FDIC Reports Banking Profits Decline as Problem Bank List Expands

U.S. banking sector shows resilience with rising interest income, despite challenges in commercial real estate and two new problem banks.

U.S. bank profits fell 8.6% in Q3 2024 to $65.4 billion, largely due to the absence of one-time equity gains seen in the prior quarter.
The FDIC added two banks, with combined assets of $84 billion, to its problem bank list, bringing the total to 68 institutions.
Net interest income rose by $4.5 billion, with the net interest margin increasing across all bank sizes, signaling strong core income performance.
Commercial real estate loans showed increased delinquency rates, reaching their highest level since 2013, driven by office space vacancies and high interest rates.
Deposits grew by 1.1% to $194.6 billion, while unrealized losses on securities decreased by 29% due to falling interest rates.