Bank of Florida Corp. in Naples, which is under regulatory pressure to raise capital, has postponed a $135 million stock offering, saying market conditions have deteriorated.
Michael L. McMullan, the $1.5 billion-asset company's president and chief executive officer, said late Thursday that investors have become more scarce because of unexpected third-quarter losses reported by Florida banking companies that recently raised capital.
McMullan said Bank of Florida would look for other ways to add capital, but he did not provide specifics.
The three-bank holding company had announced the offering Nov. 5. It intended to use $71 million of the proceeds to boost the capital ratios at its subsidiaries, as required under regulatory agreements. It also planned to buy back preferred shares.
The three bank units, like the company itself, were considered adequately capitalized at the end of the third quarter. The company had a total risk-based capital ratio of 9.28%, which is below the 10% level needed to qualify as well capitalized.
It lost $78 million in the third quarter, compared with a $3.4 million loss in the year-earlier quarter. The provision for loan losses roughly quadrupled, to $25 million, as nonperforming assets climbed to 10.79% of total assets.
Bank of Florida's stock fell 26% on the news Friday, to close at 74 cents.