Wednesday, December 2, 2020

FDIC releases 2019 results

This week, the Federal Deposit Insurance Corporation released the year-end numbers for the banking industry. Here are the highlights:

  • For 2019, net income declined 1.5 percent to $233.1 billion.
  • Quarterly net income declined 6.9 percent from fourth quarter 2018.
  • Net interest margin declined from a year ago to 3.28 percent.
  • Community banks’ quarterly net income improved 4.4 percent from a year ago.
  • Total loan and lease balances grew from the previous quarter and a year ago.
  • The number of banks on the “problem bank list” remained low.

In Oklahoma, we’re now down to 198 FDIC-insured institutions. Net income for the banking industry in our state dropped slightly – to $1.642 billion compared to $1.698 billion in the previous year (which was a record earnings year). Net interest margin (NIM) also dropped slightly – from 3.76% in 2018 to 3.64% in 2019.

Return on assets dropped to 1.25% at the end of 2019, compared to 1.47% in 2018. Return on equity also dropped slightly to 11.68% compared to 14.16% the previous year. Four percent of Oklahoma banks were unprofitable last year compared to 3.48% in 2018. And finally, non-current loans are up compared to 2018 – 4.17% compared to 2.94%.

Click here to view the industry’s results for the past 3 years.