Which Oregon bank still has the most bad loans?

Which Oregon bank still has the most bad loans?

Oregon banks are quickly purging the final sour loans that resulted from the 2008 economic collapse.

For this week's print edition of the Portland Business Journal, I looked at the remaining bad loans on the books of Oregon's 28 banks.

The story was inspired by the work of American City Business Journals colleague Greg Lamm of the Puget Sound Business Journal, who this week posted a similar story about bad loans on the books of Washington banks.

Bad loans: See which Oregon bank has the most

Roughly 2.2 percent of the $13.5 billion in loans held by Oregon banks are nonperforming, meaning borrowers haven't made a payment in 90 days or more. That's down from nearly 4 percent a year ago, according to Federal Deposit Insurance Corp. data.

Bank analyst Jim Bradshaw said the percentage of bad loans dropped for a simple reason: Banks have finally realized that if a borrower hasn't paid by now, it's not likely to happen.

Most importantly, the final purge of bad debt means the balance sheets of Oregon banks should be strong enough by the end of the year to support increased lending, a necessary trigger to restoring stability to the state’s stagnant economy.

Here's a slideshow with quick information about each Oregon bank's nonperforming loan portfolio. The data is pulled from financial statements filed at the end of 2012 with the Federal Financial Institutions Examination Council.

Read Friday's Business Journal for more. The Portland Business Journal is a KATU.com news partner.