Bank earnings rose dramatically in the Eighth District and U.S. peer institutions in the first quarter of 2011, primarily because of a sharp drop in funds set aside to cover future loan losses.

Since 1980, commercial bank earnings have varied widely across states. The authors find that much of this variation can be attributed to difference in economic conditions, and they suggest that interstate branching should promote a more stable banking system by enabling greater geographic...

After a large increase in the first quarter of 2011, earnings growth at District banks came to a standstill in the second quarter.

After two straight quarters of slight improvement, profitability at Eighth District banks dipped in fourth quarter 2009.

The slight uptick in bank earnings experienced by District banks and their U.S. peers in the third quarter did not carry over into the final quarter of 2011.

Two “Dialogue with the Fed” public events—one in English and one in Spanish—explored the reasons behind Europe’s sovereign debt crisis and what the implications may be for the United States.