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
1Total assets of all FDIC-insured institutions stood at $23.7 trillion as of December 31, 2023
Verified2Deposits at FDIC-insured commercial banks grew to $17.9 trillion in Q4 2023, up 1.2% from the previous quarter
Verified3Noninterest-bearing deposits accounted for 28% of total domestic deposits at $5.1 trillion in Q4 2023
Verified4Total loans and leases at commercial banks reached $12.5 trillion as of Q3 2023
Directional5Bank credit as a percent of GDP was 52.3% in 2023 for US commercial banks
Single source6Community banks held $964 billion in assets, representing 4.1% of industry total in Q4 2023
Verified7Large banks (over $250B assets) controlled 78% of total industry assets at $18.5 trillion in 2023
Verified8Total domestic deposits excluding brokered deposits were $16.2 trillion in Q3 2023
Verified9Time deposits over $100k grew by 5.8% year-over-year to $2.8 trillion in Q4 2023
Directional10Money market deposit accounts totaled $11.4 trillion, 64% of total deposits in Q4 2023
Single source11Savings deposits increased by 2.1% to $2.3 trillion at commercial banks in 2023
Verified12Total assets per capita in US banking sector was approximately $71,000 in 2023
Verified13Unrealized losses on securities held by banks were $513 billion as of Q3 2023
Verified14Cash and due from banks assets rose 15% to $3.2 trillion industry-wide in 2023
Directional15Federal funds sold and securities purchased under agreements totaled $450 billion in Q4 2023
Single source16Total assets of FDIC-insured institutions increased 2.8% YoY to $23.7 trillion Q4 2023
Verified17Brokered deposits held by banks were $1.4 trillion, 8% of total deposits in Q4 2023
Verified18Foreign deposits in US banks totaled $1.1 trillion in Q3 2023
Verified19Investment securities portfolio averaged 24% of assets at $5.7 trillion in 2023
Directional20Goodwill and other intangibles on balance sheets were $120 billion Q4 2023
Single source21Total liabilities excluding equity reached $21.5 trillion for banks in 2023
Verified22Subordinated debt issued by banks was $250 billion outstanding in Q4 2023
Verified23Allowance for loan losses stood at $180 billion, 1.44% of loans in Q4 2023
Verified24Mortgage-backed securities held by banks: $2.9 trillion in Q3 2023
Directional25Total equity capital ratio was 12.4% industry average in Q4 2023
Single sourceAssets 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
1Total number of FDIC-insured banks was 4,577 as of Q4 2023, down 3 from prior
Verified2Banking industry employed 2.2 million people in the US as of 2023
Verified3Number of bank branches declined to 66,500 in 2023, down 1,200 YoY
Verified4Community banks operated 16,000 branches, 24% of total in Q4 2023
Directional5Average employees per bank was 480 for commercial banks in 2023
Single source6Digital transactions overtook branches with 90% of payments mobile in 2023
Verified7ATM count fell to 200,000 nationwide in 2023 from 470,000 in 2000
Verified8De novo banks chartered dropped to 2 in 2023, lowest in decades
Verified9Bank failures numbered 4 in 2023, including high-profile cases
Directional10Loan production offices totaled 1,200 across states in Q4 2023
Single source11Remote deposit capture usage at 85% of banks with over $10B assets in 2023
Verified12Cybersecurity incidents reported by banks rose 20% to 5,000 in 2023
Verified13Average branch cost per bank was $2.5 million annually in 2023
Verified14Fintech partnerships with banks increased to 1,500 active in 2023
Directional15Call center staff averaged 15% of total bank workforce in 2023
Single source16Total bank failures since 2000 numbered 568 through 2023
Verified17Bank employment growth slowed to 0.5% adding 11,000 jobs in 2023
Verified18Tellers employment declined 5% to 350,000 in banking sector 2023
Verified19Loan officers numbered 250,000 with median wage $75,000 in 2023
Directional20Branches per 100,000 adults averaged 17 in US 2023
Single source21Mobile banking users among bank customers hit 78% in 2023 survey
Verified22Failed banks assets resolved totaled $532 billion since 2008 through 2023
Verified23Average assets per branch $280 million industry-wide in Q4 2023
Verified24Online-only banks grew to 25 major players with $500B deposits 2023
Directional25Fraud losses from checks fell to $1.5 billion in banking 2023
Single source26Wire transfer volume processed 150 billion transactions annually 2023
Verified27ACH payments volume 31 billion with $76 trillion value in 2023
Verified28De novo applications approved 1 in 2023, down from 5-year avg 10
Verified29Branch closures totaled 1,200 with 500 openings net -700 in 2023
DirectionalEmployment 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
1Total commercial and industrial loans outstanding reached $2.85 trillion in Q4 2023, up 4.2% YoY
Verified2Real estate loans comprised 72% of total bank loans at $9.0 trillion as of Q3 2023
Verified3Residential real estate loans grew 1.5% to $3.2 trillion in commercial banks during 2023
Verified4Commercial real estate loans hit $3.1 trillion, with multifamily at $1.2 trillion in Q4 2023
Directional5Consumer loans totaled $1.1 trillion, including credit cards at $500 billion in Q3 2023
Single source6Delinquency rate on commercial real estate loans was 0.9% in Q4 2023 for FDIC banks
Verified7Net charge-offs on loans were 0.56% of average loans in 2023 industry average
Verified8Home equity lines of credit outstanding at $340 billion with 1.2% growth in 2023
Verified9Agricultural loans stood at $135 billion, up 3.4% YoY in Q4 2023
Directional10Paycheck Protection Program loans remaining were under $50 billion in 2023
Single source11Average loan-to-deposit ratio for community banks was 78.5% in Q4 2023
Verified12Nonperforming loans ratio improved to 0.85% across all FDIC banks in Q3 2023
Verified13Credit card delinquency rate rose to 3.1% in Q4 2023 for banks
Verified14Total unused commitments on loans were $4.7 trillion in commercial banks Q4 2023
Directional15Student loan balances held by banks approximated $100 billion in 2023
Single source16Commercial real estate loans growth slowed to 2.1% YoY at $3.1 trillion Q4 2023
Verified17Auto loans outstanding in banks reached $1.5 trillion with 4% growth in 2023
Verified18Past due loans 30-89 days were 0.72% of total loans in Q4 2023
Verified19Syndicated loans led by banks totaled $3.2 trillion in commitments 2023
Directional20Small business loans under $1M were $650 billion, 65% of C&I loans Q3 2023
Single source21HELOC utilization rate averaged 85% on $340 billion outstanding in 2023
Verified22Construction and land development loans at $250 billion, up 5% YoY Q4 2023
Verified23Lease financing receivables totaled $120 billion in commercial banks 2023
Verified24Loan growth in Southeast region led at 4.5% YoY in Q3 2023
Directional25Foreclosed properties on bank books declined to $12 billion in Q4 2023
Single source26Revolving consumer credit grew 8.2% to $1.1 trillion industry-wide 2023
Verified27Other consumer loans at $250 billion with delinquency 2.1% in Q4 2023
Verified28Total nonowner-occupied nonfarm real estate loans $1.0 trillion Q3 2023
VerifiedLoans 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
1Tier 1 capital ratio averaged 13.8% for all banks in Q4 2023
Verified2Liquidity coverage ratio (LCR) for large banks exceeded 120% in Q3 2023
Verified3Community banks with CET1 ratio below 7% were 1.2% of total in 2023
Verified4Total risk-weighted assets were $15.2 trillion industry-wide in Q4 2023
Directional5Banks failing FDIC composite rating numbered 36 in Q4 2023
Single source6Basel III compliance achieved by 98% of large US banks in 2023
Verified7Troubled debt restructurings totaled $20 billion in nonaccrual loans Q3 2023
Verified8FDIC insurance fund reserve ratio was 1.27% as of Q4 2023
Verified9Leverage ratio averaged 9.5% for Category I banks in 2023
Directional10AML fines levied on banks totaled $2.1 billion in 2023
Single source11Dodd-Frank stress test results showed all 31 banks passing in 2023
Verified12CRA ratings: 78% of banks satisfactory or better in 2023 exams
Verified13Net stable funding ratio (NSFR) averaged 115% for GSIBs in Q4 2023
Verified14FDIC full-service retail offices examined under CRA: 45,000 in 2023
Directional15Cyber risk management scores averaged 85/100 for large banks in 2023
Single source16Tier 1 leverage ratio 7.2% minimum met by 99.5% banks Q4 2023
Verified17Total capital ratio averaged 15.2% exceeding 10.5% well-capitalized
Verified18GSIB surcharges applied to 8 banks totaling $25 billion capital req 2023
Verified19Institutions in troubled condition per FDIC: 42 in Q3 2023
Directional20Volcker Rule compliance violations fined $100 million in 2023 cases
Single source21CRA small business loan exam volume 12 million loans reviewed 2023
Verified22Supplementary leverage ratio for Category I banks 6.5% avg Q4 2023
Verified23Fair lending complaints to CFPB: 15,000 from banking in 2023
Verified24OCC enforcement actions 250 including 45 cease/desist in 2023
Directional25FDIC insurance coverage limit remains $250,000 per depositor 2023
Single sourceRegulations 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
1Net interest income for FDIC-insured banks was $656 billion in 2023, up 26% YoY
Verified2Return on assets (ROA) averaged 1.12% for the industry in Q4 2023
Verified3Net income totaled $257 billion for all insured banks in 2023
Verified4Noninterest income grew 8% to $450 billion industry-wide in 2023
Directional5Return on equity (ROE) reached 10.6% average for commercial banks in Q4 2023
Single source6Provision for credit losses expense was $114 billion in 2023, up from prior year
Verified7Net interest margin (NIM) expanded to 3.30% in Q4 2023 from 3.25% prior
Verified8Trading revenue for large banks was $25 billion in Q3 2023
Verified9Fee income from deposit services accounted for 15% of total revenue in 2023
Directional10Operating expenses rose 5.2% to $580 billion for banks in 2023
Single source11Efficiency ratio averaged 58.4% for community banks in Q4 2023
Verified12Mortgage banking income declined 12% to $15 billion in 2023 due to high rates
Verified13Gains on sale of loans contributed $8 billion to noninterest income in Q3 2023
Verified14Pre-tax pre-provision income hit record $900 billion in 2023 for industry
Directional15Dividend payouts by banks totaled $120 billion in 2023
Single source16Interest expense on deposits increased 150% YoY to $250 billion in 2023
Verified17Total revenue for top 5 banks exceeded $600 billion in 2023
Verified18Pretax income before extraordinary items $290 billion for banks in 2023
Verified19Interest income surged 20% to $1.1 trillion on loans and securities 2023
Directional20Service charges on deposits generated $45 billion in noninterest income 2023
Single source21Gains on sales of other real estate owned $2 billion in Q4 2023
Verified22Total other noninterest income $180 billion, up 10% YoY in 2023
Verified23Salaries and employee benefits expense $320 billion, 55% of operating costs 2023
Verified24Premises and equipment expenses $55 billion industry total in 2023
Directional25FDIC assessment fees collected $15 billion in 2023
Single source26Venture capital income from equity investments $5 billion for banks 2023
Verified27Net securitization income $3 billion in Q3 2023 for reporting banks
Verified28Extraordinary gains/losses netted -$1.2 billion in 2023 industry
Verified29Income taxes paid by banks $60 billion in full-year 2023
Directional30ROA for large banks 1.15% vs 0.95% for community banks Q4 2023
Single source31NIM for community banks 3.45% in Q4 2023
VerifiedRevenue 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