State banks turn profit
Oklahoma's 237 FDIC-insured institutions again posted strong returns in the third quarter, booking $323 million in profits. That was down slightly from the $339 million of the previous quarter, but higher than a year ago.
Just 3.8 percent of state banks were unprofitable in the July through September period, while 64 percent of institutions registered earnings gains.
Roger Beverage, president of the Oklahoma Bankers Association, said the FDIC numbers “continue to tell the good story of Oklahoma's banking industry.”
Beverage said loan demand in the state remains “tepid,” and decreasing net interest margins have made it tougher to turn a profit, particularly for small banks. A small increase in noncurrent loans and leases also raises a bit of concern, he said.
“But everything else is looking great,” Beverage said, particularly growing levels of return on assets and return on equity.
“Oklahoma is doing a lot better than the national averages and that is something to be proud of,” he said.
Don Mecoy, Business Editor