By Nancy Raiden Titus
Journal Record Staff Reporter
The Oklahoma banking industry returned with a vengeance in
1992 and ranked among the top 10 in the nation for increases in
assets and loans, according to an independent research firm.
The state's 393 banks were 96.7 percent profitable and
reported record operating profits for the year of $327 million.
That was an increase of 35.7 percent from $241 million in 1991.
Austin-based Sheshunoff Information Services Inc. listed
Oklahoma as the state with the fifth highest improvement in asset
levels during the year, with an increase of 7.7 percent to $30.4
billion. This compared with assets of $28 billion a year
The state ranked ninth for its jump in total loans to $13.6
billion, up 6 percent from the $12.9 billion a year earlier. It
also had the 10th lowest figure for net charge-offs, with $70
million, a reduction of 11.9 percent from $79.6 million the year
The state's banks posted a 1.15 percent return on assets, up
from 0.88 percent in 1991.
The health of the industry also was seen in the Oklahoma City
Metropolitan Statistical Area, where 91 percent of the 68 banks
reporting were profitable.
Oklahoma banks had $240.8 million in non-performing loans, a
drop of 19.9 percent from the $300.7 million a year earlier.
Banks across the nation posted a record profit of $31.6
billion before extraordinary items during 1992 for a record
return on assets of 0.93 percent, according to Sheshunoff.
The total easily eclipsed the previous record profit of $24
billion set in 1988 and represented a 79.9 percent increase from
the 1991 profit level of $17.6 billion.
"Since the two main forces driving the record earnings of
banks and S Ls in 1992 were widening interest margins and
improved asset quality, the key to the industry's continued good
health is to focus on making quality loans, while carefully
managing the exposure to interest rate risk," said Con Rusling,
"Barring some calamity, 1993 should be another strong year for
U.S. savings and loans saw a profit of $2.4 billion for the
year, despite a fourth-quarter loss of $236 million. This
represented the first full-year profit for the savings and loan
industry since 1986.
About 94 percent of the nation's 11,450 banks were profitable,
reporting earnings of $33.4 billion for 1992. The profits were
partially offset by the $1.8 billion in commercial bank losses
reported for the period.
Likewise, 89 percent of the nation's 2,148 savings and loans
operating during the year were profitable, earning $6.3 billion
during 1992. The 11 percent of thrifts that were unprofitable
lost $3.9 billion during the period.
The West was the only region where savings and loans reported
a combined net loss in 1992, with $1.17 billion in red ink.
California thrifts reported the largest net loss in the country,
at $1.36 billion.
Almost every state in the nation reported positive earnings
for banks. The exceptions were Connecticut, which lost $9.5
million, and Washington, D.C., which lost $2.4 million.
All states showed at least some level of improvement in
bottom-line income, except Washington, which suffered a decline
of 1.8 percent.
After seven consecutive quarters of decline, total loans and
leases held in domestic offices of commercial banks showed their
first quarterly uptick _ with an increase of $9.6 billion during
the fourth quarter.
This improvement, which brought total domestic office loans
and leases to $1.82 trillion, was primarily attributable to
fourth quarter increases in various measures of domestic consumer
credit, such as home mortgage loans (up $8.6 billion, or 1.9
percent) and consumer loans (up $5.6 billion, or 1.6 percent).
The most significant increase for the quarter, although not
the largest, was in domestic commercial loans, which were up $1. …