September 03, 2009
DFI - Quarterly Report - Second Quarter 2009
Report (Excel) Second Quarter 2009
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 the National Credit Union Administration.
At the close of the second quarter 2009, the number of state-chartered banks decreased by one to 215 from June 30 one year ago. Assets went from $230.5 billion to $238.6 billion, up $8.1 billion or 3.5% over the same period, while loans were up a fraction of a percent, going from $167.8 billion to $168.1 billion. Total equity capital was up 3.3%, going from $26.9 billion to $27.8 billion at the close of the second quarter, causing the equity capital to total asset ratio to decline marginally from 11.69% to 11.66%. Deposit growth outstripped loan growth, increasing 9.6% from $158.7 to $173.9 billion, which caused the loan to deposit ratio to decrease to 96.65% from 105.72% one year previous.
For the second half of 2009, state-chartered banks reported $990.2 million in net losses, off $583.5 million or 143.5% from the $406.7 million loss reported in the second quarter 2008. This was due in part to the increase in loan loss provisions, up from $1.2 billion to $3.0 billion, an increase of 154.1%.
The net interest margin was down from 3.38% one year ago to 3.13%. Loan loss reserves in the second quarter 2009 were up 57.8% to $3.9 billion from $2.5 billion one year ago; however, noncurrent loans more than doubled, going from $3.3 billion to $7.0 billion in the same period, which caused reserve coverage of noncurrent loans to decrease from 75.6% to 56.68%. Other real estate owned increased 314.0%, going from $255.3 million to $1.1 billion.
As of June 30, 2009, industrial bank assets were $9.3 billion, down 9.3% from $10.3 billion one year ago, while deposits declined 16.7%, going from $8.7 billion to $7.3 billion. Total equity capital was up by 80.6%, going from $749.8 million to $1.4 billion, causing the capital to asset ratio to increase from 7.30% to 14.54%. Loans were up 6.3%, going from $6.2 billion to $6.6 billion which caused the loan to deposit ratio to increase from 71.24% to 90.91%.
Industrial banks showed a net loss of $69.2 million for the first half of the year, as compared to a net loss of $204.7 million for the first half of 2008. The net interest margin increased from 3.03% to 4.40% while the provision for loan losses increased from $82.6 million to $158.2 million over the year; up $75.5 million or 91.4 %. Loan loss reserves were up 26.1% from $187.6 million to $236.6 million over the period, while noncurrent loans decreased from $420.7 million to $142.3 million, down $278.4 million or 66.2%. This caused reserve coverage of noncurrent loans to increase from 44.59% to 166.20%. Other real estate owned decreased by 40.9%, going from $16.1 million at the close of the second quarter 2008 to $9.5 million for the same period in 2009. During the period, the number of industrial banks decreased by three, form 13 to ten.
Assets, at $74.9 billion were up 2.2% from the $73.3 billion reported as of June 30, 2008, while shares went from $61.6 billion to $63.0 billion, also up 2.2%. Loans were down 4.2% from June 30 one year ago, going from $51.8 billion to $49.7 billion. Net worth decreased 10.7%, going from $7.4 billion to $6.6 billion. This caused the net worth to asset ratio to decrease to 8.84% from 10.12% one year ago. The allowance for loan losses was up 124.9%, going from $519.0 million to $1.2 billion.
Net margin to average assets increased to 4.02% from 3.51% one year ago, while the provision for loan losses was up by 121.8% going from $349.6 million to $775.4 million over the same period. Net income went from a loss of $132.9 million in the second quarter 2008 to a net loss of $348.5 million, off $215.6 million. Delinquent loans doubled, going from $531.2 million to $1.1 billion. The number of credit unions went from 193 to 181; a decrease of eleven, or 6.2 percent.
Total assets of state chartered offices of foreign banks were up $1.4 billion or 6.0% from $23.0 billion at the close of the second quarter 2008 to $24.4 billion one year later, while loans were up a fraction of a percent from $17.1 billion to $17.2 billion during the same period. Deposits were down a fraction of a percent, from $11.6 billion as of June 30, 2008 to $11.4 billion one year later. The number of foreign banking organizations with state-chartered offices in California decreased by two, going from 36 to 34 during the year.
Trust Companies and Departments
Total corporate assets of trust companies at the close of the second quarter 2009 were $459.8 million, down $161.2 million or 26.0% from the $621.0 million a year previous. Income from fiduciary activities was down 40.8% over the year while net income was down $47.2 million from $3.7 million in the second quarter 2008 to a net loss of $43.5 million for the same period in 2009. Total fiduciary assets at state-chartered banks and trust companies decreased 55.4% from $235.8 billion to $105.0 billion. The number of state-chartered banks with trust powers decreased by one, going from 19 to 18 during the period.