Banking profits increase in second quarter

Despite the drop in net interest revenue, 64.1% of Oklahoma banks reported more net interest income than the previous year, according to the recently released Quarterly Banking Profile by the FDIC for the second quarter.

For Oklahoma banks, the average return on assets was 1.24% in the second quarter of 2020, up from 0.36% the previous quarter. The FDIC reported that community banks earned $8.3 billion in net income in the second quarter, up 29% year-on-year.

Total loan and lease balances grew 0.3% last year, the first quarterly gain in loan volume since the second quarter of 2020.

The net income of commercial banks has increased by $489 million, as well as total assets coming ahead of last quarter by $1.1 billion. Total deposits also increased by $1.3 billion. The percent of unprofitable institutions increased by 0.04% and the percent of institutions with earning gains jumped 1.85%.

To read more about Oklahoma’s numbers in the State Banking Performance Summary from the Quarterly Banking Profile, click here.