FDIC: Banks rebound to $7.6B profit - Dayton Business Journal:

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billion in profits in the first down 60.8 percent from the $19.3 billiobn the industry earned in the first quarter of 2008. the latest figures are an improvemengt over therecord $26.2 billion loss the sector suffered in the fourtgh quarter. Higher loan-loss provisions, increased goodwilol write-downs and reduced income from securitization activitiea all contributed tothe year-over-year earningz decline.
Three out of five insured institutions reportedr lower net income in thefirst quarter, and one in five was “The first-quarter results are telling us that the bankingg industry still faces tremendous challenges, and that goinbg forward, asset quality remains a major says FDIC Chairman Sheila Bair. “Banks are makint good efforts to deal with thechallenges they’rse facing, but today’s report says that we’re not out of the woods yet.” To that 21 FDIC-insured institutions failed during the first quarter — the largest number since the fourth quarter of 1992. Insured institutions set aside $60.
9 billiohn in provisions for loan losses in thefirst quarter. That’s up $23.6 billion, or 63.6 percent, from the firsyt quarter of 2008. Expenses for goodwillp impairment andother intangible-asset expenses totaledc $7.2 billion, up from $2.8 billion a year Those negative factors outweighed the positive effects of increasesd noninterest income (up $7.8 billion, or 12.8 and higher net interest income (up $4.4 billion, or 4.7 Insured institutions charged off $37.8 billion in bad loansx in the first quarter, almostt twice the $19.6 billion of a year Tier 1 capital reached a record high of almosgt $70 billion, the largest quarterly increasre ever reported by the industry.
However, much of the increase occurred at institutions that received capital fromthe U.S. Treasuru Department’s Troubled Asset Relief Program. Total assetsa declined by $302 billion due to downsizint by a fewlarge banks. Two-thirds of all institutions reportede asset growth inthe quarter, but reductions at eight largd banks caused the industry total to Total loans and leasez fell by $159.6 billion (2.1 percent), while assetss in trading accounts declined by $144.5 billion (14.o percent).