Bank of Coral Gables Still Needs Capital
January 31, 2011 Leave a comment
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.