Georgia-Based Banks Make $3 Billion In Profits In 2016 | WABE 90.1 FM

Georgia-Based Banks Make $3 Billion In Profits In 2016

Mar 2, 2017

Georgia banks were having a rough time, even five years after the recession. Hundreds locked their doors and never reopened as customers defaulted on their loans.

Like us on Facebook

But in 2016, FDIC-insured banks in Georgia made $3 billion dollars in profit, a nearly 5 percent increase from 2015.

Georgia Banking Association spokesperson David Oliver said Georgia banks are seeing steady growth along with the state's overall economy.

"More businesses have cash on hand that they need to keep on deposit with banks and more families have stronger savings and stronger cushions for emergency situations and other things they're trying to save for in the future, so those are really strong signs for Georgia's banks," Oliver said.

Nationally, banks saw a nearly 8 percent increase in profits in 2016 compared to 2015. They have seen steady growth in profits as the economy recovers.
Credit Courtesy of FDIC

John Campbell is a professor at the University of Georgia's Terry College of Business.

"When consumers are confident, businesses are confident,” Campbell said. “They're borrowing money and loan balances have increased and the credit quality of those loans is better."

Campbell pointed to the Federal Reserve’s recent actions.

"They’re increasing rates, which is a sign that they believe that the economy is growing and hot and needs to be tempered a bit with higher interest rates to curb inflation," he said.

Ninety-three percent of the 183 Federal Deposit Insurance Corporation-insured banks based in Georgia reported they were profitable at the end of last year.