Banks See Dip In Second Quarter Profits

Second-quarter profits at Arkansas’ 92 federally insured banks were well below year-ago levels and fell further behind the rest of the nation, according to the Federal Deposit Insurance Corp.’s  quarterly banking profile.

For the period ended June 30, the FDIC reported net income of $62.6 billion in second-quarter 2019, an increase of $2.5 billion or 4.1% from the same period of 2018. Of the 5,303 insured institutions that posted financial results, 60% of all institutions reported a year-over-year increase in net income and less than 4% of institutions were unprofitable.

Federal banking regulators attributed the slight improvement in net income to a $4.9 billion, or 3.7% increase in net interest income, which is the money a bank can earning on assets they own. Nationally, the FDIC said the average return on assets remained stable at 1.38%, which is an improvement from 1.35% in the first quarter and 1.37% a year earlier.

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