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 1 - PDF (PDF Help)

Quarterly Banking Profile: Fourth Quarter 2022
FDIC-insured institutions reported aggregate net income of $68.4 billion in fourth quarter 2022, a decrease of $3.3 billion (4.6 percent) from the third quarter. Lower noninterest income and higher provision expense more than offset an increase in net interest income. Year-over-year net income grew $4.5 billion (7.1 percent) from fourth quarter 2021 as growth in net interest income exceeded growth in provision expense. The banking industry reported an aggregate return on average assets ratio of 1.16 percent in the fourth quarter, down from 1.21 percent in the third quarter but up from 1.09 percent in fourth quarter 2021.

Community Bank Performance
Community banks—which represent 90 percent of insured institutions—reported full-year 2022 net income of $30.4 billion, higher than the pre-pandemic average but marginally lower than full-year 2021 net income. Net income in 2022 was $87.1 million (0.3 percent) lower than in 2021. The decrease was attributable to lower noninterest income, higher noninterest expense, realized losses on securities, and higher provision expense. The community bank pretax return on average assets ratio decreased from 1.54 percent in 2021 to 1.40 percent in 2022.

Insurance Fund Indicators
The Deposit Insurance Fund (DIF) balance increased by $2.8 billion to $128.2 billion. Assessment revenue of $2.1 billion was the largest source of income. Interest earned on investments, a net decrease in unrealized losses on available-for-sale securities, negative provisions for insurance losses, and other miscellaneous income also added to the fund balance. Operating expenses partially offset the increase in fund balance. The DIF reserve ratio was 1.27 percent on December 31, 2022, up 1 basis point from the previous quarter and 1 basis point higher than the previous year.

Featured Article:

2022 Summary of Deposits Highlights - PDF
The 2022 Summary of Deposits article evaluates deposit and office trends by bank asset size group, community and noncommunity bank designation, and county type. A special feature analyzes office openings and closings in locations that experienced high in- and out-migration during the COVID-19 pandemic. Responses from the 2022 Summary of Deposits survey reflected a moderation in deposit growth following extraordinary growth in 2020 and 2021. The moderation in the annual deposit growth rate came with a slight deceleration in bank office closures. More than two years since the onset of the COVID-19 pandemic, migration patterns may be influencing office locations.

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