It’s been a good quarter for banks nationwide
C.R. ROBERTS
In its latest report, the Federal Deposit Insurance Corp. said Thursday that commercial and savings institutions nationwide have reported an aggregate profit of $35.3 billion for the first quarter. That’s a $6.6 billion improvement over the net income reported for the first quarter last year.
Also:
• More than two-thirds of all institutions – 67.5 percent – reported higher net income over a year ago.
• The share of institutions reporting net losses for the quarter fell to 10.3 percent from 15.7 percent a year ago.
• The average return on assets, a basic yardstick of profitability, rose to 1.02 percent from 0.86 percent.
• Banks and thrifts nationwide charged off $21.8 billion in bad loans during the quarter, down $11.7 billion, or 34.8 percent, from the same quarter in 2011.
FDIC Acting Chairman Martin Gruenberg said in a release, “The condition of the industry continues to gradually improve.”
For banks and thrifts in Washington, the FDIC reported:
• 71 institutions employed 13,284 workers, down from the 79 banks that employed 13,466 in the first quarter of 2011.
• Total assets in Washington fell to $63.26 billion from $65.34 billion a year before.
• Total deposits fell to $49.62 billion from $51.41 billion.
• The net interest margin rose to 3.97 percent from 3.82 percent.
• The return on assets rose dramatically to 0.74 percent from 0.22 percent at the end of the first quarter last year, and from 0.54 percent at the end of the fourth quarter 2011.
• The percentage of unprofitable institutions in the state fell to 22.54 percent from 29.11 percent a year ago, and from 33.3 percent at the end of 2011.
• The percentage of institutions with gains in earnings rose to 66.2 percent from 53.16 percent a year ago and 63.89 percent at the end of the fourth quarter.
So far this year nationwide, 24 banks have failed. That’s far below the 92 banks that shuttered last year and the 157 that closed in 2010 — the most for one year since the height of the savings and loan crisis in 1992.
In the first quarter, fewer bank failures allowed the insurance fund to strengthen.
The fund, which turned from deficit to positive in the second quarter of 2011, had a $15.3 billion balance as of March 31, according to the FDIC.
That compares with $11.8 billion at the end of last year.
The FDIC is backed by the government, and its deposits are guaranteed up to $250,000 per account. Apart from its deposit insurance fund, the agency also has tens of billions in loss reserves.
c.r.roberts@thenewstribune.com 253-597-8535
The Associated Press contributed to this report
