Bank Deposits Rising
Banks in Western North Dakota are doing better than their counterparts in other shale plays. That's the primary discovery in a report released by the Minneapolis Federal Reserve Bank.
Bakken institutions have seen growth in deposits, construction, land development loans, and commercial & industrial loans. The same can be said for banks in Arkansas, Oklahoma, Pennsylvania, and Texas, but the increases are not as large as those experienced in the Bakken.
A few takeaways from the report include:
- Deposits at banks in the Bakken region grew 49% from 2010 to 2012. That compares growth in Louisiana of 39% from 2008-2010
- Construction & land development loans secured by real estate have doubled in the past year compared to areas in Oklahoma and Pennsylvania that have seen 29% and 20% growth, respectively
- Profitability has also been impacted. The return on average assets has increased to 1.46% compared to just 0.92% in the rest of the state
The only real problem with all the growth might be finding qualified employees. There such a high demand in the oilfield that banks have a hard time finding qualified people.
Read the full report at minneapolisfed.org