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 $43.7 billion in the fourth quarter of 2016, up $3.1 billion (7.7 percent) from a year earlier. The increase in earnings was mainly attributable to an $8.4 billion (7.6 percent) increase in net interest income. Of the 5,913 insured institutions reporting fourth quarter financial results, almost 60 percent reported year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable in the fourth quarter fell to 8.1 percent from 9.6 percent a year earlier.
Community Bank Performance
Community banks—which represent 92 percent of insured institutions—reported net income of $5.3 billion in the fourth quarter, up $507.9 million (10.5 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 8.3 percent, while growth at noncommunity banks was 4.8 percent. The noncurrent rate continued to improve, and community banks accounted for 43 percent of small loans to businesses.
Insurance Fund Indicators
Insured deposits increased by 1.4 percent in the fourth quarter of 2016. The DIF reserve ratio rose to 1.20 percent at year-end 2016, up from 1.18 percent at September 30, 2016, and 1.11 percent at year-end 2015. There were no failures of FDIC-insured institutions during the quarter.
Banks Attract More Deposits While Operating Fewer Offices - PDF (PDF Help)
Deposits across the banking industry grew while the number of offices shrank among noncommunity banks and increased among community banks from the previous year, according to the 2016 Summary of Deposits survey. Meanwhile, offices in energy-dependent counties reported almost no deposit growth as natural gas, oil, and coal prices fell.