Second Quarter 2012
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.
As of June 30, 2012, the number of state-chartered banks decreased by 10 or 5.4% to 176 from 186 on June 30 one year ago. Assets went from $251.9 billion to $269.9 billion, up $18.0 billion or 7.1% over the same period. Total equity capital was up 8.1%, from $33.2 billion to $35.9 billion in the second quarter of 2012, causing the equity capital to total asset ratio to increase from 13.20% to 13.31 percent. Loans were up 6.9%, going from $166.6 billion to $178.1 billion, while deposits were up $15.9 billion or 8.0%, going from $198.1 billion to $214.0 billion. This caused the loan to deposit ratio to decrease to 83.21% from 84.10% one year previous.
As of June 30, state-chartered banks reported net income of $1.5 billion, up $402.4 million from $1.1 billion for the first half of 2011. Loan loss provisions in the same period were down $276.2 million from $586.7 million to $310.5 million, a decrease of 47.1 percent.
The net interest margin was down from 3.67% one year ago to 3.59 percent. Loan loss reserves as of June 30, 2012 were $3.2 billion, down $421.6 million or 11.5% from $3.7 billion a year ago while noncurrent loans were down 36.7% from $5.3 billion to $3.3 billion over the same period. This caused reserve coverage of noncurrent loans to increase from 69.74% to 97.47 percent. Other real estate owned decreased 22.3%, going from $1.2 billion to $959 million.
As of June 30, 2012 there were eight industrial banks, down from ten on June 30 one year ago. Total assets were $8.8 billion, down 2.3% from $9.0 billion over the same period. Total equity capital was down 15.1% from $1.5 billion to $1.3 billion. This caused the equity capital to asset ratio to decrease from 17.09% to 14.84 percent. Loans were up 8.1%, to $6.6 billion, while deposits were up a fraction of a percent to $6.6 billion, which caused the loan to deposit ratio to increase from 92.48% to 99.45 percent.
Industrial banks showed a net profit of $65.5 million in for the first half of 2012, down $21.2 million or 24.5% from $86.7 million in the first half of 2011. The net interest margin was 4.90% down from 4.97% a year previous, while the provision for loan losses was $20.1 million, up from a negative $13.7 million at the close of the second quarter of 2011. Loan loss reserves were down 20.5% from $181.0 million to $143.8 million over the period, while noncurrent loans decreased from $320.6 million to $184.0 million, down $136.7 million or 42.6 percent. This caused reserve coverage of noncurrent loans to increase from 56.44% to 78.19 percent. Other real estate owned decreased by 43.1%, going from $42.6 million as of June 30, 2011 to $24.2 million a year later.
Assets at June 30, 2012 were $76.0 billion up $3.6 billion or 5.0% from $72.4 billion one year ago, while shares, at $65.7 billion as of June 30, 2012 were up 5.7% from $62.1 billion. Loans were down 2.7% over the same period, going from $41.1billion to $39.9 billion. At $7.6 billion on June 30, net worth was up 7.6% from $7.0 billion a year previous. This caused the net worth to asset ratio to increase to 9.99% from 9.75% one year ago. The allowance for loan losses was $1.0 billion, down 16.1% from $1.2 billion one year ago, while delinquent loans at $547.2 million were down 39.3% from $901.5 billion at the end of the second quarter in 2011. Delinquent loans as a percentage of total loans were 1.37% as of June 30, 2012 as compared to 2.19% one year ago. Other real estate owned was down $14.4 million or 9.8% from $147.3 million to $132.9 million.
Net margin to average assets at 4.00% was down from 4.22% one year ago, while the provision for loan losses was down 42.0%, going from $215.0 million to $124.6 million over the same period. Net income was up 18.7% from $301.3 million in the second half of 2011 to $357.7 million for the second half of 2012. The number of credit unions went from 159 to 156; a decrease of three, or 1.9 percent.
Total assets of state chartered offices of foreign banks were down $543.7 million or 2.1% from $25.5 billion as of December 31, 2010 to $24.9 billion one year later, while loans were up 36.0% from $15.5 billion to $21.1 billion over the same period. Deposits were down 27.4%, from $12.3 billion as of December 31, 2010 to $8.9 billion one year later. The number of foreign banking organizations with state-chartered offices in California remained constant at 31 during the year.
Total corporate assets of trust companies at December 31, 2011 were $398.9 million, down $29.3 million or 6.8% from the $428.2 million a year previous. Income from fiduciary activities at yearend was down $43.6 million or 10.7% to $364.5 million from $408.0 million a year previous, while net income went from a net loss of $9.3 million to a net loss of $21.3 million. The number of trust companies increased by one during the year, going from seven to eight.