Missouri banks record net loss in second quarter

KANSAS CITY, Mo. -- Missouri banks recorded a net loss in the second quarter of 2009 as bad loans continued to hurt lenders' bottom lines.

The state's savings and loans, however, rebounded from a year-ago loss to turn a profit.

The Federal Deposit Insurance Corp. reported Thursday that Missouri's commercial banks reported a combined loss of $67 million for the three-month period ending June 30. By comparison, the banks earned $152 million during the same period a year ago.

The state's savings and loans reported earning $11 million, compared with an $8 million loss a year ago.

Showing the continued pressure on banks because of foreclosures in the housing market, Missouri banks wrote off 1.27 percent of loans and leases during the quarter, up from 0.62 percent a year ago and the percentage of nonperforming assets, or loans past due, rose to 2.7 percent. Money set aside to cover potential loan losses increased 65 percent to $395 million.

Thrifts wrote off a net of 1.98 percent of loans and leases, up from 0.64 percent a year ago, and reported that 3.7 percent of assets are nonperforming. They also set aside $185.3 million for potential loan losses, up from $75 million a year ago.

The percentage of unprofitable commercial banks rose to 22 percent from 14 percent a year ago while those reporting a year-over-year increase in earnings fell from almost 45 percent a year ago to 30 percent now and almost 34 percent in the first quarter. The state had 321 commercial banks in the second quarter, down from 327 a year ago.

Among Missouri thrifts, of which there were 28 in the second quarter, down from 30 a year ago, the percentage of unprofitable ones rose to 25 percent, up from 20 percent a year ago. About 46 percent of savings and loans reported an increase in earnings during the quarter, an increase from 43 percent a year ago.

Commercial banks reported total deposits during the second quarter of $117.6 billion, up 7 percent from $109.7 billion a year ago. Savings and loans saw their deposits rise 66 percent to $9.3 billion.

Nationally, banks lost $3.7 billion during the quarter compared with a $4.7 billion profit during the second quarter of 2008.