NEW YORK ( TheStreet) -- The Federal Deposit Insurance Corporation reported that the banking system earned $42.2 billion in the second quarter of 2013, up 22.6% from the second quarter of 2012. The drivers of this improved profitability continue to be noninterest income and reduced loan loss provisions, not increased lending.This morning I read a post on Seeking Alpha that indicated that the larger regional banks including Bank of America ( BAC), JP Morgan ( JPM) and Wells Fargo ( WFC) have been experiencing reduced demand for mortgages due to rising interest rates. Bank of America announced plans to cut about 2,000 jobs from its mortgage origination business. JP Morgan expects to lose money on its mortgage operations in the second half of 2013. Wells Fargo expects its mortgage originations to decline by nearly 30% in the second half of the year. This slippage was already noticeable in the FDIC QBP for the second quarter of 2013.