US banks record 90% net income increase in 2021

Institutions insured by the Federal Deposit Insurance Corp. reported a collective 90% jump in profits during 2021.

The 4,839 commercial banks and savings institutions in the FDIC's latest report had aggregate profits of $279.1 billion last year, up from $132 billion in 2020, according to a news release.

“With strong capital and liquidity levels to support lending and protect against potential losses, the banking industry continued to meet the country’s credit needs while navigating the economic effects of the pandemic," said Martin Gruenberg, acting chair of the FDIC, in the release. “Still, challenges remain, as rising interest rates and geopolitical uncertainty could negatively affect bank profitability, credit quality and loan growth going forward.”

Institutions classified as community banks reported $511.6 million in net income last 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.

Great Southern Bank's full year profits were $74.6 million, a 26% increase, with Guaranty Bank coming in at $10.6 million, a 56% jump, according to past reporting.