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 $39.8 billion in the first quarter of 2015, up $2.6 billion (6.9 percent) from a year earlier. The increase in earnings was mainly attributable to a $4.3 billion rise in net operating revenue (net interest income plus total noninterest income). Of the 6,419 insured institutions in the first quarter of 2015, nearly two-thirds (62.7 percent) reported year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the first quarter fell to 5.6 percent from 7.4 percent a year earlier.
Community Bank Performance
Community banks—which represent 93 percent of insured institutions—reported net income of $4.9 billion in the first quarter, up $690.9 million (16.4 percent) from one year earlier. The increase was driven by higher net interest income and noninterest income, coupled with lower loan-loss provisions. In the first quarter of 2015, loan balances at community banks grew at a faster pace than in the industry, asset quality indicators continued to show improvement, and community banks accounted for 44 percent of small loans to businesses.
Insurance Fund Indicators
Estimated insured deposits increased by 2.3 percent in the first quarter of 2015 and increased by 3.6 percent over the past four quarters. The DIF reserve ratio rose to 1.03 percent on March 31, 2015, up from 1.01 percent at December 31, 2014, and 0.80 percent at March 31, 2014. Four FDIC-insured institutions failed during the quarter.