Community banks reported net income growth of 28.7% in the second quarter from the same period last year, according to the FDIC's Quarterly Banking Profile.
Latest Numbers: Community banks reported:
- Annual net income growth of $1.9 billion.
- A 7.2% increase in net interest income from a year ago on lower interest expenses and higher commercial-and-industrial loan interest income.
- A 4.3% increase in noninterest income from last year.
- A decline in net interest margins of 26 basis points to 3.25%.
- Declines in provision expenses of 98.1% from a year ago and 88.2% from the previous quarter to 0.18% of net operating revenue, a record low.
- The noncurrent rate for total loans declined 5 basis points to 0.68%, while the net charge-off rate declined 8 basis points to 0.05%.
Capital: Community bank equity capital grew 3% during the quarter, though the leverage capital ratio declined 13 basis points to 10.14% as growth in average assets outpaced tier 1 capital formation.
Overall Industry: The overall banking industry reported a 281% net income increase from a year ago on further economic growth and improved credit conditions.
Deposit Insurance Fund: The DIF balance rose $1.2 billion from the first quarter to $120.5 billion, and the reserve ratio increased 2 basis points to 1.27%.
Mergers and Openings: During the quarter, three new banks opened, 28 merged with other FDIC-insured institutions, and none failed.
Credit Unions: Separately, the National Credit Union Administration said federally insured credit unions reported 126.8% net income growth in the second quarter from a year ago on growth in other operating income and a decline in loss provisioning.