FDIC Says Bank Profit Up Year Over Year, Deposits Down Slightly
- Banks’ profit increased year-over-year but fell sequentially
- Deposits fell for fifth straight quarter, though only slightly
The Federal Deposit Insurance Corporation headquarters in Washington, DC.
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A top US banking regulator painted a mixed but more stable picture of the industry at midyear following 2023’s early turmoil, while flagging potential risks from rising interest rates, tighter credit and a shaky office real estate market.
The Federal Deposit Insurance Corp.’s watch list of the weakest lenders stayed unchanged in the second quarter at 43, the agency said Thursday in its Quarterly Banking Profile of the 4,645 firms it insures. The period was marked by the collapse of First Republic Bank after a rapid increase in interest rates devalued its holdings. Its demise followed the implosions of Signature Bank and Silicon Valley Bank in March.