Bank Earnings Up – But Number Of Troubled Banks Jumps, Too

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation reported an aggregate profit of $21.6 billion in the second quarter of 2010, a $26 billion improvement from the $4.4 billion net loss the industry posted in the second quarter of 2009, the FDIC reported today. This is the highest quarterly earnings total since the third quarter of 2007. Despite the improvement, however, earnings remained below historical norms. 

Moreover, the number of institutions on the FDIC's "Problem List" rose from 775 to 829.
 
On the other hand, the total assets of "problem" institutions declined from $431 billion to $403 billion. Also, while the number of "problem" institutions is the highest since March 31, 1993, when there were 928, it is the smallest net increase since the first quarter of 2009.
 
Forty five insured institutions failed during the second quarter.