Highlights of the FDIC's 1Q Quarterly Banking Profile
Published May 25, 2012 9:04 AM
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Updated June 1, 2012 11:04 AM
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Banks earned $35.3 billion, their highest level of profit since the second quarter of 2007.
Despite the high profit, however, lending was actually down, dropping 0.8% — a break from the past three quarters.
The good news was a continuing increase in the quality of loans. Both noncurrent loans and net charge-offs dropped in the first quarter.
More banks also saw an increase in earnings during the first quarter.
While historically at high levels, the number of "problem banks" also dropped.
The Deposit Insurance Fund's ratio of reserves to insured deposits continues to increase, but has a long way to go to hit the 1.35% statutory target.
