Dayton Business Journal...
Ohio banks post 25% profit growth
by Ginger Christ, Reporter
Tuesday, November 22, 2011 

Ohio commercial banks and savings institutions have recorded growth in profit for six consecutive quarters. 

The 237 financial institutions in the state saw aggregate profits climb 25 percent year-over-year to $16.2 billion during the third quarter, according to the Federal Deposit Insurance Corp.    ’s quarterly report. That compares to $12.9 billion during the third quarter of 2010 and $6.6 billion in 2009. 

Total loans and leases also rose, climbing $23.1 billion, or 2.3 percent, year-over-year to $1 trillion. 

Deposits spiked 15 percent to $1.7 trillion, up from $1.5 trillion during the third quarter of last year. 

As profit, loans and deposits grew in Ohio, the number of financial institutions operating within the state continued to decline, dropping from 240 one year ago to 237 as of Sept. 30 this year. The number of banks and savings institutions in the Buckeye state has decreased year-over-year for the past five quarters. 

The number of financial institutions continues to dwindle as the FDIC is forced to close banks underwater in debt. Since the subprime mortgage crisis, the FDIC has had to close scores of banks that couldn’t rise above their debt. 

The changes in the status of Ohio’s banks mirrors that of financial institutions across the country. 

FDIC-backed institutions nationwide reported aggregate profit of $35.3 billion profit during the third quarter, up from 23.8 billion the previous year. 

In fact, for the past nine consecutive quarters, nationwide earnings have increased year-over-year. 

“We continue to see income growth that reflects improving asset quality and lower loss provisions,” said Martin Gruenberg, acting chairman of the FDIC. “U.S. banks have come a long way from the depths of the financial crisis. Bank balance sheets are stronger in a number of ways, and the industry is generally profitable, but the recovery is by no means complete. 

Across the country, 63 percent of institutions reported improvements in quarterly profits. The number of banks with net losses fell to 14.3 percent, down from 19.5 percent the previous year, according to the FDIC report. 

Cincinnati-based Fifth Third    is the largest bank operating in the Dayton region. But are is also home to other Ohio banks including First Financial    (fourth largest), KeyCorp    (sixth largest) and Huntington Bancshares    (seventh largest.) 

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