Overview

• Insured banks posted $69.9 billion in net income and a 1.13% return on assets, with FDIC officials citing a 34% jump in provision expenses linked to the Capital One–Discover merger; excluding that impact, ROA would have risen to 1.23%.
• The Deposit Insurance Fund rose to $145.3 billion with a 1.36% reserve ratio, clearing the 1.35% threshold and prompting the FDIC to end its Restoration Plan starting in the third quarter.
• Net operating revenue increased 1.4% to $266.3 billion as the net interest margin edged up to 3.26%, while total domestic deposits grew for a fourth straight quarter, led by a rise in uninsured balances.
• Loan balances climbed $263.7 billion (2.1%) to $13.1 trillion, a gain the FDIC said was aided by reporting reclassifications alongside growth in credit cards, commercial real estate and residential mortgages.
• Asset quality stayed broadly favorable with past-due and nonaccrual loans at 1.50%, though delinquencies were elevated in non-owner-occupied commercial real estate, multifamily and credit cards; unrealized securities losses fell to $395.3 billion as equity capital rose to $2.5 trillion and the Problem Bank List declined to 59 banks out of 4,421.