CORAL GABLES, Fla., Jan. 30, 2008 (PRIME NEWSWIRE) -- Great Florida Bank (Nasdaq:GFLB) today reported net income for the fourth quarter 2007 of $153 thousand, or $0.01 per share, compared to $1.2 million, or $0.09 per share, for the fourth quarter 2006. On a pre-tax basis, the Bank earned $1.3 million for fiscal year 2007 compared to $3.5 million for the prior year. The Bank also reported total assets of $1.8 billion at December 31, 2007, up 17.8% compared to the same quarter last year. Total assets remained flat when compared to the September 2007 quarter.
"Great Florida Bank completed its third full-year of operations and posted its second full-year of profitable performance in spite of declining market conditions," stated Mehdi Ghomeshi, Great Florida Bank's Chairman and CEO. "The volatility of the credit, liquidity and housing markets certainly affected our performance during 2007. In addition, complying with the FDIC Order relating to BSA, which has affected many banks, contributed to a significant increase in non-interest expenses. As we begin 2008, we will focus on mitigating credit risk, managing expenses and executing our business model."
Non-interest expense was $10.4 million for the fourth quarter 2007, a slight decrease compared to the preceding quarter, and up 20.2% compared to the fourth quarter 2006. Non-interest expense for fiscal year 2007 totaled $41.1 million, a 32% increase compared to fiscal year 2006. This fiscal year increase is attributed to several factors including incremental costs of $3.2 million associated with complying with the FDIC Order, issued in November 2006 related to the Bank Secrecy Act. These costs consisted of recurring expenses in employee compensation and benefits from expanding the BSA department, as well as, non-recurring expenses for third party services.
In addition, non-interest expenses were up this fiscal year as the Bank absorbed costs associated with operating ten additional Solution Centers opened during 2006 and first quarter 2007, and a significant increase in the FDIC insurance premium charged to all banks in 2007. As of year-end 2007, the Bank had 21 Solution Centers located throughout Miami-Dade and Broward counties and 228 associates.
Total net loans outstanding were $1.3 billion for fourth quarter 2007, a 2.8% increase compared to the preceding quarter, and a 9.6% increase compared to fourth quarter 2006. Both the quarterly and yearly increases reflect modest growth in residential mortgages, home equity loans, and loans secured by commercial real estate, which was by design due to existing market conditions.
Total deposits were $993.4 million for fourth quarter 2007, compared to $1.0 billion the preceding quarter and $998.4 million for fourth quarter 2006. While total deposits declined slightly on a quarterly and yearly basis, this was expected because of a strategic decision by the Bank's management to reduce brokered deposit balances and not match unprofitable rates offered by some competitors during the quarter.
Credit quality indicators have deteriorated from levels that were more favorable in 2006, and continuing weakness in the housing and credit markets has resulted in rising credit risk. Non-performing loans totaled $21.5 million, or 1.19% of total assets at the end of fourth quarter 2007, compared to $21.4 million, or 1.18% of total assets at the end of the preceding quarter and $9.9 million, or 0.65% of total assets at the end of fourth quarter 2006. For the full year, net loan charge offs totaled $2.2 million, or 0.17% of total loans outstanding, of which $1.3 million occurred during fourth quarter 2007, compared to net loan charge offs of $709 thousand, or 0.06% of total loans outstanding a year ago. Delinquent loans totaled $9.9 million, or 0.77% of total loans outstanding, at the end of fourth quarter 2007, compared to $4.8 million, or 0.38% of total loans outstanding, at the end of the preceding quarter, and $1.6 million, or 0.14% of total loans outstanding, at the end of fourth quarter 2006. The provision for loan losses was $1.6 million in fourth quarter 2007, compared to $1.0 million in the preceding quarter and $1.1 million in fourth quarter 2006. At December 31, 2007, the allowance for losses was $21.8 million, or 1.71% of total loans outstanding, compared to $20.1 million, or 1.73% of total loans outstanding at December 31, 2006.
At December 31, 2007, Great Florida Bank's Tier 1 Leverage ratio (Tier 1 Capital divided by Average Total Assets) was 10.96%, or 119% above the Federal regulatory definition of a 'Well Capitalized Bank'. The Bank's total Risk Based Capital ratio (Total Risk Based Capital divided by risk Weighted Assets) was 14.12%, or 41% above the Federal regulatory definition of a 'Well Capitalized Bank'.
ABOUT GREAT FLORIDA BANK
Established in June 2004, Great Florida Bank reported total assets of $1.8 billion on December 31, 2007. The corporate headquarters is located in Coral Gables, Florida and 21 Solution Centers are located throughout Miami-Dade and Broward Counties. The Bank is committed to providing ideas and solutions to its customers' financial needs by conveniently delivering personalized, state-of-the-art products and services in a relaxed environment. For further information, visit our website at www.greatfloridabank.com or call 866-514-6900.
Great Florida Bank
Selected Financial Highlights (unaudited)
December 31, 2007
(In Thousands except share/per share information)
At and for the period ended December 31,
Increase/
2007 2006 (Decrease)
---------- ---------- --------
Results of Operations:
Interest Income on Loans 89,341 75,274 14,067
Interest Income on Investment
and Other Assets 10,618 3,126 7,492
---------- ----------
Total Interest Income 99,959 78,400 21,559
Interest Expense on Deposits 43,684 32,397 11,287
Interest Expense on Borrowings 11,956 3,507 8,449
---------- ----------
Total Interest Expense 55,640 35,904 19,736
Net Interest Income $ 44,319 $ 42,496 $ 1,823
Noninterest Income $ 1,977 $ 1,349 $ 628
Employee Compensation 20,137 16,967 3,170
Occupancy Expense 8,326 5,630 2,696
Professional and Consulting 5,084 2,968 2,116
Other Expenses 7,568 5,590 1,978
Noninterest Expense $ 41,115 $ 31,155 $ 9,960
Provision for loan losses 3,854 9,224 (5,370)
Pretax Income (Loss) 1,327 3,466 (2,139)
Provision for income tax
expense (benefit) 468 (2,618) 3,086
Net Income (Loss) $ 859 $ 6,084 $ (5,225)
Net earnings (loss) per
common share - basic 0.07 0.47 (0.40)
Net earnings (loss) per
common share - diluted 0.07 0.46 (0.39)
Period End Data:
Total Assets $1,809,365 $1,535,981 $273,384
Total Securities 250,095 58,706 191,389
Commercial Real Estate
Secured Loans 217,071 181,355 35,716
Commercial Loans 131,404 158,206 (26,802)
Residential Real Estate
Secured Loans 476,991 366,275 110,716
Non Accrual Loans 21,481 9,913 11,568
Loans before Allowance for
Loan Losses 1,276,457 1,164,863 111,594
Allowance for loan losses 21,787 20,141 1,646
Loans, Net 1,254,670 1,144,722 109,948
Noninterest bearing
demand deposits 86,528 105,732 (19,204)
Interest bearing demand deposits 19,483 24,886 (5,403)
Money Market, Savings and
Time Deposits 815,205 760,894 54,311
Brokered Deposits 72,155 106,939 (34,784)
Total Deposits 993,371 998,451 (5,080)
Advances from FHLB 520,000 290,000 230,000
Other borrowings 116,005 69,856 46,149
Tangible equity 170,059 168,649 1,410
Shareholders' equity 172,448 168,625 3,823
Shares outstanding 13,112,500 13,112,500 --
Book value per share 13.15 12.86 0.29
Key Ratios:
Return on average assets 0.06% 0.57% -0.51%
Return on average equity 0.50% 3.68% -3.18%
Net interest margin 3.22% 4.07% -0.85%
Average earning assets/total
assets 97.13% 97.92% -0.79%
Average earning loans/deposits 121.74% 120.57% 1.17%
Average noninterest
deposits/total deposits 9.83% 12.66% -2.83%
Nonaccruing loans/total gross
loans 1.68% 0.85% 0.83%
Allowance for loan losses/period
end loans 1.71% 1.73% -0.02%
Shareholders' equity to period
end total assets 9.53% 10.98% -1.45%
Tangible Equity to period end
total assets 9.40% 10.98% -1.58%