Third Quarter 2010 Eighth District States Bank Performance
Compiled by Daigo Gubo
- Profitability among banks in Eighth District states is up from a year ago but it may have reached a near-term plateau.
- Net interest margins continue to expand, a welcome boost to earnings.
- Provision expenses have come down but it is too early to determine if this is part of a broader trend.
- Nonperforming loans continue to move upward contrary to the larger national trend.
- The growth in other real estate assets held on bank balance sheets appears to be increasing.
Eighth District States Bank Data1
2009: 3Q | 2010: 2Q | 2010: 3Q | |
---|---|---|---|
Return on Average Assets2 | |||
All Eighth District States | –0.05% | 0.40% | 0.47% |
Arkansas Banks | 0.63 | 0.78 | 0.87 |
Illinois Banks | –0.37 | 0.20 | 0.35 |
Indiana Banks | 0.01 | 0.40 | 0.49 |
Kentucky Banks | 0.75 | 0.96 | 0.92 |
Mississippi Banks | 0.45 | 0.52 | 0.59 |
Missouri Banks | –0.32 | 0.24 | 0.30 |
Tennessee Banks | –0.39 | 0.31 | 0.22 |
Net Interest Margin | |||
All Eighth District States | 3.54 | 3.72 | 3.76 |
Arkansas Banks | 4.00 | 4.07 | 4.13 |
Illinois Banks | 3.27 | 3.61 | 3.65 |
Indiana Banks | 3.75 | 3.75 | 3.77 |
Kentucky Banks | 3.91 | 4.09 | 4.04 |
Mississippi Banks | 3.85 | 3.87 | 3.89 |
Missouri Banks | 3.33 | 3.41 | 3.51 |
Tennessee Banks | 3.57 | 3.77 | 3.79 |
Loan Loss Provision Ratio | |||
All Eighth District States | 1.22 | 0.94 | 0.92 |
Arkansas Banks | 0.83 | 0.75 | 0.72 |
Illinois Banks | 1.57 | 1.23 | 1.18 |
Indiana Banks | 1.15 | 0.94 | 0.90 |
Kentucky Banks | 0.52 | 0.54 | 0.53 |
Mississippi Banks | 0.77 | 0.79 | 0.82 |
Missouri Banks | 1.41 | 0.92 | 0.86 |
Tennessee Banks | 1.18 | 0.82 | 0.89 |
Nonperforming Loans Ratio3 | |||
All Eighth District States | 3.54 | 3.79 | 3.88 |
Arkansas Banks | 2.36 | 2.92 | 3.27 |
Illinois Banks | 5.19 | 5.19 | 5.06 |
Indiana Banks | 2.92 | 3.21 | 3.13 |
Kentucky Banks | 2.10 | 2.43 | 2.49 |
Mississippi Banks | 1.91 | 2.77 | 3.13 |
Missouri Banks | 3.49 | 3.76 | 3.96 |
Tennessee Banks | 2.69 | 3.11 | 3.43 |
Nonperforming Loans Ratio4 | |||
All Eighth District States | 4.56 | 5.17 | 5.38 |
Arkansas Banks | 3.60 | 4.49 | 5.05 |
Illinois Banks | 6.20 | 6.51 | 6.48 |
Indiana Banks | 3.36 | 3.80 | 3.81 |
Kentucky Banks | 2.76 | 3.43 | 3.55 |
Mississippi Banks | 2.88 | 4.05 | 4.55 |
Missouri Banks | 4.83 | 5.62 | 5.98 |
Tennessee Banks | 3.88 | 4.88 | 5.31 |
- Since all District banks but one have assets of less than $15 billion, banks larger than $15 billion have been excluded from the analysis.
- All earnings ratios are annualized and use year-to-date average assets or average earning assets in the denominator.
- Nonperforming loans are those 90 days or more past due or in nonaccrual status.
- Nonperforming loans plus OREO are those 90 days past due or in nonaccrual status or other real estate owned