Second Year Switch

Second Year Switch

New banks on the Gulf Coast begin to reverse initial losses.

By Francis X. Gilpin

Associate Editor

Local banks just wrapped up their second quarter. While those financial results trickle in, GCBR reviewed what happened during the first quarter of 2004. The newspaper compared how 76 banks based on the Gulf Coast did versus the same period last year.

There were some big improvements in one key measurement of financial performance, return on equity (ROE). Three of the four biggest gainers in that category were community banks open less than 18 months.

In the Tampa Bay area, The Palm Bank eked out a $1,000 profit, the first quarterly profit in its short history. The $52 million-asset South Tampa bank, which opened in February of last year, lost $626,000 during the first three months of 2003.

"It wasn't much," Palm Bank President and Chief Executive Albert C. Anderson says of the profit. "But black is black."

The Bank of Venice was still in the red for the first quarter of this year. But the Venice bank cut the quarterly loss by more than 75%. Open about a month longer than The Palm Bank, The Bank of Venice is expected to start showing a profit sometime in the last quarter of 2004, according to David Voigt, president and chief executive of the $28 million-asset bank.

Farther south, Sanibel Captiva Community Bank showed the most impressive ROE improvement, strictly from a basis-point perspective. Opened a year ago in January, the bank reported a $157,000 profit for the first quarter of this year. That compared with a 2003 loss of $412,000.

At $78 million in assets, Sanibel Captiva Community Bank has grown faster than the other two de novo banks. But it is owned by Southwest Florida Community Bancorp Inc., which creates cross-promotional opportunities. The holding company also owns First Community Bank of Southwest Florida, with $159 million in assets, which was founded five years ago in Fort Myers.

Despite a good interest-rate climate for banks in recent years, Palm Bank's Anderson says he and his de novo competitors are like any new business that needs time to build momentum. For instance, Anderson says it takes four months for Palm Bank to make back its higher-than-required reserve for loan loss on a $100,000 commitment.

"When I go out and get business, I'm losing money," says Anderson, chuckling. For a while. Anderson expects Palm Bank to turn a profit for 2004.

Voigt says The Bank of Venice is doing about as well as he'd expected when he did his financial projections in 2002, prior to opening last year. "We did better in the first quarter and that was expected," he says of 2004 so far.

Two years ago, Voigt says he thought interest rates would be higher than they are now. That miscalculation, due to the slow economic recovery and the patience of the Federal Reserve Bank on the inflation watch, has caused The Bank of Venice's income and expense items to run a bit behind projections, says Voigt. Asset and deposit growth is ahead of schedule, says Voigt.

The fourth bank showing dramatic ROE improvement, Community National Bank of Pasco County, was aided by the February sale of two of its branches in Lake County. The divestiture gave the Centerstate Banks of Florida Inc. unit an additional $1.8 million in sale proceeds and a six-fold jump in net income for the first quarter.

Setting aside the distorted results for Zephyrhills-based Community National, two Bay area banks reported the highest returns on equity for the quarter. Both operate as subchapter-S corporations, which don't have to pay income tax if profits pass through directly to 75 or fewer shareholders.

Employee-owned Community National Bank of Sarasota County in Venice had an ROE of 27.2% for the first three months of this year. Seminole's First Home Bank, a unit of First Home Bancorp Inc., had an ROE of 26%.

Among C-corporation banks, two in Collier County showed well. Florida Community Bank, an Immokalee unit of Florida Community Banks Inc., returned 21.8% on equity. Community Bank of Naples, which is owned by Alabama National Bancorporation, returned 20%.

Next-best C-corps were Century Bank, a Sarasota thrift with an ROE of 18.6% and Orion Bank at 17.6%.

While Orion's ROE dipped a bit compared to the same time last year, it was still the second most profitable bank on the Gulf Coast. The Naples-based unit of Orion Bancorp Inc. reported net income of $3.5 million for the quarter.

That was second only to First National Bank of Florida.

The Naples bank rang up the biggest profit on the Gulf Coast for the first quarter. The First National Bankshares of Florida Inc. bank earned $9.5 million.

First National Bank of Florida's quarterly profit represented nearly 25% of the total earnings for all 76 Gulf Coast banks combined. Among the group, the average profit per bank was $542,000 for the quarter.

Tampa Bay area-based banks and thrifts

First quarter results ($ in 000s; ratios in %) Return on assets

Bank CityAssets20032004Change

Republic BankSt. Petersburg$2,904,1000.420.30-0.12

Florida Bank, National AssociationTampa$986,6870.760.45-0.31

Raymond James Bank, FSBSt. Petersburg$866,7200.550.680.13

The Bank of TampaTampa$644,1220.860.59-0.27

United Bank and Trust CompanySt. Petersburg$455,5750.630.990.36

Premier Community Bank of FloridaLargo$364,6141.301.18-0.12

Peoples BankPalm Harbor$335,6181.310.78-0.53

Madison BankPalm Harbor$215,1551.210.94-0.27

First Community Bank of AmericaSt. Petersburg$203,0710.870.950.08

Platinum BankBrandon$202,3631.001.270.27

Community National Bank of Pasco CountyZephyrhills$183,5610.502.962.46

Sunshine State Federal Savings and Loan AssociationPlant City$181,2600.560.55-0.01

Bay Cities BankTampa$171,3080.960.55-0.41

Cornerstone Community BankSt. Petersburg$146,4420.910.81-0.10

Terrace BankTampa$136,9780.620.820.20

Signature BankSt. Petersburg$130,0970.570.36-0.21

Valrico State BankValrico$127,3301.051.270.22

First Commercial Bank of Tampa BayTampa$126,7100.210.380.17

First Citrus BankTampa$126,2780.410.13-0.28

Bank of St. PetersburgSt. Petersburg$115,9490.56-1.71-2.27

Bay Financial Savings Bank, F.S.B.Tampa$112,7371.370.89-0.48

Heritage Bank of FloridaLutz$92,8180.711.020.31

TCM Bank, National AssociationTampa$89,2230.210.570.36

First National Bank of PascoDade City$87,1340.731.050.32

First Home BankSeminole$69,6371.722.360.64

Southern Commerce BankTampa$64,257-0.470.140.61

Century Bank of FloridaTampa$63,4080.370.780.41

Hillsboro BankPlant City$63,3281.111.310.20

The Palm BankTampa$51,864-16.210.0116.22

GulfStream Community BankPort Richey$43,2790.230.400.17

Old Harbor BankClearwater$37,728-1.33

First National BankTarpon Springs$25,9200.080.390.31

Members Trust CompanyTampa$18,243-7.40

Source: GCBR analysis of

Federal Deposit Insurance Corp. data

Tampa Bay area-based banks and thrifts

First quarter results ($ in 000s; ratios in %) Return on equity

BankCityNet income20032004 Change

Republic BankSt. Petersburg$2,1334.643.74-0.90

Raymond James Bank, FSBSt. Petersburg$1,4567.418.090.68

Community National Bank of Pasco CountyZephyrhills$1,4438.3940.9632.57

United Bank and Trust CompanySt. Petersburg$1,1058.205.24-2.96

Premier Community Bank of FloridaLargo$1,08415.6613.80-1.86

Florida Bank, National AssociationTampa$1,0779.235.28-3.95

The Bank of TampaTampa$94511.978.41-3.56

Platinum BankBrandon$61912.8016.924.12

Peoples BankPalm Harbor$57318.824.67-14.15

Madison BankPalm Harbor$49513.9810.54-3.44

First Community Bank of AmericaSt. Petersburg$45511.2011.640.44

First Home BankSeminole$40318.7226.037.31

Valrico State BankValrico$39614.0615.351.29

Cornerstone Community BankSt. Petersburg$2897.608.430.83

Terrace BankTampa$2777.9110.752.84

Bay Financial Savings Bank, F.S.B.Tampa$2527.054.83-2.22

Sunshine State Federal Savings and Loan AssociationPlant City$2495.114.87-0.24

First National Bank of PascoDade City$2239.3313.053.72

Bay Cities BankTampa$22311.006.89-4.11

Heritage Bank of FloridaLutz$2229.3110.321.01

Hillsboro BankPlant City$2047.929.871.95

TCM Bank, National AssociationTampa$1291.864.973.11

Century Bank of FloridaTampa$1172.165.673.51

First Commercial Bank of Tampa BayTampa$1122.825.252.43

Signature BankSt. Petersburg$1075.264.14-1.12

GulfStream Community BankPort Richey$411.883.781.90

First Citrus BankTampa$414.411.02-3.39

First National BankTarpon Springs$250.833.302.47

Southern Commerce BankTampa$20-5.540.866.40

The Palm BankTampa$1-28.560.0428.60

Old Harbor BankClearwater-$113-6.46

Members Trust CompanyTampa-$261-7.80

Bank of St. PetersburgSt. Petersburg-$4553.26-9.42-12.68

Source: GCBR analysis of

Federal Deposit Insurance Corp. data

Gulf Coast-based banks and thrifts

First quarter results ($ in 000s; ratios in %) Return on assets

BankCityAssets 2003 2004 Change

First National Bank of FloridaNaples$3,970,6511.170.99-0.18

Republic BankSt. Petersburg$2,904,1000.420.30-0.12

IronStone BankFort Myers$1,249,5130.02-0.01-0.03

Orion BankNaples$1,029,0421.511.44-0.07

Florida Bank, National AssociationTampa$986,6870.760.45-0.31

Gold BankBradenton$897,2750.530.750.22

Raymond James Bank, FSBSt. Petersburg$866,7200.550.680.13

The Bank of TampaTampa$644,1220.860.59-0.27

Florida Community BankImmokalee$564,9321.642.120.48

United Bank and Trust CompanySt. Petersburg$455,5750.630.990.36

Century Bank, a Federal Savings BankSarasota$431,1241.061.180.12

Premier Community Bank of FloridaLargo$364,6141.301.18-0.12

Peninsula BankEnglewood$348,1901.401.22-0.18

Peoples BankPalm Harbor$335,6181.310.78-0.53

Coast Bank of FloridaBradenton$303,6080.280.11-0.17

1st National Bank & TrustBradenton$298,1591.130.94-0.19

Riverside Bank of the Gulf CoastCape Coral$283,3591.280.95-0.33

Pelican National BankNaples$270,2850.70-0.08-0.78

Community Bank of Naples, National AssociationNaples$265,9381.581.54-0.04

First State BankSarasota$223,3960.540.830.29

Madison BankPalm Harbor$215,1551.210.94-0.27

First Community Bank of AmericaSt. Petersburg$203,0710.870.950.08

Platinum BankBrandon$202,3631.001.270.27

Bank of Florida, A National AssociationNaples$197,9921.940.18-1.76

First Florida BankNaples$196,8541.010.96-0.05

Community National Bank of Pasco CountyZephyrhills$183,5610.502.962.46

Englewood BankEnglewood$183,3840.880.52-0.36

Old Florida BankFort Myers$181,7380.400.14-0.26

Sunshine State Federal Savings and Loan AssociationPlant City$181,2600.560.55-0.01

Southern Community Bank of Southwest FloridaBonita Springs$180,0120.670.740.07

Bay Cities BankTampa$171,3080.960.55-0.41

The Bank of CommerceSarasota$169,6290.310.740.43

First Community Bank of Southwest FloridaFort Myers$159,0731.851.24-0.61

Charlotte State BankPort Charlotte$158,5101.551.53-0.02

Florida Gulf BankFort Myers$148,1120.130.430.30

Cornerstone Community BankSt. Petersburg$146,4420.910.81-0.10

LandMark Bank of FloridaSarasota$143,2180.490.510.02

People's Community Bank of the West CoastSarasota$142,7750.280.280.00

Community Bank of ManateeBradenton$139,7550.470.600.13

Edison National BankFort Myers$137,8310.320.420.10

Terrace BankTampa$136,9780.620.820.20

Premier Community BankVenice$133,6190.800.810.01

Signature BankSt. Petersburg$130,0970.570.36-0.21

Valrico State BankValrico$127,3301.051.270.22

First Commercial Bank of Tampa BayTampa$126,7100.210.380.17

First Citrus BankTampa$126,2780.410.13-0.28

Tarpon Coast National BankPort Charlotte$125,8760.670.57-0.10

Busey Bank FloridaFort Myers$116,793-0.320.821.14

Bank of St. PetersburgSt. Petersburg$115,9490.56-1.71-2.27

Bay Financial Savings Bank, F.S.B.Tampa$112,7371.370.89-0.48

Flagship National BankBradenton$102,9340.690.55-0.14

Horizon BankBradenton$101,1040.200.490.29

United Bank of the Gulf CoastSarasota$99,8920.020.00-0.02

Manatee River Community BankPalmetto$99,5140.500.840.34

Community National Bank of Sarasota CountyVenice$99,0921.912.070.16

Heritage Bank of FloridaLutz$92,8180.711.020.31

TCM Bank, National AssociationTampa$89,2230.210.570.36

Suncoast BankSarasota$87,8240.050.310.26

First National Bank of PascoDade City$87,1340.731.050.32

Sanibel Captiva Community BankSanibel$77,615-3.900.884.78

Bank of NaplesNaples$75,6170.391.030.64

The Royal Palm Bank of FloridaNaples$74,174-1.09-0.210.88

First Home BankSeminole$69,6371.722.360.64

Southern Commerce BankTampa$64,257-0.470.140.61

Century Bank of FloridaTampa$63,4080.370.780.41

Hillsboro BankPlant City$63,3281.111.310.20

Premier Community Bank of Southwest FloridaFort Myers$62,3390.23-0.95-1.18

First Bradenton BankBradenton$60,4980.811.020.21

The Palm BankTampa$51,864-16.210.0116.22

Marco Community BankMarco Island$48,080-1.77

GulfStream Community BankPort Richey$43,2790.230.400.17

Old Harbor BankClearwater$37,728-1.33

First Priority BankBradenton$34,819-5.40

The Bank of VeniceVenice$28,378-11.63-1.4310.20

First National BankTarpon Springs$25,9200.080.390.31

Members Trust CompanyTampa$18,243-7.40

Source: GCBR analysis of

Federal Deposit Insurance Corp. data

Gulf Coast-based banks and thrifts

First quarter results ($ in 000s; ratios in %)Return on equity

BankCityNet income20032004 Change

First National Bank of FloridaNaples$9,53912.929.68-3.24

Orion BankNaples$3,54119.9117.59-2.32

Florida Community BankImmokalee$2,89018.9421.852.91

Republic BankSt. Petersburg$2,1334.643.74-0.90

Gold BankBradenton$1,6017.3110.713.40

Raymond James Bank, FSBSt. Petersburg$1,4567.418.090.68

Community National Bank of Pasco CountyZephyrhills$1,4438.3940.9632.57

Century Bank, a Federal Savings BankSarasota$1,24516.2418.622.38

United Bank and Trust CompanySt. Petersburg$1,1058.205.24-2.96

Premier Community Bank of FloridaLargo$1,08415.6613.80-1.86

Florida Bank, National AssociationTampa$1,0779.235.28-3.95

Peninsula BankEnglewood$1,04216.1015.32-0.78

Community Bank of Naples, National AssociationNaples$97321.8420.31-1.53

The Bank of TampaTampa$94511.978.41-3.56

1st National Bank & TrustBradenton$67512.5711.80-0.77

Riverside Bank of the Gulf CoastCape Coral$66516.4712.02-4.45

Platinum BankBrandon$61912.8016.924.12

Charlotte State BankPort Charlotte$58917.6018.721.12

Peoples BankPalm Harbor$57318.824.67-14.15

Community National Bank of Sarasota CountyVenice$49525.4527.161.71

Madison BankPalm Harbor$49513.9810.54-3.44

First Community Bank of AmericaSt. Petersburg$45511.2011.640.44

First Community Bank of Southwest FloridaFort Myers$45524.4015.04-9.36

First State BankSarasota$4547.4511.313.86

First Florida BankNaples$44012.709.73-2.97

First Home BankSeminole$40318.7226.037.31

Valrico State BankValrico$39614.0615.351.29

Southern Community Bank of Southwest FloridaBonita Springs$3178.288.14-0.14

The Bank of CommerceSarasota$2922.738.986.25

Cornerstone Community BankSt. Petersburg$2897.608.430.83

Terrace BankTampa$2777.9110.752.84

Premier Community BankVenice$26312.2511.38-0.87

Bay Fin_ncial Savings Bank, F.S.B.Tampa$2527.054.83-2.22

Sunshine State Federal Savings and Loan AssociationPlant City$2495.114.87-0.24

Busey Bank FloridaFort Myers$237-2.268.0810.34

First National Bank of PascoDade City$2239.3313.053.72

Bay Cities BankTampa$22311.006.89-4.11

Heritage Bank of FloridaLutz$2229.3110.321.01

Englewood BankEnglewood$21911.414.88-6.53

Community Bank of ManateeBradenton$2087.038.391.36

Hillsboro BankPlant City$2047.929.871.95

Manatee River Community BankPalmetto$2026.6811.544.86

Bank of NaplesNaples$1874.1913.018.82

Tarpon Coast National BankPort Charlotte$1768.697.36-1.33

LandMark Bank of FloridaSarasota$1754.937.372.44

Sanibel Captiva Community BankSanibel$157-26.729.6236.34

Florida Gulf BankFort Myers$1471.115.474.36

First Bradenton BankBradenton$1468.5512.053.50

Edison National BankFort Myers$1384.776.812.04

Flagship National BankBradenton$1379.528.34-1.18

TCM Bank, National AssociationTampa$1291.864.973.11

Horizon BankBradenton$1173.157.194.04

Century Bank of FloridaTampa$1172.165.673.51

First Commercial Bank of Tampa BayTampa$1122.825.252.43

Signature BankSt. Petersburg$1075.264.14-1.12

People's Community Bank of the West CoastSarasota$923.263.02-0.24

Bank of Florida, A National AssociationNaples$8326.962.53-24.43

Coast Bank of FloridaBradenton$803.281.33-1.95

Suncoast BankSarasota$670.663.602.94

Old Florida BankFort Myers$593.671.12-2.55

GulfStream Community BankPort Richey$411.883.781.90

First Citrus BankTampa$414.411.02-3.39

First National BankTarpon Springs$250.833.302.47

Southern Commerce BankTampa$20-5.540.866.40

The Palm BankTampa$1-28.560.0428.60

United Bank of the Gulf CoastSarasota$00.210.00-0.21

IronStone BankFort Myers-$260.17-0.06-0.23

The Royal Palm Bank of FloridaNaples-$35-5.75-1.604.15

Pelican National BankNaples-$509.41-1.35-10.76

The Bank of VeniceVenice-$94-25.13-6.3918.74

Old Harbor BankClearwater-$113-6.46

Premier Community Bank of Southwest FloridaFort Myers-$1442.16-10.97-13.13

Marco Community BankMarco Island-$170-11.81

Members Trust CompanyTampa-$261-7.80

First Priority BankBradenton-$310-15.42

Bank of St. PetersburgSt. Petersburg-$4553.26-9.42-12.68

Source: GCBR analysis of

Federal Deposit Insurance Corp. data

Banks and thrifts based in Manatee and Sarasota counties

First quarter results ($ in 000s; ratios in %) Return on assets

Bank CityAssets20032004Change

Gold BankBradenton$897,2750.530.750.22

Century Bank, a Federal Savings BankSarasota$431,1241.061.180.12

Coast Bank of FloridaBradenton$303,6080.280.11-0.17

1st National Bank & TrustBradenton$298,1591.130.94-0.19

First State BankSarasota$223,3960.540.830.29

The Bank of CommerceSarasota$169,6290.310.740.43

LandMark Bank of FloridaSarasota$143,2180.490.510.02

People's Community Bank of the West CoastSarasota$142,7750.280.280.00

Community Bank of ManateeBradenton$139,7550.470.600.13

Premier Community BankVenice$133,6190.800.810.01

Flagship National BankBradenton$102,9340.690.55-0.14

Horizon BankBradenton$101,1040.200.490.29

United Bank of the Gulf CoastSarasota$99,8920.020.00-0.02

Manatee River Community BankPalmetto$99,5140.500.840.34

Community National Bank of Sarasota CountyVenice$99,0921.912.070.16

Suncoast BankSarasota$87,8240.050.310.26

First Bradenton BankBradenton$60,4980.811.020.21

First Priority BankBradenton$34,819-5.40

The Bank of VeniceVenice$28,378-11.63-1.4310.20

Source: GCBR analysis of

Federal Deposit Insurance Corp. data

Banks and thrifts based in Manatee and Sarasota counties

First quarter results ($ in 000s; ratios in %)Return on equity

BankCityNet income20032004Change

Gold BankBradenton$1,6017.3110.713.40

Century Bank, a Federal Savings BankSarasota$1,24516.2418.622.38

1st National Bank & TrustBradenton$67512.5711.80-0.77

Community National Bank of Sarasota CountyVenice$49525.4527.161.71

First State BankSarasota$4547.4511.313.86

The Bank of CommerceSarasota$2922.738.986.25

Premier Community BankVenice$26312.2511.38-0.87

Community Bank of ManateeBradenton$2087.038.391.36

Manatee River Community BankPalmetto$2026.6811.544.86

LandMark Bank of FloridaSarasota$1754.937.372.44

First Bradenton BankBradenton$1468.5512.053.50

Flagship National BankBradenton$1379.528.34-1.18

Horizon BankBradenton$1173.157.194.04

People's Community Bank of the West CoastSarasota$923.263.02-0.24

Coast Bank of FloridaBradenton$803.281.33-1.95

Suncoast BankSarasota$670.663.602.94

United Bank of the Gulf CoastSarasota$00.210.00-0.21

The Bank of VeniceVenice-$94-25.13-6.3918.74

First Priority BankBradenton-$310-15.42

Source: GCBR analysis of

Federal Deposit Insurance Corp. data