Industry profits last year dipped following a record high in 2013, as noninterest expenses ate into income and net interest margins contracted, according to a new analysis from SNL Financial.

The research firm said this week that industry-wide net income peaked in the second quarter of 2014 and the first quarter of 2013, but while banks continued to grow bigger than ever, expenses squeezed profits at the end of 2014.

According to SNL Financial, the U.S. banking industry’s quarterly aggregate net income declined to $36.96 billion in the fourth quarter last year, down from $38.45 billion in the third quarter and $39.88 billion in the fourth quarter of 2013.

On an annual basis, banks earned $152.63 billion in 2014, down from $154.34 billion in 2013, according to data filed in call reports compiled by SNL Financial.

Last year’s profits were squeezed by an increase in noninterest expense, as well as the continued contraction in the net interest margin. The fourth-quarter net interest margin for the industry sank to an annualized 3.07 percent from 3.1 percent in the prior period and 3.21 percent in the year-ago period. On a yearly basis, the aggregate net interest margin of 3.123 percent is the second-lowest yearly ratio since SNL began tracking it in 1991. Only the net interest margin of 3.12 percent in 2008, when the banking industry lost $5.06 billion, is lower.

Total loans and leases reached another record high, hitting $8.309 trillion at the year’s end, compared with $8.159 trillion at the close of the third quarter and $7.892 trillion at the year-end 2013.

The growth in loans also corresponded with a growth in the loan-loss provision, which totaled $8.22 billion in the fourth quarter, up from $7.20 billion in the third quarter and $7.34 billion in the fourth quarter of 2013. Still, the overall provision for loan losses in full year 2014 was the lowest since full year 2006. Banks set aside $29.74 billion in 2014 for loan losses, down from $32.44 billion in 2013. In 2006, as the real estate loan bubble was just beginning to crack, banks set aside just $29.69 billion for loan losses.

Noninterest expense increased to $421.64 billion in 2014 from $416.61 billion in 2013. Expenses improved on a quarter-over-quarter basis, dropping to $107.67 billion in the fourth quarter from $108.71 billion in the third quarter. Fourth-quarter expenses increased compared to the year-ago quarter’s aggregate of $102.87 billion.