Bank of Coral Gables Still Needs Capital

A $2 million capital infusion from its shareholders made up for a fourth quarter loss at Bank of Coral Gables, but the contribution was not enough to help the bank regain “well capitalized” status.

The $152 million-asset bank remained “adequately capitalized” because it could not meet the higher capital ratio requirements that regulators imposed on the bank in a March 2010 enforcement action.

The bank improved its Tier 1 capital ratio to 6.29 percent as of Dec. 31, from 6.67 percent as of Sept. 30. Its total risk-based capital ratio improved to 10.75 percent from 10.34 percent. However, regulators demanded that those ratios reach 8 percent and 12 percent, respectively.

If it wants to be considered a “well capitalized” bank and avoid further regulatory action, it looks like Bank of Coral Gables needs to bring in a larger piece of capital.

via Capital infusion not enough for Bank of Coral Gables | South Florida Business Journal.