The recession had a mixed effect on Missouri financial institutions in the third quarter as commercial banks posted a net loss while S&L groups enjoyed a net profit.
The Federal Deposit Insurance Corp. on Tuesday reported that Missouri's commercial banks had a combined loss of $19.4 million for the three months ending Sept. 30. By comparison, the banks earned $104 million during the same period a year ago.
The state's savings and loans reported earning $25.5 million, compared with a loss of $23.7 million during the year-ago quarter.
Residential and commercial foreclosures continued to hammer the state's commercial banks as they wrote off 1.39 percent of loans and leases during the quarter, up from 0.77 percent a year ago, and the percentage of nonperforming assets, or loans that are past due, rose from 1.7 percent a year ago to 2.9 percent. The amount of money banks set aside to cover potential loan losses ballooned almost 71 percent in the quarter to $428.7 million.
Thrifts wrote off a net of 2.2 percent of loans and leases, up from 0.83 percent a year ago, and reported that 2.8 percent of assets are nonperforming. That was actually a decline from a year ago when 3.9 percent of loans were past due. Savings and loans also set aside $30.9 million for potential loan losses, down from $43.1 million a year ago.
The percentage of unprofitable commercial banks rose to 24.1 percent from 17.4 percent a year ago while those reporting a year-over-year increase in profits slipped to 35.4 percent from 42.2 percent. Missouri had 319 commercial banks in the third quarter, down from 322 a year ago.
There were 28 thrifts in Missouri in the third quarter, down from 31 a year ago. The percentage of unprofitable ones rose to 28.6 percent from 22.6 percent a year ago while the percentage showing an increase in earnings declined to 39.3 percent from 41.9 percent a year ago.
Commercial banks reported total deposits during the quarter of $95.7 million, up from $86.5 million in third quarter 2008. Savings and loans reported deposits almost doubling from $5.6 million a year ago to $10.9 million.
Nationally, banks earned $2.8 billion in the third quarter, compared with $879 million during the same period a year ago. But they also wrote off $50.8 billion in loans and reported 4.9 percent of loans were 90 days or more overdue _ the highest amount in 26 years.