Bank in Jacksonville makes most profitable list

(Courtesy of Jacksonville Business Journal)

BankUnited once again becomes the most profitable bank in the state of Florida, despite its profit declining from the previous quarter.

The Miami Lakes-based bank reported a profit in the first quarter in 2017 of $66.2 million, moving ahead of Raymond James Bank, which had been the most profitable bank in Florida for the previous two quarters, according to a report released this week by the Federal Deposit Insurance Corp.

Jacksonville-based EverBank came in third on the list.

BankUnited’s (NYSE: BKU) first quarter profit declined to $66.2 million from $67 million in the previous quarter, while Raymond James Bank declined to $59.3 million from $68.1 million during the same time period. Raymond James Bank is a subsidiary of Raymond James Financial Inc. (NYSE: RJF) in St. Petersburg.

The data released by the FDIC also showed that three of the five most profitable banks in Florida are based in South Florida.

Nationwide, commercial banks and savings institutions insured by the FDIC reported aggregate net income of $44 billion in the first quarter of 2017, up 12.7 percent or $5 billion from a year earlier. The nationwide increase in earnings was largely due to a 7.8 percent increase in net interest income and a 3.4 percent increase in noninterest income.

Of the 5,856 insured institutions reporting first quarter financial results, 57 percent reported year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable in the first quarter fell to 4.1 percent from 5.1 percent a year earlier.

“Revenue and net income growth were strong, asset quality improved, and the number of unprofitable banks and ‘problem banks’ continued to fall,” said FDIC Chairman Martin J. Gruenberg in a statement. “Community banks reported another quarter of solid revenue and net income growth.”

Gruenberg added, “In the past two quarters, the industry has seen a slowdown in loan growth that is broad-based across major lending categories.”

The overall number of banks in the state of Florida decreased this quarter to 144 from 149 in the fourth quarter of 2016. Comparatively, back in September 2015, there were 168 banks in Florida, showing that banks in Florida are following a nationwide trend of consolidation.

Florida banks’ assets increased slightly from the previous quarter as total assets were up to $187.6 billion from $184.2 billion. Deposits also increased to $147.7 million from $143.6 million from the previous quarter.

The most profitable Florida-based banks in the first quarter were:

  • Miami Lakes-based BankUnited (NYSE: BKU), which reported a profit of $66.2 million.
  • St. Petersburg-based Raymond James Bank (NYSE: RJF), which reported a profit of $59.3 million.
  • Jacksonville-based EverBank (NYSE: EVER), which posted a profit of $42.4 million.
  • Weston-based Florida Community Bank (NYSE: FCB), which reported a profit of $39.7 million.
  • Miami-based City National Bank of Florida, which reported a profit of $24.3 million.

The least profitable Florida-based banks in the first quarter were:

  • Brandon-based Platinum bank, which reported a loss of $3.09 million. Platinum was acquired by CenterState Banks (NASDAQ: CSFL) on April 1, and the loss likely was related to closing costs for the deal.
  • Fort Walton Beach-based Beach Community Bank, which reported a loss of $1.04 million.
  • Mayo-based Lafayette State Bank, which reported a loss of $324,000.
  • Miami-based Brickell Bank, which reported a loss of $155,000.
  • Fort Walton Beach-based First City Bank of Florida, which reported a loss of $155,000.
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