State-chartered banks grow assets despite drastic profit drop

Missouri's state-chartered banks ended the first quarter with $77.8 billion in combined assets and $62.3 billion in total deposits, representing year-over-year gains of nearly 10 percent in both areas.

And while total loans by state-chartered banks were $54.7 billion, up 4.2 percent from a year ago, net income plummeted a staggering 128 percent from March 2008, according to a Missouri Division of Finance news release.

Return on assets among state-chartered banks was negative 0.22 percent, compared to 0.85 percent a year ago, and provisions for loan losses had grown to $207 million at the end of the first quarter.

"Declining asset quality continues to impact earnings performance and is evidenced in the increased provision expense," according to the release. "A small number of banks again influenced the weak earnings results. While the overall return on assets is poor, the median return is a much more respectable 0.68 percent."

The equity-capital ratio at state-chartered banks decreased to 10.04 percent. Primary capital, which includes the allowance for loan losses, decreased to 11.18 percent of total assets as banks continued to absorb loan losses at a much higher rate than in recent years, according to the division.

The number of state-chartered banks and trust companies decreased by nine to 291 as of March 31, according to the division. That figure includes 284 banks and seven nondeposit trust companies.

Of the nine financial institutions no longer in operation, 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. Two other banks merged into out-of-state institutions, and one nondeposit trust charter was dissolved, according to the division.

Four new bank charters were approved in the first quarter, including two for national banks that converted to state charters.

Here's a year-over-year look at total assets of Springfield-based banks chartered by the state:

• Empire Bank had total assets of $824.1 million, compared to $737.4 million a year ago.

• Guaranty Bank had total assets of $753.1 million, compared to $629.4 million a year ago.

• Liberty Bank had total assets of $922.3 million, compared to $803.6 million a year ago.

• Mid-Missouri Bank had total assets of $563.9 million, compared to $752.7 million a year ago.

• Old Missouri Bank had total assets of $106.8 million, compared to $84.8 million a year ago.

• Southwest Community Bank had total assets of $129.6 million, compared to $86 million a year ago.

• State Bank of Southwest Missouri had total assets of $91.3 million, compared to $88.3 million a year ago.

• Village Bank had total assets of $97.4 million, compared to $119.2 million a year ago.

• Great Southern Bank had total assets of $3.41 billion, compared to $2.53 billion a year ago.[[In-content Ad]]