Banks in the Eagle Ford are showing signs of strain due to the downturn in the oil and gas industry.

Related: Eagle Ford Retailers Hang On

According to the Express News, deposits are shrinking for Eagle Ford banks for the first time since 2010. They report that 15 community banks based in the Eagle Ford have lost a combined $111 million in deposits last year, down 3.5% from 2014.

During the height of the boom communities in the Eagle Ford were magnets for new retail, foodservice and hospitality businesses who flocked to the area to get a piece of the financial pie. But since things went bust last year, there are fewer dollars to go around.

Between 2008-2014, deposits in Eagle Ford banks outpaced growth and increased 140% to more than $1.8 billion and contributed to the following:

• Stockmens National Bank (Cotulla) saw a loss of $25.5 million, or 21% of its deposits last year, the largest percentage drop of any bank in the region.
• Karnes County National Bank's deposits surged more than five-fold since the end of 2008 but fell last year by about $6.5 million, or 1.8 percent, to $344.8 million.
• Jourdanton State Bank will be purchased by Seguin's First Commercial Bank before the end of next month.
• Nixon State Bank was purchased by Heritage Bank

Banks make the decision to lend based on total outstanding loans plus the ratio of loans to deposits. The 15 banks operating in the Eagle Ford had an average loan-to-deposit ratio of about 50% compared to 67% for other community banks.

Read more at expressnews.com