Q2 Community Bank Net Income Rises 3.4%

Community banks reported a 3.4% second-quarter increase in net income from the previous quarter and a 0.7% increase from the same period a year ago, according to the FDIC’s latest Quarterly Banking Profile.

For the second quarter, community banks also reported:

• Total assets increased 0.9% from the first quarter and 4.8% from the previous year.
• Total loans and leases rose 2.6% from the previous quarter; 12.5% from a year ago.
• Balances in all major loan portfolios rose from the previous quarter, with residential and commercial real estate driving the quarterly increase.
• Net interest margins declined 10 basis points from the prior quarter but increased 5 basis points from a year ago to 3.39%.
• The yield on earning assets rose 27 basis points quarter-over-quarter and 136 basis points year-over-year, while the cost of funds increased 37 basis points on a quarterly basis and 131 basis points from a year ago.
• Net operating revenue increased 0.4% quarter-over-quarter on higher non-interest income.
• Non-interest expense rose 1.5% from the previous quarter and 7.8% from a year ago.