Nebraska bank earnings continue to lag last year’s record performance.
State banks collectively earned $303 million in the second quarter, up slightly from the $291 million they earned in the first quarter.
But that was about 25% less than the record $409 million they earned in the second quarter of 2021.
For the year, Nebraska banks have now earned $594 million, about 22% less than the $761 million they earned in the first half of last year.
In the second quarter, only about one in four Nebraska banks earned more than a year ago, compared with more than three in four in the same period last year. The percentage of banks losing money has also increased, from 1.9% a year ago to 3.3% currently.
Lincoln-based banks generally did better than Nebraska banks overall. The nine banks collectively made $64.1 million in the second quarter, an increase of 10% from the second quarter of 2021. Five of the nine banks also made higher profits in the second quarter than there is a year.
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Nationally, banks reported combined net income of $64.4 billion in the second quarter, down 8.5% from the same period a year ago.
Acting FDIC Chairman Martin J. Gruenberg said the country’s banks had “generally positive results in the second quarter as loan balances strengthened, net interest income increased and quality credit remained favorable, although net income declined due to higher provisioning expenses.
However, he said, bank profitability will continue to face challenges from inflation, rising interest rates, slowing economic growth and continued pandemic and geopolitical uncertainties.
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