Pennsylvania banks see surge in 3Q profit

PITTSBURGH — A drop in provision expenses — a precaution taken last year by banks in case the pandemic triggered loan defaults — helped to boost third quarter profits at Pennsylvania banks by more than 68% compared to a year ago, according to newly released data by the Federal Deposit Insurance Corp.

The 135 Pennsylvania banks insured by the FDIC reported aggregate net income of $2.56 billion for the three months ended Sept. 30. That compares to $1.52 billion a year ago or $1.9 billion in 2019.

The commonwealth’s results mirrored a national trend. Quarterly net income rose 35.9% to a combined $69.5 billion for U.S. banks, the FDIC said, as the provision expense fell $19.7 billion compared to the third quarter of 2020. Two-thirds of the 4,914 banks across the country reported a jump in profit.

For the Pennsylvania banks, combined loans and leases, at $199.9 billion, were down slightly from $201.8 billion during the third quarter of 2020 but deposits, at $251.5 billion, increased almost one-fourth over $201.6 billion in 2020.

Read more in the Pittsburgh Business Times.

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