Bank of Florida has reported second quarter 2009 financial results. As per the results, net interest margin expanded four basis points to 2.97%, compared to 2.93% in the first quarter of 2009. Assets under advice at Bank of Florida Trust company totaled $631 million, an increase of 21% from the first quarter; second quarter provision for loan losses totaled $9.8 million.
Net charge-offs were 3.29% of average loans, down from 3.92% of average loans in the first quarter. Allowance for loan losses of 1.96% to total loans, compared to 1.90% in the first quarter. Nonperforming loans totaled 11.12% of total loans, compared to 8.93% in the first quarter and at the same time nonperforming assets totaled 9.74% of total assets, compared to 7.67% in the first quarter and second quarter net loss of $6.5 million or $0.51 per share.
Michael McMullan, CEO, Bank of Florida, said: “Managing credit quality continues to be our main focus during this difficult economic environment. As projected, our non performing assets increased during the quarter as we continued to aggressively recognize impaired loans based on our on-going process of identifying early signs of stress in our loan portfolio.While we continue to actively evaluate options to sell some of our non performing loans, the discounts through these type transactions remain steep. However, we will continue to monitor our non performing loan levels in conjunction with our capital position and what is in the best interest of our company and its shareholders.”
“During the second quarter, assets under advice increased 21% and we believe this will provide us the opportunity to grow future trust fees as we expect investors to move their positions back into equities as the market stabilizes. We are also taking advantage of the market disruption by bringing in top revenue generating talent in key positions across our franchise. At the same time, we have reduced our administrative headcount, along with certain other operating expenses. These measures, most of which will be fully phased in during the fourth quarter of 2009, are expected to reduce annualized expenses by approximately $4.5 to $5.0 million, which will be slightly offset by increased FDIC insurance and other miscellaneous operating costs,” he added.
