Banks Expand Staffing, Increase Earnings

There were 6,656 financial institutions insured by the Federal Deposit Insurance Corp. as of June 30. The total included 5,757 commercial banks and 899 savings institutions.

Banks that reported they had an asset concentration in mortgages accounted for 570 of the overall financial institutions.

The total count was down from the 6,730 as of the first quarter and 6,940 as of the second-quarter 2013.

The FDIC classified 354 banks as “problem institutions.” Seven banks failed during the second quarter, while the number was 12 for the first half of this year.

The report indicated that 61 banks were absorbed through mergers.

Community banks accounted for 6,163 of the second-quarter count. They held $2 trillion of the assets and $1.7 trillion of the deposits.

Bank assets included $2.3442 trillion in residential assets. Holdings were up from $2.3258 trillion three months earlier though less than $2.3849 trillion a year earlier.

One-to-four-family residential loans accounted for the $1.8450 trillion of the most recent total. Delinquency of at least 30 days was 8.08 percent as of June 30.

Home-equity lines of credit made up $0.4992 trillion of the residential investment portfolio. Home-equity delinquency was 3.32 percent.

Banks also collectively owned $0.2232 trillion in construction-and-development loans as of the second-quarter 2014, while non-farm non-residential real estate assets were $1.1255 trillion.

C&D delinquency was 3.29 percent, and the 30-day delinquency rate was 2.00 percent on non-farm non-residential loans.

Combined net income for FDIC-insured banks was $40.2 billion, up $3 billion from the prior quarter and $2 billion more than a year earlier..

As of the latest period, 2,060,002 people were employed at banks. Industry headcount expanded from 2,058,867 in the first quarter.