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7/29/2019 HPS FDIC Quarterly Banking Profile Preview
1/28
HPS FDIC QUARTERLY BANKINGPROFILE PREVIEW
February 14, 2013
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Executive Summary
Hamilton Place Strategies | 2
The HPS FDIC Quarterly Banking Profile Preview examines FDIC-regulated entities progress in three keyareas: safety and soundness, performance, and support to the economy. In the Q412, we find:
U.S. commercial banks Tier One Common Capital Ratio was 12.6 percent as U.S. commercial banksincreased common capital levels to $1.13 trillion.
U.S. commercial bank's Net Income decreased slightly quarter-over-quarter to $32.26 billion, but is themost profitable year since the crisis on an annual basis.
U.S. commercial bank's ROAA and ROAE followed the same pattern as Net Income on both aquarterly and annual basis, and ended the year at 1.02 and 9.08, respectively.
U.S. commercial banks Loan-to-Deposit ratio fell to 70.3 percent, in a large part due to the increase indeposits.
U.S. commercial banks topped $10 trillion in deposits, an all-time high. Total bank deposits rose tonear $11 trillion.
Total reserves fell by three percent to $151 million for U.S. commercial banks; while non-performingassets as a percentage of total assets fell to 2.0 percent, a six percent drop.
Total loans and leases reached 7.7 trillion for all U.S. banks, a record high. U.S. banks employed 2.1 million full-time workers. Domestic business loans broke pre-crisis highs as commercial banks held $2.1 trillion.Note: With the 2010 adoption of the Dodd-Frank Act, which mandated that the Office of Thrift Supervision be eliminated as a banking regulator, savings
institutions (thrifts) are now filing call reports instead of thrift financial reports. This means that analysts and other industry observers no longer have to
reconcile two different data sources when examining the universe of FDIC-insured institutions. Please take note of these changes when conducting
analysis using data on savings banks, or a combination of commercial and savings banks.
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Outline
Hamilton Place Strategies | 3
SAFETY AND SOUNDNESS
PERFORMANCE MEASURES
SUPPORTING THE ECONOMY
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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The Hamilton Financial Index Is 28% Above Pre-Crisis Norms
Hamilton Place Strategies | 4Source: HPS Insight, SNL Financial, FDIC, St. Louis Federal Reserve
SAFETY AND SOUNDNESS
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
Index
+28%
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
The Hamilton Financial Index
Index Value
Pre-Crisis Norms
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Tier 1 Common Capital And Tier 1 CommonCapital Ratio for Commercial and Savings Banks
Tier 1 Common Capital Ratio Is 12.6% For U.S.Commercial Banks
Hamilton Place Strategies | 5Source: FDIC, SNL Financial
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Tier1CommonCapital($
T)
+37%
2012
Tier1
CommonRisk-BasedRatio(%)
2011
2010
2009
2008
2007
2006
2005
2004
2003
Savings Banks
Commercial Banks
Savings Banks
Commercial Banks
SAFETY AND SOUNDNESS
Tier 1 Common Capital Tier 1 Common Capital Ratio
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Equity-To-Assets Is 11.1% In Q412 ForCommercial Banks, Slightly Down From 11.3%
Hamilton Place Strategies | 6Source: FDIC, SNL Financial
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
7
8
9
10
11
12
13
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
+19%
Equity/Assets(%)B
ankEquity($T)
Savings Banks
Commercial BanksCommercial Banks
Savings Banks
Total Equity and Equity/Assets for Commercialand Savings Banks
SAFETY AND SOUNDNESS
Total Equity Equity/Assets
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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U.S. Commercial Banks Risk-Weighted Assets FellTo 67.3% As A Percent Of Total Assets In Q412
Hamilton Place Strategies | 7
50
55
60
65
70
75
80
2011
2010
2009
2007
2008
2005
2004
2006
Risk-
WeightedAssets/TotalAssets(%)
-14%
2003
2012
Savings Banks
Commercial BanksCommercial and Savings Banks Risk-WeightedAssets as a Percent of Total Assets
SAFETY AND SOUNDNESS
Source: FDIC, SNL Financial
Risk-Weighted Assets as a Percent of Total Assets
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By A Simpler Measure, Bank Capital Levels Are Up33 Percent Since 2008
Hamilton Place Strategies | 8Source: FDIC, SNL Financial
5
6
7
8
9
10
11
2009
2012
2011
2010
+33%
2008
2007
2006
2005
2004
2003
Tan
gibleEquity/TangibleAssets(%)
Savings Banks
Commercial BanksTangible Equity to Tangible Assets for Commercial andSavings Banks
SAFETY AND SOUNDNESS
Tangible Equity to Tangible Assets
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Commercial Banks Loan-To-Deposit RatiosContinued To Fall In Q412
Hamilton Place Strategies | 9Source: FDIC, SNL Financial
60
65
70
75
80
85
90
95
100
-23%
Percent(%)
2011
2012
2003
2009
2010
2007
2008
2006
2005
2004
Commercial Banks
Savings Banks
Commercial and Savings Banks Loans-to-DepositsRatio
SAFETY AND SOUNDNESS
Loans/Deposits (%)
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Commercial Banks Increased Their Liquidity RatioTo 35.2% In Q412
Hamilton Place Strategies | 10Source: FDIC, SNL Financial
14
16
18
20
22
24
26
28
30
32
34
36
LiquidityRatio(%)
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
+13%
Commercial Banks
Savings Banks
Liquidity Ratio for Commercial and SavingsBanks
SAFETY AND SOUNDNESS
Liquidity Ratio
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Outline
Hamilton Place Strategies | 11
SAFETY AND SOUNDNESS
PERFORMANCE MEASURES
SUPPORTING THE ECONOMY
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0
2
4
6
8
10
12
14
16
Savings Banks
Commercial Banks
Commercial Bank Assets Rose To $13.4 Trillion InQ412
Hamilton Place Strategies | 12Source: FDIC, SNL Financial
2012
2011
2010
TotalAssets($T)
2009
2008
2007
2006
2005
2004
2003
Total Assets for Commercial and Savings Banks
PERFORMANCE MEASURES
Total Assets
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Total Deposits for Commercial and Deposit Banks
Total U.S. Commercial Bank Deposits Topped $10Trillion In Q412
Hamilton Place Strategies | 13Source: FDIC, SNL Financial
0
1
2
3
4
5
6
7
8
9
10
11
TotalDeposits($T)
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Savings BanksCommercial Banks
PERFORMANCE MEASURES
Total Deposits
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Commercial Bank Net Income Was $32.2 Billion InQ412
Hamilton Place Strategies | 14Source: FDIC, SNL Financial
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
35
40
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
14
16
2005
2006
2008
NetIncome($B)
ROAAandROAE(%)
2007
2012
2011
2004
2010
2009
2003
ROAE (%)
Net Income ($B)ROAA (%)Commercial Banks ROAA, ROAE, Net Income
PERFORMANCE MEASURES
Commercial Banks
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Savings Banks Net Income Dipped Slightly To$2.8 Billion In Q412
Hamilton Place Strategies | 15Source: FDIC, SNL Financial
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
-9
-6
-3
0
3
6
9
12
15
18
21
24
27
2005
NetIncome($B)
ROAAandROAE(%)
2012
2011
2003
2004
2007
2010
2009
2008
2006
ROAA, ROAE and Net Income for Savings Banks
ROAE (%)
Net Income ($B)ROAA (%)
PERFORMANCE MEASURES
Savings Banks
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Led By A Steep Drop In Noncurrent Real EstateLoans, Total NCLs Fell 6% In Q412 To $254 Billion
Hamilton Place Strategies | 16Source: FDIC, SNL Financial
0
50
100
150
200
250
300
350
400
0
1
2
3
4
5
6
7
8
9
2003
2010
2006
2007
To
talNoncurrentLoans($B)
Percent(%)
-36%
-23%
2011
2012
2004
2005
-65%
2009
2008
Total Noncurrent Loans (%)
Total Noncurrent Loans ($B)Noncurrent Non-RE Loans (%)
Noncurrent Real Estate Loans (%)Noncurrent Loans for Commercial Banks
PERFORMANCE MEASURES
Commercial Banks
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Noncurrent Loans Fell Under $22 Billion In Q412For Savings Banks
Hamilton Place Strategies | 17Source: FDIC, SNL Financial
0
2
4
6
8
10
12
14
16
18
20
22
24
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2007
2004
2010
2005
2008
2009
NoncurrentLoans($B)
Percent(%)
2011
2012
2003
2006
Total Loans & Leases (%)Total Noncurrent Loans ($B)Noncurrent Non-RE Loans (%)
Noncurrent Real Estate Loans (%)Noncurrent Loans for Savings Banks
PERFORMANCE MEASURES
Savings Banks
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NPAs Continue To Fall As A Percent Of TotalAssets For Commercial Banks In Q412
Hamilton Place Strategies | 18Source: FDIC, SNL Financial
3.0
1.5
2.0
2.5
1.0
0.5
0.0
Percent(%)
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
-28%
Commercial Banks
Savings Banks
Non-Performing Assets as a Percent of TotalAssets For Commercial and Savings Banks
Non-Performing Assets/Total Assets
PERFORMANCE MEASURES
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Commercial Bank Reserves Fell 3% In Q412 To$151 Million
Hamilton Place Strategies | 19Source: FDIC, SNL Financial
220
20
180
140
40
120
0
80
260
240
160
60
200
100
2012
2008
2009
2010
2007
2006
2005
2004
2003
Dollars($M)
2011
Commercial Banks
Savings Banks
Total Reserves for Commercial and Savings Banks
Total Reserves
PERFORMANCE MEASURES
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Commercial Banks Net Chargeoffs Totaled $17Billion In Q412
Hamilton Place Strategies | 20Source: FDIC, SNL Financial
0
5
10
15
20
25
30
35
40
45
50
55
0
1
2
3
4
5
2012Q4
2012Q1
2011Q1
2010Q1
2009Q1
2008Q1
2007Q1
2006Q1
2005Q1
2004Q1
2003Q1
Percent(%) Do
llars($B)
Net Chargeoffs/ Avg Loans (%)Total Loan & Lease NCOs ($B)Net Chargeoffs/ Avg Loans: Non Real Estate (%)
Net Chargeoffs/ Avg Loans: Real Estate (%)Chargeoffs for Commercial Banks
PERFORMANCE MEASURES
Commercial Banks
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Net Chargeoffs For Savings Banks Fell To $1.34Billion In Q412
Hamilton Place Strategies | 21Source: FDIC, SNL Financial
0
150
300
450
600
750
900
1,050
1,200
1,350
1,500
1,650
0.0
0.5
1.0
1.5
2.0
2.5
Dollars($M)P
ercent(%)
2012Q4
2012Q1
2011Q1
2010Q1
2009Q1
2008Q1
2007Q1
2006Q1
2005Q1
2004Q1
2003Q1
Net Chargeoffs/ Avg Loans (%)Total Loan & Lease NCOs ($M)Net Chargeoffs/ Avg Loans: Non Real Estate (%)
Net Chargeoffs/ Avg Loans: Real Estate (%)Chargeoffs for Savings Banks
PERFORMANCE MEASURES
Savings Banks
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Outline
Hamilton Place Strategies | 22
SAFETY AND SOUNDNESS
PERFORMANCE MEASURES
SUPPORTING THE ECONOMY
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Gross Loans And Leases For Commercial BanksTopped $7 Trillion In Q412, An All-Time High
Hamilton Place Strategies | 23Source: FDIC, SNL Financial
2
3
4
5
6
7
8
2004
2006
2007
2008
2011
Dollars($T)
2003
2012
2005
2010
2009
Commercial banksSavings Banks*
Gross Loans and Leases for Savings andCommercial Banks
SUPPORTING THE ECONOMY
Gross Loans and Leases
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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U.S. Banks Employed Over 2 Million Full-TimeWorkers In Q412
Hamilton Place Strategies | 24Source: FDIC, SNL Financial
SUPPORTING THE ECONOMY
1,500
1,600
1,700
1,800
1,900
2,000
0
20
40
60
80
100
120
140
160
FTE
CommercialBanks(Thou
sands)
2006
2005
2004
2003
2007
2008
2009
FTE
SavingsBanks(Thousan
ds)
2010
2011
2012
Commercial BanksSavings Banks*
FTE For Commercial and Savings Banks
Full-Time Employees
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Non-Real Estate Loans Increased In Q412, WhileTotal Real Estate Remained Essentially Flat
Hamilton Place Strategies | 25Source: FDIC, SNL Financial
0
1
2
3
4
5
6
7
8
2012
2011
2010
2009
Dollars($T)
2007
2006
2005
2004
2003
2008
Total Non-Real Estate Loans ($T)
Total Real Estate Loans ($T)Non-Real Estate and Real Estate Loans forCommercial and Savings Banks
SUPPORTING THE ECONOMY
Commercial and Savings Banks
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Commercial And Industrial Loans Increased 4% To$1.5 Trillion In Q412
Hamilton Place Strategies | 26Source: FDIC, SNL Financial
0.0
0.3
0.6
0.9
1.2
1.5
1.8
2.1
2.4
2.7
3.0
2004
2005
2006
2007
2008
2009
2010
Dollars($T)
2011
2003
2012
Consumer Loans ($T)Commerical and Industrial Loans ($T)Commercial and Industrial and ConsumerLoans at Commercial and Savings Banks
SUPPORTING THE ECONOMY
Commercial and Savings Banks
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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Domestic Business Loans Rose To $2.14 Trillion InQ412, An All-time High
Hamilton Place Strategies | 27Source: FDIC, SNL Financial
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2005
2006
2008
2007
2004
2003
Dollars($T)
2011
2012
2009
2010
Commercial BanksSavings Banks
Domestic Business Loans fromCommercial and Savings Banks
SUPPORTING THE ECONOMY
Domestic Business Loans
7/29/2019 HPS FDIC Quarterly Banking Profile Preview
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About HPS
H ilt Pl St t i | 28
HPS is a policy and communications consulting firm based in Washington. Our focus andexpertise lie at the intersection of government, business and media. Our deep experiences in
all of these fields allow us to serve clients who need to navigate the paths between Washingtonand the private sector.
HPS provides clients invaluable insight and advice on what governments are doing now, whattheyre likely to do in the future, and the global implications of those actions.
Our team includes those who have recently served at the highest levels of government and canshow clients how the policy process works and how it can be shaped.
This report was prepared by:
Matt McDonald, Partner
Robert Terra, Managing Director
Patrick Sims, Director
Ashley Smith, Senior Associate
Russ Grote, Senior Analyst