Stay Curious. Stay Connected.
MailNewsletters♡Donate Now
Sign up
*Password must be at least 8 characters and contain one uppercase letter, one lowercase letter, one number and one symbol.
Already have an account?
By submitting, you consent that you are at least 18 years of age and to receive information about MPR's or APMG entities' programs and offerings. The personally identifying information you provide will not be sold, shared, or used for purposes other than to communicate with you about MPR, APMG entities, and its sponsors. You may opt-out at any time clicking the unsubscribe link at the bottom of any email communication. View our Privacy Policy.
Sign in to your profile
Forgot Password?
New to MPR News?
Welcome back
to news
for you
Reset Password

Enter the username on file and we'll send you a code to reset your password.

Still require assistance or not sure what your User Name is?
Welcome back
to news
for you
Email Verification

A verification code has been emailed to

Still awaiting the code?
Martin Moylan
ST. PAUL, Minn.

Minn. community banks' health improves slightly

Go Deeper.

Create an account or log in to save stories.

Log inCreate a free Account

Like this?

Thanks for liking this story! We have added it to a list of your favorite stories.

Show me!

The financial performance of Minnesota's 349 community banks improved slightly in the third quarter of this year.

The banks reduced problem loans and saw improved loan growth, but profits remain historically low, the Federal Reserve Bank of Minneapolis reported Monday.

"Profitability has yet to return to its historical norms," said Ron Feldman, the top bank regulator at the Minneapolis Fed.

"For the Twin Cities in particular but for the state as a whole, it's kind of flat-lining where it is now," he said. "It is not on an upward trajectory, where it looks like it's going to cross the historically norm level, even get to it right away."

Profits from lending are down because of depressed interest rates and relatively low levels of lending, Feldman added.

Fewer banks are drawing extra scrutiny from the Fed because of concerns about their financial health, he noted. About a fifth of the state's community banks are now getting more intense looks from regulators, down from about one third three years ago.