The Coral Gables-based bank had net income of $509,000 in the first quarter, up from net income of $79,000 in the fourth quarter. One reason why is that the bank’s net interest income jumped to $7.2 million, from $6.4 million.
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Loan growth helped Banesco generate more interest income. The bank had $481.4 million in loans on March 31, up 10.3 percent from $436.3 million in loans on Dec. 31.
Banesco took an $834,000 expense to reserve for future loan losses in the first quarter, improved from a $1.46 million expense in the fourth quarter.
However, problem loans at the bank also grew. It reported $16.4 million in non-current loans, or 3.43 percent of total loans, on March 31, up from $14.1 million in non-current loans, or 3.2 percent, on Dec. 31. Its repossessed property declined over that time to $2.3 million, from $6.2 million.
The bank held $6.3 million in reserve for future loan losses to cover 38 percent of its non-current loans on March 31.
Banesco was the 17th-largest bank based in South Florida on Dec. 31 with $769 million in assets. By March 31, it was up to $775 million in assets.
The bank’s deposits declined to $663 million on March 31, from $680 million on Dec. 31.
