FDIC Quarterly Banking Profile
First Quarter 2019 Quarterly Banking Profile
Good morning, and welcome to our release of first quarter 2019
performance results for FDIC-insured institutions.
This was another positive quarter for the banking industry. Quarterly net
income improved from a year ago, led by higher net interest income. Net
interest margins widened, asset quality indicators remained stable, and the
number of “problem banks” remains low.
Community banks also reported another positive quarter. Net income at
community banks benefited from higher net interest income and lower
provision expenses, and the annual rate of loan growth at community
banks was stronger than the overall industry.
In July, this economic expansion will be the longest on record in the United
States. As a result, the nation’s banks are strong.
With the recent stabilization of interest rates, new challenges for banks in
lending and funding may emerge. The competition to attract deposit and
loan customers is strong, and therefore, banks need to maintain rigorous
underwriting standards and prudent risk management.
First Quarter 2019 Quarterly Banking Profile
Good morning, and welcome to our release of first quarter 2019
performance results for FDIC-insured institutions.
This was another positive quarter for the banking industry. Quarterly net
income improved from a year ago, led by higher net interest income. Net
interest margins widened, asset quality indicators remained stable, and the
number of “problem banks” remains low.
Community banks also reported another positive quarter. Net income at
community banks benefited from higher net interest income and lower
provision expenses, and the annual rate of loan growth at community
banks was stronger than the overall industry.
In July, this economic expansion will be the longest on record in the United
States. As a result, the nation’s banks are strong.
With the recent stabilization of interest rates, new challenges for banks in
lending and funding may emerge. The competition to attract deposit and
loan customers is strong, and therefore, banks need to maintain rigorous
underwriting standards and prudent risk management.
First Quarter 2019 Quarterly Banking Profile Opening Statement
2
These factors have increased banks’ exposure to interest rate, liquidity,
and credit risk. Attention to these risks will position banks to be more
resilient in sustaining lending through the downside of an 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 Doreen Eberley, Director of the Division of Risk
Management Supervision, to help provide details about bank performance
during the first quarter.
Diane, I will turn this over to you. Thank you.
2
These factors have increased banks’ exposure to interest rate, liquidity,
and credit risk. Attention to these risks will position banks to be more
resilient in sustaining lending through the downside of an 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 Doreen Eberley, Director of the Division of Risk
Management Supervision, to help provide details about bank performance
during the first quarter.
Diane, I will turn this over to you. Thank you.