FDIC - Federal Deposit Insurance Corporation
08/25/2026 | Press release | Distributed by Public on 08/25/2026 08:14
FDIC Quarterly Banking Profile Second Quarter 2026
Today, the FDIC is releasing second quarter 2026 performance results for FDIC-insured institutions.
The banking industry finished the quarter with higher earnings, resulting in a return on assets ratio (ROA) of 1.37 percent. Domestic deposits increased for the eighth consecutive quarter and loan growth was strong. Asset quality metrics improved, while unrealized losses remained elevated.
The banking industry continued to have strong capital and liquidity levels, which support lending and protect against potential losses.
Quarterly Net Income (Chart 1)
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| Quarter | Net Income ($ Bil) | Return on Assets (%) |
| 2006 Q1 | 36.9 | 1.34 |
| 2006 Q2 | 38.0 | 1.34 |
| 2006 Q3 | 38.0 | 1.31 |
| 2006 Q4 | 35.3 | 1.20 |
| 2007 Q1 | 35.6 | 1.20 |
| 2007 Q2 | 36.9 | 1.22 |
| 2007 Q3 | 28.7 | 0.92 |
| 2007 Q4 | 0.5 | 0.01 |
| 2008 Q1 | 19.3 | 0.58 |
| 2008 Q2 | 4.8 | 0.14 |
| 2008 Q3 | 3.1 | 0.09 |
| 2008 Q4 | -35.7 | -1.04 |
| 2009 Q1 | -6.1 | -0.18 |
| 2009 Q2 | -12.6 | -0.38 |
| 2009 Q3 | 2.1 | 0.06 |
| 2009 Q4 | -1.7 | -0.05 |
| 2010 Q1 | 17.4 | 0.53 |
| 2010 Q2 | 20.9 | 0.63 |
| 2010 Q3 | 23.8 | 0.72 |
| 2010 Q4 | 21.4 | 0.64 |
| 2011 Q1 | 28.7 | 0.86 |
| 2011 Q2 | 28.5 | 0.85 |
| 2011 Q3 | 35.2 | 1.03 |
| 2011 Q4 | 25.3 | 0.73 |
| 2012 Q1 | 34.8 | 1.00 |
| 2012 Q2 | 34.5 | 0.99 |
| 2012 Q3 | 37.5 | 1.06 |
| 2012 Q4 | 34.4 | 0.96 |
| 2013 Q1 | 40.3 | 1.12 |
| 2013 Q2 | 38.2 | 1.06 |
| 2013 Q3 | 36.1 | 0.99 |
| 2013 Q4 | 39.8 | 1.09 |
| 2014 Q1 | 37.3 | 1.01 |
| 2014 Q2 | 40.1 | 1.07 |
| 2014 Q3 | 38.5 | 1.01 |
| 2014 Q4 | 36.5 | 0.95 |
| 2015 Q1 | 39.8 | 1.02 |
| 2015 Q2 | 43.0 | 1.09 |
| 2015 Q3 | 40.4 | 1.03 |
| 2015 Q4 | 40.6 | 1.02 |
| 2016 Q1 | 38.9 | 0.97 |
| 2016 Q2 | 43.5 | 1.06 |
| 2016 Q3 | 45.5 | 1.10 |
| 2016 Q4 | 43.1 | 1.03 |
| 2017 Q1 | 43.8 | 1.04 |
| 2017 Q2 | 48.1 | 1.13 |
| 2017 Q3 | 47.9 | 1.12 |
| 2017 Q4 | 25.2 | 0.58 |
| 2018 Q1 | 55.8 | 1.28 |
| 2018 Q2 | 60.1 | 1.37 |
| 2018 Q3 | 61.9 | 1.41 |
| 2018 Q4 | 59.3 | 1.33 |
| 2019 Q1 | 60.7 | 1.35 |
| 2019 Q2 | 62.5 | 1.38 |
| 2019 Q3 | 57.3 | 1.25 |
| 2019 Q4 | 54.9 | 1.19 |
| 2020 Q1 | 18.5 | 0.38 |
| 2020 Q2 | 18.5 | 0.36 |
| 2020 Q3 | 51.1 | 0.97 |
| 2020 Q4 | 59.5 | 1.10 |
| 2021 Q1 | 76.8 | 1.38 |
| 2021 Q2 | 70.4 | 1.24 |
| 2021 Q3 | 69.5 | 1.21 |
| 2021 Q4 | 63.9 | 1.09 |
| 2022 Q1 | 59.8 | 1.01 |
| 2022 Q2 | 64.4 | 1.08 |
| 2022 Q3 | 71.6 | 1.21 |
| 2022 Q4 | 68.1 | 1.16 |
| 2023 Q1 | 79.8 | 1.36 |
| 2023 Q2 | 70.7 | 1.21 |
| 2023 Q3 | 68.3 | 1.17 |
| 2023 Q4 | 35.7 | 0.61 |
| 2024 Q1 | 64.6 | 1.09 |
| 2024 Q2 | 71.6 | 1.20 |
| 2024 Q3 | 65.3 | 1.09 |
| 2024 Q4 | 66.7 | 1.10 |
| 2025 Q1 | 70.4 | 1.16 |
| 2025 Q2 | 70.0 | 1.14 |
| 2025 Q3 | 79.3 | 1.27 |
| 2025 Q4 | 77.7 | 1.23 |
| 2026 Q1 | 80.5 | 1.26 |
| 2026 Q2 | 90.1 | 1.37 |
Source: FDIC.
Chart 1 shows that the banking industry reported quarterly net income of $90.1 billion in the second quarter, an increase of $9.7 billion, or 12.0 percent, from the prior quarter. The rise in quarterly earnings was driven by robust growth in noninterest income and securities gains. Net interest income and lower provisions also contributed to the rise in quarterly earnings, which were partially offset by higher noninterest expense. The banking industry reported an ROA of 1.37 percent in second quarter 2026, up 11 basis points from the prior quarter and up 24 basis points from the year-ago quarter.
Community bank net income increased 8.2 percent from the prior quarter due to higher net interest income, noninterest income, and securities gains. The quarterly pretax ROA at community banks was 1.53 percent in second quarter 2026, up 11 basis points from the prior quarter and up 17 basis points from the year-ago quarter.
Quarter-Over-Quarter Change in Net Income (Chart 2)
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| Component | Quarterly Amount ($ Bil) | Quarterly Change (%) |
| Net Income | 9.67 | 12.02 |
| Net Interest Income | 5.29 | 2.75 |
| Noninterest Income | 5.49 | 6.05 |
| Provisions | -2.14 | -9.98 |
| Noninterest Expense | 4.43 | 2.77 |
| Realized Securities Gains (Losses) | 5.47 | N/M |
| Applicable Income Taxes | 4.31 | 20.70 |
Source: FDIC.
Note: Red bars show a negative effect on net income; green bars show a positive effect on net income.
Chart 2 shows the breakdown of the changes in the industry's net income quarter over quarter. The primary drivers of the industry's $9.7 billion increase in net income were higher noninterest income (up $5.5 billion, or 6.1 percent), mostly due to trading revenues given continued market volatility and higher fee income, and securities gains, primarily from one-time gains on equity security transactions (up $5.5 billion). Net interest income (up $5.3 billion, or 2.8 percent) also contributed to the increase in net income. Industry gains were partially offset by higher noninterest expense, which increased $4.4 billion, or 2.8 percent.
Quarterly Net Interest Margin (Chart 3)
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| Quarter | Industry (%) | Assets > $250 Billion (%) | Assets $10 Billion - $250 Billion (%) | Assets $1 Billion - $10 Billion (%) | Assets $100 Million - $1 Billion (%) | Assets $100 Million (%) |
| 2006 Q1 | 3.45 | 2.96 | 3.59 | 3.75 | 4.09 | 4.18 |
| 2006 Q2 | 3.46 | 2.92 | 3.63 | 3.75 | 4.12 | 4.26 |
| 2006 Q3 | 3.38 | 2.90 | 3.48 | 3.71 | 4.08 | 4.24 |
| 2006 Q4 | 3.21 | 2.60 | 3.45 | 3.56 | 3.96 | 4.18 |
| 2007 Q1 | 3.32 | 2.83 | 3.50 | 3.67 | 3.89 | 4.07 |
| 2007 Q2 | 3.33 | 2.85 | 3.50 | 3.72 | 3.90 | 4.11 |
| 2007 Q3 | 3.35 | 2.92 | 3.48 | 3.74 | 3.90 | 4.13 |
| 2007 Q4 | 3.32 | 2.93 | 3.44 | 3.68 | 3.82 | 4.08 |
| 2008 Q1 | 3.33 | 2.97 | 3.50 | 3.62 | 3.67 | 3.88 |
| 2008 Q2 | 3.37 | 3.07 | 3.51 | 3.62 | 3.68 | 3.85 |
| 2008 Q3 | 3.37 | 2.84 | 3.77 | 3.56 | 3.75 | 3.98 |
| 2008 Q4 | 3.34 | 2.91 | 3.68 | 3.51 | 3.63 | 3.86 |
| 2009 Q1 | 3.43 | 3.22 | 3.64 | 3.36 | 3.54 | 3.77 |
| 2009 Q2 | 3.46 | 3.21 | 3.74 | 3.34 | 3.57 | 3.82 |
| 2009 Q3 | 3.50 | 3.20 | 3.80 | 3.46 | 3.67 | 3.90 |
| 2009 Q4 | 3.56 | 3.37 | 3.78 | 3.48 | 3.72 | 3.91 |
| 2010 Q1 | 3.84 | 3.35 | 4.60 | 3.64 | 3.71 | 3.86 |
| 2010 Q2 | 3.76 | 3.29 | 4.39 | 3.65 | 3.78 | 3.92 |
| 2010 Q3 | 3.75 | 3.22 | 4.42 | 3.68 | 3.81 | 3.96 |
| 2010 Q4 | 3.69 | 3.16 | 4.29 | 3.73 | 3.81 | 3.88 |
| 2011 Q1 | 3.66 | 3.13 | 4.26 | 3.80 | 3.75 | 3.82 |
| 2011 Q2 | 3.61 | 3.08 | 4.16 | 3.83 | 3.82 | 3.89 |
| 2011 Q3 | 3.56 | 3.12 | 3.97 | 3.88 | 3.86 | 3.94 |
| 2011 Q4 | 3.58 | 3.18 | 3.94 | 3.93 | 3.82 | 3.88 |
| 2012 Q1 | 3.51 | 3.23 | 3.68 | 3.87 | 3.75 | 3.79 |
| 2012 Q2 | 3.45 | 3.01 | 3.85 | 3.81 | 3.75 | 3.75 |
| 2012 Q3 | 3.42 | 2.94 | 3.85 | 3.83 | 3.77 | 3.81 |
| 2012 Q4 | 3.34 | 2.94 | 3.70 | 3.80 | 3.69 | 3.70 |
| 2013 Q1 | 3.27 | 2.84 | 3.64 | 3.72 | 3.58 | 3.57 |
| 2013 Q2 | 3.25 | 2.77 | 3.67 | 3.77 | 3.63 | 3.61 |
| 2013 Q3 | 3.26 | 2.75 | 3.68 | 3.85 | 3.69 | 3.71 |
| 2013 Q4 | 3.27 | 2.80 | 3.65 | 3.83 | 3.72 | 3.68 |
| 2014 Q1 | 3.16 | 2.62 | 3.66 | 3.76 | 3.64 | 3.61 |
| 2014 Q2 | 3.15 | 2.59 | 3.65 | 3.78 | 3.69 | 3.65 |
| 2014 Q3 | 3.15 | 2.58 | 3.65 | 3.79 | 3.74 | 3.71 |
| 2014 Q4 | 3.12 | 2.69 | 3.45 | 3.78 | 3.73 | 3.71 |
| 2015 Q1 | 3.02 | 2.61 | 3.32 | 3.72 | 3.62 | 3.58 |
| 2015 Q2 | 3.07 | 2.68 | 3.33 | 3.73 | 3.66 | 3.63 |
| 2015 Q3 | 3.08 | 2.71 | 3.25 | 3.78 | 3.72 | 3.72 |
| 2015 Q4 | 3.12 | 2.79 | 3.28 | 3.64 | 3.69 | 3.70 |
| 2016 Q1 | 3.10 | 2.69 | 3.45 | 3.58 | 3.66 | 3.66 |
| 2016 Q2 | 3.08 | 2.63 | 3.52 | 3.60 | 3.68 | 3.68 |
| 2016 Q3 | 3.18 | 2.80 | 3.54 | 3.61 | 3.69 | 3.71 |
| 2016 Q4 | 3.16 | 2.75 | 3.52 | 3.64 | 3.70 | 3.70 |
| 2017 Q1 | 3.19 | 2.79 | 3.55 | 3.59 | 3.66 | 3.64 |
| 2017 Q2 | 3.22 | 2.81 | 3.58 | 3.65 | 3.74 | 3.72 |
| 2017 Q3 | 3.30 | 2.86 | 3.73 | 3.67 | 3.80 | 3.79 |
| 2017 Q4 | 3.31 | 2.86 | 3.78 | 3.69 | 3.80 | 3.79 |
| 2018 Q1 | 3.32 | 2.88 | 3.79 | 3.68 | 3.75 | 3.74 |
| 2018 Q2 | 3.38 | 2.94 | 3.83 | 3.71 | 3.85 | 3.82 |
| 2018 Q3 | 3.45 | 2.99 | 3.91 | 3.79 | 3.90 | 3.90 |
| 2018 Q4 | 3.48 | 3.02 | 3.96 | 3.82 | 3.91 | 3.92 |
| 2019 Q1 | 3.42 | 2.99 | 3.85 | 3.74 | 3.82 | 3.81 |
| 2019 Q2 | 3.39 | 3.03 | 3.71 | 3.74 | 3.85 | 3.85 |
| 2019 Q3 | 3.35 | 2.97 | 3.69 | 3.76 | 3.85 | 3.86 |
| 2019 Q4 | 3.28 | 2.92 | 3.64 | 3.67 | 3.77 | 3.79 |
| 2020 Q1 | 3.13 | 2.71 | 3.68 | 3.58 | 3.69 | 3.65 |
| 2020 Q2 | 2.81 | 2.36 | 3.31 | 3.42 | 3.66 | 3.60 |
| 2020 Q3 | 2.68 | 2.20 | 3.24 | 3.27 | 3.39 | 3.31 |
| 2020 Q4 | 2.68 | 2.17 | 3.27 | 3.36 | 3.41 | 3.28 |
| 2021 Q1 | 2.56 | 2.05 | 3.12 | 3.36 | 3.38 | 3.34 |
| 2021 Q2 | 2.50 | 2.00 | 3.00 | 3.31 | 3.38 | 3.37 |
| 2021 Q3 | 2.56 | 2.05 | 3.07 | 3.42 | 3.40 | 3.26 |
| 2021 Q4 | 2.55 | 2.07 | 3.08 | 3.33 | 3.28 | 3.17 |
| 2022 Q1 | 2.54 | 2.06 | 3.10 | 3.24 | 3.15 | 2.95 |
| 2022 Q2 | 2.80 | 2.28 | 3.43 | 3.50 | 3.35 | 3.15 |
| 2022 Q3 | 3.14 | 2.64 | 3.76 | 3.82 | 3.65 | 3.52 |
| 2022 Q4 | 3.38 | 3.06 | 3.71 | 3.92 | 3.76 | 3.69 |
| 2023 Q1 | 3.31 | 3.05 | 3.64 | 3.69 | 3.60 | 3.70 |
| 2023 Q2 | 3.28 | 3.03 | 3.64 | 3.55 | 3.54 | 3.75 |
| 2023 Q3 | 3.30 | 3.06 | 3.69 | 3.51 | 3.52 | 3.87 |
| 2023 Q4 | 3.28 | 3.03 | 3.65 | 3.51 | 3.49 | 3.96 |
| 2024 Q1 | 3.18 | 2.92 | 3.61 | 3.39 | 3.41 | 3.69 |
| 2024 Q2 | 3.16 | 2.87 | 3.62 | 3.42 | 3.49 | 3.76 |
| 2024 Q3 | 3.23 | 2.94 | 3.68 | 3.48 | 3.55 | 3.77 |
| 2024 Q4 | 3.27 | 2.97 | 3.70 | 3.57 | 3.63 | 3.80 |
| 2025 Q1 | 3.25 | 2.94 | 3.69 | 3.57 | 3.63 | 3.72 |
| 2025 Q2 | 3.26 | 2.99 | 3.53 | 3.73 | 3.81 | 3.85 |
| 2025 Q3 | 3.34 | 3.06 | 3.61 | 3.86 | 3.91 | 3.96 |
| 2025 Q4 | 3.39 | 3.05 | 3.89 | 3.91 | 3.96 | 3.99 |
| 2026 Q1 | 3.31 | 3.01 | 3.73 | 3.85 | 3.90 | 3.87 |
| 2026 Q2 | 3.32 | 2.94 | 3.95 | 3.93 | 4.02 | 3.99 |
Source: FDIC.
Chart 3 shows the average net interest margin (NIM) for the industry and the five asset-size groups on which the Quarterly Banking Profile reports. The industry's NIM increased to 3.32 percent, up 1 basis point from the prior quarter and up 6 basis points from the year-ago quarter.
The community bank NIM increased to 3.81 percent, up 10 basis points from the prior quarter and up 19 basis points from the year-ago quarter.
Quarterly Change in Yield on Earning Assets and Cost of Funds (Chart 4)
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| Quarter | Change in Yield on Earning Assets (Basis Points) | Change in Cost of Funds (Basis Points) | Quarterly Net Interest Margin (%) |
| 2022 Q1 | -1.32 | 0.06 | 2.54 |
| 2022 Q2 | 35.62 | 10.05 | 2.80 |
| 2022 Q3 | 72.74 | 37.90 | 3.14 |
| 2022 Q4 | 75.80 | 52.48 | 3.38 |
| 2023 Q1 | 38.35 | 45.19 | 3.31 |
| 2023 Q2 | 40.30 | 43.46 | 3.28 |
| 2023 Q3 | 30.61 | 27.98 | 3.30 |
| 2023 Q4 | 18.60 | 21.34 | 3.28 |
| 2024 Q1 | -4.86 | 4.56 | 3.18 |
| 2024 Q2 | 4.74 | 6.46 | 3.16 |
| 2024 Q3 | 12.49 | 5.69 | 3.23 |
| 2024 Q4 | -16.62 | -20.49 | 3.27 |
| 2025 Q1 | -23.74 | -21.53 | 3.25 |
| 2025 Q2 | 0.07 | -0.60 | 3.26 |
| 2025 Q3 | 11.01 | 2.28 | 3.34 |
| 2025 Q4 | -10.47 | -15.25 | 3.39 |
| 2026 Q1 | -21.15 | -13.17 | 3.31 |
| 2026 Q2 | 2.27 | 1.57 | 3.32 |
Source: FDIC.
Note: Ratios are annualized.
Chart 4 shows the quarter-over-quarter changes in the industry's average yield on earning assets and average cost of funds. During the quarter, the yield on earning assets increased slightly more than the cost of funds, resulting in a 1 basis point increase in the industry's NIM.
For community banks, the yield on earning assets increased and the cost of funds fell, resulting in a 10 basis point increase in the NIM in second quarter 2026.
Quarterly Credit Loss Provisions (Chart 5)
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| Quarter | Provisions as % of Assets | Assets >= $250 Billion ($ Bil) | Assets $10 Billion - $250 Billion ($ Bil) | Assets $1 Billion - $10 Billion ($ Bil) | Assets $100 Million - $1 Billion ($ Bil) | Assets $100 Million ($ Bil) |
| 2006 Q1 | 0.0530 | 1.60 | 3.24 | 0.55 | 0.48 | 0.08 |
| 2006 Q2 | 0.0562 | 1.60 | 3.57 | 0.62 | 0.60 | 0.09 |
| 2006 Q3 | 0.0639 | 1.92 | 4.26 | 0.68 | 0.55 | 0.10 |
| 2006 Q4 | 0.0831 | 2.23 | 5.99 | 0.76 | 0.75 | 0.12 |
| 2007 Q1 | 0.0769 | 3.17 | 4.55 | 0.89 | 0.51 | 0.08 |
| 2007 Q2 | 0.0921 | 3.58 | 5.95 | 1.07 | 0.60 | 0.09 |
| 2007 Q3 | 0.1322 | 6.42 | 8.08 | 1.34 | 0.85 | 0.11 |
| 2007 Q4 | 0.2476 | 12.40 | 15.21 | 2.96 | 1.57 | 0.14 |
| 2008 Q1 | 0.2784 | 16.99 | 16.28 | 2.74 | 1.10 | 0.11 |
| 2008 Q2 | 0.3786 | 21.87 | 22.54 | 3.93 | 1.87 | 0.15 |
| 2008 Q3 | 0.3702 | 18.80 | 24.27 | 4.32 | 2.54 | 0.21 |
| 2008 Q4 | 0.5074 | 23.60 | 34.10 | 7.58 | 4.48 | 0.35 |
| 2009 Q1 | 0.4543 | 22.28 | 30.73 | 5.69 | 2.53 | 0.20 |
| 2009 Q2 | 0.5073 | 27.76 | 28.36 | 7.23 | 3.72 | 0.30 |
| 2009 Q3 | 0.4755 | 24.92 | 26.17 | 7.49 | 4.02 | 0.29 |
| 2009 Q4 | 0.4817 | 22.97 | 27.05 | 6.92 | 5.70 | 0.40 |
| 2010 Q1 | 0.3867 | 19.29 | 24.66 | 4.97 | 2.46 | 0.19 |
| 2010 Q2 | 0.3058 | 12.46 | 20.32 | 4.49 | 2.89 | 0.20 |
| 2010 Q3 | 0.2621 | 10.21 | 17.82 | 3.97 | 2.84 | 0.22 |
| 2010 Q4 | 0.2452 | 10.91 | 13.45 | 4.50 | 3.51 | 0.28 |
| 2011 Q1 | 0.1558 | 8.12 | 8.45 | 2.50 | 1.72 | 0.11 |
| 2011 Q2 | 0.1411 | 7.93 | 7.12 | 2.15 | 1.87 | 0.13 |
| 2011 Q3 | 0.1347 | 7.58 | 7.07 | 1.98 | 1.84 | 0.13 |
| 2011 Q4 | 0.1447 | 8.19 | 7.05 | 2.57 | 2.13 | 0.15 |
| 2012 Q1 | 0.1019 | 6.19 | 5.38 | 1.41 | 1.15 | 0.07 |
| 2012 Q2 | 0.1004 | 4.70 | 6.64 | 1.46 | 1.20 | 0.08 |
| 2012 Q3 | 0.1029 | 5.26 | 6.84 | 1.41 | 1.07 | 0.07 |
| 2012 Q4 | 0.1048 | 5.81 | 6.65 | 1.37 | 1.22 | 0.09 |
| 2013 Q1 | 0.0755 | 4.01 | 5.47 | 0.80 | 0.58 | 0.04 |
| 2013 Q2 | 0.0589 | 2.36 | 4.94 | 0.56 | 0.58 | 0.05 |
| 2013 Q3 | 0.0397 | 0.08 | 4.55 | 0.57 | 0.56 | 0.04 |
| 2013 Q4 | 0.0497 | 1.53 | 4.55 | 0.62 | 0.57 | 0.06 |
| 2014 Q1 | 0.0509 | 2.10 | 4.50 | 0.60 | 0.36 | 0.03 |
| 2014 Q2 | 0.0444 | 1.48 | 4.19 | 0.64 | 0.40 | 0.03 |
| 2014 Q3 | 0.0472 | 1.54 | 4.67 | 0.62 | 0.37 | 0.04 |
| 2014 Q4 | 0.0532 | 2.92 | 4.15 | 0.72 | 0.45 | 0.03 |
| 2015 Q1 | 0.0530 | 3.51 | 3.86 | 0.68 | 0.29 | 0.02 |
| 2015 Q2 | 0.0518 | 3.10 | 4.02 | 0.72 | 0.30 | 0.02 |
| 2015 Q3 | 0.0538 | 3.11 | 4.27 | 0.81 | 0.30 | 0.02 |
| 2015 Q4 | 0.0764 | 4.83 | 5.78 | 1.14 | 0.41 | 0.05 |
| 2016 Q1 | 0.0770 | 5.61 | 5.90 | 0.70 | 0.33 | 0.03 |
| 2016 Q2 | 0.0711 | 4.82 | 5.63 | 0.92 | 0.36 | 0.03 |
| 2016 Q3 | 0.0680 | 4.31 | 5.79 | 0.92 | 0.36 | 0.03 |
| 2016 Q4 | 0.0743 | 4.32 | 6.01 | 1.62 | 0.48 | 0.05 |
| 2017 Q1 | 0.0710 | 4.26 | 6.53 | 0.87 | 0.36 | 0.03 |
| 2017 Q2 | 0.0703 | 4.07 | 6.62 | 0.92 | 0.37 | 0.03 |
| 2017 Q3 | 0.0787 | 5.05 | 7.23 | 0.90 | 0.37 | 0.03 |
| 2017 Q4 | 0.0783 | 4.97 | 7.27 | 0.93 | 0.43 | 0.03 |
| 2018 Q1 | 0.0708 | 4.25 | 7.00 | 0.80 | 0.32 | 0.03 |
| 2018 Q2 | 0.0669 | 3.99 | 6.57 | 0.78 | 0.37 | 0.02 |
| 2018 Q3 | 0.0671 | 3.87 | 6.90 | 0.69 | 0.38 | 0.03 |
| 2018 Q4 | 0.0784 | 4.87 | 7.97 | 0.73 | 0.46 | 0.03 |
| 2019 Q1 | 0.0767 | 5.38 | 7.40 | 0.74 | 0.33 | 0.03 |
| 2019 Q2 | 0.0704 | 5.20 | 6.44 | 0.82 | 0.37 | 0.02 |
| 2019 Q3 | 0.0751 | 5.79 | 6.87 | 0.78 | 0.41 | 0.03 |
| 2019 Q4 | 0.0801 | 6.35 | 7.17 | 0.87 | 0.52 | 0.03 |
| 2020 Q1 | 0.2602 | 27.19 | 22.28 | 2.61 | 0.59 | 0.02 |
| 2020 Q2 | 0.2942 | 38.92 | 19.71 | 2.73 | 0.82 | 0.02 |
| 2020 Q3 | 0.0682 | 4.87 | 7.25 | 1.76 | 0.57 | 0.02 |
| 2020 Q4 | 0.0147 | -0.84 | 2.21 | 1.30 | 0.53 | 0.02 |
| 2021 Q1 | -0.0644 | -11.27 | -3.72 | 0.20 | 0.26 | 0.00 |
| 2021 Q2 | -0.0473 | -7.86 | -3.07 | -0.06 | 0.20 | 0.01 |
| 2021 Q3 | -0.0225 | -4.34 | -1.47 | 0.37 | 0.20 | 0.01 |
| 2021 Q4 | -0.0031 | -2.91 | 1.51 | 0.42 | 0.24 | 0.01 |
| 2022 Q1 | 0.0218 | 2.07 | 2.50 | 0.50 | 0.15 | 0.00 |
| 2022 Q2 | 0.0468 | 4.94 | 4.95 | 1.02 | 0.19 | 0.00 |
| 2022 Q3 | 0.0621 | 6.14 | 7.01 | 1.28 | 0.23 | 0.01 |
| 2022 Q4 | 0.0883 | 10.92 | 8.07 | 1.53 | 0.32 | 0.01 |
| 2023 Q1 | 0.0875 | 11.26 | 8.00 | 1.28 | 0.22 | 0.01 |
| 2023 Q2 | 0.0916 | 12.49 | 7.57 | 1.18 | 0.23 | 0.01 |
| 2023 Q3 | 0.0835 | 9.11 | 8.75 | 1.38 | 0.28 | 0.02 |
| 2023 Q4 | 0.1057 | 13.22 | 9.80 | 1.56 | 0.43 | 0.01 |
| 2024 Q1 | 0.0860 | 10.80 | 8.34 | 1.22 | 0.24 | 0.01 |
| 2024 Q2 | 0.0975 | 14.07 | 7.56 | 1.39 | 0.27 | 0.01 |
| 2024 Q3 | 0.0974 | 12.88 | 8.99 | 1.38 | 0.33 | 0.01 |
| 2024 Q4 | 0.0931 | 12.15 | 8.13 | 1.75 | 0.39 | 0.02 |
| 2025 Q1 | 0.0916 | 12.58 | 8.15 | 1.45 | 0.28 | 0.01 |
| 2025 Q2 | 0.1203 | 21.16 | 6.75 | 1.77 | 0.37 | 0.01 |
| 2025 Q3 | 0.0831 | 11.96 | 6.77 | 1.71 | 0.41 | 0.01 |
| 2025 Q4 | 0.0830 | 12.23 | 6.42 | 1.79 | 0.52 | 0.01 |
| 2026 Q1 | 0.0820 | 13.74 | 6.08 | 1.31 | 0.32 | 0.01 |
| 2026 Q2 | 0.0730 | 11.59 | 5.61 | 1.70 | 0.40 | 0.01 |
Source: FDIC.
Chart 5 shows that the industry's provision expense was $19.3 billion in the second quarter, down $2.1 billion from the prior quarter, or 10.0 percent.
Loans and Securities Greater than Three Years as a Percent of Total Assets (Chart 6)
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| Quarter | 3-5 Years (%) | 5-15 Years (%) | > 15 Years (%) |
| 2006 Q1 | 8.2 | 11.8 | 10.7 |
| 2006 Q2 | 8.2 | 12.0 | 10.6 |
| 2006 Q3 | 7.8 | 11.6 | 10.9 |
| 2006 Q4 | 7.7 | 11.7 | 11.5 |
| 2007 Q1 | 7.7 | 12.0 | 11.5 |
| 2007 Q2 | 7.3 | 12.1 | 11.6 |
| 2007 Q3 | 7.2 | 11.9 | 10.8 |
| 2007 Q4 | 7.0 | 11.8 | 10.4 |
| 2008 Q1 | 6.8 | 11.5 | 10.2 |
| 2008 Q2 | 7.1 | 11.7 | 10.3 |
| 2008 Q3 | 7.2 | 11.1 | 9.9 |
| 2008 Q4 | 7.2 | 10.5 | 9.8 |
| 2009 Q1 | 7.4 | 10.7 | 10.3 |
| 2009 Q2 | 7.4 | 11.1 | 10.9 |
| 2009 Q3 | 7.5 | 11.0 | 10.3 |
| 2009 Q4 | 7.5 | 11.2 | 10.6 |
| 2010 Q1 | 7.3 | 11.1 | 10.1 |
| 2010 Q2 | 7.0 | 11.4 | 10.2 |
| 2010 Q3 | 6.8 | 11.3 | 10.3 |
| 2010 Q4 | 6.7 | 12.1 | 10.5 |
| 2011 Q1 | 6.7 | 12.2 | 10.5 |
| 2011 Q2 | 6.7 | 12.2 | 10.4 |
| 2011 Q3 | 6.7 | 12.0 | 10.7 |
| 2011 Q4 | 6.8 | 12.4 | 10.9 |
| 2012 Q1 | 7.2 | 13.0 | 11.2 |
| 2012 Q2 | 7.3 | 12.8 | 11.1 |
| 2012 Q3 | 7.4 | 12.9 | 11.1 |
| 2012 Q4 | 7.3 | 13.1 | 11.1 |
| 2013 Q1 | 7.4 | 13.7 | 11.1 |
| 2013 Q2 | 7.5 | 13.9 | 11.0 |
| 2013 Q3 | 7.6 | 14.2 | 10.8 |
| 2013 Q4 | 7.6 | 14.5 | 10.6 |
| 2014 Q1 | 7.8 | 14.6 | 10.6 |
| 2014 Q2 | 8.0 | 14.6 | 10.6 |
| 2014 Q3 | 8.1 | 14.7 | 10.5 |
| 2014 Q4 | 8.3 | 14.6 | 10.5 |
| 2015 Q1 | 8.3 | 14.5 | 10.7 |
| 2015 Q2 | 8.4 | 14.8 | 11.0 |
| 2015 Q3 | 8.4 | 14.9 | 11.2 |
| 2015 Q4 | 8.3 | 15.1 | 11.5 |
| 2016 Q1 | 8.1 | 14.8 | 11.4 |
| 2016 Q2 | 8.1 | 14.6 | 11.6 |
| 2016 Q3 | 8.1 | 14.7 | 11.8 |
| 2016 Q4 | 8.0 | 15.2 | 12.2 |
| 2017 Q1 | 8.0 | 15.2 | 12.1 |
| 2017 Q2 | 7.9 | 15.1 | 12.4 |
| 2017 Q3 | 7.9 | 15.0 | 12.6 |
| 2017 Q4 | 8.0 | 14.8 | 12.7 |
| 2018 Q1 | 8.0 | 14.8 | 12.5 |
| 2018 Q2 | 8.2 | 14.9 | 12.8 |
| 2018 Q3 | 8.2 | 14.6 | 12.8 |
| 2018 Q4 | 8.2 | 14.4 | 12.8 |
| 2019 Q1 | 8.1 | 14.3 | 12.8 |
| 2019 Q2 | 8.0 | 13.9 | 13.2 |
| 2019 Q3 | 7.8 | 13.8 | 13.6 |
| 2019 Q4 | 7.8 | 14.2 | 13.8 |
| 2020 Q1 | 7.4 | 13.4 | 13.4 |
| 2020 Q2 | 7.1 | 13.3 | 13.1 |
| 2020 Q3 | 7.1 | 14.0 | 13.6 |
| 2020 Q4 | 7.1 | 14.4 | 14.0 |
| 2021 Q1 | 7.7 | 15.3 | 14.3 |
| 2021 Q2 | 8.0 | 16.2 | 14.7 |
| 2021 Q3 | 7.9 | 16.4 | 14.8 |
| 2021 Q4 | 7.9 | 16.6 | 14.9 |
| 2022 Q1 | 7.8 | 16.5 | 14.8 |
| 2022 Q2 | 7.9 | 16.6 | 14.9 |
| 2022 Q3 | 8.1 | 16.4 | 14.7 |
| 2022 Q4 | 8.7 | 16.2 | 14.8 |
| 2023 Q1 | 8.6 | 15.5 | 14.5 |
| 2023 Q2 | 8.7 | 15.1 | 14.5 |
| 2023 Q3 | 8.6 | 14.5 | 14.4 |
| 2023 Q4 | 8.4 | 14.2 | 14.5 |
| 2024 Q1 | 8.2 | 13.7 | 14.2 |
| 2024 Q2 | 8.1 | 13.6 | 14.2 |
| 2024 Q3 | 8.0 | 13.1 | 14.2 |
| 2024 Q4 | 8.0 | 12.9 | 14.2 |
| 2025 Q1 | 8.0 | 12.6 | 14.0 |
| 2025 Q2 | 8.1 | 12.3 | 13.7 |
| 2025 Q3 | 8.3 | 12.1 | 13.5 |
| 2025 Q4 | 8.5 | 11.8 | 13.3 |
| 2026 Q1 | 8.7 | 11.6 | 12.7 |
| 2026 Q2 | 8.9 | 11.6 | 12.5 |
Source: FDIC.
Note: Insured Call Report filers only.
Chart 6 shows that longer-term loans and securities as a share of the banking industry's total assets remained consistent with the prior quarter at 33.0 percent. The industry's longer-term assets as a share of total assets are the lowest since 2014.
At community banks, longer-term loans and securities as a share of total assets increased slightly from the prior quarter from 42.7percent to 43.2 percent.
Unrealized Gains (Losses) on Investment Securities (Chart 7)
Download CSVDisplay table
| Quarter | Unrealized Gains (Losses) on Investment Securities (% of Amortized Cost) | Unrealized Gains (Losses) to Total Assets |
| 2006 Q1 | -1.8 | -0.3 |
| 2006 Q2 | -2.6 | -0.4 |
| 2006 Q3 | -0.5 | -0.1 |
| 2006 Q4 | -0.8 | -0.1 |
| 2007 Q1 | -0.5 | -0.1 |
| 2007 Q2 | -1.7 | -0.2 |
| 2007 Q3 | -0.9 | -0.1 |
| 2007 Q4 | -0.5 | -0.1 |
| 2008 Q1 | -1.1 | -0.1 |
| 2008 Q2 | -2.5 | -0.3 |
| 2008 Q3 | -3.5 | -0.5 |
| 2008 Q4 | -3.4 | -0.5 |
| 2009 Q1 | -2.7 | -0.4 |
| 2009 Q2 | -1.8 | -0.3 |
| 2009 Q3 | 0.6 | 0.1 |
| 2009 Q4 | 0.4 | 0.1 |
| 2010 Q1 | 1.0 | 0.2 |
| 2010 Q2 | 1.8 | 0.3 |
| 2010 Q3 | 2.0 | 0.4 |
| 2010 Q4 | 0.9 | 0.2 |
| 2011 Q1 | 0.8 | 0.1 |
| 2011 Q2 | 1.5 | 0.3 |
| 2011 Q3 | 1.9 | 0.4 |
| 2011 Q4 | 1.8 | 0.3 |
| 2012 Q1 | 1.8 | 0.4 |
| 2012 Q2 | 2.1 | 0.4 |
| 2012 Q3 | 2.8 | 0.6 |
| 2012 Q4 | 2.5 | 0.5 |
| 2013 Q1 | 2.2 | 0.4 |
| 2013 Q2 | 0.1 | 0.0 |
| 2013 Q3 | 0.1 | 0.0 |
| 2013 Q4 | -0.6 | -0.1 |
| 2014 Q1 | 0.1 | 0.0 |
| 2014 Q2 | 0.9 | 0.2 |
| 2014 Q3 | 0.7 | 0.1 |
| 2014 Q4 | 1.1 | 0.2 |
| 2015 Q1 | 1.5 | 0.3 |
| 2015 Q2 | 0.6 | 0.1 |
| 2015 Q3 | 1.0 | 0.2 |
| 2015 Q4 | 0.3 | 0.1 |
| 2016 Q1 | 1.3 | 0.3 |
| 2016 Q2 | 2.0 | 0.4 |
| 2016 Q3 | 1.7 | 0.4 |
| 2016 Q4 | -0.5 | -0.1 |
| 2017 Q1 | -0.4 | -0.1 |
| 2017 Q2 | 0.0 | 0.0 |
| 2017 Q3 | 0.2 | 0.0 |
| 2017 Q4 | -0.3 | -0.1 |
| 2018 Q1 | -1.5 | -0.3 |
| 2018 Q2 | -1.8 | -0.4 |
| 2018 Q3 | -2.3 | -0.5 |
| 2018 Q4 | -1.2 | -0.3 |
| 2019 Q1 | -0.1 | 0.0 |
| 2019 Q2 | 0.9 | 0.2 |
| 2019 Q3 | 1.4 | 0.3 |
| 2019 Q4 | 1.1 | 0.2 |
| 2020 Q1 | 2.5 | 0.5 |
| 2020 Q2 | 2.9 | 0.6 |
| 2020 Q3 | 2.6 | 0.6 |
| 2020 Q4 | 2.4 | 0.5 |
| 2021 Q1 | 0.5 | 0.1 |
| 2021 Q2 | 0.9 | 0.2 |
| 2021 Q3 | 0.5 | 0.1 |
| 2021 Q4 | -0.1 | 0.0 |
| 2022 Q1 | -4.6 | -1.2 |
| 2022 Q2 | -7.4 | -2.0 |
| 2022 Q3 | -11.0 | -2.9 |
| 2022 Q4 | -10.0 | -2.6 |
| 2023 Q1 | -8.8 | -2.2 |
| 2023 Q2 | -9.8 | -2.4 |
| 2023 Q3 | -12.2 | -2.9 |
| 2023 Q4 | -8.5 | -2.0 |
| 2024 Q1 | -9.1 | -2.2 |
| 2024 Q2 | -9.1 | -2.1 |
| 2024 Q3 | -6.4 | -1.5 |
| 2024 Q4 | -8.4 | -2.0 |
| 2025 Q1 | -7.2 | -1.7 |
| 2025 Q2 | -6.8 | -1.6 |
| 2025 Q3 | -5.8 | -1.3 |
| 2025 Q4 | -5.3 | -1.2 |
| 2026 Q1 | -5.5 | -1.2 |
| 2026 Q2 | -5.5 | -1.2 |
Source: FDIC.
Note: Insured Call Report filers only. Unrealized losses on securities solely reflect the difference between the market value and book value of non-equity securities as of quarter end. This chart does not reflect unrealized gains or losses in other parts of the balance sheet.
Chart 7 shows the level of unrealized losses on held-to-maturity and available-for-sale securities portfolios as a percentage of amortized cost. Total unrealized losses reached $326.7 billion, rising slightly from $325.1 billion the prior quarter. Total unrealized losses relative to amortized cost increased slightly to 5.5 percent, but were lower than the 6.8 percent in the year-ago quarter.
Quarterly Change in Loan Balances (Chart 8)
Download CSVDisplay table
| Quarter | Change in Loans Outstanding ($ Bil) | 12-Month Growth Rate (%) |
| 2006 Q1 | 145.8 | 10.7 |
| 2006 Q2 | 196.2 | 10.2 |
| 2006 Q3 | 107.7 | 9.0 |
| 2006 Q4 | 66.3 | 7.7 |
| 2007 Q1 | 43.4 | 6.0 |
| 2007 Q2 | 188.9 | 5.8 |
| 2007 Q3 | 237.3 | 7.5 |
| 2007 Q4 | 202.6 | 9.3 |
| 2008 Q1 | 61.4 | 9.5 |
| 2008 Q2 | 28.1 | 7.1 |
| 2008 Q3 | -24.0 | 3.5 |
| 2008 Q4 | -114.1 | -0.6 |
| 2009 Q1 | -124.1 | -2.9 |
| 2009 Q2 | -108.6 | -4.6 |
| 2009 Q3 | -210.2 | -7.0 |
| 2009 Q4 | -133.3 | -7.3 |
| 2010 Q1 | 221.0 | -3.0 |
| 2010 Q2 | -106.9 | -3.0 |
| 2010 Q3 | -6.6 | -0.3 |
| 2010 Q4 | -13.9 | 1.3 |
| 2011 Q1 | -126.0 | -3.4 |
| 2011 Q2 | 66.9 | -1.1 |
| 2011 Q3 | 23.9 | -0.7 |
| 2011 Q4 | 133.9 | 1.3 |
| 2012 Q1 | -62.9 | 2.2 |
| 2012 Q2 | 102.1 | 2.7 |
| 2012 Q3 | 64.7 | 3.2 |
| 2012 Q4 | 117.5 | 3.0 |
| 2013 Q1 | -37.4 | 3.3 |
| 2013 Q2 | 74.1 | 2.9 |
| 2013 Q3 | 69.7 | 3.0 |
| 2013 Q4 | 91.1 | 2.6 |
| 2014 Q1 | 37.7 | 3.6 |
| 2014 Q2 | 178.3 | 4.9 |
| 2014 Q3 | 50.9 | 4.6 |
| 2014 Q4 | 149.5 | 5.3 |
| 2015 Q1 | 52.5 | 5.4 |
| 2015 Q2 | 185.0 | 5.4 |
| 2015 Q3 | 95.3 | 5.9 |
| 2015 Q4 | 197.1 | 6.4 |
| 2016 Q1 | 99.4 | 6.9 |
| 2016 Q2 | 182.0 | 6.7 |
| 2016 Q3 | 112.0 | 6.8 |
| 2016 Q4 | 72.2 | 5.3 |
| 2017 Q1 | -7.8 | 4.0 |
| 2017 Q2 | 161.1 | 3.7 |
| 2017 Q3 | 98.7 | 3.5 |
| 2017 Q4 | 164.1 | 4.5 |
| 2018 Q1 | 31.0 | 4.9 |
| 2018 Q2 | 104.3 | 4.2 |
| 2018 Q3 | 82.7 | 4.0 |
| 2018 Q4 | 212.9 | 4.4 |
| 2019 Q1 | -4.6 | 4.1 |
| 2019 Q2 | 152.4 | 4.5 |
| 2019 Q3 | 100.5 | 4.6 |
| 2019 Q4 | 117.9 | 3.6 |
| 2020 Q1 | 442.7 | 8.0 |
| 2020 Q2 | 31.1 | 6.7 |
| 2020 Q3 | -81.1 | 4.9 |
| 2020 Q4 | -47.3 | 3.3 |
| 2021 Q1 | -38.6 | -1.2 |
| 2021 Q2 | 33.2 | -1.2 |
| 2021 Q3 | 62.7 | 0.1 |
| 2021 Q4 | 326.1 | 3.5 |
| 2022 Q1 | 109.8 | 4.9 |
| 2022 Q2 | 414.9 | 8.4 |
| 2022 Q3 | 229.7 | 9.9 |
| 2022 Q4 | 225.4 | 8.7 |
| 2023 Q1 | -14.6 | 7.5 |
| 2023 Q2 | 86.4 | 4.5 |
| 2023 Q3 | 45.9 | 2.9 |
| 2023 Q4 | 107.7 | 1.8 |
| 2024 Q1 | -34.8 | 1.7 |
| 2024 Q2 | 125.7 | 2.0 |
| 2024 Q3 | 76.9 | 2.2 |
| 2024 Q4 | 105.2 | 2.2 |
| 2025 Q1 | 61.9 | 3.0 |
| 2025 Q2 | 263.8 | 4.0 |
| 2025 Q3 | 159.0 | 4.7 |
| 2025 Q4 | 267.8 | 5.9 |
| 2026 Q1 | 215.2 | 7.1 |
| 2026 Q2 | 243.5 | 6.8 |
Source: FDIC.
Note: ASC Topics 810 and 860 resulted in the consolidation of large amounts of securitized loan balances back onto banks' balance sheets in the first quarter 2010. Although the amount consolidated cannot be precisely quantified, the industry would have reported a decline in loan balances for the quarter absent this change in accounting standards.
Chart 8 shows the change in loan balances on a quarterly and annual basis. The industry's total loans increased 1.8 percent in the second quarter, with widespread growth across portfolios. Loans to nondepository financial institutions (NDFIs) and commercial and industrial (C&I) loans had the largest dollar increase among reported categories. Loans to purchase or carry securities, including margin loans, also contributed to the industry's quarterly loan growth. The industry's annual rate of loan growth in the second quarter was 6.8 percent.
Total loans at community banks increased 1.6 percent from the prior quarter and 5.1 percent from the prior year, led by increases in nonfarm nonresidential commercial real estate (CRE), 1-4 family residential real estate, and C&I portfolios.
Past Due and Nonaccrual Rate and Quarterly Net Charge-Off Rate (Chart 9)
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| Quarter | Past-Due and Nonaccrual Rate (%) | Quarterly Net Charge-Off Rate (%) |
| 2006 Q1 | 1.53 | 0.32 |
| 2006 Q2 | 1.48 | 0.35 |
| 2006 Q3 | 1.61 | 0.40 |
| 2006 Q4 | 1.78 | 0.47 |
| 2007 Q1 | 1.81 | 0.45 |
| 2007 Q2 | 1.90 | 0.49 |
| 2007 Q3 | 2.28 | 0.57 |
| 2007 Q4 | 2.78 | 0.84 |
| 2008 Q1 | 3.13 | 0.99 |
| 2008 Q2 | 3.47 | 1.32 |
| 2008 Q3 | 3.84 | 1.43 |
| 2008 Q4 | 4.95 | 1.89 |
| 2009 Q1 | 5.82 | 1.94 |
| 2009 Q2 | 6.20 | 2.57 |
| 2009 Q3 | 6.88 | 2.72 |
| 2009 Q4 | 7.36 | 3.00 |
| 2010 Q1 | 7.39 | 2.88 |
| 2010 Q2 | 6.92 | 2.68 |
| 2010 Q3 | 6.78 | 2.38 |
| 2010 Q4 | 6.46 | 2.30 |
| 2011 Q1 | 6.24 | 1.83 |
| 2011 Q2 | 5.79 | 1.59 |
| 2011 Q3 | 5.65 | 1.46 |
| 2011 Q4 | 5.55 | 1.39 |
| 2012 Q1 | 5.33 | 1.16 |
| 2012 Q2 | 5.02 | 1.09 |
| 2012 Q3 | 5.01 | 1.18 |
| 2012 Q4 | 4.75 | 0.97 |
| 2013 Q1 | 4.46 | 0.83 |
| 2013 Q2 | 4.07 | 0.73 |
| 2013 Q3 | 3.77 | 0.60 |
| 2013 Q4 | 3.59 | 0.61 |
| 2014 Q1 | 3.34 | 0.52 |
| 2014 Q2 | 3.05 | 0.50 |
| 2014 Q3 | 2.92 | 0.46 |
| 2014 Q4 | 2.80 | 0.48 |
| 2015 Q1 | 2.56 | 0.43 |
| 2015 Q2 | 2.38 | 0.42 |
| 2015 Q3 | 2.32 | 0.40 |
| 2015 Q4 | 2.29 | 0.49 |
| 2016 Q1 | 2.24 | 0.46 |
| 2016 Q2 | 2.13 | 0.45 |
| 2016 Q3 | 2.10 | 0.44 |
| 2016 Q4 | 2.12 | 0.52 |
| 2017 Q1 | 2.00 | 0.50 |
| 2017 Q2 | 1.85 | 0.48 |
| 2017 Q3 | 1.87 | 0.46 |
| 2017 Q4 | 1.89 | 0.55 |
| 2018 Q1 | 1.80 | 0.50 |
| 2018 Q2 | 1.66 | 0.48 |
| 2018 Q3 | 1.65 | 0.45 |
| 2018 Q4 | 1.63 | 0.50 |
| 2019 Q1 | 1.62 | 0.50 |
| 2019 Q2 | 1.52 | 0.50 |
| 2019 Q3 | 1.53 | 0.51 |
| 2019 Q4 | 1.55 | 0.54 |
| 2020 Q1 | 1.59 | 0.54 |
| 2020 Q2 | 1.58 | 0.57 |
| 2020 Q3 | 1.70 | 0.46 |
| 2020 Q4 | 1.77 | 0.42 |
| 2021 Q1 | 1.61 | 0.34 |
| 2021 Q2 | 1.43 | 0.27 |
| 2021 Q3 | 1.38 | 0.19 |
| 2021 Q4 | 1.39 | 0.21 |
| 2022 Q1 | 1.31 | 0.22 |
| 2022 Q2 | 1.23 | 0.23 |
| 2022 Q3 | 1.23 | 0.26 |
| 2022 Q4 | 1.29 | 0.36 |
| 2023 Q1 | 1.28 | 0.41 |
| 2023 Q2 | 1.26 | 0.49 |
| 2023 Q3 | 1.36 | 0.51 |
| 2023 Q4 | 1.47 | 0.65 |
| 2024 Q1 | 1.48 | 0.65 |
| 2024 Q2 | 1.48 | 0.68 |
| 2024 Q3 | 1.54 | 0.67 |
| 2024 Q4 | 1.60 | 0.71 |
| 2025 Q1 | 1.59 | 0.67 |
| 2025 Q2 | 1.50 | 0.60 |
| 2025 Q3 | 1.49 | 0.61 |
| 2025 Q4 | 1.56 | 0.63 |
| 2026 Q1 | 1.53 | 0.59 |
| 2026 Q2 | 1.44 | 0.57 |
Source: FDIC.
Chart 9 shows that asset quality metrics for the industry are improving. The overall past-due and nonaccrual (PDNA) rate decreased 9 basis points from the prior quarter to 1.44 percent.1 Quarter over quarter, banks reported declines in PDNA rates across most major loan categories.
The industry's quarterly net charge-off rate was 0.57 percent, down 2 basis points from the prior quarter and 3 basis points from the year-ago quarter.
Bank Non-Owner Occupied, Nonfarm Nonresidential Loan Past-Due and Nonaccrual Rates by Asset Size (Chart 10)
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| Quarter | Assets > $250 Billion (%) | Assets $10 Billion - $250 Billion (%) | Assets $1 Billion - $10 Billion (%) | Assets $100 Million - $1 Billion (%) | Assets $100 Million (%) |
| 2007 Q1 | 0.47 | 1.23 | 0.92 | 1.29 | 2.02 |
| 2007 Q2 | 0.35 | 1.09 | 1.01 | 1.25 | 2.10 |
| 2007 Q3 | 0.45 | 1.33 | 1.14 | 1.44 | 2.15 |
| 2007 Q4 | 0.42 | 2.01 | 1.30 | 1.55 | 2.28 |
| 2008 Q1 | 1.08 | 2.20 | 1.40 | 1.84 | 2.54 |
| 2008 Q2 | 1.16 | 2.18 | 1.55 | 1.95 | 2.65 |
| 2008 Q3 | 1.50 | 2.11 | 1.67 | 2.10 | 2.86 |
| 2008 Q4 | 2.45 | 2.66 | 2.21 | 2.63 | 3.29 |
| 2009 Q1 | 3.94 | 3.88 | 2.92 | 3.29 | 3.93 |
| 2009 Q2 | 5.34 | 4.39 | 3.16 | 3.43 | 4.28 |
| 2009 Q3 | 6.55 | 5.24 | 3.69 | 3.77 | 3.98 |
| 2009 Q4 | 7.72 | 5.58 | 3.78 | 4.18 | 4.57 |
| 2010 Q1 | 7.97 | 6.11 | 4.42 | 4.62 | 4.64 |
| 2010 Q2 | 7.29 | 5.74 | 4.90 | 4.32 | 4.54 |
| 2010 Q3 | 7.28 | 5.19 | 5.24 | 4.36 | 4.52 |
| 2010 Q4 | 7.26 | 4.87 | 4.84 | 4.59 | 4.70 |
| 2011 Q1 | 7.27 | 5.20 | 5.02 | 4.76 | 5.11 |
| 2011 Q2 | 5.78 | 4.90 | 4.34 | 4.59 | 4.85 |
| 2011 Q3 | 5.19 | 4.78 | 4.25 | 4.34 | 5.15 |
| 2011 Q4 | 4.64 | 4.62 | 4.24 | 4.26 | 4.87 |
| 2012 Q1 | 4.62 | 4.58 | 4.85 | 4.49 | 5.40 |
| 2012 Q2 | 3.93 | 4.15 | 4.22 | 3.99 | 4.96 |
| 2012 Q3 | 4.12 | 3.84 | 3.92 | 3.87 | 4.91 |
| 2012 Q4 | 3.09 | 3.50 | 3.59 | 3.64 | 4.68 |
| 2013 Q1 | 2.89 | 3.19 | 3.42 | 3.54 | 4.56 |
| 2013 Q2 | 2.52 | 2.92 | 3.03 | 2.93 | 3.93 |
| 2013 Q3 | 2.15 | 2.50 | 2.70 | 2.63 | 3.98 |
| 2013 Q4 | 1.75 | 2.05 | 2.40 | 2.43 | 3.64 |
| 2014 Q1 | 1.50 | 1.97 | 2.14 | 2.56 | 3.55 |
| 2014 Q2 | 1.30 | 1.71 | 1.82 | 2.22 | 3.42 |
| 2014 Q3 | 1.40 | 1.48 | 1.56 | 2.12 | 3.00 |
| 2014 Q4 | 1.30 | 1.27 | 1.53 | 1.75 | 2.88 |
| 2015 Q1 | 1.06 | 1.16 | 1.38 | 1.69 | 2.94 |
| 2015 Q2 | 0.92 | 0.93 | 1.18 | 1.42 | 2.50 |
| 2015 Q3 | 0.71 | 0.90 | 1.05 | 1.33 | 2.49 |
| 2015 Q4 | 0.55 | 0.85 | 0.89 | 1.29 | 2.14 |
| 2016 Q1 | 0.57 | 0.84 | 0.86 | 1.27 | 2.16 |
| 2016 Q2 | 0.52 | 0.72 | 0.79 | 1.13 | 1.86 |
| 2016 Q3 | 0.58 | 0.67 | 0.76 | 1.07 | 2.06 |
| 2016 Q4 | 0.51 | 0.64 | 0.71 | 1.04 | 1.96 |
| 2017 Q1 | 0.39 | 0.70 | 0.72 | 1.01 | 2.09 |
| 2017 Q2 | 0.39 | 0.63 | 0.65 | 0.91 | 1.99 |
| 2017 Q3 | 0.60 | 0.59 | 0.68 | 0.90 | 1.95 |
| 2017 Q4 | 0.56 | 0.55 | 0.61 | 0.84 | 1.91 |
| 2018 Q1 | 0.53 | 0.56 | 0.71 | 0.96 | 1.91 |
| 2018 Q2 | 0.48 | 0.58 | 0.65 | 0.85 | 1.90 |
| 2018 Q3 | 0.44 | 0.55 | 0.65 | 0.82 | 1.82 |
| 2018 Q4 | 0.55 | 0.48 | 0.70 | 0.79 | 1.92 |
| 2019 Q1 | 0.63 | 0.52 | 0.65 | 0.86 | 2.20 |
| 2019 Q2 | 0.57 | 0.45 | 0.62 | 0.83 | 1.99 |
| 2019 Q3 | 0.61 | 0.41 | 0.63 | 0.82 | 2.00 |
| 2019 Q4 | 0.51 | 0.40 | 0.54 | 0.86 | 2.06 |
| 2020 Q1 | 0.65 | 0.63 | 0.95 | 1.07 | 2.33 |
| 2020 Q2 | 1.02 | 0.81 | 1.00 | 0.98 | 1.83 |
| 2020 Q3 | 1.24 | 1.11 | 0.99 | 0.97 | 1.50 |
| 2020 Q4 | 1.77 | 1.34 | 0.93 | 1.07 | 1.64 |
| 2021 Q1 | 1.46 | 1.22 | 0.94 | 0.99 | 1.66 |
| 2021 Q2 | 1.23 | 1.19 | 0.85 | 0.83 | 1.49 |
| 2021 Q3 | 1.18 | 1.10 | 0.71 | 0.80 | 1.44 |
| 2021 Q4 | 1.08 | 0.92 | 0.62 | 0.68 | 1.15 |
| 2022 Q1 | 1.44 | 0.89 | 0.57 | 0.68 | 1.27 |
| 2022 Q2 | 0.92 | 0.94 | 0.49 | 0.63 | 1.28 |
| 2022 Q3 | 0.80 | 0.79 | 0.43 | 0.58 | 1.06 |
| 2022 Q4 | 1.30 | 0.87 | 0.40 | 0.60 | 1.37 |
| 2023 Q1 | 2.06 | 1.00 | 0.43 | 0.65 | 1.13 |
| 2023 Q2 | 2.40 | 1.05 | 0.46 | 0.62 | 1.35 |
| 2023 Q3 | 3.72 | 1.13 | 0.62 | 0.67 | 1.30 |
| 2023 Q4 | 4.12 | 1.33 | 0.64 | 0.76 | 1.62 |
| 2024 Q1 | 4.48 | 1.45 | 0.69 | 0.95 | 1.90 |
| 2024 Q2 | 4.85 | 1.65 | 0.80 | 0.99 | 1.85 |
| 2024 Q3 | 4.99 | 1.69 | 0.85 | 1.04 | 1.95 |
| 2024 Q4 | 4.75 | 1.74 | 0.83 | 1.09 | 2.07 |
| 2025 Q1 | 4.65 | 1.73 | 0.91 | 1.21 | 1.70 |
| 2025 Q2 | 4.33 | 1.71 | 0.96 | 1.21 | 1.67 |
| 2025 Q3 | 4.18 | 1.69 | 0.96 | 1.33 | 1.64 |
| 2025 Q4 | 4.06 | 1.48 | 1.08 | 1.46 | 2.21 |
| 2026 Q1 | 3.40 | 1.56 | 1.16 | 1.52 | 2.24 |
| 2026 Q2 | 3.08 | 1.31 | 1.10 | 1.48 | 2.10 |
Source: FDIC.
Looking deeper into the CRE portfolio, the elevated PDNA rates of non-owner-occupied property loans eased in the second quarter, particularly among larger institutions. The non-owner-occupied CRE PDNA rate for banks with assets greater than $250 billion declined for the seventh consecutive quarter to 3.08 percent, below the recent peak of 4.99 percent in third quarter 2024 but well above the pre-pandemic average rate of 0.59 percent.2 However, these large banks have lower concentrations of such loans in relation to total assets and capital than smaller banks, mitigating the overall risk. Overall, the industry's volume of PDNA non-owner-occupied CRE loans declined $2.0 billion, or 8.9 percent, from the prior quarter.
Reserve Coverage Ratio (Chart 11)
Download CSVDisplay table
| Quarter | Allowance for Credit Losses ($ Bil) | Noncurrent Loans ($ Bil) | Reserve Coverage Ratio (%) |
| 2006 Q1 | 77.7 | 48.7 | 159.6 |
| 2006 Q2 | 78.0 | 49.3 | 158.3 |
| 2006 Q3 | 77.9 | 52.7 | 147.8 |
| 2006 Q4 | 77.6 | 57.6 | 134.8 |
| 2007 Q1 | 78.5 | 61.4 | 127.9 |
| 2007 Q2 | 81.2 | 68.0 | 119.5 |
| 2007 Q3 | 87.1 | 83.3 | 104.5 |
| 2007 Q4 | 102.7 | 112.1 | 91.7 |
| 2008 Q1 | 121.2 | 138.1 | 87.8 |
| 2008 Q2 | 144.5 | 167.1 | 86.5 |
| 2008 Q3 | 155.2 | 185.6 | 83.6 |
| 2008 Q4 | 173.4 | 231.2 | 75.0 |
| 2009 Q1 | 194.3 | 291.9 | 66.6 |
| 2009 Q2 | 211.2 | 331.9 | 63.6 |
| 2009 Q3 | 220.5 | 367.6 | 60.0 |
| 2009 Q4 | 228.6 | 396.0 | 57.7 |
| 2010 Q1 | 263.2 | 410.0 | 64.2 |
| 2010 Q2 | 251.6 | 386.8 | 65.0 |
| 2010 Q3 | 242.0 | 377.3 | 64.1 |
| 2010 Q4 | 231.4 | 359.0 | 64.5 |
| 2011 Q1 | 218.5 | 341.9 | 63.9 |
| 2011 Q2 | 207.7 | 321.2 | 64.7 |
| 2011 Q3 | 197.3 | 314.3 | 62.8 |
| 2011 Q4 | 191.3 | 313.7 | 61.0 |
| 2012 Q1 | 183.2 | 305.2 | 60.0 |
| 2012 Q2 | 176.6 | 293.2 | 60.2 |
| 2012 Q3 | 167.0 | 293.1 | 57.0 |
| 2012 Q4 | 162.1 | 276.9 | 58.5 |
| 2013 Q1 | 155.5 | 261.2 | 59.5 |
| 2013 Q2 | 149.1 | 239.4 | 62.3 |
| 2013 Q3 | 142.6 | 221.2 | 64.5 |
| 2013 Q4 | 135.9 | 207.3 | 65.6 |
| 2014 Q1 | 132.3 | 195.2 | 67.8 |
| 2014 Q2 | 128.2 | 181.6 | 70.6 |
| 2014 Q3 | 125.3 | 171.9 | 72.9 |
| 2014 Q4 | 122.6 | 162.7 | 75.4 |
| 2015 Q1 | 121.1 | 153.0 | 79.1 |
| 2015 Q2 | 119.6 | 144.7 | 82.7 |
| 2015 Q3 | 118.6 | 139.2 | 85.2 |
| 2015 Q4 | 118.6 | 137.9 | 86.0 |
| 2016 Q1 | 120.7 | 141.2 | 85.5 |
| 2016 Q2 | 121.7 | 136.4 | 89.2 |
| 2016 Q3 | 122.1 | 134.0 | 91.1 |
| 2016 Q4 | 121.7 | 132.0 | 92.2 |
| 2017 Q1 | 121.8 | 125.0 | 97.5 |
| 2017 Q2 | 121.4 | 116.5 | 104.2 |
| 2017 Q3 | 123.5 | 114.8 | 107.5 |
| 2017 Q4 | 123.8 | 116.4 | 106.3 |
| 2018 Q1 | 123.7 | 112.5 | 110.0 |
| 2018 Q2 | 123.4 | 104.8 | 117.7 |
| 2018 Q3 | 123.7 | 101.3 | 122.2 |
| 2018 Q4 | 124.7 | 100.3 | 124.4 |
| 2019 Q1 | 125.2 | 100.6 | 124.5 |
| 2019 Q2 | 124.9 | 95.9 | 130.3 |
| 2019 Q3 | 125.2 | 95.5 | 131.0 |
| 2019 Q4 | 123.9 | 95.4 | 129.9 |
| 2020 Q1 | 196.4 | 102.4 | 191.8 |
| 2020 Q2 | 242.7 | 118.3 | 205.3 |
| 2020 Q3 | 244.3 | 127.2 | 192.1 |
| 2020 Q4 | 236.6 | 128.8 | 183.7 |
| 2021 Q1 | 214.3 | 122.9 | 174.3 |
| 2021 Q2 | 195.2 | 109.7 | 177.9 |
| 2021 Q3 | 185.1 | 102.7 | 180.1 |
| 2021 Q4 | 178.2 | 99.7 | 178.7 |
| 2022 Q1 | 175.5 | 95.2 | 184.4 |
| 2022 Q2 | 179.3 | 88.0 | 203.7 |
| 2022 Q3 | 185.6 | 86.4 | 214.9 |
| 2022 Q4 | 195.4 | 89.9 | 217.4 |
| 2023 Q1 | 202.2 | 92.2 | 219.2 |
| 2023 Q2 | 209.0 | 93.0 | 224.7 |
| 2023 Q3 | 213.1 | 101.5 | 209.9 |
| 2023 Q4 | 218.0 | 107.1 | 203.5 |
| 2024 Q1 | 218.7 | 113.4 | 192.9 |
| 2024 Q2 | 220.6 | 113.5 | 194.3 |
| 2024 Q3 | 222.7 | 120.5 | 184.8 |
| 2024 Q4 | 222.9 | 125.3 | 177.9 |
| 2025 Q1 | 223.6 | 125.9 | 177.6 |
| 2025 Q2 | 224.3 | 125.0 | 179.4 |
| 2025 Q3 | 224.5 | 125.8 | 178.4 |
| 2025 Q4 | 222.4 | 129.9 | 171.2 |
| 2026 Q1 | 224.0 | 134.3 | 166.8 |
| 2026 Q2 | 223.9 | 129.7 | 172.7 |
Source: FDIC.
Note: The reserve coverage ratio is the allowance for credit losses to noncurrent loans and leases. The term "noncurrent loans" is used to describe loans that are 90 or more days past-due or on nonaccrual status.
Chart 11 shows that the reserve coverage ratio increased to 172.7 percent in the quarter as noncurrent loans decreased. The allowance for credit losses remained fairly unchanged at $223.9 billion (down $153.5 million, or 0.1 percent).
The reserve coverage ratio at community banks declined to 145.6 percent, driven by an increase in noncurrent loans that exceeded the increase in allowance for credit losses, in contrast with the broader industry.
Quarterly Change in Asset Funding (Chart 12)
Download CSVDisplay table
| Quarter | Nondeposit Liabilities ($ Bil) | Domestic Deposits ($ Bil) |
| 2006 Q1 | 108.4 | 110.3 |
| 2006 Q2 | 110.0 | 105.8 |
| 2006 Q3 | 114.6 | 37.4 |
| 2006 Q4 | -163.6 | 157.1 |
| 2007 Q1 | 30.7 | 63.9 |
| 2007 Q2 | 127.2 | -3.1 |
| 2007 Q3 | 252.1 | 47.8 |
| 2007 Q4 | 72.4 | 173.0 |
| 2008 Q1 | 171.5 | 156.2 |
| 2008 Q2 | -66.1 | -39.8 |
| 2008 Q3 | 140.1 | 186.1 |
| 2008 Q4 | -23.8 | 274.6 |
| 2009 Q1 | -298.1 | 49.1 |
| 2009 Q2 | -337.3 | 16.2 |
| 2009 Q3 | -174.8 | -1.9 |
| 2009 Q4 | -267.3 | 143.5 |
| 2010 Q1 | 262.7 | -4.3 |
| 2010 Q2 | -105.3 | -24.6 |
| 2010 Q3 | 12.0 | 70.4 |
| 2010 Q4 | -200.4 | 135.0 |
| 2011 Q1 | -101.1 | 118.1 |
| 2011 Q2 | -1.9 | 234.5 |
| 2011 Q3 | -48.5 | 279.6 |
| 2011 Q4 | -97.3 | 252.5 |
| 2012 Q1 | -58.5 | 67.8 |
| 2012 Q2 | 23.6 | 88.0 |
| 2012 Q3 | -20.2 | 146.5 |
| 2012 Q4 | -77.0 | 386.8 |
| 2013 Q1 | -41.0 | -20.3 |
| 2013 Q2 | 43.2 | -31.1 |
| 2013 Q3 | -67.8 | 205.3 |
| 2013 Q4 | -53.7 | 190.2 |
| 2014 Q1 | 26.5 | 131.1 |
| 2014 Q2 | 55.6 | 136.6 |
| 2014 Q3 | 59.0 | 114.0 |
| 2014 Q4 | 23.5 | 197.7 |
| 2015 Q1 | -0.8 | 210.2 |
| 2015 Q2 | -2.5 | 9.0 |
| 2015 Q3 | -32.9 | 62.2 |
| 2015 Q4 | -35.9 | 256.1 |
| 2016 Q1 | 47.1 | 200.3 |
| 2016 Q2 | 111.7 | 95.8 |
| 2016 Q3 | -54.3 | 258.6 |
| 2016 Q4 | -65.2 | 186.3 |
| 2017 Q1 | -30.8 | 163.8 |
| 2017 Q2 | 40.8 | -32.1 |
| 2017 Q3 | 41.8 | 139.2 |
| 2017 Q4 | -9.6 | 161.6 |
| 2018 Q1 | -24.2 | 175.4 |
| 2018 Q2 | 46.4 | -21.5 |
| 2018 Q3 | 21.5 | 86.4 |
| 2018 Q4 | -47.7 | 291.1 |
| 2019 Q1 | 50.6 | 72.0 |
| 2019 Q2 | 23.7 | 62.7 |
| 2019 Q3 | -24.9 | 233.4 |
| 2019 Q4 | -107.5 | 239.5 |
| 2020 Q1 | 362.5 | 1,086.9 |
| 2020 Q2 | -331.0 | 1,212.4 |
| 2020 Q3 | -122.4 | 151.9 |
| 2020 Q4 | -87.0 | 618.0 |
| 2021 Q1 | 16.8 | 646.1 |
| 2021 Q2 | -99.7 | 228.2 |
| 2021 Q3 | 7.7 | 470.1 |
| 2021 Q4 | -84.9 | 555.4 |
| 2022 Q1 | 123.0 | 191.5 |
| 2022 Q2 | 153.2 | -303.8 |
| 2022 Q3 | 171.1 | -185.6 |
| 2022 Q4 | 68.9 | -165.8 |
| 2023 Q1 | 536.0 | -421.3 |
| 2023 Q2 | -146.4 | -105.9 |
| 2023 Q3 | 46.0 | -39.7 |
| 2023 Q4 | -51.3 | 186.9 |
| 2024 Q1 | 83.5 | 190.8 |
| 2024 Q2 | 80.7 | -198.2 |
| 2024 Q3 | -16.3 | 194.6 |
| 2024 Q4 | -232.5 | 214.4 |
| 2025 Q1 | 121.3 | 180.9 |
| 2025 Q2 | 193.0 | 101.5 |
| 2025 Q3 | -4.7 | 89.4 |
| 2025 Q4 | -202.4 | 318.5 |
| 2026 Q1 | 393.9 | 390.0 |
| 2026 Q2 | 137.2 | 142.7 |
Source: FDIC.
Chart 12 shows that domestic deposits increased for the eighth consecutive quarter, rising 0.8 percent during the second quarter. Estimated uninsured domestic deposits accounted for all of the increase in domestic deposits from the prior quarter, as insured deposits decreased slightly. The industry's nondeposit liabilities also increased during the quarter, driven by an increase in Federal Home Loan Bank advances and other borrowed money.
Number of Banks on the "Problem Bank List" (Chart 13)
Download CSVDisplay table
| Quarter | Number of Problem Banks | Percentage of Banks |
| 2006 Q1 | 48 | 0.55 |
| 2006 Q2 | 50 | 0.57 |
| 2006 Q3 | 47 | 0.54 |
| 2006 Q4 | 50 | 0.58 |
| 2007 Q1 | 53 | 0.61 |
| 2007 Q2 | 61 | 0.71 |
| 2007 Q3 | 65 | 0.76 |
| 2007 Q4 | 76 | 0.89 |
| 2008 Q1 | 90 | 1.06 |
| 2008 Q2 | 117 | 1.38 |
| 2008 Q3 | 171 | 2.04 |
| 2008 Q4 | 252 | 3.03 |
| 2009 Q1 | 305 | 3.70 |
| 2009 Q2 | 416 | 5.08 |
| 2009 Q3 | 552 | 6.82 |
| 2009 Q4 | 702 | 8.76 |
| 2010 Q1 | 775 | 9.77 |
| 2010 Q2 | 829 | 10.59 |
| 2010 Q3 | 860 | 11.08 |
| 2010 Q4 | 884 | 11.54 |
| 2011 Q1 | 888 | 11.72 |
| 2011 Q2 | 865 | 11.51 |
| 2011 Q3 | 844 | 11.35 |
| 2011 Q4 | 813 | 11.05 |
| 2012 Q1 | 772 | 10.56 |
| 2012 Q2 | 732 | 10.10 |
| 2012 Q3 | 694 | 9.66 |
| 2012 Q4 | 651 | 9.19 |
| 2013 Q1 | 612 | 8.72 |
| 2013 Q2 | 553 | 7.97 |
| 2013 Q3 | 515 | 7.47 |
| 2013 Q4 | 467 | 6.86 |
| 2014 Q1 | 411 | 6.11 |
| 2014 Q2 | 354 | 5.32 |
| 2014 Q3 | 329 | 4.99 |
| 2014 Q4 | 291 | 4.47 |
| 2015 Q1 | 253 | 3.94 |
| 2015 Q2 | 228 | 3.59 |
| 2015 Q3 | 203 | 3.24 |
| 2015 Q4 | 183 | 2.96 |
| 2016 Q1 | 165 | 2.70 |
| 2016 Q2 | 147 | 2.43 |
| 2016 Q3 | 132 | 2.21 |
| 2016 Q4 | 123 | 2.08 |
| 2017 Q1 | 112 | 1.91 |
| 2017 Q2 | 105 | 1.81 |
| 2017 Q3 | 104 | 1.81 |
| 2017 Q4 | 95 | 1.68 |
| 2018 Q1 | 92 | 1.64 |
| 2018 Q2 | 82 | 1.48 |
| 2018 Q3 | 71 | 1.30 |
| 2018 Q4 | 60 | 1.11 |
| 2019 Q1 | 59 | 1.10 |
| 2019 Q2 | 56 | 1.06 |
| 2019 Q3 | 55 | 1.05 |
| 2019 Q4 | 51 | 0.99 |
| 2020 Q1 | 54 | 1.06 |
| 2020 Q2 | 52 | 1.03 |
| 2020 Q3 | 56 | 1.11 |
| 2020 Q4 | 56 | 1.12 |
| 2021 Q1 | 55 | 1.10 |
| 2021 Q2 | 51 | 1.03 |
| 2021 Q3 | 46 | 0.94 |
| 2021 Q4 | 44 | 0.91 |
| 2022 Q1 | 40 | 0.83 |
| 2022 Q2 | 40 | 0.84 |
| 2022 Q3 | 42 | 0.88 |
| 2022 Q4 | 39 | 0.83 |
| 2023 Q1 | 43 | 0.92 |
| 2023 Q2 | 43 | 0.93 |
| 2023 Q3 | 44 | 0.95 |
| 2023 Q4 | 52 | 1.13 |
| 2024 Q1 | 63 | 1.38 |
| 2024 Q2 | 66 | 1.45 |
| 2024 Q3 | 68 | 1.51 |
| 2024 Q4 | 66 | 1.47 |
| 2025 Q1 | 63 | 1.41 |
| 2025 Q2 | 59 | 1.33 |
| 2025 Q3 | 57 | 1.30 |
| 2025 Q4 | 60 | 1.38 |
| 2026 Q1 | 54 | 1.26 |
| 2026 Q2 | 47 | 1.11 |
Source: FDIC.
Chart 13 shows the number and percentage of banks on the FDIC's "Problem Bank List." Banks on this list have a CAMELS composite rating of "4" or "5." The number of banks on the list declined by a net of seven in the second quarter to 47 banks. The number of problem banks was 1.1 percent of total banks, which is in the normal range of 1 to 2 percent for non-crisis periods. Four banks opened and one bank failed during the second quarter.
Deposit Insurance Fund (DIF) Reserve Ratio and Balance (Chart 14)
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| Quarter | DIF Reserve Ratio (%) | DIF Balance ($ Bil) |
| 2006 Q1 | 1.23 | 49.2 |
| 2006 Q2 | 1.23 | 49.6 |
| 2006 Q3 | 1.22 | 50.0 |
| 2006 Q4 | 1.21 | 50.2 |
| 2007 Q1 | 1.20 | 50.7 |
| 2007 Q2 | 1.21 | 51.2 |
| 2007 Q3 | 1.22 | 51.8 |
| 2007 Q4 | 1.22 | 52.4 |
| 2008 Q1 | 1.19 | 52.8 |
| 2008 Q2 | 1.01 | 45.2 |
| 2008 Q3 | 0.76 | 34.6 |
| 2008 Q4 | 0.36 | 17.3 |
| 2009 Q1 | 0.27 | 13.0 |
| 2009 Q2 | 0.22 | 10.4 |
| 2009 Q3 | -0.16 | -8.2 |
| 2009 Q4 | -0.39 | -20.9 |
| 2010 Q1 | -0.38 | -20.7 |
| 2010 Q2 | -0.28 | -15.2 |
| 2010 Q3 | -0.15 | -8.0 |
| 2010 Q4 | -0.12 | -7.4 |
| 2011 Q1 | -0.02 | -1.0 |
| 2011 Q2 | 0.06 | 3.9 |
| 2011 Q3 | 0.12 | 7.8 |
| 2011 Q4 | 0.17 | 11.8 |
| 2012 Q1 | 0.22 | 15.3 |
| 2012 Q2 | 0.32 | 22.7 |
| 2012 Q3 | 0.35 | 25.2 |
| 2012 Q4 | 0.45 | 33.0 |
| 2013 Q1 | 0.60 | 35.7 |
| 2013 Q2 | 0.64 | 37.9 |
| 2013 Q3 | 0.68 | 40.8 |
| 2013 Q4 | 0.79 | 47.2 |
| 2014 Q1 | 0.80 | 48.9 |
| 2014 Q2 | 0.84 | 51.1 |
| 2014 Q3 | 0.89 | 54.3 |
| 2014 Q4 | 1.01 | 62.8 |
| 2015 Q1 | 1.03 | 65.3 |
| 2015 Q2 | 1.07 | 67.6 |
| 2015 Q3 | 1.09 | 70.1 |
| 2015 Q4 | 1.11 | 72.6 |
| 2016 Q1 | 1.13 | 75.1 |
| 2016 Q2 | 1.17 | 77.9 |
| 2016 Q3 | 1.18 | 80.7 |
| 2016 Q4 | 1.20 | 83.2 |
| 2017 Q1 | 1.20 | 84.9 |
| 2017 Q2 | 1.24 | 87.6 |
| 2017 Q3 | 1.27 | 90.5 |
| 2017 Q4 | 1.30 | 92.7 |
| 2018 Q1 | 1.30 | 95.1 |
| 2018 Q2 | 1.33 | 97.6 |
| 2018 Q3 | 1.36 | 100.2 |
| 2018 Q4 | 1.37 | 102.6 |
| 2019 Q1 | 1.36 | 104.9 |
| 2019 Q2 | 1.40 | 107.4 |
| 2019 Q3 | 1.41 | 108.9 |
| 2019 Q4 | 1.41 | 110.3 |
| 2020 Q1 | 1.39 | 113.2 |
| 2020 Q2 | 1.30 | 114.7 |
| 2020 Q3 | 1.31 | 116.4 |
| 2020 Q4 | 1.30 | 117.9 |
| 2021 Q1 | 1.26 | 119.4 |
| 2021 Q2 | 1.27 | 120.5 |
| 2021 Q3 | 1.25 | 121.9 |
| 2021 Q4 | 1.24 | 123.1 |
| 2022 Q1 | 1.21 | 123.0 |
| 2022 Q2 | 1.23 | 124.5 |
| 2022 Q3 | 1.23 | 125.5 |
| 2022 Q4 | 1.25 | 128.2 |
| 2023 Q1 | 1.11 | 116.1 |
| 2023 Q2 | 1.11 | 117.0 |
| 2023 Q3 | 1.13 | 119.3 |
| 2023 Q4 | 1.15 | 121.8 |
| 2024 Q1 | 1.17 | 125.3 |
| 2024 Q2 | 1.21 | 129.2 |
| 2024 Q3 | 1.25 | 133.1 |
| 2024 Q4 | 1.28 | 137.1 |
| 2025 Q1 | 1.31 | 140.9 |
| 2025 Q2 | 1.36 | 145.3 |
| 2025 Q3 | 1.40 | 150.1 |
| 2025 Q4 | 1.42 | 153.9 |
| 2026 Q1 | 1.43 | 157.4 |
| 2026 Q2 | 1.48 | 161.1 |
Source: FDIC.
Note: The reserve ratio is calculated as the ratio of the DIF to insured deposits and is calculated as of quarter end.
Chart 14 shows that the balance of the Deposit Insurance Fund (DIF) was $161.1 billion on June 30, 2026, up $3.7 billion from the first quarter. Assessment revenue continued to be the primary driver of the increase, adding $2.9 billion to the DIF balance, followed by $1.3 billion in interest earned on investment securities. Growth in the DIF in the quarter was partially offset by unrealized losses on available-for-sale securities of $239 million and operating expenses of $506 million.
Estimated insured deposits decreased 1.0 percent during the second quarter but were 1.8 percent higher than the year-ago quarter. The reserve ratio, which is calculated as the ratio of the DIF to estimated insured deposits, increased 5 basis points in the second quarter to 1.48 percent and was 12 basis points higher than the year-ago quarter.
In conclusion, the banking industry continued to show resilience in second quarter 2026. The industry saw robust loan and deposit growth during the quarter. Strong capital and liquidity levels continued to support lending and protect against potential losses. However, the industry still faces weakness in certain loan portfolios and elevated unrealized losses. These issues will remain matters of ongoing supervisory attention by the FDIC.
| 1 | In this statement, the terms "past-due and nonaccrual" or "PDNA" are used to describe loans that are 30 or more days past-due or on nonaccrual status. |
| 2 | The period used to calculate pre-pandemic averages is first quarter 2015 through fourth quarter 2019. |
FDIC - Federal Deposit Insurance Corporation published this content on August 25, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 25, 2026 at 14:15 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]