Eleventh District Banking Trends

This report tracks the financial performance of Eleventh District banks in comparison with national averages, looking at profitability, loans, deposits and other key metrics. It is updated quarterly.

Select a metric to go directly to the related chart below.

View chart topics… Return on average assets (ROAA) Net income breakdown Net interest margins (NIM) Provision expense Net loan losses Net charge-offs by loan type Noncurrent loans Noncurrent loans by type Loan growth Loan growth by type Funding mix Deposit mix Equity capital ratios

• Eleventh District banks earned return on average assets of 1.35 percent in the second quarter, 12 basis points higher than the first quarter and 14 basis points higher than the second quarter of 2024.
• U.S. banks earned ROAA of 1.18 percent in the second quarter, 10 basis points higher than the first quarter and 16 basis points higher than a year ago.

• Higher revenue more than offset a slight increase in expenses, leading to improved profitability in the second quarter.
• Higher profitability for Eleventh District banks relative to U.S. peers can be traced to lower provision expense.

• Bank net interest margin was up in the second quarter as higher interest income more than offset flat interest expense.
• Eleventh District banks' net interest margin was 3.58 percent in the second quarter, 13 basis points higher than the first quarter.
• U.S. bank net interest margin was 3.62 percent, 14 basis points higher than the first quarter.

• Eleventh District bank provision expense has trended below U.S. peers since late 2021.
• For the second quarter, Eleventh District bank provision expense relative to average assets was 14 basis points lower than the U.S peer value.

• Eleventh District bank net charge-off rate also continues to trend below U.S. peers.
• The rate for Eleventh District banks was unchanged at 0.17 percent in the second quarter, compared with a slight increase for U.S. banks to 0.31 percent.

• Eleventh District bank noncurrent loan rate has consistently trended below U.S. peers.
• Eleventh District bank noncurrent loan rate was 0.77 percent for the second quarter (up 3 basis points quarter-over-quarter and 7 basis points year-over-year), compared with 0.92 percent for U.S. peers (down 2 basis points quarter over quarter but up 18 basis points year over year).

• Loan growth picked up slightly in the second quarter for both Eleventh District banks and their U.S. peers.
• For Eleventh District banks, growth accelerated for all major loan categories except consumer loans.

• Equity capital ratios have been trending up since mid-2022 as retained earnings increased and unrealized losses on available-for-sale securities abated.
• Eleventh District bank equity capital ratio increased 20 basis points in the second quarter to 10.8 percent, and U.S. bank equity capital ratio increased 12 basis points to 11.0 percent.