WASHINGTON — The FDIC is reporting that its insured banks and savings institutions reported higher earnings and continued strong capital and liquidity levels during the first quarter of 2026.
In its latest Quarterly Banking Profile, the FDIC said the nation’s 4,278 insured commercial banks and savings institutions posted aggregate net income of $80.5 billion during the quarter, up $2.8 billion, or 3.6%, from the previous quarter.
The industry’s return on assets ratio was 1.26%.
The FDIC said the banking sector continued to maintain strong capital and liquidity positions that support lending activity and provide protection against potential losses.
The Findings
Among the report’s additional findings:
- Net income at community banks increased 3.9% from the prior quarter.
- The industry’s net interest margin declined eight basis points to 3.31% as earning asset yields fell faster than funding costs.
- Domestic deposits increased 2.1%, marking the seventh consecutive quarterly increase
- Loan balances grew 1.6% from the prior quarter, while annual loan growth accelerated to 7.1%
- Asset quality metrics remained generally favorable, though some commercial real estate and consumer loan portfolios continued to show elevated delinquency rates
- The reserve ratio for the Deposit Insurance Fund increased 1 basis point to 1.43%.
The FDIC said the report is based on financial data submitted by insured institutions for the quarter ended March 31, 2026.
