March 15, 2010
DFI - Quarterly Report - Fouth Quarter 2009
Quarterly Report (Excel) Fourth 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 National Credit Union Administration.
At the close of the fourth quarter 2009, the number of state-chartered banks decreased by ten to 208 from December 31 one year ago. Assets went from $242.5 billion to $227.6 billion, down $15.0 billion or 6.2% over the same period. Total equity capital decreased at a slower rate, down 3.0%, going from $28.1 billion to $27.2 billion at the close of the fourth quarter, causing the equity capital to total asset ratio to increase from 11.58% to 11.97%. Loans were down 8.6%, going from $171.7 billion to $157.0 billion, while deposits increased 3.6% from $167.1 to $173.2 billion. This caused the loan to deposit ratio to decrease to 90.64% from 102.75% a year previous.
For the fourth quarter of 2009, state-chartered banks reported $1.0 billion in net losses, off $131.4 million or 14.5% from the $906.7 million net loss reported in the fourth quarter 2008. Loan loss provisions were up $1.7 billion from $3.2 billion to $4.8 billion, an increase of 53.2%.
The net interest margin was down from 3.23% one year ago to 3.21%. Loan loss reserves in the fourth quarter 2009 were up 31.0% to $4.0 billion from $3.1 billion one year ago; however, noncurrent loans went from $4.6 billion to $7.3 billion in the same period, which caused reserve coverage of noncurrent loans to decrease from 66.61% to 55.37%. Other real estate owned increased 87.5%, going from $625.0 million to $1.2 billion.
As of December 31, 2009, industrial bank assets were $9.0 billion, down 18.3% from $11.0 billion one year ago. Total equity capital decreased at a slower rate, down 10.9% from $1.5 billion to $1.3 billion. This caused the capital to asset ratio to increase from 13.59% to 14.83%. Loans were down 23.6%, going from $8.0 billion to $6.1 billion, while deposits declined 19.5%, going from $8.7 billion to $6.9 billion, which caused the loan to deposit ratio to decline from 92.59 to 87.80 percent.
Industrial banks showed a net loss of $97.3 million for the 2009, as compared to a net profit of $2.9 million in 2008. The net interest margin increased from 3.50% to 4.87% while the provision for loan losses increased from $190.9 million to $307.2 million, up $116.9 million or 60.9 %. Loan loss reserves were up 31.1% from $215.7 million to $282.8 million over the period, while noncurrent loans increased from $104.6 million to $266.6 million, up $43.9 million or 154.9%. This caused reserve coverage of noncurrent loans to decrease from 206.20% to 106.07%. Other real estate owned increased by 328.9%, going from $6.0 million at the close of the fourth quarter 2008 to $24.3 million in 2009. During the period, the number of industrial banks decreased by two, from twelve to ten.
Assets, at $73.5 billion were up 1.2% from the $72.6 billion reported as of December 31, 2008, while shares went from $60.5 billion to $61.6 billion, up 1.7%. Loans were down 9.1% from December 31 one year ago, going from $52.0 billion to $47.0 billion. Net worth decreased 12.7%, going from $7.4 billion to $6.5 billion. This caused the net worth to asset ratio to decrease to 8.83% from 10.23% one year ago. The allowance for loan losses was up 65.1%, going from $821.3 million to $1.4 billion, while delinquent loans increased 52.1%, going from $887.2 million to $1.2 billion.
Net margin to average assets increased to 4.39% from 4.22% one year ago, while the provision for loan losses was up by 34.2% going from $1.1 billion to $1.4 billion over the same period. Net income went from a net loss of $197.0 million in 2008 to a net loss of $365.4 million in 2009, off $200.7 million. The number of credit unions went from 189 to 175; a decrease of 17, or 9.1 percent.
Total assets of state chartered offices of foreign banks were down $2.4 billion or 9.4% from $25.5 billion at yearend 2008 to $23.1 billion a year later, while loans were down 25.1% from $19.3 billion to $14.5 billion during the same period. Deposits were up 21.7%, from $10.6 billion as of December 31, 2008 to $12.9 billion one year later. The number of foreign banking organizations with state-chartered offices in California decreased by three, going from 35 to 32 during the year.
Total corporate assets of trust companies at the close of the fourth quarter 2009 were $505.7 million, down $82.2 million or 14.0% from the $587.9 million a year previous. Income from fiduciary activities was down 25.7% over the year, while net income was down $31.4 million from a net loss of $21.6 million for 2008 to a net loss of $53.0 million for 2009. The number of trust companies remained stable throughout the year at seven.