The FDIC Quarterly provides a comprehensive summary of the most current financial results for the banking industry, along with feature articles. These articles range from timely analysis of economic and banking trends at the national and regional level that may affect the risk exposure of FDIC-insured institutions to research on issues affecting the banking system and the development of regulatory policy. The FDIC Quarterly brings together data and analysis that were previously available through three retired publications -- the FDIC Outlook, the FDIC Banking Review, and the FYI: An Update on Emerging Issues in Banking. Past issues of these publications are archived under their original publication names.
FDIC-insured institutions reported an aggregate profit of $28.8 billion in the second quarter of 2011, a $7.9 billion improvement from the $20.9 billion in net income the industry reported in the second quarter of 2010. This is the eighth consecutive quarter that earnings registered a year-over-year increase. As has been the case in each of the last seven quarters, lower provisions for loan losses were responsible for most of the year-over-year improvement in earnings. More than half of all institutions reported improved earnings compared with a year ago. The average return on assets (ROA) rose to 0.85 percent, from 0.63 percent a year earlier.
Insurance Fund Indicators
Estimated insured deposits (based on $250,000 coverage) increased by 2.3 percent during the second quarter of 2011. The Deposit Insurance Fund reserve ratio was 0.06 percent on June 30, 2011, up from -0.02 percent at March 31, 2011, and -0.28 percent four quarters earlier. Twenty-two FDIC-insured institutions failed during the quarter.