The fourth-quarter of 2012 brought banks insured by the Federal Deposit Insurance Corp. back to a period of equilibrium, with their non-interest income rebounding from loan sales, increased trading revenue, and lower losses on foreclosed properties.

This is all from the FDIC’s fourth-quarter profile of insured banks.

The report shows the FDIC-covered institutions reporting fourth-quarter earnings of $34.7 billion, the highest 4Q income since 2006 and up $9.3 billion from the previous year.

The results also show deposit institutions on the rebound as they continue to distance themselves from legacy mortgage issues and other liabilities.

“Well over half of all institutions—60%—reported year-over-year improvement in quarterly earnings, while the share of institutions reporting net losses for the quarter fell to 14%, from 20% a year earlier. The average return on assets (ROA) rose to 0.97% from 0.73% in fourth quarter 2011,” the FDIC said.

Higher gains on loan sales, which rose by $2.4 billion, had the most significant impact on the bank’s year-over-year improvement in noninterest income. In fact, overall noninerest income hit $10 billion, up 182% from 2011 levels.

Trading revenue rose by $1.9 billion in the fourth quarter and losses on sales of foreclosed properties fell by $1.2 billion.

Banks insured by the FDIC also set aside $15.1 billion in loan loss provisions in the fourth quarter, a 24.6% decline from the fourth quarter of 2011, suggesting improved expectations when it comes to loan write-offs.

“This is the smallest fourth-quarter loss provision since 2006, and marks the 13th consecutive quarter with a year-over-year decline in loss provisions. More than half of all institutions—53.6%—reported lower loss provisions,” the FDIC pointed out.