First quarter bank income mixed

The FDIC has released its Quarterly Banking Profile for the first quarter 2016. A statement was issued by Chairman Gruenberg, in which he noted, “The banking industry reported mixed results for the first quarter. By many measures, the industry had a positive quarter. However, noncurrent loans to the oil and gas industry rose sharply and net interest margins remained low by historical standards.” Net income declined 2% to $39.1billion. Community bank net income rose 7.4 % to $5.2 billion. Noncurrent loans posted the first increase in six years led by energy loans. The 12 month growth rate for loan balances is the highest since the second quarter 2008.