Related news in our Southern Shale
Eagle Ford banks challenged as deposits skyrocket
http://fuelfix.com/blog/2012/06/09/eagle-ford-banks-challenged-as-deposits-skyrocket/
South Texas landowners getting fat checks from oil companies for drilling on their land have been a boon to banks based in the Eagle Ford Shale.
Deposits at most of those banks have surged. The Karnes County National Bank’s deposits rocketed 110 percent to almost $168 million from the end of 2009 through the first quarter of this year.
Eleven other institutions registered jumps in deposits that ranged from 46.8 percent to 82.7 percent. By comparison, domestic deposits at U.S. banks increased 14.7 percent during the same period.
But the influx of deposits has left the Eagle Ford-area banks with something of a challenge: how to deploy that money at a time when loan demand isn’t nearly as strong.
“It’s a problem, but it’s a good problem,” said H.B. “Trip” Ruckman III, president and chairman of The Karnes County National Bank in Karnes City. Its deposits rose by $88 million from the end of 2009 to March 31, while its loans rose by $19 million.
“...South Texas landowners getting fat checks from oil companies for drilling on their land have been a boon to banks based in the Eagle Ford Shale....”
I work in the Eagle Ford. I see it everyday. It’s amazing.
It reminds me of what I read about the Alaskan Gold Rush in the early 1900s. Where once was a cattle field, in 6 months is a new hotel, resturant, etc. etc. You know the boom has hit when the Ford Dealership in the little town of Kenedy, TX had a Shelby Cobra on the showroom floor....and, of course, there are the “ladies of the night” as well. :)