Newspaper article THE JOURNAL RECORD

First Interstate Bank Improves Loan Performance Categories

Newspaper article THE JOURNAL RECORD

First Interstate Bank Improves Loan Performance Categories

Article excerpt

By Nancy Raiden Titus Three of the state's four largest banks experienced decreases in the amount of funded loans, loan-to-deposit ratios and non-residential real estate loans since 1987.

First Interstate Bank of Oklahoma NA was that fourth bank which experienced an increase in each category.

The data was based on information from call reports, which banks are required to submit to regulators every quarter. The data examined was from the report in December 1987 and September 1990, the latest which was available.

The other three banks were Tulsa-based Bank of Oklahoma NA, Liberty National Bank and Trust Co. of Oklahoma City and First National Bank and Trust Co. of Tulsa.

``We used to be known as a bank that wouldn't lend money, but we only lend to people who will pay us back,'' said Leon Royer, executive vice president and chief lending officer for First Interstate.

``Our total deposits remain about the same, but we have kept on churning out the loans.

``Our loan-to-deposit ratio is highest of any large bank in Oklahoma, and that is without access in a significant way to the Tulsa market.

``The competition might say we are buying part in other First Interstate loans and not funding them locally. In 1990, our participation purchases - loans bought from other banks - were $39 million, but the participation purchases we sold off were $88 million.

``We sold over two times as much as we purchased. We have generated a lot of capital for the state by being able to fund credit and sell participations.''

First Interstate had a 133 percent increase in the amount of funded loans for the period. Funded loans are gross loans less bankers' acceptances. The bank reported funded loans of $492 million in September 1990, compared to $211 million in December 1987.

``We have more funded loans out than any other bank in Oklahoma City,'' Royer said. …

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