The Federal Deposit Insurance Corporation (FDIC) announced its insured institution reported a 1.26 percent return on assets ratio, and net income of $80.5 billion in the first quarter of 2026.
The net income represents a net increase of $2.8 billion from the previous quarter, a 3.6 percent gain. The banking industry continued to maintain strong capital and liquidity levels, which support lending and protect against potential losses.
“The banking industry finished the quarter with higher earnings quarter-over-quarter, resulting in a return on assets ratio (ROA) of 1.26 percent,” the FDIC said in a statement. “Domestic deposits increased for the seventh consecutive quarter and loan growth was strong. Asset quality metrics remained generally favorable despite continued weakness in certain portfolios, which the FDIC continues to monitor closely. Unrealized losses remained elevated. The banking industry continued to have strong capital and liquidity levels, which support lending and protect against potential losses.”
According to the Quarterly Banking Profile report, net income amongst community banks increased 3.9 percent over the prior quarter. The report also found that industry net interest margins declined by 8 basis points from the prior quarter to 3.31 percent as earning asset yields declined faster than funding costs. Domestic deposits grew 2.1 percent, while loan growth increased 1.6 percent over the prior quarter, and annual growth accelerated to 7.1 percent.
The report found that asset quality metrics remained generally favorable, even though some commercial real estate and consumer portfolios continue to have elevated delinquency rates.
The American Bankers Association said the report is an indication the industry continues to perform.
“The latest FDIC Quarterly Banking Profile shows that the banking industry remained resilient in the first quarter with solid earnings and robust deposit and loan growth,” the ABA said in a statement. “Despite increased market volatility, asset quality metrics remained stable. America’s banks are well capitalized with strong liquidity to continue supporting their customers and communities.”
The FDIC also said the Deposit Insurance Fund reserve ratio increased 1 basis point to 1.43 percent.