California DBO Important Notices Logo Banner

DBO - Quartely Report -1th Quarter 2014

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.

Starting with the Second Quarter 2013, in order to provide for more in-depth analysis, the Quarterly Report will now feature comparisons with the prior quarter in addition to comparisons with the same quarter one year ago. 

=============

Commercial Banks

As of March 31, 2014, the number of state-chartered banks decreased by 14 or 8.2% to 156 from 170 on March 31 one year ago.  It was a decrease of four or 2.5% from December 31.  Assets as of March 31, 2014 were 314.6 billion, up $33.0 billion or 11.7% from the $281.6 billion reported in the first quarter of 2013, and up $12.1 billion or 4.0% from the prior quarter. Total equity capital was $39.1 billion up 5.2% from $37.2 billion one year ago and up 2.8% from the prior quarter.  This caused the equity capital to total asset ratio to decrease to 12.43 percent from 13.21% one year ago and from 12.58% in the prior quarter. 
Loans were $210.5 billion, up $23.2 billion or 12.4% from $187.3 billion a year ago and up 2.5% from the $205.4 billion on December 31. Deposits were $253.2 billion, up $27.2 billion or 12.0% from March 31 one year ago and up 4.8% or $11.6 billion from last quarter. This caused the loan to deposit ratio to increase to 83.14% from 82.87% one year previous and to decrease from 85.03% in the previous quarter.

Quarterly earnings for state-chartered banks in the first quarter were $715.9 million, down $52.6 million or 6.8% from the $768.5 million earned in the first quarter of 2013 and down 10.2% or $80.9 million from the $796.8 million earned in the fourth quarter of 2013.  Loan loss provisions made in the first quarter of 2014 were $23.0 million, down $39.6 million or 63.3% for the first quarter of 2013.

The net interest margin for 2013 was 3.25% down from 3.40% one year ago and from 3.24% in June. Loan loss reserves as of March 31, 2014 were $2.9 billion, down $181.3 million or 5.9% from the $3.1 million as of March 31, 2013 and down $66.3 million or about 2.2% from the prior quarter. 

Noncurrent loans were down $573.3 million or 19.8% from $2.9 billion to $2.3 billion over the year, and down $151.0 million or 6.1% from last quarter. This caused reserve coverage of noncurrent loans to increase to 124.7% from 106.21% in the first quarter of 2013 and from 119.67% in the prior quarter.  Other real estate owned went from $667.5 million as of March 31, 2013 to $500.5 million a year later, a change of $167.0 million or 25.0% from one year ago and a change of $13.4 million or 2.6% from the $513.9 million in OREO reported as of December 31, 2013.

=============

Industrial Banks

As of March 31, 2014 there were six industrial banks, down from seven one year previous and no change from the prior quarter.  Total assets were $8.9 billion, up 1.6% from the $8.8 billion reported one year ago and up 2.2% from the $8.7 billion reported in the prior quarter. At $1.4 billion, total equity capital was up 2.7% from March 31, 2013 and up 2.6% from last quarter. This caused the equity capital to asset ratio, at 15.94% to increase from 15.77% in the prior year and from 15.87% in the prior quarter. Loans, at $7.5 billion, were up 9.7% over the year and up 3.6% from last quarter. Deposits were $6.7 billion, up 1.2% from $6.6 billion in March 2013 and up 1.2% from the prior quarter. This caused the loan to deposit ratio to increase to 111.93% from 103.32% in the prior year and up from 109.37% in the prior quarter.

Industrial banks reported net income of $39.0 million in the first quarter of 2014, down 0.9% from $39.4 million in the first quarter 2013 and down $1.7 million or 4.1% from the $40.6 million earned in the fourth quarter of 2013.  Loan loss reserves were $124.1 million, down $8.33 million or 6.3% from the first quarter 2013 and down $2.8 million or 2.2% from the prior quarter.

Loan loss provisions made in the first quarter of 2014 were $5.0 million, up $0.9 million or 22.7% from the $4.1 million provision for the same quarter of 2013 and down $0.1 million or 1.0% from the $5.1 million in the prior quarter.
Noncurrent loans were $81.1 million, down $37.8 million or 31.8% from $118.9 million at March 31, 2013 and up $19.5 million or 31.6% from last quarter. This caused reserve coverage of noncurrent loans to increase to 152.94% from 111.32% in March 2013 and to decrease from 205.76% in December.  Other real estate owned went from $20.1 million as of March 31, 2013 to $7.4 million a year later, a change of $12.7 million or 63.3% from one year ago and a change of $0.8 million or 9.9% from the $8.2 million in OREO reported at the end of last year.

Credit Unions

Total assets at March 31, 2014 were $82.2 billion, up $2.7 billion or 3.3% from $79.3 billion one year ago, and up 3.7% from the $79.6 billion reported in the previous quarter. Shares, at $70.7 billion were up by 3.3% from the $68.3 billion one year ago and were up 3.5% from the prior quarter. Loans were up 9.7% over the year, going from $40.0 billion to $43.9 billion and up $1.0 billion or 2.3% from the prior quarter. Net worth, at $9.0 billion was up 9.3% from $8.1 billion one year ago and up 2.4% from the $8.7 billion reported in the third quarter. This caused the net worth to asset ratio to increase to 10.89% from 10.33% one year ago and to decrease from 10.99% in the previous quarter. The allowance for loan losses was down 25.1% from $816.7 million one year ago to $611.6 million and down 6.3% from $652.6 million in the third quarter.

Delinquent loans, at $329.1 million were down $102.3 million or 23.7% from $431.4 million one year ago and were down $76.8 million or 18.9% from $405.9 million in the previous quarter.  Delinquent loans as a percentage of total loans were 0.75% as of March 31, 2014 as compared to 1.08% one year ago and 0.95% in the last quarter.  Other real estate owned was $57.9 million as of March 31, 2014; down $35.1 million or 37.7% from $93.0 million a year previous and up $8.9 million or 18.2% from the $49.0 million reported in the last quarter.

Net margin to average assets at 3.61% was down from 4.01% last year at this time and down from 3.74% last quarter, while the provision for loan losses was down 167.4%, going from a negative $3.5 million as of March 31, 2013 to a negative $9.2 million over the year.  Net income was down 9.9% from $215.9 million in the first quarter 2013 to $194.6 million in the first quarter 2014. Net income was up $34.8 million or 21.8% from income in the fourth quarter 2013.

The number of credit unions at the close of the first quarter went from 151 last year to 145; a decrease of six, or 4.0 percent from the prior year.  There was no change from the prior quarter.

Foreign Banks

Total assets of state chartered offices of foreign banks at the close of the first quarter of 2014 were $30.0 billion, down $117.3 million or 4.9% from $31.3 billion one year ago, and down 2.8% from the $30.4 billion in the previous quarter.  Loans, at $25.0 billion were up 5.2% from $23.7 billion one year ago and down a fraction of a percent from the previous quarter. Deposits were $12.3 billion; up 13.8% over the year from $10.9 billion and up 2.6% over the quarter from $12.0 billion.  The number of foreign banking organizations with state-chartered offices in California remained constant at 31 during the year. 

=============

Trust Companies

Total corporate assets of trust companies at March 31, 2014 were $334.5 million, down $30.5 million or 8.4% from the $365.0 million a year previous and down $7.9 million or 2.3% from the $342.4 million in the prior quarter. Income from fiduciary activities in the first quarter of 2014 was $94.3 million, up $2.1 million or 2.3% from $92.2 million in the same period of 2013 and up a fraction of a percent from the $93.9 million reported in the fourth quarter 2013.

Net income for the first quarter of 2013 was a loss of $10.8 million as compared to the net loss of $6.0 million in the same period of 2013.  The number of trust companies remained constant at eight during the period.

For more information contact Patrick Carroll (415 263-8559; email: patrick.carroll@dbo.ca.gov