State-chartered banks report increased deposits, loan loss allowances

Total assets in state-chartered banks for the 12 months ended June 30 increased 6 percent to $78 billion, while deposits increased 7.9 percent to $63.1 billion.

During the same period, however, the number of state-chartered banks and trust companies in Missouri shrank to 292 from 297, according to a quarterly report from the Missouri Division of Finance.

The state report consolidates reports filed by state-chartered banks as of June 30 and compares them to reports filed a year earlier.

The number of state-chartered banks shrank as a result of several mergers:

• four banks merged into other Missouri state-chartered banks;

• one merged into an out-of-state institution;

• one bank merged into a Missouri national bank;

• one bank merged into a federal savings bank with headquarters in Missouri; and

• two new bank charters were granted during the 12-month period.

Total assets in state chartered banks increased 6 percent to $78 billion, while deposits increased 7.9 percent to $63.1 billion. Total equity capital was $7.84 billion, up 2 percent from June 30, 2008.

Total loans increased 1.2 percent to $54.8 billion, with loan loss allowances jumping 27 percent to $1.07 billion.

The division says capital levels remain strong, though equity capital-to-assets ratios dropped to 10.05 percent from 10.45 percent a year earlier. Return on assets among state-chartered banks was -0.2 percent, compared to 0.53 percent in June 2008, though the report attributes most of the decline to three unnamed banks; return on assets for the remaining 282 banks was 0.55 percent, according to the division.