Community banks reported $6.5 billion in net income during the second quarter, a 21.1 percent gain from the previous year, according to the FDIC’s Quarterly Banking Profile. Net income rose on an 8 percent gain in net operating revenue and a lower effective tax rate. Loan-loss provisions declined 22.5 percent.
Overall, FDIC-insured institutions reported a 25.1 percent annual gain. The FDIC’s Problem Bank List declined from 92 to 82 banks, the lowest number since the fourth quarter of 2007. Merger transactions absorbed 64 institutions, two new charters were opened, and there were no failures.
The Deposit Insurance Fund balance rose by $2.5 billion to $97.6 billion, and its reserve ratio rose from 1.30 percent to 1.33 percent.
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