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.

The Dodd-Frank superseded and extended the coverage of the FDIC’s popular TAG program, which is set to expire on Dec. 31, 2012. Opinions are divided among numerous bankers, banking organizations, lawmakers and others on whether TAG should continue or terminate.

Bank earnings were up moderately at the national level but were mixed in District states in the second quarter of 2012, while asset quality improved once again across all states. Overall, the District and national banking industries are in considerably better shape now than they were one year ago.