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Reference

FDIC quarterly banking profile

This page is about the aggregate condition of all FDIC-insured institutions. The main questions are around profitability and bad-loan stress, as indications of whether the banks are fit to serve their primary function.

Summary

30 May 2012.

Returns on assets and net charge-offs are somewhere in the normal range, and the health of FDIC-insured institutions continues to improve. However no one knows what the exposure of the US financial system to Europe really is, so one should not count on further improvement.

Highlights

Background (19 Apr 2008) As of end 2007

  • 8533 FDIC-insured institutions.
  • Assets $13.0tn, of which $4.8tn loans secured by real estate (of which $2.2tn 1-4 family residential), $1.2tn MBS, $1.4tn C&I, $1.1tn loans to individuals (of which $0.4tn credit cards).

Definitions:

  • Core capital is “common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible assets. The amount of eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.”
  • Net charge-offs are “total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on loans and leases previously charged off.”
  • Noncurrent loans are those “90 days or more past due or in nonaccrual status”.

Sources

See also

Clippings

Bank takeovers distort the statistics somewhat

25 Nov 2008. FDIC website.

http://www2.fdic.gov/qbp/2008sep/qbp.pdf

“Quarterly Banking Profile Third Quarter 2008”

“The failure of Washington Mutual on September 25 meant that a significant amount of charge-off activity was not reflected in the reported industry totals for the quarter. … Under purchase accounting rules that apply to bank mergers, income and expenses that have been booked by an acquired institution are reset to zero as of the date when a change in ownership occurs. Income and expense that have been incurred prior to that date are reflected in adjustments to the assets, equity capital, and reserves of the acquired institution.”

Discontinuities in the data from accounting changes

Q1 2010. FDIC QBP home page.

http://www2.fdic.gov/qbp/2010mar/qbp.pdf

“Quarterly Banking Profile First Quarter 2010”

“New Accounting Rules Affect Reported Cash Flows

Implementation of FAS 166 and 167 caused a large amount of loans in securitized loan pools to be consoli- dated into the reported loan balances of a relatively small number of large insured institutions in the first quarter. As a result, the interest income, interest expense, and charge-offs associated with these balances also were included in first quarter financial reports, and the inclusion of the loan balances triggered changes to capital and reserves, as well. Net interest income totaled $109.1 billion in the first quarter, a $9.7 billion (9.7 percent) increase from first quarter 2009. Most of this increase reflected the application of the new accounting rules. It was somewhat offset by a $2.1 billion (99.4 percent) year-over-year decline in income from securitization activities and a $1.1 billion (18.5 percent) drop in servicing income that were also largely a result of the new rules.”