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 an aggregate profit of $21.6 billion in the second quarter of 2010, a $26 billion improvement from the $4.4 billion net loss the industry posted in the second quarter of 2009. This is the highest quarterly earnings total since the third quarter of 2007. One in five institutions reported a net loss for the quarter, compared to 29 percent a year earlier. The average return on assets (ROA) rose to 0.65 percent, from negative 0.13 percent a year ago.
>Insurance Fund Indicators
Estimated insured deposits (based on $250,000 coverage) declined by 0.6 percent during the second quarter of 2010. The Deposit Insurance Fund reserve ratio increased 10 basis points to -0.28 percent in the second quarter, and 45 FDIC-insured institutions failed during the quarter. The Dodd-Frank Wall Street Reform and Consumer Protection Act permanently increases the standard maximum deposit insurance coverage to $250,000. The Act also requires the FDIC to amend its regulations to redefine the assessment base as average total consolidated assets minus average tangible equity during the assessment period.
Temporary Liquidity Guarantee Program
As of June 30, 2010, about 80 percent of FDIC-insured institutions have opted in to the Transaction Account Guarantee Program, and 7,537 eligible entities elected the option to participate in the Debt Guarantee Program. Approximately $264 billion in non-interest-bearing transaction accounts was guaranteed as of June 30, 2010, and $304 billion in guaranteed senior unsecured debt, issued by 71 entities, was outstanding at the end of the second quarter. Issuance under the Debt Guarantee Program ended on October 31, 2009.