Important Notices

March 08, 2011

DFI - Quarterly Report - Fourth Quarter 2010

Quarterly Report (Excel) Fourth Quarter 2010


Introduction

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.


Commercial Banks

At yearend 2010, the number of state-chartered banks decreased by 16 or 7.7% to 191 from 207 on December 31 one year ago.   Assets went from $227.6 billion to $245.9 billion, up $18.3 billion or 8.0% over the same period. Total equity capital was up 18.0%, from $27.2 billion to $32.1 billion in the fourth quarter 2010, causing the equity capital to total asset ratio to increase from 11.97% to 13.07%. Loans were up 6.5%, going from $157.0 billion to $167.2 billion, while deposits were up $18.7 billion or 10.8% from $173.2 billion to $191.9 billion. This caused the loan to deposit ratio to decrease to 87.13% from 90.64% one year previous.

For 2010, state-chartered banks reported net income of $735.1 million, as compared to a net loss of $1.0 billion in 2009.  Loan loss provisions in the same period were down $2.2 billion from $4.8 billion to $2.6 billion, a decrease of 46.1 percent.

The net interest margin was up from 3.21% one year ago to 3.45%. Loan loss reserves at yearend 2010 were down $129.3 million, to $3.9 billion, a decrease of 3.2% while noncurrent loans were down 23.9% from $7.3 billion to $5.5 billion over the same period. This caused reserve coverage of noncurrent loans to increase from 55.37% to 70.44%. Other real estate owned increased 8.1%, going from $1.2 billion to $1.3 billion.


Industrial Banks

As of December 31, 2010, industrial bank assets were $9.2 billion, up 2.9% from $9.0 billion one year ago. Total equity capital was up 8.6% from $1.3 billion to $1.4 billion. This caused the capital to asset ratio to increase from 14.83% to 15.64%. Loans were down 2.9%, going from $6.1 billion to $5.9 billion, while deposits were down 1.4 % to $6.9 billion, which caused the loan to deposit ratio to decline from 87.80% to 86.47 percent.

Industrial banks showed a net profit of $79.9 million for 2010, as compared to a net loss of $97.3 million at yearend 2009. The net interest margin increased from 4.87% to 4.93% while the provision for loan losses was $129.7 million, down 57.8% from $307.2 million in 2009. Loan loss reserves were down 22.8% from $282.8 million to $218.4 million over the period, while noncurrent loans increased from $266.6 million to $348.3 million, up $81.6 million or 30.6%. This caused reserve coverage of noncurrent loans to decrease from 106.07% to 62.71%. Other real estate owned increased by 188.8%, going from $24.3 million at yearend 2009 to $70.2 million as of December 31, 2010. During the period, the number of industrial banks remained constant at ten.


 Credit Unions

Assets, at $71.9 billion, were down 2.2% from the $73.5 billion reported as of December 31, 2009, while shares, at $61.4 billion, were down a fraction of a percent. Loans were down 9.5% from December 31 one year ago, going from $47.0 billion to $42.5 billion. At $6.8 billion on December 31, net worth was up 4.4% from $6.5 billion a year previous. This caused the net worth to asset ratio to increase to 9.43% from 8.83% one year ago. The allowance for loan losses was $1.3 billion, down 2.5 percent, while delinquent loans at $1.1 billion were down 11.0% from $1.2 billion at yearend 2009.  Other real estate owned was up 36.1% from $97.6 million to $132.8 million.

Net margin to average assets at 4.39 was essentially unchanged from one year ago, while the provision for loan losses was down 46.7% going from $1.4 billion to $765.0 million over the same period. Net income went from a loss of $397.7 million for 2009 to a profit of $335.4 million for the same period in 2010.  The number of credit unions went from 170 to 162; a decrease of eight, or 4.7 percent.


Foreign Banks

Total assets of state chartered offices of foreign banks were up $2.4 billion or 10.4% from $23.0 billion as of December 31, 2009 to $25.5 billion one year later, while loans were up 7.3% from $14.5 billion to $15.6 billion over the same period. Deposits were down 4.6%, from $12.9 billion as of December 31, 2009 to $12.3 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.


Trust Companies

Total corporate assets of trust companies at yearend 2010 were $428.2 million, down $77.5 million or 15.3% from the $505.7 million a year previous. Income from fiduciary activities was up from $401.8 million in at yearend 2009 to $408.0 million one year later, an increase of $6.1 million or 1.5% over the year, while net income went from a net loss of $53.0 million for 2009 to a net loss of $9.3 million for 2010. The number of trust companies remained stable throughout the year at seven.