Financial Services - November 2008
Higher foreclosure rates and limited credit availability constrained District financial activity in November. Deposit growth at Sixth District banks was marginally positive in the second quarter after three quarters of negative growth, and District contacts noted increased competition for deposits in October. Some banks reportedly held on to reserves rather than making loans. Lending institutions continued to impose stringent requirements on loan applications.
For all Sixth District states except Mississippi, the percentage of seriously delinquent subprime mortgage loans (those 90 days past due or in foreclosure) increased from the first quarter to the second quarter of 2008: from 12 percent to 12.4 percent in Alabama; from 22.2 percent to 26.3 percent in Florida; from 14.6 percent to 15 percent in Georgia; from 13.6 percent to 13.8 percent in Louisiana; and from 12.4 percent to 12.6 percent in Tennessee. Mississippi saw a marginal decline in seriously delinquent subprime mortgages, from 16.2 percent in the first quarter to 16.1 percent in the second quarter.