Arizona banks on trend to recovery

Arizona's banking industry shrank dramatically during 2011, but the survivors ended the year on a much healthier note. Some 48 percent of Arizona-based banks were unprofitable in last year's fourth quarter, compared with 68 percent that lost money one year earlier and 84 percent in 2009, reported the Federal Deposit Insurance Corp. Local banks' non-current loans and non-performing assets both declined, and average returns on equity and assets both improved. But Arizona counted just 31 banks headquartered in the state with 3,200 employees at year end, compared with 40 banks and nearly 3,700 workers one year earlier. Failures, mergers and acquisitions trimmed the number of local institutions. The statistics for Arizona banks exclude Wells Fargo, Chase, Bank of America and dozens of other banks that operate in the state but aren't based here. "Locally, things continue to get better," said Dave Ralston, chief executive officer at Bank of Arizona. "Most banks are close to getting out of the woods, but they're not out yet."

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