Money Talk: FDIC Banks Post Highest Total Quarterly Income On Record For 2Q

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FDIC BANKS POST HIGHEST TOTAL QUARTERLY INCOME ON RECORD FOR 2Q
U.S. commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. (FDIC) reported aggregate net income of $43 billion in the second quarter of 2015, up $2.9 billion (7.3%) from a year earlier and the highest quarterly income on record, the federal agency announced last week.

The increase in earnings was mainly attributable to a $3.6 billion rise in net operating revenue, up 2.1% percent to $172.9 billion. Financial results for the second quarter of 2015 are included in the FDIC’s latest Quarterly Banking Profile released on Sept 2.

The 5,881 insured institutions identified as community banks reported $5.3 billion in net income in the second quarter, an increase of 12% from the second quarter of 2014. Net operating revenue of $22.3 billion at community banks was $1.6 billion (8%) higher than a year earlier.

To view the FDIC’s full 2Q Quarterly Banking Profile, click here.

TOP EXECS AT FINANCIAL GIANT TIAA-CREF TO SPEAK AT CLINTON SCHOOL
Top officials with one of the nation’s largest money managers, TIAA-CREF, will be guest speakers on Wednesday, Sept. 9, at the Clinton School of Public Service. Tim Hopper, chief economist, and Heather Davis, chief investment officer for private markets, will discuss what rising interest rates mean for the economy and markets, and also address the money manager’s “Fruits of Employment” program for individuals with disabilities.

As TIAA-CREF’s leading economic advisor, Hopper is responsible for articulating the firm’s economic views and providing guidance that informs the firm’s investment portfolios and asset allocation strategies. Davis is responsible for strategy, investment originations, portfolio management and board reporting for the organization’s private fixed-income and private equity investments, including direct equity investments in the real assets sectors.

Interested parties can reserve seats for the event by emailing [email protected] or calling (501) 683-5239.

SEARS REACHES PACT WITH FEDS TO FUND PENSION PLAN
Struggling retail giant Sears Holdings Corp. announced Friday (Sept. 4) that it had reached an agreement with the federal Pension Benefit Guaranty Corp. (PBGC) to protect pension fund assets related to the company’s recently formed real estate investment trust.

In July, the parent company of Sears and K-mart retail stores, completed the spinoff of its 235 properties and 31 joint-venture interests from the retail giant into a publicly traded trust for proceeds of $2.7 billion. Sears owns 50% stakes each in joint ventures with Simon Property Group, Inc., General Growth Properties, Inc. and The Macerich Company.

Under the agreement, Sears will continue to make required contributions to the newly-formed REIT’s pension plan, which has 200,000 participants. For its part, PBGC has agreed not to initiate an involuntary termination of the pension fund, except “upon the occurrence of specified conditions.”

As of Jan. 1, the retailer’s U.S. pension fund had $3.62 billion in assets and $5.88 billion in liabilities. According to the company’s 10Q statement, the retail giant contributed $417 million to its pension plan in fiscal 2014. Sears reported its first quarterly profit in more than three years in late August, but the second quarter results benefitted largely from the $2.7 billion boost from the REIT spinoff.