BAC Florida Bank’s net income fell 79 percent in the third quarter – to $349,000 from nearly $1.7 million for the same quarter a year ago – as problem loans ate into its portfolio.
In the second quarter of this year, South Florida’s 13th-largest local bank as of June, made $780,000, according to its filing with the Federal Financial Institutions Examination Council.
The Coral Gables-based private bank’s $1.6 million provision to reserve for future loan losses and $951,000 in charge-offs, due to problem loans, hurt its third quarter performance.
The bank reported $26.2 million in nonaccrual loans, representing 4.27 percent of its loan portfolio, as of Sept. 30. That’s up from $19.7 million, or 3.13 percent, in the second quarter. In the third quarter of 2007, BAC Florida had only $5.8 million, or 0.99 percent, in nonaccrual loans.
The bank increased its reserve allowance for future loan losses to $6.8 million as of Sept. 30. But, that only covered 23.5 percent of its nonaccrual loans, down from 31.3 percent in the second quarter and 82.3 percent in the third quarter of 2007.
A low percentage in that column means the bank could suffer future losses if it has to charge off a large portion of its nonaccrual loans. The majority of those loans were in one-to-four-family residential properties.
BAC Florida officials did not immediately return a call for comment.
As of Sept. 30, it reported $949.6 million in assets, $649.4 million in deposits and $75.8 million in equity capital. That’s down $10.5 million, $16.7 million and $558,000, respectively, from the second quarter totals.
Its capital-to-risk ratios declined from the second to the third quarter, but remained comfortably above the regulator minimum for a well-capitalized bank.
Source:http://www.bizjournals.com/southflorida/