Insured Institutions Reported Increase in Net Income in Second Quarter

Posted: Aug 26 2026

The banking industry reported a return on assets ratio of 1.37% and aggregate net income of $90.1 billion in the second quarter of 2026, an increase of $9.7 billion, or 12%, from the prior quarter, according to the FDIC’s most recent Quarterly Banking Profile. The agency also reported strong loan growth across banks of all sizes.

Quarterly net income for the 3,818 community banks increased $659.2 million, or 8.2%, from the prior quarter to $8.7 billion, according to the FDIC. The share of community banks that were unprofitable during the quarter was 4.4%, down from 4.9% in the prior quarter.

Domestic deposits increased $142.7 billion, or 0.8%, in Q2, rising for an eighth consecutive quarter. Estimated uninsured domestic deposits drove the increase, up $317.4 billion. The Deposit Insurance Fund balance increased $3.7 billion to $161.1 billion. The reserve ratio increased by five basis points to 1.48%.

The industry’s annual loan growth rate in Q2 was 6.8%, led by loans to nondepository financial institutions and loans to purchase or carry securities, including margin loans.

The total number of FDIC-insured institutions declined by 41 during Q2 to 4,238. Four banks opened during the quarter; four banks were sold to non-FDIC-insured institutions; 36 institutions merged with other banks; and one bank failed during the second quarter.

The number of banks on the FDIC’s “Problem Bank List” decreased by a net of seven to 47 banks.

To read more, visit: https://www.fdic.gov/news/press-releases/2026/fdic-insured-institutions-reported-return-assets-137-percent-and-net