Academic journal article Journal of Accountancy

FDIC-Insured Commercial Banks and Savings Institutions Posted an Aggregate Profit of $18 Billion in the First Quarter of 2010, Driven Mostly by a 16.6% Year-over-Year Drop in Provisions for Loan Losses

Academic journal article Journal of Accountancy

FDIC-Insured Commercial Banks and Savings Institutions Posted an Aggregate Profit of $18 Billion in the First Quarter of 2010, Driven Mostly by a 16.6% Year-over-Year Drop in Provisions for Loan Losses

Article excerpt

FDIC-insured commercial banks and savings institutions posted an aggregate profit of $18 billion in the first quarter of 2010, driven mostly by a 16.6% year-over-year drop in provisions for loan losses. It was the industry's most profitable quarter since the first quarter of 2008, although the FDIC noted it is "still low by historical standards." The regulator said the extent of improvement in both noncurrent loans and charge-offs was understated because of the implementation of new accounting standards--FASB Statement no. 166 and Statement no. 167.

Earnings improved from $5.6 billion in the first quarter of 2009. Full financial results for the first quarter are in the FDIC's latest Quarterly Banking Profile, available at tinyurl.com/y89xzyn.

Despite the improved overall profit picture, the number of institutions on the FDIC's "Problem List" rose to 775, up from 702 at the end of 2009. The total assets of "problem" institutions increased from $403 billion to $431 billion.

Provisions for loan losses in the first quarter totaled $51.3 billion--S10.2 billion (16.6%) lower than a year earlier. Although the percentage of loans and leases that were noncurrent (90 days or more past due or in nonaccrual status) rose from 5.38% to 5.45% at the end of the first quarter, the highest level in the 27 years that insured institutions have reported these data, the $17. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.