Part 6/9:
Decline in Net Income: For over 4,600 FDIC-insured commercial banks and savings institutions, net income fell by $2.4 billion in the third quarter, dropping to $68.4 billion. This decline is driven by lower non-interest income and higher realized losses on securities.
Impact on Smaller Banks: Community and midsize banks are particularly vulnerable, with concerns about their ability to manage interest rate fluctuations and deteriorating asset portfolios. Smaller banks have also seen a decline in total deposits for six consecutive quarters, indicating liquidity issues.