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JOURNAL
SEPTEMBER 27, 2016
MONEY IN THE BANK
Montana banks continue post-recession rebound BY LEW IS K E NDA LL
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EIGHT YEARS AFTER THE COLLAPSE OF MULTINATIONAL investment firm Bear Stearns signaled the beginning of the Great Recession, “resilient” Montana banks have bounced back. While the number of banks in the state has decreased markedly, assets have grown and the industry as a whole is in excellent health, according to officials and industry members. In the past two years, Montana bank assets grew around $1.2 billion, allowing institutions more leverage to issue loans. Those loans — a key factor in the 2008 crisis — are an important area to watch, experts said. One out of every 100 borrowers in Montana is late on payments, creating what the industry calls noncurrent
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loans. The state’s noncurrent loan rate is currently lower than the national average of 1.49 percent. Richard Barrington, senior financial analyst at research company MoneyRates, said that the metric is a good indicator of overall bank health. “If you see this bad loan rate start to rise, it’s a problem that can snowball on a bank,” he said. “And if the economy in one area turns bad, that can quickly become a big deal.” BANKS CONTINUED ON PAGE 15