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FDIC: U.S. banks reported $79.3 billion in Q3 net income; DIF rises to $150.1 billion
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Summary
The FDIC reported third-quarter 2025 net income of $79.3 billion, driven by higher net interest income and lower provision expense linked to a prior large-bank acquisition; the Deposit Insurance Fund balance rose to $150.1 billion and the reserve ratio increased to 1.4% as of Sept. 30, 2025.
The Federal Deposit Insurance Corporation on Thursday reported that U.S. banks earned $79,300,000,000 in net income in the third quarter of 2025, a $9,400,000,000 (13.5%) increase from the prior quarter, FDIC officials said.
"The banking industry reported quarterly net income of $79,300,000,000, an increase of $9,400,000,000 or 13.5% from the prior quarter," said Andy Felton, director of the FDIC's Division of Insurance and Research, as he walked through the agency's selected charts.
The FDIC attributed the rise in industry earnings primarily to a $7,600,000,000 increase in net interest income and a $1,100,000,000 increase in noninterest income, along with a $9,200,000,000 (30.7%) decline in provision expense that was largely associated with a large acquisition in the prior quarter. Acting Chairman Travis Hill described the quarter as "very solid" and noted industry-wide return on assets rose to 1.27%.
Other key metrics released by the FDIC included a 9-basis-point increase in the industry's average net interest margin to 3.34%; a $58,200,000,000 (14.7%) decline in unrealized losses on securities portfolios to $337,100,000,000—the lowest level since Q1 2022—driven by lower long-term interest rates; and a $159,000,000,000 (1.2%) increase in total loans for the quarter, with the largest dollar increases in loans to non-depository financial institutions and loans to purchase or carry securities.
Felton said asset-quality metrics remained generally favorable: the industry's past-due and nonaccrual (PDNA) rate held at 1.49%, below the pre-pandemic average of 1.94%, though he cautioned that non-owner-occupied commercial real estate, multifamily CRE, auto and credit-card portfolios remain elevated relative to pre-pandemic norms. The industry's quarterly net charge-off rate was reported at 0.61%.
On the Deposit Insurance Fund, the FDIC reported a DIF balance of $150,100,000,000 on Sept. 30, 2025, up $4,800,000,000 from the second quarter. Assessment revenue added $3,300,000,000 to the fund; interest income, negative provisions for insurance losses, and unrealized gains contributed roughly $2,100,000,000 combined, partially offset by operating expenses of $570,000,000. The DIF reserve ratio rose four basis points in the quarter to 1.4%.
The FDIC also reported supervisory measures: the number of banks on the agency's problem-bank list declined by a net two to 57 (about 1.3% of banks), and no banks opened or failed during the quarter.
The briefing concluded with a short question-and-answer session in which officials reiterated that the agency is monitoring elevated concentrations in certain portfolios and will continue to provide data and analysis to policymakers. Members of the press were directed to the FDIC Office of Communications for follow-up inquiries.
