PRESS RELEASE
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
May 27, 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-41-2015
FDIC-Insured Institutions Earn $39.8 Billion in First Quarter 2015
FOR IMMEDIATE RELEASE
Community Bank Earnings Rise 16 Percent to $4.9 Billion
• Net Operating Revenue of $168.4 Billion Is 2.6 Percent Higher Than a Year Ago
• Asset Quality Indicators Show Further Improvement
• Net Interest Margins Remain Under Pressure
_______________________________
"On balance, results from the first quarter reflect an improving banking industry
with stronger community banks."
-- FDIC Chairman Martin J. Gruenberg
_______________________________
Commercial banks and savings institutions insured by the Federal Deposit Insurance
Corporation (FDIC) reported aggregate net income of $39.8 billion in the first quarter of
2015, up $2.6 billion (6.9 percent) from a year earlier. The increase in earnings was
mainly attributable to a $4.3 billion rise in net operating revenue (net interest income
plus total noninterest income). Financial results for the first quarter of 2015 are included
in the FDIC's latest Quarterly Banking Profile released today.
Of the 6,419 insured institutions in the first quarter of 2015, nearly two-thirds (62.7
percent) reported year-over-year growth in quarterly earnings. The proportion of banks
that were unprofitable during the first quarter fell to 5.6 percent from 7.4 percent a year
earlier.
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
May 27, 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-41-2015
FDIC-Insured Institutions Earn $39.8 Billion in First Quarter 2015
FOR IMMEDIATE RELEASE
Community Bank Earnings Rise 16 Percent to $4.9 Billion
• Net Operating Revenue of $168.4 Billion Is 2.6 Percent Higher Than a Year Ago
• Asset Quality Indicators Show Further Improvement
• Net Interest Margins Remain Under Pressure
_______________________________
"On balance, results from the first quarter reflect an improving banking industry
with stronger community banks."
-- FDIC Chairman Martin J. Gruenberg
_______________________________
Commercial banks and savings institutions insured by the Federal Deposit Insurance
Corporation (FDIC) reported aggregate net income of $39.8 billion in the first quarter of
2015, up $2.6 billion (6.9 percent) from a year earlier. The increase in earnings was
mainly attributable to a $4.3 billion rise in net operating revenue (net interest income
plus total noninterest income). Financial results for the first quarter of 2015 are included
in the FDIC's latest Quarterly Banking Profile released today.
Of the 6,419 insured institutions in the first quarter of 2015, nearly two-thirds (62.7
percent) reported year-over-year growth in quarterly earnings. The proportion of banks
that were unprofitable during the first quarter fell to 5.6 percent from 7.4 percent a year
earlier.
"The banking industry continued to show gradual but steady improvement during the
quarter," FDIC Chairman Martin J. Gruenberg said. "Revenue, earnings, and loan
balances were up; asset quality continued to improve; and the number of banks on the
'Problem List' declined to the lowest level in more than six years. Nearly two-thirds of
banks reported higher earnings than a year ago.
"Community banks reported improved performance during the quarter that outpaced the
overall industry, " he said. "Their earnings were up significantly from a year ago, and
their loan growth was appreciably higher than the rest of the industry."
Chairman Gruenberg concluded: "The current interest-rate environment remains
challenging for banks. Revenue growth remains subdued, and net interest margins have
continued to decline. Many institutions have responded by reaching for yield, which is a
matter of ongoing supervisory attention."
Highlights from the First Quarter 2015 Quarterly Banking Profile
Net Operating Revenue of $168.4 Billion Is 2.6 Percent Higher Than a Year
Ago: Stronger loan growth helped lift revenue at most banks, as net interest income
rose $1.5 billion (1.5 percent) compared to the first quarter of 2014. Noninterest income
was $2.8 billion (4.6 percent) higher as trading income increased $1.5 billion (23.9
percent) and income from the sale, securitization, and servicing of 1-4 family residential
real estate loans rose $545 million (15.6 percent).
Quarterly Earnings at Community Banks Rise 16 Percent: The 5,946 insured
institutions identified as community banks reported $4.9 billion in net income in the first
quarter, an increase of 16 percent from the first quarter of 2014. Net operating revenue
quarter," FDIC Chairman Martin J. Gruenberg said. "Revenue, earnings, and loan
balances were up; asset quality continued to improve; and the number of banks on the
'Problem List' declined to the lowest level in more than six years. Nearly two-thirds of
banks reported higher earnings than a year ago.
"Community banks reported improved performance during the quarter that outpaced the
overall industry, " he said. "Their earnings were up significantly from a year ago, and
their loan growth was appreciably higher than the rest of the industry."
Chairman Gruenberg concluded: "The current interest-rate environment remains
challenging for banks. Revenue growth remains subdued, and net interest margins have
continued to decline. Many institutions have responded by reaching for yield, which is a
matter of ongoing supervisory attention."
Highlights from the First Quarter 2015 Quarterly Banking Profile
Net Operating Revenue of $168.4 Billion Is 2.6 Percent Higher Than a Year
Ago: Stronger loan growth helped lift revenue at most banks, as net interest income
rose $1.5 billion (1.5 percent) compared to the first quarter of 2014. Noninterest income
was $2.8 billion (4.6 percent) higher as trading income increased $1.5 billion (23.9
percent) and income from the sale, securitization, and servicing of 1-4 family residential
real estate loans rose $545 million (15.6 percent).
Quarterly Earnings at Community Banks Rise 16 Percent: The 5,946 insured
institutions identified as community banks reported $4.9 billion in net income in the first
quarter, an increase of 16 percent from the first quarter of 2014. Net operating revenue