Federal Deposit Insurance Corp.-insured commercial banks and savings institutions posted an overall revenue boost of 4.8 percent in the third quarter, the largest increase since fourth-quarter 2009.
The 6,589 insured institutions produced net operating revenue of $171.3 billion for the three-month period ended Sept. 30, according to a news release.
Largely because of the revenue jump, net income for insured institutions increased 7.3 percent to $38.7 billion from $36.1 billion a year earlier. Of the institutions reporting, 62.9 percent recorded year-to-year quarterly earning increases, while the proportion of unprofitable institutions fell to 6.4 percent from 8.7 percent a year earlier.
“Most importantly, third-quarter income growth was based on revenue growth instead of lower loan-loss provisions,” FDIC Chairman Martin Gruenberg said in the release. “This can be a more sustainable foundation for continued earnings growth going forward."
Third-quarter financial notes for FDIC-insured institutions:
- Community banks - representing 93 percent of total institutions - earned $4.9 billion during the quarter, a 7.8 percent increase.
- Total loan and lease balances ticked up 0.6 percent to $8.2 trillion.
- The number of "problem" banks - described as those suffering from issues with capital, assets, management, earnings, liquidity or sensitivity to market conditions - declined to 329 from 354 a year earlier, marking the 14th consecutive quarter of year-to-year decreases.
As of Sept. 30, FDIC-insured institutions held assets of $15.3 trillion and deposits of $11.6 trillion, according to the release.[[In-content Ad]]
