Bank of Miami said Wednesday that it has gained more than $11 million of capital this quarter.
The $608 million-asset bank in Coral Gables, Fla., said it sold $2.5 million of trust-preferred securities in a private placement with its shareholders and realized a $9 million tax benefit.
Though well capitalized, the bank has been under capital pressure because of rising losses, mostly on construction and development loans. Its total risk-based capital ratio shrank to 10.98% at Sept. 30, from 18.77% a year earlier, according to data from the Federal Deposit Insurance Corp.
Bank of Miami did not specify how much its capital infusion would increase this ratio.
After charging off 4.93% of its loans, the bank reported a $29.4 million third-quarter loss, compared with a $3.6 million loss a year earlier, the FDIC data showed. Still, it classified 19.12% of the remaining loans as noncurrent, up from 6.21% a year earlier.
Alba M. Prestamo, the bank's acting president and chief executive officer, said in a press release that the trust-preferred investment demonstrated "continued confidence" from shareholders.
The $9 million tax benefit comes under the Worker, Homeownership and Business Assistance Act of 2009. This law, enacted Nov. 6, allows businesses to carry back losses from either last year or this year to offset federal income taxes paid on profits from the preceding five years.
The parent company of Bank of Miami is Granvalor Holding Ltd.
