Springfield, MO

Log in Subscribe

FDIC-insured institutions post aggregate 29% earnings jump

Posted online

Federal Deposit Insurance Corp.-insured institutions together produced a 29 percent gain in earnings during the third quarter.

The 5,477 nationwide reporting institutions posted an aggregate 29.3 percent jump in net income to $62 billion compared with the same time period a year earlier, according to a news release.

The two publicly trading banking companies based in Springfield contributed to the aggregate third-quarter earnings growth.

Great Southern Bancorp Inc. (Nasdaq: GSBC) reported a 93 percent jump in net income to $22.5 million, and Guaranty Federal Bancshares Inc.’s (Nasdaq: GFED) profits more than doubled to $3.9 million.

"Improvement in net income was led by higher net operating revenue and a lower effective tax rate,” FDIC Chairwoman Jelena McWilliams said in the release. "While the performance results were strong, the extended period of low interest rates and the competition to attract loan customers have led to heightened exposure to interest-rate risk and credit risk. Banks must maintain prudent management of these risks in order to sustain lending through the economic cycle."

Third-quarter financial notes:
    •    Community banks — which made up the vast majority of the reporting institutions, at 5,044 — improved net income by 21.6 percent to $1.2 billion.
    •    Institutions identified as “problem banks” — those in danger of failing — dropped to 71 banks in total, the lowest number since third-quarter 2007.
    •    The percentage of unprofitable banks dropped to 3.5 percent from 4 percent a year earlier.


No comments on this story |
Please log in to add your comment
Editors' Pick

Open for Business: carGo Technologies LLC

Cape Girardeau-based carGo Technologies LLC launched its ride-hailing and delivery services in the Springfield market; the 90-bed, $8.7 million Lake Stockton Healthcare Facility began operating; and First Home Bank officially changed its name to Stockmens Bank.

Most Read Poll
What Proposition S project are you most anticipating?

View results