PRESS RELEASE
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
September 2m 2015
Media Contact:
Barbara Hagenbaugh
(202) 898-6993
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-71-2015
FDIC-Insured Institutions Earn $43 Billion in Second Quarter 2015
FOR IMMEDIATE RELEASE
Community Bank Earnings Rise 12 Percent to $5.3 Billion
• Net Operating Revenue of $172.9 Billion is 2.1 Percent Higher Than a Year Ago
• Asset Quality Indicators Show Further Improvement
• Net Interest Margins Remain Under Pressure
"The banking industry — and community banks in particular — had another
positive quarter, but challenges remain."
-- FDIC Chairman Martin J. Gruenberg
Commercial banks and savings institutions insured by the Federal Deposit Insurance
Corporation (FDIC) reported aggregate net income of $43.0 billion in the second quarter
of 2015, up $2.9 billion (7.3 percent) from a year earlier and the highest quarterly
income on record. The increase in earnings was mainly attributable to a $3.6 billion rise
in net operating revenue (net interest income plus total noninterest income). Financial
results for the second quarter of 2015 are included in the FDIC's latest Quarterly
Banking Profile released today.
Of the 6,348 insured institutions in the second quarter of 2015, more than half (58.7
percent) reported year-over-year growth in quarterly earnings. The proportion of banks
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
September 2m 2015
Media Contact:
Barbara Hagenbaugh
(202) 898-6993
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-71-2015
FDIC-Insured Institutions Earn $43 Billion in Second Quarter 2015
FOR IMMEDIATE RELEASE
Community Bank Earnings Rise 12 Percent to $5.3 Billion
• Net Operating Revenue of $172.9 Billion is 2.1 Percent Higher Than a Year Ago
• Asset Quality Indicators Show Further Improvement
• Net Interest Margins Remain Under Pressure
"The banking industry — and community banks in particular — had another
positive quarter, but challenges remain."
-- FDIC Chairman Martin J. Gruenberg
Commercial banks and savings institutions insured by the Federal Deposit Insurance
Corporation (FDIC) reported aggregate net income of $43.0 billion in the second quarter
of 2015, up $2.9 billion (7.3 percent) from a year earlier and the highest quarterly
income on record. The increase in earnings was mainly attributable to a $3.6 billion rise
in net operating revenue (net interest income plus total noninterest income). Financial
results for the second quarter of 2015 are included in the FDIC's latest Quarterly
Banking Profile released today.
Of the 6,348 insured institutions in the second quarter of 2015, more than half (58.7
percent) reported year-over-year growth in quarterly earnings. The proportion of banks
that were unprofitable during the second quarter fell from 6.8 percent a year earlier to
5.6 percent, the lowest since the first quarter of 2005.
"Bankers generally reported another quarter of higher earnings, improved asset quality,
and increased lending," Gruenberg said. "There were fewer problem banks, and only
one bank failed during the second quarter.
"However," he continued, "the low interest-rate environment remains a challenge. Many
institutions have responded by acquiring higher-yielding, longer-term assets, but this
has left banks more vulnerable to rising interest rates and that is a matter of ongoing
supervisory attention."
Highlights from the Second Quarter 2015 Quarterly Banking Profile
Net Operating Revenue of $172.9 Billion is 2.1 Percent Higher Than a Year
Ago: Loan growth helped lift revenue at most banks, as net interest income rose $2.4
billion (2.3 percent) compared to the second quarter of 2014. Noninterest income was
$1.2 billion (1.9 percent) higher as servicing income increased $1.8 billion (63.9
percent) and trading income fell $904 million (14.1 percent).
Community Bank Earnings Rise 12 Percent: The 5,881 insured institutions identified
as community banks reported $5.3 billion in net income in the second quarter, an
increase of 12 percent from the second quarter of 2014. Net operating revenue of $22.3
billion at community banks was $1.6 billion (8.0 percent) higher than a year earlier.
Asset Quality Indicators Show Further Improvement: Net loan losses declined year-
over-year for the 20th consecutive quarter, while noncurrent loan balances declined for a
21st consecutive quarter. Quarterly net charge-offs were $1.1 billion (11.2 percent) lower
than a year earlier. The annualized net charge-off rate fell to 0.42 percent from 0.50
5.6 percent, the lowest since the first quarter of 2005.
"Bankers generally reported another quarter of higher earnings, improved asset quality,
and increased lending," Gruenberg said. "There were fewer problem banks, and only
one bank failed during the second quarter.
"However," he continued, "the low interest-rate environment remains a challenge. Many
institutions have responded by acquiring higher-yielding, longer-term assets, but this
has left banks more vulnerable to rising interest rates and that is a matter of ongoing
supervisory attention."
Highlights from the Second Quarter 2015 Quarterly Banking Profile
Net Operating Revenue of $172.9 Billion is 2.1 Percent Higher Than a Year
Ago: Loan growth helped lift revenue at most banks, as net interest income rose $2.4
billion (2.3 percent) compared to the second quarter of 2014. Noninterest income was
$1.2 billion (1.9 percent) higher as servicing income increased $1.8 billion (63.9
percent) and trading income fell $904 million (14.1 percent).
Community Bank Earnings Rise 12 Percent: The 5,881 insured institutions identified
as community banks reported $5.3 billion in net income in the second quarter, an
increase of 12 percent from the second quarter of 2014. Net operating revenue of $22.3
billion at community banks was $1.6 billion (8.0 percent) higher than a year earlier.
Asset Quality Indicators Show Further Improvement: Net loan losses declined year-
over-year for the 20th consecutive quarter, while noncurrent loan balances declined for a
21st consecutive quarter. Quarterly net charge-offs were $1.1 billion (11.2 percent) lower
than a year earlier. The annualized net charge-off rate fell to 0.42 percent from 0.50