U.S. banks reported stronger first-quarter results despite rising interest rates and continued market volatility tied to the Iran war, according to new data from the Federal Deposit Insurance Corporation. The FDIC said industry net income rose 3.6% quarter-over-quarter to $80.5 billion as deposits increased for a seventh straight quarter and loan growth accelerated.
- Total loan and lease balances increased 1.6% from the prior quarter and 7.1% year-over-year, the fastest annual growth rate since Q2 2023.
- Bank unrealized losses on securities holdings rose 6.2% from the prior quarter to $325.1 billion, driven partly by higher mortgage-backed security losses.
- The industry’s net interest margin narrowed to 3.31% during the quarter.
- The FDIC’s Deposit Insurance Fund increased by $3.6 billion to $157.4 billion.
- The number of “problem banks” declined by six to 54, with one bank failure recorded during the quarter.
- The FDIC said past-due levels remained elevated for credit card, auto and multifamily commercial real estate loans.
Relevant Companies
- JPMorgan Chase ($JPM) – Large banks benefited from stronger noninterest income growth during the quarter.
- Bank of America ($BAC) – Rising deposits and loan growth remain key drivers for major lenders.
- Citigroup ($C) – Banking sector profitability and credit quality trends directly affect large diversified banks.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
