California Bank Failures Cost $15 Billion

SACRAMENTO (TheStreet) -- California has had 13 bank or thrift failures during 2008 and 2009, tied with Illinois for second among all states after Georgia.

Based on the Federal Deposit Insurance Corp.'s press releases, California bank and thrift failures have been the most expensive for the agency, with costs to its deposit-insurance fund totaling $15 billion, followed by $5.4 billion for Florida and $3.9 billion for Georgia.

Strongest California Banks and Thrifts

While recent strength in the stock market highlights investors' assumption that an economic recovery is beginning, banking-industry exposure to problem assets continued its rapid increase during the first quarter.

Of course, there are still many strong banks, and savings and loans out there. Based on March 31 financial reports, 18 of California's 311 banks and thrifts were rated B-plus (good) or higher, down from 28 the previous quarter.

California Banks and S&Ls Rated B+ or Higher -- March 31, 2009 (millions of dollars)

Institutions are listed by rating and city.

The ratings encompass a large number of data, placing the greatest weight on capital strength, credit quality and earnings stability.

One notable upgrade on the list is Farmers & Merchants Bank of Central California, which was assigned an A (very good) financial-strength rating, up from A-minus the previous quarter. Farmers & Merchants is held by Farmers & Merchants Bancorp(FMBC Quote).

Largest California Institutions

The following table includes capital, earnings and asset-quality indicators for the 10 largest California banks and thrifts.

10 Largest Californa Banks and S&Ls -- March 31, 2009 (millions of dollars)

Bank of America California NA of San Francisco, held by Bank of America Corp.(BAC Quote), maintained its C-plus rating, which was a downgrade from B-minus in March, based on fourth-quarter figures. In large part, the rating reflects the institution's holding-company affiliation. Its larger sibling, Bank of America NA of Charlotte, N.C., is rated C-minus.