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Boca Raton News

ARTICLE

Date ArticleType
2/13/2019 General
LEGACY BANK OF FLORIDA REPORTS

LEGACY BANK OF FLORIDA REPORTS NET INCOME OF $4.1 MILLION FOR 2018

– Legacy Bank of Florida ("Bank") reported pretax income of $5.4 million for 2018 compared to the pretax income of $3.9 million for 2017, a 36.0% increase. The Bank’s net income for the year ended December 31, 2018, of $4.1 million, or $0.26 per share, compared to the net income of $556,000, or $0.04 per share, for the year ended December 31, 2017. In 2017 the Bank net income was affected by a $1.9 million expense related to the Tax Reform Act enacted in December 2017. The Bank’s net interest income after the provision for loan losses was $13.4 million for 2018 compared to the $11.9 million for 2017, a 13.1% increase.

The Bank’s total assets at December 31, 2018, were $427.0 million, as compared to $377.9 million at December 31, 2017, an increase of $49.1 million or 13.0%. The Bank’s loans net of reserves at December 31, 2018 were $362.5 million as compared to $309.0 million at December 31, 2017, an increase of $53.5 million or 17.3%. Total deposits ending December 31, 2018, were $305.9 million as compared to $276.3 million at December 31, 2017, a $29.6 million increase or 10.7%. The Bank's stockholders' equity at December 31, 2018, was $45.7 million compared to $39.7 million at December 31, 2017, a $6.0 million or 15.0% increase, reflected in part, from the sale of 648,000 shares of common stock, or net proceeds of $2.1 million, concluding our Capital Offering.

Dennis G. Bedley, Chairman and CEO commented, "This year produced marked improvement in the performance of the Bank achieving over a 1.02% return on assets (1.34% pretax) and a 9.52% return on our shareholder equity (12.54% pretax) as we still have a small DTA left. We finished 2018 with a strong fourth quarter, loan production alone accounted for the over 70% of the net $53.5 million increase in our portfolio from December 2017. We believe our net interest margin has begun to stabilize for three compelling reasons, one, the new loans we are originating are at higher rates, two, the loans we originated from 2013, when the Bank was re-capitalized, are resetting at higher rates and, three, our new loan volume will continue to add additional fees and revenue to the Bank. Lowering our efficiency ratio from 63% to below 60% remains a top priority for Management. As always, we continue to remain focused on implementing strategies that produce long term value for our Shareholders."

Legacy Bank of Florida, founded in 2006, is a locally owned and managed community Bank with offices in Boca Raton, West Palm Beach, Fort Lauderdale, Delray Beach and Pompano. The Bank specializes in business and professional banking, including commercial credit and deposit products, and a full line of retail and corporate cash management products. For additional information, please visit

 

www.legacybankfl.com.