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- 2013 - February - 21st -

Most local banks look healthier: 5 of 10 lost money in 2012

by Mark Basch, Contributing Writer

Five of the 10 FDIC-insured banks headquartered in the Jacksonville metropolitan area lost money in 2012 but in general, local banks are looking healthier.

According to their year-end financial reports filed with federal regulators, several area banks improved their capital levels last year and also were able to reduce their level of bad loans.

Two banks benefited from major capital infusions from investors last year.

Florida Capital Bank increased its Tier 1 leverage capital ratio from 3.02 percent at the end of 2011 to 5.19 percent as of Dec. 31.

The Jacksonville Bank's capital ratio improved from 6.88 percent to 8.7 percent during the year.

Banking regulators use several different measures of a bank's capital and Tier 1 is the most basic, consisting mainly of the stockholders' equity on the banks' balance sheets. The capital ratio measures capital as a percentage of total assets.

Along with the improved capital, those two banks also were able to significantly reduce their problem loans. Florida Capital's ratio of non-current loans to total loans fell from 8.84 percent at the end of 2011 to 4.61 percent at the end of 2012. Jacksonville Bank's non-current loan ratio dropped from 10.13 percent to 4.73 percent.

A non-current loan is a loan in which the borrower is at least 90 days overdue in payment or is not making payments at all.

While most of the area's banks were able to improve their level of bad loans or at least hold steady in 2012, the one exception is Heritage Bank of North Florida, which is headquartered in Orange Park and has a second branch in Ponte Vedra Beach.

Heritage Bank's non-current loan ratio jumped from 13.61 percent at the end of 2011 to 23.13 percent at the end of 2012.

After posting a net loss of about $1.9 million in 2012, its Tier 1 capital ratio fell from 2.96 percent to 1.75 percent.

Heritage Bank CEO Randolph Knepper did not respond to two voice mail messages this week.

The only other bank reporting a high non-current loan ratio was EverBank at 13.48 percent, but that figure is misleading.

A large number of the bad loans at EverBank are guaranteed by federal government programs, so the bank is not facing losses on those loans.

When parent company EverBank Financial Corp. reported its fourth-quarter financial results last month, it said when adjusted for government-guaranteed loans, its bad loan ratio is only 1.08 percent.

mbasch@baileypub.com

(904) 356-2466

BankAverage assetsNet income/lossCapital to assets ratioNon-current loan ratio
American Enterprise Bank$196,670-$5378.19%6.20%
Atlantic Coast Bank$781,335-$6,3565.13%4.93%
Bank of St. Augustine$177,754$1997.83%4.32%
CBC National Bank$423,003$2,7119.99%3.10%
EverBank$15,129,184$79,9557.98%13.48%
FirstAtlantic Bank$321,636$1,72411.57%3.53%
Florida Capital Bank$723,583-$15,0705.19%4.61%
Heritage Bank of North Fla.$128,450-$1,8741.75%23.13%
Prosperity Bank$775,332$2,5506.85%2.49%
The Jacksonville Bank$567,501-$35,7568.70%4.73%

This chart shows the financial data for all 10 FDIC-insured commercial and savings banks headquartered in the Jacksonville metropolitan area as of Dec. 31, 2012, as reported on their uniform bank performance reports filed with federal regulators.
Dollar figures are in thousands.
Average assets are the average total assets on a bank's balance sheet for 2012.
Net income/loss is the bank's results for the year.
Capital to assets ratio is the bank's tier 1 leverage capital divided by total assets.
Non-current loan ratio is the amount of loans that are 90 days overdue or are not being repaid at all, divided by total loans as of Dec. 31.

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