The Federal Deposit Insurance Corporation published its Quarterly Banking Profile for fourth quarter 2024, reporting that 4,487 FDIC-insured commercial banks and savings institutions generated aggregate net income of USD 66.8 billion and a return on assets of 1.11%. Net income rose USD 1.5 billion (2.3%) from the prior quarter, largely reflecting higher net interest income as declining short-term interest rates reduced interest expense more than interest income; full-year 2024 net income increased to USD 268.2 billion and ROA to 1.12%. Community banks (4,046 institutions) recorded fourth-quarter net income of USD 6.4 billion, down 6.5% quarter on quarter, and full-year net income of USD 25.9 billion, down 2.4% year on year, as higher noninterest and provision expenses outweighed income gains. Net interest margin increased five basis points to 3.28% across all asset-size groups, while past-due and nonaccrual loans rose to 1.60% of total loans and the net charge-off ratio increased to 0.70% (credit card net charge-offs were 4.57%); weakness remained notable in non-owner occupied commercial real estate, particularly office loans at banks with more than USD 250 billion in assets. Total loan and lease balances increased 0.8% (USD 105.0 billion), with some portfolio movements attributed to reclassifications following finalized changes to loan product reporting; domestic deposits grew 1.2% (USD 214.0 billion) mainly on higher estimated uninsured deposits (up USD 218.5 billion) as brokered deposits fell for the fourth consecutive quarter. The Deposit Insurance Fund balance rose to USD 137.1 billion and the reserve ratio increased to 1.28%, while the number of FDIC-insured institutions declined by 30 to 4,487.

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