Report shows year-end standings of Missouri banks

State-chartered banks in Missouri ended 2008 with total assets of $76 billion, a 9 percent increase over 2007, and total deposits of $60.6 billion, an 8 percent jump from the previous year.

While assets grew last year, the number of state-chartered banks and trust companies decreased by nine to 291, according to a Missouri Division of Finance news release.

Four banks and one nondeposit trust company merged into out-of-state banks; four banks merged into other Missouri state-chartered banks; one bank merged into a Missouri national bank; and one bank merged into a Missouri federal savings bank. One nondeposit trust charter was dissolved, and Hume Bank failed in March 2008.

The Division of Finance granted four new bank charters last year, including one for Springfield First Community Bank in September. Local organizers raised more than $22 million in startup capital from 71 shareholders to form Springfield Bancshares Inc., the bank's holding company. Springfield First now has $71.8 million in total assets, according to Executive Vice President Jan Baumgartner.

Total loans by state-chartered banks grew to $55 billion in 2008, up 6.3 percent from 2007, but the equity-capital ratio decreased to 10.31 percent. Primary capital, which includes allowances for loan and lease losses, was down to 11.39 percent.

The declines are the result of banks absorbing loan losses at a much higher level in 2008 than in recent years, according to the Division of Finance.

Net income for state banks was down 89.1 percent in 2008. Return on assets among state-chartered banks was 0.09 percent, compared to 0.95 percent for 2007. Reduced net income is a result of declining asset quality, although the division noted that the drop in net income was primarily influenced by a small number of banks.

After adjusting out 10 banks with the largest losses, the return on assets for the remaining 274 banks was 0.7 percent, according to the release.[[In-content Ad]]