Remarks by FDIC Chairman Jelena McWilliams and
Director of the Division of Insurance and Research Diane Ellis on the
Third Quarter 2019 Quarterly Banking Profile
Good morning, and welcome to our release of third quarter 2019
performance results for FDIC-insured institutions.
Overall, the banking industry reported positive results, despite non-
recurring events at three large institutions. While these events resulted in a
modest decline in aggregate quarterly net income, the industry reported
loan growth and the number of problem banks remained low.
Community banks also reported another positive quarter. Net income rose
at community banks primarily because of higher net operating revenue.
Additionally, the annual rate of loan growth at community banks outpaced
the overall industry.
The record-long economic expansion continued in the United States. With
two reductions in short-term rates and a flat yield curve this quarter,
challenges in lending and funding continued. The competition to attract
and maintain loan customers and depositors remains strong; consequently,
Director of the Division of Insurance and Research Diane Ellis on the
Third Quarter 2019 Quarterly Banking Profile
Good morning, and welcome to our release of third quarter 2019
performance results for FDIC-insured institutions.
Overall, the banking industry reported positive results, despite non-
recurring events at three large institutions. While these events resulted in a
modest decline in aggregate quarterly net income, the industry reported
loan growth and the number of problem banks remained low.
Community banks also reported another positive quarter. Net income rose
at community banks primarily because of higher net operating revenue.
Additionally, the annual rate of loan growth at community banks outpaced
the overall industry.
The record-long economic expansion continued in the United States. With
two reductions in short-term rates and a flat yield curve this quarter,
challenges in lending and funding continued. The competition to attract
and maintain loan customers and depositors remains strong; consequently,
Third Quarter 2019 Quarterly Banking Profile Opening Statement
2
banks need to maintain rigorous underwriting standards and prudent risk
management.
Awareness of interest rate, liquidity, and credit risks at this stage of the
economic cycle will position banks to be more resilient in maintaining
lending through the economic cycle.
I am joined here today by Diane Ellis, Director of the Division of Insurance
and Research; Pat Mitchell, Deputy Director of the Division of Insurance
and Research; and Jim Watkins, Senior Deputy Director of the Division of
Risk Management Supervision, to discuss bank performance during the
third quarter.
Diane, I will turn this over to you. Thank you.
2
banks need to maintain rigorous underwriting standards and prudent risk
management.
Awareness of interest rate, liquidity, and credit risks at this stage of the
economic cycle will position banks to be more resilient in maintaining
lending through the economic cycle.
I am joined here today by Diane Ellis, Director of the Division of Insurance
and Research; Pat Mitchell, Deputy Director of the Division of Insurance
and Research; and Jim Watkins, Senior Deputy Director of the Division of
Risk Management Supervision, to discuss bank performance during the
third quarter.
Diane, I will turn this over to you. Thank you.