This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

U.S. Banks' Earnings Rise Again

The industry's aggregate net interest margin -- the average yield on loans and investments, less the average cost for deposits and wholesale borrowings -- narrowed to 3.46% during the second quarter, from 3.52% the previous quarter, and 3.61% a year earlier.

A very bright note for the industry was that total loans and leases grew by $102 billion, or 1.4%, during the second quarter, with commercial and industrial loans increasing by $48.9 billion, or 3.6%; while residential mortgage loans increased by $16.6 billion, or 0.9%; and credit card balances grew by $14.7 billion, or 2.3%. The industry's total loans and leases grew by 2.7% year-over-year, to $7.513 trillion, as of June 30.

There were 732 "problem institutions" as of June 30, according to the FDIC, declining from 772 the previous quarter, and 865 a year earlier. During the second quarter, 15 banks and thrifts failed.

Illustrating the difficult environment for raising money, gaining state or federal approval for a new banking charter, and operating a small community bank in the face of myriad new regulatory requirements, the FDIC said that "this is the fourth quarter in a row in which no new charters have been added," and that "it has been more than six quarters since the last time a new charter was created other than to absorb a failed bank."


-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.34 -2.90%
C $45.43 -2.70%
JPM $62.18 -2.50%
WFC $49.81 -1.50%
AAPL $94.94 1.40%


Chart of I:DJI
DOW 17,733.99 -157.17 -0.88%
S&P 500 2,059.44 -21.99 -1.06%
NASDAQ 4,760.5310 -57.0630 -1.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs