Banks Net Income Drops As Mortgage Activity Slows: FDIC

FDIC-insured banks’ quarterly net income dropped by $3.1 billion to $37.2 billion, thanks to lower non-interest income from reduced mortgage-related activity, FDIC’s Quarterly Banking Profile revealed. The FDIC’s First Quarter 2014 Quarterly Banking Profile shows that despite a drop in earnings, a majority of banks reported an increase in quarterly net income compared to a year ago. Drop in earnings The quarterly review shows that FDIC-insured banks posted net income of $37.2 billion compared to the $40.3 billion clocked a year ago. The decline is attributed to narrow margins, modest loan growth, and a decline in non-interest income as higher interest rates have reduced mortgage-related activity…