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 a return on average assets (ROAA) of 1.23 percent in first quarter 2025, down 2 basis points (bps) from the previous quarter but 5 bps higher than in first quarter 2024.
• The ROAA for U.S. banks was 1.08 percent in first quarter 2025, up 2 bps from fourth quarter 2024 but 1 bps lower than a year ago.

• For Eleventh District banks in first quarter 2025, lower expenses, higher net interest income and lower securities losses were offset by a decline in noninterest income, leading to a slight dip in profitability from the previous quarter.
• Much of the higher profitability for Eleventh District banks relative to U.S. peers can be attributed to lower provision expense.

• Eleventh District banks’ net interest margin (NIM) increased for the fifth consecutive quarter in first quarter 2025 as interest expense decelerated slightly more than interest income.
• The NIM for Eleventh District banks was 3.45 percent in first quarter 2025, 3 basis points (bps) higher than in fourth quarter 2024 and 22 bps higher than a year ago.
• For U.S. banks, NIM was 3.49 percent, remaining even with the previous quarter and 16 bps higher than a year ago.

• Since late 2021, provision expense for Eleventh District banks has trended below that of their U.S. peers.
• For first quarter 2025, Eleventh District banks’ provision expense relative to average assets was 0.12 percent, 12 basis points (bps) lower than the national value.

• The net charge-off rate for Eleventh District banks has trended below that of U.S. peers since 2020.
• Rates for both groups declined in first quarter 2025 to 0.17 percent for Eleventh District banks, down 3 basis points (bps) quarter over quarter and 1 bps year over year, and 0.29 percent for U.S. banks, down 6 bps quarter over quarter and 1 bps year over year.

• For Eleventh District banks, commercial and industrial (C&I) loans accounted for much of the quarter-over-quarter decrease in the net loan charge-off rate, along with consumer and other loans.
• For U.S. banks, C&I loans accounted for most of the drop in the rate since last quarter.

• For Eleventh District banks, the noncurrent loan rate has consistently trended below that of U.S. peers.
• In first quarter 2025, Eleventh District banks’ noncurrent loan rate held steady quarter over quarter at 0.74 percent but was up 7 basis points (bps) year over year. The rate for U.S. banks increased to 0.94 percent, up 10 bps quarter over quarter and 19 bps year over year.

• For Eleventh District banks, commercial real estate (CRE) loans accounted for most of the year-over-year increase in the noncurrent loan rate.
• CRE loans also drove the quarter-over-quarter and year-over-year increases in the rate for U.S. banks. Residential real estate loans accounted for a modest share of the rise.

• The pace of loan growth slowed in first quarter 2025 in the district and nationally, with U.S. banks (3.4 percent year over year) continuing to outpace Eleventh District banks (2.6 percent year over year).

• For both Eleventh District and U.S. banks, year-over-year growth slowed for all major loan categories.
• Eleventh District banks saw outright declines in commercial and industrial (C&I) and consumer loans.

• For Eleventh District banks, an increase in deposits offset a decline in Federal Home Loan Bank (FHLB) advances in first quarter 2025.
• Deposits rose modestly for U.S. banks, while Fed funds purchased, other borrowing and other liabilities fell slightly during the quarter.

• Banks’ deposit mix was stable in the Eleventh District and nationally, although the share of interest-bearing deposits and certificates of deposit (CDs) remains elevated relative to before 2022, when the Fed began raising interest rates.

• In first quarter 2025, equity capital ratios rose as higher retained earnings were accompanied by lower unrealized losses on available-for-sale securities.
• As interest rates declined in the first quarter, the market value of banks’ securities holdings increased, leading to a reduction in unrealized losses.