Quarterly ReportThird Quarter 2012
The Quarterly Report presents summary statistics for banks, industrial banks, credit unions, offices of foreign banks and trust companies with a comparison to the same quarter one year ago. 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 September 30, 2012, the number of state-chartered banks decreased by 11 or 6.0% to 171 from 182 on September 30 one year ago. Assets went from $258.9 billion to $274.1 billion, up $15.3 billion or 5.9% over the same period. Total equity capital was up 7.5%, from $34.1 billion to $36.6 billion in the third quarter of 2012, causing the equity capital to total asset ratio to increase from 13.17% to 13.36 percent. Loans were up 7.8%, going from $168.5 billion to $181.7 billion, while deposits were up $14.4 billion or 7.1%, going from $203.2 billion to $217.6 billion. This caused the loan to deposit ratio to increase to 83.50% from 82.95% one year previous.
As of September 30, state-chartered banks reported net income of $2.3 billion, up $548.8 million from $1.7 billion for the first nine months of 2011. Loan loss provisions in the same period were down $377.0 million from $813.6 million to $436.6 million, a decrease of 46.3 percent.
The net interest margin was down from 3.59% one year ago to 3.53 percent. Loan loss reserves as of September 30, 2012 were $3.2 billion, down $360.0 million or 10.2% from $3.5 billion a year ago while noncurrent loans were down 32.0% from $4.6 billion to $3.1 billion over the same period. This caused reserve coverage of noncurrent loans to increase from 76.31% to 100.82 percent. Other real estate owned decreased 31.3%, going from $1.2 billion to $824.4 million.
As of September 30, 2012 there were eight industrial banks, down from nine on September 30 one year ago. Total assets were $9.0 billion, up 1.8% from $8.8 billion over the same period. Total equity capital was down 14.3% from $1.6 billion to $1.3 billion. This caused the equity capital to asset ratio to decrease from 17.85% to 15.02 percent. Loans were up 9.4%, to $6.6 billion, while deposits were up 5.9 percent to $6.7 billion, which caused the loan to deposit ratio to increase from 95.12% to 98.28 percent.
Industrial banks showed a net profit of $104.6 million for the first nine months of 2012, down $14.7 million or 12.3% from $119.3 million in the first nine months of 2011. The net interest margin was 4.85% down from 5.00% a year previous, while the provision for loan losses was $22.2 million, up from $800 thousand at the close of the third quarter of 2011. Loan loss reserves were down 15.0% from $164.0 million to $139.4 million over the period, while noncurrent loans decreased from $189.0 million to $148.7 million, down $40.3 million or 21.3 percent. This caused reserve coverage of noncurrent loans to increase from 86.80% to 93.77 percent. Other real estate owned decreased by 14.2%, going from $25.4 million as of September 30, 2011 to $21.8 million a year later.
Total assets at September 30, 2012 were $76.5 billion up $3.8 billion or 5.2% from $72.7 billion one year ago. Shares, at $65.8 billion were up by the same percentage, going from $62.6 billion on September 30, 2011 to $62.6 billion a year later. Loans were down 1.5% over the same period, going from $40.6 billion to $40.0 billion. Net worth was up 8.9% from $7.1 billion a year previous to $7.8 billion on September 30, 2012. This caused the net worth to asset ratio to increase to 10.17% from 9.82% one year ago. The allowance for loan losses was down 19.1% from $1.2 billion one year ago to $963.0 million, while delinquent loans at $529.2 million were down 42.4% from $919.5 million at the end of the third quarter in 2011. Delinquent loans as a percentage of total loans were 1.32% as of September 30, 2012 as compared to 2.26% one year ago. Other real estate owned was down $30.4 million or 20.6% from $147.1 million to $116.7 million.
Net margin to average assets at 4.00% was down from 4.20% one year ago, while the provision for loan losses was down 51.2%, going from $315.3 million to $153.9 million over the same period. Net income was up 43.7% from $381.6 million in the first nine months of 2011 to $548.3 million for the same period in 2012. The number of credit unions went from 158 to 153; a decrease of five, or 3.2 percent.
Total assets of state chartered offices of foreign banks at the close of the third quarter 2012 were $25.9 billion, up $2.6 billion or 11.2% from $23.3 billion one year ago, while loans were up 14.5% from $19.2 billion to $22.0 billion over the same period. Deposits were up 9.2%, from $8.8 billion as of September 30, 2011 to $9.7 billion one year later. The number of foreign banking organizations with state-chartered offices in California remained constant at 31 during the year.
Trust CompaniesTotal corporate assets of trust companies at September 30, 2012 were $371.3 million, down $26.8 million or 6.7% from the $398.1 million a year previous. Income from fiduciary activities for the first nine months of the year was down $26.1 million or 9.3% to $255.9 million in 2012 from $282.0 million for the same period of 2011, while net income went from a net loss of $11.6 million to a net loss of $39,4 million. The number of trust companies increased by one during the year, going from seven to eight.