FDIC's Quarterly Banking Profile
The FDIC's latest "Quarterly Banking Profile" says, "Net interest income was $746 million (0.7 percent) higher than a year ago, even though the average net interest margin (NIM) fell from 3.56 percent to 3.43 percent. The increase in net interest income was made possible by a 4.6 percent increase in interest-earning assets. Two out of every three insured institutions (67.8 percent) reported year-over-year NIM declines, as average asset yields declined faster than average funding costs.... Most of the increase in assets was funded by deposit growth, as total deposits increased by $181.7 billion (1.8 percent). Deposits in foreign offices rose by $35.2 billion (2.5 percent), while domestic office deposits increased by $146.5 billion (1.6 percent). More than three-quarters of the increase in domestic deposits ($110.9 billion) consisted of balances in noninterest-bearing transaction deposits that exceeded the basic FDIC coverage limit of $250,000 but have temporary full FDIC insurance coverage until the end of 2012. Nondeposit liabilities declined by $20.2 billion (1 percent). At the end of September, deposits funded 73.9 percent of banking industry assets, the highest proportion since the end of 1993.... Insured institutions held $1.7 trillion in noninterest-bearing transaction accounts larger than $250,000, of which $1.5 trillion exceeded the basic coverage limit of $250,000 per account but is temporarily fully insured through December 31, 2012. These temporarily insured balances funded 4.7 percent of assets at banks with less than $10 billion in total assets and 11.9 percent of assets at banks with more than $10 billion in assets. Balances exceeding $250,000 in noninterest-bearing transaction accounts increased by 8.0 percent ($110.9 billion) during the third quarter, following growth of 5.0 percent ($65.5 billion) during the second quarter."
