Newspaper article THE JOURNAL RECORD

Oklahoma Banks Post $9 Million Profit in '88

Newspaper article THE JOURNAL RECORD

Oklahoma Banks Post $9 Million Profit in '88

Article excerpt

reported Tuesday for Oklahoma banks for 1988, compared to a net loss of $106.9 million in 1987.

The statistics were released by the Federal Deposit Insurance Corp., one day after reporting that U.S. bank profits zoomed to $25.2 billion in 1988, an all-time high.

In the final quarter of 1988, Oklahoma banks earned an aggregate net income of $5 million, compared to reporting an aggregate net loss of $51 million for the quarter ended Dec. 31, 1987.

The Oklahoma statistics include results from banks that were open and operating at the end of 1988, and do not include banks that failed and were reopened during the year, said John Quinn, chief of the banking statistics section in the FDIC's office of research and statistics. The financial figures for the failed banks are recorded in the balance sheet for the FDIC, which lost $4.2 billion last year.

The number of problem Oklahoma banks, as classified by the FDIC, dropped to 121 by the end of 1988, compared to 147 at the end of 1987, Quinn said. The shortened list is due almost totally to the 25 bank failures that occurred in the state in 1988.

Quinn had no estimates for the number of bank failures expected this year, nor did he have the number of profitable and unprofitable banks in Oklahoma at Dec. 31. However, as part of the Southwest region, unprofitable returns were reported by 30 percent of Oklahoma banks, along with banks in Texas, New Mexico, Louisiana and Arkansas.

Net charge-offs, uncollectible loans that Oklahoma banks had to write off of their balance sheets as bad debt, totaled $256 million in 1988, down 23.7 percent from $335 million in 1987, Quinn said.

Non-performing assets, those bank assets that are not adding income to the bank, totaled $1.1 billion at yearend 1988, down 15.3 percent from $1.3 billion at yearend 1987.

Loan loss expenses, money Oklahoma banks added annually to their reserves for loan losses, were $222 million in 1988, down 40. …

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