The United States Federal Deposit Insurance Corporation (FDIC) published third quarter 2025 performance results for FDIC-insured institutions, showing higher quarter-over-quarter earnings and an industry return on assets of 1.27 percent. Earnings were supported by strong net interest income growth and a sharp reduction in provision expense linked to a prior-quarter large bank acquisition, while domestic deposits rose for a fifth consecutive quarter and loan growth continued. Asset quality measures were described as generally favorable despite ongoing weakness in certain portfolios, and unrealized securities losses declined but remained elevated. Quarterly net income rose to USD 79.3 billion, up USD 9.4 billion (13.5 percent) from the prior quarter, as provision expense fell USD 9.2 billion (30.7 percent) to USD 20.8 billion and net interest income increased USD 7.6 billion; the industry net interest margin increased 9 basis points to 3.34 percent. Total loans increased USD 159.0 billion (1.2 percent), with the largest dollar increases in loans to non-depository financial institutions and loans to purchase or carry securities, while consumer and nonfarm nonresidential commercial real estate (CRE) also contributed. The overall past-due and nonaccrual rate held at 1.49 percent, with elevated PDNA rates persisting in non-owner-occupied CRE, multifamily CRE, auto, and credit card portfolios; banks with more than USD 250 billion in assets reported a non-owner-occupied CRE PDNA rate of 4.18 percent. The FDIC reported total unrealized losses on held-to-maturity and available-for-sale securities declined USD 58.2 billion (14.7 percent) to USD 337.1 billion. The number of banks on the Problem Bank List fell by two to 57, and no banks opened or failed during the quarter. The Deposit Insurance Fund balance increased to USD 150.1 billion, lifting the reserve ratio to 1.40 percent as of September 30, 2025.

Original source View in tracker