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PRACTICE AREAS: Foreclosure, Bankruptcy, Litigation, Loss Mitigation, REO, Title, and Eviction
SEVEN STATES: Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Texas
FDIC-INSURED BANKS
INCREASE EARNINGS, REPORT
LOWER DELINQUENCIES
Institutions insured by the FDIC recorded
their second-highest annual earnings ever in
2012, according to the FDIC's Quarterly Banking
Profile. High noninterest income and declining
loan loss provisions contributed to the increase,
the FDIC said.
Net income for all FDIC-insured institutions totaled $141.3 billion last year, a 19.3 percent
increase from net income recorded in 2011. The
factor contributing most to this increase was a 24.9
percent reduction in loan loss provisions. Rising
noninterest income—up 8 percent from 2011—
also contributed to increased earnings last year.
Earnings in the fourth quarter alone were 36.9
percent higher than their year-ago levels. Total
fourth-quarter earnings reached $34.7 billion.
Sixty percent of the 7,083 institutions insured by
the FDIC reported a year-over-year increase in
earnings in the fourth quarter. Fourteen percent
reported losses, compared to 20 percent with annual losses in the fourth quarter of 2011.
Average return on assets at the institutions
was also up from the previous year, 0.97 percent
in Q 4 2012 compared to 0.73 percent in Q 4 2011.
Increased gains on loan sales, rising trading revenues, and diminishing losses on foreclosure sales
all contributed to the rise in noninterest income,
according to the FDIC.
While more institutions added to their
reserves than reduced them in the fourth quarter,
total reserves at FDIC institutions declined by
$5 billion in the fourth quarter, marking the 11th
consecutive quarter of reduced reserves.
At the same time, a little more than half—
53.6 percent—of FDIC-insured banks lowered
their loss provisions. The $15.1 billion recorded in
the fourth quarter is 24.6 percent lower than the
amount recorded a year earlier and marks the 13th
consecutive quarter of loss provision declines.
Delinquencies at FDIC-insured institutions are also declining. The number of loans
90 or more days past due fell 5.5 percent in the
MOVING BUSINESS FORWARD.
fourth quarter of 2012. At the end of the year,
3.6 percent of loans held by the institutions were
noncurrent.
The total number of institutions insured by
the FDIC decreased from 7,181 to 7,083 in the
fourth quarter of last year as 88 banks merged
with others and eight failed.
STAT INSIGHT
8.2
Months' supply of
seriously delinquent homes
in the pipeline nationwide,
measured as time to sell
all homes with a mortgage
90 or more days past due
at the current sales pace.
Source: CoreLogic
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