Community Bank Net Income Rises in Q2

Community bank net income rose 1.1% in the second quarter but remained down 8.2% from a year ago on higher noninterest expense, according to the FDIC’s latest Quarterly Banking Profile. 

For the second quarter, community banks reported:  

• The pretax return on assets ratio increased 1 basis point from the previous quarter to 1.14%. 
• The net interest margin increased 7 basis points from the last quarter to 3.30%, reversing a five-quarter declining trend.
• Net operating revenue increased 3.2% quarter-over-quarter on higher real estate loan income and higher net gains on loan sales.
• Noninterest expense increased 2.1% from the previous quarter and 5.6% from a year ago, and quarterly provision expense was up 18.2% and 30.6%, respectively.
• Unrealized losses on securities declined 1.4% from the previous quarter and 12.3% from the previous year.
• Total assets increased 0.5% quarter-over-quarter and 3.9% year-over-year.
• Loan and lease balances grew 1.7% from the previous quarter and 6.3% from the prior year, and loan growth was broad-based across categories.
• Deposits increased 0.2% from the previous quarter and were up 3.5% from a year ago.