FDIC-Insured Institutions Earn $40.8 Billion in Fourth Quarter 2015 — 2016-02-23

Community Bank Earnings Rise to $5.1 Billion  Net Operating Revenue of $174 Billion Is 4 Percent Higher Than a Year Ago  Noninterest Expenses Are 2.5 Percent Lower  Loan Losses Post First Year-Over-Year Increase Since Second Quarter 2010 _______________________________ “The banking industry continued to improve in the fourth quarter. … However, banks must remain vigilant as they manage interest-rate risk, credit risk, and evolving market conditions.” — FDIC Chairman Martin J. Gruenberg _______________________________ Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $40.8 billion in the fourth quarter of 2015, up $4.4 billion (11.9 percent) from earnings of $36.5 billion a year earlier. The increase in earnings was mainly attributable to a $6.8 billion increase in net operating revenue and a $2.7 billion decline in noninterest expenses. The reduction in noninterest expenses is attributed to a drop in litigation expenses at a few large banks.