicable income taxes 1,407 422 144 266 187 187 201Extraordinary gains, net** 118 118 0 0 0 -1 0 Total net income (includes minority interests) 6,949 1,602 637 1,324 1,241 1,423 722 Bank net income 6,946 1,601 637 1,323 1,241 1,422 722Net charge-offs 426 94 33 63 88 97 50Cash dividends 3,417 784 214 796 678 620 326Retained earnings 3,529 817 423 526 563 802 397 Net operating income 6,631 1,425 606 1,258 1,222 1,403 717

* See Table V-A for explanation.** See Notes to Users for explanation.


FDIC QUARTERLY 21

Table IV-B. Second Quarter 2019, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Second Quarter 2019, Geographic Regions*

2nd Quarter 2019

1st Quarter 2019 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.65 4.58 4.42 4.72 4.57 4.74 4.89 4.78Cost of funding earning assets 0.97 0.91 1.14 0.90 0.92 0.99 0.91 0.79 Net interest margin 3.68 3.67 3.29 3.83 3.65 3.75 3.98 3.99Noninterest income to assets 0.83 0.76 0.60 0.83 1.13 0.90 0.93 0.68Noninterest expense to assets 2.72 2.69 2.39 2.97 2.89 2.74 2.95 2.64Loan and lease loss provision to assets 0.12 0.12 0.09 0.10 0.11 0.15 0.15 0.12Net operating income to assets 1.18 1.14 0.93 1.06 1.27 1.32 1.34 1.28Pretax return on assets 1.48 1.40 1.32 1.37 1.61 1.54 1.54 1.65Return on assets 1.23 1.16 1.04 1.12 1.34 1.34 1.36 1.29Return on equity 10.65 10.17 9.02 9.70 11.46 11.71 11.73 10.85Net charge-offs to loans and leases 0.11 0.09 0.08 0.09 0.09 0.13 0.14 0.13Loan and lease loss provision to net charge-offs 158.15 183.08 153.42 176.75 171.74 157.09 163.47 128.97Efficiency ratio 63.48 64.02 64.65 67.31 63.29 61.78 63.62 59.84Net interest income to operating revenue 80.44 81.82 83.78 81.11 75.03 79.59 79.86 84.53% of unprofitable institutions 4.00 4.06 4.89 6.60 4.85 1.99 3.32 5.69% of institutions with earnings gains 59.85 62.67 58.88 62.03 58.99 58.51 59.82 66.56

Table V-B. First Half 2019, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks First Half 2019, Geographic Regions*

First Half 2019

First Half 2018 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.62 4.29 4.40 4.70 4.53 4.68 4.83 4.79Cost of funding earning assets 0.94 0.63 1.10 0.87 0.89 0.96 0.88 0.77 Net interest margin 3.67 3.66 3.29 3.83 3.64 3.72 3.95 4.01Noninterest income to assets 0.80 0.84 0.57 0.79 1.10 0.84 0.88 0.68Noninterest expense to assets 2.70 2.75 2.38 2.95 2.87 2.72 2.91 2.63Loan and lease loss provision to assets 0.12 0.14 0.09 0.10 0.10 0.15 0.16 0.13Net operating income to assets 1.16 1.15 0.93 1.06 1.27 1.27 1.30 1.30Pretax return on assets 1.45 1.37 1.30 1.34 1.56 1.47 1.48 1.67Return on assets 1.20 1.14 1.02 1.10 1.30 1.28 1.31 1.30Return on equity 10.45 10.24 8.86 9.58 11.24 11.29 11.43 11.02Net charge-offs to loans and leases 0.10 0.14 0.08 0.08 0.07 0.12 0.14 0.11Loan and lease loss provision to net charge-offs 169.69 137.72 148.22 184.82 191.41 175.29 172.65 163.87Efficiency ratio 63.63 64.12 64.62 67.31 63.51 62.51 63.89 59.23Net interest income to operating revenue 81.11 80.24 84.35 81.89 75.57 80.60 80.69 84.60% of unprofitable institutions 3.80 4.13 4.89 5.53 4.19 2.53 2.95 5.69% of institutions with earnings gains 62.47 74.92 61.41 65.06 62.53 58.82 64.42 68.23

* See Table V-A for explanation.


22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

June 30, 2019Geographic Regions*

All Community Banks New York Atlanta Chicago Kansas City Dallas San FranciscoPercent of Loans 30-89 Days Past DueAll loans secured by real estate 0.45 0.34 0.51 0.56 0.51 0.58 0.27 Construction and development 0.45 0.34 0.46 0.51 0.52 0.45 0.49 Nonfarm nonresidential 0.30 0.24 0.29 0.37 0.36 0.40 0.18 Multifamily residential real estate 0.17 0.11 0.16 0.40 0.25 0.11 0.12 Home equity loans 0.43 0.46 0.49 0.43 0.32 0.47 0.35 Other 1-4 family residential 0.68 0.53 0.86 0.82 0.65 0.89 0.37Commercial and industrial loans 0.47 0.29 0.64 0.44 0.53 0.61 0.51Loans to individuals 1.34 1.53 1.44 0.77 0.94 2.08 1.07 Credit card loans 2.16 2.58 1.34 0.95 3.37 1.57 1.38 Other loans to individuals 1.31 1.50 1.45 0.77 0.81 2.09 1.05All other loans and leases (including farm) 0.52 0.21 0.28 0.50 0.70 0.55 0.31Total loans and leases 0.49 0.37 0.55 0.55 0.55 0.65 0.34

Percent of Loans Noncurrent**All loans secured by real estate 0.73 0.77 0.76 0.83 0.73 0.76 0.41 Construction and development 0.58 0.62 0.67 0.59 0.65 0.48 0.56 Nonfarm nonresidential 0.63 0.66 0.60 0.74 0.63 0.72 0.31 Multifamily residential real estate 0.18 0.15 0.32 0.30 0.22 0.25 0.06 Home equity loans 0.49 0.60 0.50 0.47 0.28 0.44 0.52 Other 1-4 family residential 0.94 1.16 0.98 0.97 0.58 0.92 0.54Commercial and industrial loans 0.88 0.79 0.74 0.78 0.98 1.08 0.80Loans to individuals 0.53 0.34 0.68 0.33 0.40 1.07 0.35 Credit card loans 0.89 1.13 0.32 0.47 1.31 0.53 0.72 Other loans to individuals 0.52 0.31 0.69 0.33 0.35 1.08 0.33All other loans and leases (including farm) 0.81 0.29 0.62 0.81 1.03 0.77 0.85Total loans and leases 0.75 0.74 0.75 0.80 0.79 0.83 0.48

Percent of Loans Charged-Off (net, YTD)All loans secured by real estate 0.03 0.04 0.02 0.03 0.02 0.05 0.00 Construction and development -0.01 0.00 -0.02 -0.02 -0.04 0.00 -0.04 Nonfarm nonresidential 0.05 0.05 0.02 0.04 0.04 0.09 0.00 Multifamily residential real estate 0.00 0.01 0.01 -0.01 0.01 0.00 -0.01 Home equity loans 0.03 0.04 0.01 0.05 0.01 0.02 -0.01 Other 1-4 family residential 0.03 0.04 0.02 0.02 0.02 0.03 -0.01Commercial and industrial loans 0.21 0.17 0.21 0.16 0.25 0.28 0.26Loans to individuals 0.89 0.81 0.87 0.37 1.08 0.93 1.66 Credit card loans 6.04 3.61 3.03 1.73 14.76 1.81 2.58 Other loans to individuals 0.72 0.73 0.82 0.35 0.33 0.92 1.60All other loans and leases (including farm) 0.18 0.13 0.14 0.25 0.13 0.27 0.22Total loans and leases 0.10 0.08 0.08 0.07 0.12 0.14 0.11

Loans Outstanding (in billions)All loans secured by real estate $1,239.0 $385.0 $126.3 $209.7 $184.5 $211.2 $122.4 Construction and development 113.8 26.4 14.3 16.7 16.2 29.7 10.6 Nonfarm nonresidential 479.1 139.7 55.4 79.0 62.3 85.9 56.9 Multifamily residential real estate 121.9 64.0 6.3 18.0 11.3 8.5 13.7 Home equity loans 47.3 14.9 6.3 10.0 5.3 4.9 5.9 Other 1-4 family residential 399.9 137.5 39.6 68.3 55.0 68.1 31.5Commercial and industrial loans 221.9 56.2 19.2 42.2 39.6 42.5 22.2Loans to individuals 65.1 15.9 6.4 12.3 11.1 12.9 6.5 Credit card loans 2.0 0.4 0.1 0.2 0.6 0.2 0.4 Other loans to individuals 63.1 15.5 6.3 12.0 10.5 12.7 6.1All other loans and leases (including farm) 96.7 13.1 4.7 16.7 37.0 17.5 7.7Total loans and leases 1,622.7 470.2 156.6 280.8 272.2 284.1 158.8

Memo: Unfunded Commitments (in millions)Total Unfunded Commitments 315,984 85,606 27,581 56,415 55,230 54,272 36,880 Construction and development: 1-4 family residential 25,971 5,145 3,476 3,093 3,558 7,550 3,149 Construction and development: CRE and other 66,718 20,466 6,525 11,060 9,146 12,934 6,588 Commercial and industrial 102,264 28,777 7,313 20,188 16,868 17,227 11,890

* See Table V-A for explanation.** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.


FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $2.6 BillionDIF Reserve Ratio Rises 4 Basis Points to 1.40 PercentSmall Bank Credits Will Be Applied to Second Quarter Assessments

During the second quarter, the Deposit Insurance Fund (DIF) balance increased by $2.6 billion to $107.4 billion. Assessment income of $1.2 billion and unrealized gains on available-for-sale securities of $694 million were the largest drivers of the increase. Nega-tive provisions for losses added $610 million and interest earned on investments added $535 million, while operating expenses reduced the fund by $459 million. One small insti-tution with total assets of $37 million failed during the second quarter of 2019.

The deposit insurance assessment base—average consolidated total assets minus average tangible equity—increased by 0.7 percent in the second quarter and by 3.7 percent over 12 months.1 , 2 Total estimated insured deposits decreased by 0.1 percent in the second quar-ter of 2019 but rose by 4.6 percent year over year.

The strong growth in the fund balance, combined with flat insured deposit growth, increased the DIF reserve ratio (the fund balance as a percent of estimated insured depos-its) to 1.40 percent on June 30, 2019, the highest level since September 30, 1999. The second quarter reserve ratio is 4 basis points higher than at March 31, 2019, and 7 basis points higher than the previous year.

Small banks earned a total of $765 million in credits for the portion of their assessments that contributed to growth in the reserve ratio from 1.15 percent to 1.35 percent. The credits are automatically applied to offset the assessments of small banks when the reserve ratio is at least 1.38 percent.3 Therefore, the FDIC will apply approximately $320 million of credits to offset the second quarter assessments of small banks, which will be due September 30, 2019.

Author: Kevin Brown Senior Financial Analyst Division of Insurance and Research

1 There are additional adjustments to the assessment base for banker’s banks and custodial banks.2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured commercial banks and savings institutions.3 In August 2019, the FDIC Board of Directors authorized a notice of proposed rulemaking (NPR) that would require the FDIC to apply the small bank credits in any assessment quarter in which the reserve ratio is at least 1.35 percent.


24 FDIC QUARTERLY

DIF Reserve RatiosPercent of Insured Deposits

1.24 1.27 1.30 1.30 1.33 1.36 1.36

1.17 1.18 1.20 1.20

1.36 1.40

6/16 9/16 12/16 3/17 6/17 9/17 12/17 3/18 6/18 9/18 12/18 3/19 6/19

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

2nd Quarter

2019

1st Quarter

2019

4th Quarter

2018

3rd Quarter

2018

2nd Quarter

2018

1st Quarter

2018

4th Quarter

2017

3rd Quarter

2017

2nd Quarter

2017

1st Quarter

2017

4th Quarter

2016

3rd Quarter

2016

2nd Quarter

2016

Beginning Fund Balance $104,870 $102,609 $100,204 $97,588 $95,072 $92,747 $90,506 $87,588 $84,928 $83,162 $80,704 $77,910 $75,120

Changes in Fund Balance:Assessments earned 1,187 1,369 1,351 2,728 2,598 2,850 2,656 2,568 2,634 2,737 2,688 2,643 2,328Interest earned on investment securities 535 507 481 433 381 338 305 274 251 227 189 171 164Realized gain on sale of investments 0 0 0 0 0 0 0 0 0 0 0 0 0Operating expenses 459 434 453 434 445 433 443 404 450 442 437 422 441Provision for insurance losses -610 -396 -236 -121 -141 -65 -203 -512 -233 765 -332 -566 -627All other income, net of expenses 9 2 2 2 3 1 3 1 4 2 3 3 2Unrealized gain/(loss) on available-for-sale securities** 694 421 788 -234 -162 -496 -481 -33 -12 7 -317 -167 110Total fund balance change 2,576 2,261 2,405 2,616 2,516 2,325 2,242 2,918 2,660 1,766 2,457 2,794 2,790

Ending Fund Balance 107,446 104,870 102,609 100,204 97,588 95,072 92,747 90,506 87,588 84,928 83,162 80,704 77,910 Percent change from four quarters earlier 10.10 10.31 10.63 10.72 11.42 11.95 11.53 12.14 12.42 13.06 14.55 15.10 15.27

Reserve Ratio (%) 1.40 1.36 1.36 1.36 1.33 1.30 1.30 1.27 1.24 1.20 1.20 1.18 1.17

Estimated Insured Deposits 7,691,598 7,699,901 7,525,393 7,377,158 7,355,373 7,334,658 7,156,067 7,101,090 7,049,332 7,081,095 6,917,200 6,817,375 6,674,365 Percent change from four quarters earlier 4.57 4.98 5.16 3.89 4.34 3.58 3.45 4.16 5.62 6.29 6.11 6.41 5.38

Domestic Deposits 12,788,777 12,725,359 12,659,395 12,367,954 12,280,904 12,305,817 12,129,503 11,966,478 11,827,933 11,856,691 11,693,371 11,506,877 11,242,960 Percent change from four quarters earlier 4.14 3.41 4.37 3.36 3.83 3.79 3.73 3.99 5.20 6.28 6.76 7.56 5.74

Assessment Base*** 15,673,568 15,562,369 15,450,464 15,227,751 15,112,199 15,068,151 15,000,701 14,833,644 14,702,429 14,620,363 14,562,672 14,382,469 14,191,487 Percent change from four quarters earlier 3.71 3.28 3.00 2.66 2.79 3.06 3.01 3.14 3.60 4.47 5.28 5.27 4.43

Number of Institutions Reporting 5,312 5,371 5,415 5,486 5,551 5,616 5,679 5,747 5,796 5,865 5,922 5,989 6,067

Deposit Insurance Fund Balance and Insured Deposits

($ Millions)DIF

BalanceDIF-Insured

Deposits

6/16 $77,910 $6,674,3659/16 80,704 6,817,375

12/16 83,162 6,917,2003/17 84,928 7,081,0956/17 87,588 7,049,3329/17 90,506 7,101,090

12/17 92,747 7,156,0673/18 95,072 7,334,6586/18 97,588 7,355,3739/18 100,204 7,377,158

12/18 102,609 7,525,3933/19 104,870 7,699,9016/19 107,446 7,691,598

Table II-C. Problem Institutions and Failed Institutions(dollar figures in millions) 2019**** 2018**** 2018 2017 2016 2015 2014 2013

Problem Institutions Number of institutions 56 82 60 95 123 183 291 467 Total assets $48,505 $54,378 $48,489 $13,939 $27,624 $46,780 $86,712 $152,687

Failed Institutions Number of institutions 1 0 0 8 5 8 18 24 Total assets***** $37 $0 $0 $5,082 $277 $6,706 $2,914 $6,044

* Quarterly financial statement results are unaudited.** Includes unrealized postretirement benefit gain (loss). *** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.**** Through June 30.***** Total assets are based on final Call Reports submitted by failed institutions.


FDIC QUARTERLY 25

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution(dollar figures in millions)June 30, 2019

Number of Institutions

Total Assets

Domestic Deposits*

Est. Insured Deposits

Commercial Banks and Savings Institutions FDIC-Insured Commercial Banks 4,630 $17,098,031 $11,823,312 $6,899,756 FDIC-Supervised 3,086 2,674,036 2,119,423 1,448,410 OCC-Supervised 798 11,489,918 7,666,963 4,336,012 Federal Reserve-Supervised 746 2,934,078 2,036,926 1,115,334

FDIC-Insured Savings Institutions 673 1,169,203 924,306 755,207 OCC-Supervised 305 765,291 619,575 516,632 FDIC-Supervised 332 373,314 280,423 219,105 Federal Reserve-Supervised 36 30,598 24,309 19,470

Total Commercial Banks and Savings Institutions 5,303 18,267,235 12,747,618 7,654,964

Other FDIC-Insured Institutions U.S. Branches of Foreign Banks 9 93,034 41,159 36,634

Total FDIC-Insured Institutions 5,312 18,360,268 12,788,777 7,691,598

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate RangeQuarter Ending March 31, 2019 (dollar figures in billions)

Annual Rate in Basis Points*Number of

InstitutionsPercent of Total

InstitutionsAmount of

Assessment Base**Percent of Total

Assessment Base

1.50 - 3.00 3,376 62.86 $7,820.4 50.25

3.01 - 6.00 1,421 26.46 6,743.0 43.33

6.01 - 10.00 441 8.21 887.9 5.71

10.01 - 15.00 60 1.12 74.5 0.48

15.01 - 20.00 62 1.15 22.7 0.15

20.01 - 25.00 4 0.07 1.2 0.01

> 25.00 7 0.13 12.6 0.08

* Assessment rates do not incorporate temporary surcharges on large banks.** Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as required by the Dodd-Frank Act.


26 FDIC QUARTERLY

Notes to UsersThis 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 publica-tion and provide information regarding the com parability of source data and reporting differences over time.

Tables I-A through VIII-A.The information presented in Tables I-A through VIII-A of the FDIC Quarterly Banking Profile is aggregated for all FDIC-insured Call Report filers, both commercial banks and savings institutions. Some tables are arrayed by groups of FDIC-insured institutions based on predominant types of asset concentration, while other tables aggregate institutions by asset size and geographic region. Quarterly and full-year data are provided for selected indicators, including aggregate condition and income data, performance ratios, condition ratios, and structural changes, as well as past due, noncurrent, and charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.The information presented in Tables I-B through VI-B is aggregated for all FDIC-insured commercial banks and savings institutions meeting the criteria for community banks that were developed for the FDIC’s Community Banking Study, published in December, 2012: http://www.fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.The determination of which insured institutions are considered community banks is based on five steps.The first step in defining a community bank is to aggre gate all charter-level data reported under each holding company into a single banking organization. This aggrega tion applies both to balance-sheet measures and the number and location of banking offices. Under the FDIC definition, if the banking organization is designated as a community bank, every charter reporting under that organization is also considered a community bank when working with data at the charter level.The second step is to exclude any banking organization where more than 50 percent of total assets are held in certain specialty banking charters, including: credit card specialists, consumer nonbank banks, industrial loan compa nies, trust companies, bankers’ banks, and banks holding 10 percent or more of total assets in foreign offices.Once the specialty organizations are removed, the third step involves including organizations that engage in basic banking activities as measured by the total loans-to-assets ratio (greater than 33 percent) and the ratio of core depos its to assets (greater than 50 percent). Core deposits are defined as non-brokered deposits in domestic offices. Analysis of the underlying data shows that these thresholds establish meaningful levels of basic lending and deposit gathering and still allow for a degree of diversity in how indi vidual banks construct their balance sheets.The fourth step includes organizations that operate within a lim-ited geographic scope. This limitation of scope is used as a proxy measure for a bank’s relationship approach to banking. Banks that operate within a limited market area have more ease in managing relationships at a personal level. Under this step, four criteria are applied to each banking organization. They include both a mini-mum and maximum number of total banking offices, a maximum level of deposits for any one office, and location-based criteria. The limits on the number of and deposits per office are adjusted upward quarterly. For banking offices, banks must have more than one office, and the maximum number of offices is 40 in 1985 and

reached 87 in 2016. The maximum level of deposits for any one office is $1.25 billion in deposits in 1985 and reached $6.97 billion in deposits in 2016. The remaining geographic limitations are also based on maximums for the number of states (fixed at 3) and large metropolitan areas (fixed at 2) in which the organization maintains offices. Branch office data are based on the most recent data from the annual June 30 Summary of Deposits Survey that are available at the time of publication. Finally, the definition establishes an asset-size limit, also adjusted upward quarterly and below which the limits on banking activities and geographic scope are waived. The asset-size limit is $250 million in 1985 and reached $1.39 billion in 2016. This final step acknowl-edges the fact that most of those small banks that are not excluded as specialty banks meet the requirements for banking activities and geographic limits in any event.

Summary of FDIC Research Definition of Community Banking OrganizationsCommunity banks are designated at the level of the banking organization.(All charters under designated holding companies are considered community banking charters.)Exclude: Any organization with:— No loans or no core deposits— Foreign Assets ≥ 10% of total assets— More than 50% of assets in certain specialty banks, including:

• credit card specialists• consumer nonbank banks1

• industrial loan companies• trust companies• bankers’ banks

Include: All remaining banking organizations with:— Total assets < indexed size threshold 2

— Total assets ≥ indexed size threshold, where:• Loan to assets > 33%• Core deposits to assets > 50%• More than 1 office but no more than the indexed maximum

number of offices.3

• Number of large MSAs with offices ≤ 2• Number of states with offices ≤ 3• No single office with deposits > indexed maximum branch

deposit size.4

Tables I-C through IV-C.A separate set of tables (Tables I-C through IV-C) provides com-parative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed institutions, estimated FDIC-insured deposits, as well as assessment rate information. Depository insti-

1 Consumer nonbank banks are financial institutions with limited charters that can make commercial loans or take deposits, but not both.2 Asset size threshold indexed to equal $250 million in 1985 and $1.39 billion in 2016.3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion in 2016.

http://www.fdic.gov/regulations/resources/cbi/report/cbi-full.pdf


FDIC QUARTERLY 27

tutions that are not insured by the FDIC through the DIF are not included in the FDIC Quarterly Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies are not included unless otherwise indicated. Efforts are made to obtain financial reports for all active institutions. However, in some cases, final financial reports are not available for institutions that have closed or converted their charters.

DATA SOURCESThe financial information appearing in this publication is obtained primarily from the Federal Financial Institutions Examination Council (FFIEC) Consolidated Reports of Condition and Income (Call Reports) and the OTS Thrift Financial Reports (TFR) submitted by all FDIC-insured depository institutions. (TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.) This information is stored on and retrieved from the FDIC’s Research Information System (RIS) database.

COMPUTATION METHODOLOGYParent institutions are required to file consolidated reports, while their subsidiary financial institutions are still required to file sepa-rate 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 sub-sidiary data. Additionally, certain adjustments are made to the OTS Thrift Financial Reports to provide closer conformance with the reporting and accounting requirements of the FFIEC Call Reports. (TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)All condition and performance ratios represent weighted averages, which is the sum of the individual numerator values divided by the sum of individual denominator values. All asset and liability figures used in calculating performance ratios represent average amounts for the period (beginning-of-period amount plus end-of-period amount plus any interim periods, divided by the total number of periods). For “pooling-of-interest” mergers, the assets of the acquired institution(s) are included in average assets, since the year-to-date income includes the results of all merged institutions. No adjustments are made for “purchase accounting” mergers. Growth rates represent the percent-age change over a 12-month period in totals for institutions in the base period to totals for institutions in the current period. For the community bank subgroup, growth rates will reflect changes over time in the number and identities of institutions designated as com-munity banks, as well as changes in the assets and liabilities, and income and expenses of group members. Unless indicated otherwise, growth rates are not adjusted for mergers or other changes in the composition of the community bank subgroup. When community bank growth rates are adjusted for mergers, prior period balances used in the calculations represent totals for the current group of com-munity bank reporters, plus prior period amounts for any institutions that were subsequently merged into current community banks.All data are collected and presented based on the location of each reporting institution’s main office. Reported data may include assets and liabilities located outside of the reporting institution’s home state. In addition, institutions may relocate across state lines or change their charters, resulting in an inter-regional or inter-industry migration; institutions can move their home offices between regions, savings institutions can convert to commercial banks, or commercial banks may convert to savings institutions.

ACCOUNTING CHANGESFinancial accounting pronouncements by the Financial Accounting Standards Board (FASB) can result in changes in an individual bank’s accounting policies and in the Call Reports they submit. Such accounting changes can affect the aggregate amounts presented in the QBP for the current period and the period-to-period comparability of such financial data. The current quarter’s Financial Institution Letter (FIL) and related Call Report supplemental instructions can provide additional expla-nation to the QBP reader beyond any material accounting changes discussed in the QBP analysis.https://www.fdic.gov/news/news/financial/2019/fil19040.htmlhttps://www.fdic.gov/news/news/financial/2019/fil19040.pdfhttps://www.fdic.gov/regulations/resources/call/call.htmlFurther information on changes in financial statement presentation, income recognition and disclosure is available from the FASB. http://www.fasb.org/jsp/FASB/Page/LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)All other assets – total cash, balances due from depository insti-tutions, 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 mar-ket value of derivatives, prepaid deposit insurance assessments, and other assets.All other liabilities – bank’s liability on acceptances, limited-life pre-ferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities.Assessment base – effective April 1, 2011, the deposit insurance assessment base changed to “average consolidated total assets minus average tangible equity” with an additional adjustment to the assess-ment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the assessment base was “assessable depos-its” and consisted of deposits in banks’ domestic offices with certain adjustments.Assessment rate schedule – Initial base assessment rates for small institutions are based on a combination of financial ratios and CAMELS component ratings. Initial rates for large institutions—generally those with at least $10 billion in assets—are also based on CAMELS component ratings and certain financial measures combined into two scorecards—one for most large institutions and another for the remaining very large institutions that are structurally and operationally complex or that pose unique challenges and risks in case of failure (highly complex institutions). The FDIC may take additional information into account to make a limited adjustment to a large institution’s scorecard results, which are used to determine a large institution’s initial base assessment rate.While risk categories for small institutions (except new institu-tions) were eliminated effective July 1, 2016, initial rates for small institutions are subject to minimums and maximums based on an institution’s CAMELS composite rating. (Risk categories for large institutions were eliminated in 2011.)The current assessment rate schedule became effective July 1, 2016. Under the current schedule, initial base assessment rates range from 3 to 30 basis points. An institution’s total base assessment rate

https://www.fdic.gov/news/news/financial/2019/fil19040.html

https://www.fdic.gov/news/news/financial/2019/fil19040.pdf

https://www.fdic.gov/regulations/resources/call/call.html


28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: (1) Unsecured Debt Adjustment: An institution’s rate may decrease by up to 5 basis points for unsecured debt. The unsecured debt adjustment cannot exceed the lesser of 5 basis points or 50 percent of an institution’s initial base assessment rate (IBAR). Thus, for example, an institution with an IBAR of 3 basis points would have a maximum unsecured debt adjustment of 1.5 basis points and could not have a total base assessment rate lower than 1.5 basis points. (2) Depository Institution Debt Adjustment: For institutions that hold long-term unsecured debt issued by another insured deposi-tory institution, a 50 basis point charge is applied to the amount of such debt held in excess of 3 percent of an institution’s Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for large institutions that are not well capitalized or do not have a composite CAMELS rating of 1 or 2 may increase (not to exceed 10 basis points) if their brokered deposits exceed 10 percent of domestic deposits.The assessment rate schedule effective July 1, 2016, is shown in the following table:

Total Base Assessment Rates*

Established Small Banks Large and Highly

Complex Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base Assessment Rate

3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt Adjustment

-5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit Adjustment

N/A N/A N/A 0 to 10

Total Base Assessment Rate

1.5 to 16 3 to 30 11 to 30 1.5 to 40

* All amounts for all categories are in basis points annually. Total base rates that are not the minimum or maximum rate will vary between these rates. Total base assessment rates do not include the depository institution debt adjustment.

** Effective July 1, 2016, large institutions are also subject to temporary assessment surcharges in order to raise the reserve ratio from 1.15 percent to 1.35 percent. The surcharges amount to 4.5 basis points of a large institution’s assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assess-ment period near the end of the quarter following the assessment period. Payment is generally due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are effective for assessment purposes as of the examination transmittal date.Assets securitized and sold – total outstanding principal balance of assets securitized and sold with servicing retained or other seller-provided credit enhancements.Capital Purchase Program (CPP) – as announced in October 2008 under the TARP, the Treasury Department purchase of noncumula-tive 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 non-cumulative preferred stock issued by publicly-traded banks are reflected as well in “Surplus.” Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock are classified in a bank’s balance sheet as “Other liabilities.”Common equity Tier 1 capital ratio – ratio of common equity Tier 1 capital to risk-weighted assets. Common equity Tier 1 capital includes common stock instruments and related surplus, retained earnings, accumulated other comprehensive income (AOCI), and limited amounts of common equity Tier 1 minority interest, minus

applicable regulatory adjustments and deductions. Items that are fully deducted from common equity Tier 1 capital include goodwill, other intangible assets (excluding mortgage servicing assets) and certain deferred tax assets; items that are subject to limits in common equity Tier 1 capital include mortgage servicing assets, eligible deferred tax assets, and certain significant investments.Construction and development loans – includes loans for all property types under construction, as well as loans for land acquisi-tion 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 capi-tal is limited in accordance with supervisory capital regulations.Cost of funding earning assets – total interest expense paid on deposits and other borrowed money as a percentage of average earning assets.Credit enhancements – techniques whereby a company attempts to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be associ ated 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 deriva-tive 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 vari-ables 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 un derlying 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 refer-ence rates or prices. Except for currency swaps, the notional prin-cipal is used to calculate each payment but is not exchanged.


FDIC QUARTERLY 29

Derivatives underlying risk exposure – the potential exposure char-acterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result from market risk, credit risk, and operational risk, as well as, interest rate risk.Domestic deposits to total assets – total domestic office deposits as a percent of total assets on a consolidated basis.Earning assets – all loans and other investments that earn interest or dividend income.Efficiency ratio – Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net operating revenues that are absorbed by overhead expenses, so that a lower value indicates greater efficiency.Estimated insured deposits – in general, insured deposits are total domestic deposits minus estimated uninsured deposits. Beginning March 31, 2008, for institutions that file Call Reports, insured depos-its 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 stan-dard maximum deposit insurance amount (SMDIA) of $250,000. Also, the Dodd-Frank Act amended the Federal Deposit Insurance Act to include noninterest-bearing transaction accounts as a new temporary deposit insurance account category. All funds held in noninterest-bearing transaction accounts were fully insured, without limit, from December 31, 2010, through December 31, 2012.Failed/assisted institutions – an institution fails when regulators take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or another healthy insti-tution. This action may require the FDIC to provide funds to cover losses. An institution is defined as “assisted” when the institution remains open and receives assistance in order to continue operating.Fair Value – the valuation of various assets and liabilities on the balance sheet—including trading assets and liabilities, available-for-sale securities, loans held for sale, assets and liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods of market stress, the fair values of some financial instruments and nonfinancial assets may decline.FHLB advances – all borrowings by FDIC-insured institutions from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers, and by TFR filers prior to March 31, 2012.Goodwill and other intangibles – intangible assets include servicing rights, purchased credit card relationships, and other identifiable intangible assets. Goodwill is the excess of the purchase price over the fair market value of the net assets acquired, less subsequent impair-ment 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 remain-ing 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 enter-prises. Also, see “Securities,” below.Net charge-offs – total loans and leases charged off (removed from balance sheet because of uncollectability), less amounts recovered on loans and leases previously charged off.Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to depositors and other creditors, expressed as a percentage of average earning assets. No adjustments are made for interest income that is tax exempt.Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a percent of total assets on a consolidated basis.Net operating income – income excluding discretionary transac-tions 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 d ue, 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 revalu-ation losses on assets held in trading accounts.Other real estate owned – primarily foreclosed property. Direct and indirect investments in real estate ventures are excluded. The amount is reflected net of valuation allowances. For institutions that filed a Thrift Financial Report (TFR), the valuation allowance subtracted also includes allowances for other repossessed assets. Also, for TFR filers the components of other real estate owned are reported gross of valu-ation allowances. (TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)Percent of institutions with earnings gains – the percent of institu-tions that increased their net income (or decreased their losses) com-pared 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 weak-nesses 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.


30 FDIC QUARTERLY

Recourse – an arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank’s claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse.Reserves for losses – the allowance for loan and lease losses on a consolidated basis.Restructured loans and leases – loan and lease financing receiv-ables 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 aver age total (consolidated) assets. The basic yardstick of bank profitability.Return on equity – bank net income (including gains or losses on securities and extraordinary items) as a percentage of average total equity capital.Risk-weighted assets – assets adjusted for risk-based capital defini-tions which include on-balance-sheet as well as off- balance-sheet items multiplied by risk-weights that range from zero to 200 percent. A conversion factor is used to assign a balance sheet equivalent amount for selected off-balance-sheet accounts.Securities – excludes securities held in trading accounts. Banks’ secu-rities portfolios consist of securities designated as “held-to-maturity” (reported at amortized cost (book value)), securities designated as “available-for-sale” (reported at fair (market) value), and equity securities with readily determinable fair values not held for trading.Securities gains (losses) – realized gains (losses) on held-to- maturity and available-for-sale securities, before adjustments for income taxes. Thrift Financial Report (TFR) filers also include gains (losses) on the sales of assets held for sale. (TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)Seller’s interest in institution’s own securitizations – the reporting bank’s ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is generally equal to the total principal amount of the pool of assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the form of securities issued to investors.Small Business Lending Fund – The Small Business Lending Fund (SBLF) was enacted into law in September 2010 as part of the Small

Business Jobs Act of 2010 to encourage lending to small businesses by providing capital to qualified community institutions with assets of less than $10 billion. The SBLF Program is administered by the U.S. Treasury Department (http://www.treasury.gov/resource-center/sb-programs/Pages/Small-Business-Lending-Fund.aspx).Under the SBLF Program, the Treasury Department purchased noncumulative perpetual preferred stock from qualifying depository institutions and holding companies (other than Subchapter S and mutual institutions). When this stock has been issued by a depository institution, it is reported as “Perpetual preferred stock and related surplus.” For regulatory capital purposes, this noncumulative perpetual preferred stock qualifies as a component of Tier 1 capital. Qualifying Subchapter S corporations and mutual institutions issue unsecured subordinated debentures to the Treasury Department through the SBLF. Depository institutions that issued these debentures report them as “Subordinated notes and debentures.” For regulatory capital purposes, the debentures are eligible for inclusion in an institution’s Tier 2 capital in accordance with their primary federal regulator’s capital standards. To participate in the SBLF Program, an institution with outstanding securities issued to the Treasury Department under the Capital Purchase Program (CPP) was required to refinance or repay in full the CPP securities at the time of the SBLF funding. Any outstanding warrants that an institution issued to the Treasury Department under the CPP remain outstanding after the refinancing of the CPP stock through the SBLF Program unless the institution chooses to repurchase them.Subchapter S corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any federal income taxes at the corporate level. This can have the effect of reducing institutions’ reported taxes and increasing their after-tax earnings.Trust assets – market value, or other reasonably available value of fiduciary and related assets, to include marketable securities, and other financial and physical assets. Common physical assets held in fiduciary accounts include real estate, equipment, collectibles, and household goods. Such fiduciary assets are not included in the assets of the financial institution.Unearned income and contra accounts – unearned income for Call Report filers only.Unused loan commitments – includes credit card lines, home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for o riginated 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.

http://www.treasury.gov/resource-center/sb-programs/Pages/Small-Business-Lending-Fund.aspx

http://www.treasury.gov/resource-center/sb-programs/Pages/Small-Business-Lending-Fund.aspx

quarterly banking profile: second quarter 2019 · from the year-ago quarter, while less than 4...

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