One effect of contraction in the financial services industry
is an increase in the number of people who have been squeezed out
of their jobs as duplication is eliminated and economies of scale
allow larger organizations to operate more efficiently with fewer
Though the consolidation wind seems to have just begun blowing
in Oklahoma, the state had 4.7 percent of all the jobs lost
nationwide at banks and savings and loans between the second and
third quarter of 1992.
The state had a net loss of 346 jobs during the three-month
period which ended in September, according to a report from Bauer
Financial Reports Inc. of Coral Gables, Fla. This compared with a
total job loss of 7,344 for the nation as a whole.
Employee totals for both banks and thrifts were included in
the data to reflect the movement of employees from savings and
loans to banks.
Oklahoma's banks and thrifts had a total of 18,023 full-time
equivalent employees at the end of September, down 1.9 percent
from 18,369 at the end of June.
Ten or so mergers were completed in Oklahoma during the fourth
quarter of 1992, so their effects were not included in the
Bauer reported that the pace of job eliminations nationwide
seemed to have slowed in the third quarter. The company said that
banks and thrifts had cut 56,595 jobs for the 12-month period
which ended in June 1992. That figure represented a quarterly
average cut of 14,149 jobs.
Oklahoma's combined job-change totals for banks and thrifts
were not available for that time period, but the state had an
increase of 530 jobs at banks from the end of June 1991 to the
same period in 1992. Those figures do not take into account the
number of jobs that came into the banking industry from savings
and loans, however.
Oklahoma generally is seen to be a little behind the rest of
the country in industry consolidations, mainly because of weak
performance due to the economic problems of the 1980s. Now that
situation has turned around and profitability is widespread, the
pace of consolidations in the state is expected to pick up speed.
How that affects jobs, however, remains to be seen.
Bauer reported that the region with the largest reduction in
bank and thrift jobs was the Northeast, which cut 6,719 jobs
during the period. Other regional employment changes were:
Southeast, down 1,244; Central, down 1,508; Midwest, up 317;
Southwest, down 288; and Western, up 2,098.
The two states with the largest individual cuts also were from
the Northeast: New Jersey lost 3,240 and New York lost 2,567.
Florida came next with a net loss of 1,662 and was followed by
Washington, with a drop of 1,619. . .
Oklahoma banks continue to receive high marks by independent
Wakefield, Mass.-based Veribanc Inc. assigned its highest blue
ribbon rating to 122 of Oklahoma's banks, based on third quarter
1992 data. Of those, 26 were in central Oklahoma and 13 were
based in Oklahoma City.
Bauer Financial Reports assigned its highest rating to 164 of
the state's banks and to 11 banks in the metro area.
Veribanc's blue ribbon rating is a step above its high safety
and soundness rating of green with three stars, which indicates
profitable banks with equity capital of at least 5 percent of
Veribanc also noted that 11 Oklahoma City area banks had
received the blue ribbon rating for at least eight consecutive