WASHINGTON – Federal Deposit Insurance Corporation-insured financial institutions earned $44 billion in the first quarter 2017, the FDIC announced in a recent report. Nationwide, community bank net income rose to $5.6 Billion.

“The banking industry reported largely positive results for the first quarter, but the operating environment continues to pose challenges for banks,” said FDIC Chairman Martin J. Gruenberg.

Other highlights of the Quarterly Banking Profile report included:

Quarterly Net Income Is 12.7 Percent Higher than a Year Earlier
Community Bank Net Income Rises 10.4 Percent from a Year Ago
Annual Loan Growth Rate Slows to 4 Percent, On Par With Nominal GDP Growth
“Problem Bank List” Falls to 9-Year Low

Of the 5,856 insured institutions reporting first quarter financial results, 57 percent reported year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable in the first quarter fell to 4.1 percent from 5.1 percent a year earlier.

“In the past two quarters, the industry has seen a slowdown in loan growth that is broad-based across major lending categories,” Gruenberg said. “This slowdown has occurred as the economy approaches the end of the eighth year of a relatively modest expansion. Still, loan growth has remained at or above nominal GDP growth.”