ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Economy

Banks Report Net Income of $25.5B in Q4

February 27, 2018
Reading Time: 2 mins read

FDIC-insured banks and savings institutions earned $25.5 billion in the fourth quarter, down 40.9 percent from the industry’s earnings a year before, the FDIC said today. The year-over-year decline was attributed to one-time effects of the new tax reform law, including the re-evaluation of deferred tax assets and repatriation of income from foreign subsidiaries, the agency said. For 2017, the industry’s net income fell 3.5 percent to $164.8 billion. Absent the effects of tax reform, the FDIC estimated that quarterly net income would have been $42.2 billion, and full-year net income would have been $183.1 billion.

Community banks earned $4.1 billion during the fourth quarter, down 14.2 percent from the same period last year. Community institutions also reported a 7.2 percent increase in net operating revenue, a 9.4 percent increase in net interest income and a decline in noninterest income of 0.6 percent.

“Despite one-time adjustments to net income due to the new tax law, the underlying strength of the industry is undeniable,” said ABA Chief Economist Jim Chessen, noting that loan growth increased across nearly every category as business expanded and consumer confidence increased. Total loan and lease balances increased 1.7 percent during the quarter, with credit card balances increasing 8.8 percent, commercial and industrial loans increasing 1.2 percent and residential mortgage loans increasing 1.1 percent. Year-over-year, loan and lease balances were up 4.5 percent. Net charge-offs increased 8.6 percent from a year ago, while the amount of loans that were 90 or more days past due increased 1.3 percent in the fourth quarter.

The industry’s net interest income totaled $129.5 billion in the fourth quarter, up 8.5 percent from a year ago. The average net interest margin was 3.31 percent, also up from last year. “With nearly $2 trillion in capital, banks remain the safest place to put your money — as demonstrated by a solid 4 percent growth in new deposits,” Chessen said. “Interest rate risk is always top of mind for banks, particularly with the Fed likely to take action again in March to raise rates.”

Meanwhile, the number of institutions on the problem bank list fell to 95—the fewest since 2008—and one de novo bank was added in the fourth quarter. The Deposit Insurance Fund balance rose $2.2 billion during the quarter to total $92.7 as of year-end.

ADVERTISEMENT
Tags: DelinquenciesInterest rate riskQuarterly Banking ProfileTax reform
ShareTweetPin

Author

Monica C. Meinert

Monica C. Meinert

Monica C. Meinert is a senior editor at the ABA Banking Journal and VP for executive communications at the American Bankers Association.

Related Posts

CFPB releases mortgage servicing proposal, overhauls loss mitigation framework

ABA, associations seek clarity about Fannie, Freddie credit scoring change

Mortgage
July 11, 2025

The recent announcement that Fannie Mae and Freddie Mac will expand credit scoring options for mortgages is a promising first step in creating a scoring system to better serve creditworthy Americans, but there remain several questions about how...

ABA Data Bank: Commodity inflation makes Fed’s job harder

ABA DataBank: Copper prices rise on tariff announcement

Economy
July 11, 2025

With the Trump administration announcing a 50% tariff on copper imports starting August 1, copper futures prices surged in response.

ABA donates to Texas flood relief efforts, urges bankers to contribute

FDIC issues regulatory relief guidance for Texas

Compliance and Risk
July 11, 2025

The FDIC released guidance with steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Texas recently affected by severe storms and flooding.

BIS drafts guidance for central banks on AI adoption

BIS releases report on connections between banks and nonbanks

Compliance and Risk
July 11, 2025

Differences between regulations for banks and those for nonbank financial intermediaries may have created incentives to shift business activities to the NBFI sector, so bank supervisors should apply “close scrutiny” to such interactions, according to the report.

Regulators take issue with discrimination definition in proposed appraisal standards

HUD reverses Biden-era policies on appraisal review

Compliance and Risk
July 11, 2025

HUD eliminated several of the core policies adopted by the Property Appraisal and Valuation Equity task force, an interagency group of 13 federal agencies formed during the Biden administration to address alleged discrimination in the appraisal process.

ABA donates to Texas flood relief efforts, urges bankers to contribute

ABA donates to Texas flood relief efforts, urges bankers to contribute

Community Banking
July 10, 2025

ABA will donate $10,000 to Texas Bankers Foundation to assist with immediate disaster response and recovery following the recent catastrophic flooding in Central Texas.

NEWSBYTES

ABA, associations seek clarity about Fannie, Freddie credit scoring change

July 11, 2025

ABA DataBank: Copper prices rise on tariff announcement

July 11, 2025

FDIC issues regulatory relief guidance for Texas

July 11, 2025

SPONSORED CONTENT

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

July 1, 2025
AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025

PODCASTS

Breaking down the bank-related provisions in the big budget bill

July 10, 2025

Podcast: Inside ABA’s new Treasury Check Verification System API

June 25, 2025

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.