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Oklahoma banks turn healthy First Quarter profits

Quarterly Banking Profile shows good news

The Federal Deposit Insurance Corporation announced on May 27th that U.S. banks and thrifts posted the best results in four quarters for the first quarter of 2009.

Meanwhile, Oklahoma banks continued their steady performance, earning $190 Million for the First Quarter, and increasing equity capital by more than $256 Million.
In its latest Quarterly Banking Profile, the FDIC reported total net income of $7.6 Billion from insured institutions during the First Quarter, a significant recovery from the $36.9 Billion net loss the industry reported at 12/31/08. Year-over-year however, earnings remain down 60.8 percent from the $19.3 Billion earned in the First Quarter of 2008.

In Oklahoma, bank earnings were down slightly from the same period a year ago, from $198 Million or $8 Million less this year. It's about the same as it was at the end of the First Quarter in 2007 ($191 Million then vs. $190 Million in 2009).

Higher loan-loss provisions, increased goodwill write-downs, and reduced income from securitization activities all contributed to the year-over-year earnings decline. While three out of five insured institutions reported lower net income in the first quarter, more than 75 percent were profitable.

In Oklahoma, only 6.45 percent of the banks were unprofitable, which is considerably better than the national numbers of 21.19 percent. This percentage is up from the same period a year ago in Oklahoma, however - 4.33 percent in 2008 – and up considerably over 2007 (2.73 percent).

The report also said that 21 banks failed across the country in the first quarter of the year. That's the highest quarterly total since 1992, and the number of "problem banks" increased to 305 from 252 a year ago. No banks have failed so far in Oklahoma.

Total assets fell by $302 billion, while the industry as a whole added $82.1 billion in new equity capital in the quarter. Collectively, the industry's loan loss provisions rose 64 percent compared to a year ago.


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