FDIC-insured institutions post 281% Q2 earnings gain

Institutions insured by the Federal Deposit Insurance Corp. improved their combined quarterly net income.

The 4,951 commercial banks and savings institutions insured by the FDIC posted an aggregate $70.4 billion in profits for the quarter that ended June 30, according to a news release. That's up 281% from a year earlier.

“With strong capital and liquidity levels to support lending and protect against potential losses, the banking industry continued to support the country’s needs for financial services while navigating the challenges presented by the pandemic," FDIC Chair Jelena McWilliams said in the release.

Nearly two-thirds of the FDIC-insured institutions had second-quarter earnings gains. Community banks, which represent the vast majority of the insured institutions, posted a 28.7% increase in quarterly net income year over year.

Springfield's two publicly traded banks, Great Southern Bancorp Inc. (Nasdaq: GSBC) and Guaranty Federal Bancshares Inc. (Nasdaq: GFED), contributed to the overall increase.

In July, Great Southern and Guaranty Bank both reported net income increases. Great Southern's profits were up 52% to $20.1 million, while Guaranty's earnings jumped 33.6% to $2.5 million from a year earlier, according to past reporting.