New data out Wednesday on the performance of Georgia’s banks show institutions based in the Peach State had what amounts to their best combined first quarter since the first 90 days of 2007.
Collectively, the state’s 219 institutions reported $590 million in profit, though the bulk of that — $405 million — came from the state’s biggest bank, SunTrust.
Beyond profit, the state’s banks showed year-over-year growth in total loans — up 5 percent to $193.6 billion — and deposits — up 3.3 percent to $217.6 billion, according to data released Wednesday by the Federal Deposit Insurance Corp.
Georgia banking was savaged during the Great Recession. When the real estate industry tanked, banks were awash in loans that borrowers could no longer repay. Georgia led the nation in bank failures since mid-2008, however the state has gone more than a year since its last forced closure. A shaky real estate market continues to plague the state's banks, though there have been improvements.
The ratio of nonperforming loans, or loans no longer earning interest, to total loans is also improving, and now stands at 1.96 percent compared to 2.6 percent a year ago.
On a national level, the number of so-called “problem banks” declined for the 12th straight quarter to 411, down from a high of 888 during the darker days of the economy.
The nation’s banks earned a cumulative $37.2 billion in the first quarter, down 7.6 percent from the same period in 2013 as non-interest income declined, attributable to a dip in mortgage business and revenue from trading.
Read more about this report later Wednesday at our premium subscriber website www.myajc.com, or in the Thursday print edition of The Atlanta Journal-Constitution.
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