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Bank earnings fell by 2% in the first quarter, mostly due to higher loan loss provisions because of troubles in the energy sector. But there were other alarming signs — and some positive ones — in the FDIC's Quarterly Banking Profile report. Following are the most significant:
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Noncurrent Loans

The overall picture for noncurrent loans was worrying, as they rose by $3.3 billion during the first quarter, the first quarterly increase in two years. But the lion's share of that was due to noncurrent commercial and industrial loans, which rose by $9.3 billion, the largest quarterly increase in such loans in 29 years.
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Loan Loss Reserves

Banks set aside $12.5 billion in provisions for loan losses in the first quarter, a 50% increase, the largest such jump in more than three years. Slightly more than one-third of all banks reporter higher loan loss provisions than the year before. Most of the increase was at larger institutions.
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Net Interest Margins

The average net interest margin rose to 3.10%, up from 3.02% a year earlier, with 57% of banks reporting year over year improvements. Still, net interest margins remain low by historical standards due to the low interest rate environment.
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Loan Growth

Total loans and leases jumped by $100 billion during the first quarter of the year, driven mostly by a $71 billion increase in commercial and industrial loans. That was mostly due to Wells Fargo's acquisition of GE Capital's commercial lending and leasing business.
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DIF Ratio

The FDIC's Deposit Insurance Fund continues to make steady progress, nearly reaching the minimum 1.15% ratio of reserves to insured deposits after the financial crisis wiped out the fund.
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