by Calculated Risk on 5/31/2007 02:19:00 PM

From the FDIC Quarterly Banking Profile

• Industry Reports Year-Over-Year Earnings Decline
• Rising Loan Loss Provisions Reduce Profits at Larger Institutions
• Net Interest Margins Decline at Small Institutions, Rise at Large Banks
• Loan Growth Slows for Fourth Consecutive Quarter
• Mortgage Assets Decline for Second Quarter in a Row

Click on graph for larger image.

This is Chart 7 from the FDIC banking profile for Q1 asking a key question.

From the FDIC report it appears small institutions are struggling. But mid-sized institutions ($1 to $10 Billion) have improved their margins by taking on more risk, mostly associated with commercial real estate.