Aug. 16--St. Louis bankers held tight to their money as spring turned to summer. New figures from bank regulators indicate that local banks cut back lending slightly in the quarter that ended in June.

The latest figures show that banking isn't a rosy business these days.

Profits are low, and the percent of problem loans rose during the quarter at eight of the 10 largest locally based banks, according to preliminary data from the Fed. Still, the vast majority of local banks remained stubbornly profitable during the worst recession in a generation. Of 77 banks based in St. Louis, 15 lost money last quarter.

Only three small banks -- Champion, WestBridge and Gateway -- are not considered "well-capitalized" under federal banking standards. That puts them on the worry list for bank regulators.

"We really only have a handful of banks in St. Louis that are exceptionally weak," said Julie Stackhouse, chief bank regulator at the Federal Reserve Bank of St. Louis. "It's not anticipated that we will have a lot of bank failures."

Rick Hummell, president at WestBridge, said he is "very close" to a deal with a group of investors who would provide new money and "have an interest in running the bank."

WestBridge is under orders from the FDIC to raise capital. Capital is a cushion of owners' money in a bank that serves to absorb losses and prevent failure.

Last week, First Banks announced that it was canceling dividends, delaying payment on some debt and selling off its Texas branches in the face of $182 million in losses in the first half of the year. The bank said the delayed debt payments are permitted under its loan contracts.

First Banks bet heavily on the California real estate development and lost big as that state's housing market collapsed.

Centrue Bank announced an $16.2 million loss and suspended its dividend amid a sharp rise in delinquent loans. Centrue is based in St. Louis, but has only a small operation here. Most of its branches are in northern Illinois.

Loans to housing developers are a common thread at troubled St. Louis banks. But bank regulators worry that problems are now popping up in other forms of commercial real estate lending, such as shopping centers and office buildings.

Banks have been trying to back away from commercial real estate loans -- to the consternation of building owners -- but they still represent 38 percent of the average bank's loan portfolio in St. Louis, down from 40 percent a year ago.

"It's one of the bigger concerns we're hearing out there," said the Fed's Stackhouse.