Friday, February 27, 2009
U.S. bank and thrift industry tallies its first losing quarter since 1990, FDIC reports
One in 6 Illinois banks recorded a loss in the fourth quarter, up from 1 in 11 a year earlier.
Still, the 570 banks as group earned $482 million in 2008. That's down from $2.56 billion in 2007.
The state's 85 thrifts fared worse, with 40 percent losing money, up from 27 percent in the fourth quarter of 2007. Collectively in 2008 the state's savings and loans lost $270 million, worse than the $80 million in losses they racked up the previous year.
Those are among findings released Thursday by the Federal Deposit Insurance Corp., which announced that the nation's bank and thrift industry lost $26.2 billion in the fourth quarter, the first quarterly loss since 1990.
More than two-thirds of all insured U.S. institutions were profitable in the fourth quarter, the U.S. regulator said, but their earnings were dwarfed by big losses at big banks.
All insured institutions eked out a $575 million combined profit in the fourth quarter of 2007.
The FDIC also said that the number of institutions nationally on its undisclosed "problem list" rose from 171 in the third quarter to 252 in the fourth quarter, the highest number since mid-1995.
Reasons for the industry losses included rising levels of money that banks have to set aside to cover loans that might go bad, as well as losses from investment activities.
Return on equity in the fourth quarter for Illinois' commercial banks in the report was 1.8 percent, down from 7.7 percent one year before.
Results generally were better at the smallest banks. The average return on equity of those with assets of less than $100 million dropped in the fourth quarter to 4.5 percent from 5.6 percent, while banks with assets of more than $100 million declined to 1.7 percent from 7.8 percent.
Return on assets also fell, particularly for the larger-bank group.
The percentage of Illinois institutions reporting profit gains for the fourth quarter was 43.7 percent. In the quarter one year earlier, 53 percent reported higher earnings. Again, results were more stable at institutions with assets of $100 million or less.
Equity capital of all commercial banks in the state fell in the fourth quarter to $26.79 billion from $40.43 billion one year before.
Source www.chicagotribune.com/business/chi-fri-illinois-bank-earnings-feb27,0,3634840,print.story
One in 6 Illinois banks recorded a loss in the fourth quarter, up from 1 in 11 a year earlier.
Still, the 570 banks as group earned $482 million in 2008. That's down from $2.56 billion in 2007.
The state's 85 thrifts fared worse, with 40 percent losing money, up from 27 percent in the fourth quarter of 2007. Collectively in 2008 the state's savings and loans lost $270 million, worse than the $80 million in losses they racked up the previous year.
Those are among findings released Thursday by the Federal Deposit Insurance Corp., which announced that the nation's bank and thrift industry lost $26.2 billion in the fourth quarter, the first quarterly loss since 1990.
More than two-thirds of all insured U.S. institutions were profitable in the fourth quarter, the U.S. regulator said, but their earnings were dwarfed by big losses at big banks.
All insured institutions eked out a $575 million combined profit in the fourth quarter of 2007.
The FDIC also said that the number of institutions nationally on its undisclosed "problem list" rose from 171 in the third quarter to 252 in the fourth quarter, the highest number since mid-1995.
Reasons for the industry losses included rising levels of money that banks have to set aside to cover loans that might go bad, as well as losses from investment activities.
Return on equity in the fourth quarter for Illinois' commercial banks in the report was 1.8 percent, down from 7.7 percent one year before.
Results generally were better at the smallest banks. The average return on equity of those with assets of less than $100 million dropped in the fourth quarter to 4.5 percent from 5.6 percent, while banks with assets of more than $100 million declined to 1.7 percent from 7.8 percent.
Return on assets also fell, particularly for the larger-bank group.
The percentage of Illinois institutions reporting profit gains for the fourth quarter was 43.7 percent. In the quarter one year earlier, 53 percent reported higher earnings. Again, results were more stable at institutions with assets of $100 million or less.
Equity capital of all commercial banks in the state fell in the fourth quarter to $26.79 billion from $40.43 billion one year before.
Source www.chicagotribune.com/business/chi-fri-illinois-bank-earnings-feb27,0,3634840,print.story
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