FDIC-Insured Institutions Reported Improved Profitability in Third Quarter 2020 — 2020-12-01

 Quarterly Net Income Improved, Primarily Because of Lower Provision Expense  Net Interest Margin Fell to a Record Low  Loan and Lease Balances Declined, Driven by Reduced Commercial and Industrial Lending Activity  Noncurrent Loan Balances Increased Modestly  Community Banks Reported a 10 Percent Increase in Net Income Year Over Year “The banking industry exhibited operational resiliency in the third quarter, with improvements in profitability despite continued headwinds and economic uncertainties resulting from the effects of the COVID-19 pandemic.” — FDIC Chairman Jelena McWilliams WASHINGTON—The Federal Deposit Insurance Corporation (FDIC) today reported results from commercial banks and savings institutions that reflect improved profitability from the first and second quarters of this year, increased liquidity, and strengthened capital levels. As a result, the banking industry remains well positioned to accommodate loan demand and support the economy.