Financial institutions reported $37.6 billion in net income in the third quarter, up more than 6 percent from $35.2 billion in the same period a year ago, according to the Federal Deposits Insurance Corp.’s Quarterly Banking Profile.
The report attributed the improved earnings to more noninterest income and lower provisions for loan losses.
The FDIC’s list of problem banks declined for the sixth consecutive quarter, from 732 to 694. The total assets of the 694 problem banks are $262 billion, down from $282 billion.
About 57 percent reported quarterly net income improvements over 2011. About 10 percent of institutions saw net losses, down from 14 percent.
In addition, total loan balances increase, the flow of money into deposit accounts increased and the number of bank failures fell for the eighth time in the last nine quarters.
“This was another quarter of gradual but steady recovery for FDIC-insured institutions,” said Martin Gruenberg, FDIC chairman. “Signs of further progress were evident in a number of indicators, such as loan growth, asset quality and profitability.”
In Wisconsin, 269 insured institutions reported $640 million in net income for the third quarter, up from $415 million in 2011. Total assets were $97.6 million for the quarter, up from $97.3 in the same period last year.
About eight percent of the reporting institutions were unprofitable, compared with 13 percent in the third quarter of 2011. About 69 percent reported earnings gains, compared with 60 percent in the same period a year ago.
However, losses from noncurrent loans – those that are 90 days or more overdue – have increased almost 14 percent statewide from the same period a year ago. Nonperforming assets were just 2.71 percent of total loans and leases, compared with 3.62 percent last year.
