After a large increase in the first quarter of 2011, earnings growth at District banks came to a standstill in the second quarter.
With soaring commodity prices and farmland values in recent years, banks with an agricultural focus (where at least 25 percent of total loans are production and farmland loans) have outperformed their community bank peers. Find out what risks agriculture banks may face.
Before the housing boom and bust, changes in local house values appeared to be a local phenomenon. Now, however, the District’s house-price changes are mirroring national patterns. Therefore, downward trends in other parts of the country may continue to negatively affect prices in the District.
Although some believe the changes could lead to more loans reported as troubled debt restructurings, the update’s purpose is to explain and expand on previous guidance.