fdic quarterly second quarter 2008 · than $1 billion, the average roa in the second quarter was...

FDIC Quarterly

Quarterly Banking Profile Second Quarter 2008

An Introduction to the FDICrsquos Small-Dollar Loan Pilot Program

2008 Volume 2 Number 3

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 Informa-tion Center 3501 Fairfax Drive Room E-1002 Arlington VA 22226 E-mail requests should be sent to publicinfofdicgov Change of address information also should be submitted to the Public Information Center

The FDIC Quarterly is available on-line by visiting the FDIC Web site at wwwfdicgov To receive e-mail notification of the electronic release of the FDIC Quarterly and the individual feature articles subscribe at wwwfdicgovaboutsubscriptionsindexhtml

Chairman Sheila C Bair

Director Division of Insurance Arthur J Murton and Research

Executive Editor Maureen E Sweeney

Managing Editors Richard A Brown Diane L Ellis Paul H Kupiec Christopher J Newbury

Editor Kathy Zeidler

Publication Managers Peggi Gill Lynne Montgomery

Media Inquiries (202) 898-6993

FDIC Quarterly 2008 Volume 2 Number 3

The Federal Deposit Insurance Corporation Celebrates Its 75th Year See page ii

Quarterly Banking Profile Second Quarter 2008 Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation reported net income of $50 billion in the second quarter of 2008 a decline of $318 billion from the $368 billion that the industry earned in the second quarter of 2007 Higher loan-loss provisions were the most significant factor in the earnings decline Loss provisions totaled $502 billion more than four times the $114 billion quarterly total of a year ago The average return on assets (ROA) in the second quarter was 015 percent falling from 121 percent in the second quarter of 2007 See page 1

Insurance Fund Indicators Insured deposits increased 05 percent during the second quarter and the Deposit Insurance Fund reserve ratio fell to 101 percent Two institutions failed during the quarter See page 14

Feature Article

An Introduction to the FDICrsquos Small-Dollar Loan Pilot Program On February 5 2008 the FDIC selected 31 banks to participate in its Small-Dollar Loan Pilot Program The goal of the two-year pilot is to help the FDIC identify best practices in affordable small-dollar loan programs that can be replicated by other financial institutions This article summarizes the key parameters of the pilot the small-dollar loan program proposals that participating banks described in their applications and the first quarter 2008 results Banks in the pilot originated more than 3100 small-dollar loans with a principal balance of about $37 million in the first quarter See page 23

The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance Corporation Some of the information used in the preparation of this publication was obtained from publicly available sources that are considered reliable However the use of this information does not constitute an endorsement of its accuracy by the Federal Deposit Insurance Corporation Articles may be reprinted or abstracted if the publication and author(s) are credited Please provide the FDICrsquos Division of Insurance and Research with a copy of any publications containing reprinted material

The Federal Deposit Insurance Corporation Celebrates Its 75th Year

Chairman Bair and the Federal Depost Insurance Corporation (FDIC) officially launched the agencyrsquos 75th anniversary on June 16 2008 The Corporation is celebrating this milestone with a campaign to promote awareness of deposit insurance and coverage limits as well as to reinforce its ongoing commitment to consumers through an initiative to enhance financial literacy and improve consumer savings Please visit our 75th anniversary web site for more infor-mation at wwwfdicgovanniversary

The FDIC is an independent government agency that has been protecting Americansrsquo savings for 75 years Created in 1933 the FDIC promotes public trust and confidence in the US banking system by insuring deposits

The FDIC insures more than $43 trillion of deposits in over 8400 US banks and thriftsmdash deposits in virtually every bank and thrift in the country Throughout our 75-year history no one has ever lost a penny of insured deposits as a result of a bank failure

In addition to immediately responding to insured depositors when a bank fails the FDIC monitors and addresses risks to the Deposit Insurance Fund and directly supervises and examines more than 5200 institutions that are not members of the Federal Reserve System The FDICmdashwith a staff of more than 4500 employees nationwidemdashis managed by a five-person Board of Directors all of whom are appointed by the President and confirmed by the Senate with no more than three being from the same political party Sheila C Bair heads this board as the 19th Chairman of the Federal Deposit Insurance Corporation

FDIC QUARTERLY ii 2008 VOLUME 2 NO 3


INSURED INSTITUTION PERFORMANCE

n Industry Net Income Falls to $5 Billion n Quarterly Loss Provisions Surpass $50 Billion n Asset Quality Indicators Continue to Deteriorate n Industry Assets Post First Decline in Six Years

Second-Quarter Earnings Are 87 Percent Below Year-Earlier Level The continued downturn in the credit cycle combined with lingering weakness in financial markets and falling asset values had a pronounced negative effect on bank-ing industry performance in the second quarter Insured commercial banks and savings institutions reported net income of $50 billion for the second quarter of 2008 This is the second-lowest quarterly total since 1991 and is $318 billion (865 percent) less than the industry earned in the second quarter of 2007 Higher loan-loss provisions were the most significant factor in the earn-ings decline Loss provisions totaled $502 billion more than four times the $114 billion quarterly total of a year ago Second-quarter provisions absorbed almost one-third (319 percent) of the industryrsquos net operating revenue (net interest income plus total noninterest income) the highest proportion since the third quarter of 1989 A year ago provisions absorbed only 73 percent of indus-try revenue The average return on assets (ROA) in the second quarter was 015 percent compared to 121 percent a year earlier Large institutions as a group had more substantial earnings erosion than smaller institu-tions but downward earnings pressure was widely evident

across the industry At institutions with assets greater than $1 billion the average ROA in the second quarter was 010 percent down from 123 percent a year ago At institutions with less than $1 billion in assets the average second-quarter ROA was 057 percent compared to 110 percent in the second quarter of 2007 More than half of all insured institutions (564 percent) reported year-over-year declines in quarterly net income and almost two out of every three institutions (621 percent) reported lower ROAs Almost 18 percent of all insured institutions were unprofitable in the second quarter compared to only 98 percent in the second quarter of 2007

Market-Sensitive Revenues Remain Weak Net operating revenue was only $772 million (05 percent) above the level of a year earlier even though revaluations of certain assets and liabilities under fair value accounting provided a $79-billion boost to pretax earnings in the second quarter Noninterest income of $608 billion was $74 billion (109 percent) lower than in the second quarter of 2007 The decline in noninterest income was attributable to lower trading income (down $55 billion or 886 percent) smaller gains from sales of loans foreclosed properties and other assets (down $17

Chart 1 Chart 2

ndash4

0

4

8

12

16

20

24

28

32

36

40

Securities and Other GainsLosses Net Net Operating Income

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2004 2005 2006 2007 2008

Earnings Remain Weak and Volatile $ Billions

318 312 325 310

340 332 347

326

369 380 381

353 356 368

287

06

193

50

Higher Loss Provisions Were the Primary Cause of the Decline in Industry Earnings

2nd Quarter 2008 vs 2nd Quarter 2007 ($ Billions)

82

388

66

ndash74 ndash28

ndash20

ndash12

ndash4

4

12

20

28

36

Increase in Net Interest

Income

Decrease in Noninterest

Income

Increase in Loan Loss Provision

Decrease in Gains on Securities

Sales

Increase in Noninterest

Expense

Positive Factor

Negative Factors

FDIC QUARTERLY 1 2008 VOLUME 2 NO 3

billion or 412 percent) and lower income from securiti-zation activities (down $15 billion or 283 percent) In addition to the decline in noninterest income securities sales yielded $23 billion in net losses in the second quar-ter compared to $573 million in net gains a year earlier Expenses for goodwill and other intangibles totaled $45 billion more than double the $21 billion incurred by the industry in the second quarter of 2007 Net interest income was one of the few bright spots in industry reve-nues rising by $82 billion (93 percent) over year-earlier levels Servicing fee income increased by $19 billion (359 percent) Service charges on deposit accounts increased by $853 million (86 percent) at insured commercial banks and state-chartered savings banks

Margins Show Little Change as Average Yields and Funding Costs Fall The average net interest margin (NIM) improved slightly compared to the first quarter from 333 percent to 337 percent Improvements and declines were fairly evenly divided among insured institutions with 469 percent reporting lower margins than in the first quarter and 515 percent reporting improved NIMs The relatively small change in quarterly NIM contrasted with declines of more than 50 basis points in both average asset yields and aver-age funding costs between the two quarters The average yield on interest-bearing assets fell from 627 percent in the first quarter to 576 percent in the second quarter while the average interest expense to fund interest-bearing assets fell from 295 percent to 238 percent The industry average NIM has remained within a 5 basis-point range during the last six quarters as community bank margins have fallen by 21 basis points and margins for larger institutions have risen by 10 basis points

Net Charge-Off Rate Rises to Highest Level Since 1991 Loan losses registered a sizable jump in the second quar-ter as loss rates on real estate loans increased sharply at many large lenders Net charge-offs of loans and leases totaled $264 billion in the second quarter almost triple the $89 billion that was charged off in the second quarter of 2007 The annualized net charge-off rate in the second quarter was 132 percent compared to 049 percent a year earlier This is the highest quarterly charge-off rate for the industry since the fourth quarter of 1991 At institutions with more than $1 billion in assets the average charge-off rate in the second quarter was 146 percent more than three times the 044 percent average for institutions with less than $1 billion in assets Net charge-offs increased year-over-year for all major loan categories in the second quarter Charge-offs of 1-4 family residential mortgage loans increased by $58 billion (8219 percent) while charge-offs of real estate construction and land development loans rose by $32 billion (12266 percent) Net charge-offs of home equity loans were $28 billion (6327 percent) higher than a year earlier charge-offs of loans to commercial and industrial (CampI) borrowers were up by $18 billion (1275 percent) credit card charge-offs increased by $17 billion (474 percent) and charge-offs of other loans to individuals grew by $14 billion (703 percent)

Noncurrent Loan Rate Rises Above 2 Percent for the First Time Since 1993 The amount of loans and leases that were noncurrent (90 days or more past due or in nonaccrual status) rose for a ninth consecutive quarter increasing by $267 billion (196 percent) This is the second-largest

Chart 3 Chart 4

Fewer Institutions Are Improving Their Earnings Percent of Institutions with Quarterly Earnings Gains

35

40

45

50

55

60

65

306 606 906 1206 307 607 907 1207 308 608

426

561

The Average Community Bank Margin Did Not Change in the Second Quarter

Net Interest Margin () 50

30

35

40

45 Assets lt $1 Billion

370

333

Assets gt $1 Billion

25 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2

2004 2005 2006 2007 2008


Quarterly Banking Profile

quarterly increase in noncurrent loans during the nine-quarter streak after the $270-billion increase in the fourth quarter of 2007 when quarterly net charge-offs were $10 billion lower All major loan categories registered increased levels of noncurrent loans in the second quarter The amount of 1-4 family residential real estate loans that were noncurrent increased by $117 billion (212 percent) during the quarter while noncurrent real estate construction and land develop-ment loans rose by $82 billion (272 percent) Large increases were also reported in loans secured by nonfarm nonresidential real estate properties (up $20 billion or 196 percent) CampI loans (up $18 billion or 150 percent) and home equity loans (up $17 billion or 255 percent) At the end of June the percentage of the industryrsquos total loans and leases that were noncurrent stood at 204 percent the highest level since the third quarter of 1993

Large Boost in Reserves Does Not Quite Keep Pace with Noncurrent Loans For the third consecutive quarter insured institutions added almost twice as much in loan-loss provisions to their reserves for losses as they charged-off for bad loans Provisions exceeded charge-offs by $238 billion in the second quarter and industry reserves rose by $231 billion (191 percent) The industryrsquos ratio of reserves to total loans and leases increased from 152 percent to 180 percent its highest level since the middle of 1996 However for the ninth consecutive quarter increases in noncurrent loans surpassed growth in reserves and the industryrsquos ldquocoverage ratiordquo fell very slightly from 889 cents in reserves for every $100 in noncurrent loans to 885 cents a 15-year low for the ratio

Chart 5

The Rising Trend in Troubled Loans Shows No Sign of Abating

$ Billions 60

50 Quarterly Change in Noncurrent Loans Quarterly Net Charge-offs

40

30

20

10 05

0 ndash13

163 196

270 262

109

153

71 85 82 89

35 48 38 64

55 61 264

267

Capital Growth Slows Despite Cutbacks in Dividends The industry added $106 billion to its total regulatory capital in the second quarter the smallest quarterly increase since the fourth quarter of 2003 A majority of institutions (600 percent) reported declines in their total risk-based capital ratios during the quarter More than half (509 percent) of the 4056 institutions that paid dividends in the second quarter of 2007 reported smaller dividend payments in the second quarter of 2008 includ-ing 673 institutions that paid no quarterly dividend Dividend payments in the second quarter totaled $177 billion less than half the $409 billion insured institu-tions paid a year earlier Even with reduced dividend payments fewer than half of all institutions (455 percent) reported higher levels of retained earnings compared to a year ago Less than one-fourth of the $231-billion increase in industry loan-loss reserves in the second quarter was included in regulatory capital because the amount of reserves in regulatory capital cannot exceed 125 percent of an institutionrsquos total risk-weighted assets and a number of institutions now have reserves that exceed that limit Despite the slowdown in capital growth and the erosion in capital ratios at many institu-tions 984 percent of all institutions (accounting for 994 percent of total industry assets) met or exceeded the highest regulatory capital requirements at the end of June

Reductions in Trading Accounts Cause Total Industry Assets to Decline Total assets of insured institutions declined by $686 billion during the quarter the first time since the first quarter of 2002 that industry assets have decreased and the largest quarterly decline since the first quarter of 1991 The reduction in assets was driven by a few large

Chart 6

Loan Losses Have Risen Much More Sharply at Large Institutions

Quarterly Net Charge-off Rate (Percent)

00

02

04

06

08

10

12

14

16

18

20

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Assets lt $1 Billion


1 2 3 4 1 2 3 4 1 2ndash10 2006 2007 2008


institutions although almost 40 percent of all insured institutions reported lower assets at the end of June compared to the end of March Assets in trading accounts which increased by $1352 billion in the first quarter declined by $1189 billion (118 percent) in the second quarter The industryrsquos 1-4 family residential mortgage loans which declined by $259 billion in the first quarter fell by an additional $614 billion (28 percent) in the second quarter Real estate construction and development loans registered their first quarterly decline since the first quarter of 1997 falling by $54 billion (09 percent) Total unused loan commitments declined by $1459 billion (18 percent) while letters of credit increased by $289 billion (59 percent) Other real estate ownedmdashproperties acquired through foreclosuremdashincreased by $35 billion (291 percent) during the quarter to $156 billion at midyear

Growth in Small Business Loans Slowed in the Last 12 Months The annual data on loans to small businesses and farms that are reported as of each June 30 showed that total small business and farm loans increased by $253 billion (34 percent) during the 12 months ended June 30 In contrast larger loans to businesses and farms increased by $2494 billion (184 percent) during that period In the June 2006 to June 2007 period small business and farm loans increased by $552 billion (79 percent) These loans currently account for almost one-third (327 percent) of all business and farm loans to domestic borrowers

Deposits Decline in Domestic Offices Total deposits at insured institutions increased by only $69 billion (01 percent) in the second quar-

Chart 7

ter as the decline in industry assets reduced overall funding needs Deposits in foreign offices increased by $468 billion (31 percent) while deposits in domestic offices fell by $398 billion (06 percent) In domestic offices interest-sensitive deposits fell during the quarter while interest-insensitive depos-its grew Domestic office time deposits declined by $506 billion (19 percent) while other domestic interest-bearing deposits fell by $196 billion (01 percent) Noninterest-bearing deposits in domestic offices rose by $304 billion (25 percent) Nonde-posit liabilities declined by $661 billion (19 percent) during the quarter due in large part to a $485-billion (119-percent) drop in liabilities in trading accounts

Two More Banks Fail in the Second Quarter The number of institutions filing quarterly financial reports fell to 8451 at the end of the second quarter down from 8494 at the end of the first quarter Twenty-four new charters were added during the second quarter while 64 existing charters were merged into other institutions Two insured institutions failed during the quarter bringing the total for the first six months of 2008 to four failures Three mutually owned savings banks with combined assets of $11 billion converted to stock ownership in the second quarter The number of institutions on the FDICrsquos ldquoProblem Listrdquo increased from 90 to 117 during the quarter Assets of ldquoproblemrdquo institutions increased from $263 billion to $783 billion

Author Ross Waldrop Sr Banking Analyst Division of Insurance and Research FDIC (202) 898-3951

Chart 8

Industry Assets Shrank for the First Time Since 2002 Domestic Deposits Declined in the Second Quarter Quarterly Change in Interest-Earning Assets $ Billions Quarterly Change $ Billions

500 Mortgage Assets Other Interest-Earning Assets

400 354

309 297 300 273261 218 209 212 204 207

200 178170 169 160176 145

100 78

99

64

ndash3

109

140 154

110 106

37

157

48

173 156

ndash40 0

ndash100

ndash50

50

100

150

200

2005 2006 2007 2008

1 11 12 2 2 23 3 34 4 40 ndash33

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 ndash100 2004 2005 2006 2007 2008


Quarterly Banking Profile TABLE I-A Selected Indicators All FDIC-Insured Institutions

2008 2007 2007 2006 2005 2004 2003 Return on assets () 037 120 081 128 128 128 138 Return on equity () 358 1145 776 1230 1243 1320 1505 Core capital (leverage) ratio () 789 821 797 822 825 811 788 Noncurrent assets plus

other real estate owned to assets () 138 062 094 054 050 053 075 Net charge-offs to loans () 116 047 059 039 049 056 078 Asset growth rate () 848 638 989 904 763 1137 758 Net interest margin () 335 332 329 331 347 352 373 Net operating income growth () -6503 -260 -2756 853 1143 399 1638 Number of institutions reporting 8451 8614 8534 8680 8833 8976 9181

Commercial banks 7203 7350 7283 7401 7526 7631 7770 Savings institutions 1248 1264 1251 1279 1307 1345 1411

Percentage of unprofitable institutions () 1673 952 1207 793 622 597 599 Number of problem institutions 117 61 76 50 52 80 116 Assets of problem institutions (in billions) $78 $24 $22 $8 $7 $28 $30 Number of failedassisted institutions 4 1 3 0 0 4 3 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)

Number of institutions reporting

2nd Quarter 1st Quarter 2nd Quarter Change 2008 2008 2007 072-082

8451 8494 8614 -19 Total employees (full-time equivalent) CONDITION DATA

2204185 2212753 2220907 -08

Total assets $13300800 $13369409 $12261393 85 Loans secured by real estate 4794051 4804695 4619562 38

1-4 Family residential mortgages 2154163 2215541 2207433 -24 Nonfarm nonresidential 1019108 990083 923986 103 Construction and development 627170 632602 600471 44 Home equity lines 646890 624920 576717 122

Commercial amp industrial loans 1492526 1483356 1299539 149 Loans to individuals 1069507 1048217 980847 90

Credit cards 396047 386853 373951 59 Farm loans 58348 53837 55608 49 Other loans amp leases 584180 580269 514109 136 Less Unearned income 2513 2455 3068 -181 Total loans amp leases 7996100 7967919 7466597 71 Less Reserve for losses 144259 121116 81225 776 Net loans and leases 7851841 7846802 7385373 63 Securities 2017381 1953038 1977442 20 Other real estate owned 18910 15643 7995 1365 Goodwill and other intangibles 481434 469176 435892 104 All other assets 2931234 3084750 2454691 194

Total liabilities and capital 13300800 13369409 12261393 85 Deposits 8572675 8565762 8035595 67

Domestic office deposits 7029143 7068980 6692011 50 Foreign office deposits 1543532 1496782 1343583 149

Other borrowed funds 2598224 2587208 2248610 155 Subordinated debt 185078 185580 172377 74 All other liabilities 593314 669917 525712 129 Equity capital 1351510 1360943 1279099 57

Loans and leases 30-89 days past due 111883 110970 74042 511 Noncurrent loans and leases 162913 136208 67686 1407 Restructured loans and leases 14337 10164 3229 3440 Direct and indirect investments in real estate 962 956 1080 -110 Mortgage-backed securities 1322058 1281359 1237426 68 Earning assets 11441474 11474954 10723166 67 FHLB Advances 840573 841580 608457 381 Unused loan commitments 8158474 8304383 8086534 09 Trust assets 21727938 20924568 21020489 34 Assets securitized and sold 1750758 1724121 1638581 68 Notional amount of derivatives 183302893 181599440 154810235 184

INCOME DATA First Half First Half 2nd Quarter 2nd Quarter Change

2008 2007 Change 2008 2007 072-082 Total interest income Total interest expense

Net interest income Provision for loan and lease losses Total noninterest income Total noninterest expense Securities gains (losses) Applicable income taxes Extraordinary gains net

Net income Net charge-offs Cash dividends Retained earnings Net operating income

$343177 $358377 -42 $164886 $182527 -97 152034 183746 -173 68309 94130 -274 191143 174631 95 96577 88397 93 87352 20546 3252 50151 11363 3413

121307 130467 -70 60821 68229 -109 188238 178407 55 97526 90933 73

-1054 2155 NM -2268 573 NM 11088 35013 -683 2130 17904 -881

-496 -912 NM -364 -223 NM 24222 72375 -665 4959 36776 -865 45957 17141 1681 26354 8946 1946 31688 67014 -527 17728 40868 -566 -7467 5362 NM -12769 -4092 NM 25118 71832 -650 6264 36630 -829

Call Report filers only NM - Not Meaningful


TABLE III-A Second Quarter 2008 All FDIC-Insured Institutions TABLE III-A Second Quarter 2008 All FDIC-Insured Institutions

SECOND QUARTER (The way it is)


All Insured Institutions

Asset Concentration Groups

Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders

Other Specialized lt$1 Billion

All Other lt$1 Billion

All Other gt$1 Billion

8451 27 6 1584 4786 845 98 306 756 43 Commercial banks 7203 23 6 1579 4281 218 78 278 705 35 Savings institutions 1248 4 0 5 505 627 20 28 51 8

Total assets (in billions) $133008 $4502 $29805 $1656 $53595 $13790 $713 $329 $992 $27626 Commercial banks 114262 4311 29805 1652 47994 2279 329 298 867 26725 Savings institutions 18746 190 00 05 5600 11511 384 31 125 901

Total deposits (in billions) 85727 1505 18445 1326 37073 8065 588 236 813 17676 Commercial banks 74227 1436 18445 1322 33728 880 265 217 713 17221 Savings institutions 11500 69 00 04 3345 7185 324 19 100 455

Net income (in millions) 4959 2702 1977 485 3414 -5017 148 159 251 841 Commercial banks 10156 2497 1977 484 3214 746 47 109 237 845 Savings institutions

Performance Ratios (annualized)

-5197 205 0 1 200 -5763 101 50 14 -4

Yield on earning assets 576 1186 521 638 595 596 671 476 603 486 Cost of funding earning assets 238 278 235 250 230 298 210 171 234 223

Net interest margin 337 908 286 387 365 298 461 304 368 263 Noninterest income to assets 183 840 183 067 158 092 219 1385 096 162 Noninterest expense to assets 293 714 291 260 306 227 322 1327 295 222 Loan and lease loss provision to assets 151 544 095 023 119 357 240 022 017 116 Net operating income to assets 019 200 029 117 026 -138 063 189 100 031 Pretax return on assets 021 360 029 139 050 -232 120 305 123 011 Return on assets 015 241 026 118 026 -146 082 190 102 012 Return on equity 146 1073 338 1063 225 -1824 893 895 900 128 Net charge-offs to loans and leases 132 587 127 025 099 185 175 052 029 094 Loan and lease loss provision to net charge-offs 19030 12746 18447 14029 17090 26993 16454 17175 10508 23578 Efficiency ratio 5913 4243 6859 6121 5929 6158 4911 7986 6752 5622 of unprofitable institutions 1786 2222 3333 537 2353 1680 1531 2157 780 1860 of institutions with earnings gains

Structural Changes

4256 2963 5000 5259 3565 5527 5102 3856 5185 4651

New Charters 24 0 0 1 7 0 0 16 0 0 Institutions absorbed by mergers 64 0 0 6 50 3 1 0 2 2 Failed Institutions

PRIOR SECOND QUARTERS (The way it was)

2 0 0 0 2 0 0 0 0 0

Return on assets () 2007 121 334 099 126 117 091 304 231 110 126 2005 128 318 071 135 135 122 140 160 109 137 2003 138 401 104 126 131 149 149 065 108 129

Net charge-offs to loans amp leases () hellip 2007 049 389 060 015 028 025 185 025 018 032 2005 042 418 066 015 021 009 111 040 034 017 2003 079 537 139 025 056 018 089 055 031 056

See Table IV-A (page 8) for explanations






All Insured

Institutions

Asset Size Distribution Geographic Regions

Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10

Billion New York Atlanta Chicago Kansas

City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784

Commercial banks 7203 2939 3756 424 84 540 1069 1434 1853 1595 712 Savings institutions 1248 365 717 134 32 494 144 304 107 127 72

Total assets (in billions) $133008 $1771 $13334 $14645 $103257 $24772 $33969 $29377 $9905 $7638 $27347 Commercial banks 114262 1583 10847 11316 90516 17867 31332 27922 9480 6347 21314 Savings institutions 18746 188 2487 3329 12742 6905 2638 1454 425 1291 6033

Total deposits (in billions) 85727 1438 10486 10289 63514 15320 22270 18817 6896 5501 16923 Commercial banks 74227 1295 8649 7964 56318 10722 20610 17787 6600 4757 13751 Savings institutions 11500 143 1836 2325 7196 4598 1660 1030 296 744 3172

Net income (in millions) 4959 260 1862 964 1873 4735 1374 824 2265 1121 -5360 Commercial banks 10156 220 1688 651 7597 3957 2698 796 2266 1212 -773 Savings institutions


-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586

Yield on earning assets 576 630 630 612 562 598 542 510 640 598 637 Cost of funding earning assets 238 245 262 250 233 242 245 231 204 228 251

Net interest margin 337 385 368 362 328 357 297 279 436 370 385 Noninterest income to assets 183 145 108 130 200 211 176 195 318 144 114 Noninterest expense to assets 293 392 319 304 286 297 261 291 392 324 286 Loan and lease loss provision to assets 151 031 053 106 171 103 148 119 164 080 244 Net operating income to assets 019 055 055 026 013 077 015 006 093 056 -052 Pretax return on assets 021 080 075 049 010 115 018 030 137 079 -125 Return on assets 015 059 056 027 007 076 016 011 092 059 -078 Return on equity 146 436 540 241 072 633 159 122 944 601 -790 Net charge-offs to loans and leases 132 028 045 097 154 133 114 127 131 064 179 Loan and lease loss provision to net charge-offs 19030 17585 16652 15674 19509 13835 21180 17672 18333 18730 21560 Efficiency ratio 5913 7831 7007 5912 5749 5500 5906 6223 5504 6497 6085 of unprofitable institutions 1786 2228 1440 1685 3017 1789 3215 1433 1209 1132 3227 of institutions with earnings gains

Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048

New Charters 24 23 1 0 0 8 8 0 2 2 4 Institutions absorbed by mergers 64 26 29 8 1 8 19 15 7 11 4 Failed Institutions


2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164

Net charge-offs to loans amp leases () 2007 049 014 018 033 057 084 026 037 063 023 059 2005 042 019 019 024 051 069 018 026 051 023 063 2003 079 030 031 065 094 114 057 068 105 039 070



TABLE IV-A First Half 2008 All FDIC-Insured Institutions TABLE IV-A First Half 2008 All FDIC-Insured Institutions

FIRST HALF (The way it is)




Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721

Earning assets to total assets Loss Allowance to

8602 7878 8181 9147 8778 9130 9388 8742 9157 8495

Loans and leases 180 537 207 128 151 205 198 144 120 144 Noncurrent loans and leases

Noncurrent assets plus 8855 23360 12004 9585 7288 6563 21738 15022 10847 9238

other real estate owned to assets 138 167 076 107 167 255 080 028 079 091 Equity capital ratio 1016 2198 786 1094 1131 790 939 2118 1118 942 Core capital (leverage) ratio 789 1442 621 1013 882 783 913 1823 1091 660 Tier 1 risk-based capital ratio 1010 1378 864 1351 1028 1288 1080 3980 1772 869 Total risk-based capital ratio 1286 1634 1256 1457 1253 1480 1284 4066 1884 1188 Net loans and leases to deposits 9159 20578 6431 8257 10053 11990 10066 3259 6764 8094 Net loans to total assets 5903 6881 3980 6608 6954 7012 8304 2338 5543 5179 Domestic deposits to total assets

Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426


PRIOR FIRST HALVES (The way it was)

4 0 0 1 3 0 0 0 0 0

Number of institutions 2007 8614 26 4 1645 4731 805 118 377 851 57 2005 8868 29 6 1731 4545 953 118 422 1005 59 2003 9268 37 6 1826 4118 1045 183 524 1429 100

Total assets (in billions) 2007 $122614 $3950 $25443 $1556 $47891 $15510 $1177 $424 $1131 $25533 2005 104744 3723 19273 1390 36481 16420 1462 499 1275 24222 2003 89233 2941 14293 1277 31223 14076 3796 646 1952 19029

Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127

Net charge-offs to loans amp leases () 2007 047 384 058 015 025 024 186 023 016 031 2005 044 426 070 013 021 009 116 031 029 017 2003

Noncurrent assets plus

080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067

Equity capital ratio () 2007 1043 2396 764 1113 1068 1022 1373 2098 1110 1039 2005 1038 2170 846 1096 1009 1089 1208 1840 1106 991 2003 909 1713 708 1087 939 901 858 1534 1104 851

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 their 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 lt $1 Billion - Institutions with assets less than $1 billion whose loans and leases are less than 40 percent of total assets All Other lt $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 gt $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


Quarterly Banking Profile TABLE IV-A First Half 2008 All FDIC-Insured Institutions TABLE IV-A First Half 2008 All FDIC-Insured Institutions



All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593

Loans and leases 180 129 125 149 196 177 165 180 179 134 216 Noncurrent loans and leases

Noncurrent assets plus 8855 8748 7174 6751 9479 11741 8176 8538 8315 7843 8730

other real estate owned to assets 138 120 157 177 130 092 143 126 169 135 174 Equity capital ratio 1016 1336 1028 1096 998 1205 1006 920 972 986 984 Core capital (leverage) ratio 789 1318 983 932 734 874 690 723 798 885 876 Tier 1 risk-based capital ratio 1010 1913 1298 1173 937 1197 872 894 937 1118 1158 Total risk-based capital ratio 1286 2016 1408 1309 1256 1409 1158 1201 1207 1286 1472 Net loans and leases to deposits 9159 7761 8934 9897 9108 9038 9267 8197 9600 9112 10032 Net loans to total assets 5903 6300 7025 6953 5603 5590 6076 5250 6684 6563 6208 Domestic deposits to total assets

Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0

Number of institutions 2007 8614 3582 4371 538 123 1070 1216 1806 2000 1750 772 2005 8868 3996 4266 492 114 1109 1214 1897 2079 1812 757 2003 9268 4509 4183 466 110 1194 1236 2034 2145 1884 775

Total assets (in billions) 2007 $122614 $1898 $12954 $14107 $93655 $22618 $30045 $28309 $9100 $6744 $25797 2005 104744 2075 12098 13512 77059 27298 25794 24269 7654 5700 14028 2003 89233 2314 11540 13031 62348 30536 18673 16784 4396 5964 12880

Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166

Net charge-offs to loans amp leases () hellip 2007 047 014 016 029 056 082 024 034 063 021 058 2005 044 015 018 024 054 072 019 029 055 021 063 2003


080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068

Equity capital ratio () 2007 1043 1342 1048 1128 1024 1248 983 901 1000 1057 1101 2005 1038 1216 1029 1086 1026 1070 1000 930 1083 964 1234 2003 909 1144 1007 1033 857 880 880 857 1076 957 1012

Regions New York - Connecticut Delaware District of Columbia Maine Maryland Massachusetts New Hampshire New Jersey New York Pennsylvania Puerto Rico

Rhode Island Vermont US Virgin Islands Atlanta - Alabama Florida Georgia North Carolina South Carolina Virginia West Virginia Chicago - Illinois Indiana Kentucky Michigan Ohio Wisconsin Kansas City - Iowa Kansas Minnesota Missouri Nebraska North Dakota South Dakota Dallas - Arkansas Colorado Louisiana Mississippi New Mexico Oklahoma Tennessee Texas San Francisco - Alaska Arizona California Hawaii Idaho Montana Nevada Oregon Pacific Islands Utah Washington Wyoming


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

June 30 2008 All Insured Institutions


Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders




Percent of Loans 30-89 Days Past Due All loans secured by real estate 159 224 240 127 135 187 090 111 163 158

Construction and development 201 000 119 278 210 268 286 130 165 108 Nonfarm nonresidential 072 000 061 109 076 061 053 084 137 041 Multifamily residential real estate 068 000 025 118 081 043 016 031 149 047 Home equity loans 105 241 107 053 081 155 073 041 081 114 Other 1-4 family residential 216 103 350 176 180 206 096 134 188 220

Commercial and industrial loans 077 327 042 161 078 089 129 094 164 074 Loans to individuals 196 240 184 197 196 155 195 152 215 154

Credit card loans 230 232 237 125 216 261 115 190 124 241 Other loans to individuals 176 289 161 202 192 086 223 148 217 140

All other loans and leases (including farm) 050 014 055 068 071 045 006 073 067 018 Total loans and leases

Percent of Loans Noncurrent

140 237 146 122 125 183 151 112 163 123

All real estate loans 270 196 270 164 268 326 089 106 116 235 Construction and development 608 000 412 672 593 873 435 153 319 674 Nonfarm nonresidential 118 000 061 149 115 103 127 089 123 149 Multifamily residential real estate 120 000 094 147 144 060 053 255 150 094 Home equity loans 131 215 090 042 089 276 044 014 037 136 Other 1-4 family residential 311 051 393 110 304 344 108 113 100 242




Percent of Loans Charged-off (net YTD)

204 230 172 134 207 312 091 096 111 156





Loans Outstanding (in billions)

116 538 120 021 085 150 172 039 022 078

All real estate loans $47941 $17 $4573 $628 $24936 $9218 $212 $43 $380 $7933 Construction and development 6272 00 98 60 5235 247 08 04 27 593 Nonfarm nonresidential 10191 00 237 175 8010 398 09 13 91 1255 Multifamily residential real estate 2107 00 93 12 1384 444 01 01 06 167 Home equity loans 6469 15 1007 12 2756 1113 105 01 14 1446 Other 1-4 family residential 21542 02 2562 161 7109 7007 88 22 214 4377




Memo Other Real Estate Owned (in millions)

79986 3273 12120 1109 37850 9873 605 78 557 14521

All other real estate owned 189101 -175 15031 2809 111240 43597 206 157 1711 14526 Construction and development 48152 00 10 1040 42576 3654 29 23 273 548 Nonfarm nonresidential 20496 02 110 787 15633 556 35 80 496 2798 Multifamily residential real estate 5554 00 10 127 3732 581 00 00 248 855 1-4 family residential 98692 36 8981 638 40041 37909 133 56 644 10255 Farmland 720 00 00 216 442 03 10 00 49 00 GNMA properties 13915 00 3990 02 8772 1082 00 00 01 68


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




June 30 2008 All

Insured Institutions

Asset Size Distribution Geographic Regions Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco Percent of Loans 30-89 Days Past Due All loans secured by real estate 159 159 129 118 175 108 168 169 118 138 200

Construction and development 201 211 208 201 198 192 187 239 161 160 252 Nonfarm nonresidential 072 127 098 074 055 076 062 103 069 061 052 Multifamily residential real estate 068 112 105 092 052 062 113 149 054 067 024 Home equity loans 105 076 080 071 110 061 126 084 096 064 135 Other 1-4 family residential 216 194 132 124 242 119 225 230 171 230 284

Commercial and industrial loans 077 149 116 091 070 110 080 080 090 069 046 Loans to individuals 196 233 175 197 197 219 184 168 250 144 189

Credit card loans 230 194 232 232 230 228 248 204 229 115 249 Other loans to individuals 176 233 171 176 176 205 176 157 265 150 149

All other loans and leases (including farm) 050 066 057 065 048 053 026 072 054 056 048 Total loans and leases


140 154 127 118 146 127 142 138 124 121 161

All real estate loans 270 165 197 267 290 152 278 314 312 214 322 Construction and development 608 376 529 701 603 445 585 728 521 379 882 Nonfarm nonresidential 118 157 121 105 122 158 100 173 096 084 069 Multifamily residential real estate 120 195 143 206 086 066 147 325 087 195 061 Home equity loans 131 070 067 076 140 068 176 091 109 039 175 Other 1-4 family residential 311 131 121 194 358 125 299 364 603 270 391





204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158

All real estate loans $47941 $766 $7360 $7497 $32318 $8253 $13543 $8588 $3702 $3426 $10429 Construction and development 6272 102 1436 1647 3087 682 2031 1214 526 880 940 Nonfarm nonresidential 10191 223 2552 2515 4901 1965 2617 1951 975 1112 1572 Multifamily residential real estate 2107 19 291 441 1357 512 332 305 102 77 778 Home equity loans 6469 26 359 459 5624 635 2065 1593 779 234 1163 Other 1-4 family residential 21542 308 2431 2288 16516 4411 6296 3343 1124 1014 5354





79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364

All other real estate owned 189101 4555 43024 31053 110469 13825 54248 38298 21197 16865 44670 Construction and development 48152 1089 20290 14445 12328 3652 16736 8469 5161 6660 7475 Nonfarm nonresidential 20496 1256 8503 4266 6472 1927 6441 4915 3151 3145 917 Multifamily residential real estate 5554 132 1957 973 2491 563 1527 1283 670 674 836 1-4 family residential 98692 1950 11924 11191 73626 7319 28977 16560 6752 5679 33404 Farmland 720 125 350 96 149 139 81 58 112 311 19 GNMA properties 13915 07 11 107 13789 158 506 7018 5360 399 474




BlankBlankBlank

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TABLE VI-A Derivatives All FDIC-Insured Commercial Banks and State-Chartered Savings Banks

(dollar figures in millions notional amounts unless otherwise indicated)

2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter Change 2008 2008 2007 2007 2007 072-082

Asset Size Distribution $100 Million $1 Billion

Less than to to Greater than $100 Million $1 Billion $10 Billion $10 Billion

ALL DERIVATIVE HOLDERS Number of institutions reporting derivatives helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1063 1097 1045 1026 1059 04 73 644 268 78 Total assets of institutions reporting derivatives helliphelliphelliphelliphelliphelliphelliphelliphellip $10101476 $10193210 $9827071 $9459618 $9147957 104 $5533 $278064 $871653 $8946226 Total deposits of institutions reporting derivatives helliphelliphelliphelliphelliphelliphelliphellip 6448501 6470257 6324968 6030658 5900485 93 4388 215597 608788 5619728 Total derivatives helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Derivative Contracts by Underlying Risk Exposure

183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681

Interest rate helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 144933417 141879078 129490821 138720253 123336016 175 207 16491 89140 144827579 Foreign exchange helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 19418964 19738204 17174167 16696571 15117713 285 0 24 6475 19412465 Equity helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 2344339 2410959 2522430 2745807 2487655 -58 12 159 1038 2343130 Commodity amp other (excluding credit derivatives) helliphelliphelliphelliphelliphelliphelliphellip 1137363 1129778 1066704 1015444 951725 195 0 2 323 1137039 Credit helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 15468809 16441421 15862846 15396335 12917125 198 0 143 198 15468469 Total helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Derivative Contracts by Transaction Type

183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681

Swaps helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 114178369 112564785 103102442 111396434 95327302 198 32 10528 65872 114101938 Futures amp forwards helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 23582588 22361731 18866462 17126118 16194081 456 83 1806 19116 23561583 Purchased options helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 14500997 14285549 13770867 14547038 14288409 15 12 2018 6226 14492741 Written options helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 14414796 14705216 13954387 15022184 14773502 -24 92 2314 5492 14406897 Total helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Fair Value of Derivative Contracts

166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159

Interest rate contracts helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 75935 62580 20076 30716 20006 2796 1 23 -7 75918 Foreign exchange contracts helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 32017 9670 7980 3119 5661 4656 0 0 -11 32028 Equity contracts helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip -3878 -2426 9485 -20872 -24473 NM 0 4 30 -3911 Commodity amp other (excluding credit derivatives) helliphelliphelliphelliphelliphelliphelliphellip 4976 3257 1785 1664 1946 1557 0 0 3 4972 Credit derivatives as guarantor helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip -398893 -474045 -212447 -104120 -22960 NM 0 0 -15 -398878 Credit derivatives as beneficiary helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Derivative Contracts by Maturity

428844 501034 222426 110905 23824 NM 0 0 0 428844

Interest rate contracts helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip lt 1 year 44995165 42621756 39085183 48918838 39403807 142 80 2250 26155 44966680 helliphelliphelliphelliphelliphelliphelliphelliphellip 1-5 years 39521384 39752478 37222363 36311048 33846133 168 15 8695 25535 39487140 helliphelliphelliphelliphelliphelliphelliphelliphellip gt 5 years 29704342 30105716 27724625 27877687 24588178 208 17 3065 29210 29672050

Foreign exchange contracts helliphelliphelliphelliphelliphelliphelliphelliphelliphellip lt 1 year 12345486 12524601 11591807 10094603 8948450 380 0 12 5072 12340401 helliphelliphelliphelliphelliphelliphelliphelliphellip 1-5 years 1929554 1924840 1604898 1831220 1667700 157 0 3 17 1929535 helliphelliphelliphelliphelliphelliphelliphelliphellip gt 5 years 734305 714707 618960 718390 676071 86 0 0 10 734295

Equity contracts helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip lt 1 year 504259 509709 473413 464820 442652 139 1 37 127 504094 helliphelliphelliphelliphelliphelliphelliphelliphellip 1-5 years 207553 287805 297459 330227 290633 -286 4 42 440 207067 helliphelliphelliphelliphelliphelliphelliphelliphellip gt 5 years 76297 39960 70485 70134 62916 213 0 0 19 76278

Commodity amp other contracts helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip lt 1 year 315202 369747 284837 267197 280133 125 0 0 217 314984 helliphelliphelliphelliphelliphelliphelliphelliphellip 1-5 years 267343 277956 333631 304544 261410 23 0 0 47 267295 helliphelliphelliphelliphelliphelliphelliphelliphellip gt 5 years

Risk-Based Capital Credit Equivalent Amount

28367 33492 28282 31483 27273 40 0 0 5 28362

Total current exposure to tier 1 capital () helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 576 671 454 380 307 02 04 17 669 Total potential future exposure to tier 1 capital () helliphelliphelliphelliphelliphelliphelliphellip 1184 1226 1101 1147 1135 01 04 09 1377 Total exposure (credit equivalent amount) to tier 1 capital () helliphelliphellip 1761 1898 1555 1527 1442 03 07 26 2046

Credit losses on derivatives helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347

Number of institutions reporting derivatives helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 180 171 166 158 166 84 8 59 59 54 Total assets of institutions reporting derivatives helliphelliphelliphelliphelliphelliphelliphelliphellip 8595275 8624389 8306869 7976927 7641306 125 546 24898 268832 8301000 Total deposits of institutions reporting derivatives helliphelliphelliphelliphelliphelliphelliphellip


5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695

Interest rate helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 142264744 139169342 127128959 136071674 120820783 177 6 542 32916 142231280 Foreign exchange helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 18166799 18413342 16483116 15489462 13683371 328 0 1 5812 18160986 Equity helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 2333148 2402414 2515192 2729758 2481730 -60 0 2 326 2332819 Commodity amp other helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1134781 1128387 1065818 1014757 951236 193 0 0 200 1134581 Total helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Trading Revenues Cash amp Derivative Instruments

163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666

Interest rate helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 834 2393 -2531 1624 3056 -727 0 0 8 826 Foreign exchange helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 2096 2084 1880 1936 1266 656 0 0 15 2081 Equity helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 185 -18 217 -98 1020 -819 0 0 0 185 Commodity amp other (including credit derivatives) helliphelliphelliphelliphelliphelliphelliphelliphellip -1529 -3206 -10145 -803 937 NM 0 0 -3 -1526 Total trading revenues helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566

Trading revenues to gross revenues () helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 12 09 -77 18 42 00 -01 05 12 Trading revenues to net operating revenues () helliphelliphelliphelliphelliphelliphelliphelliphellip

HELD FOR PURPOSES OTHER THAN TRADING

214 121 -2780 149 278 00 -07 43 226

Number of institutions reporting derivatives helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 972 1008 965 951 973 -01 65 593 242 72 Total assets of institutions reporting derivatives helliphelliphelliphelliphelliphelliphelliphelliphellip 9804983 9909002 9660622 9299269 8967564 93 4988 256877 784161 8758958 Total deposits of institutions reporting derivatives helliphelliphelliphelliphelliphelliphelliphellip


6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363

Interest rate helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 2668673 2709736 2361862 2648579 2515233 61 201 15949 56224 2596299 Foreign exchange helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 94832 84124 131087 120808 124526 -238 0 14 393 94426 Equity helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 11191 8545 7238 16048 5926 888 12 156 713 10310 Commodity amp other helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 2583 1391 886 687 489 4282 0 2 123 2458 Total notional amount helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 2777279 2803796 2501073 2786122 2646174 50 213 16121 57452 2703493 All line items are reported on a quarterly basis Include spot foreign exchange contracts All other references to foreign exchange contracts in which notional values or fairvalues are reported exclude spot foreign exchange contracts Derivative contracts subject to the risk-based capital requirements for derivatives The reporting of credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and to those banks filing the FFIEC 041 report form that have $300 million or more in total assets


TABLE VII-A Servicing Securitization and Asset Sales Activities (All FDIC-Insured Commercial Banks and State-Chartered Savings Banks)

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Quarterly Banking Profile TABLE VII-A Servicing Securitization and Asset Sales Activities (All FDIC-Insured Commercial Banks and State-Chartered Savings Banks)

(dollar figures in millions) 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter Change

2008 2008 2007 2007 2007 072-082



Assets Securitized and Sold with Servicing Retained or with Recourse or Other Seller-Provided Credit Enhancements Number of institutions reporting securitization activitieshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Outstanding Principal Balance by Asset Type

139 134 127 125 128 86 16 60 24 39

1-4 family residential loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip $1087364 $1068680 $1066324 $1033487 $1040341 45 $35 $518 $8785 $1078027 Home equity loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 7822 8341 9353 9894 10640 -265 0 0 213 7608 Credit card receivables helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 409883 402171 390035 379662 372481 100 0 2993 11634 395257 Auto loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 6224 7495 8285 9755 11800 -473 0 0 252 5972 Other consumer loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 28870 27787 28542 29386 27396 54 0 0 0 28869 Commercial and industrial loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 12497 12555 14469 16183 13489 -74 0 58 5231 7207 All other loans leases and other assets helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 198099 197091 193875 184941 162434 220 15 313 420 197351

Total securitized and sold helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Maximum Credit Exposure by Asset Type

1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292

1-4 family residential loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 7121 7120 7020 6874 6535 90 6 82 15 7017 Home equity loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1527 1752 2000 2336 2402 -364 0 0 8 1519 Credit card receivables helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 24855 21412 19629 19120 18711 328 0 267 694 23894 Auto loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 352 405 380 426 555 -366 0 0 14 338 Other consumer loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1417 1406 1379 2114 1768 -199 0 0 0 1417 Commercial and industrial loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 311 276 603 720 610 -490 0 24 112 174 All other loans leases and other assets helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 2161 3228 3733 4578 1053 1052 10 253 32 1866

Total credit exposure helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 37744 35601 34743 36169 31633 193 17 627 875 36225 Total unused liquidity commitments provided to institutions own securitizations helliphelliphelliphelliphelliphelliphellip

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

1902 2944 4686 5095 5667 -664 0 0 0 1902

1-4 family residential loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 28 25 28 29 27 16 00 02 28 Home equity loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 06 07 08 07 06 00 00 20 06 Credit card receivables helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 21 22 22 21 19 00 12 15 21 Auto loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 22 19 24 19 16 00 00 08 23 Other consumer loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 27 25 31 28 28 00 00 00 27 Commercial and industrial loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 13 12 10 09 05 00 00 28 01 All other loans leases and other assets helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 03 01 01 01 01 00 00 00 03

Total loans leases and other assets helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Securitized Loans Leases and Other Assets 90 Days or More Past Due ()

23 22 24 24 22 11 09 13 23

1-4 family residential loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 20 20 17 13 13 16 00 01 20 Home equity loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 07 07 05 04 03 00 00 11 07 Credit card receivables helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 21 21 19 17 16 00 10 13 21 Auto loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 03 03 04 02 02 00 00 01 03 Other consumer loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 24 23 24 21 21 00 00 00 24 Commercial and industrial loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 13 11 09 07 06 00 00 28 02 All other loans leases and other assets helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 02 02 01 01 02 00 00 00 02

Total loans leases and other assets helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Securitized Loans Leases and Other Assets Charged-Off (net YTD annualized )

18 18 15 13 13 11 08 12 18


Total loans leases and other assets helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Sellers Interests in Institutions Own Securitizations - Carried as Loans

07 04 11 08 05 00 16 26 07

Home equity loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 435 282 347 494 651 -332 0 0 0 435 Credit card receivables helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 82604 73418 86748 77451 73405 125 0 252 4211 78140 Commercial and industrial loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Sellers Interests in Institutions Own Securitizations - Carried as Securities 3506 3263 7671 6018 2843 233 0 0 665 2840


Assets Sold with Recourse and Not Securitized

1 1 2 6 9 -889 0 0 0 1

Number of institutions reporting asset sales helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Outstanding Principal Balance by Asset Type

771 759 759 747 737 46 148 472 106 45

1-4 family residential loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 65945 60386 57612 57400 55168 195 1039 8133 3415 53357 Home equity credit card receivables auto and other consumer loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1718 1886 637 775 603 1849 0 28 3 1686 Commercial and industrial loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 4794 4579 4728 5053 7460 -357 0 173 66 4555 All other loans leases and other assets helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 28358 26105 24082 21509 8035 2529 0 87 531 27740

Total sold and not securitized helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip


100816 92956 87059 84737 71266 415 1040 8421 4015 87339

1-4 family residential loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 14696 14070 14780 15885 14551 10 137 1466 2036 11057 Home equity credit card receivables auto and other consumer loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 171 165 604 742 575 -703 0 5 2 164 Commercial and industrial loans helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 3614 3335 3393 3422 4205 -141 0 156 66 3391

All other loans leases and other assets helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 7508 7180 6968 6299 2226 2373 0 14 111 7383 Total credit exposure helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Support for Securitization Facilities Sponsored by Other Institutions

25989 24750 25745 26348 21557 206 137 1642 2215 21995

Number of institutions reporting securitization facilities sponsored by others helliphelliphelliphelliphelliphelliphelliphelliphellip 47 48 48 50 50 -60 23 15 4 5 Total credit exposure helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 12659 6824 2841 1478 1375 8207 8 94 103 12454

Total unused liquidity commitments helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Other

5492 6778 10314 8242 14093 -610 0 0 0 5492

Assets serviced for others helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Asset-backed commercial paper conduits

3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

Credit exposure to conduits sponsored by institutions and others helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 21083 22332 22226 22592 22211 -51 2 0 257 20824 Unused liquidity commitments to conduits sponsored by institutions and others helliphelliphelliphelliphelliphellip 320507 345968 372709 365850 364656 -121 0 0 0 320507

Net servicing income (for the quarter) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 7246 3532 2718 3635 5330 359 52 139 224 6830 Net securitization income (for the quarter) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 3837 5136 5006 5812 5355 -283 0 47 247 3543 Total credit exposure to Tier 1 capital () helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 75 66 64 65 56 07 18 24 96 Line item titled All other loans and all leases for quarters prior to March 31 2006 The amount of financial assets serviced for others other than closed-end 1-4 family residential mortgages is reported whenthese assets are greater than $10 million Total credit exposure includes the sum of the three line items titled Total credit exposure reported above


INSURANCE FUND INDICATORS

n DIF Reserve Ratio Declines 18 Basis Points to 101 Percent n Insured Deposits Grow by 05 Percent in the Second Quarter n Two Insured Institutions Fail During the Second Quarter

During the second quarter of 2008 total assets of the nationrsquos 8451 FDIC-insured commercial banks and savings institutions decreased by $686 billion (05 percent) During this period total deposits increased by $69 billion foreign deposits increased by $468 billion while deposits in domestic offices shrank by $398 billion This was the largest one-quarter decrease in domestic deposits since the first quarter of 1999 Domestic time deposits greater than $100 thousand decreased by 51 percent ($639 billion) and saving deposits and interest bearing checking accounts decreased by 06 percent ($196 billion) Domestic time deposits less than $100 thousand increased by 10 percent ($133 billion) and domestic noninterest bearing deposits increased by 25 percent ($304 billion) For the 12 months ending June 30 total domestic deposits increased by 50 percent with interest-bearing deposits rising by 52 percent and noninterest-bearing deposits rising by 45 percent This was the strongest 12-month growth in noninterest-bearing deposits since the fourth quarter of 2005

Over the past 12 months the share of assets funded by domestic deposits declined from 55 percent to 53 percent By contrast over the same 12 months foreign deposits as a percent of total assets rose from 110 percent to 116 percent and Federal Home Loan Bank (FHLB) advancesrsquo share of asset funding increased from 50 percent to 63 percent Foreign office deposits increased by 149 percent ($1999 billion) and FHLB advances increased by 381 percent ($2321 billion) over the 12 months ending June 30

Although domestic deposits declined ($398 billion) estimated insured deposits (including US branches of foreign banks) grew by 05 percent ($239 billion) during the second quarter of 2008 The decrease in domestic deposits was thus attributable to a drop in uninsured domestic deposits Over the 12 months

ending in June insured deposits increased by 54 percent For institutions reporting as of June 30 2008 and March 31 2008 insured deposits increased during the second quarter at 4460 institutions (529 percent) decreased at 3929 institutions (466 percent) and remained unchanged at 38 institutions

The Deposit Insurance Fund (DIF) decreased by 144 percent ($76 billion) during the second quarter to $45217 million (unaudited) Accrued assessment income added $640 million to the DIF during the second quarter The fund received $16 billion from unrealized gains on available for sale securities and took in $395 million from interest on securities and other revenue net of operating expenses The reduc-tion in the DIF came primarily from $102 billion in additional provisions for insurance losses These included provisions for failures that have occurred so far in the third quarter

The DIFrsquos reserve ratio equaled 101 percent on June 30 2008 18 basis points lower than the previous quar-ter and 20 basis points lower than June 30 of last year This was the lowest reserve ratio since March 31 1995 when the reserve ratio for a combined BIF and SAIF stood at 098 percent

Two FDIC-insured institutions with combined assets of $19 billion failed during the second quarter of 2008 At the time of failure losses to the DIF were estimated at $216 million For 2008 through June 30 four insured institutions with combined assets of $20 billion failed at an estimated current cost to the DIF of $225 million

Author Kevin Brown Sr Financial Analyst Division of Insurance and Research (202) 898-6817



TABLE I-B Insurance Fund Balances and Selected Indicators Table I-B Insurance Fund Balances and Selected Indicators (dollar figures in millions) Deposit Insurance Fund

2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005

Beginning Fund Balancehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Changes in Fund Balance

$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373

Assessments earnedhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 640 448 239 170 140 94 10 10 7 5 13 Interest earned on investment securitieshelliphelliphelliphellip 651 618 585 640 748 567 476 622 665 478 675 Operating expenseshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 256 238 262 243 248 239 248 237 242 224 252 Provision for insurance losseshelliphelliphelliphelliphelliphelliphelliphelliphellip 10221 525 39 132 -3 -73 49 -50 -6 -45 -19 All other income net of expenseshelliphelliphelliphelliphelliphellip Unrealized gain(loss) on available-for-sale

1 0 -2 24 1 4 5 1 12 349 4

securitieshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1559 127 138 68 -162 81 -21 -18 -77 -57 -235 Total fund balance changehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip -7626 430 659 527 482 580 173 428 371 596 224

Ending Fund Balancehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 45217 52843 52413 51754 51227 50745 50165 49992 49564 49193 48597 Percent change from four quarters earlierhelliphelliphellip -1173 413 448 352 336 315 323 335 321 331 229

Reserve Ratio ()helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 101 119 122 122 121 120 121 122 123 123 125

Estimated Insured Deposits helliphelliphelliphelliphelliphelliphelliphellip 4462426 4438501 4291750 4242607 4235043 4245267 4153786 4100013 4040353 4001906 3890941 Percent change from four quarters earlierhelliphelliphellip 537 455 332 348 482 608 676 702 752 850 742

Assessment Base 7074094 7017114 7053232 6880932 6821489 6801523 6594750 6439326 6386864 6272505 6177429 Percent change from four quarters earlierhelliphelliphellip 370 317 695 686 680 843 676 663 864 815 888

Number of institutions reportinghelliphelliphelliphelliphelliphelliphellip 8462 8505 8545 8570 8625 8661 8692 8755 8790 8803 8846

DIF Reserve Ratios Percent of Insured Deposits

131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608

Deposit Insurance Fund Balance and Insured Deposits

($ Millions) DIF-

DIF Insured Balance Deposits

1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426

TABLE II-B Problem Institutions and FailedAssisted Institutions Table II-B Problem Institutions and FailedAssisted Institutions (dollar figures in millions) 2008 2007 2007 2006 2005 2004 2003 Problem Institutions Number of institutionshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Total assetshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

FailedAssisted Institutions Number of institutionshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Total assetshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947

Prior to 2006 amounts represent sum of separate BIF and SAIF amounts

First Quarter 2006 includes previously escrowed revenue from SAIF-member exit fees

Through June 30


TABLE III-B Estimated FDIC-Insured Deposits by Type of Institution Table III-B Estimated FDIC-Insured Deposits by Type of Institution (dollar figures in millions)

June 30 2008 Number of Institutions

Total Assets

Domestic Deposits

Est Insured

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 7203 $11426172 $5879422 $3549976

FDIC-Supervised helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 4744 1951115 1431841 984855

OCC-Supervised helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1585 7924173 3591232 2054489

Federal Reserve-Supervised helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 874 1550883 856349 510632

FDIC-Insured Savings Institutions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1248 1874628 1149720 907677

OTS-Supervised Savings Institutions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 829 1567216 940411 743811

FDIC-Supervised State Savings Banks helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Total Commercial Banks and

419 307412 209310 163865

Savings Institutions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Other FDIC-Insured Institutions

8451 13300800 7029143 4457653

US Branches of Foreign Banks helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 11 16931 7105 4773

Total FDIC-Insured Institutions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 8462 13317731 7036248 4462426

Excludes $154 trillion in foreign office deposits which are uninsured

Table IV-B Distribution of Institutions and Assessment Base Among Risk CategorieTABLE IV-B Distribution of Institutions and Assessment Base Among Risk Categories

Quarter Ending March 31 2008 (dollar figures in billions) Percent

Annual Percent of Total Rate in Number of of Total Assessment Assessment

Risk Category Basis Points Institutions Institutions Base Base I - Minimum helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 5 2177 256 3358 479

I - Middle helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 501- 600 2818 331 2000 285


I - Maximum helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 7 1358 160 458 65

II helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 10 491 58 593 85

III helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 28 90 11 16 02

IV helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 43 10 01 9 01

Note Institutions are categorized based on supervisory ratings debt ratings and financial data as of March 31 2008

Rates do not reflect the application of assessment credits See notes to users for further information on risk categories and rates



Notes To Users This publication contains financial data and other informa-tion for depository institutions insured by the Federal Deposit Insurance Corporation (FDIC) These notes are an integral part of this publication and provide information regarding the comparability of source data and reporting differences over time

Tables I-A through VIII-A The information presented in Tables I-A through V-A of the FDIC Quarterly Banking Profile is aggregated for all FDIC-insured institutions both commercial banks and savings insti-tutions Tables VI-A (Derivatives) and VII-A (Servicing Securitization and Asset Sales Activities) aggregate informa-tion only for insured commercial banks and state-chartered savings banks that file quarterly Call Reports Table VIII-A (Trust Services) aggregates Trust asset and income informa-tion collected annually from all FDIC-insured institutions Some tables are arrayed by groups of FDIC-insured institu-tions 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 struc-tural changes as well as past due noncurrent and charge-off information for loans outstanding and other assets

Tables I-B through IV-B A separate set of tables (Tables I-B through IV-B) provides comparative quarterly data related to the Deposit Insurance Fund (DIF) problem institutions failedassisted institutions estimated FDIC-insured deposits as well as assessment rate information Depository institutions that are not insured by the FDIC through the DIF are not included in the FDIC Quarterly Banking Profile US branches of institutions head-quartered in foreign countries and non-deposit trust companies are not included unless otherwise indicated Efforts are made to obtain financial reports for all active institutions However in some cases final financial reports are not available for institutions that have closed or converted their charters

DATA SOURCES The financial information appearing in this publication is obtained primarily from the Federal Financial Institutions Examination Council (FFIEC) Call Reports and the OTS Thrift Financial Reports submitted by all FDIC-insured deposi-tory institutions This information is stored on and retrieved from the FDICrsquos Research Information System (RIS) data base

COMPUTATION METHODOLOGY 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 Parent institutions are required to file consolidated reports while their subsidiary financial institutions are still required to file separate reports Data from subsidiary institution reports are included in the Quarterly Banking Profile tables which can lead to double-counting No adjustments are made for any double-counting of subsidiary data 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 ldquopooling-of-interestrdquo 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 ldquopurchase accountingrdquo mergers Growth rates represent the percentage change over a 12-month period in totals for institutions in the base period to totals for institu-tions in the current period All data are collected and presented based on the location of each reporting institutionrsquos main office Reported data may include assets and liabilities located outside of the reporting institutionrsquos home state In addition institutions may relocate across state lines or change their charters resulting in an inter-regional or inter-industry migration eg institutions can move their home offices between regions and savings institutions can convert to commercial banks or commercial banks may convert to savings institutions

ACCOUNTING CHANGES FASB Statement No 157 Fair Value Measurements issued in September 2006 and FASB Statement No 159 The Fair Value Option for Financial Assets and Financial Liabilities issued in February 2007mdashboth are effective in 2008 with early adop-tion permitted in 2007 FAS 157 clarifies fair value and establishes a framework for developing fair value estimates for the fair value measurements that are already required or permitted under other standards Fair value continues to be used for derivatives trading securities and available-for-sale securities Changes in fair value go through earnings for the derivatives and trading securities Changes in the fair value of available-for-sale securities are reported in other compre-hensive income Available-for-sale securities and held-to-maturity debt securities are written down to fair value through earnings if impairment is other than temporary and mortgage loans held for sale are reported at the lower of cost or fair value Loans held for investment are also subject to impairment but are written down based on the present value of discounted cash flows FAS 159 allows banks to elect a fair value option when assets are recognized on the balance sheet and to report certain financial assets and liabilities at fair value with subsequent changes in fair value included in earnings Existing eligible items can be fair-valued as early as January 2007 under FAS 159 if a bank adopts FAS 157 FASB Statement 158 Employersrsquo Accounting for Defined Benefit Pension and Other Postretirement Plansmdashissued in September 2006 requires a bank to recognize in 2007 the funded status of its postretirement plans on its balance sheet An overfund-ed plan is recognized as an asset and an underfunded plan is recognized as a liability An adjustment is made to equity as accumulated other comprehensive income (AOCI) upon application of FAS 158 and AOCI is adjusted in subsequent periods as net periodic benefit costs are recognized in earnings FASB Statement No 156 Accounting for Servicing of Financial Assetsmdashissued in March 2006 and effective in 2007 requires all separately recognized servicing assets and liabilities to be initially measured at fair value and allows a bank the option to subsequently adjust that value by periodic revaluation and recognition of earnings or by periodic amortization to earnings FASB Statement No 155 Accounting for Certain Hybrid Financial Instrumentsmdashissued in February 2006 requires bifurcation of


certain derivatives embedded in interests in securitized finan-cial assets and permits fair value measurement (ie a fair value option) for any hybrid financial instrument that con-tains an embedded derivative that would otherwise require bifurcation under FASB Statement No 133 Accounting for Derivative Instruments and Hedging Activities (FAS 133) In addition FAS 155 clarifies which interest-only and principal-only strips are not subject to FAS 133 Purchased Impaired Loans and Debt SecuritiesmdashStatement of Position 03-3 Accounting for Certain Loans or Debt Securities Acquired in a Transfer The SOP applies to loans and debt securities acquired in fiscal years beginning after December 15 2004 In general this Statement of Position applies to ldquopurchased impaired loans and debt securitiesrdquo (ie loans and debt securities that a bank has purchased including those acquired in a purchase business combination when it is probable at the purchase date that the bank will be unable to collect all contractually required payments receivable) Banks must follow Statement of Position 03-3 for Call Report purposes The SOP does not apply to the loans that a bank has originated prohibits ldquocarrying overrdquo or creation of valuation allowances in the initial accounting and any subsequent valuation allowances reflect only those losses incurred by the investor after acquisition GNMA Buy-back OptionmdashIf an issuer of GNMA securities has the option to buy back the loans that collateralize the GNMA securities when certain delinquency criteria are met FASB Statement No 140 requires that loans with this buy-back option must be brought back on the issuerrsquos books as assets The rebooking of GNMA loans is required regard-less of whether the issuer intends to exercise the buy-back option The banking agencies clarified in May 2005 that all GNMA loans that are rebooked because of delinquency should be reported as past due according to their contractual terms FASB Interpretation No 46mdashThe FASB issued Interpretation No 46 Consolidation of Variable Interest Entities in January 2003 and revised it in December 2003 Generally banks with variable interests in variable interest entities created after December 31 2003 must consolidate them The timing of consolidation varies with certain situations with application as late as 2005 The assets and liabilities of a consolidated variable interest entity are reported on a line-by-line basis according to the asset and liability categories shown on the bankrsquos balance sheet as well as related income items Most small banks are unlikely to have any ldquovariable interestsrdquo in variable interest entities

FASB Interpretation No 48 on Uncertain Tax Positions FASB Interpretation No 48 Accounting for Uncertainty in Income Taxes (FIN 48) was issued in June 2006 as an inter-pretation of FASB Statement No 109 Accounting for Income Taxes Under FIN 48 the term ldquotax positionrdquo refers to ldquoa position in a previously filed tax return or a position expect-ed to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabili-tiesrdquo FIN 48 further states that a ldquotax position can result in a permanent reduction of income taxes payable a deferral of income taxes otherwise currently payable to future years or a change in the expected realizability of deferred tax assetsrdquo As originally issued FIN 48 was effective for fiscal years beginning after December 15 2006 Banks must adopt FIN 48 for Call Report purposes in accordance with the interpre-

tationrsquos effective date except as follows On January 23 2008 the FASB decided to defer the effective date of FIN 48 for eligible nonpublic enterprises and to require those enter-prises to adopt FIN 48 for annual periods beginning after December 15 2007 FASB Statement No 123 (Revised 2004) and Share-Based Paymentsmdashrequires all entities to recognize compensation expense in an amount equal to the fair value of share-based payments (eg stock options and restricted stock granted to employees) As of January 2006 all banks must adopt FAS 123(R) The compensation cost is typically recognized over the vesting period with a corresponding credit to equity The recording of the compensation cost also gives rise to a deferred tax asset FASB Statement No 133 Accounting for Derivative Instruments and Hedging ActivitiesmdashAll banks must recognize derivatives as either assets or liabilities on the balance sheet measured at fair value A derivative may be specifically designated as a ldquofair value hedgerdquo a ldquocash flow hedgerdquo or a hedge of a foreign currency exposure The accounting for changes in the value of a derivative (gains and losses) depends on the intended use of the derivative its resulting designation and the effectiveness of the hedge Derivatives held for purposes other than trading are reported as ldquoother assetsrdquo (positive fair values) or ldquoother liabilitiesrdquo (negative fair values) For a fair value hedge the gain or loss is recognized in earnings and ldquoeffectivelyrdquo offsets loss or gain on the hedged item attribut-able to the risk being hedged Any ineffectiveness of the hedge could result in a net gain or loss on the income state-ment Accumulated net gains (losses) on cash flow hedges are recorded on the balance sheet as ldquoaccumulated other comprehensive incomerdquo and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflect-ed directly in equity as the value of the derivative changes FASB Statement No 149 Amendment of Statement 133 on Derivative Instruments and Hedging Activities provides guidance on the circumstances in which a loan commitment must be accounted for as a derivative Under Statement No 149 loan commitments that relate to the origination of mortgage loans that will be held for sale commonly referred to as interest rate lock commitments must be accounted for as derivatives on the balance sheet by the issuer of the commitment

DEFINITIONS (in alphabetical order) All other assetsmdashtotal cash balances due from depository institutions premises fixed assets direct investments in real estate investment in unconsolidated subsidiaries customersrsquo liability on acceptances outstanding assets held in trading accounts federal funds sold securities purchased with agree-ments to resell fair market value of derivatives and other assets All other liabilitiesmdashbankrsquos liability on acceptances limited-life preferred stock allowance for estimated off-balance-sheet credit losses fair market value of derivatives and other liabilities Assessment basemdashassessable deposits consist of DIF deposits (deposits insured by the FDIC Deposit Insurance Fund) in banksrsquo domestic offices with certain adjustments Assets securitized and soldmdashtotal outstanding principal balance of assets securitized and sold with servicing retained or other seller-provided credit enhancements



Construction and development loansmdashincludes loans for all property types under construction as well as loans for land acquisition and development Core capitalmdashcommon equity capital plus noncumulative per-petual 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 assetsmdashtotal interest expense paid on deposits and other borrowed money as a percentage of average earning assets Credit enhancementsmdashtechniques whereby a company attempts to reduce the credit risk of its obligations Credit enhance-ment may be provided by a third party (external credit enhancement) or by the originator (internal credit enhance-ment) and more than one type of enhancement may be asso-ciated with a given issuance Deposit Insurance Fund (DIF)mdashThe 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 amountmdashThe notional or contractual amounts of derivatives represent the level of involvement in the types of derivatives transactions and are not a quantifica-tion of market risk or credit risk Notional amounts represent the amounts used to calculate contractual cash flows to be exchanged Derivatives credit equivalent amountmdashthe fair value of the derivative plus an additional amount for potential future credit exposure based on the notional amount the remaining maturity and type of the contract Derivatives transaction types

Futures and forward contractsmdashcontracts 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 contractsmdashcontracts 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 Swapsmdashobligations between two parties to exchange a series of cash flows at periodic intervals (settlement dates) for a specified period The cash flows of a swap are either fixed or determined for each settlement date by multiplying the quantity (notional principal) of the underlying variable or index by specified reference rates or prices Except for currency swaps the notional principal is used to calculate each payment but is not exchanged

Derivatives underlying risk exposuremdashthe potential exposure characterized by the level of banksrsquo concentration in particu-lar 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 assetsmdashtotal domestic office deposits as a percent of total assets on a consolidated basis Earning assetsmdashall loans and other investments that earn interest or dividend income Efficiency ratiomdashNoninterest 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 depositsmdashin general insured deposits are total domestic deposits minus estimated uninsured deposits Prior to March 31 2008 insured deposits are total domestic deposits minus estimated uninsured deposits Prior to 2006 the uninsured estimate is based on the excess amounts in accounts of over $100000 Beginning June 30 2006 the uninsured estimate also considers excess amounts in IRA accounts over $250000 Beginning March 31 2008 for institutions that file Call reports insured deposits are total assessable deposits minus estimated uninsured deposits Failedassisted institutionsmdashan institution fails when regula-tors 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 ldquoassistedrdquo when the institution remains open and receives some insurance funds in order to continue operating FHLB advancesmdashall borrowings by FDIC insured institutions from the Federal Home Loan Bank System (FHLB) as report-ed by Call Report filers and by TFR filers Goodwill and other intangiblesmdashintangible assets include ser-vicing 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 estatemdashincludes home equity loans junior liens secured by 1-4 family residential properties and all other loans secured by real estate Loans to individualsmdashincludes outstanding credit card balances and other secured and unsecured consumer loans Long-term assets (5+ years)mdashloans and debt securities with remaining maturities or repricing intervals of over five years Maximum credit exposuremdashthe maximum contractual credit exposure remaining under recourse arrangements and other seller-provided credit enhancements provided by the report-ing bank to securitizations Mortgage-backed securitiesmdashcertificates of participation in pools of residential mortgages and collateralized mortgage obligations issued or guaranteed by government-sponsored or private enterprises Also see ldquoSecuritiesrdquo below Net charge-offsmdashtotal loans and leases charged off (removed from balance sheet because of uncollectibility) less amounts recovered on loans and leases previously charged off Net interest marginmdashthe difference between interest and divi-dends 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 assetsmdashloans and lease financing receiv-ables net of unearned income allowance and reserves as a percent of total assets on a consolidated basis Net operating incomemdashincome excluding discretionary transac-tions such as gains (or losses) on the sale of investment secu-rities and extraordinary items Income taxes subtracted from operating income have been adjusted to exclude the portion applicable to securities gains (or losses) Noncurrent assetsmdashthe sum of loans leases debt securities and other assets that are 90 days or more past due or in non-accrual status Noncurrent loans amp leasesmdashthe sum of loans and leases 90 days or more past due and loans and leases in nonaccrual status Number of institutions reportingmdashthe number of institutions that actually filed a financial report Other borrowed fundsmdashfederal funds purchased securities sold with agreements to repurchase demand notes issued to the US Treasury FHLB advances other borrowed money mort-gage indebtedness obligations under capitalized leases and trading liabilities less revaluation losses on assets held in trading accounts Other real estate ownedmdashprimarily 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 gainsmdashthe percent of insti-tutions that increased their net income (or decreased their losses) compared to the same period a year earlier ldquoProblemrdquo institutionsmdashfederal 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 ldquoProblemrdquo 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 ldquo4rdquo or ldquo5rdquo The number and assets of ldquoproblemrdquo 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 Recoursemdashan arrangement in which a bank retains in form or in substance any credit risk directly or indirectly associat-ed with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bankrsquos 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 lossesmdashthe allowance for loan and lease losses on a consolidated basis Restructured loans and leasesmdashloan and lease financing receiv-ables with terms restructured from the original contract Excludes restructured loans and leases that are not in compli-ance with the modified terms

Retained earningsmdashnet income less cash dividends on common and preferred stock for the reporting period Return on assetsmdashnet income (including gains or losses on securities and extraordinary items) as a percentage of average total assets The basic yardstick of bank profitability Return on equitymdashnet income (including gains or losses on securities and extraordinary items) as a percentage of average total equity capital Risk-based capital groupsmdashdefinition

Total Tier 1 Risk-Based Risk-Based Tier 1 Tangible

(Percent) Capital Capital Leverage Equity

Well-Capitalized ge10 and ge6 and ge5 ndash Adequately

capitalized ge8 and ge4 and ge4 ndash Undercapitalized ge6 and ge3 and ge3 ndash Significantly

undercapitalized lt6 or lt3 or lt3 and gt2 Critically

undercapitalized ndash ndash ndash le2 As a percentage of risk-weighted assets

Risk Categories and Assessment Rate SchedulemdashThe current risk categories and assessment rate schedule 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 assessment rates (in basis points) for each risk category Supervisory Group A generally includes institutions with CAMELS composite ratings of 1 or 2 Supervisory Group B generally includes institutions with a CAMELS composite rating of 3 and Supervisory Group C generally includes institutions with CAMELS composite ratings of 4 or 5 For purposes of risk-based assessment capital groups undercapitalized includes institutions that are significantly or critically undercapitalized

Supervisory Group

Capital Group A B C

I 1 Well Capitalized 5ndash7 bps IIIII

28 bps 10 bps 2 Adequately Capitalized

IVIII3 Undercapitalized 43 bps 28 bps

Assessment rates are 3 basis points above the base rate sched-ule The FDIC may adjust rates up or down by 3 basis points from the base rate schedule without notice and comment provided that any single adjustment from one quarter to the next cannot move rates more than 3 basis points

For most institutions in Risk Category I the assessment rate assigned will be based on a combination of financial ratios and CAMELS component ratings 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 will be determined by weight-ing CAMELS component ratings 50 percent and long-term



debt issuer ratings 50 percent For all large Risk Category I institutions additional risk factors will be 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 will be limited to no more than frac12 basis point 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 will gener-ally be due on the 30th day of the last month of the quarter following the assessment period Supervisory rating changes will be effective for assessment purposes as of the examina-tion transmittal date For institutions with long-term debt issuer ratings changes in ratings will be effective for assess-ment purposes as of the date the change was announced Risk-weighted assetsmdashassets 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 100 percent A conversion factor is used to assign a balance sheet equivalent amount for selected off-balance-sheet accounts Securitiesmdashexcludes securities held in trading accounts Banksrsquo securities portfolios consist of securities designated as ldquoheld-to-maturityrdquo which are reported at amortized cost (book value) and securities designated as ldquoavailable-for-salerdquo reported at fair (market) value Securities gains (losses)mdashrealized 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 Sellerrsquos interest in institutionrsquos own securitizationsmdashthe report-ing bankrsquos 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 Sellerrsquos interests differ from the securities issued to investors by the securitization structure The principal amount of a sellerrsquos 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 ie in the form of securities issued to investors Subchapter S CorporationmdashA 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 institutionsrsquo reported taxes and increas-ing their after-tax earnings Trust assetsmdashmarket 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 amp contra accountsmdashunearned income for Call Report filers only Unused loan commitmentsmdashincludes credit card lines home equity lines commitments to make loans for construction loans secured by commercial real estate and unused commit-ments to originate or purchase loans (Excluded are commit-ments after June 2003 for originated mortgage loans held for sale which are accounted for as derivatives on the balance sheet) Volatile liabilitiesmdashthe sum of large-denomination time depos-its foreign-office deposits federal funds purchased securities sold under agreements to repurchase and other borrowings Yield on earning assetsmdashtotal interest dividend and fee income earned on loans and investments as a percentage of average earning assets


Feature Article


On February 5 2008 the FDIC selected 31 banks to participate in its Small-Dollar Loan Pilot Program1

The pilot is a two-year case study designed to illustrate how banks can profitably offer affordable small-dollar loans as an alternative to high-cost financial products such as payday loans and fee-based overdraft protec-tion Participating banks provide quarterly information about their small-dollar loan programs which will be analyzed to identify and report on the most effective features for creating profitable business models for such loans

This article summarizes the key parameters of the pilot the proposals that participating banks described in their applications and the first quarter 2008 results Overall banks in the pilot originated more than 3100 small-dollar loans with a principal balance of about $37 million in the first quarter Eight of the banks reported on existing small-dollar loan programs while the remaining banks reported on new programs It is difficult to draw conclusions on the basis of only one quarter of data for mostly new programs However an important initial observation is that small-dollar loans have provided pilot banks with opportunities for cross-selling other products which creates significant poten-tial for building profitable customer relationships

Parameters of the Pilot To be considered for the pilot an insured institution had to meet the following requirements

bull A composite ldquo1rdquo or ldquo2rdquo rating on its most recent Safety and Soundness examination and a Manage-ment rating of ldquo1rdquo or ldquo2rdquo

bull Satisfactory policies and procedures in all areas including lending audits aggregate risk internal controls liquidity interest rate risk compliance and Bank Secrecy ActAnti-Money Laundering

1 More information regarding the FDIC Small-Dollar Loan Pilot Program can be found at httpwwwfdicgovsmalldollarloans

bull A composite ldquo1rdquo or ldquo2rdquo rating on its most recent Compliance examination

bull At least a ldquoSatisfactoryrdquo rating on its most recent Community Reinvestment Act evaluation and

bull Not currently subject to a formal or informal enforcement action or the subject of an investiga-tion or inquiry

A key goal of the pilot is to observe and encourage participating institutions to experiment with providing safe sound affordable and profitable small-dollar loans Therefore the FDIC provided only general guidelines for banks that sought to participate It was anticipated that programs would be generally consistent with the FDICrsquos Small-Dollar Loan Guidelines with room for some exceptions2 The following are some of the primary features described in the Guidelines

bull Loan amounts of up to $1000

bull Payment periods that extend beyond a single paycheck cycle

bull Annual percentage rates (APRs) below 36 percent

bull Low or no origination fees

bull No prepayment penalties

bull Streamlined underwriting

bull Prompt loan application processing

bull Automatic savings component

bull Access to financial education

2 The FDICrsquos Small-Dollar Loan Guidelines issued on June 19 2007 can be found at httpwwwfdicgovnewsnewspress2007pr07052ahtml


Small-Dollar Loan Program Proposals from Participating Banks Banks that met the selection criteria submitted an application to the FDIC describing their existing or proposed small-dollar loan programs The FDIC selected 31 banks with assets ranging from $26 million to $104 billion to be part of the pilot (see Table 1) The participating banks are headquartered in 17 states and have more than 560 branches located in 27 states The banks have on average 18 branches although the number of branches varies from 1 to 673

3 Data are from first quarter 2008

Table 1

Eight of the 31 banks had small-dollar loan programs operating when they applied for the pilot while 23 banks described new programs Many of the banksmdash especially those with new programsmdashhave already made changes based on lessons learned during the design and launch phases However it is useful to summarize their initial plans to track and report on the outcomes of practices as the pilot proceeds

Loan Characteristics At the time of application 24 banks indicated that they would offer only closed-end credit two indicated that they would offer both open- and closed-end credit one indicated that it would offer only open-end credit and four were unclear as to the type of credit they would offer Banks in the pilot set initial maximum interest rates

Small-Dollar Loan Pilot Program Participants Vary in Size Bank Location Total Assets ($000s) Number of Branches

Amarillo National Bank Amarillo TX 2623339 15 Armed Forces Bank Fort Leavenworth KS 803840 51 Bank Commerce Stilwell Stilwell OK 77098 3 Bank Five Fall River MA 671445 13 BBVA Bancomer USA Diamond Bar CA 141008 33 Benton State Bank Benton WI 45833 3 Citizens Trust Bank Atlanta GA 354311 10 Citizens Union Bank Shelbyville KY 579178 20 Community Bank amp Trust Cornelia GA 1148448 44 Community Bank of Marshall Marshall MO 84815 6 Community Bank-WheatonGlen Ellyn Glen Ellyn IL 300497 3 Cooperative Bank Jacksonville NC 958700 24 First National-Fairfax Fairfax MN 26010 1 First State Bank Tonganoxie KS 317881 9 First United Bank Crete IL 495480 5 Kentucky Bank Paris KY 633263 16 Liberty Bank New Orleans LA 377924 17 Liberty National Paris TX 246857 3 Main Street Bank Kingwood TX 201244 3 Mitchell Bank Milwaukee WI 81555 11 National Bank of KC Overland Park KS 942043 6 Newbridge Bank Greensboro NC 2068656 41 Oklahoma State Bank Guthrie OK 41804 4 Pinnacle Bank Nebraska Lincoln NE 2182610 56 Red River Bank Alexandria LA 647274 12 Riverside National Bank Fort Pierce FL 4519993 67 State Bank of Alcester Alcester SD 82866 1 The Heritage Bank Hinesville GA 664455 28 The Savings Bank Wakefield MA 389335 9 White Rock Bank Cannon Falls MN 148214 7 Wilmington Trust Wilmington DE 10377373 44

Note Data are from first quarter 2008

Source FDIC


Small-Dollar Loan Pilot Program

between 11 percent and 36 percent with an average of 18 percent Two-thirds of the banks planned to offer maximum interest rates in the 13 percent to 18 percent range (see Chart 1)

Fifteen banks reported that they would charge an application fee The fees ranged from $18 to $6150 with an average fee of $34 For banks providing APRs the average for their small-dollar loans ranged from 14 percent to 27 percent

Loan terms ranged from three biweekly installments (six weeks) to 36 monthly payments As shown in Chart 2 maximum planned loan terms were fairly well distributed among banks offering 12 24 and 36 monthly payments

Underwriting and Program Features At the time of application most banks did not address the use of credit scores in underwriting although four banks specified that minimum credit scores would be required and three indicated that there would be no minimum credit scores Five banks indicated that they planned to underwrite small-dollar loans within 24 hours of application submission while the other banks did not address turnaround times

Most banks did not indicate whether deposit account relationships would be a prerequisite for consumers receiving small-dollar loans However nine banks indicated that they would require such a relationship Of these banks six indicated that direct deposit of a paycheck or another income stream would be manda-tory Moreover four of these six banks (and two others) encouraged automatic debit for note payments

Seventeen banks did not specify a consumer education component in their applications while 14 banks mentioned some sort of financial literacy component Many applications described consumer education very generally for example mentioning that credit counsel-ing would be made available as needed or indicating that financial literacy materials are available in the bank branch

A few banks provided more explicit descriptions of financial education One application indicated that three formal financial education classes would be required for customers with very low credit scores Another bank which receives referrals for its small-dollar loan program from a nonprofit organization described a comprehensive financial literacy package

Chart 1

Eighty Percent of Small-Dollar Pilot Program Banks Offer Interest Rates of 18 Percent or Less

Interest RateInterest Rate Less than 1219 to 36 13 of

pilot banks

pilot banks

67 of pilot banks

20 of

Interest Rate 13 to 18

Source FDIC

Chart 2

Most Small-Dollar Loan Pilot Program Participants Plan to Offer Loans with

between 12 and 36 Installments

0

5

10

15

20

25

30

35

Less than 12 12ndash18 24 36 Maximum Number of Loan Payments

Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC

featuring budget evaluation case management finan-cial education and a crisis-intervention program that is a prerequisite to a consumer being referred for a small-dollar loan Another bank indicated that it would offer a $15 rebate of the application fee to small-dollar loan applicants who completed a formal financial literacy course

Linked Savings Programs In launching the pilot the FDIC indicated a particular interest in programs with automatic savings features The FDIC plans to deter-mine whether savings products linked to small-dollar loans will reduce customer reliance on short-term


high-cost credit over time Sixteen banks planned to have mandatory savings elements in their small-dollar loan programs while another 4 encouraged savings and 11 indicated no plans for linked savings accounts

All of the savings programs indicated that the savings accounts would partially collateralize the loans and specified limits on withdrawals generally tied to the life of the loan Six banks indicated that some portion of the amount borrowed ranging from 5 percent to 25 percent would be added to the principal amount of the loan and deposited into a savings account One bank indicated that a flat $500 would be added to the principal of each loan and deposited into a savings account Four banks said they would require periodic deposits to savings accounts by adding some amountmdash $10 or $15 or 25 percent of the paymentmdashto each scheduled loan repayment

Five banks indicated that they would make financial contributions to the savings accounts of borrowers as follows

bull An additional 10 percent in principal will be added to the loan and deposited into a savings account If the loan is repaid as agreed and the customer is able to match the original deposit into savings the bank will refund application fees

bull At the time of the loan the bank will open a savings account for the customer and deposit $1 If the loan performs as agreed the bank will match customer deposits into the account up to $100

bull At the time of the loan the bank will add $15 to the principal of the loan and deposit it in a savings account If the loan performs as agreed the bank will add 10 percent of the balance of the savings account to the customerrsquos account

bull At the time of the loan customers will have the option of opening a savings account with as little as $5 The bank will match the opening deposit up to $25

bull Customers will be encouraged to open a passbook savings account with as little as $1 and a waiver of all service charges The bank will match the first $10 in deposits in each account

existing customers while the remainder were unde-cided at the time of application or indicated that the program would be open to both existing and new customers

Sixteen banks specified target markets for their small-dollar loan products with some targeting multiple markets

bull Ten specified low- and moderate-income households

bull Four specified military personnel

bull Three specified college students

bull Two specified the Latino market

bull One specified the Native American market

One bank indicated that it planned to offer seasonal small-dollar loans around holidays and during tax season

The banks outlined a number of diverse advertising strategies in their applications for the pilot They mentioned 66 different but related approaches the most common of which were media advertising (11 banks) and point-of-sale displays (10 banks) (see Table 2)

Summary of First Quarter 2008 Results First quarter 2008 results were due May 15 2008 Of the 31 banks in the pilot 29 submitted reports4 Of those banks 8 reported on programs that existed before the pilot and 21 reported on newly developed programs Four of the banks with new programs indi-cated that they did not make any small-dollar loans during the quarter as they were finalizing aspects of their programs The 25 banks that originated small-dollar loans during the quarter all reported that they made only closed-end loans

Banks were asked to provide separate data points for loans of up to $1000 and more than $1000 This threshold is consistent with the Guidelines and was chosen for the pilot to determine whether the $1000 level can be used as a ldquobright linerdquo for a repli-cable small-dollar loan template (see Table 3) In addition five of the banks with existing programs

Marketing and Advertising Nine banks indicated 4 The two banks that did not submit reports indicated that they did not that small-dollar loans would be offered only to their originate small-dollar loans in first quarter 2008



Table 2

Pilot Program Banks Have Diverse Marketing Strategies

Marketing Category

Percentage of Number of Percentage of Banks Using

Banks Using Approach Approach Marketing Approach Approach Usagea (31 Banks)

Percentage of Total Usage for Categoryb

Traditional bank marketing

Providing brochures 1 15 32 Direct mailing 4 61 129 Statement stuffers 4 61 129 Financial literacy programs 6 91 194 Point of sale displays 10 152 323

379

Staff or community-based marketing

Outbound calls 2 30 65 Staff incentives 1 15 32 Market to current customers 4 61 129 Word of mouth 4 61 129 Referrals from nonprofits 5 76 161 Via social service organizations 4 61 129 Via churches 2 30 65

333

Media marketing

Media announcements 3 46 97 Media advertising 11 167 355

212

Internet marketing

Bank website advertising 4 61 129 Internet advertising 1 15 32

76

TOTALS 66 1000 NA 1000

Source FDIC a Sixty-six distinct but often related approaches were noted in the bank applications This column shows the distribution of the use of the 66 approaches b The 66 approaches were organized into four marketing categories This column shows the distribution of the use of the four categories

had disproportionately large programs compared with those of the other banks therefore results for these banks are isolated from the rest of the group in Table 3 to prevent skewing the loan volume However with respect to basic loan characteristicsmdash such as interest rates fees and repayment termsmdash there is little difference between banks that made a few loans and those that originated a large volume of loans Therefore there is no distinction between large and small programs for the small-dollar loan term data in Table 4

As shown in Table 3 20 banks originated 1523 loans of $1000 or less with combined principal of about $1 million Four banks originated almost 1400 of these loans with one particularly active bank report-ing 966 loans of $1000 or less Excluding these large originators the 16 banks that made small-dollar loans up to $1000 originated eight loans on average

For loans above $1000 15 banks originated 1617 loans with combined principal of about $27 million Five banks originated more than 1500 of these loans with one bank reporting 623 loans above $1000

Excluding these large originators the ten banks that made small-dollar loans above $1000 originated eight loans on average

Table 4 summarizes the basic characteristics of small-dollar loans made in first quarter 2008 For banks that made loans of $1000 or less the average loan size was $678 the average loan term was ten months and the average interest rate was 151 percent Seven banks that originated loans of $1000 or less reported APRs averaging 238 percent

For banks that made loans above $1000 the average loan size was $1695 although two banks in this group reported making average loans greater than $30005

The average loan term for loans in excess of $1000 was 17 months and the average interest rate was 155

5 In this initial reporting period to encourage innovation there was no limit on the loan amount that could be included in the pilot An unintended consequence of not having an upper limit was that a few banks reported several larger loans that may have skewed the average As the result of a discussion with participating banks about what constitutes a small-dollar loan a reporting limit of $2500 will be imposed for future data submissions


Table 3

Small-Dollar Loan Pilot Program 1Q08 Summary of Loan Number and Volume Data Number of

Banks Reporting Total Average Minimum Maximum

Loans Up to $1000

All Banks of Notes 20 1523 53 1 966 Note Volume 14 $1013118 $72366 $401 $641050

Banks Originating Fewer Than 50 Loans of Notes 16 132 8 1 29 Note Volume 10 $71147 $7115 $401 $21710

Banks Originating More Than 50 Loans of Notes 4 1391 348 55 966 Note Volume 4 $941971 $235493 $24450 $641050

Loans Over $1000




Source FDIC

Table 4

Small-Dollar Loan Pilot Program 1Q08 Summary of Loan Characteristics Number of

Banks Reporting Average Minimum Maximum

Loans Up to $1000

Loan Amount

Term (months)

Interest Rate (percent)

Non-zero Fees (dollars)

APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC



Small-Dollar Loans Open the Door to Profitable Relationships

Armed Forces Bank Using Small-Dollar Loans Pinnacle Bank Using Small-Dollar Loans to to Retain Customers Create New Relationships Armed Forces Bank in Fort Leavenworth Kansas Pinnacle Bank headquartered in Lincoln Nebraska with more than $800 million in total assets and is a $22 billion bank with 56 branches Pinnacle 51 branches has been originating small-dollar Bankrsquos small-dollar loan program is new the first loans for about four years The program has about loans under the program were originated during first $45 million in loans outstanding (about $18 quarter 2008 The program was initially piloted in million was booked in first quarter 2008) and is two branches in Lincoln and Omaha and was targeted almost exclusively to military personnel targeted to the Latino market Pinnacle originated Armed Forces Bank generally offers loans from 19 loans under its small-dollar loan program through $250 to $2000 All loans are closed-end transac- the first quarter All loans are closed-end with terms tions for up to 24 months The interest rate is 18 ranging from seven to ten months and interest rates percent and there are no fees The borrower must are about 10 percent Fees of up to $50 may be open an account with the bank and maintain direct assessed but beginning in third quarter 2008 half of deposit Loan payments are automatically debited the fee will be rebated if the customer opens a from the borrowerrsquos account savings account

Armed Forces Bank views its small-dollar loan as While it is too early to assess the overall profitability a retention product that helps customers who are of the program Pinnacle Bank has noted that the experiencing problems regain their financial program has not negatively affected bank profitabil-integrity and allows them to remain in a banking ity Pinnacle Bank views the small-dollar loan as a relationship Armed Forces Bank reports that it way of introducing new customers to the bank and generally breaks even on this program and that noted that 18 of its 19 small-dollar loan customers relationships with small-dollar customers are just have expanded their relationship with the bank by as profitable as those with customers who use migrating to other products Most have added more traditional products and services In addition checking accounts 14 have debit cards 5 have to obtaining the use of funds from the mandatory savings accounts 1 has a certificate of deposit and direct deposit the bank has been successful in 1 has opened an Individual Retirement Account migrating small-dollar loan customers to other Pinnacle Bank has been pleased with the response to products In first quarter 2008 64 small-dollar the new program so far Beginning in second quarter loan customers who paid as agreed migrated into 2008 the program was expanded to all branches in traditional loan products Lincoln and Omaha and Pinnacle will soon begin a

marketing campaign with direct mail and newspaper advertisements The marketing plan will specifically address the encouraged savings component offering borrowers a coupon for $25 toward new saving Advertising will also directly position Pinnaclersquos small-dollar loan as an alternative to payday lending

percent Four banks that originated loans in excess of $1000 reported APRs that averaged about 165 percent

Other Program Statistics Since most of the small-dollar loan programs are new and reporting has just begun only five banks reported delinquencies for loans made in the first quarter ranging from 1 to 19 loans per bank

Of the 29 banks that reported first quarter results linked savings are mandatory for 13 programs strongly encouraged for 8 programs and not required for 8 programs Thirteen banks reported that a total of 46 linked savings accounts were opened Ten banks reported an approximate aggregate balance of $21300 in linked savings accounts


Three banks noted that they believed small-dollar loan customers were using fewer high-cost debt products although these observances were mostly anecdotal

Few banks provided profitability data for their programs primarily because most programs are new and have a relatively low volume of loans However three banks indicated that they broke even on the small-dollar loan product while two indicated that they did not Including deposits and other accounts five banks reported that the overall relationship with small-dollar loan customers was profitable while two reported that it was not

The relationship-building aspect of the small-dollar loan product could prove to be important in determin-ing the feasibility and profitability for banks in the pilot More than half (13) of the 25 banks that reported first quarter results indicated that customers have already migrated to other bank products from the small-dollar loan product while only 2 banks reported no migration Deposit accounts are the predominant prod-ucts that pilot banks have opened for small-dollar customers although other more sophisticated products also have been provided One bank that had an exist-ing program indicated that many small-dollar loan customers are approved for auto loans after their initial small-dollar loan is paid and that ldquoauto loans appear to be the next step in establishing a lending relationship with small-dollar loan customersrdquo

Two case studies presented in the text box highlight the profit potential for cross-selling to small-dollar loan customers6 Armed Forces Bank has the largest and oldest program in the pilot it reports that while the small-dollar program breaks even the overall customer relationship is as profitable as a traditional

6 Banks listed in this article are for illustration only The FDIC does not endorse any bank or product

relationship Pinnacle Bank created a new small-dollar loan program and is not yet able to assess its profitabil-ity However it reports strong migration to other bank products (18 of 19 borrowers) and views the small-dollar loan as an important draw for new customers

Conclusion Although the Small-Dollar Loan Pilot Program is still in its initial stages participating banks are already demonstrating innovative strategies in areas such as advertising and linked savings that may prove to be replicable for other banks Banks in the pilot are well within the 36 percent maximum APR established in the FDICrsquos Small-Dollar Loan Guidelines and five banks thus far have reported using the small-dollar product as a cornerstone for profitable relationships These early results provide some indication that banks can profitably provide affordable alternatives to high-cost short-term credit The FDIC will continue to explore profitability and other noteworthy features of participating bank programs as the pilot progresses

Authors Susan Burhouse Senior Financial Economist Division of Insurance and Research sburhousefdicgov

Rae-Ann Miller Special Advisor to the Director Division of Insurance and Research rmillerfdicgov

Aileen G Sampson Financial Economist Division of Insurance and Research aisampsonfdicgov

The authors would like to thank the following persons for their review of this article Andrew Stirling Special Advisor Division of Supervision and Consumer Protection FDIC Robert Dixon Senior Vice President Lending Armed Forces Bank and Dennis Thomas Director of Regulatory Compliance Pinnacle Bank


Structure Bookmarks

Second Quarter 2008



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 Informa-tion Center 3501 Fairfax Drive Room E-1002 Arlington VA 22226 E-mail requests should be sent to publicinfofdicgov Change of address information also should be submitted to the Public Information Center

The FDIC Quarterly is available on-line by visiting the FDIC Web site at wwwfdicgov To receive e-mail notification of the electronic release of the FDIC Quarterly and the individual feature articles subscribe at wwwfdicgovaboutsubscriptionsindexhtml

Chairman Sheila C Bair

Director Division of Insurance Arthur J Murton and Research

Executive Editor Maureen E Sweeney

Managing Editors Richard A Brown Diane L Ellis Paul H Kupiec Christopher J Newbury

Editor Kathy Zeidler

Publication Managers Peggi Gill Lynne Montgomery

Media Inquiries (202) 898-6993





Feature Article















Chart 1 Chart 2

ndash4

0

4

8

12

16

20

24

28

32

36

40


1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2004 2005 2006 2007 2008


318 312 325 310

340 332 347

326

369 380 381

353 356 368

287

06

193

50



82

388

66

ndash74 ndash28

ndash20

ndash12

ndash4

4

12

20

28

36


Income


Income



Sales


Expense

Positive Factor

Negative Factors






Chart 3 Chart 4


35

40

45

50

55

60

65

306 606 906 1206 307 607 907 1207 308 608

426

561



30

35

40


370

333


25 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2

2004 2005 2006 2007 2008





Chart 5


$ Billions 60


40

30

20

10 05

0 ndash13

163 196

270 262

109

153

71 85 82 89

35 48 38 64

55 61 264

267



Chart 6



00

02

04

06

08

10

12

14

16

18

20

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



1 2 3 4 1 2 3 4 1 2ndash10 2006 2007 2008





Chart 7




Chart 8



400 354

309 297 300 273261 218 209 212 204 207

200 178170 169 160176 145

100 78

99

64

ndash3

109

140 154

110 106

37

157

48

173 156

ndash40 0

ndash100

ndash50

50

100

150

200

2005 2006 2007 2008

1 11 12 2 2 23 3 34 4 40 ndash33

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 ndash100 2004 2005 2006 2007 2008












2204185 2212753 2220907 -08













$343177 $358377 -42 $164886 $182527 -97 152034 183746 -173 68309 94130 -274 191143 174631 95 96577 88397 93 87352 20546 3252 50151 11363 3413

121307 130467 -70 60821 68229 -109 188238 178407 55 97526 90933 73

-1054 2155 NM -2268 573 NM 11088 35013 -683 2130 17904 -881

-496 -912 NM -364 -223 NM 24222 72375 -665 4959 36776 -865 45957 17141 1681 26354 8946 1946 31688 67014 -527 17728 40868 -566 -7467 5362 NM -12769 -4092 NM 25118 71832 -650 6264 36630 -829








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5197 205 0 1 200 -5763 101 50 14 -4



Structural Changes

4256 2963 5000 5259 3565 5527 5102 3856 5185 4651



2 0 0 0 2 0 0 0 0 0

Return on assets () 2007 121 334 099 126 117 091 304 231 110 126 2005 128 318 071 135 135 122 140 160 109 137 2003 138 401 104 126 131 149 149 065 108 129








All Insured

Institutions


Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586



Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048



2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164









Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008







Feature Article















Chart 1 Chart 2

ndash4

0

4

8

12

16

20

24

28

32

36

40


1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2004 2005 2006 2007 2008


318 312 325 310

340 332 347

326

369 380 381

353 356 368

287

06

193

50



82

388

66

ndash74 ndash28

ndash20

ndash12

ndash4

4

12

20

28

36


Income


Income



Sales


Expense

Positive Factor

Negative Factors






Chart 3 Chart 4


35

40

45

50

55

60

65

306 606 906 1206 307 607 907 1207 308 608

426

561



30

35

40


370

333


25 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2

2004 2005 2006 2007 2008





Chart 5


$ Billions 60


40

30

20

10 05

0 ndash13

163 196

270 262

109

153

71 85 82 89

35 48 38 64

55 61 264

267



Chart 6



00

02

04

06

08

10

12

14

16

18

20

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



1 2 3 4 1 2 3 4 1 2ndash10 2006 2007 2008





Chart 7




Chart 8



400 354

309 297 300 273261 218 209 212 204 207

200 178170 169 160176 145

100 78

99

64

ndash3

109

140 154

110 106

37

157

48

173 156

ndash40 0

ndash100

ndash50

50

100

150

200

2005 2006 2007 2008

1 11 12 2 2 23 3 34 4 40 ndash33

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 ndash100 2004 2005 2006 2007 2008












2204185 2212753 2220907 -08













$343177 $358377 -42 $164886 $182527 -97 152034 183746 -173 68309 94130 -274 191143 174631 95 96577 88397 93 87352 20546 3252 50151 11363 3413

121307 130467 -70 60821 68229 -109 188238 178407 55 97526 90933 73

-1054 2155 NM -2268 573 NM 11088 35013 -683 2130 17904 -881

-496 -912 NM -364 -223 NM 24222 72375 -665 4959 36776 -865 45957 17141 1681 26354 8946 1946 31688 67014 -527 17728 40868 -566 -7467 5362 NM -12769 -4092 NM 25118 71832 -650 6264 36630 -829








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5197 205 0 1 200 -5763 101 50 14 -4



Structural Changes

4256 2963 5000 5259 3565 5527 5102 3856 5185 4651



2 0 0 0 2 0 0 0 0 0

Return on assets () 2007 121 334 099 126 117 091 304 231 110 126 2005 128 318 071 135 135 122 140 160 109 137 2003 138 401 104 126 131 149 149 065 108 129








All Insured

Institutions


Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586



Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048



2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164









Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008















Chart 1 Chart 2

ndash4

0

4

8

12

16

20

24

28

32

36

40


1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2004 2005 2006 2007 2008


318 312 325 310

340 332 347

326

369 380 381

353 356 368

287

06

193

50



82

388

66

ndash74 ndash28

ndash20

ndash12

ndash4

4

12

20

28

36


Income


Income



Sales


Expense

Positive Factor

Negative Factors






Chart 3 Chart 4


35

40

45

50

55

60

65

306 606 906 1206 307 607 907 1207 308 608

426

561



30

35

40


370

333


25 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2

2004 2005 2006 2007 2008





Chart 5


$ Billions 60


40

30

20

10 05

0 ndash13

163 196

270 262

109

153

71 85 82 89

35 48 38 64

55 61 264

267



Chart 6



00

02

04

06

08

10

12

14

16

18

20

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



1 2 3 4 1 2 3 4 1 2ndash10 2006 2007 2008





Chart 7




Chart 8



400 354

309 297 300 273261 218 209 212 204 207

200 178170 169 160176 145

100 78

99

64

ndash3

109

140 154

110 106

37

157

48

173 156

ndash40 0

ndash100

ndash50

50

100

150

200

2005 2006 2007 2008

1 11 12 2 2 23 3 34 4 40 ndash33

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 ndash100 2004 2005 2006 2007 2008












2204185 2212753 2220907 -08













$343177 $358377 -42 $164886 $182527 -97 152034 183746 -173 68309 94130 -274 191143 174631 95 96577 88397 93 87352 20546 3252 50151 11363 3413

121307 130467 -70 60821 68229 -109 188238 178407 55 97526 90933 73

-1054 2155 NM -2268 573 NM 11088 35013 -683 2130 17904 -881

-496 -912 NM -364 -223 NM 24222 72375 -665 4959 36776 -865 45957 17141 1681 26354 8946 1946 31688 67014 -527 17728 40868 -566 -7467 5362 NM -12769 -4092 NM 25118 71832 -650 6264 36630 -829








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5197 205 0 1 200 -5763 101 50 14 -4



Structural Changes

4256 2963 5000 5259 3565 5527 5102 3856 5185 4651



2 0 0 0 2 0 0 0 0 0

Return on assets () 2007 121 334 099 126 117 091 304 231 110 126 2005 128 318 071 135 135 122 140 160 109 137 2003 138 401 104 126 131 149 149 065 108 129








All Insured

Institutions


Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586



Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048



2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164









Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008







Chart 3 Chart 4


35

40

45

50

55

60

65

306 606 906 1206 307 607 907 1207 308 608

426

561



30

35

40


370

333


25 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2

2004 2005 2006 2007 2008





Chart 5


$ Billions 60


40

30

20

10 05

0 ndash13

163 196

270 262

109

153

71 85 82 89

35 48 38 64

55 61 264

267



Chart 6



00

02

04

06

08

10

12

14

16

18

20

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



1 2 3 4 1 2 3 4 1 2ndash10 2006 2007 2008





Chart 7




Chart 8



400 354

309 297 300 273261 218 209 212 204 207

200 178170 169 160176 145

100 78

99

64

ndash3

109

140 154

110 106

37

157

48

173 156

ndash40 0

ndash100

ndash50

50

100

150

200

2005 2006 2007 2008

1 11 12 2 2 23 3 34 4 40 ndash33

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 ndash100 2004 2005 2006 2007 2008












2204185 2212753 2220907 -08













$343177 $358377 -42 $164886 $182527 -97 152034 183746 -173 68309 94130 -274 191143 174631 95 96577 88397 93 87352 20546 3252 50151 11363 3413

121307 130467 -70 60821 68229 -109 188238 178407 55 97526 90933 73

-1054 2155 NM -2268 573 NM 11088 35013 -683 2130 17904 -881

-496 -912 NM -364 -223 NM 24222 72375 -665 4959 36776 -865 45957 17141 1681 26354 8946 1946 31688 67014 -527 17728 40868 -566 -7467 5362 NM -12769 -4092 NM 25118 71832 -650 6264 36630 -829








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5197 205 0 1 200 -5763 101 50 14 -4



Structural Changes

4256 2963 5000 5259 3565 5527 5102 3856 5185 4651



2 0 0 0 2 0 0 0 0 0

Return on assets () 2007 121 334 099 126 117 091 304 231 110 126 2005 128 318 071 135 135 122 140 160 109 137 2003 138 401 104 126 131 149 149 065 108 129








All Insured

Institutions


Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586



Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048



2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164









Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008






Chart 5


$ Billions 60


40

30

20

10 05

0 ndash13

163 196

270 262

109

153

71 85 82 89

35 48 38 64

55 61 264

267



Chart 6



00

02

04

06

08

10

12

14

16

18

20

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



1 2 3 4 1 2 3 4 1 2ndash10 2006 2007 2008





Chart 7




Chart 8



400 354

309 297 300 273261 218 209 212 204 207

200 178170 169 160176 145

100 78

99

64

ndash3

109

140 154

110 106

37

157

48

173 156

ndash40 0

ndash100

ndash50

50

100

150

200

2005 2006 2007 2008

1 11 12 2 2 23 3 34 4 40 ndash33

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 ndash100 2004 2005 2006 2007 2008












2204185 2212753 2220907 -08













$343177 $358377 -42 $164886 $182527 -97 152034 183746 -173 68309 94130 -274 191143 174631 95 96577 88397 93 87352 20546 3252 50151 11363 3413

121307 130467 -70 60821 68229 -109 188238 178407 55 97526 90933 73

-1054 2155 NM -2268 573 NM 11088 35013 -683 2130 17904 -881

-496 -912 NM -364 -223 NM 24222 72375 -665 4959 36776 -865 45957 17141 1681 26354 8946 1946 31688 67014 -527 17728 40868 -566 -7467 5362 NM -12769 -4092 NM 25118 71832 -650 6264 36630 -829








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5197 205 0 1 200 -5763 101 50 14 -4



Structural Changes

4256 2963 5000 5259 3565 5527 5102 3856 5185 4651



2 0 0 0 2 0 0 0 0 0

Return on assets () 2007 121 334 099 126 117 091 304 231 110 126 2005 128 318 071 135 135 122 140 160 109 137 2003 138 401 104 126 131 149 149 065 108 129








All Insured

Institutions


Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586



Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048



2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164









Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008






Chart 7




Chart 8



400 354

309 297 300 273261 218 209 212 204 207

200 178170 169 160176 145

100 78

99

64

ndash3

109

140 154

110 106

37

157

48

173 156

ndash40 0

ndash100

ndash50

50

100

150

200

2005 2006 2007 2008

1 11 12 2 2 23 3 34 4 40 ndash33

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 ndash100 2004 2005 2006 2007 2008












2204185 2212753 2220907 -08













$343177 $358377 -42 $164886 $182527 -97 152034 183746 -173 68309 94130 -274 191143 174631 95 96577 88397 93 87352 20546 3252 50151 11363 3413

121307 130467 -70 60821 68229 -109 188238 178407 55 97526 90933 73

-1054 2155 NM -2268 573 NM 11088 35013 -683 2130 17904 -881

-496 -912 NM -364 -223 NM 24222 72375 -665 4959 36776 -865 45957 17141 1681 26354 8946 1946 31688 67014 -527 17728 40868 -566 -7467 5362 NM -12769 -4092 NM 25118 71832 -650 6264 36630 -829








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5197 205 0 1 200 -5763 101 50 14 -4



Structural Changes

4256 2963 5000 5259 3565 5527 5102 3856 5185 4651



2 0 0 0 2 0 0 0 0 0

Return on assets () 2007 121 334 099 126 117 091 304 231 110 126 2005 128 318 071 135 135 122 140 160 109 137 2003 138 401 104 126 131 149 149 065 108 129








All Insured

Institutions


Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586



Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048



2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164









Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008













2204185 2212753 2220907 -08













$343177 $358377 -42 $164886 $182527 -97 152034 183746 -173 68309 94130 -274 191143 174631 95 96577 88397 93 87352 20546 3252 50151 11363 3413

121307 130467 -70 60821 68229 -109 188238 178407 55 97526 90933 73

-1054 2155 NM -2268 573 NM 11088 35013 -683 2130 17904 -881

-496 -912 NM -364 -223 NM 24222 72375 -665 4959 36776 -865 45957 17141 1681 26354 8946 1946 31688 67014 -527 17728 40868 -566 -7467 5362 NM -12769 -4092 NM 25118 71832 -650 6264 36630 -829








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5197 205 0 1 200 -5763 101 50 14 -4



Structural Changes

4256 2963 5000 5259 3565 5527 5102 3856 5185 4651



2 0 0 0 2 0 0 0 0 0

Return on assets () 2007 121 334 099 126 117 091 304 231 110 126 2005 128 318 071 135 135 122 140 160 109 137 2003 138 401 104 126 131 149 149 065 108 129








All Insured

Institutions


Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586



Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048



2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164









Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5197 205 0 1 200 -5763 101 50 14 -4



Structural Changes

4256 2963 5000 5259 3565 5527 5102 3856 5185 4651



2 0 0 0 2 0 0 0 0 0

Return on assets () 2007 121 334 099 126 117 091 304 231 110 126 2005 128 318 071 135 135 122 140 160 109 137 2003 138 401 104 126 131 149 149 065 108 129








All Insured

Institutions


Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586



Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048



2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164









Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008







All Insured

Institutions


Less than

$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5197 40 174 313 -5724 778 -1324 28 -1 -91 -4586



Structural Changes

4256 4277 4324 3925 2672 5039 2605 4707 4566 4692 3048



2 1 0 1 0 0 0 0 1 1 0

Return on assets () 2007 121 085 114 111 125 104 125 105 154 115 141 2005 128 109 124 135 128 129 134 093 155 128 163 2003 138 089 119 150 141 125 139 134 157 141 164









Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders









-5173 350 0 2 1065 -6973 195 115 24 50



Condition Ratios ()

4495 4444 5000 5751 3815 5231 5306 4379 5331 3721


8602 7878 8181 9147 8778 9130 9388 8742 9157 8495




Structural Changes

5285 3099 2549 8003 6588 5843 8124 6829 8196 5426



4 0 0 1 3 0 0 0 0 0



Return on assets () 2007 120 358 096 122 115 091 254 223 107 127 2005 131 318 081 131 134 121 135 158 114 144 2003 138 379 106 124 132 151 153 095 108 127



080 536 142 020 056 018 090 045 028 058

OREO to assets () 2007 062 128 041 081 069 081 063 023 060 046 2005 048 117 053 068 048 041 044 026 060 037 2003 081 142 100 100 081 066 081 042 074 067










All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008






All Insured

Institutions


Less than $100

Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San

Francisco 8451 3304 4473 558 116 1034 1213 1738 1960 1722 784






-5173 100 427 517 -6217 1715 -1746 190 6 40 -5379



Condition Ratios ()

4495 4637 4491 4122 2414 5058 2622 4833 5066 5041 3278


8602 9171 9165 9051 8456 8609 8562 8548 8631 8959 8593




Structural Changes

5285 8117 7851 6960 4667 5256 5842 4935 6286 7120 4119



4 3 0 1 0 0 0 0 3 1 0



Return on assets () 2007 120 085 111 113 124 108 123 106 164 113 130 2005 131 107 123 134 132 128 140 097 161 128 163 2003 138 096 119 146 142 125 137 136 155 141 166



080 025 029 059 098 119 059 066 104 038 067

OREO to assets () 2007 062 081 075 067 059 058 042 063 110 066 068 2005 048 072 054 044 047 049 031 055 076 058 047 2003 081 093 074 066 084 087 066 095 079 079 068








Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008






Credit Card Banks

International Banks

Agricultural Banks

Commercial Lenders

Mortgage Lenders

Consumer Lenders










140 237 146 122 125 183 151 112 163 123






204 230 172 134 207 312 091 096 111 156






116 538 120 021 085 150 172 039 022 078






79986 3273 12120 1109 37850 9873 605 78 557 14521







June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008





June 30 2008 All



$100 Million

$100 Million to

$1 Billion

$1 Billion to

$10 Billion

Greater than $10


City Dallas San







140 154 127 118 146 127 142 138 124 121 161






204 148 175 221 206 151 202 211 216 170 248






116 024 037 083 135 123 095 105 123 055 158






79986 1131 9491 10343 59021 14098 20992 15708 6742 5083 17364





BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008



BlankBlankBlank

BlankBlank








183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



183302893 181599440 166116969 174574410 154810235 184 219 16818 97175 183188681



166676750 163917280 149694159 158091774 140583294 186 219 16666 96706 166563159



428844 501034 222426 110905 23824 NM 0 0 0 428844






28367 33492 28282 31483 27273 40 0 0 5 28362



HELD FOR TRADING

1348 148 1561 1255 60 NM 00 01 00 1347



5500997 5466765 5354982 5081807 4917882 119 399 19537 187367 5293695



163899472 161113484 147193085 155305652 137937120 188 6 546 39254 163859666


Share of Revenue

1585 1252 -10579 2659 6279 -748 0 0 20 1566



214 121 -2780 149 278 00 -07 43 226



6254800 6284848 6210095 5922180 5776895 83 3990 198663 545784 5506363







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008







Blank



2008 2008 2007 2007 2007 072-082




139 134 127 125 128 86 16 60 24 39




1750758 1724121 1710883 1663308 1638581 68 49 3882 26535 1720292




1902 2944 4686 5095 5667 -664 0 0 0 1902



23 22 24 24 22 11 09 13 23



18 18 15 13 13 11 08 12 18




07 04 11 08 05 00 16 26 07





1 1 2 6 9 -889 0 0 0 1


771 759 759 747 737 46 148 472 106 45




100816 92956 87059 84737 71266 415 1040 8421 4015 87339




25989 24750 25745 26348 21557 206 137 1642 2215 21995



Other

5492 6778 10314 8242 14093 -610 0 0 0 5492


3900984 3801655 3798682 3648511 3570238 93 3608 66320 104149 3726906

















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008
















2nd Quarter 2008

1st Quarter 2008

4th Quarter 2007

3rd Quarter 2007

2nd Quarter 2007

1st Quarter 2007

4th Quarter 2006

3rd Quarter 2006

2nd Quarter 2006

1st Quarter 2006

4th Quarter 2005



$52843 $52413 $51754 $51227 $50745 $50165 $49992 $49564 $49193 $48597 $48373


1 0 -2 24 1 4 5 1 12 349 4








131 129 128 126 125 123 122 121 120 121 122 119

101

123 122

1204 605 1205 606 1206 607 1207 608


($ Millions) DIF-


1204 47507 3622059 305 47617 3688562 605 48023 3757728 905 48373 3830950

1205 48597 3890941 306 49193 4001906 606 49564 4040353 906 49992 4100013

1206 50165 4153786 307 50745 4245267 607 51227 4235043 907 51754 4242607

1207 52413 4291750 308 52843 4438501 608 45217 4462426




117 $78343

4 $2020

61 $23782

1 $16

76 $22189

3 $2615

50 $8265

0 $0

52 $6607

0$0

80 $28250

4 $170

116$29917

3 $947



Through June 30




Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008





Total Assets

Domestic Deposits

Est Insured

Deposits










419 307412 209310 163865



8451 13300800 7029143 4457653














































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008
































Supervisory Group

Capital Group A B C











Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008







Feature Article


























Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008





Table 1






Source FDIC










Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008











Chart 1



pilot banks

pilot banks

67 of pilot banks

20 of


Source FDIC

Chart 2



0

5

10

15

20

25

30

35


Perc

enta

ge o

f Pilo

t Pro

gram

Par

ticip

ants

Source FDIC


























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008

























Table 2


Marketing Category






379



333

Media marketing


212

Internet marketing


76

TOTALS 66 1000 NA 1000











Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008



Table 3



Loans Up to $1000




Loans Over $1000




Source FDIC

Table 4



Loans Up to $1000

Loan Amount

Term (months)



APR

14

19

19

4

7

$678

10

1505

$40

2380

$100

3

525

$12

1100

$1000

27

3300

$65

3400

Loans Over $1000

Loan Amount

Term (months)



APR

12

14

15

4

4

$1695

17

1553

$59

1648

$1202

5

921

$25

1119

$3750

36

3141

$134

2288

Source FDIC























Structure Bookmarks

Second Quarter 2008
























Structure Bookmarks

Second Quarter 2008



fdic quarterly second quarter 2008 · than $1 billion, the average roa in the second quarter was...

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