Bankers' outlook on economy worst in five years

Majority don't expect their local real estate markets to hit
bottom in the next six months
CHICAGO--(Business Wire)--
More than half (56%) of the bank executives questioned in a recent
national survey are pessimistic about the state of the national
economy for 2008, while less than one out of ten bankers are
optimistic about the economy. The results, part of the 15th Survey of
Bank Executives, a Grant Thornton LLP study conducted in association
with Bank Director magazine, show the highest pessimism and lowest
optimism for the economy in the question's five year history.

In addition to being pessimistic on the economy, bankers are also
the most pessimistic they've ever been during the course of our survey
on their outlook for the business of banking. Fifty-four percent
report that they are pessimistic, and only 10 percent report that they
are optimistic about the business of banking for the coming year.

"Clearly, bankers believe that there is more fallout ahead for the
national economy," said John Ziegelbauer, managing partner of Grant
Thornton LLP's financial institutions practice. "And based on their
outlook for their local real estate markets, many of them see more
difficult times are ahead. The historic write-offs we have seen in the
past few weeks only confirm that bankers were correct in their
prognostications."

Other findings from the survey:

-- 64 percent of bank executives do not anticipate their local
real estate market to hit bottom for six months or more.

-- 31 percent of bankers agree that the Federal Reserve System is
doing a good job in managing the economy; 21 percent do not
agree that the Fed is doing a good job.

For a copy of the survey, which will be available the week of
April 21, please contact Grant Thornton's Office of Financial Services
at 877.835.1723 or FinancialServices@gt.com.

About the survey

Grant Thornton's Survey of Bank Executives provides a snapshot of
the banking world, presenting a compilation of opinions of industry
leaders on the current state and future direction of the industry. In
late November 2007, Bank Director magazine mailed questionnaires to a
national sample of 3,000 chief executive officers and other senior
officers of banks and savings institutions. A total of 356 completed
questionnaires were returned for a response rate of 11.9 percent.

Sixty-one percent of the respondents report assets of less than
$500 million, with 38 percent reporting assets greater than $500
million. The executives defined the community they primarily serve as
suburban (46%), rural (33%) or urban (22%). More than one-third (35%)
are publicly held, 53 percent are private corporations and 12 percent
have mutual charters.

About Grant Thornton LLP

Grant Thornton LLP is the U.S. member firm of Grant Thornton
International, one of the six global accounting, tax and business
advisory organizations. Through member firms in more than 110
countries, including 51 offices in the United States, the partners and
employees of Grant Thornton member firms provide personalized
attention and the highest quality service to public and private
clients around the globe. Visit Grant Thornton LLP at
www.GrantThornton.com.

Grant Thornton LLP
Kara McFarland
T 312.602.8469
E Kara.McFarland@gt.com

Copyright Business Wire 2008