Local banks say they are strong

While nationally prominent banks like Washington Mutual, Wachovia and IndyMac have been victims of the economic meltdown, Permian Basin-based bankers say their institutions remain strong.

"Our loan demand continues to be good, deposits continue to be good," said John Grist, chief executive officer of Andrews-based Commercial State Bank, which also has locations in Odessa, Midland, Lubbock and Seminole.

Greg Simmons, Odessa market president for Community National Bank of Midland, said his bank is still seeing the positive effects of the spike in oil prices over the last few years.

"We're doing real well," he said.

Both men said their banks avoided the sub-prime loan craze that sunk many financial institutions.

Community National requires a down payment on home and car loans. Simmons said this is because those who have an investment in their property are more likely to continue paying for it.

"We're probably a little more conservative than many banks," he said.

And, even though the federal government is planning on opening its recent $250 billion "buy-in" on banks to smaller institutions, don't expect to see the local banks jump on board - at this point.

"The more government gets involved, the more control they have over you," Simmons said. "That makes me a little bit nervous."

Still, Grist isn't envious of federal assistance to larger banks.

"Some of those banks truly are too big to fail without having a catastrophic effect on the general market," he said.

With the price of crude oil dropping from $147 a barrel to under $70, Simmons said caution would be needed for banks in the near future. He advises oilfield workers seeking loans to not expect to pay them off with the large amounts of overtime they have been receiving.

"Make sure that, based on your income, or slightly less income, you can pay the loans back," he said.

And while the bankers seem aware that leaner times may be ahead for the area, they say they will continue being prepared.

"We concentrate on local business," Grist said. "We have a pretty good understanding of the nature of our market."