NEW YORK ( TheStreet) -- Most of California largest banks saw continued improvement in profitability during the first quarter, although 38 Golden State institutions were still losing money.
Following the pattern being seen for other key states in the boom-and-bust cycle for the housing market -- including Florida, Georgia and Illinois -- most of California's banks saw continued improvement in asset quality and profitability during the first quarter, with over 85% of the state's 258 institutions now in the black, according to regulatory data provided by Thomson Reuters Bank Insight.
Since the current wave of bank failures began during 2008, 39 California banks and savings and loan associations have failed, trailing only Georgia, with 78 failures, Florida, with 61 and Illinois with 50. But only four institutions in the state have failed so far this year. The most recent California bank to fail was Palm Desert National Bank, which was closed by the Office of the Comptroller of the Currency on April 27, and sold by the Federal Deposit Insurance Corp. to Premier Pacific Bancorp (PPBI) of Costa Mesa, Calif.
Please see TheStreet's Bank Watch List for a full listing of all the banks and thrifts across the country that were undercapitalized as of March 31, per normal regulatory guidelines.Since the Watch List is based solely on capital ratios, we take a different approach on our quarterly coverage of banks in key states, by looking at overall credit quality to identify troubled institutions.
California Banks with Weakest Asset QualityThe following list includes all banks in the state with nonperforming assets comprising more than 15% of total assets as of March 31:
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