Saturday, June 09, 2012

Deposits Skyrocket at Eagle Ford-Area Banks

Houston Chronicle --  "South Texas landowners getting fat checks from energy 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 influx of deposits has left the Eagle Ford-area banks with something of a challenge: how to deploy that money.

For example, 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 that time.
 
"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.

"We have had depositors come in with more than a million dollars at a whack. So it is a challenge to keep the money invested, he added."

HT: Stephen Taylor

6 Comments:

At 6/09/2012 3:15 PM, Blogger Boston's Finest said...

What do you think will happen next? I'd like to hear your input :)

 
At 6/09/2012 5:04 PM, Blogger Craig Howard said...

Gosh, I wonder if those banks even know what to do with real money instead of the fake Fed stuff. Bears well for the area's future.

 
At 6/09/2012 8:44 PM, Blogger Benjamin said...

And why a federally mandated ethanol program? GOP socialism?

 
At 6/09/2012 10:33 PM, Blogger J Scheppers said...

Craig beat me to it. But may be my take is slightly different.

I thought:

"The Ben Bernanke is happy and willing to change that real wealth into potential wealth as defined by the elected branches of the Federal Government."

 
At 6/10/2012 9:25 AM, Blogger VangelV said...

The problem is the economics of the process. When companies have to keep adding massive amounts of debt just to keep going all those paycheques may not be as secure as Mark imagines.

 
At 6/11/2012 4:59 AM, OpenID moneyjihad said...

Regarding "Boston's Finest," I really don't need to see a lewd photo of somebody's behind this morning.

 

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