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Springfield, MO
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. together posted aggregate second-quarter net income of $60.2 million, a roughly 25 percent increase compared with a year earlier.
FDIC officials cited federal tax reform, as well as higher net interest and noninterest income, for the gain by the 5,542 institutions, according to a news release.
“The banking industry experienced continued improvement in net interest income, noninterest income and loan performance this quarter,” FDIC Chairwoman Jelena McWilliams said in the release. “However, the interest-rate environment coupled with competitive lending conditions have led to heightened exposure to interest-rate, liquidity and credit risks.
“The industry must continue to position itself to be resilient through economic cycles.”
Second-quarter financial notes:
• Community banks — representing the majority at 5,111 insured institutions — posted a 21 percent increase in net income to $6.5 billion.
• The number of so-called problem banks, those in danger of failing, dropped to 82 during the quarter, the lowest number since fourth-quarter 2007.
• Loan balances rose 4.2 percent compared with the same quarter a year earlier.
Springfield-based publicly traded banking companies did not contribute to the overall earnings gain reported by the FDIC.
Great Southern Bancorp Inc.’s (Nasdaq: GSBC) profits dropped 14 percent to $16.2 million. Guaranty Federal Bancshares Inc. (Nasdaq: GFED) announced a 121.5 percent drop to a net loss of $343,000. Both companies cited atypical expenses.
Missouri State University’s science building, built in 1971 and formerly called Temple Hall, is being reconstructed and updated.