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Mark Freerks
Anchor Commercial Bank hopes to be "well capitalized" by the end of 2013.
Anchor Commercial Bank bettered its loan quality in the third quarter as the "significantly undercapitalized" bank awaited a capital injection from a Bolivian businessman.
The Juno Beach-based bank had $8.2 million in noncurrent loans, or 11.37 percent of total loans, on Sept. 30, down from $10.3 million, or 13.81 percent, on June 30. Its holdings of repossessed property decreased slightly, to $3.6 million.
It held $2.1 million to reserve for future loan losses on Sept. 30 to cover 26 percent of its noncurrent loans. Most banks maintain a coverage ratio above 50 percent to protect them from bumps in the economy.
While the bank grew its earnings to $39,000 in the third quarter from $10,000 in the second quarter, it remained "significantly undercapitalized" on Sept. 30 with a Tier 1 leverage capital ratio of 2.47 percent and a total risk-based capital ratio of 4.79 percent.
On Sept. 30, regulators approved the application of Guido E. Hinojosa Cardoso, of La Paz, Bolivia, to inject $5 million in capital to the bank. Existing shareholders pledged additional funds with the goal of making the bank "well capitalized." It didn't receive that money by Sept. 30.
However, Anchor Commercial Bank President John Oliver said the bank received $4.55 million in capital, before expenses, on Oct. 4 and expects to get an additional $1.5 million before the end of the year. The bank was "adequately capitalized" on Oct. 31 and would be "well capitalized" on Dec. 31 after receiving the additional funds, he added.
Anchor Commercial Bank finished the third quarter with $99.4 million in assets, $96.3 million in deposits and $69.8 million in loans. All of those were down from the previous quarter.
Brian Bandell covers banking, finance, health care and education. Get the latest banking industry news here.
