Capital Purchase Program: Revenues Have Exceeded Investments, but Concerns about Outstanding Investments Remain Page: 25 of 44
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Figure 9: Quarterly Trend of Median Net Interest Margin by CPP Status, March 2008 through December 2011
Percentage
3.9 Former CPP
3.8 .+b. + " *' *"++" ' -Non-CPP
* ." ** .-*Remaining CPP
3.7
3.6
3.5
3.4
3.3
3.2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2009 2010 2011
Source: GAO analysis of SNL Financial data.
Note: Since 2000, the net interest margin for all banks has generally ranged between 3 and 4
percent. We have adjusted the scale in figure 9 accordingly to more clearly show the differences
between the three groups.
Not only were remaining CPP institutions less profitable than former CPP
institutions and the non-CPP group, but they also held relatively more
poorly performing assets, as measured by several financial indicators.
First, remaining CPP institutions had a consistently higher percentage of
noncurrent loans than former CPP institutions and the non-CPP group
from March 2008 to December 2011 (see fig. 10). While the median
noncurrent loan percentage increased over time for each group before
leveling off, the rate of growth was steeper and the period of growth
lasted longer for the remaining CPP institutions. As of December 31,
2011, a median of 4.18 percent of loans for remaining CPP institutions
were noncurrent, compared with 1.68 percent for former CPP institutions
and 1.70 percent for the non-CPP group. Second, remaining CPP
institutions had a higher median ratio of net charge-offs to average loansGAO-12-301 Capital Purchase Program
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United States. Government Accountability Office. Capital Purchase Program: Revenues Have Exceeded Investments, but Concerns about Outstanding Investments Remain, report, March 8, 2012; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc302309/m1/25/: accessed May 2, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.