Bank of Florida Corp. in Naples posted its third consecutive quarterly loss Tuesday on another spike in nonperforming loans and chargeoffs.
The $1.6 billion-asset company lost $4.4 million, compared with a $233,000 profit the year earlier.
Michael L. McMullan, the chief executive officer, said in a press release that Bank of Florida would like to sell some of its nonperforming loans but not for the "significant discounts" being demanded by bidders. At the end of the quarter, 8.93% of its loans were nonperforming, up from 5.63% at yearend.
"We do believe there are certain loans which are candidates for a potential bulk sale at some point in the near future," McMullan said. "However, there are others that we consider to be secured with attractive real estate," so the company prefers to work out those loans individually.
McMullan said a strong ratio of tangible common equity to tangible assets — 8.08% — would let Bank of Florida take its time dealing with the nonperformers.
The loan-loss provision shot up 874% from a year earlier but fell 139% from the fourth quarter, to $6.7 million. Net chargeoffs increased 318 basis points from a year earlier and 366 basis points from the fourth quarter, to 3.92% of average loans.
