FDIC Says Deposits Inch Higher in Q3
A press release, entitled, "FDIC-Insured Institutions Reported Return on Assets of 1.27 Percent and Net Income of $79.3 Billion in Third Quarter 2025," comments, "The Federal Deposit Insurance Corporation (FDIC) ... released the results of its latest Quarterly Banking Profile, a comprehensive summary of financial results based on reports from 4,379 insured commercial banks and savings institutions. In the third quarter 2025, insured depository institutions reported a return on assets (ROA) ratio of 1.27 percent and aggregate net income of $79.3 billion, an increase of $9.4 billion (13.5 percent) from the prior quarter. Strong net interest income growth and a reduction in provision expense, primarily related to last quarter’s large bank acquisition, drove the quarterly increase in earnings." It says, "The industry reported a quarterly increase in net interest income (up $7.6 billion, or 4.2 percent), as interest income accelerated more than interest expense. The net interest margin (NIM) increased by 9 basis points to 3.34 percent, which is above the pre-pandemic average of 3.25 percent.1The community bank NIM of 3.73 percent increased 10 basis points from the prior quarter, increasing for the sixth consecutive quarter, and is above the pre-pandemic average of 3.63 percent." The release continues, "Domestic deposits increased $92.2 billion (0.5 percent) from second quarter 2025, rising for a fifth consecutive quarter. Estimated uninsured domestic deposits drove the increase, up $88.6 billion (1.1 percent) from the prior quarter." It adds, "The Deposit Insurance Fund Reserve Ratio Increased 4 Basis Points to 1.40 Percent: In the third quarter, the Deposit Insurance Fund balance increased $4.8 billion to $150.1 billion. The reserve ratio increased 4 basis points during the quarter to 1.40 percent.... The total number of FDIC-insured institutions declined by 42 during the third quarter to 4,379. During the quarter, four banks were sold to uninsured institutions and 38 institutions merged or consolidated with other banks."
