First Quarter 2012
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.
As of March 31, 2012, the number of state-chartered banks decreased by 12 or 6.4% to 176 from 188 on March 31 one year ago. Assets went from $249.9 billion to $266.6 billion, up $16.8 billion or 6.7% over the same period. Total equity capital was up 8.1%, from $32.6 billion to $35.2 billion in the first quarter of 2012, causing the equity capital to total asset ratio to increase from 13.04% to 13.20 percent. Loans were up 4.5%, going from $166.0 billion to $173.5 billion, while deposits were up $13.7 billion or 7.0%, going from $196.6 billion to $210.3 billion. This caused the loan to deposit ratio to decrease to 82.50% from 84.41% one year previous.
As of March 31, state-chartered banks reported net income of $686.8 million, up $189.0 million from $497.8 million for the first quarter of 2011. Loan loss provisions in the same period were down $159.7 million from $309.2 million to $149.5 million, a decrease of 51.7 percent.
The net interest margin was down from 3.68% one year ago to 3.59 percent. Loan loss reserves as of March 31, 2012 were $3.3 billion, down $535 million or 13.9% from $3.9 billion a year ago while noncurrent loans were down 31.2% from $5.6 billion to $3.9 billion over the same period. This caused reserve coverage of noncurrent loans to increase from 68.94% to 86.30 percent. Other real estate owned decreased 16.7%, going from $1.3 billion to $1.1 billion.
As of March 31, 2012 there were eight industrial banks, down from ten on March 31 one year ago. Total assets were $8.8 billion, down 3.0% from $9.1 billion over the same period. Total equity capital was down 14.1% from $1.5 billion to $1.3 billion. This caused the equity capital to asset ratio to decrease from 16.35% to 14.46 percent. Loans were up 8.0%, to $6.5 billion, while deposits were down 2.1% to $6.7 billion, which caused the loan to deposit ratio to increase from 88.10% to 97.16 percent.
Industrial banks showed a net profit of $37.2 million in for the first quarter of 2012, down $8.7 million or 19.0% from $45.9 million in the first quarter of 2011. The net interest margin was 4.93% down from 5.04% a year previous, while the provision for loan losses was $4.7 million, up from $0.5 million at the close of the first quarter of 2011. Loan loss reserves were down 35.6% from $216.8 million to $139.6 million over the period, while noncurrent loans decreased from $266.7 million to $162.9 million, down $103.8 million or 38.9 percent. This caused reserve coverage of noncurrent loans to increase from 81.31% to 85.72 percent. Other real estate owned decreased by 37.9%, going from $54.1 million as of March 31, 2011 to $33.6 million a year later.
Assets at March 31, 2012 were $76.1 billion up $3.0 billion or 4.1% from $73.1 billion one year ago, while shares, at $65.7 billion as of March 31, 2012 were up 5.1% from $62.5 billion. Loans were down 3.3% over the same period, going from $41.5 billion to $40.1 billion. At $7.4 billion on March 31, net worth was up 7.2% from $6.9 billion a year previous. This caused the net worth to asset ratio to increase to 9.75% from 9.46% one year ago. The allowance for loan losses was $1.1 billion, down 12.6% from $1.3 billion one year ago, while delinquent loans at $778.7 million were down 17.1% from $938.8 billion at the end of the first quarter in 2011. Delinquent loans as a percentage of total loans were 1.94% as of March 31, 2012 as compared to 2.26% one year ago. Other real estate owned was down $1.6 million or 1.1% from $155.0 million to $153.4 million.
Net margin to average assets at 4.05% was down from 4.20% one year ago, while the provision for loan losses was down 23.5% going from $96.1 million to $73.6 million over the same period. Net income was up 4.4% from $157.3 million for the first quarter 2011 to $164.2 million for the first quarter 2012. The number of credit unions went from 160 to 157; a decrease of three, or 1.9 percent.
Total assets of state chartered offices of foreign banks were down $516.2 million or 1.8% from $27.9 billion as of March 31, 2011 to $27.5 billion one year later, while loans were up 23.3% from $17.3 billion to $21.4 billion over the same period. Deposits were down 30.6%, from $12.2 billion as of March 31, 2011 to $8.5 billion one year later. The number of foreign banking organizations with state-chartered offices in California remained constant at 31 during the year.
Total corporate assets of trust companies at March 31, 2012 were $404.4 million, down $73.2 million or 15.3% from the $477.7 million a year previous. Income from fiduciary activities at the close of the first quarter was down $13.1 million or 13.1% to $86.1 million from $99.1 million a year previous, while net income went from a net loss of $551 thousand to a net loss of $9.2 million. The number of trust companies increased by one during the year, going from seven to eight.