The Federal Deposit Insurance Corp. (FDIC) reported that the banking industry earned $7.6 billion in profits in the first quarter of this year, compared with a record loss of $36.9 billion in the fourth quarter of last year. But no cheers yet, as the profit was 61% below the $19.3 billion earned in the year-ago period. Meanwhile, the number of distressed banks rose to 305, the highest number since 1994's savings and loan crisis. This year, 36 FDIC-insured banks have failed and been shut down by regulators, costing the FDIC about $70 billion through 2013.