FDIC report: Kansas banks did well in 2010

A new report from the Federal Deposit Insurance Corp. shows Kansas banks were slightly more profitable in 2010 than in 2009. Troubled loans moved lower, as did loan concentrations in certain sectors.

The FDIC's Kansas State Profile for Fourth Quarter 2010 based its data off of 326 FDIC-insured banks and savings and loans in Kansas, which is down from 339 institutions in 2009.

Those numbers include 57 banks and thrifts in the Wichita area, with $11.4 billion in deposits.

According to the report released Friday, the median ratio of past due and nonaccrual loans to total loans was 1.91 percent compared with 2.37 percent in 2009. The median ratio of net loan losses to total losses was 0.11 percent in 2010, down from 0.39 percent a year ago.

The report also said that the median return on assets was 0.71 percent compared with 0.65 percent in 2009.

Return on assets is a key measure of profitability and shows how much money a bank earns for each $100 it has in assets.

Rick LeCompte, a finance professor at Wichita State and commercial banking expert, said the numbers tell him that the industry is doing pretty good in Kansas despite a tough economy.

"When the situation does rebound, they will be able to lend because they are still making money in bad times," he said.

The report also showed that between 2010 and 2009 Kansas banks and thrifts lowered their loan concentrations in commercial and industrial loans, commercial real estate loans, and construction and development loans.

Aggregate total assets in 2010 were $62.9 billion compared with $62.3 billion a year ago.