December 21, 2009
DFI - Quarterly Report - Third Quarter 2009
Report (Excel) Third Quarter 2009
The Quarterly Report presents summary statistics for banks, industrial banks, credit unions, offices of foreign banks and trust companies with a one-year comparison. The intention of the Quarterly Report is to show at-a-glance significant changes on the balance sheets and reports of income of DFI licensees. We invite readers to review the Financial Statistics page on our website, and the financial data published by the Federal Reserve Bank, Federal Deposit Insurance Corporation and the National Credit Union Administration.
At the close of the third quarter 2009, the number of state-chartered banks decreased by seven to 210 from September 30 one year ago. Assets went from $233.6 billion to $238.3 billion, up $4.7 billion or 2.0% over the same period. Total equity capital increased at a slower rate, up 1.4%, going from $26.8 billion to $27.2 billion at the close of the third quarter, causing the equity capital to total asset ratio to decline from 11.47% to 11.40%. Loans were down 4.1%, going from $170.8 billion to $163.9 billion, while deposits increased 8.2% from $162.7 to $176.0 billion. This caused the loan to deposit ratio to decrease to 93.08% from 104.96% one year previous.
For the third quarter of 2009, state-chartered banks reported $2.0 billion in net losses, off $1.6 billion or 327.4% from the $477.7 million net loss reported in the third quarter 2008. This was due in part to the increase in loan loss provisions, up $2.2 billion from $1.9 billion to $4.2 billion, an increase of 113.8%.
The net interest margin was down from 3.37% one year ago to 3.16%. Loan loss reserves in the third quarter 2009 were up 59.6% to $4.2 billion from $2.7 billion one year ago; however, noncurrent loans went from $3.9 billion to $7.7 billion in the same period, which caused reserve coverage of noncurrent loans to decrease from 67.93% to 54.86%. Other real estate owned increased 186.8%, going from $427.1 million to $1.2 billion.
As of September 30, 2009, industrial bank assets were $8.9 billion, down 17.3% from $10.7 billion one year ago. Total equity capital decreased at a slower rate, down 10.2% from $1.5 billion to $1.3 billion. This caused the capital to asset ratio to increase from 13.95% to 15.15%. Loans were down 20.0%, going from $8.0 billion to $6.4 billion, while deposits declined 19.1%, going from $8.5 billion to $6.9 billion which caused the loan to deposit ratio to decline marginally from 93.59 to 92.58 percent.
Industrial banks showed a net loss of $84.1 million for the first nine months of the year, as compared to a net profit of $9.5 million for the first nine months of 2008. The net interest margin increased from 3.34% to 4.78% while the provision for loan losses increased from $120.0 million to $238.3 million, up $118.3 million or 98.6 %. Loan loss reserves were up 49.5% from $180.0 million to $269.2 million over the period, while noncurrent loans increased from $194.9 million to $238.9 million, up $43.9 million or 22.5%. This caused reserve coverage of noncurrent loans to increase from 92.35% to 112.69%. Other real estate owned increased by 213.3%, going from $6.0 million at the close of the third quarter 2008 to $18.7 million for the same period in 2009. During the period, the number of industrial banks decreased by two, from twelve to ten.
Assets, at $74.0 billion were up 1.8% from the $72.7 billion reported as of September 30, 2008, while shares went from $60.5 billion to $62.1 billion, up 2.5%. Loans were down 7.2% from September 30 one year ago, going from $52.3 billion to $48.5 billion. Net worth decreased 13.3%, going from $7.6 billion to $6.6 billion. This caused the net worth to asset ratio to decrease to 8.90% from 10.45% one year ago. The allowance for loan losses was up 108.5%, going from $602.8 million to $1.3 billion.
Net margin to average assets increased to 4.35% from 4.20% one year ago, while the provision for loan losses was up by 75.9% going from $627.4 million to $1.1 billion over the same period. Net income went from a profit of $32.7 million in the third quarter 2008 to a net loss of $365.4 million, off $398.1 million. Delinquent loans increased 68.3%, going from $672.7 million to $1.1 billion. The number of credit unions went from 189 to 175; a decrease of fourteen, or 7.4 percent.
Total assets of state chartered offices of foreign banks were down $1.3 billion or 5.1% from $25.0 billion at the close of the third quarter 2008 to $23.7 billion one year later, while loans were down 18.5% from $18.1 billion to $14.8 billion during the same period. Deposits were up 15.1%, from $11.8 billion as of September 30, 2008 to $13.6 billion one year later. The number of foreign banking organizations with state-chartered offices in California decreased by two, going from 35 to 33 during the year.
Trust Companies and Departments
Total corporate assets of trust companies at the close of the third quarter 2009 were $492.2 million, down $94.4 million or 16.1% from the $586.6 million a year previous. Income from fiduciary activities was down 33.5% over the year, while net income was down $46.3 million from $3.3 million in the third quarter 2008 to a net loss of $49.6 million for the same period in 2009. Total fiduciary assets at state-chartered banks and trust companies decreased 12.86% from $133.3 billion to $116.2 billion. The number of state-chartered banks with trust powers remained at 18 during the period.