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by Calculated Risk on 2/28/2023 12:46:00 PM
The FDIC released the Quarterly Banking Profile for Q4 2022:
Reports from 4,706 commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reflect aggregate net income of $68.4 billion in fourth quarter 2022, a decrease of $3.3 billion (4.6 percent) from the third quarter. Lower noninterest income and higher provision expenses offset an increase in net interest income. These and other financial results for fourth quarter 2022 are included in the FDIC’s latest Quarterly Banking Profile released today.
…Asset Quality Metrics Remained Favorable Despite Modest Deterioration: Loans that were 90 days or more past due or on nonaccrual status (i.e., noncurrent loans) increased to 0.73 percent, up one basis point from the prior quarter. Noncurrent credit card and C&I loans drove the increase in the noncurrent rate. Total net charge-offs as a ratio of total loans increased 10 basis points from the prior quarter and 15 basis points from a year prior to 0.36 percent, driven by credit card, C&I, and auto loan losses. Despite the increase, the total net charge off rate remains below the pre-pandemic average of 0.48 percent. Early delinquencies (i.e., loans past due 30-89 days) increased 4 basis points from the prior quarter to 0.56 percent; one-to-four family real estate and auto loans contributed most to this growth. Total early-stage delinquencies also remain below the pre-pandemic average of 0.66 percent.
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…Asset Quality Metrics Remained Favorable Despite Modest Deterioration: Loans that were 90 days or more past due or on nonaccrual status (i.e., noncurrent loans) increased to 0.73 percent, up one basis point from the prior quarter. Noncurrent credit card and C&I loans drove the increase in the noncurrent rate. Total net charge-offs as a ratio of total loans increased 10 basis points from the prior quarter and 15 basis points from a year prior to 0.36 percent, driven by credit card, C&I, and auto loan losses. Despite the increase, the total net charge off rate remains below the pre-pandemic average of 0.48 percent. Early delinquencies (i.e., loans past due 30-89 days) increased 4 basis points from the prior quarter to 0.56 percent; one-to-four family real estate and auto loans contributed most to this growth. Total early-stage delinquencies also remain below the pre-pandemic average of 0.66 percent.
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Click on graph for larger image.
The FDIC reported the number of problem banks decreased to 39.
The number of FDIC-insured institutions declined from 4,746 in third quarter to 4,706 this quarter. In fourth quarter, three banks opened and 36 institutions merged with other FDIC-insured institutions. Seven institutions ceased operations. The number of banks on the FDIC’s “Problem Bank List” decreased by 3 from third quarter to 39, the lowest level in QBP history. Total assets of problem banks declined $116.3 billion to $47.5 billion. No banks failed in the fourth quarter.
This graph from the FDIC shows the number of problem banks and assets at problem institutions.
Note: The number of assets for problem banks increased significantly back in 2018 when Deutsche Bank Trust Company Americas was added to the list. An even larger unknown bank was added to the list in Q4 2021, and – since problem assets dropped sharply last quarter – that bank is now off the problem list.
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