Thursday, April 18, 2024

Fourth quarter marks slowed progress for Oklahoma banks

Oklahoma’s commercial banks saw a decrease in net income earnings in the fourth quarter from the fourth-quarter mark from last year, according to the FDIC’s Quarterly Banking Profile.
The Quarterly Banking Profile was released at the end of February and showed mixed news for both the state’s banks and the nation’s.

Oklahoma banks saw their net income increase from $1.3 to $1.8 billion from the end of the third quarter of 2022 to the end of the fourth. The $1.8 billion, however, is behind the $1.9 billion showed at the end of the fourth quarter in 2021.

Deposits also lagged a bit behind from the 2021 numbers, with $118 billion at the end of 2022, compared to $120 billion in 2021.

These slight negatives, though, were balanced by other positives. Total assets of Oklahoma banks increased from $141 billion at the end of 2021 to $144 billion in 2022. The percent of unprofitable insitutions also saw a marked decrease, from 2.79% at the end of 2021 to just 1.69% at the end of 2022.

All the country’s FDIC-insured banks and savings institutions showed a similar story as Oklahoma’s banks. The numbers from the Quarterly Banking Profile reflected aggregate net income of $68.4 billion in fourth quarter 2022, a decrease of $3.3 billion (4.6%) from the third quarter.

“The banking industry continues to face significant downside risks from inflation, rising market interest rates and geopolitical uncertainty that could hurt bank profitability, weaken credit quality and capital, and limit loan and deposit growth,” said FDIC Chairman Martin Gruenberg. “These risks will be matters of continued supervisory attention by the FDIC over the coming year.”