PRESS RELEASE
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
November 24, 2015
Media Contact:
Barbara Hagenbaugh
(202) 898-6993
Email: mediarequests@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-92-2015
FDIC-Insured Institutions Earn $40.4 Billion in Third Quarter 2015
FOR IMMEDIATE RELEASE
Community Bank Earnings Rise 7.5 Percent to $5.2 Billion
• Net Operating Revenue of $172 Billion Is Nearly Unchanged From a Year Ago
• Noninterest Expenses Are 2.9 Percent Lower
• Banks Continue to Reach for Yield as Net Interest Margins Remain Low
"While the banking industry had another positive quarter, there are signs of
growing interest-rate risk and credit risk that warrant attention."
-- FDIC Chairman Martin J. Gruenberg
Commercial banks and savings institutions insured by the Federal Deposit Insurance
Corporation (FDIC) reported aggregate net income of $40.4 billion in the third quarter of
2015, up $1.9 billion (5.1 percent) from a year earlier. The increase in earnings was
mainly attributable to a $3.2 billion decline in noninterest expenses, as itemized litigation
expenses at large banks were $2.7 billion lower than a year ago. Financial results for
the third quarter of 2015 are included in the FDIC's latest Quarterly Banking
Profile released today.
Of the 6,270 insured institutions reporting third quarter financial results, more than half
(58.9 percent) reported year-over-year growth in quarterly earnings. The proportion of
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
November 24, 2015
Media Contact:
Barbara Hagenbaugh
(202) 898-6993
Email: mediarequests@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-92-2015
FDIC-Insured Institutions Earn $40.4 Billion in Third Quarter 2015
FOR IMMEDIATE RELEASE
Community Bank Earnings Rise 7.5 Percent to $5.2 Billion
• Net Operating Revenue of $172 Billion Is Nearly Unchanged From a Year Ago
• Noninterest Expenses Are 2.9 Percent Lower
• Banks Continue to Reach for Yield as Net Interest Margins Remain Low
"While the banking industry had another positive quarter, there are signs of
growing interest-rate risk and credit risk that warrant attention."
-- FDIC Chairman Martin J. Gruenberg
Commercial banks and savings institutions insured by the Federal Deposit Insurance
Corporation (FDIC) reported aggregate net income of $40.4 billion in the third quarter of
2015, up $1.9 billion (5.1 percent) from a year earlier. The increase in earnings was
mainly attributable to a $3.2 billion decline in noninterest expenses, as itemized litigation
expenses at large banks were $2.7 billion lower than a year ago. Financial results for
the third quarter of 2015 are included in the FDIC's latest Quarterly Banking
Profile released today.
Of the 6,270 insured institutions reporting third quarter financial results, more than half
(58.9 percent) reported year-over-year growth in quarterly earnings. The proportion of
banks that were unprofitable during the third quarter fell to 5 percent, down from 6.6
percent a year earlier and the lowest since the first quarter of 2005.
"Most performance indicators continued to show improvement," Gruenberg
said. "Earnings were up from a year ago, loan portfolios grew, asset quality improved,
the number of problem banks declined, and only one insured institution failed.
"While the banking industry had another positive quarter, there are signs of growing
interest-rate risk and credit risk that warrant attention," he continued. "History tells us
that it is during this phase of the credit cycle when lending decisions are made that
could lead to future losses. Timely attention by banks to address these growing risks will
benefit banks and contribute to the sustainability of the current economic expansion."
Highlights from the Third Quarter 2015 Quarterly Banking Profile
Community Bank Earnings Rise 7.5 Percent: The 5,812 insured institutions identified
as community banks reported $5.2 billion in net income in the third quarter, an increase
of 7.5 percent from the third quarter of 2014. Net operating revenue of $22.4 billion at
community banks was $1.6 billion (7.5 percent) higher than a year earlier.
Net Operating Revenue of $172 Billion Is Nearly Unchanged From a Year
Ago: Loan growth helped lift revenue at most banks, as net interest income rose $1.8
billion (1.7 percent) compared to the third quarter of 2014. Noninterest income was $1.3
billion (2 percent) lower, as servicing income fell $1.8 billion (63.8 percent) and trading
income declined by $284 million (5.1 percent). Total net operating revenue was only 0.3
percent higher than a year ago. While the median revenue growth rate was 3.6 percent,
lower net operating revenue at three of the four largest banks contributed to the low
overall growth rate for the industry.
percent a year earlier and the lowest since the first quarter of 2005.
"Most performance indicators continued to show improvement," Gruenberg
said. "Earnings were up from a year ago, loan portfolios grew, asset quality improved,
the number of problem banks declined, and only one insured institution failed.
"While the banking industry had another positive quarter, there are signs of growing
interest-rate risk and credit risk that warrant attention," he continued. "History tells us
that it is during this phase of the credit cycle when lending decisions are made that
could lead to future losses. Timely attention by banks to address these growing risks will
benefit banks and contribute to the sustainability of the current economic expansion."
Highlights from the Third Quarter 2015 Quarterly Banking Profile
Community Bank Earnings Rise 7.5 Percent: The 5,812 insured institutions identified
as community banks reported $5.2 billion in net income in the third quarter, an increase
of 7.5 percent from the third quarter of 2014. Net operating revenue of $22.4 billion at
community banks was $1.6 billion (7.5 percent) higher than a year earlier.
Net Operating Revenue of $172 Billion Is Nearly Unchanged From a Year
Ago: Loan growth helped lift revenue at most banks, as net interest income rose $1.8
billion (1.7 percent) compared to the third quarter of 2014. Noninterest income was $1.3
billion (2 percent) lower, as servicing income fell $1.8 billion (63.8 percent) and trading
income declined by $284 million (5.1 percent). Total net operating revenue was only 0.3
percent higher than a year ago. While the median revenue growth rate was 3.6 percent,
lower net operating revenue at three of the four largest banks contributed to the low
overall growth rate for the industry.