Banks in Alabama are quite strong and doing pretty decently, despite a number of banks in the United States going under recently – 214 banks across the U.S. to be exact as of date (March 3, 2010), and out of those only three banks were from Alabama (fdic.gov).
These failed banks were:
- New South Federal Savings Bank of Irondale (Closed Dec. 18, 2009)
- Colonial Bank of Montgomery (Closed Aug. 14, 2009)
- CapitalSouth Bank of Birmingham (Closed Aug. 21, 2009)
What does that say about the financial condition of Alabama Banks?
While it seems that “all is quiet on the western front” for the Alabama banking industry – that is not quite true. Alabama is having some difficulties while the recession peters out. Alabama banks lost 15.7 percent of jobs in 2009, with 45,911 bank jobs in 2009 – down from 54,450 in 2008. Not only were Alabama bank employees affected by the volatility of the financial crisis but so were depositors, investors and borrowers (The Associated Press).
Moreover, total deposits in Alabama banks totaled only $184 billion, whereas the year before total deposits were $187. Most of those deposits earned less.
More financial problems continue to pour over Alabama banks, such as delinquent loans doubling from 2.53 percent (2008) to 4.98 percent (2009), an increase in foreclosed real estate of $1.4 billion from $835 million the year before and more permanent job loss. All this means interest rates given to Alabama depositors don’t look too bright.
However, many Alabama banks have stuck with conservative ways of providing quality financial services to communities in Alabama and have prevailed, becoming the top 50 leading banks and credit unions in Alabama. These same local Alabama banks and credit unions are also responsible for currently providing the best Alabama savings account rates and the best Alabama cd rates to their communities.
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[...] Banks in Alabama are quite strong and doing pretty decently, despite a number of banks in the United States going under recently – 214 banks across the U.S. to be exact as of date (March 3, 2010), and out of those only three banks were from Alabama . [...]
[...] Banks in Alabama are quite strong and doing pretty decently, despite a number of banks in the United States going under recently – 214 banks across the U.S. to be exact as of date (March 3, 2010), and out of those only three banks were from Alabama . [...]