OKLAHOMA CITY – The number of banks in the Sooner State continues to shrink but assets have grown significantly.
The Federal Deposit Insurance Corp. counted 181 banks in Oklahoma during the fourth quarter of 2021. In comparison, Oklahoma had 190 banks in Q4 of 2020, 193 banks during Q1 and Q2 of 2020, and 201 banks in Q4 of 2018, FDIC records reflect.
Consolidation, not institutional failure, is the reason.
The survivors have realized steady growth in assets: from $159.49 billion in Q4 2020 to $173.49 billion in Q4 of 2021, an 8.8% increase.
Of the 181 banks in Oklahoma at the end of last year:
• 56 of them (30.9% of the total) had assets of less than $100 million.
• 44 of them (24.3%) had assets of $100 million to $250 million.
• 65 of them (35.9%) had assets ranging from $250 million to $1 billion.
• 13 banks (7.2%) reported assets of $1 billion to $10 billion; and
• Three banks (1.7%) have assets of more than $10 billion each.
Oklahoma’s banks reported end-of-year net income for 2021 at $1.925 billion. Total deposits on Dec. 31, 2021, were $120.25 billion. Return on assets at year’s end was reported as 1.42%.
According to the FDIC, 2.79% of Oklahoma’s banks were deemed unprofitable by the end of 2021, compared to 2.09% a year and a half earlier, on June 30, 2020.
The FDIC’s most recent state profile shows that during Q4 of last year, the Lawton market had 13 banks with $2.16 billion in deposits; the Oklahoma City market, 71 banks with deposits of $50.37 billion; Tulsa market, 59 banks with $37.4 billion in deposits; Fort Smith-Arkansas/Oklahoma market, 20 banks holding $5.75 billion in deposits; and the Enid market, 14 banks with $2.7 billion in total deposits.
The banks in those five markets constituted 177 of the 181 in the state as reported by the FDIC.
In an examination of the quality of assets held by Oklahoma banks, the FDIC found that past-due and nonaccrual loans declined from 1.59% of total loans in Q4 of 2020 to 1.03% in Q4 of 2021. Net loan losses as a percent of total loans in 2021 shrunk to 0.03%, compared to 0.11% in 2020 and 0.13% in 2019.