Massachusetts banks managed to scrub off about $92 million in delinquent loans in the second quarter of 2009 compared to the first quarter. The bad news? The pile of worst, most-overdue loans went in the other direction.

Loans in nonaccrual status – which are well past 90 days overdue and no longer accruing interest – jumped $79 million in the second quarter compared to the first quarter, to $872.4 million.

Meanwhile, assets between 30 and 90 days past due shrank quarter-over-quarter to $555.9 million, according to figures released today by the FDIC.

Last year for the same time period, 30-89 days’ delinquent loans were at $461 million, while nonaccrual-status loans were still sitting under $500 million.

Loans that were more than 90 days overdue but still accruing interest went down, from nearly $40 million to $33.6 million between the first and second quarter 2009.

As far as foreclosed property is concerned, banks added more homes and businesses to their books: foreclosed residential properties went from $30.2 million to $36.2 million, while commercial properties similarly went from $31.7 to $33.3.

However, total assets also swung higher in the quarter, from $97.2 billion in the first quarter 2009 to $98.1 billion last quarter, although 2008’s second quarter assets were at $108 billion at the same time last year.

Total deposits crept upward by $1.7 billion in the second quarter, and total equity capital crept up to $9.8 billion from $9.7 billion.

Banker & Tradesman excluded State Street Corp. from its analysis because the company serves institutional investors instead of individuals and small businesses.

Q2 Delinquent Loans Down, Nonaccruing Loans Up For Mass. Banks

by Banker & Tradesman time to read: 1 min
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