Important Notices
July 07, 2008
Governor Schwarzenegger Signs SB 1137 to Protect Homeowners
Quarterly
Report (Excel) First Quarter 2008
Introduction
Each quarter, the Quarterly Report presents summary statistics for banks, industrial banks, offices of foreign banks, trust companies and credit unions 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.
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Commercial Banks
For the one-year period ending March 31, 2008, the number of state-chartered banks increased by 6.4% to 215 at the quarter end, compared to 202 a year previous. Assets were up from $211.7 billion to $226.7 billion, an increase of $15.0 billion, or 7.1% over the same period, while loans were up 9.7%, from $148.7 billion to $163.1 billion. Total equity capital trailed asset and loan growth, increasing just 0.4%, from $27.4 billion to $27.6 billion at the end of the quarter, causing the equity capital to total asset ratio to decline from 12.97% to 12.17%.
Deposit growth did not keep pace with loans, increasing 3.0% to $156.3 billion, which caused the loan to deposit ratio to increase to 104.37% from 97.99% at the close of the first quarter 2007, while net income for the first quarter of the year was $62.5 million, off $607.9 million or 90.7% from the first quarter 2007. The net interest margin was down from 3.73 to 3.42%, constricted by the increased cost of funds. Return on assets, return on equity and reserve coverage of noncurrent loans decreased, while noncurrent loans and other real estate owned more than doubled, the former going from $771.9 million to $2.3 billion, while the latter went from $39.9 million to $163 million.
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Industrial Banks
Financial statistics for industrial banks continue to be significantly impacted by the results of a single subprime lender. Total loans, total assets, total deposits and total capital experienced double-digit declines from March 31 one year ago. Assets were down 41.6% from $18.1 billion to $10.6 billion while loans declined by over half, going from $15.0 billion to $6.8 billion. Total equity capital was also down by over half, going from $1.7 billion to $804.4 million, while the number of industrial banks decreased by one, from 14 to thirteen.
Deposits were down 36.7% from $14.3 billion to $9.0 billion which caused the loan-to-deposit ratio to decrease from 104.88% to 74.85%. Losses reported for the quarter were lower in 2008. Losses for the quarter were $163.9 million, down from $221.2 million for the first quarter of 2007, while noncurrent loans decreased from $506.9 million to $485.1 million, a reduction of $21.7 million or 4.3%. The net interest margin declined from 3.43% to 3.01%. Other real estate owned increased by 50.3%, going from $20.6 million at quarter end in 2007 to $30.9 million in the first quarter 2008.
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Credit Unions
Credit unions experienced very slight growth in total assets, total loans, total shares and total capital in the twelve-month period ending March 31. Assets, at $73.6 billion were up 4.0% from the $70.8 billion reported as of March 31, 2007. Loans were up 3.4% from $50.0 billion to $51.7 billion while shares were up 2.3% from $60.3 billion to $61.7 billion. Members' equity was up 2.3% as well, going from $7.5 billion to $7.6 billion. The allowance for loan losses was up 82.6% from $294.5 million to $537.9 million. The number of credit unions decreased by seven, from 203 to 196 a decrease of 2.5%.
Net margin to average assets increased very slightly, going from 3.93% at the end of first quarter 2007 to 3.96% for the same period in 2008, while the provision for loan losses more than doubled, going from $60.5 million in at quarter end 2007 to $225.2 million as of March 31, 2008. For the quarter, net income plunged from $119 million in 2007 to a net loss of $14.3 million, a decrease of $133.5 million or 118.8%. Delinquent loans more than doubled, going from $237.9 million to $530.9 million an increase of $293.0 million, an increase of 123.2%.
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Foreign Banks
State-chartered offices of foreign banking organizations experienced growth in total assets, total loans and total deposits during the year ended March 31, 2008. Total assets were up 21.0% from $19.3 billion to $23.4 billion while loans at $17.1 billion were up 20.8% from $14.1 billion at the end of 2007. Deposits were $11.8 billion as of March 31, 2008, an increase of 27.9% from the $9.3 billion reported as of March 31, 2007. The number of foreign banking organizations with state-chartered offices in California remained constant at thirty-six.
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Trust Companies and Departments
Total corporate assets of trust companies at the end of the first quarter 2008 were at $643.2 million, down $110.8 million or 14.7% from the $754.1 million a year previous. Income from fiduciary activities was also down 25.5% from first quarter 2007 while net income was off 83.3% from $26.9 million at the end of the first quarter 2007 to $4.5 million in 2008, caused in large part by the reduction in the number of trust companies from ten to eight. Total fiduciary assets at state-chartered banks and trust companies increased 28.7% from $204.6 billion to $263.4 billion. The number of state-chartered banks with trust powers remained at 19 during the period.
