The Federal Deposit Insurance Corporation (FDIC) published its full-year and fourth quarter 2025 performance results for FDIC-insured institutions, reporting stronger annual earnings and widening net interest margins alongside faster loan and domestic deposit growth. The update also highlights continued pockets of credit weakness in specific loan portfolios and unrealized securities losses that, while declining, remain elevated and under supervisory monitoring. Full-year 2025 net income rose 10.2% to USD 295.6 billion, lifting return on assets by 8 basis points to 1.20%; community banks reported USD 29.9 billion in net income and a pre-tax ROA of 1.32%. Fourth-quarter net income was USD 77.7 billion, down 2.0% quarter-on-quarter, driven mainly by higher noninterest expense and non-recurring items at several larger banks, while net interest margin increased 5 basis points to 3.39%, the highest level since 2019 (community banks: 3.77%, highest since 2018). Total loans increased USD 267.8 billion (2.0%) in the quarter, bringing annual loan growth to 5.9%, and domestic deposits rose USD 318.3 billion (1.8%), led by an estimated USD 214.7 billion increase in uninsured domestic deposits. Asset quality metrics were “generally favorable” with the past-due and nonaccrual rate at 1.56%, but non-owner-occupied commercial real estate, multifamily, auto and credit card portfolios remained above pre-pandemic averages; net charge-offs were 0.63%. Unrealized losses on held-to-maturity and available-for-sale securities fell USD 31.0 billion (9.2%) to USD 306.1 billion, longer-term loans and securities declined to 33.7% of assets, and the FDIC’s Problem Bank List increased by a net three to 60 banks. The Deposit Insurance Fund balance rose to USD 153.9 billion and the reserve ratio to 1.42%, with the FDIC signalling ongoing supervisory attention on portfolio-specific credit weakness and elevated unrealized losses.

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