Editor's Note: This story has been corrected to include First Republic Bank's third-quarter net income of $66.4 million and 0.00% net charge-off ratio.SACRAMENTO, Calif. ( TheStreet) -- While California has had its share of bank failures, its banking industry is showing signs of recovery. According to data supplied by SNL Financial, 73% of banks and thrifts headquartered in the Golden State turned a profit during the third quarter, compared to 63% of U.S. all banks in thrifts, as reported by the Federal Deposit Insurance Corp. in its Quarterly Banking Profile.
California's Largest BanksThe list includes financial strength ratings provided by Weiss Ratings. Weiss Ratings uses a very conservative ratings model, placing the greatest weight on capital strength, credit quality and earnings stability to assign ratings ranging from A-plus (Excellent) to E-minus (Very Weak).
California Banks with Weakest Asset QualityAccording to data provided by SNL Financial, five of California's 279 banks and thrifts were undercapitalized per ordinary regulatory guidelines as of September 30. Georgia had the highest number of institutions on TheStreet's third-quarter Bank Watchlist with 42 undercapitalized institutions, followed by Florida with 17 undercapitalized banks and thrifts as of September 30. Another approach in identifying the weakest banks is to look at overall credit quality. The following list includes all banks in the state with nonperforming assets comprising more than 10% of total assets as of asset quality:
California Bank FailuresThere have been 12 bank failures in California so far this year, with a total of 34 since the current wave of bank closures began in 2008. All previous bank and thrift failures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map: All bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map: The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark gray, and states with no failures in light green. By moving your mouse over a state you can see its combined 2008-2010 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.
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