The second quarter 2011 fdic quarterly banking

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Unformatted text preview: Earnings: Despite lower revenues, U.S. banks’ reported net income increased by 38%, largely attributable to lower expenses for loan-loss provisions experienced by larger banks and credit card portfolios. The average return on assets (ROA) for the industry rose to 0.85% in Q2 2011 from 0.63% a year earlier, while community banks lagged at 0.57%, rising from 0.26%. This positive trend in ROA was not the case for Colorado banks, which declined to 0.60% from 0.69%. • Noncurrent Loans: Noncurrent loans declined nationally by 6.5%, marking the fifth-consecutive quarterly decline, with levels now 22% below their 2010 peak. Colorado banks likely experienced an increase from their high commercial real estate (CRE) exposure. The national equity to assets ratio reached 11.3%, a post-1938 high, but still below new FDIC targets. • Deposit Growth: Total deposits in all FDIC institutions increased by 1.7% in Q2 2011. The largest segment of growth in deposits was 15.9% for noninterest bearing accounts over...
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