More Disturbing Facts on Banks

When the FDIC released its second quarter bank profile (PDF file) last week, the number of problem banks jumping from 90 a quarter ago to 117 isn’t the only fact that causes concerns. Digging a little deeper into the report, you will find there are plenty of facts on banks that are not pretty at all. Declining revenue and increasing loan losses are the main theme for the second quarter. For instance:

• Net income of insured banks and institutions dropped 86.5% from a year ago to $5 billion, second lowest quarterly income since 1991;
• Loan loss provision was at $50.2 billion, more than 4 times the same period last year;
• Actual loan loss was at $26.4 billion, nearly tripled the amount in the second quarter a year ago;
• 18% of all insured banks and institutions didn’t make any money in the second quarter;
• Average return on assets was at 0.15%, comparing to 1.21% the second quarter of 2007;
• The amount of loans and leases 90 days or more past due increased nine consecutive quarter, by $26.7 billion last quarter.

It has been more than a year since the current financial crisis began and anyone seems to see any light at the end of the tunnel.

BTW, on Friday, August 29, Alpharetta, GA based Integrity Bank became the latest bank to fall and was taken over by the FDIC.

Featured Financial Products

• Ready to buy stocks/ETFs with zero commission? Check out the Zecco review and try Zecco Trading to get 10 free trades/month.
• Seeking higher returns for your cash? Take a look at the latest interest rates from leading online banks and find out where to get the most for your money.

Related Articles You Don't Want To Miss

1. FDIC Problem Banks List Grew to 117 Last Quarter
2. Banks Taken Over by FDIC in 2008
3. The Growing List of Failed Banks
4. How Safe Are My Banks?
5. NCUA Insurance Is As Good As FDIC Insurance