However, the latest figures offer evidence that the national industry is strengthening four years after the financial crisis.
21 percent increase
Nationally, bank earnings rose 21 percent in the April-June quarter and lending to consumers increased.
The U.S. banking industry earned $34.5 billion in the second quarter, up from $28.5 billion in the second quarter of 2011. About 63 percent of U.S. banks reported improved earnings as they were able to set aside less for losses on loans. And the number of troubled banks fell for the fifth straight quarter.
“The industry continues to recover at a gradual but steady pace,” FDIC Chairman Martin Gruenberg said at a news conference.