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 Banks

The 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).

All ten of the largest California banks were profitable during the third quarter, including newly-independent First Republic Bank ( FRC) of San Francisco, which had been purchased by Merrill Lynch for $1.8 billion in September 2007. Merrill Lynch was acquired by Bank of America in January 2009 and First Republic's management purchased the bank from Bank of America on July 1 in a non-cash transaction. First Republic's shares began trading Thursday on the New York Stock Exchange after an initial public offering at $25.50 a share.

The largest bank headquartered in California is Union Bank, NA, which is held by Mitsubishi UFJ Financial Group ( MTU). The bank ranked third for deposit market share in the state as of June 30 according to the FDIC, with $61.5 billion in deposits in California. Bank of America, NA ( Bank of America's ( BAC) main banking subsidiary) took first place with $222 billion in California deposits, followed by Wells Fargo Bank, NA (held by Wells Fargo ( WFC), which placed second with $162 billion in deposits gathered through branches in the state.

The fourth-ranked bank for California deposits was JPMorgan Chase Bank, NA (held by JPMorgan Chase ( JPM)) with $61 billion, followed by Citibank, NA (held by Citigroup ( C), in fifth-place with $47.6 billion in deposits.

Moving back to banks actually headquartered in the state, standouts include OneWest Bank, FSB of Pasadena, which was formed in March 2009 when an investor group purchased the former IndyMac Bank -- which had failed in July 2008 -- from the FDIC. OneWest earned $92.8 million during the third quarter, for a return on average assets (ROA) of 1.35%, which among the largest ten California banks was only bested by BlackRock Institutional Trust (held by BlackRock ( BLK)), which achieved an impressive third-quarter ROA of 4.89%, on rising investment banking and trust fee revenue.

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