Newspaper article THE JOURNAL RECORD

Oklahoma Banks Report $133 Million Profit in '89

Newspaper article THE JOURNAL RECORD

Oklahoma Banks Report $133 Million Profit in '89

Article excerpt

million for 1989, the highest in six years, according to the Federal Deposit Insurance Corp.

That compared to a revised breakeven year for 1988, said Ross Waldroff, financial analyst for the FDIC Division of Research. Previously, the federal agency had reported a $9 million profit by Oklahoma banks in 1988.

The 1989 result was the best for Sooner State banks since 1984, when they chalked up a $99 million profit. The banks suffered losses of $35 million, $228 million and $51 million in 1985-87.

Revised earnings for years prior to 1984 were not available.

For the fourth quarter of 1989, Oklahoma banks enjoyed a $25 million profit, compared to a revised $3 million loss for the same period of 1988.

"There is an overall improving current in asset recovery," Waldroff said of Oklahoma banks. "Even though their profitability is not outstanding, it points to an overall recovery track.

"The profitability average for the banks is very close to the national average, which indicates a better year for Oklahoma banks. In fact, they (national and Oklahoma banks) had an identical return on assets at 0.52 percent."

Oklahoma banks reported improvements in loans to individuals, farm loans, equity capital, net charge-offs, reserves and provision for loan losses and non-performing assets, countering national trends.

"Those are the sort of things you look for when you start charting recovery," noted Waldroff.

The FDIC reported figures for 430 Oklahoma banks for the year, down from 465 in 1988. Employment at those banks rose 1.5 percent to 16,249 from 16,001.

Equity capital increased 3 percent last year to $2 billion from $1.9 billion.

Non-performing assets declined 17.1 percent to $943 million from $1.1 billion.

Assets grew 0.6 percent to $26.28 billion at Dec. 31, 1989, from $26.12 billion the previous year. …

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