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HOUSTON, July 23, 2010 (GLOBE NEWSWIRE) -- Encore Bancshares, Inc. (Nasdaq:EBTX) today announced its financial results for the second quarter of 2010.
Earnings significantly reduced by credit costs associated with exiting Florida
Net commercial loan charge-offs of $13.2 million in the Florida portfolio
Write down of loans held for sale of $2.8 million
Florida legacy commercial loans reduced to $56.2 million
Closed sale of two Florida branches in May, which included $50.5 million in deposits
Final Florida exit transaction remains on track
Loans held for sale of $70.6 million
Deposits held for sale of $184.1 million
Capital position and credit reserves remain strong
Estimated tier 1 capital of 14.59% and tangible common equity ratio of 6.80%
Allowance for loan losses of 2.74% of loans, excluding loans held for sale
Texas franchise shows strong core deposit growth
DDA growth of 17.1%, linked quarter
DDA as a percent of total deposits in Texas grew to 18%
Total Texas deposits top $1.0 billion at June 30, 2010
"We continue to work through our Florida problem loans and to reduce our exposure as rapidly as reasonable. I am pleased that our exit of the Florida market remains on track," said James S. D'Agostino, Jr., Chairman and Chief Executive Officer of Encore Bancshares, Inc. "I am optimistic about the opportunity to continue to build our Houston franchise."
For the three months ended June 30, 2010, our net loss was $12.7 million, compared with net earnings of $821,000 for the same period of 2009. Loss per diluted common share for the second quarter of 2010 was $1.16, after deducting preferred dividends, compared with earnings per diluted common share of $0.02 for the same period of 2009. The loss for the quarter was due primarily to credit costs related to the Florida market.