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Third quarter numbers show continued earnings success for Oklahoma banks

Oklahoma banks continue on their course to another record earnings year in spite of the problems being faced in the energy sector, according to the latest numbers released by the FDIC last week.  The following chart confirms that trend by showing earnings results through three quarters since 2001.

Importantly, the percentage of noncurrent loans to total loans in Oklahoma banks continues to decline.  That percentage has dropped from 4.02 percent in 2013, to 3.89 percent in 2014, and to 3.09 percent this year. 

According to the FDIC, the industry's net income for the quarter totaled $40.4 billion, up 5 percent from this same time last year. The FDIC attributes much of this gain comes from reductions in expenses for litigation reserves rather than an increase in net operating revenue at large banks. 

Again, according to the FDIC news release, well over half of all banks, or 58.9 percent, reported higher quarterly earnings than the year before. The proportion of banks that were unprofitable fell to 5 percent, compared with 6.6 percent in third quarter 2014. The average return on assets was essentially unchanged at 1.02 percent (compared to 1.38 for Oklahoma!), versus 1.01 (1.38 percent for Oklahoma!) the year before.

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