FDIC-Insured Institutions Reported Lower Profitability but Strong Liquidity and Higher Capital Levels in Second Quarter 2020 — 2020-08-25

 Aggregate Quarterly Net Income Declined Due to Continued Economic Uncertainty  Net Interest Margin Compressed at Record Rate  Deposits Expanded by More Than $1 Trillion for Second Consecutive Quarter  Deposit Insurance Fund Increased to Record $114.7 Billion, while Reserve Ratio Falls to 1.30 Percent Due to Inflow of Deposits  Community Banks Registered a 3.2 Percent Increase in Net Income Year Over Year "Although economic stress related to the COVID-19 pandemic continued to affect bank earnings, the industry has remained a source of strength for the economy. Banks of all sizes supported their customers and communities, including by originating more than $480 billion in Paycheck Protection Program loans in the second quarter." — FDIC Chairman Jelena McWilliams WASHINGTON—The Federal Deposit Insurance Corporation (FDIC) today reported that commercial banks and savings institutions saw a decrease in net income of 70 percent from a year ago, while liquidity and