Important Notices

 

DFI Safety & Soundness SealCalifornia Department of Financial Institutions

 

Quarterly Report

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Fourth Quarter 2012

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.
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Commercial Banks

As of December 31, 2012, the number of state-chartered banks decreased by 6 or 3.4% to 171 from 177 on December 31 one year ago.  Assets went from $263.0 billion to $281.7 billion, up $18.7 billion or 7.1% over the same period. Total equity capital was up 6.4%, from $34.7 billion to $36.9 billion at yearend 2012, causing the equity capital to total asset ratio to decrease from 13.21% to 13.12 percent. Loans were up 8.2%, going from $172.9 billion to $186.9 billion, while deposits were up $18.7 billion or 9.0%, going from $207.0 billion to $225.7 billion. This caused the loan to deposit ratio to decrease to 82.83% from 83.49% one year previous.
As of yearend, state-chartered banks reported net income of $3.0 billion, up $680.3 million from $2.3 billion in 2011.  Loan loss provisions in the same period were down $468.6 million, from $1.0 billion to $554.1 million, a decrease of 45.8 percent.
The net interest margin was down from 3.53% one year ago to 3.45 percent. Loan loss reserves as of December 31, 2012 were $3.1 billion, down $255 million or 7.6% from $3.4 billion a year ago while noncurrent loans were down 25.8% from $4.0 billion to $3.0 billion over the same period. This caused reserve coverage of noncurrent loans to increase from 83.36% to 103.79 percent. Other real estate owned decreased 36.1%, going from $1.1 billion to $715.8 million.
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Industrial Banks

As of December 31, 2012 there were eight industrial banks, down from nine at yearend 2011.  Total assets were $8.7 billion, 1% from $8.6 billion. At $1.3 billion, total equity capital was up 1 percent. This caused the equity capital to asset ratio to increase from 15.49% to 15.56 percent. Loans were up 4.6%, to $6.7 billion, while deposits were up 1% from$6.4 billion to $6.5 billion, which caused the loan to deposit ratio to increase from 98.71% to 102.57 percent.
Industrial banks showed a net profit of $142.2 million for 2012, down $9.9 million or 6.5% from $152.1 million in 2011. The net interest margin was 4.91% down from 5.07% a year previous, while the provision for loan losses was $25.4 million, up from $1.2 million at yearend 2011.  Loan loss reserves were down 3.9% from $138.5 million to $133.1 million over the period, while noncurrent loans decreased from $204.7 million to $125.1 million, down $79.6 million or 38.9 percent. This caused reserve coverage of noncurrent loans to increase from 67.65% to 106.40 percent. Other real estate owned decreased by 34.3%, going from $25.5 million as of yearend 2011 to $16.8 million a year later.
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Credit Unions

Total assets at December 31, 2012 were $76.7 billion up $3.6 billion or 4.9% from $73.1 billion one year ago. Shares were up by the same percentage, going from $62.9 billion on December 31, 2011 to $66.0 billion one year later. Loans were down 1% over the same period, going from $40.5 billion to $40.2 billion. Net worth was up 9.8% from $7.3 billion a year previous to $8.0 billion on December 31, 2012. This caused the net worth to asset ratio to increase to 10.41% from 9.95% one year ago. The allowance for loan losses was down 22.3% from $1.1 billion one year ago to $888.0 million, while delinquent loans at $527.6 million were down 42.7% from $920.7 million at the end of in 2011.  Delinquent loans as a percentage of total loans were 1.31% as of December 31, 2012 as compared to 2.27% one year ago.  Other real estate owned was down $59.2 million or 38.9% from $152.3 million to $93.1 million.
Net margin to average assets at 4.01% was down from 4.18% one year ago, while the provision for loan losses was down 58.7%, going from $419.6 million to $173.4 million over the same period. Net income was up 46.0% from $510.6 million in 2011 to $745.5 million in 2012.  The number of credit unions went from 158 to 153; a decrease of five, or 3.2 percent.
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Foreign Banks

Total assets of state chartered offices of foreign banks at yearend 2012 were $27.8 billion, up $2.9 billion or 11.6% from $24.9 billion one year ago, while loans were up 7.2% from $21.1 billion to $22.6 billion over the same period. Deposits were up 24.2%, from $8.9 billion as of December 31, 2011 to $11.1 billion one year later.  The number of foreign banking organizations with state-chartered offices in California remained constant at 31 during the year.
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Trust Companies

Total corporate assets of trust companies at December 31, 2012 were $365.0 million, down $33.8 million or 8.5% from the $398.9 million a year previous. Income from fiduciary activities was down $19.8 million or 5.4% to $344.7 million in 2012 from $364.4 million for 2011, while net income went from a net loss of $21.3 million to a net loss of $41.6 million. The number of trust companies remained constant at eight during the period.