FDIC report: Florida banks post decreases in assets, net margin

Florida’s banks performed slightly worse in the second quarter of 2023 relative to the first, a new report shows.

Every quarter, about two months after the quarter closes, the Federal Deposit Insurance Corp. publishes an updated Quarterly Banking Profile that provides a high-level overview of financial performance at insured institutions. The report provides perspectives on income and performance ratios at both the national and state level.

In Florida, total loans and leases were essentially flat from Q1 to Q2, at $196 billion. Total assets declined by about $2 billion to $285 billion, a decline of about 1%.

Net interest margin declined slightly, from 3.3% to 3.2%, while both return on assets and return on equity fell steeply. The average ROA statewide fell from 1.12% to 1.01%, while the ROE went from 12.56% to 11.2%. 

It’s a different trend from what was observed in the first two quarters of 2022. Last year, total loans and leases increased by about $15 billion from the first quarter to the second, and both the average ROA and ROE increased.