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Seven things you may have missed Tuesday from the world of business

FDIC chairman Martin Gruenberg (left).REUTERS
Financial sector

Banks post $40.4 billion in profits in third quarter

WASHINGTON — US banks earned $40.4 billion in profits for the third quarter, a 5.1 percent increase from a year earlier, the Federal Deposit Insurance Corp. said Tuesday. Lower noninterest expenses were the main reason for the higher earnings in the three-month period that ended Sept. 30, the FDIC said in its quarterly report on industry performance. Reductions in costs tied to litigation outweighed weaknesses in operating revenue at large banks, the agency said. Loan portfolios grew and the quality of banks' assets improved, FDIC chairman Martin Gruenberg (left) said in a statement. At the same time, "there are signs of growing interest-rate risk and credit risk that warrant attention" and "lending in higher-risk loan categories has been growing," he said. Of the 6,270 firms reporting third-quarter results, 59 percent had year-over-year earnings growth, the FDIC said Tuesday. The proportion of banks that were unprofitable declined to 5 percent from 6.6 percent a year ago and was the lowest since 2005, according to the agency. The number of banks on the FDIC's problem list — those deemed at greater risk of failing — declined to 203, the smallest number in nearly seven years and a sharp decline from the peak of 888 in 2011, the agency said. Only one lender failed in the quarter, the FDIC said. — BLOOMBERG NEWS

Travel

Morning commuters get a free pass at Allston/Brighton tolls

Commuters driving through the Allston/Brighton toll plaza on the Massachusetts Turnpike Wednesday morning will be treated with a free toll, and drivers in the cash-only lane will receive additional holiday giveaways. Plymouth Rock Assurance Corp., a Boston-based auto insurance provider, will sponsor the eastbound and westbound tolls at Interchange 19 on the Mass Pike from 7 to 8 a.m. for its fourth annual "Turkey Toll" event. E-ZPass customers will drive through the toll as usual, but a credit and message from Plymouth Rock will be on their November statement, Dunkin' Donuts said. The cash-only lane will not become a fast lane. Cash customers will still need to stop, but instead of handing money to a toll booth operator, drivers in the cash lane will receive a $3 Dunkin' Donuts gift card that is valid through Dec. 24 and a holiday-themed giveaway from Plymouth Rock, Dunkin' Donuts said. — JESSICA GELLER

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Otto, the Plymouth Rock mascot, at the tolls on Thanksgivings past.Plymouth Rock Assurance Corp.
Mergers & acquisitions

Pinnacle buys Boulder Brands to boost gluten-free, dairy-free offerings

NEW YORK — Pinnacle Foods Inc., the maker of Birds Eye frozen vegetables, Mrs. Butterworth's syrup, and Vlasic pickles, agreed to buy Boulder Brands Inc. for about $710 million to add gluten-free baked goods and dairy-free spreads. Boulder's investors will receive $11 a share, Parsippany, New Jersey-based Pinnacle said Tuesday in a statement. The price represents a 9.2 percent premium to Boulder's closing price on Monday. Including about $265 million of net debt, the deal is valued at about $975 million. The deal bolsters Pinnacle's lineup of mostly conventional grocery offerings with a stable of brands that appeal to consumers seeking natural and organic goods. Boulder, based in the Colorado city of the same name, makes Evol natural frozen meals, Udi's and Glutino gluten-free bakery items, and Earth Balance and Smart Balance spreads. — BLOOMBERG NEWS

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Real estate

Amazon finalizes deal to build Fall River fulfillment center

Amazon.com Inc. said Tuesday that it closed on a deal to buy land in Fall River for a 1-million-square-foot fulfillment center. "Construction on this new facility will begin in the coming weeks and the fulfillment center will join our package sortation center in Stoughton in helping to speed delivery times for our New England customers," Braden Cox, director of US public policy for Amazon, told reporters Tuesday at Amazon's Kendall Square office. Preconstruction activities, such as land clearing, are already taking place, Amazon said. The state's Economic Assistance Coordinating Council voted in March to give Amazon $3.25 million in state tax breaks in return for the fulfillment center in Fall River and Freetown. The center, located in the SouthCoast Life Sciences and Technology Park, will create 500 permanent positions that Amazon promised in March will last a minimum of five years, and as many as 2,000 seasonal and part-time jobs, in return for the tax breaks. Of the $3.25 million in tax breaks, $1 million is a job creation credit, which the company is allowed to sell for cash. The remaining $2.25 million is a so-called enhanced expansion project credit. Unemployment in Fall River was at 7.8 percent in April, compared with 4.7 percent statewide. — JESSICA GELLER

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Auto industry

Fiat Chrysler told to spend an extra $1b to qualify for tax credits

LANSING, Mich. — Fiat Chrysler will have to spend an additional $1 billion on Michigan facilities over 15 years to qualify for $1.9 billion in business tax credits under an agreement approved Tuesday by the state's economic development board. The deal, the second with a Detroit Three automaker this year, is designed to help Michigan get a better handle on billions in tax incentives given to keep auto jobs in the state, primarily during the economic downturn. The redemption of higher-than-expected credits led to mid-budget year spending cuts in February. The agreement amends a 2010 deal between what was then Chrysler Group LLC and the former Michigan Economic Growth Authority. — ASSOCIATED PRESS

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Stocks

Regulators offer plan to scrutinize high-speed trading

NEW YORK — Regulators are proposing new procedures to monitor high-speed trading more closely in response to wild market swings brought on by a series of technical breakdowns. More than 70 percent of all trading today is automated, the Commodity Futures Trading Commission said Tuesday as it voted unanimously in favor of new registration standards for high-speed traders. The systems use algorithms to spot variances in market data, allowing trading firms to deliver buy and sell orders in milliseconds. That technology has led to a number of high-profile glitches, including one over the summer that shut down the New York Stock Exchange for almost half a day. The proposals would require some traders to register with the commission, specifically those ''engaged in algorithmic trading through direct electronic access'' to major US markets. The new rules are meant to foster greater transparency and they are open for a 90-day public comment period. They also call for tools to prevent ''self-trading,'' when one firm takes both sides of a trade.
— ASSOCIATED PRESS

Earnings

Analog Devices beats profit estimates, pushing up stock

Analog Devices Inc. gained the most in more than a month after the chipmaker reported sales and profit that exceeded analysts' estimates, helped by demand for consumer device components. Fourth-quarter net income was $96.3 million, or 30 cents a share, compared with $108.7 million, or 34 cents, a year earlier, the Norwood-based company said early Tuesday. Sales were $978.7 million, a 20 percent gain from a year earlier. Analysts had predicted a profit of 7 cents a share on sales of $910 million according to the average of estimates compiled by Bloomberg. The chipmaker, which counts Apple Inc. as one of its biggest customers according to Bloomberg supply chain analysis, makes analog chips that convert real-world things like touch and sound into electronic signals in devices ranging from mobile phones to aircraft. — BLOOMBERG NEWS

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