June 30, 2011
DFI - Quarterly Report - Second Quarter 2011
Report (Excel) Second Quarter 2011
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, 2011, the number of state-chartered banks decreased by 12 or 6.1% to 186 from 198 on June 30 one year ago. Assets went from $225.8 billion to $251.9 billion, up $26.1 billion or 11.6% over the same period. Total equity capital was up 13.7%, from $29.2 billion to $33.2 billion in the second quarter of 2011, causing the equity capital to total asset ratio to increase from 12.95% to 13.20 percent. Loans were up 11.3%, going from $149.6 billion to $166.6 billion, while deposits were up $28.8 billion or 17.0% from $169.3 billion to $198.1 billion. This caused the loan to deposit ratio to decrease to 84.10% from 88.37% one year previous.
For 2010, state-chartered banks reported net income of $735.1 million, as compared to a net loss of $1.0 billion in 2009. Loan loss provisions in the same period were down $2.2 billion from $4.8 billion to $2.6 billion, a decrease of 46.1 percent.
In the first half of 2011, state-chartered banks reported net income of $1.1 billion, up $1 billion from $79.1 million in the first half of 2010. Loan loss provisions in the same period were down $908.7 million from $1.5 billion to $586.7 million, a decrease of 60.8 percent.
The net interest margin was up from 3.53% one year ago to 3.67 percent. Loan loss reserves as of June 30, 2011 were $3.7 billion, down $374.0 million or 9.3% from $4.0 billion a year ago while noncurrent loans were down 15.1% from $6.2 billion to $5.3 billion over the same period. This caused reserve coverage of noncurrent loans to increase from 65.22% to 69.74 percent. Other real estate owned decreased 5.1%, going from $1.3 billion to $1.2 billion.
As of June 30, 2011, industrial bank assets were $9.0 billion, up 0.9% from $8.9 billion one year ago. Total equity capital was up 11.9% from $1.4 billion to $1.5 billion. This caused the equity capital to asset ratio to increase from 15.41% to 17.09 percent. Loans were up 2.6%, to $6.1 billion, while deposits were down 4.1 % to $6.6 billion, which caused the loan to deposit ratio to increase from 86.4% to 92.48 percent.
Industrial banks showed a net profit of $86.7 million in the first half of 2011, up $77 million from $9.8 million in the first half of 2010. The net interest margin decreased from 5.04% to 4.97% while the provision for loan losses was a negative $13.7 million, down 112.5% from $109.2 million in the second half of 2010. Loan loss reserves were down 38.2% from $292.8 million to $181.0 million over the period, while noncurrent loans decreased from $466.9 million to $320.6 million, down $146.2 million or 31.3 percent. This caused reserve coverage of noncurrent loans to decrease from 62.7% to 56.44 percent. Other real estate owned increased by 12.3%, going from $37.9 million as of June 30, 2010 to $42.6 million a year later. During the period, the number of industrial banks remained constant at ten.
Assets, at $72.4 billion and shares at $62.1 billion as of June 30, 2011 were each down a fraction of a percent from where they stood one year ago. Loans were down 7.8% over the same period, going from $44.6 billion to $41.1 billion. At $7.1 billion on June 30, net worth was up 7.1% from $6.6 billion a year previous. This caused the net worth to asset ratio to increase to 9.75% from 9.09% one year ago. The allowance for loan losses was $1.2 billion, down 11.0% from $1.4 billion one year ago, while delinquent loans at $901.5 million were down 22.8% from $1.2 billion at the same time last year. Delinquent loans as a percentage of total loans were 2.19% at midyear 2011 as compared to 2.62% a year previous. Other real estate owned was up $34.6 million or 30.7% from $112.7 million to $147.3 million.
Net margin to average assets at 4.39 was essentially unchanged from one year ago, while the provision for loan losses was down 46.7% going from $1.4 billion to $765.0 million over the same period. Net income went from a loss of $397.7 million for 2009 to a profit of $335.4 million for the same period in 2010. The number of credit unions went from 170 to 162; a decrease of eight, or 4.7 percent.
Net margin to average assets at 4.22% was down from 4.41% one year ago, while the provision for loan losses was down 50.0% going from $429.8 million to $215.0 million over the same period. Net income in the second quarter was up 135.4% from $128.0 million for the first half of 2010 to $301.3 million for the same period in 2011. The number of credit unions went from 167 to 159; a decrease of eight, or 4.8 percent.
Total assets of state chartered offices of foreign banks were up $3.2 billion or 13.7% from $22.9 billion as of June 30, 2010 to $26.1 billion one year later, while loans were up 25.0% from $14.6 billion to $18.2 billion over the same period. Deposits were down 1.9%, from $12.0 billion as of June 30, 2010 to $11.8 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 June 30, 2011 were $410.2 million, down $9.6 million or 2.3% from the $419.8 million a year previous. Income from fiduciary activities in the second half of 2011 was down $13.0 million or 6.2% to $195.8 million from $208.8 million a year previous, while net income was up $5.9 million from a net loss of $8.6 million to a net loss of $2.7 million. The number of trust companies remained stable throughout the year at seven.