The Kentucky Department of Financial Institutions (DFI) has released its 2020 annual report. The report summarizes the status of federally recognized banks, credit unions, trusts, lenders, and investment firms and professionals operating in Kentucky for the 2020 calendar year. He highlighted DFI's work to promote consumer protection and proper regulation across the industry. The report also highlights industry trends and changes across the state.

"In 2020, the COVID-19 pandemic had a significant impact on the economy," said Commissioner Charles A. Vice. "However, the Kentucky financial services industry has been able to handle the uncertainties associated with the pandemic while providing basic financial services and support to Kentuckians."

(Click for the full report)

Banks, credit unions and other lenders have provided much-needed economic aid through the state's Paycheck Protection Program (PPP), with approximately 50,655 PPP loans approved in the Commonwealth totaling nearly $ 5.3 billion. In addition, financial institutions supported customers with loan adjustments, payment extensions, lower interest rates and reduced fees for services. All of this accomplished the industry while adapting its operations to meet the requirements of Governor Andy Beshear's ordinances and the US Centers for Disease Control and Prevention guidelines.

"The department also made significant changes to our operations in 2020 to protect Kentuck residents and save lives," Vice said. "We carried out the required supervisory activities, such as regular inspections, 100% off-site. This enabled us to meet all legal requirements, keep our employees safe and healthy, and ensure that the Kentucky financial services industry remained safe and healthy. "

Highlights from the 2020 report include the following:

• DFI's Securities Division worked closely with local and state attorneys to repair investor damage if it was identified, resulting in a $ 1.4 million fine and an ordered refund of more than $ 4 million led to damaged investors. Notable moves included a settlement agreement with JPMorgan Securities that fined the company $ 325,000.

• Investment activity in Kentucky continued to flourish with nearly 6,000 corporate filings, including initial filings, renewals, notice filings, and exemption filings.

• The banking industry 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 fallen 33.3% since 2010, when Kentucky had 156 state-chartered banks. The number of federally recognized credit unions, 22, has not changed in 2020.

• Banking and credit unions saw strong asset growth in 2020 and liquidity, profitability and capital ratios remain strong.

• Assets held by Kentucky banks increased 15% over the past year, largely due to stimulus funds held in insured deposit accounts. The assets of each bank ranged from $ 21.7 million to nearly $ 6.2 billion. Together, Kentucky banks had assets of nearly $ 61.4 billion.

• Kentucky credit union assets grew more than 15% last year, from $ 843,000 to nearly $ 1.7 billion. Together, the federally recognized credit unions had total assets of more than $ 5.2 billion at year-end.

• The complexity of Kentucky registered or licensed non-deposit financial services providers continues to grow as consumers seek financial services from multiple sources. In 2020, DFI's Non-Depository Division oversaw:

• 9,662 mortgage lenders.
• 1,820 mortgage lenders and brokers.
• 389 check cashers / custodians.
• 128 money senders.

Kentucky Department of Financial Institutions

source https://seapointrealtors.com/2021/07/25/kentucky-financial-services-industry-navigated-turbulence-in-2020-dfi-releases-annual-report/

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