June 08, 2010
DFI - Quarterly Report - first Quarter 2010
Quarterly Report (Excel) First Quarter 2010
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 System, Federal Deposit Insurance Corporation and National Credit Union Administration.
At the close of the first quarter 2010, the number of state-chartered banks decreased by 16 to 202 from March 31 one year ago. Assets went from $243.6 billion to $227.2 billion, down $16.3 billion or 6.7% over the same period. Total equity capital was up 1.1%, from $28.5 billion one year ago to $28.8 billion at the close of the first quarter 2010, causing the equity capital to total asset ratio to increase from 11.70% to 12.68%. Loans were down 11.1%, going from $170.2 billion to $151.4 billion, while deposits increased 0.8% from $172.5 to $173.9 billion. This caused the loan to deposit ratio to decrease to 87.05% from 98.65% one year previous.
For the first quarter 2010, state-chartered banks reported net income of $36.6 million, as compared to a net loss of $175.1 million in the first quarter 2009. Loan loss provisions in the same period were down $303.4 million from $1.1 billion to $839.7 million, a decrease of 26.5%.
The net interest margin was up from 3.05% one year ago to 3.54%. Loan loss reserves in the first quarter 2010 were up $538.1 million, from $3.5 billion one year ago to $4.1 billion, an increase of 15.3%, outpacing the 9.2% increase in noncurrent loans from $6.0 billion to $6.6 billion over the same period. This caused reserve coverage of noncurrent loans to increase from 58.16% to 61.38%. Other real estate owned increased 44.9%, going from $843.0 million to $1.2 billion.
As of March 31, 2010, industrial bank assets were $8.9 billion, down 7.1% from $9.6 billion one year ago. Total equity capital decreased at a slower rate, down 5.4% from $1.4 billion to $1.3 billion. This caused the capital to asset ratio to increase from 14.57% to 14.83%. Loans were down 15.2%, going from $7.0 billion to $5.9 billion, while deposits declined 8.5%, going from $7.6 billion to $7.0 billion, which caused the loan to deposit ratio to decline from 91.44% to 84.76 percent.
Industrial banks showed a net loss of $33.4 million for the quarter, as compared to a net loss of $1.5 million in the first quarter 2009. The net interest margin increased from 4.27% to 5.13% while the provision for loan losses was $96.8 million for the quarter, as compared to $44.3 million for the first quarter 2009. Loan loss reserves were up 59.7% from $217.8 million to $347.8 million over the period, while noncurrent loans increased from $68.5 million to $403.9 million, up $335.4 million or 489.8%. This caused reserve coverage of noncurrent loans to decrease from 318.1% to 86.1%. Other real estate owned increased by 240.8%, going from $7.1 million at the close of the first quarter 2009 to $24.4 million as of March 31, 2010. During the period, the number of industrial banks remained constant at ten.
Assets, at $73.2 billion were down 3.8% from the $76.1 billion reported as of March 31, 2009, while shares went from $63.7 billion to $62.6 billion, down 1.7%. Loans were down 10.7% from March 31 one year ago, going from $51.0 billion to $45.6 billion. Net worth increased 1.3%, going from $6.4 billion to $6.5 billion. This caused the net worth to asset ratio to increase to 8.91% from 8.47% one year ago. The allowance for loan losses for the quarter was up 34.8%, going from $1.0 billion to $1.4 billion, while delinquent loans increased 27.9%, going from $946.9 million to $1.2 billion.
Net margin to average assets increased to 4.37% from 4.22% one year ago, while the provision for loan losses was down 36.3% going from $385.5 billion to $245.5 billion over the same period. Credit unions in the first quarter of 2010 reported a net profit of $58.5 million as compared to a net loss of $553.0 million for the first quarter of 2009 an increase of $611.5 million. The number of credit unions went from 185 to 167; a decrease of 18, or 9.7 percent.
Total assets of state chartered offices of foreign banks were down $3.4 billion or 12.9% from $26.1 billion as of March 31, 2009 to $22.7 billion one year later, while loans were down 12.9% from $17.5 billion to $14.4 billion during the same period. Deposits were down 2.1%, from $12.9 billion as of March 31, 2009 to $12.7 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 first quarter 2010 were $470.7 million, down $32.7 million or 6.5% from the $503.5 million a year previous. Income from fiduciary activities was up from $90.9 million in March 2009 to $106.5 million at the close of the first quarter 2010, an increase of $15.6 million or 17.1% over the year, while net income was up $30.1 million from a net loss of $26.7 million for the first quarter of 2009 to a net profit of $3.4 million for the same period in 2010. The number of trust companies remained stable throughout the year at seven.