Quarterly report says banking lags broader rebound
The FDIC released its quarterly banking profile today. Chairman Bair’s press conference is here. The profile itself is here. Some highlights:
- The industry “essentially [broke] even” in fourth quarter, earning just less than $1 billion. Even that weak aggregate earning figure “represents significant improvement” over the record loss of a year ago, Bair said.
- Key factors in the year-to-year improvement were interest income, non-interest expenses and lower loan-loss provisions.
- Nevertheless, about one in three insured institutions reported a net loss for the fourth quarter.
- Non-current loans continued to rise, albeit at a slower pace — the third consecutive quarter in which non-currents rose at slower rates.
- 45 banks failed in the fourth quarter, driving the year-end total to 140, the highest annual total since 1992.
- All loan categories had declining balances in 2009. Total loans fell by 7.5 percent, the largest full-year decline since 1942.
- The problem-bank list topped 700.
