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HOUSTON, Oct. 29, 2010 (GLOBE NEWSWIRE) -- Encore Bancshares, Inc. (Nasdaq:EBTX) today announced its financial results for the third quarter of 2010.
Texas franchise shows strong growth
Demand deposits grew 49.0% compared with September 30, 2009
Commercial loans grew 5.1% compared with September 30, 2009
Assets under management grew 8.5% compared with September 30, 2009
Florida branch transaction expected to close in the fourth quarter 2010
Loans held for sale of $66.3 million
Deposits held for sale of $187.4 million
Agreement to sell majority of the Florida problem loans
Agreed to sell approximately $25.3 million of Florida loans in a bulk sale
Mark to market charge of $8.5 million recorded in the third quarter 2010
Upon completion of sale, nonperforming loans reduced by $19.8 million
Capital position and credit reserves remain strong
Estimated tier 1 capital of 13.51% and tangible common equity ratio of 6.19%
Allowance for loan losses of 2.27% of loans, excluding loans held for sale
"We believe that we have recognized substantially all of the cost associated with exiting the Florida market," said James S. D'Agostino, Jr., Chairman and Chief Executive Officer of Encore Bancshares, Inc. "We see good opportunities to grow in Houston and we plan to devote all our resources to increasing our franchise and improving profitability."
For the three months ended September 30, 2010, our net loss was $8.4 million, compared with a net loss of $1.8 million for the same period of 2009. Loss per diluted common share for the third quarter of 2010 was $0.79, after deducting preferred dividends, compared with a loss per diluted common share of $0.22 for the same period of 2009. During the third quarter, we marked-to-market certain Florida loans, including those we recently agreed to sell, and repossessed real estate, resulting in a charge of $11.3 million to the allowance for loan losses, a charge to the income statement of $1.0 million for the write down of loans held for sale, and a $2.8 million write down of repossessed real estate. Additionally, we provisioned $9.6 million to the allowance for loan losses.