YOUR BUSINESS AUTHORITY

Springfield, MO

Net interest income propels FDIC-insured banks in Q3

Posted online

Because of increased net interest income, commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. reported third-quarter aggregate earnings of $47.9 billion, a 5.2 percent increase from a year earlier.

The 5,737 insured institutions that reported their quarterly earnings to the FDIC posted a combined 7.4 percent increase in net interest income to $127.5 billion, according to a news release.

“Revenue and net income were higher at most banks, net interest margin improvement was widespread, and the number of unprofitable banks and ‘problem banks’ continued to fall,” FDIC Chairman Martin Gruenberg said in the release. “While the quarterly results were largely favorable, the industry continued to see a gradual slowdown in the annual rate of loan growth. 

“An extended period of low interest rates and an increasingly competitive lending environment have led some institutions to reach for yield.”

Third-quarter financial notes:
    •    More than 80 percent of reporting banks posted higher net interest income than a year earlier.
    •    The 5,294 insured institutions that are community banks increased aggregate net income by $513 million to $6 billion.
    •    Total loans and leases rose 1 percent, or by $96.2 billion.

Comments

No comments on this story |
Please log in to add your comment
Editors' Pick

Open for Business: Social

CB Social House changed its name to Social; Tri-Lakes Community Theatre merged with The Branson Arts Council Inc.; and Springfield Community Gardens expanded into the kitchen at Cox North.

Most Read
What is the top priority among these road projects in the city’s capital improvements program?

View results

SBJ Live logo
MOST-WATCHED VIDEOS
Seek Wisdom from Many

“My whole life goal is to change the world, one connection at a time,” says Keisha Mabry. Mabry, who is an author, speaker, and social entrepreneur, says she had a “quarter-life crisis” and …

DNA Uncovers Best Version of You A simple swab of the inside of your cheek can lead to optimizing your nutrition and fitness program, personal medication profile, in addition to your ancestry. According to Austin O’Reilly, owner …
Booked - Go Back to the Basics “You’ve gotta go back to the basics,” says Larry Peterson, Executive Director, Habitat for Humanity of Springfield Missouri. Peterson says he gains leadership advice from General Ulysses S. …
App-titude - Due - A Simple To Do List Are your having trouble keeping track of everything on your to-do list? Due is an iOS app that helps you keep track of all your errands. “It essentially does just one thing — it keeps a due date …
Three Tips to Build Employee Buy In “First and foremost if you have any kind of idea that you want to bring forward, it has to be data driven,” says Kelly Lee, Business Program Manager on the Infrastructure Team at Facebook. Lee …