As of 2002, there were 45 insured banks in Arizona. Total assets of insured banks were $46.8 billion. Arizona has a high percentage of new banking institutions—as of 2002, 11 were less than 3 years old, and 26 were less than 9 years old. Due to the fact that many of the state's banks are young and asset-sensitive, their earnings were weak as of late 2002, due in part to narrower net interest margins (NIMs) (the difference between the lower rates offered to savers and the higher rates charged on loans). The state's median annualized return on average assets (ROA) ratio (the measure of earnings in relation to all resources) compared unfavorably to the national median in 2002.
The banking industry in Arizona is regulated by the Department of Banking. Nationally chartered institutions do not come under the jurisdiction of the Arizona Department of Banking, including Bank of America, Bank One, Wells Fargo Bank, Desert Schools Federal Credit Union, and Arizona Federal Credit Union.