The banking industry reported a return on assets ratio of 1.16% and aggregate net income of $70.6 billion in the first quarter of 2025, an increase of $3.8 billion, or 5.8%, from the prior quarter, according to the FDIC’s most recent Quarterly Banking Profile released today. An increase in noninterest income drove the quarterly increase in net income.
Quarterly net income for the 4,022 community banks insured by the FDIC totaled $6.8 billion in Q1, an increase of $621 million, or 10%, from Q4 2024, the agency said. Higher net interest income and lower losses on the sale of securities, along with lower provision expenses and noninterest expenses, more than offset lower noninterest income.
Domestic deposits increased $180.9 billion, or 1%, from Q4 2024, rising for a third consecutive quarter, the FDIC said. Savings deposits increased, with declines in small-time deposits partially offsetting the increases. Brokered deposits decreased $14.9 billion, or 1.2%, from the prior quarter, declining for the fifth consecutive quarter. Estimated insured deposits increased in Q1, up $110.5 billion, or 1%.
The Deposit Insurance Fund balance increased $3.8 billion to $140.9 billion. The reserve ratio increased by three basis points during the quarter to 1.3%.
The total number of FDIC-insured institutions declined by 25 to 4,462 during Q1. One bank opened, one bank failed and did not file a Call Report in the prior quarter, one bank was sold to an uninsured institution, and 25 institutions merged with other banks.
ABA: Report shows banking industry’s continued strength
The latest QBP indicates banks are in a position of strength with higher asset levels and diversified loan growth supporting local communities and the broader economy, American Bankers Association Chief Economist Sayee Srinivasan said.
“Deposits grew in the first quarter and banks remained well capitalized,” Srinivasan said. “While asset quality remained solid, banks continued to incrementally build reserves to protect against potential losses. America’s banks are well positioned to continue fueling economic opportunity and job creation going forward.”
