chart showing that banks set their loan loss provisions low

Banks bet heavily in the third quarter that the worst of the pandemic recession was behind them, lowering their loan loss provisions to a level slightly lower than a year ago when weighted by assets.

The FDIC Quarterly Banking Profile released Tuesday showed banks provided $14.4 billion for loan losses in the three months ending Sept. 30, up 3.5% from 2019’s third quarter in absolute terms. However, the provision was an annualized 0.27% average assets, down from 0.30% in 2019’s third quarter.

Moreover, the third-quarter provision was down sharply from $52.7 billion in the first quarter and $61.9 billion in the second quarter.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Jim DuPlessis

A journalist for decades.

More from this author

Dig Deeper

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.