Significant Number of West Region Bank Execs See A Double-Dip Recession and Are Pessimistic On U.S. Economy in Coming Months 30% of Western bankers expect to increase hiring in the next six months

LOS ANGELES, CA, October 20, 2010

West region bankers are again becoming pessimistic about the economy, according to Grant Thornton LLP's 17th Bank Executive Survey, conducted in conjunction with Bank Director magazine. Only 18% of Western bank executives believe the U.S. economy will improve in the next six months, while 21% believe that it will actually get worse. This is a statistically significant drop in how West region bankers felt about the U.S. economy six months ago when 43% said that they expected the economy to improve.

"This outlook is consistent with what we are seeing with our other surveys," noted Jim Pulsipher, Audit Partner & Southern California Financial Institutions Practice Leader. "Bankers, just like other business leaders, are feeling the uncertainty in the market at the moment."

Of those West region bankers who believe there will be a double-dip recession, 32% believe the primary cause will be high levels of government spending and another 25% believe to the primary cause will be continued levels of high unemployment. On a nation-wide basis, more than half of the bankers surveyed believe there will be a double-dip recession compared to 43% in the West.

Twenty-nine percent of Western bank executives report that their bank will increase hiring in the next six months, compared to only 23% of bankers nationally.

Do you feel that the U.S. economy will improve / remain the same / get worse in the next six months?

National West region
Improve 15% 18%
Remain the same 60% 61%
Get worse 25% 21%

Do you feel that your local economy will improve / remain the same / get worse in the next six months?*

National West region
Improve 18% 18%
Remain the same 62% 57%
Get worse 20% 25%

Do you expect the number of people you employ at your bank to increase / remain the same / decrease in the next six months?*

National West region
Increase 23% 29%
Remain the same 60% 50%
Decrease 17% 21%

Do you anticipate that the U.S. will experience a double-dip recession? (Respondents who replied "yes" were allowed to select more than one answer.)

National West region
I do not believe there will be a double-dip recession 49% 57%
Yes, high levels of government spending will be a cause of a double-dip recession 35% 32%
Yes, Europe's debt crisis will be a cause of a double-dip recession. 15% 14%
Yes, high levels of unemployment will be a cause of a double-dip recession. 35% 25%
Yes, the Gulf oil spill will be a cause of a double-dip recession. 3% 4%

* Percentages may not total 100 due to rounding.

About the Survey
Grant Thornton LLP and Bank Director magazine conducted this national survey of bank CEOs and CFOs from July 27 to Aug. 20, 2010, with 231 respondents nationally and 28 West region respondents. Sixty-two percent of the respondents were from small banks (those with less than $500 million in estimated assets at the end of 2009), while the remaining 37 percent were from large banks (those with more than $500 million in estimated assets at the end of 2009). Regarding ownership structure, 33 percent report that they are public institutions, 50 percent are private and 18 percent are mutual. To see past survey results, please go to http://www.GrantThornton.com/banksurvey.

About Grant Thornton LLP
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