ABA Statement on FDIC’s Quarterly Banking Profile

“The FDIC's latest Quarterly Banking Profile indicates that the banking industry remains on firm footing as it helps power our economy through some persisting headwinds. Deposits grew for the second consecutive quarter across banks of all sizes. Lending edged down slightly as growth in commercial and industrial as well as commercial real estate loans was offset by a seasonal decline in credit card lending and lower auto loan balances. Community bank lending increased in the quarter and year-over-year.

“The industry saw broad growth in net income in the first quarter after accounting for the FDIC’s special assessment at the end of last year. Asset quality remained sound as banks continued to prudently bolster reserves. Office commercial real estate weakened in some metro areas in line with expectations. Banks continued to take proactive steps to manage this risk, including increasing the reserve ratio of their commercial real estate portfolios. 

“America’s banks remain well-capitalized and well-positioned to continue serving as a pillar of strength for their communities.”