However, the FDIC noted that the earnings problems experienced by a few large banks reflect a rising trend in the riskiness of banks' assets. The thrift industry's quarterly ROA fell to 0.95 percent, from 1.03 percent a year earlier. Higher loan-loss provisions and lower net interest margins were responsible for the drop in earnings. Preliminary results for the second quarter of 2000 for the 8,477 commercial banks and 1,624 savings institutions that are insured by the FDIC are presented in the FDIC's latest Quarterly Banking Profile . The Profile provides the earliest comprehensive look back at the industry's most recent past performance, based upon quarterly reports of condition and income submitted by all FDIC-insured banks and thrifts.
Additional highlights follow.
Noninterest income was also limited by a smaller contribution from market-related revenues, such as gains on venture capital investments. Even so, strong asset growth, especially growth in loans, helped limit the decline in industry earnings. Total assets of insured commercial banks were 9.4 percent higher than a year ago, and total loans were 12.0 percent higher. The average net interest margin improved during the quarter at smaller banks, but declined at larger institutions. More than half of all commercial banks reported higher net interest margins than in the first quarter, but declines at large banks caused the industry's margin to decline slightly, from 4.00 percent to 3.99 percent.