Oklahoma Bankers Association
OBA News and Information
Linked In Email News

Oklahoma banks continue showing positive earnings

Results shown at the end of the third quarter of this year confirm the number of Oklahoma banks continues to shrink, dropping from 237 charters in 2012 to 221 at Sept. 30, 2014. In addition, Oklahoma banks continued their upward trend in earnings at the end of the quarter.

“Oklahoma banks and thrifts continued to show positive earnings at the end of the third quarter,” said OBA President Roger Beverage. “Total assets have grown to $94.4 billion and net charge-offs to total loans and leases has dropped to 0.08 percent.

“Net interest margins continue to challenge banks at all levels. However, Oklahoma banks continue to outperform banks across the country (3.52 in Oklahoma vs. 3.15 nationally). Community banks had stronger loan growth in addition to higher NIMs. It continues to be a struggle for some banks, however. Seven Oklahoma banks were not profitable in the quarter, and loan loss provisions appear to be diminishing and, thus, are no longer fueling growth. That's really a good thing.”

Beverage noted the pace of consolidation seems to increasing.

“Given the current operating environment it's no wonder that some banks are looking for a merger partner or an acquisition in order to survive,” Beverage said. “All of us here are working to relieve some of the regulatory costs that have been imposed on banks and their customers by Dodd-Frank.”

Back to top