The nation’s federally insured banks recorded their 15th consecutive quarter of year-over-year increased earnings, the Federal Deposit Insurance Corp. reported Wednesday.
While commercial banks and savings institutions insured by the FDIC reported a 15.8 percent increase in net income for the quarter ended March 31 over the same period in 2012, Colorado banks didn’t fare as well, the report shows.
The 104 state and federal banks based in Colorado reported first-quarter net income of $89 million, down from $100 million in the same quarter a year earlier, according to the FDIC data.
Total deposits statewide crept downward to $38.6 billion from $39.1 billion a year earlier — a far cry from the $80.6 billion reported in the first quarter of 2009.
“Any number of factors can play into how the revenues are affected,” Don Childears, president and CEO of the Colorado Bankers Association, said during the group’s annual conference in Denver.
“Sometimes it’s simply the anomaly of a bank that has worked to shore things up,” he said.
Nationally, though, the banking picture has improved enough to give greater confidence to the notion that a recovery is in place and working.
“Today’s report shows further progress in the recovery that has been underway in the banking industry for more than three years,” FDIC Chairman Martin Gruenberg said in a statement, cautioning that the agency hasn’t eased its scrutiny. “Tighter net-interest margins and slow loan growth create an incentive for institutions to reach for yield, which is a matter of ongoing supervisory attention.”
The volume of souring assets, those past due between 30 and 90 days, nationally dropped to $80.2 billion for the quarter from $89.2 billion in the same period of 2012. The amount of bad credit-card debt dropped to nearly $8.4 billion from $9.5 billion.
Charge-offs improved, too, at $16 billion in uncollectible loans for the first quarter, down $5.8 billion from 2012.
Industry experts called it firm evidence that the recovery is in full swing.
“Banks’ portfolios have grown stronger as problem loans continue to decline,” said James Chessen, chief economist at the American Bankers Association. “Our industry continues to put losses behind it, with most problems now firmly in the rearview mirror.”
Questions linger with the slow growth in small-business lending, which some attribute to a cautious attitude.
“While business loans grew for the 11th consecutive quarter, the pace has slowed,” Chessen said. “Banks are working aggressively to make loans, but businesses are hesitant to expand amidst the specter of higher taxes, uncertain health-care costs and new regulations.”
David Migoya: 303-954-1506, dmigoya@denverpost.com or
