A small South Florida bank is now considered to be undercapitalized after it restated year-to-date results to show a larger loss than first reported.
Security Bank in North Lauderdale announced in October that it lost $5.1 million, but after setting aside additional funds to cover potential loan losses, the bank is now saying it lost $5.6 million, the South Florida Business Journal reported Monday.
That $500,000 difference was enough to drop the $103 million-asset bank from adequately capitalized status to undercapitalized. In its quarterly report to the Federal Deposit Insurance Corp., the bank said its total risk-based capital ratio was 8.09% and its Tier 1 capital ratio was 4.13%, but the restatement lowered the ratios to 7.38% and 3.65%, respectively.
With the revision, the bank says that noncurrent loans now total $16.6 million, or nearly 20% of total loans.