The Federal Deposit Insurance Corp. has released a new report stating that bank profits hit a record high of $43 billion in the second quarter of 2015. That figure represents a 7.3 percent increase ($2.9 billion) from the same period last year. Quarterly earnings were up at 59 percent of the 6,348 banks and savings associations insured by the FDIC. The percentage of unprofitable banks fell to 5.6 percent, the lowest level since 2005. Community banks also showed notable improvement with profits up at 5,881 institution representing an increase of 12 percent over last year.
The number of banks on FDIC’s “Problem List” fell to 228, the smallest number in nearly seven years. That list peaked at 888 in the first quarter of 2011. “The industry experienced a continuation of positive trends observed over recent quarters,” said FDIC Chairman Martin Gruenberg. “Revenue and income growth was broad-based, asset quality improved, loan balances increased, there were fewer problem banks, and only one bank failed during the quarter.
