An executive with the Federal Reserve says Minnesota's 355 community banks did worse than he expected in the first quarter, the Pioneer Press reports.
Loan growth slowed to less than one percent, but on the bright side there are fewer bad loans on the books.
"The problems that got many banks in trouble are largely gone," Ron Feldman, a senior vice president at the Federal Reserve Bank of Minneapolis, said at a news briefing at the Fed's downtown Minneapolis headquarters.
The Star Tribune notes profits were flat in the first three months of the year compared to a year ago.
"What I hear from bankers is that loan competition, particularly on the commercial side, is exceptionally fierce, Feldman added, according to Minnesota Public Radio. "So, you're going to see competition on price. So, you're going to be able charge a little bit less than maybe you would have been able to several years ago."
Click here, for a break down of Minnesota bank performance in the first-quarter.