Expanded FDIC coverage for accounts is extended by Congress through 2013

Savers at Southwest Florida banks got some good news from the federal government.

Congress has extended for another four years the increased federal insurance coverage at the nation's banks, thrifts and credit unions.

The Federal Deposit Insurance Corp. coverage was increased to $250,000 from $100,000 per depositor last October, a move to bolster customer confidence in the safety of their money.

That temporary increase was set to expire on Dec. 31. But in mid-May Congress extended that $250,000 coverage through Dec. 31, 2013.

Certain types of retirement accounts, such as IRA deposits, will retain their $250,000 protection after 2013.

FDIC insurance covers funds in checking and savings accounts, money market deposit accounts and certificates of deposit. It does not protect other financial products some banks offer, such as stocks, bonds, mutual fund shares or insurance.

Most savers know that they can structure the ownership of accounts to get more than the $250,000 coverage. Using joint, revocable trust, IRA and other accounts can broaden the protection.

The FDIC Web site has a electronic insurance estimator to help consumers calculate their coverage. Check out www.myFDICinsurance.gov.

Troubled bank numbers soar

The official count of troubled banks has hit a 15-year high.

The FDIC last week said its "problem list" of weak banks jumped to 305 in the first quarter, up by 53 since the beginning of the year. It's the highest total since 1994, when the savings and loan crisis was still raging.

Total assets of the problem banks grew to $220 billion from $159 billion.

Twenty-one banks failed during the first quarter, the most since late 1992. Among them was Riverside Bank of the Gulf Coast in Cape Coral, which had offices in Nokomis and Venice. TIB Financial Corp. of Naples, the owner of The Bank of Venice, took over Riverside's insured deposits and nine offices.

Bank profits fell 61 percent in the first quarter to $7.6 billion. Three out of five banks posted lower net income, and one in five was unprofitable.

"The first quarter results are telling us that the banking industry still faces tremendous challenges, and that going forward, asset quality remains a major concern," said FDIC Chairman Sheila C. Bair.

The nation's 8,246 banks set aside $60.9 billion in provisions for loan losses, up by $23.7 billion, or 64 percent, over the year.

JPMorgan boasts about business

JPMorgan Chase, which bought the failed Washington Mutual last year, is boasting about its Florida lending business.

Chase said it made 206,000 new loans and lines of credit totaling $1.9 billion in Florida during the first quarter.

About a third of the new loans involved credit card accounts. It also originated 4,960 mortgage loans worth $870 million, 7,907 student loans for $73 million and 13,510 auto loans for $279 million.