FDIC Quarterly Banking Profile Q4'23
The Federal Deposit Insurance Corporation released its latest "FDIC Quarterly Banking Profile," which says "Domestic deposits increased $186.9 billion (1.1 percent) from third quarter 2023, the first quarterly increase in the past seven quarters. Growth in time deposits led the increase in domestic deposits, while noninterest-bearing deposits declined for the seventh consecutive quarter. Estimated insured deposits (up $46.6 billion, or 0.4 percent) increased during the quarter. Reported uninsured deposits decreased during the quarter but would have increased for the first time in seven quarters had a large bank's subsidiary transactions not affected reported data. Excluding that bank from the calculations, the industry's uninsured deposits increased $92.4 billion, or 1.4 percent, in the quarter <b:>`_." It explains, "Community banks reported an increase in total deposits of 1.2 percent ($25.7 billion) during fourth quarter 2023, similar to an increase of 1.0 percent reported in third quarter 2023. More than half of all community banks (59.9 percent) reported an increase in deposit balances from the prior quarter. Community banks reported growth in both insured ($11.6 billion, or 0.7 percent) and uninsured deposit account balances ($14.9 billion, or 2.2 percent). In the fourth quarter, growth in interest-bearing deposit balances ($35.5 billion, or 2.1 percent) was somewhat offset by a decline in noninterest-bearing deposits ($9.8 billion, or 1.8 percent). Total deposits increased 2.3 percent ($51.2 billion) from one year ago." A press release, entitled, "FDIC-Insured Institutions Reported Full-Year 2023 Net Income of $256.9 Billion and Fourth Quarter 2023 Net Income of $38.4 Billion," comments, "Reports from 4,587 commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reflect aggregate full-year 2023 net income of $256.9 billion, down $6 billion (2.3 percent) from the prior year, and fourth quarter 2023 net income of $38.4 billion, down $30 billion (43.9 percent) from the prior quarter. Non-recurring, noninterest expenses at large banks drove the decrease in quarterly earnings. Higher provision expense and lower noninterest income also contributed to the decline. These and other financial results for fourth quarter 2023 are included in the FDIC's latest Quarterly Banking Profile." FDIC Chairman Martin Gruenberg comments, "The banking industry has shown resilience after a period of liquidity stress in early 2023. Full-year net income remained high, overall asset quality metrics were favorable, and the industry's liquidity was stable. However, ongoing economic and geopolitical uncertainty, continuing inflationary pressures, volatility in market interest rates, and emerging risks in some bank commercial real estate portfolios pose significant downside risks to the banking industry. These issues, together with funding and earnings pressures, will remain matters of ongoing supervisory attention by the FDIC."
