The Federal Deposit Insurance Corportation’s latest report on bank health presents a mixed picture, with both profits and bank failures on the rise. That trend extends to Florida, where many banks appear to be on the mend, though losses in commercial real estate pose problems for some institutions.
The number of banks on the FDIC’s confidential “problem list” increased from 702 to 775 nationwide, while 41 banks failed during the quarter that ended March 31, according to the agency’s Quarterly Banking Profile, released Tuesday.
Still, FDIC chairwoman Shiela Blair said during a briefing that “industry earnings are up. More banks reported higher earnings, and fewer lost money.”
In Florida, bank results for the first quarter of 2010 improved compared to the same period of 2009. FDIC-insured banks in the state lost $104 million overall, but most boasted slim profits or relatively narrow losses.
State-chartered commercial banks dragged down the results, losing $190 million, faring worse this year than during the same period last year, according to FDIC data for Florida. Those results were far better than the last quarter of 2009, though, when the same segment lost nearly $1.5 billion.
Florida’s commercial real estate market, which accounts for the majority of Florida lending, continues to suffer losses. During the briefing, John Corston of the FDIC said smaller institutions with substantial commercial real estate portfolios were most likely to face problems in the near future.
Read the FDIC’s full quarterly profile here:
FDIC Quarterly Banking Profile – Q1 2010 –
