December 13, 2010
DFI - Quarterly Report - Third Quarter 2010
Quarterly Report (Excel) Third Quarter 2010
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 National Credit Union Administration.
At the close of the third quarter 2010, the number of state-chartered banks decreased by 14 or 6.7% to 196 from 210 on September 30 one year ago. Assets went from $238.3 billion to $246.0 billion, up $7.7 billion or 3.2% over the same period. Total equity capital was up 18.1%, from $27.2 billion one year ago to $32.1 billion in the third quarter 2010, causing the equity capital to total asset ratio to increase from 11.40% to 12.95%. Loans were up 2.0%, going from $163.9 billion to $167.1 billion, while deposits were up $13.5 billion or 7.6% from $176.0 billion to $189.5 billion. This caused the loan to deposit ratio to decrease to 88.18% from 93.1% one year previous.
For the first nine months of 2010, state-chartered banks reported net income of $428.3 million, as compared to a net loss of $2.0 billion in the third quarter 2009. Loan loss provisions in the same period were down $2.1 billion from $4.2 billion to $2.1 billion, a decrease of 50.6 percent.
The net interest margin was up from 3.16% one year ago to 3.36%. Loan loss reserves in the third quarter 2010 were down $222 million, to $4.0 billion, a decrease of 5.3% while noncurrent loans were down 21.2% from $7.7 billion to $6.1 billion over the same period. This caused reserve coverage of noncurrent loans to increase from 54.86% to 65.93%. Other real estate owned increased 8.0%, going from $1.2 billion to $1.3 billion.
As of September 30, 2010, industrial bank assets were $9.0 billion, up 2.4% from $8.9 billion one year ago. Total equity capital was up 6.2% from $1.3 billion to $1.4 billion. This caused the capital to asset ratio to increase from 15.15% to 15.72%. Loans were down 7.4%, going from $6.4 billion to $5.9 billion, while deposits increased a fraction of a percent to $6.9 billion, which caused the loan to deposit ratio to decline from 92.58% to 85.47 percent.
Industrial banks showed a net profit of $53.1 million for the first nine months of 2010, as compared to a net loss of $84.1 million at third quarter 2009. The net interest margin increased from 4.78% to 5.00% while the provision for loan losses was $123.1 million for the quarter, down 48.3% from $238.3 million in the third quarter 2009. Loan loss reserves were down 9.0% from $269.2 million to $245.0 million over the period, while noncurrent loans increased from $238.9 million to $436.8 million, up $197.9 million or 436.8%. This caused reserve coverage of noncurrent loans to decrease from 112.69% to 56.08%. Other real estate owned increased by 90.4%, going from $18.7 million at the close of the third quarter 2009 to $35.6 million as of September 30, 2010. During the period, the number of industrial banks remained constant at ten.
Assets, at $71.1 billion were down 3.9% from the $74.0 billion reported as of September 30, 2009, while shares went from $62.1 billion to $61.1 billion, down 1.5%. Loans were down 11.1% from September 30 one year ago, going from $48.5 billion to $43.1 billion. At $6.7 billion on September 30, net worth was up 1.0 percent from $6.6 billion a year previous. This caused the net worth to asset ratio to increase to 9.36% from 8.90% one year ago. The allowance for loan losses was $1.3 billion up 3.7 percent, while delinquent loans at $1.1 billion were up a fraction of a percent.
Net margin to average assets increased to 4.38% from 4.35% one year ago, while the provision for loan losses was down 48.7% going from $1.l billion to $566.2 million over the same period. Net income went from a net loss of $365.4 million for the first nine months of 2009 to a net profit of $227.7 million for the same period in 2010. The number of credit unions went from 175 to 164; a decrease of eleven, or 6.3 percent.
Total assets of state chartered offices of foreign banks were up $1.7 billion or 7.1% from $23.7 billion as of September 30, 2009 to $25.4 billion one year later, while loans were down 3.0% from $14.8 billion to $14.3 billion during the same period. Deposits were down 4.5%, from $13.6 billion as of September 30, 2009 to $12.9 billion one year later. The number of foreign banking organizations with state-chartered offices in California decreased by two; going from 33 to 31 during the year.
Total corporate assets of trust companies at the close of the third quarter 2010 were $422.2 million, down $70.0 million or 14.2% from the $492.2 million a year previous. Income from fiduciary activities was up from $294.5 million in September 2009 to $310.2 million at the close of the third quarter 2010, an increase of $15.7 million or 5.3% over the year, while net income went from a net loss of $49.6 million for the first nine months of 2009 to a net loss of $8.3 million for the same period in 2010. The number of trust companies remained stable throughout the year at seven.
Strategic Support Manager
Department of Financial Institutions
45 Fremont Street, Suite #1700
San Francisco, CA 94105 - 2219