The overall health of the thrift industry
in New York remained strong during 2001. Total assets of all State-chartered
savings banks at year-end 2001 increased over 18% from the prior
year to $75.5 billion. The decline in economic conditions was reflected
in the average return on assets ("ROA") for these institutions,
which was slightly lower in 2001 as compared to the previous year.
The slowdown in economic activity was evident in a reduction in
the net interest margin, which was partially offset by an increase
in non-interest income. These statewide results were not uniform
across all size groupings of banks. The
medium and large sized savings banks show a decline in ROA during
2001, while the smallest sized savings banks actually show a rise
Despite the slowing economy, asset
quality through 2001 continued its improving trend that began in
1992. The average ratio of noncurrent loans for savings banks was
nine basis points lower than year-end 2000 and was at the lowest
level in approximately twelve years. The noncurrent ratios for
savings banks' largest loan category, real estate loans, experienced
a six basis point improvement.
Capital ratios for all State-chartered
savings banks as a whole declined at year-end 2001, primarily due
to the significant rise in their asset base. The leverage capital,
tier one risk-based capital, and total risk-based capital ratios
for all State-chartered savings banks stood at 9.5%, 16.0% and 17.0%,
respectively, compared to the previous year-end levels of 10.5%,
17.9% and 19.0%. All State-chartered savings banks met the guidelines
for classification as being "well-capitalized" with the
exception of one institution, which was "adequately capitalized."
At year-end 2001, there were 33 savings banks in New York with state
The credit union segment of the thrift
industry remained vibrant in 2001. The 38 State-chartered credit
unions increased their total assets during the year by 11.3%, or
approximately $300 million, to an aggregate of over $2.9 billion.
This growth was funded primarily by increased member shares and
was directed into cash and equivalent instruments (25%), new securities
investments (52%), and additional loans to members (16%). Credit
union membership increased by more than 15 thousand, rising to almost
565,000 individuals at year-end.