FDIC reports broad Q2 growth in Missouri

The state’s economy added more than 20,800 jobs in the second quarter of 2005, compared to an increase of 13,800 in the same quarter last year.

Every sector except government added jobs, with the largest increases occurring in health services and leisure and hospitality industries.

Manufacturing employment increased by 2,200 jobs in the second quarter, compared to 1,700 new jobs in the same quarter in 2004. However, manufacturing employment is 84,000 jobs below the peak level reached in 1998.

Missouri’s unemployment rate declined to 5.5 percent from 5.8 percent in the first quarter – the lowest it’s been since the first quarter of 2004.

Banking earnings remained solid, as rising short-term rates offset slight declines in term yield spreads.

The median return-on-assets ratio was 1.02 percent in the second quarter. The June median net interest margin in small community banks was 4 basis points higher than a year earlier.

Delinquent loans at Missouri’s insured institutions have declined for four straight years and represented 1.35 percent of total loans in June, while commercial real estate lending was up 15.7 percent from a year ago. Commercial business lending growth came in at 9.1 percent.

Missouri crops are feeling the effects of the summer drought. Corn production this year is expected to be down 36 percent from last year, and the soybean crop is expected to be down 28 percent. More than 75 percent of pasture and range conditions are rated poor or worse.

Springfield ranked third among the largest deposit markets in the state. As of the second quarter, Springfield had 43 banking institutions in the market, with deposits totaling $6.1 million. St. Louis ranked first with $44.2 million and Kansas City second with $31.1 million. Asset distribution for Springfield ranged between $1 billion and $10 billion.