Midsize California thrifts showed financial strength in the fourth quarter. Asset quality throughout the region, though checkered in some instances, is improving, analysts said.

"We're definitely seeing declining nonperforming assets in that whole group in California," said David Dusenberry, a thrift analyst at Credit Suisse First Boston. "It's not a huge decline, but little by little, which is positive."

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.