US Community Bank Profits Rise as Overall Bank Earnings Fall 7.3 Percent

Two women walk past a video $100 bill during a tour of the "Money in Motion" exhibit at the Philadelphia Federal Reserve Bank in Philadelphia, Penn., on July 2, 2003. William Thomas Cain/Getty Images

Earnings at U.S. banks fell by 7.3 percent in the third quarter due to “nonrecurring events at three large institutions,” which offset overall strong loan growth and a low number of problem banks, according to the Federal Deposit Insurance Corp.’s (FDIC) quarterly banking sector report.

Banks and savings institutions whose depositors are insured up to the coverage limit by the FDIC generated net income of $57.4 billion in the period, which represents a drop of $4.5 billion from a year ago, the report notes (pdf). The average return on assets fell to 1.25 percent from 1.41 percent year-over-year.