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Analysis

FDIC Quarterly

Last Updated: June 21, 2022

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, 2022, Volume 16, Number 2 - PDF (PDF Help)

Quarterly Banking Profile: First Quarter 2022
FDIC-insured institutions reported aggregate net income of $59.7 billion in first quarter 2022, a decline of $17.0 billion (22.2 percent) from the year-ago quarter. An increase in provision expense drove the decline in net income (down $4.1 billion, or 6.5 percent) from fourth quarter 2021. A majority of banks (62.8 percent) reported a decline in net income from the year-ago quarter. The decline in net income and an increase in average assets reduced the aggregate return on average assets ratio 38 basis points from the year-ago quarter and 9 basis points from fourth quarter to 1.00 percent.

Community Bank Performance
Community banks—which represent 91 percent of insured institutions—reported net income of $7.0 billion in first quarter 2022, down $1.1 billion (14.0 percent) from a year ago. Lower net gains on loan sales and higher noninterest expenses offset growth in net interest income and lower provisions. The community bank pretax return on average assets ratio decreased 33 basis points from one year ago and 14 basis points from one quarter ago to 1.25 percent, as asset growth continued and net income declined.

Insurance Fund Indicators
The Deposit Insurance Fund (DIF) balance decreased by $0.1 billion to $123.0 billion, the first decline in over a decade. Assessment income of $1.9 billion was the largest source of income. Interest earned on investments and other miscellaneous income also added to the fund balance. However, this was more than offset by unrealized losses on available-for-sale securities, operating expenses, and provisions for insurance losses. The DIF reserve ratio was 1.23 percent on March 31, 2022, 4 basis points lower than the previous quarter and 2 basis points lower than the previous year.

Past Issues