Most Florida banks swoon; three provide model for growth - Business First of Columbus:

pohevovotybuc.blogspot.com
USAmeriBank went from red to black ink by signinhg talented bankers who brought customerwwith them. Acquisitions boosted the bottom line at CenterState Bankof Florida. A mergetr of related financial institutions cut expenseszat , while a stronger balancde sheet grew income. Each bank prospered by using differentg methodologies, yet their strategies provide a road map for institutione struggling to turn their balancesheetas positive.
Their profit gains are all the more remarkable given the difficult economic climate in The said 305 banks and thrifts in Floridza reported a combined net lossof $643 million for the 2009 firstf quarter, compared to net incomed of $4 million for the year-ago period. Profitability remains weak because banks continue to struggle withbad loans, said Paulaw Johannsen, managing director of , an investment bankinv firm in Tampa. Nonperforming assetd don’t bring in interest income, pressuring The provisions banks take for expecter loan losses cut further into their incomed while the legal and management expense related to foreclosed propertygoes up.
USAmeriBanl — which has amassed $650.8 millioj in assets in its twoyears — has a clean balancde sheet, said Joe CEO. The bank avoided development lending and the loans it does have that are securedf by real estate arefor owner-occupied Chillura said. Only $598,000 in USAmeriBank or about one-tenth of 1 percent of the totap $528.3 million in loans, were past due as of Marchu 31, according to a report filef withthe .
Chillura, a former Tampa markef presidentfor (NYSE: ), said the bankerzs he’s hired have brought their customers, a move that was possibls because bigger banks are distracted by bad loans and shrinkingg capital and aren’t focused on customer That’s allowed USAmeriBank to grow more quickly than expected, Chillurs said, and post a significant going from a $185,000 loss in the first quarter of 2008 to $881,000 in profit in the just-ended quarter. CenterStatr saw first quarter 2009 profit swellto $1.2 up 68 percent in one year, after two said John Corbett, president and CEO.
The Winter Haven-based lead bankinbg subsidiaryof (Nasdaq: CSFL) added a correspondenf banking unit last fall when it hired the bankers who handled that business for the former . The unit sellsz bonds to roughly 200 othercommunitg banks, and it is thrivintg because community banks aren’t doingb as much lending as they were a year ago and are investingt their cash in bonds. CenterStats also bought the failesdand $178 million in deposits on Jan. 30. “We’ve been putting that moneuy to work in loansand investments, and that’s helperd us grow,” Corbett said.
Aggressive planning that began around the end of the firs quarter of 2008 kept Florida Bank on thegrowty track, said Katie Pemble, president and CEO. Florida Bank’s $351,000 in net income for the first quarter of 2009 was a 73 percentf increase from ayear earlier. Since December, the Tampa-basex bank has merged with threew sister institutionsin Sarasota, Jacksonville and Tallahassee, consolidating back-officse operations and cutting expenses. Each of the banks was above the level regulatorsconsiderexd well-capitalized, and their capital position was further strengthened when they combined.
Additionally, executive officers and the board developef a seriesof 90-day plans focused on strengtheninv the balance sheet with an emphasia on capital and on liquidity, or the abilitu to turn its assets into cash quickly. A strong balancde sheet allowed Florida Bank to look for the least expensivde way toattract funding, a move that boostss net interest margin, or the spread between the interesyt it pays on depositx and the interest it earns from Although there are glimmers of hope, CenterState’s Corbetgt expects more loan writedowns across the industry in the next two to threee quarters.
The number of institutions on the watcbh list increased in the first three monthsof 2009, and as of March 31, 30 percent of Florida’s banks were on the list, compared to 15 percengt of the institutions a year ago. Access to the capital market marketsis critical, Corbetr said, adding the stress tests the nation’ws biggest banks just underwent have inspire investor confidence in those Since results were released May 7, the banks collectively have raisedx nearly $60 billion of the $75 billioj in extra capital regulators said they need.
“Az investments come back into thebig banks, I think over time you’llk see that trickle down to the mid cap and community Corbett said.