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Earnings improve for S.C.-based banks

Staff Report
Published Dec. 4, 2012

The 71 banks based in South Carolina reported a collective profit of $127 million for the third quarter, up from $1 million a year earlier, according to data released Tuesday by the Federal Deposit Insurance Corp.

This represents the fifth straight quarterly profit for S.C.-based institutions. From the beginning of 2008 through the second quarter of 2011, banks based here lost a collective $3.3 billion, FDIC records show.

About 22.5% of these banks remain unprofitable, compared to 36.3% a year ago, the FDIC said. Assets are down 5.4% to $36.7 billion, while net interest margin improved from 3.70% to 3.79%. Nearly 4.5% of assets on banks’ books are underperforming, down from 5.3% a year ago.

The FDIC’s Quarterly Banking Profiles provide a glimpse into national and state banking climates. The report includes aggregate data for all FDIC-insured institutions.

Nationally, FDIC-insured institutions reported aggregate net income of $37.6 billion in the third quarter, a 6.6% increase from the prior-year quarter. This is the 13th consecutive quarter that earnings have registered a year-over-year increase, the FDIC said.

The FDIC also said its "problem list" of banks declined from 732 to 694. This marked the first time in three years that there have been fewer than 700 banks on the list.

"This was another quarter of gradual but steady recovery for FDIC-insured institutions," FDIC Chairman Martin J. Gruenberg said in a news release. "Signs of further progress were evident in a number of indicators, such as loan growth, asset quality and profitability."

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