WASHINGTON (11/27/13)--Net income at Federal Deposit Insurance Corp.-insured commercial banks and savings institutions declined by $1.5 billion between the 2012 and 2013 third quarters, totaling $36 billion as of Sept. 30.
This is the first time in 17 quarters--since the second quarter of 2009--that earnings registered a year-over-year decline, the FDIC noted. The decline was mainly the result of a $4 billion increase in litigation expenses at one institution, the agency said, but lower revenue from reduced mortgage activity and lower gains on asset sales also played a part.
Nearly 9% of FDIC-insured banks were unprofitable during the quarter.
"Most of the positive trends we have been seeing in industry performance continued in the third quarter," FDIC Chairman Martin Gruenberg said. "Fewer institutions reported quarterly losses, lending grew at a modest pace, credit quality continued to improve, more banks came off the 'Problem List,' and fewer banks failed."
Other 2013 third quarter results reported by the FDIC include:
For more on the bank financial results, use the resource link.