Industry News
Mixed results expected in bank earnings
(MONTGOMERY ADVERTISER) - Sour real estate loans are likely to plague bank balance sheets when they begin reporting third quarter earnings.
While none of the banks serving Montgomery are expected to report the kind of losses that caused Colonial Bank to fail, many of the banks will report red ink and heavy loan losses, according to banking experts.
Regions, which has the largest share of deposits in the market, will report its earnings Tuesday and will discuss the report in a 10 a.m. conference call. BB&T, which took over Colonial, making it one of the market’s largest bank’s, will report earnings Monday and will discuss the report in a 10 a.m. call.
Tony Plath, a professor of banking at the University of North Carolina at Charlotte, said there will be plenty of bad loans to report next week, especially for banks with portfolio’s concentrated in real estate. Banks with a more diversified portfolio, meaning either loans across a spectrum of fields or even real estate loans over a wide geographic area, might eke out a profit for the quarter.
“It will be a mixed bag depending on their credit quality,” Plath said.
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