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ABA Statement on FDIC's Fourth Quarter Bank Earnings Report

“The latest FDIC data show that America’s banks are healthy, well capitalized and making the loans that help Main Street businesses succeed. With tax reform helping to spur business expansion, banks stepped up to meet increased loan demand from businesses of all sizes. Business lending picked up 7.8 percent over the year, and total bank lending saw the biggest quarter-over-quarter increase since 2015. Bank lending grew a healthy 4.4 percent to over $10 trillion in total loans, an increase of $431 billion in 2018. Depositors benefited from increased competition for funds as banks looked to attract more deposits to supply loan demand.  
 
“As always, banks are keeping a watchful eye on the state of the economy and are well positioned to manage any changes that affect the business landscape, including additional interest rate moves by the Fed. Banks continue to maintain credit discipline, and are building up reserves for potential loan losses as they look ahead to the twilight of this economic cycle. This is on top of a record $2 trillion in capital that provides a strong foundation for financial security and economic growth.
 
“The FDIC’s renewed focus on supporting de novo banks is encouraging as new institutions show the promise of a brighter future for communities and the industry. With a solid foundation of capital and high-quality assets, banks remain well positioned to support continued economic growth in 2019 and beyond.”

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $18 trillion banking industry, which is composed of small, regional and large banks. Together, America’s banks employ more than 2 million men and women, safeguard $14 trillion in deposits and extend more than $10 trillion in loans.

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