U.S. banks have seen their earnings drop 2 percent in the first quarter of this year as low oil prices have finally turned into unpaid energy loans. In the first quarter of this year, U.S. bank earnings fell to US$39.1 billion from US$39.8 billion in the same period last year, based on data from the Federal Deposit Insurance Corp., which noted that the largest U.S. banks have been hit hardest. According to the data, this quarter saw the largest increase in delinquent loans—up 65.1 percent—since 1987. Of those delinquent loans, energy loans represented a significant volume as low oil prices are affecting the ability of producers to make payments. In late May, Wells Fargo cut its credit lines to energy exploration and production companies due to the sustained drop in oil prices. The bank said it was reducing around 66 percent of its energy-focused credit lines, which make up more than half of its US$17.8 billion in loans to oil and gas companies.