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|
| Title |
Definition |
| All other assets |
Total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, investment in unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, and other assets. |
| All other liabilities |
Bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance sheet credit losses, fair market value of derivatives, and other liabilities. |
| Assessment base |
Assessable deposits consist of DIF deposits (deposits insured by the FDIC Deposit Insurance Fund) in banks’ domestic offices with certain adjustments. |
| 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 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. |
| Assets securitized and sold |
Total outstanding principal balance of assets securitized and sold with servicing retained or other seller-provided credit enhancements. |
| Capital Purchase Program (CPP) |
As announced in October 2008 under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as Tier 1 capital for regulatory capital purposes is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are reflected as well in “Surplus.” Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock classified in a bank’s balance sheet as “Other liabilities.” |
| Construction and development loans |
Includes loans for all property types under construction, as well as loans for land acquisition and development. |
| Core capital |
Common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible assets. The amount of eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations. |
| Cost of funding earning assets |
Total interest expense paid on deposits and other borrowed money as a percentage of average earning assets. |
| Credit enhancements |
Techniques whereby a company attempts to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be associated with a given issuance. |
| Deposit Insurance Fund (DIF) |
The Bank (BIF) and Savings Association (SAIF) Insurance Funds were merged in 2006 by the Federal Deposit Insurance Reform Act to form the Deposit Insurance Fund (DIF). |
| Derivative transaction types |
Futures and forward contracts |
Contracts in which the buyer agrees to purchase and the seller agrees to sell, at a specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded on organized exchanges which set limits on counterparty credit exposure. Forward contracts do not have standardized terms and are traded over the counter. |
| Option contracts |
Contracts in which the buyer acquires the right to buy from or sell to another party some specified amount of an underlying variable or index at a stated price (strike price) during a period or on a specified future date, in return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the variable or index at the discretion of the buyer of the contract. |
| Swaps |
Obligations between two parties to exchange a series of cash flows at periodic intervals (settlement dates), for a specified period. The cash flows of a swap are either fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged. |
|
| Derivatives credit equivalent amount |
The fair value of the derivative plus an additional amount for potential future credit exposure based on the notional amount, the remaining maturity and type of the contract. |
| Derivatives 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 underlying risk exposure |
The potential exposure characterized by the level of banks' concentration in particular underlying instruments, in general. Exposure can result from market risk, credit risk, and operational risk, as well as interest rate risk. |
| Domestic deposits to total assets |
Total domestic office deposits as a percent of total assets on a consolidated basis. |
| Earning assets |
All loans and other investments that earn interest or dividend income. |
| Efficiency Ratio |
Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net operating revenues that are absorbed by overhead expenses, so that a lower value indicates greater efficiency. |
| Estimated insured deposits |
In general, insured deposits are total domestic deposits minus estimated uninsured deposits. Beginning March 31, 2008, for institutions that file Call reports, insured deposits are total assessable deposits minus uninsured deposits. |
| Failed/assisted institutions |
An institution fails when regulators take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover losses. An institution is defined as "assisted" when the institution remains open and receives some insurance funds in order to continue operating. |
| Fair Value |
The valuation of various assets and liabilities on the balance sheet including trading assets and liabilities, available-for-sale securities, loans held for sale, assets and liabilities accounted for under the fair value option, and foreclosed assets involves the use of fair values. During periods of market stress, the fair values of some financial instruments and nonfinancial assets may decline. |
| FHLB advances |
All borrowings by FDIC insured institutions from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers. |
| Goodwill and other intangibles |
Intangible assets include servicing rights, purchased credit card relationships, and other identifiable intangible assets. Goodwill is the excess of the purchase price over the fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value, less subsequent quarterly amortization and impairment adjustments. |
| Loans secured by real estate |
Includes home equity loans, junior liens secured by 1-4 family residential properties and all other loans secured by real estate. |
| Loans to individuals |
Includes outstanding credit card balances and other secured and unsecured consumer loans. |
| Long-term assets (5+ years) |
Loans and debt securities with remaining maturities or repricing intervals of over five years. |
| Maximum credit exposure |
The maximum contractual credit exposure remaining under recourse arrangements and other seller-provided credit enhancements provided by the reporting bank to securitizations. |
| Mortgage-backed securities |
Certificates of participation in pools of residential mortgages and collateralized mortgage obligations issued or guaranteed by government-sponsored or private enterprises. Also, see "Securities", below. |
| Net charge-offs |
Total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on loans and leases previously charged off. |
| Net interest margin |
The difference between interest and dividends earned on interest-bearing assets and interest paid to depositors and other creditors, expressed as a percentage of average earning assets. No adjustments are made for interest income that is tax exempt. |
| Net loans to total assets |
Loans and lease financing receivables, net of unearned income, allowance and reserves, as a percent of total assets on a consolidated basis. |
| Net operating income |
Income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from operating income have been adjusted to exclude the portion applicable to securities gains (or losses). |
| Noncurrent assets |
The sum of loans, leases, debt securities and other assets that are 90 days or more past due, or in nonaccrual status. |
| Noncurrent loans & leases |
The sum of loans and leases 90 days or more past due, and loans and leases in nonaccrual status. |
| Number of institutions reporting |
The number of institutions that actually filed a financial report. |
| Other borrowed funds |
Federal funds purchased, securities sold with agreements to repurchase, demand notes issued to the U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts. |
| Other real estate owned |
Primarily foreclosed property. Direct and indirect investments in real estate ventures are excluded. The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report (TFR), the valuation allowance subtracted also includes allowances for other repossessed assets. Also, for TFR filers the components of other real estate owned are reported gross of valuation allowances. |
| Percent of institutions with earnings gains |
The percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier. |
| "Problem" institutions |
Federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory concern. "Problem" institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the degree of risk and supervisory concern, they are rated either a "4" or "5". The number and assets of "problem" institutions are based on FDIC composite ratings. Prior to March 31, 2008, for institutions whose primary federal regulator was the OTS, the OTS composite rating was used. |
| Recourse |
An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. |
| Regions |
| Atlanta: |
Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia |
| Chicago: |
Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin |
| Dallas: |
Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas |
| Kansas City: |
Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota |
| New York: |
Connecticut, District of Columbia, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Puerto Rico, Virgin Islands |
| San Francisco: |
Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, Wyoming, Guam, States of Micronesia |
|
| Reserves for losses |
The allowance for loan and lease losses on a consolidated basis. |
| Restructured loans and leases |
Loan and lease financing receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance with the modified terms. |
| Retained earnings |
Net income less cash dividends on common and preferred stock for the reporting period. |
| Return on assets |
Net income (including gains or losses on securities and extraordinary items) as a percentage of aver age total assets. The basic yardstick of bank profitability. |
| Return on equity |
Net income (including gains or losses on securities and extraordinary items) as a percentage of average total equity capital. |
| Risk Categories and Assessment Rate Schedule |
Risk Categories and Assessment Rate Schedule – The current risk categories became effective January 1, 2007. Capital ratios and supervisory ratings distinguish one risk category from another. The following table shows the relationship of risk categories (I, II, III, IV) to capital and supervisory groups as well as the initial base assessment rates (in basis points), effective April 1, 2009 for each risk category. Supervisory Group A generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite rating of 3; and Supervisory Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment capital groups, undercapitalized includes institutions that are significantly or critically undercapitalized.
|
Capital
Category
|
Supervisory
Group
|
|
A
|
B
|
C
|
|
1. Well Capitalized
|
I
12
– 16 bps
|
II
22 bps
|
III
32 bps
|
|
2. Adequately
Capitalized
|
II
22 bps
|
|
3. Undercapitalized
|
III
32 bps
|
IV
45 bps
|
Effective April 1, 2009, the initial base assessment rates are 12 to 45 basis points. An institution’s total assessment rate may be less than or greater than its initial base assessment rate as a result of additional risk adjustments.
The base assessment rates for most institutions in Risk Category I are based on a combination of financial ratios and CAMELS component ratings (the financial ratios method).
For large institutions in Risk Category I (generally those with at least $10 billion in assets) that have long-term debt issuer ratings, assessment rates are determined by equally weighting the institution’s CAMELS component ratings, long-term debt issuer ratings, and the financial ratios method assessment rate. For all large Risk Category I institutions, additional risk factors are considered to determine whether assessment rates should be adjusted. This additional information includes market data, financial performance measures, considerations of the ability of an institution to withstand financial stress, and loss severity indicators. Any adjustment is limited to no more than one basis point.
Effective April 1, 2009, the FDIC introduced three possible adjustments to an institution’s initial base assessment rate: (1) a decrease of up to 5 basis points for long-term unsecured debt and, for small institutions, a portion of Tier 1 capital; (2) an increase not to exceed 50 percent of an institution’s assessment rate before the increase for secured liabilities in excess of 25 percent of domestic deposits; and (3) for non-Risk Category I institutions, an increase not to exceed 10 basis points for brokered deposits in excess of 10 percent of domestic deposits. After applying all possible adjustments, minimum and maximum total base assessment rates for each risk category are as follows:
|
Total
Base Assessment Rates*
|
|
|
Risk Category I
|
Risk Category II
|
Risk Category III
|
Risk Category IV
|
|
Initial base
assessment rate
|
12 – 16
|
22
|
32
|
45
|
|
Unsecured debt adjustment
|
-5 – 0
|
-5 – 0
|
-5 – 0
|
-5 – 0
|
|
Secured
liability adjustment
|
0 – 8
|
0 – 11
|
0 – 16
|
0 – 22.5
|
|
Brokered
deposit adjustment
|
–
|
0 – 10
|
0 – 10
|
0 – 10
|
|
Total
base assessment rate
|
7 – 24.0
|
17 – 43.0
|
27 – 58.0
|
40 – 77.5
|
|
*All amounts for all risk categories are in basis points
annually. Total base rates that are not the minimum or maximum rate will
vary between these rates.
|
Beginning in 2007, each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment period. Payment is generally due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are effective for assessment purposes as of the examination transmittal date. For institutions with long-term debt issuer ratings, changes in ratings are effective for assessment purposes as of the date the change was announced.
Special Assessment - On May 22, 2009, the FDIC board approved a final rule that imposed a 5 basis point special assessment as of June 30, 2009. The special assessment was levied on each insured depository institution’s assets minus its Tier 1 capital as reported in its report of condition as of June 30, 2009. The special assessment will be collected September 30, 2009, at the same time that the risk-based assessment for the second quarter of 2009 is collected. The special assessment for any institution was capped at 10 basis points of the institution’s assessment base for the second quarter of 2009 risk-based assessment. |
| Risk-based capital groups |
|
(Percent)
|
Total
Risk-Based
Capital *
|
|
Tier 1
Risk-Based
Capital *
|
|
Tier 1
Leverage
|
|
Tangible
Equity
|
|
Well-Capitalized
|
³10
|
and
|
³ 6
|
and
|
³ 5
|
|
-
|
|
Adequately capitalized
|
³ 8
|
and
|
³ 4
|
and
|
³ 4
|
|
-
|
|
Undercapitalized
|
³ 6
|
and
|
³ 3
|
and
|
³ 3
|
|
-
|
|
Significantly
undercapitalized
|
< 6
|
or
|
< 3
|
or
|
< 3
|
and
|
> 2
|
|
Critically
undercapitalized
|
-
|
|
-
|
|
-
|
|
£ 2
|
|
*As a percentage of risk-weighted
assets.
|
|
| Risk-weighted assets |
Assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet items multiplied by risk-weights that range from zero to 200 percent. A conversion factor is used to assign a balance sheet equivalent amount for selected off-balance-sheet accounts. |
| Securities |
Excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as "held-to-maturity", which are reported at amortized cost (book value), and securities designated as "available-for-sale", reported at fair (market) value. |
| Securities gains (losses) |
Realized gains (losses) on held-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. |
| 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. |
| 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. |
| Troubled real estate asset rate |
Noncurrent real estate loans plus other real estate owned as a percent of total real estate loans and other real estate owned. |
| Trust assets |
Market value, or other reasonably available value of fiduciary and related assets, to include marketable securities, and other financial and physical assets. Common physical assets held in fiduciary accounts include real estate, equipment, collectibles, and household goods. Such fiduciary assets are not included in the assets of the financial institution. |
| Unearned income & contra accounts |
Unearned income for Call Report filers only. |
| Unused loan commitments |
Includes credit card lines, home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for sale, which are accounted for as derivatives on the balance sheet.) |
| Volatile liabilities |
The sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities sold under agreements to repurchase, and other borrowings. |
| Yield on earning assets |
Total interest, dividend and fee income earned on loans and investments as a percentage of average earning assets. |
FDIC Quarterly Banking Profile
