by Calculated Risk on 5/28/2025 10:00:00 AM

The FDIC released the Quarterly Banking Profile for Q1 2025:

Net Income Increased from the Prior Quarter, Led by Higher Noninterest Income
Quarterly net income for the 4,462 FDIC-insured commercial banks and savings institutions totaled $70.6 billion, up $3.8 billion (5.8 percent) from the prior quarter. The banking industry reported an aggregate return on assets of 1.16 percent in first quarter 2025, up from 1.11 percent in fourth quarter 2024 and up from 1.09 percent in the year-ago quarter. The quarterly increase in net income was led by higher noninterest income (up $5.4 billion, or 7 percent). Gains in noninterest income were due to market movements and volatility as several large firms reported mark-to-market gains on certain financial instruments in the quarter. Industry noninterest income also benefited from other one-time items, such as gains on loan sales. Lower losses on the sale of securities also contributed to the increase in net income.
...
Asset Quality Metrics Remained Generally Favorable, Though Weakness in Certain Portfolios Persisted
Past-due and nonaccrual (PDNA) loans, or loans that are 30 or more days past due or in nonaccrual status, fell 1 basis point from the prior quarter to 1.59 percent of total loans. The industry’s PDNA ratio is still below the pre-pandemic average of 1.94 percent. While banks reported quarterly decreases in PDNA credit card loans (down $2.7 billion, or 9 basis points to 3.22 percent) and auto loans (down $2.6 billion, or 48 basis points to 2.84 percent), weaknesses persisted in certain portfolios. The PDNA rate for commercial real estate (CRE) loan portfolios is the highest it has been since fourth quarter 2014 at 1.49 percent. Multifamily CRE PDNAs have grown the most in the past year, up 88 basis points to 1.47 percent.

The industry’s net charge-off rate decreased 3 basis points to 0.67 percent from the prior quarter and is 1 basis point higher than the year-ago quarter and 19 basis points above the pre-pandemic average. Most portfolios have net charge-off rates above their pre-pandemic averages including credit card loans, which are 123 basis points above the pre-pandemic average at 4.71 percent.
emphasis added

Click on graph for larger image.

From the FDIC:

The Number of Problem Banks Decreased in the First Quarter
The number of banks on the FDIC’s “Problem Bank List” decreased by a net of three in the first quarter to 63 banks. The number of problem banks represented 1.4 percent of total banks in the first quarter, which is in the middle of the normal range for non-crisis periods of 1 to 2 percent of all banks.

This graph from the FDIC shows the number of problem banks.