By Daniel Meade

Partner | Financial Regulation

The Federal Deposit Insurance Corporation (“FDIC”) yesterday issued the latest Quarterly Banking Profile (“QBP”) for the first quarter of 2023. 

The headline results of the QBP were:

• Net Income ($79.8 billion) Increased from the Prior Quarter, Led By Higher Noninterest Income
• The Net Interest Margin Declined Quarter Over Quarter to 3.31 Percent
• Unrealized Losses on Securities Declined for a Second Consecutive Quarter
• Loan Balances Declined Modestly from Last Quarter, But Grew from a Year Ago
• Total Deposits Declined for a Fourth Consecutive Quarter
• Asset Quality Metrics Remained Favorable Despite Modest Deterioration
• Community Banks Reported Lower Net Income from the Prior Quarter
• The Reserve Ratio for the Deposit Insurance Fund Declined to 1.11%

FDIC Chairman Martin Gruenberg, commenting on the QBP, said: “[t]he banking industry has proven to be quite resilient during this period of stress. Net income still remains high in relation to historical measures, asset quality metrics remain favorable, and the industry remains well capitalized. However, the industry continues to face significant downside risks from the effects of inflation, rising market interest rates, slowing economic growth, and geopolitical uncertainty.”