Latin-Connected Banks In South Florida A Good Source Of Loans In Q3

South Florida banks with Latin ownership roots showed strong loan growth in the third quarter for the most part and some of them raised significant capital.

After finishing earnings stories on the Top 25 local banks, as well as those with capital shortfalls, the South Florida Business Journal, as part of the new Latin Business Journal, took a closer look at the banks based here that are either subsidiaries of Latin American/Iberian Peninsula banks or are controlled by Hispanic shareholders.

Indeed, 12 of the Top 25 local banks fell into that category. There are also some smaller banks with Latin connections that are on the rise. Overall, 10 of these banks increased their loans by at least $5 million during the third quarter. Two local banks with owners in South American, in Venezuela and Brazil, got big capital injections during the third quarter that should fuel their growth.

Read on for snapshots of how these banks are performing and growing, or in some cases shrinking.

Mercantil Commercebank, Coral Gables
Latin Connection: A subsidiary of Mercantil Servicios Financieros in Venezuela
Earnings Results: Net income of $7.4 million in the third quarter, down from net income of $9.2 million in the second quarter.
Notable: The $6.87 billion-asset bank saw its loan portfolio decline but its asset quality improved. Much of its branch growth this year has been in Houston.

City National Bank of Florida, Miami
Latin Connection: Spanish owner Bankia is in the process of selling it to Chile’s Banco de Credito e Inversiones.
Earnings Results: It earned $10.3 million in the third quarter, up from earnings of $9.8 million in the second quarter.
Notable: It grew its loans by $64 million, with increases in commercial lines of credit, commercial real estate and home loans. BCI CEO Lionel Olavarría said he will bring organizational support and new products to the $4.8 billion-asset bank once the deal closes.

Sabadell United Bank, Miami
Latin Connection: Owned by Spain’s Banco de Sabadell.
Earnings Results: It had net income of $25.9 million in the third quarter, up from $7 million in the second quarter. Much of that increase came from a non-cash tax gain of $22 million.
Notable: The $3.77 billion-asset bank grew its loans by $96 million, a trend that should continue.

Ocean Bank, Miami
Latin Connection: Many of its shareholders are Venezuelan.
Earnings Results: After revising its financial results for the entire year, it earned $5.5 million in the third quarter, down from $6.9 million in the second quarter.
Notable: The $3.3 billion-asset bank continued its reduction of non-performing assets. It also grew its loans by $33 million. The bank remained in “adequately capitalized” status but its capital ratios improved.

TotalBank, Miami
Latin Connection: A subsidiary of Spanish banking giant Banco Popular Espanol SA.
Earnings Results: It earned $2.3 million in the third quarter, down from earnings of $4.6 million in the second quarter.
Notable: The $2.49 billion-asset bank boosted its loans by $33 million and expects that growth to continue into 2014. By May, it will move its headquarters into the 47-story Miami Tower and place its name atop the building.

BAC Florida Bank, Coral Gables
Latin Connection: Part of Grupo Pellas in Nicaragua.
Earnings Results: The bank earned $2.1 million in the third quarter, up from earnings of $1.96 million in the second quarter.
Notable: Loans grew $11 million as its assets reached $1.37 billion. It specializes in home loans for foreign residents and trade finance.

U.S. Century Bank, Doral
Latin Connection: Founded by Cuban Americans, a group that remains large shareholders.
Earnings Results: It lost $206,000 in the third quarter, improved from a loss of $1.66 million in the second quarter.
Notable: The $938 million-asset bank remained “undercapitalized” but a court ruling improved its chances of closing a recapitalization deal with new investors. Regulatory approval remains outstanding.

Helm Bank USA, Miami
Latin Connection: A subsidiary of Grupo Helm, which owns several banks in Latin America.
Earnings Results: It lost $27,000 in the third quarter, compared to a profit of $9 million in the second quarter. The previous period’s results included a non-cash tax gain of $8.1 million.
Notable: As it dealt with an enforcement action related to its Bank Secrecy Act and anti-money laundering controls, its deposits declined by $33 million during the third quarter to settle at $697 million. Its assets fell by $32 million to $784 million. However, its loans grew by $6 million.

Banesco USA, Coral Gables
Latin Connection: Its main shareholders are also the largest owners of Banesco Banco Universal, the largest bank in Venezuela.
Earnings Results: It had net income of $355,000 in the third quarter, up from $338,000 in the second quarter.
Notable: In the same quarter they ousted its CEO, the bank’s shareholders made a $10 million capital injection. This helped the $807 million-asset bank grow its loans by $10 million.

Espirito Santo Bank, Miami
Latin Connection: A subsidiary of Banco Espirito Santo based in Portugal that deals mostly with foreign clients.
Earnings Results: It earned $643,000 in the third quarter, down from earnings of $755,000 in the second quarter
Notable: Despite its parent bank losing money, the Miami subsidiary grew its loans by $12 million and increased its assets to $732 million.

JGB Bank, Doral
Latin Connection: Owned by Colombian banker Jaime Gilinski Bacal, who owns other banks in Latin America.
Earnings Results: It earned $135,000 in the third quarter, up from earnings of $63,000 in the second quarter.
Notable: Although it had high capital levels, the $542 million-asset bank reduced its loan portfolio by $22 million.

Eastern National Bank, Miami
Latin Connection: It is indirectly controlled by Venezuelan bank regulators.
Earnings Results: The bank earned $1.22 million in the third quarter, up from $562,000 in the second quarter.
Notable: Finally free of all regulatory orders, the bank increased its assets to $381 million.

International Finance Bank, Miami
Latin Connection: A member of Madrid-based Fierro Group, which also owns banks in Curacao, Guatemala City, Caracas, Quito and Lima.
Earnings Results: It had net income of $292,000 in the third quarter, up from $119,000 in the second quarter.
Notable: It recently named Walter Revell, a director of Norwegian Cruise Line, as its chairman. The $345 million-asset bank grew its loans by $8.4 million. While it had good capital levels its noncurrent loan ratio increased to 9.75 percent.

Pacific National Bank, Miami
Latin Connection: Owned by the government of Ecuador, although it has an agreement to be acquired by private U.S. investors.
Earnings Results: It flipped to an $866,000 third quarter profit, compared to a loss of $1.1 million in the second quarter.
Notable: It grew its assets by $10 million to reach $355 million as its loans increased slightly. The bank’s noncurrent loan ratio declined to 2.98 percent.

Continental National Bank of Miami
Latin Connection: Owned by a Cuban American family.
Earnings Results: It had net income of $295,000 in the third quarter, up from $264,000 in the second quarter.
Notable: Co-founder Charles Dascal died in July. Its grew its assets by $11.1 million to reach $332.5 million although its loan were essentially flat. The bank’s noncurrent loan ratio was just 1.16 percent.

Interamerican Bank, Miami
Latin Connection: Designated as a minority-owned (Hispanic) institution.
Earnings Results: It earned $101,000 in the third quarter, down from earnings of $327,000 in the second quarter.
Notable: Its Tier 1 leverage capital ratio of 8.9 percent was just above the 8.5 percent ratio required by regulators in a previous enforcement action to remain “well capitalized.” The $225 million-asset bank had $16 million in noncurrent loans, or 9.2 percent of its total loans, and $7 million in repossessed property.

Sunstate Bank, Miami
Latin Connection: Owned by Brazil’s Banco Sofisa.
Earnings Results: It had net income of $256,000 in the third quarter, down from net income of $1.9 million in the second quarter.
Notable: Its assets declined to $160 million and its loans dipped as well. The bank had a 3.87 percent noncurrent loan ratio and plenty of capital.

Banco do Brasil Americas, Miami
Latin Connection: Owned by Banco do Brasil.
Earnings Results: Loss of $1.2 million in third quarter, better than loss of $1.6 million in second quarter.
Notable: Its parent bank pumped $6 million in capital into it during the third quarter. That allowed it to increase its assets by $22.8 million to reach $111.4 million and loans by $9.4 million to reach $31.8 million. Showing its great potential for more growth, the bank has the highest capital ratios in Florida, according to a review of third quarter results by accounting and consulting firm Saltmarsh, Cleaveland & Gund.

Plus International Bank, Miami
Latin Connection: Owned by the Sacal family, who are Mexican natives, and does mostly international business.
Earnings Results: It had net income of $192,000 in the third quarter, down from $252,000 in the second quarter.
Notable: It is the smallest bank in Miami-Dade County with assets of $90.7 million, although that increased by $9.1 million. Its loans were flat. The bank has plenty of capital to grow and few problem loans.

 

Source: SFBJ