Capital continues to be strong. Earnings increased, but reflected the strong competitive environment from which our financial institutions operate as evidenced by squeezed net interest margins. A notable financial institutions earnings trend in 1998 was the increasing reliance on noninterest income. Non-performing assets remained at nominal levels.
Concern continues with consumer debt levels and bankruptcies.
Our financial institutions appear to be progressing satisfactorily with their Y2K compliance programs. The Department has urged all financial institutions in Georgia to carefully assess and plan for liquidity and outreach to their customers regarding their overall Y2K preparedness progress. Change continues to occur rapidly in the financial services industry. Technology remains a driving force behind the geographic and product expansion experienced throughout the industry. Consolidation within the financial services industry has also prevailed.