U.S. federally insured banks will post their highest earnings ever in the fourth quarter of this year at a collective $38 billion, said noted banking analyst Dick Bove.

Banking earnings have posted year-over-year gains for the past 14 quarters, Bove told CNBC, adding that third-quarter earnings came to $37 billion for the sector.

“There’s a good chance the fourth quarter of this year will be the highest earnings period ever in the history of the American banking industry,” Bove told the network.

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“And when you take a look at the $38 billion relative to the $25 billion earned in the fourth quarter last year, it’ll be a 50 percent increase.”

Investors will rush to invest in well-capitalized U.S. banks next year, Bove predicted.

“In 2013, the probability is that the industry will go through the $38 billion level on a quarterly basis, and at the same point in time, because the industry is massively overcapitalized and because it basically has an enormous amount of excess liquidity, the dividends will go up and the stock buyback programs will increase,” said Bove, who is said to be stepping down from Rochdale Securities, although CNBC reported he left the firm last week.

“So the outlook for the banking industry which has been superb for at least two years now, probably three years, it basically is only going to get better in 2013.”

Commercial banks and savings institutions insured by the FDIC reported an aggregate net income of $37.6 billion in the third quarter of 2012, up 6.6 percent from the $35.2 billion reported in the third quarter of 2011, the FDIC reported earlier this month.

Loan growth showed signs of improvement, reflecting fundamental improvements taking place in the sector on top of healthy capital reserves.

“This was another quarter of gradual but steady recovery for FDIC-insured institutions,” FDIC Chairman Martin Gruenberg said in a statement.

“Signs of further progress were evident in a number of indicators, such as loan growth, asset quality and profitability.”

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.