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 $48.3 billion in the second quarter of 2017, up $4.7 billion (10.7 percent) from a year earlier. The increase in earnings was mainly attributable to a $10.3 billion (9.1 percent) increase in net interest income and a $654 million (1 percent) increase in noninterest income. Of the 5,787 insured institutions reporting second quarter financial results, 63.4 percent reported year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable in the second quarter fell to 4.1 percent from 4.6 percent a year earlier.
Community Bank Performance
Community banks—which represent 92 percent of insured institutions—reported net income of $5.7 billion in the second quarter, up $444.5 million (8.5 percent) from one year earlier. The increase was driven by higher net interest income, but was partly offset by lower noninterest income and higher loan-loss provisions and noninterest expense. The 12-month growth rate in loan balances at community banks was 7.8 percent, while loan growth at noncommunity banks was 3 percent. The noncurrent rate continued to improve, despite an uptick in the net charge-off rate.
Insurance Fund Indicators
Insured deposits decreased by 0.4 percent in the second quarter of 2017. The DIF reserve ratio was 1.24 percent on June 30, 2017, up from 1.20 percent on March 31, 2017, and 1.17 percent on June 30, 2016. Three FDIC-insured institutions failed during the quarter.