Profits at the nation’s banks fell in the third quarter for the first time since early 2009, but Illinois institutions are bucking that trend.
Nationally, banks and thrifts insured by the Federal Deposit Insurance Corp. had aggregate net income of $36 billion in the quarter, a drop from the $37.5 billion it reported in the same period a year earlier.
The FDIC said the decline was mostly due to legal costs at one institution that went unnamed.
It was the first time in 17 quarters — or since the second quarter of 2009 — that earnings registered a year-over-year decrease.
Lower revenues from reduced mortgage activity and lower gains on asset sales also contributed to the lower earnings, the FDIC said.
Illinois banks and thrifts earned a combined $2.03 billion, up from $1.8 billion and $1.02 billion in comparable 2012 and 2011 periods.
Fewer Illinois institutions are losing money: 12 percent were unprofitable in the third quarter, compared with 16 percent and 18 percent in the two earlier years’ periods.
Although many banks are trying to close branches and make greater use of technology, employment in Illinois’ banking industry is growing even as the number of banks shrinks.
Illinois had 544 insured institutions in the third quarter, compared with 565 and 584 in the two prior periods.
But employment now stands at 68,577, up from 68,365 and 64,009.
byerak@tribune.com | Twitter: @beckyyerak
