The number of problems banks fell last quarter for the first time since 2006, the Federal Deposit Insurance Corp. (FDIC) said today in its overall assessment of the health of the industry.

FDIC-insured banks and savings institutions reported total profits of $28.8 billion, a $7.9 billion improvement from the year-ago quarter. Banks were required to report their financial conditions by the end of the quarter on June 30.

Sixty percent of institutions reported an increase in earnings, and the share of unprofitable banks dropped to 15.2 percent, down from 20.8 percent a year earlier. Loan portfolios showed an increase for the first time in three years, the FDIC said.