Community banks reported a 6.1% first-quarter increase in net income from a year ago and a 4.2% decline from the previous quarter, according to the FDIC’s latest Quarterly Banking Profile.
Community Bank Numbers: For the first quarter, community banks also reported:
Deposits rose 1.6% over the past year.
Total assets increased 1.2% from the fourth quarter and 4.6% from the previous year.
The pretax return on average assets ratio fell 21 basis points from the previous quarter to 1.27%.
The average community bank quarterly net interest margin decreased 22 basis points from the prior quarter as an increase in the average cost of deposits outpaced the increase in average loan yields.
Total loans and leases increased 1.8% from the fourth quarter and were up 15.0% from a year ago, with 89.7% of community banks reporting annual loan growth.
Delinquent and noncurrent loans and leases remained near historic lows.
Capital ratios remained strong, with tier one risk-based capital ratios and community bank leverage ratios rising from the previous quarter.
Unrealized losses on securities declined for a second consecutive quarter.
Overall Industry: The overall banking industry reported a 16.9% quarterly increase in net income, reflecting the accounting treatment of the acquisitions of two failed institutions and record-high trading revenue at large banks. Without the impact of failed bank acquisitions on noninterest income, banking industry net income would be roughly flat, the FDIC said.
Deposit Insurance Fund: The DIF balance decreased $12.1 billion from the end of the fourth quarter, largely reflecting provisions for actual and anticipated failures in the first quarter, including the failures of three institutions. The reserve ratio decreased 14 basis points to 1.11% as insured deposits increased 2.5%.
Mergers and Closings: During the quarter, 31 institutions merged, one new bank opened, two banks failed, and one self-liquidated.
