Home >> News >> Data >> Fewer Banks See Risk of Failure Over Fourth Straight Quarter
Print This Post Print This Post

Fewer Banks See Risk of Failure Over Fourth Straight Quarter

The number of financial institutions at risk of failure dropped for the fourth consecutive quarter, falling from 813 to 772.

[IMAGE]

The ""FDIC"":http://www.fdic.gov/ reported Thursday that the decline signals the smallest number of ""problem"" banks since yearend 2009, with total assets waning from $319 billion to $292 billion.

The much-weakened Deposit Insurance Fund saw its first-quarter net worth rise to $15.3 billion, up from $11.8 billion over the fourth quarter last year. Insured deposits grew by an estimated 0.7 percent over the first quarter.

[COLUMN_BREAK]

""In summary, indicators of financial strength and asset quality continued to improve in the first quarter, but the process of recovery is clearly still ongoing,"" FDIC Acting Chairman ""Martin Gruenberg"":http://www.fdic.gov/about/learn/board/board.html#gruenberg said in a statement.

Commercial banks and savings institutions insured by the FDIC rebounded with an aggregate profit of $35.3 billion over the first quarter last year, reflecting $6.6 billion in improvements from $28.8 billion in net income for the industry.

The FDIC said that growth signaled the eleventh straight quarter for year-over-year earnings increases, even while loan balances slumped by $56.3 billion after a three-quarter climb.

Roughly 68 percent of all insured institutions offered up improvements in their quarterly net income from the year before. More institutions said that their net losses fell to 10.3 percent from 15.7 percent from a year earlier.

The average return on investments for banks ticked up to 1.02 percent from 0.86 percent last year.

""The improved financial condition of the industry has not yet translated into sustained loan growth,"" Gruenberg added. ""We will continue to watch this indicator closely.""

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
x

Check Also

Share of Homes Purchased Through iBuyers Growing

The use of technology and quick transactions are becoming popular options in many markets. How quickly is the segment of the market growing?

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.