FDIC-Insured Institutions Reported Net Income of $68.4 Billion in Third Quarter 2023

Reports from 4,614 commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reflect aggregate net income of $68.4 billion in third quarter 2023, down $2.4 billion (3.4 percent) from the prior quarter, according to FDIC officials.

First- and second-quarter income benefitted from non-recurring gains from the accounting treatment for the acquisition of the three large bank failures this spring, the officials said. 

They said excluding the one-time gains, net income would have been roughly flat for the past four quarters.

Financial results for third quarter 2023 are included in the FDIC’s latest Quarterly Banking Profile.

According to the FDIC:

* Net income decreased from the prior quarter, driven by lower noninterest income and higher realized losses on securities.

* Net interest margin, what a bank earns in interest on loans compared to the amount it pays in interest on deposits, increased from the prior quarter to 3.30 percent.

* Unrealized losses on securities increased from the prior quarter.

* Community banks reported lower net income from the prior quarter.

* Loan balances increased From last quarter and a year ago.

* Total deposits declined for a sixth consecutive quarter.

* Asset quality metrics remained favorable despite modest deterioration.

* The Deposit Insurance Fund Reserve Ratio rose to 1.13 percent.

“The banking industry continued to show resilience in the third quarter,” said FDIC Chairman Martin J. Gruenberg. “Net income remained high, overall asset quality metrics remained favorable, and the industry remained well capitalized.”

Gruenberg added, “The banking industry still faces significant downside risks from the continued effects of inflation, rising market interest rates, and geopolitical uncertainty."

And he said, "Deterioration in the industry’s commercial real estate portfolio is beginning to materialize in office properties. These issues, together with funding and earnings pressures, will remain matters of ongoing supervisory attention by the FDIC.”

Makai Capital Partners' Paladin Holdings Acquires Texize, Inc.

Paladin Holdings LLC, a portfolio company of Makai Capital Partners, acquired Mauldin, S.C.-based Texize, Inc., a leading regional manufacturer of industrial and commercial soaps, detergents, and other associated cleaning products.

Financial terms weren’t disclosed.

"Texize has strong brand equity and a customer loyalty that make it an ideal fit for our market positioning and portfolio strategy," said Andrew Fulford, managing partner of Makai Capital Partners.

The Texize Chemical Company incorporated in 1946 and produced both industrial and household cleaning products for nationwide distribution.

In 1986, the Dow Chemical Company acquired the Texize consumer products division.

Since that time, Texize has focused on producing industrial grade cleaning products and chemicals used in a variety of industrial production processes.

Along with Makai Capital Partners, Capital For Business, Inc. and Konza Valley Capital, Inc. are equity investors in Paladin Holdings. Parkside Financial Bank & Trust of St. Louis, MO was the senior lender on the transaction. 

EventWorks, Quest Events Combine to Join Forces

EventWorks, the Southeast's event rental provider, and Quest Events, the nation's leading drape and scenic elements provider, unveiled their strategic combination, marking a significant milestone in the event industry.

Financial terms weren’t disclosed.

Officials said the merger brings together two organizations to fortify strengths, broaden reach and deliver a full-service experience to event professionals.

EventWorks and Quest Events will seamlessly integrate their offerings, providing expanded selection and services to a broad clientele across multiple locations, the officials said.

The combined organization will employ approximately 780 team members and manage over 550,000 square feet of warehoused equipment nationwide, supporting approximately 50,000 events annually.

EventWorks is the Southeast's largest event rental provider with locations across five states and eight cities, including Charleston, Myrtle Beach, Savannah, Jacksonville, Birmingham, Atlanta, Nashville, and Orlando. 

Quest Events, headquartered in Frisco, Texas, is North America's market leader in providing pipe and drape, scenic, and furnishing rental solutions to the AV, hospitality, events, bridal, and exhibition industries.

It has 16 locations across the U.S. 

What To Do If You Can’t Make Car Payments

Trouble making car payments? Worried about repossession? Unexpected life events, like a job loss or drop in income, may affect your ability to pay your bills, including car payments.

If you’re worried that you won’t be able to make your next car payment, take action as soon as possible, according to the Federal Trade Commission.

FTC officials say If you get behind on your payments, your lender could repossess your car — sometimes without warning.

For consumers:

Contact your lender now. Don’t wait for the company to repossess your car. Many lenders will work with customers if they think you’ll be able to pay soon, even if the payments are slightly late. If your lender agrees to any changes, make sure you have them in writing for later.

Find out what rights you have in your state. Check with your State Attorney General. States have their own rules about how cars can be repossessed and what happens after.

See if you can refinance your loan. This could make sense if a lower interest rate or longer loan could make your car payment doable. Be aware that a longer loan with reduced payments could help your current situation but also could increase your total costs. Make sure you refinance with a credible lender or company.

But whatever you do, don’t try to avoid the problem by doing nothing, according to FTC officials. They say even if you have to miss a payment, don’t be afraid to talk to your lender to learn about your options.

Taking action early may help you limit or avoid paying more fees, the officials say.

A repossession could make it harder and more costly to get credit in the future. And you might be on the hook for any difference between what your lender gets for selling the car and what you still owe on it, plus any fees related to the repossession.

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