Georgia Banks Post Increased Earnings in First Quarter

Online, May 29, 2013 (Newswire.com) - Georgia's 226 state-based FDIC insured banks earned $504 million on a consolidated basis in the first quarter, an increase of about 18 percent over earnings in the same period a year ago. Other performance highlights include more banks that were profitable and continued improvement in customer finances.

"We continue to be encouraged by the performance trends of Georgia's banks. More banks were profitable this quarter, noncurrent loans decreased for the 12th consecutive quarter and charge-offs were down by about 47 percent compared to the same period a year ago. While banks are looking to make all the new loans they can, demand remains soft and that's reflected in a decline in total loans. Overall, the state's banking industry continues to recover along with the economy, and that's good news for everyone," said Joe Brannen, president and CEO of the Georgia Bankers Association.

Here are some of the positive trends from the results:

* Net income was up $77.5 million compared to the same quarter in 2012

* More customers were able to pay their loans on time. Noncurrent loans were down for the 12th consecutive quarter and down almost 50 percent from a year earlier.

* 86 percent of the state's banks were profitable compared to 78 percent in the first quarter of 2012

* Bank-owned real estate was down 20.3 percent from the first quarter of 2012 and down 5.5 percent from the previous quarter

* Total charge offs were down by $310.1 million, or 46.8 percent from the first quarter of 2012

* The amount of charge offs to total loans was down by almost 50 percent from the same period a year ago.