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South Florida’s billion-plus banks grow loans by $2.86B in Q2

August 6th, 2015

The 11 South Florida-based banks with $1 billion or more in assets as of June 30 saw greater loan growth in the second quarter than the first, generating a collective $2.86 billion in new loans in the second three months of 2015.

Miami Lakes-based BankUnited saw the most loan growth, which is not surprising given their dominance in assets and total loans among South Florida-based banks. Weston-based Florida Community Bank, No. 4 in terms of total assets in the billion-plus group, saw the second greatest amount of loan growth in the second quarter, followed by No. 5 in terms of terms of assets, Miami-based City National Bank.

Three of the billion-plus banks broke billion-dollar ceilings in the second quarter. City National climbed to over $6 billion in total assets, Coral Gables-based Capital Bank cleared the $7 billion mark, and BankUnited grew to over $20 billion in total assets.

All 11 banks were profitable in the second quarter, unlike during the first quarter when two of them reported losses. Collectively, the billion-plus South Florida-based banks reported $130.5 million in profit in the second quarter.

These 11 institutions are the largest among the existing 55 South Florida-based banks. The second quarter results, in order of asset size:

BankUnited

The Miami Lakes bank’s second quarter was stronger than the first quarter of the year. The bank increased assets to $21.3 billion in the second quarter, up from $19.8 billion in the previous quarter. BankUnited generated almost $1.18 billion in new loans in the second quarter to reach $14.2 billion in total loans, the biggest growth seen among South Florida-based banks.

During the bank’s earnings call, Chairman, President and CEO John Kanas discussed how the bank would be rebalancing its lending strategy in Florida to take advantage of economic development in urban centers like Tampa and Jacksonville, while shifting away from South Florida markets.

• Net income: $46.7 million profit in the second quarter
• Deposits: $15.5 billion in the second quarter, up from $14.51 billion in the first quarter
• Provision for loan loss: $16.6 million as of the second quarter
• Noncurrent loan ratio: 0.65 percent in the second quarter

Mercantil Commercebank

Coral Gables-based Mercantil Commercebank increased total assets to $8.19 billion in the second quarter, up from $8.11 billion in the first quarter. The bank grew loans by $258 million in the second quarter to reach $5.53 billion in total loans, up from $5.27 billion in the first quarter.
• Net income: $6.12 million profit in the second quarter
• Deposits: $6.399 billion in the second quarter, slightly up from the $6.39 billion in the first quarter
• Provision for loan loss: $6.2 million as of the second quarter
• Noncurrent loan ratio: 1.16 percent in the second quarter

Capital Bank

Mercantil’s Coral Gables’ neighbor Capital Bank was one of three banks in the billion-plus club to break a billion-dollar asset barrier, reaching $7.05 billion in total assets in the second quarter, up from $6.78 billion in the first quarter. The bank generated about $170 million in loan growth to reach $5.15 billion in total loans in the second quarter, up from $4.98 billion in first quarter.

• Net income: $14.3 million profit in the second quarter
• Deposits: $5.7 billion in the second quarter, up from $5.58 billion in the first quarter
• Provision for loan loss: $458,000 as of the second quarter
• Noncurrent loan ratio: 0.55 percent in the second quarter

Florida Community Bank

The Weston bank bounced back from its first quarter loss, which was due to a one-time write off to regulators for ending a loss-sharing agreement early. Florida Community increased total assets to $6.43 billion in the second quarter, up from $6.06 billion in the first quarter. The bank saw the second most loan growth in the billion-plus group, increasing loans by $429 million in the second quarter to reach $4.5 billion in total loans, up from $4.07 billion in the first quarter.

• Net income: $19.8 million profit in the second quarter
• Deposits: $4.47 billion in the second quarter, up from $4.24 billion in the first quarter
• Provision for loan loss: $3.82 million as of the second quarter
• Noncurrent loan ratio: 1.44 percent in the second quarter

City National Bank

The Miami bank was one of three banks in the billion-plus club to shatter a billion-dollar ceiling, reaching $6.11 billion in total assets in the second quarter, up from $5.57 billion in the first quarter. The bank saw the third most loan growth in the billion-plus group in the second quarter, adding $387 million in new loans to reach $3.84 billion in total loans. The bank’s sales to Chile’s Banco de Credito e Inversiones is in the final stages and is waiting approval from U.S. regulators. That approval is expected to come soon, according to media reports.

• Net income: $12.8 million profit in the second quarter
• Deposits: $4.59 billion in the second quarter, up from $4.32 billion in the first quarter
• Provision for loan loss: -$500,000 as of the second quarter
• Noncurrent loan ratio: 0.28 percent in the second quarter

Sabadell United Bank

Miami-based Sabadell United Bank increased loans by almost $170 million loans in the second quarter to reach $3.49 billion in total loans, up from $3.32 billion in the first quarter. The bank also increased deposits to $4.88 billion in the second quarter, up from $4.74 billion in the first quarter.

• Net income: $7.83 million profit in the second quarter
• Deposits: $3.85 billion in the second quarter, down from $4.32 billion in the first quarter
• Provision for loan loss: $1.7 million as of the second quarter
• Noncurrent loan ratio: 2.43 percent in the second quarter

Ocean Bank

Miami-based Ocean Bank still had the highest noncurrent loan ratio among the billion-plus South Florida-based banks in the second quarter, which means that it has the highest ratio of noncurrent loans to total loans. The bank grew loans by $81.8 million in the second quarter to $2.25 billion in total loans, up from $2.17 billion in the first quarter. The bank was one of two banks to lose assets in the second quarter, seeing assets fall by $39.6 million to $3.2 billion in the second quarter, down from $3.24 billion in the first quarter.

• Net income: $4.59 million profit in the second quarter
• Deposits: $2.76 billion in the second quarter, down from $2.81 billion in the first quarter
• Provision for loan loss: -$400,000 as of the second quarter
• Noncurrent loan ratio: 2.44 percent in the second quarter

TotalBank

Miami-based TotalBank increased assets by $63.8 million in the second quarter to $2.76 billion, up from $2.69 billion in the first quarter. The bank grew loans by $44 million to reach $1.86 billion in the second quarter, up from $1.81 billion in the first quarter.

• Net income: $3.93 million profit in the second quarter
• Deposits: $1.95 billion in the second quarter, up from $1.88 billion in the first quarter
• Provision for loan loss: -$712,000 as of the second quarter
• Noncurrent loan ratio: 0.91 percent in the second quarter

Stonegate Bank

The Pompano Beach-based Stonegate Bank had a news-making second quarter, establishing the first correspondent banking relationship between a U.S.-based bank and a Havana, Cuba institution, and agreeing to bank Cuba’s interests in the United States. The banks also increased loans by $63.2 million in the second quarter to reach $1.76 billion, up from $1.70 billion in the first quarter. The bank increased assets to $2.27 billion in the second quarter, up from $2.26 billion in the first quarter.

• Net income: $6.04 million profit in the second quarter
• Deposits: $1.93 billion in the second quarter, up from $1.90 billion in the first quarter
• Provision for loan loss: $550,00 0 as of the second quarter
• Noncurrent loan ratio: 0.27 percent in the second quarter

BAC Florida Bank

The Coral Gables-based bank increased loans by $51.4 million in the second quarter to reach $1.31 billion, up from $1.26 billion in the previous quarter. BAC Florida also increased assets in the second quarter to reach $1.69 billion, up from $1.64 billion in the previous quarter.

• Net income: $3.45 million profit in the second quarter
• Deposits: $1.35 billion in the second quarter, up from $1.30 billion in the first quarter
• Provision for loan loss: $100,000 as of the second quarter
• Noncurrent loan ratio: 0.66 percent in the second quarter

Gibraltar Private Bank & Trust

Coral Gables-based Gibraltar Private Bank & Trust was one of two banks this quarter to see a decrease in assets. Total assets at the bank dropped $5.72 million to reach $1.58 billion in the second quarter, down from $1.585 billion in the first quarter. The bank did increase loans however, adding $30.1 million in loan growth to reach $1.4 billion in total loans, up from $1.37 billion in the first quarter.

• Net income: $4.9 million profit in the second quarter
• Deposits: $1.15 billion in the second quarter, down from $1.22 billion in the first quarter
• Provision for loan loss: -$4.5 million as of the second quarter
• Noncurrent loan ratio: 0.56 percent in the second quarter

Source: SFBJ

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