By Amy McCullough
More than half of metro area banks across Mississippi have experienced a decrease in troubled or problem assets during the most recent quarter (ending June 2010), according to data from the Bank Tracker website.
A “troubled asset ratio” compares the sum of troubled assets with the sum of Tier 1 Capital plus Loan Loss Reserves. Generally, higher values in this ratio indicate that a bank is under more stress caused by loans that are not paying as scheduled.
Will this decrease be a trend? Could it mean an end to rising problem assets? Only time will tell.
Note: For research purposes, Wells Fargo and Regions were eliminated from the study, as a significant number of their problem assets are centered outside Mississippi.
Miss. Metro Banks with a Decline in Trouble Asset Ratio:
52.4% (11 of 21 banks)
Trustmark * Bank Plus * Community * Merchants & Farmers * State Bank & Trust * Bankfirst * Omni * Liberty * Metropolitan * Peoples * Copiah National
Miss. Metro Banks with an Increase of Less than 1%:
14.3% (3 of 21 banks)
Citizens National Bank of Meridian * PriorityOne Bank * Bank of Forest
Miss. Metro Banks with Increased Troubled Asset Ratios:
33.3% (7 of 21 banks)
BancorpSouth * First Commercial * Heritage Banking Group * First Bank & Trust * Miss. National Banker’s Bank * Bank of Yazoo City * Merchants & Planters