According to a research report by Five Star Equities, during the first quarter of the current fiscal only 16 FDIC-insured banks failed, the lowest total since the end of 2008.
The report also found that the number of banks at risk of failure declined to 772, the lowest total since the end of 2009, from 813 in the previous quarter.
FDIC-insured banks first quarter profits rose by 23% to $6.6bn from the year prior, marking the 11th consecutive quarter profits have shown a year-over-year increase, said FDIC.
With regard to the improved financial performance of the US banking sector, FDIC’s acting chairman Martin Gruenberg said the condition of the industry continues to gradually improve.
"Insured institutions have made steady progress in shedding bad loans, bolstering net worth and increasing profitability," Gruenberg added.
