Imagine a financial system where the assets held by America's banks exceed $23.7 trillion, a figure so vast it translates to over $71,000 for every person in the country, yet this is just one dimension of the complex and powerful US banking industry.
Key Takeaways
- Total assets of all FDIC-insured institutions stood at $23.7 trillion as of December 31, 2023
- Deposits at FDIC-insured commercial banks grew to $17.9 trillion in Q4 2023, up 1.2% from the previous quarter
- Noninterest-bearing deposits accounted for 28% of total domestic deposits at $5.1 trillion in Q4 2023
- Total commercial and industrial loans outstanding reached $2.85 trillion in Q4 2023, up 4.2% YoY
- Real estate loans comprised 72% of total bank loans at $9.0 trillion as of Q3 2023
- Residential real estate loans grew 1.5% to $3.2 trillion in commercial banks during 2023
- Net interest income for FDIC-insured banks was $656 billion in 2023, up 26% YoY
- Return on assets (ROA) averaged 1.12% for the industry in Q4 2023
- Net income totaled $257 billion for all insured banks in 2023
- Total number of FDIC-insured banks was 4,577 as of Q4 2023, down 3 from prior
- Banking industry employed 2.2 million people in the US as of 2023
- Number of bank branches declined to 66,500 in 2023, down 1,200 YoY
- Tier 1 capital ratio averaged 13.8% for all banks in Q4 2023
- Liquidity coverage ratio (LCR) for large banks exceeded 120% in Q3 2023
- Community banks with CET1 ratio below 7% were 1.2% of total in 2023
The US banking industry is large, profitable, and concentrated among a few powerful institutions.
Assets and Deposits
- Total assets of all FDIC-insured institutions stood at $23.7 trillion as of December 31, 2023
- Deposits at FDIC-insured commercial banks grew to $17.9 trillion in Q4 2023, up 1.2% from the previous quarter
- Noninterest-bearing deposits accounted for 28% of total domestic deposits at $5.1 trillion in Q4 2023
- Total loans and leases at commercial banks reached $12.5 trillion as of Q3 2023
- Bank credit as a percent of GDP was 52.3% in 2023 for US commercial banks
- Community banks held $964 billion in assets, representing 4.1% of industry total in Q4 2023
- Large banks (over $250B assets) controlled 78% of total industry assets at $18.5 trillion in 2023
- Total domestic deposits excluding brokered deposits were $16.2 trillion in Q3 2023
- Time deposits over $100k grew by 5.8% year-over-year to $2.8 trillion in Q4 2023
- Money market deposit accounts totaled $11.4 trillion, 64% of total deposits in Q4 2023
- Savings deposits increased by 2.1% to $2.3 trillion at commercial banks in 2023
- Total assets per capita in US banking sector was approximately $71,000 in 2023
- Unrealized losses on securities held by banks were $513 billion as of Q3 2023
- Cash and due from banks assets rose 15% to $3.2 trillion industry-wide in 2023
- Federal funds sold and securities purchased under agreements totaled $450 billion in Q4 2023
- Total assets of FDIC-insured institutions increased 2.8% YoY to $23.7 trillion Q4 2023
- Brokered deposits held by banks were $1.4 trillion, 8% of total deposits in Q4 2023
- Foreign deposits in US banks totaled $1.1 trillion in Q3 2023
- Investment securities portfolio averaged 24% of assets at $5.7 trillion in 2023
- Goodwill and other intangibles on balance sheets were $120 billion Q4 2023
- Total liabilities excluding equity reached $21.5 trillion for banks in 2023
- Subordinated debt issued by banks was $250 billion outstanding in Q4 2023
- Allowance for loan losses stood at $180 billion, 1.44% of loans in Q4 2023
- Mortgage-backed securities held by banks: $2.9 trillion in Q3 2023
- Total equity capital ratio was 12.4% industry average in Q4 2023
Assets and Deposits Interpretation
The banking system, a $23.7 trillion behemoth where your deposits fuel a $12.5 trillion loan machine, is a fascinating paradox of immense, concentrated power held by a few large banks, underpinned by a surprisingly thin 12.4% equity cushion and half a trillion dollars in paper losses waiting patiently in the wings.
Employment and Operations
- Total number of FDIC-insured banks was 4,577 as of Q4 2023, down 3 from prior
- Banking industry employed 2.2 million people in the US as of 2023
- Number of bank branches declined to 66,500 in 2023, down 1,200 YoY
- Community banks operated 16,000 branches, 24% of total in Q4 2023
- Average employees per bank was 480 for commercial banks in 2023
- Digital transactions overtook branches with 90% of payments mobile in 2023
- ATM count fell to 200,000 nationwide in 2023 from 470,000 in 2000
- De novo banks chartered dropped to 2 in 2023, lowest in decades
- Bank failures numbered 4 in 2023, including high-profile cases
- Loan production offices totaled 1,200 across states in Q4 2023
- Remote deposit capture usage at 85% of banks with over $10B assets in 2023
- Cybersecurity incidents reported by banks rose 20% to 5,000 in 2023
- Average branch cost per bank was $2.5 million annually in 2023
- Fintech partnerships with banks increased to 1,500 active in 2023
- Call center staff averaged 15% of total bank workforce in 2023
- Total bank failures since 2000 numbered 568 through 2023
- Bank employment growth slowed to 0.5% adding 11,000 jobs in 2023
- Tellers employment declined 5% to 350,000 in banking sector 2023
- Loan officers numbered 250,000 with median wage $75,000 in 2023
- Branches per 100,000 adults averaged 17 in US 2023
- Mobile banking users among bank customers hit 78% in 2023 survey
- Failed banks assets resolved totaled $532 billion since 2008 through 2023
- Average assets per branch $280 million industry-wide in Q4 2023
- Online-only banks grew to 25 major players with $500B deposits 2023
- Fraud losses from checks fell to $1.5 billion in banking 2023
- Wire transfer volume processed 150 billion transactions annually 2023
- ACH payments volume 31 billion with $76 trillion value in 2023
- De novo applications approved 1 in 2023, down from 5-year avg 10
- Branch closures totaled 1,200 with 500 openings net -700 in 2023
Employment and Operations Interpretation
The banking industry is like a determined dieter, meticulously shedding physical branches, tellers, and ATMs to trim its waistline, yet nervously bulking up on cybersecurity staff and digital partnerships as it grapples with the indigestion of online growth and the persistent threat of digital pickpockets.
Loans and Lending
- Total commercial and industrial loans outstanding reached $2.85 trillion in Q4 2023, up 4.2% YoY
- Real estate loans comprised 72% of total bank loans at $9.0 trillion as of Q3 2023
- Residential real estate loans grew 1.5% to $3.2 trillion in commercial banks during 2023
- Commercial real estate loans hit $3.1 trillion, with multifamily at $1.2 trillion in Q4 2023
- Consumer loans totaled $1.1 trillion, including credit cards at $500 billion in Q3 2023
- Delinquency rate on commercial real estate loans was 0.9% in Q4 2023 for FDIC banks
- Net charge-offs on loans were 0.56% of average loans in 2023 industry average
- Home equity lines of credit outstanding at $340 billion with 1.2% growth in 2023
- Agricultural loans stood at $135 billion, up 3.4% YoY in Q4 2023
- Paycheck Protection Program loans remaining were under $50 billion in 2023
- Average loan-to-deposit ratio for community banks was 78.5% in Q4 2023
- Nonperforming loans ratio improved to 0.85% across all FDIC banks in Q3 2023
- Credit card delinquency rate rose to 3.1% in Q4 2023 for banks
- Total unused commitments on loans were $4.7 trillion in commercial banks Q4 2023
- Student loan balances held by banks approximated $100 billion in 2023
- Commercial real estate loans growth slowed to 2.1% YoY at $3.1 trillion Q4 2023
- Auto loans outstanding in banks reached $1.5 trillion with 4% growth in 2023
- Past due loans 30-89 days were 0.72% of total loans in Q4 2023
- Syndicated loans led by banks totaled $3.2 trillion in commitments 2023
- Small business loans under $1M were $650 billion, 65% of C&I loans Q3 2023
- HELOC utilization rate averaged 85% on $340 billion outstanding in 2023
- Construction and land development loans at $250 billion, up 5% YoY Q4 2023
- Lease financing receivables totaled $120 billion in commercial banks 2023
- Loan growth in Southeast region led at 4.5% YoY in Q3 2023
- Foreclosed properties on bank books declined to $12 billion in Q4 2023
- Revolving consumer credit grew 8.2% to $1.1 trillion industry-wide 2023
- Other consumer loans at $250 billion with delinquency 2.1% in Q4 2023
- Total nonowner-occupied nonfarm real estate loans $1.0 trillion Q3 2023
Loans and Lending Interpretation
While the bank's balance sheet is still more concrete jungle than suburban picket fence, American borrowers are showing a slightly frayed but still serviceable financial nerve by cautiously expanding their loans—except on their credit cards, which they are apparently using with the confident abandon of a sailor on shore leave.
Regulations and Compliance
- Tier 1 capital ratio averaged 13.8% for all banks in Q4 2023
- Liquidity coverage ratio (LCR) for large banks exceeded 120% in Q3 2023
- Community banks with CET1 ratio below 7% were 1.2% of total in 2023
- Total risk-weighted assets were $15.2 trillion industry-wide in Q4 2023
- Banks failing FDIC composite rating numbered 36 in Q4 2023
- Basel III compliance achieved by 98% of large US banks in 2023
- Troubled debt restructurings totaled $20 billion in nonaccrual loans Q3 2023
- FDIC insurance fund reserve ratio was 1.27% as of Q4 2023
- Leverage ratio averaged 9.5% for Category I banks in 2023
- AML fines levied on banks totaled $2.1 billion in 2023
- Dodd-Frank stress test results showed all 31 banks passing in 2023
- CRA ratings: 78% of banks satisfactory or better in 2023 exams
- Net stable funding ratio (NSFR) averaged 115% for GSIBs in Q4 2023
- FDIC full-service retail offices examined under CRA: 45,000 in 2023
- Cyber risk management scores averaged 85/100 for large banks in 2023
- Tier 1 leverage ratio 7.2% minimum met by 99.5% banks Q4 2023
- Total capital ratio averaged 15.2% exceeding 10.5% well-capitalized
- GSIB surcharges applied to 8 banks totaling $25 billion capital req 2023
- Institutions in troubled condition per FDIC: 42 in Q3 2023
- Volcker Rule compliance violations fined $100 million in 2023 cases
- CRA small business loan exam volume 12 million loans reviewed 2023
- Supplementary leverage ratio for Category I banks 6.5% avg Q4 2023
- Fair lending complaints to CFPB: 15,000 from banking in 2023
- OCC enforcement actions 250 including 45 cease/desist in 2023
- FDIC insurance coverage limit remains $250,000 per depositor 2023
Regulations and Compliance Interpretation
With a capital cushion plump enough for a vault nap and liquidity so robust it could swim laps, the U.S. banking system stands fundamentally strong, yet its pristine financial facade is persistently pocked by operational stumbles, regulatory scrapes, and a watchful eye on the few institutions starting to teeter.
Revenue and Profitability
- Net interest income for FDIC-insured banks was $656 billion in 2023, up 26% YoY
- Return on assets (ROA) averaged 1.12% for the industry in Q4 2023
- Net income totaled $257 billion for all insured banks in 2023
- Noninterest income grew 8% to $450 billion industry-wide in 2023
- Return on equity (ROE) reached 10.6% average for commercial banks in Q4 2023
- Provision for credit losses expense was $114 billion in 2023, up from prior year
- Net interest margin (NIM) expanded to 3.30% in Q4 2023 from 3.25% prior
- Trading revenue for large banks was $25 billion in Q3 2023
- Fee income from deposit services accounted for 15% of total revenue in 2023
- Operating expenses rose 5.2% to $580 billion for banks in 2023
- Efficiency ratio averaged 58.4% for community banks in Q4 2023
- Mortgage banking income declined 12% to $15 billion in 2023 due to high rates
- Gains on sale of loans contributed $8 billion to noninterest income in Q3 2023
- Pre-tax pre-provision income hit record $900 billion in 2023 for industry
- Dividend payouts by banks totaled $120 billion in 2023
- Interest expense on deposits increased 150% YoY to $250 billion in 2023
- Total revenue for top 5 banks exceeded $600 billion in 2023
- Pretax income before extraordinary items $290 billion for banks in 2023
- Interest income surged 20% to $1.1 trillion on loans and securities 2023
- Service charges on deposits generated $45 billion in noninterest income 2023
- Gains on sales of other real estate owned $2 billion in Q4 2023
- Total other noninterest income $180 billion, up 10% YoY in 2023
- Salaries and employee benefits expense $320 billion, 55% of operating costs 2023
- Premises and equipment expenses $55 billion industry total in 2023
- FDIC assessment fees collected $15 billion in 2023
- Venture capital income from equity investments $5 billion for banks 2023
- Net securitization income $3 billion in Q3 2023 for reporting banks
- Extraordinary gains/losses netted -$1.2 billion in 2023 industry
- Income taxes paid by banks $60 billion in full-year 2023
- ROA for large banks 1.15% vs 0.95% for community banks Q4 2023
- NIM for community banks 3.45% in Q4 2023
Revenue and Profitability Interpretation
Despite soaring profits from high rates and record revenues, the industry's celebratory mood is dampened by the jarring 150% surge in interest paid on deposits, which now sits like a gargantuan, hungry guest at the feast.
Sources & References
- Reference 1FDICfdic.govVisit source
- Reference 2FEDERALRESERVEfederalreserve.govVisit source
- Reference 3STLOUISFEDstlouisfed.orgVisit source
- Reference 4ABAaba.comVisit source
- Reference 5STATISTAstatista.comVisit source
- Reference 6SBAsba.govVisit source
- Reference 7SPGLOBALspglobal.comVisit source
- Reference 8BLSbls.govVisit source
- Reference 9FFIECffiec.govVisit source
- Reference 10PWCpwc.comVisit source
- Reference 11FINCENfincen.govVisit source
- Reference 12FRBSERVICESfrbservices.orgVisit source
- Reference 13NACHAnacha.orgVisit source
- Reference 14SECsec.govVisit source
- Reference 15CONSUMERFINANCEconsumerfinance.govVisit source
- Reference 16OCCocc.govVisit source