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Sabadell United Bank President and CEO Mario Trueba
Sabadell United Bank boosted its earnings in the second quarter as its loan portfolio expanded by $92 million.
The Miami-based bank is a subsidiary of Spain's Banco Sabadell. Its parent company has a pending deal to acquire the international private banking branch of Lloyds TSB Bank in Miami and make it part of the Sabadell international branch in Miami.
Sabadell United Bank earned $7 million in the second quarter on net interest income of $33.3 million. That's up from first quarter earnings of $6.6 million on net interest income of $32.4 million.
Its loan portfolio increased to $2.24 billion on June 30 from $2.15 billion on March 31. It also added 15 employees, bringing its headcount to 517.
"We are encouraged by our business generation and momentum," Sabadell United Bank President and CEO Mario Trueba said in a news release. "Our pipeline of new opportunities for both the bank and wealth management business is quite sound heading into the second half of the year."
However, things weren't so smooth on the loan quality front. The bank took a $2.2 million expense to reserve for future loan losses and charged off $2.3 million in bad loans.
The noncurrent loan ratio at the bank increased to 6.45 percent on June 30 from 5.92 percent on March 31. Many of its problem loans were covered by a loss-sharing agreement with the Federal Deposit Insurance Corp. because they came from a failed bank. Noncurrent loans with FDIC loss sharing grew to $77.4 million from $68.5 million. Sabadell United's noncurrent loans without such protection increased to $69 million from $60.3 million.
Brian Bandell covers banking, finance, health care and education. Get the latest banking industry news here.
