Bank profitability holds steady

Return on assets, the greatest predictor of profitability for FDIC-insured banks across the country, reached 1.20% in the second quarter of 2024, up 12 basis points from the first quarter of 2024, but down 1 basis point from the second quarter of 2023, according to the latest statistics from the Federal Deposit Insurance Corp. Community banks, which represent 90% of insured institutions, reported a pretax ROA of 1.24%, up 1 basis point from the previous quarter.

In Colorado, bank profitability held pretty steady in the second quarter of 2024, ending June 30, with Colorado-chartered institutions seeing an average return on assets…