The Federal Deposit Insurance Corporation published its Quarterly Banking Profile for the first quarter of 2025, reporting that 4,462 FDIC-insured commercial banks and savings institutions generated aggregate net income of USD 70.6 billion and a return on assets of 1.16 percent, up from the prior quarter, with the increase driven mainly by higher noninterest income. The release also shows domestic deposits rising for a third consecutive quarter and the Deposit Insurance Fund (DIF) reserve ratio increasing to 1.31 percent. Noninterest income rose USD 5.4 billion (7 percent) as several large firms reported mark-to-market gains on certain financial instruments amid market volatility, alongside lower losses on securities sales, while community bank net income increased 10 percent to USD 6.8 billion. Net interest margin edged down two basis points to 3.25 percent as net interest income fell 0.2 percent, and asset quality metrics remained generally favorable with past-due and nonaccrual loans at 1.59 percent of total loans, although weakness persisted in some portfolios including commercial real estate where the PDNA rate reached 1.49 percent, the highest since fourth quarter 2014, with multifamily CRE at 1.47 percent. Total loan and lease balances increased USD 62 billion (0.5 percent) and domestic deposits rose USD 180.9 billion (1 percent) with brokered deposits down USD 14.9 billion (1.2 percent), while the DIF balance increased to USD 140.9 billion and the number of FDIC-insured institutions declined by 25 to 4,462.

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