Nebraska banks reported first-quarter profits that were the lowest in six years.
According to data released last week by the Federal Deposit Insurance Corp., banks based in Nebraska earned a combined $181 million in the first quarter. That was down more than 28% from the $254 million they earned in the first quarter of 2019, and it was the lowest first-quarter number since 2014.
Asset, loan and deposit numbers all declined from a year ago, as did yields and interest margins.
The nine banks based in Lincoln fared much better. They combined to make $38.84 million in the first quarter, which was down only about 1.5% from the first quarter of 2019.
Nationally, banks saw their first-quarter earnings fall nearly 70% compared with a year ago, largely due to the economic conditions that were created by the coronavirus pandemic, which caused banks to have to increase their loan loss provisions and also take impairment charges to goodwill.
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"The banking industry has been a source of strength for the economy in the first quarter despite unexpected shocks. Although bank earnings were negatively affected by increases in loan loss provisions, banks effectively supported individuals and businesses during this downturn through lending and other critical financial services," FDIC Chairwomen Jelena McWilliams said.
McWilliams said in a news release that despite the drop in bank earnings, "bank capital and liquidity levels remain strong, asset quality metrics are stable, and the number of 'problem banks' remains near historic lows."