FDIC Reports Bank Return on Assets Approaches Highest Level Since 1984

The Federal Deposit Insurance Corporation (FDIC) reported that FDIC-insured commercial banks and savings institutions achieved a return on assets ratio of 1.37% in the second quarter, a figure close to the record high since 1984 of 1.41%, according to FDIC Chairman Travis Hill. Speaking at a press briefing, Hill emphasized that this was one of the strongest quarters for the banking sector, with solid earnings and a 12% increase in net income compared to the previous quarter.

Loan growth, which stood at 1.8% higher than the previous quarter and 6.8% higher than the same period in 2025, was described by Hill as "very strong" and "widespread across categories." Industry net interest margin increased by 1 basis point to 3.32%, domestic deposits grew by 0.8%, and asset quality metrics improved with a decline in past-due, net charge-off, and net charge-off rates.

The FDIC's Deposit Insurance Fund reserve ratio also increased by 5 basis points to 1.48%. Additionally, the number of banks on the FDIC's Problem Bank List decreased by seven, reaching a total of 47 institutions, which is within the normal range of 1% to 2% for non-crisis periods. Hill concluded by stating that the banking sector continues to demonstrate strong performance, with favorable credit quality and declining delinquency rates in commercial real estate.