Department of Financial Institutions
2007 Report Shows Growth in Financial Institutions

Press Release Date:  Monday, June 30, 2008  
Contact Information:  Kelly May, Public Information Officer
502-573-3390, ext. 252
800-223-2579, ext. 252

   FRANKFORT, Ky. (June 30, 2008) – The Kentucky Department of Financial Institutions (DFI) today released its 2007 annual report, which shows a healthy outlook for the finance industry in Kentucky.

   “Growth in the industry shows that consumers are confident with the safety and soundness of Kentucky financial institutions,” said Commissioner Cordell Lawrence. “We expect that our continued firm but fair regulation will keep the industry on the right track and ensure the entities we supervise adhere to standards of fair and ethical practices.”

   The 2007 Annual Report includes statistical and historical information about the financial services industries regulated by DFI, formerly the Office of Financial Institutions (OFI). On June 16, 2008, Gov. Steve Beshear signed an executive order abolishing the Environment and Public Protection Cabinet and creating the Public Protection Cabinet. As a part of that order, the former Office of Financial Institutions became the Department of Financial Institutions.

   In 2007, Kentucky’s state-chartered banks continued to do relatively well, even as the state and national economy slowed. OFI’s Bank Branch regulated 161 state-chartered commercial banks, five independent trust companies and numerous bank trust departments, bank holding companies and electronic data processors. As of Dec. 31, 2007, the banks held aggregate assets of approximately $39.4 billion. OFI’s bank examinations concentrated on fundamental banking principles relating to lending, investing, management quality, earnings and capital. 

   Although the number of Kentucky’s state-chartered credit unions continues to decline due to mergers, state-chartered credit unions remained financially strong. OFI’s Credit Union Branch supervised the activities of 28 state-chartered credit unions, ranging in asset size from $559,138 to more than $717 million. The total assets under supervision of the Credit Union Branch are about $1.3 billion. Total assets grew in 2007 at a rate of 6.34 percent, compared to the previous year’s 2.45 percent increase.

   OFI’s Compliance Branch licenses and regulates mortgage brokers and companies, payday lenders, consumer and industrial loan companies and money transmitters. As of Dec. 31, 2007, the branch supervised 1,995 licensees and 4,293 individual mortgage loan officers. OFI’s Compliance Branch received 268 written consumer complaints during 2007 and assessed a total of $95,500 in fines against various mortgage companies and mortgage brokers. 

   In 2007, the Division of Securities registered 1,671 broker-dealers, 85,190 broker-dealer agents, 112 issuer agents and 126 state investment advisers. There were 821 federally registered investment advisers and 2,524 state and federal investment adviser representatives. There were 6,485 filings for offerings of securities. Securities investigators opened 42 new cases, closed 36 cases and have 36 cases pending. OFI assessed about $75,000 in fines as a result of securities investigations.

   The full report can be found online at, or you may request a mailed copy by calling Kelly May at 502-573-3390, ext. 252.

   DFI is an agency in the Public Protection Cabinet. It supervises the financial services industry by examining, chartering, licensing and registering various financial institutions, securities firms and professionals operating in Kentucky. DFI’s mission is to serve the public through effective and efficient regulation that promotes consumer confidence and economic growth.


2007 Annual Report