Florida's Most Troubled Banks and Thrifts
05/05/08 - 07:09 AM EDT
Philip van Doorn
Ocala National Bank was third on our list, with a nonperforming assets ratio of 14.50% as of March 31. Reserve coverage was low, at 14.40% of problem loans. The institution reported a net loss of $1.8 million for the first quarter, its third consecutive quarterly loss.
Ocala remained well capitalized with a leverage ratio of 7.03% and a risk-based capital ratio of 10.39%, mainly because its balance sheet has been shrinking. Total assets were $271 million as of March 31, up from $270 million last quarter but way down from $318 million a year ago. In 2007, the institution kept ahead of its loan charge-offs, as net charge-offs totaled $3.2 million, while provisions for loan losses totaled $5.1 million. Things changed in the first quarter of 2008, when net charge-offs totaled $2 million, exceeding provisions for loans losses of $1.5 million. Like so many other Florida banks, it appears Ocala National Bank will also need to raise more capital. First Florida Bank would have been fourth on this list with 11.55% nonperforming assets as of March 31, but the institution's holding company, Synovus Financial Corp. (SNV Quote - Cramer on SNV - Stock Picks), merged it into a larger subsidiary bank, Synovus Bank of Tampa Bay, on April 28. If we combine the numbers for First Florida and Synovus Bank of Tampa Bay as of March 31, we have an institution with $1.7 billion in total assets. Nonperforming assets would have comprised 5.31% total assets and loan loss reserves would have covered 35.88%. The combined institution would be well capitalized, with a leverage ratio of 9.14% and a risk-based capital ratio of 10.52%.
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