State Profile Arizona

Fourth Quarter 2023

ECONOMIC INDICATORS (NOT SEASONALLY ADJUSTED, UNLESS NOTED)

Q4-23 Q3-23 Q4-22 2023 2022

2.2% 2.2% 3.8% 2.6% 4.8%

Employment Growth Rates (% change from year ago, unless noted)

Total Nonfarm (share of trailing four quarter employment in parentheses)

Manufacturing

Other (non-manufacturing) Goods-Producing

Private Service-Providing

Government

Unemployment Rate (% of labor force, seasonally adjusted)

(6%)

(7%)

(73%)

(13%)

-0.7%

6.8%

2.0%

2.6%

4.2%

-0.1%

7.1%

1.7%

3.2%

4.1%

5.1%

10.5%

3.5%

1.8%

3.9%

1.1%

8.0%

2.2%

2.9%

3.9%

5.4%

9.4%

4.9%

1.6%

3.8%

Other Indicators (% change of 4-qtr moving total, unless noted) Q4-23 2023 2022

Single-Family Home Permits

Multifamily Building Permits

Home Price Index (change from year ago)

Nonbusiness Bankruptcy Filings per 1000 people (quarterly annualized level)

-8.2%

-1.3%

4.4%

N/A

-27.4%

2.6%

-0.3%

1.34

-18.9%

24.1%

10.7%

1.07

-8.2%

-1.3%

1.8%

N/A

-18.9%

24.1%

21.5%

1.19

BANKING TRENDS

General Information Q4-23 Q3-23 Q4-22 2023 2022

Institutions (#) 14 13 14 14 14

Total Assets (in millions) $74,777 $74,331 $71,600 $74,777 $71,600

New Institutions (# < 3 years) 4 3 3 4 3

Subchapter S Institutions (#) 0 0 0 0 0

Asset Quality Q4-23 Q3-23 Q4-22 2023 2022

Past-Due and Nonaccrual Loans / Total Loans (median %) 0.28 0.25 0.00 0.28 0.00

Noncurrent Loans / Total Loans (median %) 0.05 0.12 0.00 0.05 0.00

Loan and Lease Allowance / Total Loans (median %) 1.16 1.24 1.10 1.16 1.10

Loan and Lease Allowance / Noncurrent Loans (median multiple) 2.32 2.78 1.36 2.32 1.36

Net Loan Losses / Total Loans (median %, year-to-date annualized) 0.00 0.00 0.00 0.00 0.00

Capital / Earnings (year-to-date annualized, unless noted) Q4-23 Q3-23 Q4-22 2023 2022

Tier 1 Leverage (median %, end of period) 12.26 11.80 11.62 12.26 11.62

Return on Assets (median %) 0.76 0.65 0.61 0.76 0.61

Pretax Return on Assets (median %) 0.96 0.86 0.80 0.96 0.80

Net Interest Margin (median %) 3.86 3.90 3.51 3.86 3.51

Yield on Earning Assets (median %) 5.49 5.38 3.81 5.49 3.81

Cost of Funding Earning Assets (median %) 1.44 1.21 0.29 1.44 0.29

Provisions to Avg. Assets (median %) 0.06 0.09 0.04 0.06 0.04

Noninterest Income to Avg. Assets (median %) 0.24 0.31 0.22 0.24 0.22

Overhead to Avg. Assets (median %) 2.92 3.25 2.88 2.92 2.88

Liquidity / Sensitivity Q4-23 Q3-23 2023

Net Loans to Assets (median %) 66.54 71.91 56.92 66.54 56.92

Noncore Funding to Assets (median %) 11.73 7.91 5.52 11.73 5.52

Long-term Assets to Assets (median %, call filers) 35.27 35.68 36.81 35.27 36.81

Brokered Deposits (number of institutions) 5 5 4 5 4

Brokered Deposits to Assets (median % for those above) 3.37 2.67 0.86 3.37 0.86

Loan Concentrations

(median % of Tier 1 Capital plus the Reserve for Loan and Lease Losses) Q4-23 Q3-23 Q4-22 2023 2022

Commercial and Industrial 94 86 85 94 85

Commercial Real Estate 268 295 317 268 317

Construction & Development 22 39 29 22 29

Multifamily Residential Real Estate 8 10 10 8 10

Nonresidential Real Estate 226 254 270 226 270

Residential Real Estate 39 40 28 39 28

Consumer 1 1 1 1 1

Agriculture 0 0 0 0 0

BANKING PROFILE

Asset Distribution

< $100 million 5 (35.7%)

Institutions in Market

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Phoenix-Mesa-Chandler, AZ 58 $167,170

Largest Deposit Markets (from 2023 Summary of Deposits) Deposits ($ millions) Institutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits ($ millions) Per

Employment Growth Rates (% change from year ago, unless noted)

Total Nonfarm (share of trailing four quarter employment in parentheses)

Manufacturing

Other (non-manufacturing) Goods-Producing

Private Service-Providing

Government

Unemployment Rate (% of labor force, seasonally adjusted)

Q3-23 Q4-22

Q4-22 2022

Tucson, AZ 18 $20,394 $100 million to $250 million 2 (14.3%)

Prescott Valley-Prescott, AZ 12 $5,728 $250 million to $1 billion 6 (42.9%)

Lake Havasu City-Kingman, AZ 9 $4,040 $1 billion to $10 billion 0 (0.0%)

Yuma, AZ 7 $2,909 $10 billion 1 (7.1%)