ROA up, net interest margin down in Colorado, Wyoming and Montana

Although the economy is improving in the Rocky Mountain states, conditions among the region's banks remain uneven. FDIC third quarter profiles for Colorado, Wyoming and Montana show that return on assets at the banks rose, but net interest margin fell..In Colorado, ROA in the 2013 third quarter was 0.67 percent, up from 0.56 in 2011. ROA at banks in Wyoming increased to 0.93 percent from 0.90 percent. ROA at banks in Montana increased to 0.88 percent from 0.76 percent..Net interest margin at banks in all three states fell compared to the end of 2011, although Montana banks's net interest margin is still above 4.00 percent; it slipped to 4.02 percent from 4.08 percent. Banks in Wyoming saw net interest margin decrease to 3.76 percent from 3.84 percent. Banks in Colorado experienced a drop in net interest margin to 3.79 percent from 3.99 percent. Those numbers are an improvement over 2013 second quarter margins in the three states..Total assets in Colorado and Montana banks increased, but decreased in Wyoming. Colorado bank assets rose to $45.8 billion at the end of the third quarter from $43.6 billion in 2011 after a slight dip in the second quarter of 2013. Total assets at Montana banks also increased, growing to $26.8 billion from $22.4 billion in that same period. Wyoming bank assets, however, declined to $6.9 billion from $8.0 billion during that time..There are fewer banks in the region compared to 2011. Colorado's 100 banks represent a slight drop from the 108 it had two years ago. Wyoming has lost three of its 37 banks, and Montana now has 65, twelve fewer than in 2011..In all three states, commercial real estate was the predominant source of lending. In Colorado, CRE loans represent 225.87 percent of total risk-based capital. That number is very nearly a return to its 2011 figure after a dip to 208.71 percent in 2012. .In Wyoming, CRE loans make up 191.73 percent of total risk-based capital. That is an increase from 184.93 percent in 2011, but a decrease from 197.80 percent last quarter..In Montana, CRE loans are 144.10 percent of total risk-based capital, a decrease from 173.17 percent two years ago..Full FDIC third quarter profiles for Colorado, Wyoming and Montana can be found by following the links.