Thursday, September 29, 2022

Oklahoma banks post big profits for third quarter

Net income at Oklahoma banks increased by more than 50% overall from the second quarter to the third quarter of 2021.

The FDIC’s latest Quarterly Banking Profile, which was released in late November, showed good news for Oklahoma banks. After reporting $999 million in profits through the end of the second quarter, Oklahoma commercial banks showed more than $1.5 billion in profits by the end of the third quarter.
It was also almost a 50% increase over the profits shown through the end of three quarters last year, which stood at $1.05 billion.

Overall, throughout the country, FDIC-insured banks and savings institutions earned $69.5 billion in the third quarter of 2021, a 35.9% increase from a year before. Continued economic growth, improved credit conditions and a $19.7 billion decline in provision expense drove the increase, the FDIC said.

The average net interest margin declined by 12 basis points year-on-year in the third quarter to 2.56%, but was up six basis points from a record low last quarter. Net interest income increased 4% or $5.2 billion from last quarter and 72.1% of banks reported higher net interest income compared with a year ago. Average return on assets was 1.21%, up from 0.97% in the third quarter of 2020. Community banks reported net income of $8.6 billion, an almost 20% increase in the third quarter year-on-year, the FDIC said.

Compared with the same quarter last year, total loan and lease balances increased 0.1%, or $10 billion.
During the third quarter, three new banks were added, 39 institutions merged with other FDIC-insured institutions, one bank ceased operations and no banks failed. The number of banks on the FDIC’s problem bank list declined by five from the prior quarter to 46, the lowest level on record.