Industries Banking/Finance

Federal report shows improved profitability at Virginia banks

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A federal banking report shows that the profitability of Virginia banks generally improved in the second quarter in comparison to the past two years.

A banking performance summary released Tuesday by the Federal Deposit Insurance Corp. showed return on equity among 114 Virginia financial institutions was 9.56 percent on June 30. That figure is up from 8.34 percent at the same time last year and -1.5 percent on June 30, 2009.

Return on assets was 1.18 percent on June 30 this year, up from 1.01 percent last year and –0.17 percent in 2009.

Slightly more than 60 percent of the financial institutions reported earnings gains during the April through June period this year, down slightly from 67.8 percent the same quarter last year but nearly twice as high as the 32.50 percent reporting gains in the second quarter of 2009.

The ratio of nonperforming assets to total assets was 1.78 percent in the latest quarter, an improvement from 2.28 percent last year and 2.14 percent in 2009.

On June 30, 2011, Virginia banks reported total assets of $506 billion, total deposits of $356.7 billion and total net income of $2.95 billion.

Nationwide, FDIC-insured institutions had a total profit of $28.8 billion in the second quarter, a $7.9 billion improvement from the second quarter 2010.

The FDIC said the report marked the eighth consecutive quarter that earnings registered a year-over-year increase. Lower provisions for loan losses were responsible for most of the improvement in earnings. 

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