The Office of the Comptroller of the Currency reported yesterday that the financial condition of community national banks and federal savings associations in its nine-state Central District improved in 2013 as banks focused on strengthening risk management systems to help boost their performance.
You can see the OCC’s report here
OCC Director commented on the encouraging news:
“The renewed emphasis by OCC-supervised institutions on their people, policies, and processes has quite clearly contributed to these encouraging trends,” said OCC District Deputy Comptroller Bert Otto.
Michigan Banks
Michigan is home to 24 employees and two OCC offices, one in Detroit and one in Iron Mountain. The OCC supervises 24 Michigan banks with assets totaling $6.3 billion.
According to the report Michigan banks should encouraging performances, including:
• Ratings for OCC-supervised community banks slightly improved in 2013, with 75 percent assigned a composite rating of 1 or 2.
• Problem bank levels have fallen 40 percent since their 2008 peak. Remaining problem banks in Michigan are either stable or improving.
• Credit risk continues to be the primary concern, with more than one-half of the banks rated as high, or moderate and increasing, in this area. Asset quality metrics reflect greater challenges for Michigan’s OCC-supervised banks than the district average. Though the metrics have improved in the last year, they continue to lag the district average.
• While the net interest margin slipped at Michigan banks supervised by the OCC in 2013, it compares well to the rest of the district. However, profitability overall was hampered by higher overhead expenses and risk in credit portfolios.
• Capitalization is good at OCC-supervised Michigan banks, and higher than district averages. Asset growth in 2013 was limited.
• MRAs in Michigan banks increased in 2013, though they remain relatively low. Credit risk management and operational risk were among the issues cited most often.
Questions? Comments?
Email: Jeshua@dwlawpc.com
Purpose Driven General Counsel 