As we approach the third anniversary of Silicon Valley Bank’s collapse in March 2026, the latest FDIC Quarterly Banking Profile sends an important message to CFOs, CEOs, and business owners: the banking system is generally healthy, but your company’s deposits may be more exposed than you think.
Slow Growth in Insured Deposits
The banking industry reported solid results overall. Banks earned $77.7 billion in net income for the quarter, with a return on assets of 1.24%. Total deposits grew a healthy 1.8% during the quarter. However, FDIC-insured deposits (the portion protected up to the standard $250,000 limit per depositor, per bank) grew by only 1.0% in the fourth quarter and just 1.3% over the full year. Meanwhile, uninsured deposits (amounts above the insurance limit) jumped by $214.7 billion in the quarter alone. This means a growing portion of business cash is sitting without full government protection.
Unfortunately, many companies often keep large cash balances concentrated in just a few banks. When insured deposit growth lags behind total deposits, it signals higher risk in any potential bank stress situation. This is why for business owners and financial decision makers, full deposit protection is vital –business continuity can depend on it.
Commercial Real Estate (CRE) Concerns Continue
Overall loan quality looks stable, but commercial real estate remains a weak spot. The industry’s net charge-off rate (the percentage of loans banks had to write off as losses) stood at 0.63% in Q4 – still 15 basis points higher than the pre-pandemic average. For larger banks, past-due rates on non-owner-occupied CRE loans (such as office and retail properties) are still much higher than before the pandemic, though they have improved from their recent peak. With CRE still pressuring some banks, it’s another reason to make sure your operating cash is fully protected.
Positive Step: Updated Bank Supervision Rules
The FDIC’s recent changes to simplify supervisor requirements for banks are important and necessary for the long-term health and success of community banks. These updates reduce unnecessary burden while keeping examiners focused on real financial risks.
Importantly, Chairman Travis Hill noted during the press conference that these changes have not allowed “bad banks” to fall off the problem bank list. The list grew slightly to 60 institutions (1.4% of all banks), which remains well within normal historical levels for non-crisis times. No banks failed during the quarter, and the Deposit Insurance Fund reserve ratio improved to 1.42%.
What This Means for You
The Q4 Quarterly Banking Profile shows that while the system remains resilient and strong, it is still vital for depositors to take the risk of uninsured deposits seriously. The system still holds significant amounts of uninsured deposits. The Deposit Insurance Fund is not large enough to cover another SVB level failure. History shows us that banks can have favorable call reports and great management – and still fail. It’s vital that you protect and insure your cash with the same rigor you insure all your business assets.
