#2023-12, June 2, 2023

House & Senate Approve Debt Ceiling Deal; President Biden Expected to Sign

Late Thursday evening, the Senate, by a 63-36 vote, approved a bipartisan deal to suspend the debt ceiling until January 2025.  The Senate’s vote, which came after rejecting 11 amendments that would have delayed the bill’s ultimate passage, allows President Biden (D- Delaware) plenty of time sign it before Monday -- when the government would reportedly no longer be able to pay its bills without borrowing more money.

The deal, which cleared the House 314-117 on Wednesday, was struck days earlier by House Speaker Kevin McCarthy (R-California) and President Biden.  The Congressional Budget Office says the legislation will reduce the deficit by $1.5 trillion over the next 10 years.

President Biden is expected to sign the bill Friday evening.

FDIC Releases First Quarterly Banking Profile Following High-Profile Closures

According to the agency’s most recent Quarterly Banking Profile, FDIC-insured banks and savings institutions earned $79.8 billion in the first quarter of 2023.  The profile, which was released earlier this week, is the first report released since the failures of Silicon Valley Bank and Signature Bank in March.  FDIC Chairman Martin Gruenberg did caution that the newly released data does not fully reflect the effects of those failures on the broader industry.

Of note, Q1 net income increased by $11.5 billion, or 16.9%, from Q4 2022, but after excluding the income effects of the banks that acquired SVB and Signature, quarter-over-quarter net income was roughly flat, according to the FDIC report.  Total deposits were $18.7 trillion, down 2.5% from Q4, the largest reduction reported in the profile since data collection began in 1984, according to Chairman Gruenberg.  The decline was driven by a reduction in uninsured deposits, which dropped 8.2%, while insured deposits increased by 2.5%.  The number of banks on the FDIC’s problem bank list increased by four to 43 banks in Q4, according to the FDIC. Total assets held by problem banks were $58 billion, up $10.5 billion.

To review the FDIC’s Quarterly Banking Profile, click here.

MBA, ABA Encourages Members to Participate in CSBS Survey

MBA is reiterating ABA’s recent call requesting community banks to participate in the 2023 Conference for State Bank Supervisors’ National Survey of Community Banks (CSBS).  This year’s questions focus on current bank conditions and emerging issues, including inflation, product service design and offerings, banking expenses and the future of community banking.

Participating banks will need to provide their FDIC certificate number, but all information collected is for research purposes only and will not be linked to any institution.  The approximately 20–30-minute survey is open through June 30.  Results are due to be released in conjunction with the annual Community Banking Research Conference, which is jointly sponsored by CSBS, the FDIC and the Federal Reserve.

‌To view the survey, click here.