Georgia banks improved their yearly performance in 2010, but the state’s banks continue to lag behind the national recovery.
Deposits grew, problem loans dipped and other metrics showed modest improvements for the year.
On Wednesday, the Federal Deposit Insurance Corp. said Georgia’s banks reported a cumulative net loss for the year of $1.63 billion, less than half the $3.44 billion net loss in 2009.
According to the FDIC, nearly half of Georgia banks were profitable for 2010. In 2009, two-thirds were in the red. Overall, Georgia institutions have lost more than $5 billion since January 2009.
Nationally, the 7,657 banks in the U.S. earned $87.5 billion for 2010, compared to a $10.6 billion loss for 2009. Nearly 80 percent of U.S. banks were profitable for the year, the FDIC said.
“The details in the report give us reason to believe we're seeing a healing industry,” said Joe Brannen, president and CEO of the Georgia Bankers Association. “Many more Georgia banks were profitable in 2010, overall losses were significantly lower, fewer borrowers are behind on payments and customers continue to trust our banks with their deposits.”
Deposits at Georgia banks grew nearly $7 billion, or 3 percent to $216.7 billion. Total loans and leases stood at $192.3 billion, off just 0.6 percent from the end of 2009.
Non-current loans were 5.48 percent of total loans, according to the FDIC. Foreclosed real estate owned by banks increased 13.8 percent from 2009 to $3.55 billion.
Nationally, the number of troubled institutions climbed to 884 from 860, despite the failure of 30 U.S. banks during the fourth quarter, taking them off the list. The FDIC does not name troubled institutions or list their location.
Georgia leads the nation with 57 bank failures since mid-2008, with six coming this year.
The FDIC said loan problems nationally continue to improve, and nearly two-thirds of banks nationally and in Georgia actually improved performance over 2009.
"We are encouraged not only by the rising trend in total industry net income, but also by the fact that a substantial majority of insured institutions are participating in this trend," FDIC Chairman Sheila C. Bair said.
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