Explain the role of loans in the balancing act that a bank performs in the pursuit of profit.

U.S. bank profits rose during the first quarter of 2021, up $58.3 billion from a year ago. Loan balances decreased and deposits increased. Total assets increased. No banks failed during the first quarter of 2021. The number of institutions on the problem bank list of the FDIC (Federal Deposit insurance Corporation) decreased by one to 55 from the previous quarter.