On August 26, the FDIC released its Second Quarter 2025 Quarterly Banking Profile for FDIC-insured institutions, reporting aggregate net income of $69.9 billion in the second quarter of 2025, a decrease of $677.3 million (1 percent) from the previous quarter. The FDIC attributed the decline primarily to higher provision expenses related to a large bank acquisition. The report noted that loan growth accelerated, and domestic deposits increased for the fourth consecutive quarter.
The FDIC said asset quality metrics remained generally favorable, with past-due and nonaccrual loan rates below pre-pandemic averages and a decrease in the industry’s net charge-off rate. Unrealized losses on securities portfolios declined, and the number of banks on the FDIC’s Problem Bank List fell. The Deposit Insurance Fund reserve ratio also rose above the statutory minimum.
According to the FDIC, while the banking industry continues to demonstrate resilience, challenges persist in certain loan portfolios and in managing unrealized losses. These areas will remain matters of ongoing supervisory attention.
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