FDIC reports higher ROA, net income for banks in second quarter

Second-quarter call report data show banks’ return on assets (ROA) and net income both up from the second quarter and from a year ago, the Federal Deposit Insurance Corp. (FDIC) said Tuesday.

ROA overall was 1.37% in the second quarter, the data show, up from 1.26% in the first quarter 2026 and from 1.14% in the second quarter of 2025. Second-quarter net income was $90.1 billion, up $9.7 billion, or 12%, from the first quarter; and up $20.1 billion, or 28.7%, from the year-ago quarter, the agency said. (Net income for community banks rose 8.2% from the first quarter, it said.)

The data showed increased industry assets, loans and deposits, as well as an uptick in unrealized securities losses, growth in uninsured deposits and capital ratio declines, among other trends:

• Banking industry assets totaled $26.5 trillion in the second quarter, up $316.8 billion, or 1.2%, from the prior quarter; and up $1.5 trillion, or 5.9%, from the year-ago quarter.
• Loan and lease balances totaled $13.9 trillion, up $243.5 billion, or 1.8%, from the prior quarter; and up $885.5 billion, or 6.8%, over the year-ago quarter.
• Unrealized losses on securities totaled $326.7 billion, up $1.6 billion, or 0.5%, from the prior quarter; but down $68.6 billion, or 17.4%, from the year-ago quarter. They made up 5.5% of amortized cost.
• Past-due and nonaccrual (PDNA) loans – those 30 or more days past due or in nonaccrual status – decreased 9 basis points from the prior quarter to 1.44%.
• The net charge-off rate decreased 2 basis points to 0.57% from the prior quarter; and declined 3 basis points from the year-ago quarter.
• Domestic deposits grew $142.7 billion, or 0.8%, turning in its eighth consecutive quarterly increase and driven by estimated uninsured domestic deposits, which grew $317.4 billion, or 3.8%, from the prior quarter. Interest-bearing deposits and noninterest-bearing deposits both increased from the prior quarter.
• Capital ratios declined as asset growth outpaced capital accretion. The tier 1 risk-based capital ratio declined 17 basis points from first quarter 2026 to 13.75%. The leverage capital ratio decreased 17 basis points from first quarter 2026 to 8.98%.

FDIC-Insured Institutions Reported Return on Assets of 1.37 Percent and Net Income of $90.1 Billion in Second Quarter 2026