The federal Office of the Comptroller of the Currency says the 91 community banks and thrifts it oversees in Minnesota are in good financial health.
The institutions under OCC jurisdiction are nationally chartered and account for about a quarter of the 400 or so banks based in the state.
"The trend is a positive one," said John Meade, a national bank examiner with the Office of the Comptroller of the Currency. "Some of the more severe problems that institutions in Minnesota were facing several years ago have abated quite a bit."
The OCC gave 85 percent of the Minnesota banks under its purview the agency's highest or second-highest overall rating. The number of problem banks declined. And the OCC says all those problem institutions are either stable or improving.
The earnings performance of the Minnesota banks overseen by the OCC exceeded the regional average.
"Minnesota institutions, the profitability is a positive in the district," Meade said. "It tracks very well, relative to the rest of the district."
But the OCC did give a less than satisfactory credit risk rating to a third of the banks, indicating concerns about the banks' getting repaid on some loans.