US Banks Continue to Struggle with Deposits and Securities Losses

Banks' unrealized losses on securities, mostly Treasury securities and government-guaranteed mortgage-backed securities, held by all FDIC-insured commercial banks in Q1 fell by $102 billion from the prior quarter, to $516 billion. This is a cumulative loss over time on all securities from the purchase, and not an additional loss incurred in the quarter. It was the second quarter in a row of declines: They have now dropped by $174 billion, or by 25%, from the peak in Q3 2022, when unrealized losses had hit $690 billion, according to FDIC data on bank balance sheets released on Wednesday.