Oklahoma Banks

Oklahoma banks posted a return on assets of 1.39% in Q1 2026, up 3 basis points from 1.36% in Q4 2025 and up 4 basis points from 1.34% a year earlier. The YoY improvement is stable rather than accelerating: the QoQ gain of 3 basis points is comparable to the YoY gain of 4 basis points, indicating flat momentum. At 1.39%, Oklahoma's ROA stands 19 basis points above the national benchmark of 1.20%, placing the state's banking industry in the top quartile of profitability among U.S. regions.

Net interest margin at 4.25% decreased only 2 basis points QoQ from 4.27% but increased 10 basis points YoY from 4.15%, signaling a decelerating expansion. The margin leads the national average by 43 basis points, a spread driven by Oklahoma's concentration of Agricultural specialists (21.3% of institutions, NIM 3.84%) and Commercial specialists (56.1% of institutions, NIM 3.92%). Credit Card specialists—only 10 banks, or 0.2% of the cohort—post an outsized NIM of 13.80%, 9.99 percentage points above the national average, but their small count limits aggregate impact. The efficiency ratio increased to 63.82% from 63.54% QoQ, a 29 basis point deterioration, but decreased 86 basis points YoY from 64.68%. At 63.82%, Oklahoma's efficiency ratio sits 32 basis points below the national benchmark of 64.14%, indicating better cost discipline than the broader industry. Noninterest income as a percentage of revenue at 0.15% decreased sharply from 0.68% QoQ—a 53 basis point decline—but remained stable YoY at 0.16%, down only 1 basis point from a year earlier.

The specialization gradient is pronounced. Mortgage specialists operate at an efficiency ratio of 76.96%, 12.81 percentage points above the national average and the highest among all specializations, reflecting the capital-intensive, lower-margin nature of residential lending. Agricultural specialists at 59.51% and Credit Card specialists at 54.43% lead on efficiency, benefiting from lower operating costs relative to revenue. Commercial banks at 64.09% track close to the national norm. If the QoQ efficiency deterioration of 29 basis points continues at the current pace, Oklahoma's efficiency ratio will rise above 64% by Q2 2026, eroding the current advantage over the national benchmark.

Oklahoma banks' asset growth accelerated to 5.14% YoY in Q1 2026, up from 4.61% in Q4 2025 and 3.86% a year earlier—an 11.43 percentage point acceleration QoQ and a 32.95 percentage point acceleration YoY. The YoY acceleration is the dominant trend, signaling a sharp upward shift in balance-sheet expansion over the past year. At 5.14%, Oklahoma's asset growth sits only 2 basis points below the national benchmark of 5.15%, effectively matching the U.S. banking industry's pace.

Loan growth at 6.33% YoY decelerated 6.93 percentage points QoQ from 6.81% in Q4 2025 but accelerated 51.23 percentage points YoY from 4.19% a year earlier. The QoQ deceleration indicates a cooling in the most recent quarter, but the YoY acceleration remains the stronger signal: loan portfolios expanded significantly faster in Q1 2026 than in Q1 2025. Oklahoma's loan growth at 6.33% leads the national average of 6.20% by 13 basis points. Deposit growth at 4.32% YoY decelerated 4.37 percentage points QoQ from 4.51% but accelerated 6.64 percentage points YoY from 4.05%. The YoY acceleration is modest compared to loan growth, and the 4.32% pace trails the national benchmark of 5.02% by 70 basis points, the widest gap among the three growth metrics. The mechanical result: loan growth at 6.33% outpaced deposit growth at 4.32%, driving the loan-to-deposit ratio upward YoY from 72.69% to 73.83%, even as the ratio declined QoQ due to the sharper deceleration in loan growth.

The specialization mix shapes the growth trajectory. Agricultural banks—21.3% of Oklahoma institutions—face commodity-cycle headwinds that constrain loan demand in softer pricing environments, while Commercial banks—56.1% of the cohort—drive the bulk of balance-sheet expansion. Credit Card specialists, though only 10 banks, posted the highest ROA at 2.26% and the highest NIM at 13.80%, suggesting strong revenue generation despite their small aggregate asset footprint. If deposit growth continues to trail the national pace by 70 basis points per quarter, Oklahoma banks will face increasing reliance on non-deposit funding sources or will need to decelerate loan growth to maintain the current loan-to-deposit ratio below 74%.

Oklahoma banks' delinquency rate increased to 1.02% in Q1 2026, up 10 basis points from 0.92% in Q4 2025 and up 5 basis points from 0.97% a year earlier—the highest level in the recent series shown. The QoQ increase of 10 basis points is double the YoY increase of 5 basis points, signaling an accelerating deterioration rather than a stable trend. At 1.02%, Oklahoma's delinquency rate sits 32 basis points above the national benchmark of 0.70%, placing the state's banking industry in the higher-risk tier among U.S. regions.

The nonperforming asset ratio at 0.75% increased 5 basis points both QoQ from 0.70% and YoY from 0.70%, indicating a stable upward drift rather than a sharp spike. At 0.75%, the NPA ratio stands 24 basis points above the national average of 0.51%, consistent with the elevated delinquency rate. Tier 1 capital at 13.69% increased 2 basis points QoQ from 13.67% and 10 basis points YoY from 13.59%, signaling stable capital accumulation. Despite the increase, Oklahoma's Tier 1 ratio sits 57 basis points below the national benchmark of 14.26%, indicating a thinner capital cushion relative to the broader industry. The capital ratio remains well above regulatory minimums, but the 57 basis point gap suggests less room to absorb future credit losses than the national average.

The specialization gradient is pronounced. Credit Card specialists post a delinquency rate of 2.57%, 155 basis points above the national average of 0.70% and the highest among all specializations, reflecting the unsecured, higher-risk nature of credit card lending. Agricultural specialists at 0.63% and Mortgage specialists at 0.57% operate below the national average, benefiting from secured collateral and lower default propensity. Commercial banks at 0.72% track close to the national norm. If the QoQ delinquency increase of 10 basis points continues at the current pace, Oklahoma's delinquency rate will exceed 1.10% by Q2 2026, widening the gap with the national average to over 40 basis points and potentially triggering heightened supervisory attention for institutions with concentrated Agricultural or Commercial portfolios.

Oklahoma banks' loan-to-deposit ratio decreased to 73.83% in Q1 2026, down 1.57 percentage points from 75.41% in Q4 2025 but up 1.14 percentage points from 72.69% a year earlier. The QoQ decline marks a shift from the YoY upward trend, signaling that deposit growth outpaced loan deployment in the most recent quarter. The ratio remains 2.54 percentage points below the national benchmark of 76.38%, indicating a more conservative lending posture relative to the U.S. banking industry.

Two ways to measure liquidity posture. The loan-to-deposit ratio at 73.83% is the aggregate measure; it reflects the mechanical relationship between deposit growth at 4.32% YoY and loan growth at 6.33% YoY. The QoQ decrease is driven by deposit growth decelerating only modestly (from 4.51% to 4.32%, a 4.37 percentage point deceleration) while loan growth decelerated more sharply (from 6.81% to 6.33%, a 6.93 percentage point deceleration). The result: deposits gained ground relative to loans in the quarter, compressing the ratio. Noninterest-bearing deposit share decreased to 23.03% from 23.24% QoQ and from 23.47% YoY, a 44 basis point decline over the year. Despite the decline, Oklahoma's NIB share at 23.03% remains 1.43 percentage points above the national average of 21.60%, indicating a stickier, lower-cost deposit franchise than the broader industry.

The Agricultural specialization—21.3% of Oklahoma banks—and the Commercial specialization—56.1% of Oklahoma banks—show distinct liquidity patterns. Agricultural banks typically operate with lower loan-to-deposit ratios due to seasonal lending cycles and commodity-price volatility, while Commercial banks push closer to national norms. The state's 73.83% ratio, below the 76.38% national figure, reflects the weight of Agricultural institutions in the mix. If the QoQ deceleration in loan growth continues at the current pace, the loan-to-deposit ratio will fall further below 73% by Q2 2026, widening the gap with the national average.