WASHINGTON U.S. banks saw total deposits decline by a record 2.5% in the first quarter of 2023, and industry-wide profits were relatively flat after taking into account the effects of two large bank failures, the Federal Deposit Insurance Corporation said Wednesday.

The FDIC said the $472 billion in deposit outflows in the first quarter was primarily uninsured funds, as insured deposits actually rose 2.5% from January to March amid the failures of Silicon Valley Bank and Signature Bank. FDIC Chairman Martin Gruenberg said in a prepared statement the industry is "quite resilient."

(Reporting by Pete Schroeder)