FDIC Quarterly

The FDIC Quarterly provides a comprehensive summary of the most current financial results for the banking industry, along with feature articles. These articles 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. The FDIC Quarterly brings together data and analysis that were previously available through three retired publications -- the FDIC Outlook, the FDIC Banking Review, and the FYI: An Update on Emerging Issues in Banking. Past issues of these publications are archived under their original publication names.

FDIC Quarterly, 2023, Volume 17, Number 2 - PDF (PDF Help)

Quarterly Banking Profile: First Quarter 2023
FDIC-insured institutions reported aggregate net income of $79.8 billion in first quarter 2023, an increase of $11.5 billion (16.9 percent) from the fourth quarter. Strong growth in noninterest income, reflecting the accounting treatment of the acquisition of two failed institutions and higher trading revenue at large banks, outpaced higher noninterest expense and lower net interest income. Year-over-year net income increased $20.1 billion (33.6 percent), as growth in net interest income exceeded growth in provision expense and noninterest expense. The banking industry reported a return on average assets ratio of 1.36 percent in the first quarter, up from 1.16 percent in fourth quarter 2022 and 1.01 percent in first quarter 2022.

Community Bank Performance
Community banks—which represent 91 percent of insured institutions—reported quarterly net income of $7.0 billion in first quarter 2023, down $306.0 million from one quarter ago. Lower net interest income and noninterest income exceeded the declines in losses on the sale of securities, provisions for credit losses, and noninterest expense. The community bank pretax return on average assets ratio fell 21 basis points from one quarter ago to 1.27 percent.

Insurance Fund Indicators
The Deposit Insurance Fund (DIF) balance decreased by $12.1 billion to $116.1 billion. The vast majority of the decline in the DIF was for loss provisions, which subtracted $16.4 billion from the DIF. Other costs included a $1.7 billion realized loss on the sale of investments and $508 million in operating expenses. Assessment revenue of $3.3 billion was the largest source of income. A net decrease in unrealized losses on available-for-sale securities of $2.5 billion, interest earned on investments of $661 million, and other miscellaneous income of $12 million also partially offset the decline in fund balance. The DIF reserve ratio was 1.11 percent on March 31, 2023, down 14 basis points from the previous quarter and 10 basis points lower than the previous year.

Past Issues