FDIC Reports Bank Return on Assets Approaches Highest Level Since 1984

FDIC-insured commercial banks and savings institutions reported a return on assets ratio of 1.37% in the second quarter, marking one of the best results since 1984, Federal Deposit Insurance Corporation (FDIC) Chairman Travis Hill said Tuesday (Aug. 25).

Speaking during a press briefing about the FDIC’s latest Quarterly Banking Profile, Hill said: “This was another very strong quarter for the banking sector. We had solid earnings this quarter, once again. Return on assets of 1.37% was close to the record high since 1984 of 1.41%.”

The Quarterly Banking Profile summarizes financial results reported by 4,238 FDIC-insured institutions, according to a Tuesday press release.

These institutions reported an aggregate net income of $98.1 billion in the second quarter, which was 12% higher than the previous quarter, according to the release.

During the press briefing, Hill also highlighted the loan growth reported by these institutions during the second quarter.

Loan growth was 1.8% higher than the previous quarter and 6.8% higher than the second quarter of 2025, according to the FDIC’s press release.

Hill said the loan growth was “very strong” and “widespread across categories.”

“This is now several quarters of very robust loan growth after previously tepid loan growth, which I think overall is indicative of strong economic conditions in the country,” Hill said during the press briefing.

The Quarterly Banking Profile also found that during the second quarter, compared to the first, industry net interest margin increased 1 basis point to 3.32%, domestic deposits grew 0.8% and asset quality metrics improved, with both the past-due and nonaccrual and net charge-off rates declining from the prior quarter, per the release.

In addition, the FDIC’s Deposit Insurance Fund reserve ratio increased 5 basis points to 1.48%, according to the release.

The number of banks on the FDIC’s Problem Bank List declined by a net of seven in the second quarter, falling to a total of 47 banks. That number was 1.1% of total banks, which is within the normal range of 1% to 2% for non-crisis periods, according to a statement released Tuesday.

“Credit quality remained favorable,” Hill said during the press briefing. “PDNA [past-due and nonaccrual], net charge-offs and non-current all declined; CRE [commercial real estate] delinquency rates also continued to decline; and we also saw an increase in net interest margin after falling the prior quarter.”

“So, again, in total, another strong quarter for the banking sector,” Hill said.

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