Bakken Banks See "Exceptional" Performance Compared To Other Shale Areas

Bank Deposits Rising
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