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FRANKFURT, Ky. – The Kentucky Department of Financial Institutions (DFI) today released its 2020 Annual Report at https://kfi.ky.gov/Documents/KDFI2020AnnualReportWeb.pdf.
The report summarizes the status of state chartered banks, credit unions, trust companies, lenders, securities companies, and professionals operating in Kentucky during the 2020 calendar year. It highlights highlight DFI’s work to promote consumer protection and reasonable regulation across the industry. The report also notes industry trends and changes across the state.
Banks, credit unions and other lenders have provided much needed economic assistance through the Federal Paycheck Protection Program (P3), with approximately 50,655 P3 loans totaling nearly $ 5.3 billion approved in the Commonwealth.
In addition, financial institutions have helped clients through loan modifications, payment extensions, lower interest rates, and reduced service charges. The industry has accomplished all of this while adjusting operations to meet the requirements of Executive Orders from Governor Andy Beshear and guidance from the United States Centers for Disease Control and Prevention.
The highlights of the 2020 report are as follows:
- DFI’s securities division worked closely with local and federal prosecutors to remedy damage to investors when identified, resulting in fines of $ 1.4 million and over $ 4 million. dollars ordered as restitution to aggrieved investors. The notable actions included a settlement agreement with JPMorgan Securities, which fined the company $ 325,000.
- Investing activity continued to flourish in Kentucky, with nearly 6,000 business filings, including initial filings, renewals, notice filings, and exemption requests.
- The banking sector continues to experience consolidation. The number of state chartered banks declined 4.4% from 114 in 2019 to 109 in 2020. The number of state chartered banks has declined 33.3% since 2010, when Kentucky had 156 state-chartered banks. The number of state-chartered credit unions, 22, did not change in 2020.
- The banking and credit union sectors saw strong asset growth in 2020, and liquidity, profitability and capital ratios remain strong.
- Assets held by Kentucky banks grew 15% last year, mainly thanks to economic stimulus funds held in insured deposit accounts. Assets of individual banks ranged from $ 21.7 million to nearly $ 6.2 billion. Collectively, the Kentucky banks had nearly $ 61.4 billion in assets.
- Kentucky credit union assets grew more than 15% last year, ranging from $ 843,000 to nearly $ 1.7 billion. Together, the state-chartered credit unions had total assets of over $ 5.2 billion at year-end.
- The complexity of Kentucky registered or licensed non-depository financial service providers continues to increase as consumers seek financial services from multiple sources. In 2020, the Non-Custodian Division of DFI supervised:
- 9,662 originators of mortgage loans.
- 1,820 mortgage companies and brokers.
- 389 check collectors / deferred deposit companies.
- 128 money issuers.
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