But the effects of the current recession continue to be seen in the financial performance of banks of all sizes and types. Indeed, some banks have not yet made their way across the "bridge to stabilization" that serves as a theme for this conference. Like their competitors, minority depository institutions have weakened in the current environment.
For example, for the full year 2008, 43 percent of the 217 minority depository institutions reported a loss, resulting in an aggregate return on assets of negative 0.16 percent. As with other banks, much of this deterioration stemmed from higher loan loss provisions, expanded noninterest expenses, and tighter net interest margins.