Per the Federal Deposit Insurance Corporation’s (FDIC) First Quarter 2021 Quarterly Banking Profile, FDIC-insured commercial banks and savings institutions recorded a net income of $76.8 billion.
The amount reflects an increase of $58.3 billion from a year ago.
“Despite continued challenges, the banking industry remains resilient,” FDIC Chairman Jelena McWilliams said. “Strong capital and liquidity levels support lending needs and help protect against potential losses.”
The analysis showed the net income also represented an increase of $17.3 billion from fourth quarter 2020. The aggregate negative provision expense enhanced quarterly and annual net income growth.
The report also showed 75 percent of all banks reported annual improvements in quarterly net income, and the share of unprofitable institutions dropped from 7.4 percent a year ago to 3.9 percent. The average net interest margin contracted 57 basis points from a year ago to 2.56 percent, signaling the lowest level on record for the Quarterly Banking Profile. Community banks reported annual net income growth of $3.7 billion, supported by an increase in noninterest income and a decline in provision expense.
The FDIC indicated three new banks opened during the quarter, with 25 institutions merging. No banks failed during the quarter.