National loan-to-deposit ratio slips

Northwestern Financial Review, Jul 15-Jul 31, 2002

The number of states with average loan-to-deposit ratios topping 100 percent in 2001 decreased to six from twelve in 2000. According to a government report, banks in South Dakota had the highest average loan-to-deposit ratio in the nation at 130 percent, up from 120 percent. Indiana's average ratio was the second highest, at 119 percent, up from 106 percent.

Following were Washington and Ohio, both had ratios of 114 percent, down from 119 percent and 123 percent, respectively. Minnesota had the fifth highest at 105 percent. Banks in Arizona had the lowest average loan-to-deposit ratio, at 58 percent, down from 83 percent. Nationally, the average loan-to-deposit ratios fell in 38 of the 50 states last year. The nationwide average dipped to 86.2 percent, down from 89.8 percent.