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-insured institutions reported aggregate net income of $44 billion in the first quarter of 2017, up $5 billion (12.7 percent) from a year earlier. The increase in earnings was mainly attributable to an $8.8 billion (7.8 percent) increase in net interest income and a $2.1 billion (3.4 percent) increase in noninterest income. Of the 5,856 insured institutions reporting first quarter financial results, 57 percent reported year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable in the first quarter fell to 4.1 percent from 5.1 percent a year earlier.
Community Bank Performance
Community banks—which represent 92 percent of insured institutions—reported net income of $5.6 billion in the first quarter, up $522.9 million (10.4 percent) from one year earlier. The increase was driven by higher net interest income and noninterest income, which was partly offset by higher loan-loss provisions and noninterest expense. The 12-month growth rate in loan balances at community banks was 7.7 percent, while loan growth at noncommunity banks was 3.3 percent. The noncurrent rate continued to improve, and aggregate noncurrent loan balances declined by $37.5 million during the quarter.
Insurance Fund Indicators
Insured deposits increased by 2.3 percent in the first quarter of 2017. The DIF reserve ratio was 1.20 percent on March 31, 2017, unchanged from year-end 2016, but up 7 basis points from one year earlier. There were three failures of FDIC-insured institutions during the quarter.