Alabama-based banks lost a cumulative $453 million in 2010, according to Federal Deposit Insurance Corp. data, down sharply from a total of $3.04 billion in 2009 and $6.78 billion in 2008.
The 49 banks with less than $100 million in assets made a total of $7 million, while the 95 banks with more than that amount lost $460 million. Throughout the banking downturn, losses have been concentrated in large banks, with small banks basically breaking even. During the dip, a majority of banks have remained profitable, with big losses concentrated at a few. Of state banks, 78 percent were profitable in 2010.
The results do not include banks such as Wells Fargo, RBC Bank USA or BB&T which have their headquarters elsewhere.
The sector shed employees for the second straight year, with the total number of workers falling 3.4 percent to 43,557. The pace of decline was much less drastic than the 17 percent loss in 2009, when Colonial Bank failed.
The amount of loans and leases outstanding fell 9 percent in 2010 to $145.6 billion. Total deposits fell 4.9 percent to $145.6 billion.
In one sign of improving bank profitability, the net interest margin rose to 3.66 percent.