Georgia Banks Post Sixth Consecutive Profitable Quarter, Lending Up 3.5 Percent Over 2011

Online, December 4, 2012 (Newswire.com) - Georgia's 231 state-based FDIC insured banks earned $310 million in the third quarter of 2012 on a combined basis, the sixth straight quarterly profit reported. Through the first nine months of the year, net income for Georgia's banks was $1.17 billion, an improvement of about $809 million for the same period a year ago.

Total loans and leases were $191.2 billion, up by about 3.5 percent compared to the same time last year. Along with improved profitability, the increased loan balance is encouraging.

"Georgia's banks have now strung together six consecutive profitable quarters and noncurrent loans declined for the tenth straight quarter, so the stabilization trend for our banks' performance is holding. We're also encouraged to see an increase in loans from this time last year. Our member banks tell us they continue to be active in looking for new loans, rates remain at historic lows and there's fierce competition to earn business. It's a good time to borrow for business expansion or if you're a family in solid financial shape. So, we are hopeful loan demand will pick up in the next several quarters and we'll see even better economic growth," said Joe Brannen, president and CEO, Georgia Bankers Association.

Here are some other trends of note:

Seventy-three percent of Georgia-based banks were profitable in the first nine months of the year, compared to 59 percent in same period of 2011.

Loans that were past due declined for the 10th consecutive quarter. Noncurrent loans were at 3.62 percent of total loans, about a full percentage point below last year.

Overall capital levels remain strong, the amount of bank-owned real estate continues to decline and loan charge-offs for the year were down by $667 million.

-- GBA--