Cover Page
FIN4324
COMMERCIAL BANK MANAGEMENT
RESEARCH PAPER
A Comparative Financial Trend Analysis of:
Bank of Coral Gables
vis-a-vis
Intercontinental Bank
Prepared for:
Marcos A. Kerbel
Adjunct Professor
Department of
Florida International University
In Partial fulfillment of the
Requirements of Course:
FIN 4324
Commercial Bank Management
Term: Summer, 2011
By:
Elys
Panther ID: 3333338
Phone: (305) 123-4567
15-Jun-11
&F
mailto:[email protected]
I. General Bank Information
I. General Bank Information
Column1 Column3 Column4
Name of Bank Bank of Coral Gables Intercontinental Bank
Principal Address, City, State and Zip Code of Head Office 2295 Galiano Street Coral Gables, FL 33134 5722 SW 8 Street West Miami, FL 33144
Telephone Numbers: (305) 500 9501 Miami-Dade (954) 707 5501 Broward (305) 263 7900 Miami-Dade
Fax Numbers: (305) 567 5400 Miami-Dade
Website Address (Hyperlink): http://www.bankofcoralgables.com http://www.intercontinentalbk.com
Date Founded: June 5, 2006 June 21, 2002
Primary Bank Regulator (State or OCC) State of Florida FDIC State of Florida FDIC
FDCI Certificate Number 58131 57214
Total Assets as of:
Dec 31. 2010 $151,841,000 $142,755,000
Dec 31, 2009 $158,612,000 $147,305,000
1st Quarter 2011 $145,320,000 $138,215,000
1st Quarter 2010 $139,980,000 $148,100,000
Total Deposits
Dec 31. 2010 $141,817,000 $120,702,000
Dec 31, 2009 $144,347,000 $121,000,000
1st Quarter 2011 $135,844,000 $118,995,000
1st Quarter 2010 $126,243,000 $126,550,000
Column1 Column3 Column4
Total Liabilities
Dec 31. 2010 $142,193,000 $126,462,000
Dec 31, 2009 $145,548,000 $131,965,000
1st Quarter 2011 $136,184,000 $121,731,000
1st Quarter 2010 $127,611,000 $132,493,000
Bank of Coral Gables Intercontinental Bank
Net Income
Year 2010 ($5,481,000) $951,000
Year 2009 ($6,184,000) $940,000
1st Quarter 2011 ($823,000) $190,000
1st Quarter 2010 ($740,000) $267,000
Total Equity
Dec 31. 2010 $9,648,000 $16,293,000
Dec 31, 2009 $13,064,000 $15,340,000
Peer group Number 6 6
Peer group Description Insured commercial banks having assets between $100 million and $300 million, with 2 or fewer full service banking offices and located in a metropolitan statistical area Insured commercial banks having assets between $100 million and $300 million, with 2 or fewer full service banking offices and located in a metropolitan statistical area
Number of Banks in Peer Group 387 387
Chairman of Board William H. Kerdyk, Jr. William L. Morrison
CEO Simon Cruz Amadeo Lopez-Castro
President Simon Cruz Amadeo Lopez-Castro
COO Marela Valladares John A. Baron
CFO Mark Snelling Jack A. Furman
Number of Branches 1 1
Number of Employees 25 19
Bank of Coral Gables Intercontinental Bank
Mission Statement The combination of our Directors, Shareholders, Officers and staff has enabled us to form a strong foundation upon which to build safe and soundly run financial institution.
is not available as public information.
Bank Strategy Bank of Coral Gables offers a complete selection of Intercontinental Bank operates as a subsidiary of
commercial banking products and services designed Intercontinental Bankshares, LLC.
specially for small and mid-size business.
Products and Services Offered Checking Accounts Checking Accounts
Savings Accounts Savings Accounts
Money Market Accounts Money Market Accounts
IRA’s Accounts IRA’s Accounts
Loans Loans
Home Mortgage and Equity Home Mortgage and Equity
Online Banking Online Banking
/Commercial: /Commercial:
Checking Checking
Savings Savings
Money Market Accounts Money Market Accounts
Total Investment Account Total Investment Account
Commercial Loans Commercial Loans
Interest Rates Paid on Certificates of Deposits 3 Month CD <$100,000 : 0.40% APY 30 Day CD <$100,000 : 0.30% APY 6 Month CD <$100,000 : 0.60% APY 90 Day CD <$100,000 : 0.50% APY 9 Month CD <$100,000 : 0.75% APY 180 Day CD <$100,000 : 0.75% APY 12 Month CD <$100,000 : 1.00% APY 365 Day CD <$100,000 : 1.10% APY * All with a min. opening and balance of $2,500 * All with a min. opening and balance of $2,500 9 Month CD => $100,000 : 0.60% APY 30 Day CD >$100,000 : 0.30% APY
18 Month CD => $100,000 : 1.25% APY 90 Day CD >$100,000 : 0.50% APY
24 Month CD => $100,000 : 1.35% APY 180 Day CD>$100,000 : 0.75% APY
36 Month CD => $100,000 : 1.75% APY 365 Day CD>$100,000 : 1.20% APY
60 Month CD => $100,000 : 2.30% APY
* All with a min. opening and balance of $100,000 * All with a min. opening and balance of $100,000
Interest Rate Paid on IRA’s 12 Month IRA <$100,000 : 1.00% APY 3 Month IRA <$100,000 : 1.00% APY 18 Month IRA <$100,000 : 1.25% APY 5 Month IRA <$100,000 : 1.15% APY 24 Month IRA <$100,000 : 1.35% APY 6 Month IRA <$100,000 : 1.25% APY 36 Month IRA <$100,000 : 1.75% APY 7 Month IRA <$100,000 : 1.30% APY 48 Month IRA <$100,000 : 2.00% APY 8 Month IRA <$100,000 : 1.30% APY 60 Month IRA <$100,000 : 2.30% APY 12 Month IRA <$100,000 : 1.50% APY * All with a min. opening and balance of $500.00 * All with a min. opening and balance of $500.00 Bank of Coral Gables Intercontinental Bank Interest Rate Paid on IRA's 12 Month IRA>$100,000 : 1.00% APY 3 Month IRA =>$100,000 : 1.00% APY
18 Month IRA >$100,000 : 1.25% APY 5 Month IRA =>$100,000 : 1.15% APY
24 Month IRA>$100,000 : 1.35% APY 6 Month IRA =>$100,000 : 1.25% APY
36 Month IRA>$100,000 : 1.75% APY 7 Month IRA =>$100,000 : 1.35% APY
48 Month IRA>$100,000 : 2.00% APY 8 Month IRA =>$100,000 : 1.30% APY
60 Month IRA>$100,000 : 2.30% APY 12 Month IRA =>$100,000 : 1.55% APY
Interest Paid in Money Market $0-$2,499.99 : 0.25% APY $2,500-$9,999.99 : 0.75% APY
$3,000-$49,999.99 : 0.35% APY $10,000-$24,999.99 : 1.00% APY
$50,000-$99,999.99 : 0.60% APY $25,000-$99,999.99 : 1.15% APY
$100,000-500,000 : 0.75% APY =>$100,000 : 1.25% APY
* Min. opening deposit of $2,500 * Min. opening deposit of $2,500
Interest Paid in Savings NOW Regular : 0.25% APY NOW Regular : 0.20% APY
* Min opening deposit of $2,500.00 * Min opening deposit of $100.00
Personal 0.25% APY Personal 0.38% APY
* Min opening deposit of $50.00 * Min opening deposit of $100.00
0.75% APY 0.75% APY
Services fees The Gables EZ Checking Opening Balance: $250
Opening Balance: $5 Minimum Balance Requirement: $1,000 avg. daily
Minimum Balance Requirement: no minimum Monthly Service Fee: $10 plus $0.35 per item
Monthly Service Fee: $10 charge if balance falls below $1,000.00
The Gables Classic Checking
Opening Balance: $50
Minimum Balance Requirement: $250
Monthly Service Fee: $10
Personal Interest Checking – NOW Account Personal Interest Checking – NOW Account
Opening Balance: $250 Opening Balance: $1,200
Minimum Balance Requirement: $1,000 avg. daily Minimum Balance Requirement: $1,200 avg. daily
Monthly Service Fee: $10 Monthly Service Fee: $15 plus $0.35 per item
charge if balance falls below $1,000.00 charge if balance falls below $1,200.00
Money Market Account Intercontinental Account (Money Market)
Opening Balance: $1,000 Opening Balance: $2,700
Minimum Balance Requirement: $2,500 avg. daily Minimum Balance Requirement: $2,700 avg. daily
Monthly Service Fee: $10 if balance falls below Monthly Service Fee: $15 if balance falls below
$2,500 $2,700
Loan rates Loan rates vary upon applicant Loan rates vary upon applicant
Local Estimates according to BankRate.com
30 yr Mortgage Fixed, 0 Points for $300,000 4.625% APR – 4.750% APR
National Average 4.58% RATE
http://www.bankofcoralgables.com/
http://www.intercontinentalbk.com/
II. FIN Trend
II. Financial Trend Comparison
BALANCE SHEET- ASSETS Graph Data
Numbers are in thousands (000)
CASH Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 6,416 2,760 1,725 2,413 1,790
Cash and Due from Banks $ 585 3,091 729 3,701 1,101 1,790 2,413 1,725 2,760 6,416 Bank of Coral Gables 1,101 3,701 729 3,091 585
Bank of Coral Gables shows a very unstable cash trend but overall appears to decline. However, Intercontinental Bank shows a very sharp declining trend lossing more than 70% of its cash and due.
INVESTMENTS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 1,689 0 0 0 0
Federal Funds Sold $ 0 2,040 0 5,355 16,833 0 0 0 0 1,689 Bank of Coral Gables 16,833 5,355 0 2,040 0
Federal funds started to decline after 2008, the worst part of the financial crisis. As banks have started to face liquidity problems, they have become unable to sell funds to other financial institutions. Bank of Coral Gables looks to be particulary affected for this situation. Intercontinental Bank shows less comparative decline.
INVESTMENTS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 91,422 121,026 111,581 120,668 111,187
Bond Portfolio $ 32,892 3,011 25,055 2,995 2,034 111,187 120,668 111,581 121,026 91,422 Bank of Coral Gables 2,034 2,995 25,055 3,011 32,892
Intercontinental Bank holds a greater bond portfolio than Bank of Coral Gables. Perhaps, that is related to the Intercontinental’s strong investment in Federal Funds during 2008-09. Intercontinental Bank could be holding more liquid assets in order to increases its liquidity in the short-term.
LOANS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 11,678 8,100 11,458 8,210 13,401
Real Estate $ 87,118 115,146 92,790 119,789 124,620 13,401 8,210 11,458 8,100 11,678 Bank of Coral Gables 124,620 119,789 92,790 115,146 87,118
Intercontinental Bank has less exposure to real estate loans than Bank of Coral Gables. However, Bank of Coral Gables’s real estate loans have been declining during last years. This trend could be explained by the toxic loans’ write-off. On the other hand, Intercontinental Bank’s loans have increased.
LOANS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 8,887 5,570 5,225 5,081 5,820
Commercial $ 6,367 1,560 5,683 1,553 2,544 5,820 5,081 5,225 5,570 8,887 Bank of Coral Gables 2,544 1,553 5,683 1,560 6,367
While Bank of Coral Gables has strongly increased its commercial loan portfolio during the last year, Intercontinental Bank shows a mild decline of those loans since 2008. However, it appears to be a timid recuperation for Intercontinetal during last year.
LOANS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 765 792 820 889 974
Consumer $ 184 0 292 1 3 974 889 820 792 765 Bank of Coral Gables 3 1 292 0 184
Bank of Coral Gables’s number of consumer loans has increased in the last year. By the contrary, Intercontinental Bank’s consumer loan portfolio has been increasing with a good pace during the whole period.
LOANS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 0 0 0 0 0
Agricultural $ 0 0 0 0 0 0 0 0 0 0 Bank of Coral Gables 0 0 0 0 0
None of the banks are involved in Agricultural lending.
LOANS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 21,747 14,952 18,590 14,933 21,065
Total Loans $ 93,682 120,696 102,536 125,797 131,200 21,065 14,933 18,590 14,952 21,747 Bank of Coral Gables 131,200 125,797 102,536 120,696 93,682
There is an appreciable difference between the banks’ amounts of loans, which clearly shows hightest levels of lending for Bank of Coral Gables. By the contrary, Intercontinental Bank have a comparative low amount of lending and seems to be reaching its 08′ levels. However, Bank of Coral Gables has steadly decrease its loan’s portfolio even after the crisis but only exception at beginning 2010.
ALLOWANCE FOR LOAN LOSSES Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 117 182 217 235 224
ALL $ 3,374 3,064 3,422 3,298 1,535 224 235 217 182 117 Bank of Coral Gables 1,535 3,298 3,422 3,064 3,374
Bank of Coral Gables’ exposition to subprime loans could be the reason why it have increased its allowances for loans. By the contrary, Intercontinental Bank still expecting to see losses in its loans have separated a much less significant amount to cover it. During last year, Bank of Coral Gables’ allowance has increased even thought its total loan are decresing.
NET LOANS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 21,630 14,770 18,373 14,698 20,841
Net Loans & Leases $ 90,308 117,932 99,114 122,499 130,268 20,841 14,698 18,373 14,770 21,630 Bank of Coral Gables 130,268 122,499 99,114 117,932 90,308
Intercontinemtal Bank seems to be reaching the 08′ levels of lending. However, Bank of Coral Gables has steadly decrease its loan’s portfolio even after the crisis but only exception at beginning 2010.
FIXED ASSETS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 619 551 585 549 577
Fixed Assets $ 201 345 241 383 481 577 549 585 551 619 Bank of Coral Gables 481 383 241 345 201
Intercontinental Bank shows a very stable trend; however, Bank of Coral Gables’ fixed assets have decreasing for motre than 25% during the period. Perhaps, Bank of Coral Gables has lessen its size in order to reducing its expenses.
TOTAL ASSETS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 122,951 147,305 142,755 148,100 138,215
Total Assets $ 145,320 139,980 151,841 158,612 160,227 138,215 148,100 142,755 147,305 122,951 Bank of Coral Gables 160,227 158,612 151,841 139,980 145,320
Bank of Coral Gables’ total assets have been decreasing almost a 10% during the period. It is possible that as its loans turn sour it should sacrifice liquidity and assets to cover its loan losses. On the other hand, Intercontinental Bank has been increasing its assets. Maybe this is consequence of a more conservative strategy of investment: a lot of bonds, well-selected commercial loans, moderate consumers loan, and low level of loan losses.
BALANCE SHEET- LIABILITIES
Numbers are in thousands (000)
DEPOSITS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 19,226 24,977 25,620 30,015 25,328
Non-Interest Bearing $ 12,944 7,269 12,029 7,216 5,175 25,328 30,015 25,620 24,977 19,226 Bank of Coral Gables 5,175 7,216 12,029 7,269 12,944
Both banks have experienced growth in this category. However, Bank of Coral Gables has experienced more growth than Intercontinental. This might be related to a superior involvement in the local community.
DEPOSITS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 131,517 170,273 190,508 197,113 190,044
Interest Bearing $ 130,028 129,977 135,477 149,230 131,701 190,044 197,113 190,508 170,273 131,517 Bank of Coral Gables 131,701 149,230 135,477 129,977 130,028
Intercontinental Bank has been incresing its interest bearing deposits during the period; however, Bank of Coral Gables has experienced a decrease since 2009. In resume, Bank of Coral Gables has seen a slight reduction in its interest bearing deposit.
DEPOSITS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 101,588 121,000 120,702 126,550 118,995
Total Deposits $ 135,844 126,243 141,817 144,347 130,716 118,995 126,550 120,702 121,000 101,588 Bank of Coral Gables 130,716 144,347 141,817 126,243 135,844
Both Banks has increased their total deposits. However, Bank of Coral Gables has done a better job increasing its deposits while Intercontinental Bank has seen a decrease since 2010. The difference might be in that Intercontinental Bank is less active in the community and this might be an obstacle in retaining and or attracting new customers.
BORROWINGS Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 6,725 10,856 5,647 5,676 2,520
Federal Funds Purchased $ 0 0 0 0 0 2,520 5,676 5,647 10,856 6,725 Bank of Coral Gables 0 0 0 0 0
Intercontinental Bank is in deeper liquidity problems than Bank of Coral Gables. As it can be seen, Interconental Bank has consistently purchase federal funds, which basically means that is has taken overnight loans with other banking institutions. However, since 2009, Intercontinental Bank has been reducing its need for Federal Funds Purchases. Perhaps, a sign that the worst had happenned.
TOTAL LIABILITIES Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 108,551 131,965 126,462 132,493 121,731
Total Liabilities $ 136,184 127,611 142,193 145,548 141,100 121,731 132,493 126,462 131,965 108,551 Bank of Coral Gables 141,100 145,548 142,193 127,611 136,184
Bank of Coral Gables have seen a sligh decline of its total liabilities. In the case of Intercontinental Bank, it has had a moderate increase in its liabilities. Both trends are related to how deposits have behave during this period.
BALANCE SHEET- STOCKHOLDERS EQUITY
Numbers are in thousands (000)
EQUITY Bank of Coral Gables Intercontinental Bank c p 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 4,150 4,150 4,150 4,150 4,150
Common and Preferred Stock 11,921 9,622 11,263 9,622 9,605 4,150 4,150 4,150 4,150 4,150 Bank of Coral Gables 9,605 9,622 11,263 9,622 11,921
Both bank does not have preferred stocks. The number of stocks outstanding for Intercontinental Bank is minor compared to Bank of Coral Gables. Only, Bank of Coral Gables has increased its number of stock since 2010.
EQUITY Bank of Coral Gables Intercontinental Bank s 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 4,200 4,200 4,200 4,200 4,200
Surplus $ 10,084 10,019 10,069 9,990 9,847 4,200 4,200 4,200 4,200 4,200 Bank of Coral Gables 9,847 9,990 10,069 10,019 10,084
Bank of Coral Gables has been able to sell more of its stock above par value. Intercontinental Bank also shows a positive trend of increasing surplus capital.
EQUITY Bank of Coral Gables Intercontinental Bank re 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 6,050 6,990 7,943 7,257 8,134
Retained Earnings $ -12,847 -7,283 -12,023 -6,543 -359 8,134 7,257 7,943 6,990 6,050 Bank of Coral Gables -359 -6,543 -12,023 -7,283 -12,847
As banks incurr losses, their retained earnings start to decrease. Bank of Coral Gables has suffered a major drop in retained earnings. This can be attributed to the loans that started to default as the financial crisis worsened. On the other hand, Intercontinental Bank, looks to be increasing its retaining earnings.
EQUITY Bank of Coral Gables Intercontinental Bank dp 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 0 0 0 0 0
Dividends Paid $ 0 0 0 0 0 0 0 0 0 0 Bank of Coral Gables 0 0 0 0 0
Because of the financial crisis, many banks have been obligated to not distribute any dividends to their shareholders. In this case, both banks do not have distributed any dividends.
EQUITY Bank of Coral Gables Intercontinental Bank tse 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 14,400 15,340 16,293 15,607 16,484
Total Stockholder Equity $ 8,134 7,257 7,943 6,990 6,050 16,484 15,607 16,293 15,340 14,400 Bank of Coral Gables 6,050 6,990 7,943 7,257 8,134
Both banks have seen a increase in their equities. Intercontinental Bank has an relative greater equity than Bank of Coral Gables.
EQUITY Bank of Coral Gables Intercontinental Bank tlae 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 122,951 147,305 142,755 148,100 138,215
Total Liabilities and Equity $ 145,320 139,980 151,841 158,612 160,227 138,215 148,100 142,755 147,305 122,951 Bank of Coral Gables 160,227 158,612 151,841 139,980 145,320
Both of this banks have seen the combination of equity and liability declining consistently since 2008. Bank of Coral Gables have experienced a decrease in its total liabilities and equity during all period; however, Intercontinental Bank only has presented this declination during the lasst year.
INCOME STATEMENT- INCOME
Numbers are in thousands (000)
INCOME Bank of Coral Gables Intercontinental Bank interest income 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 5,673 4,762 4,335 1,175 1,073
Interest Income $ 1,513 1,726 6,360 7,779 8,939 1,073 1,175 4,335 4,762 5,673 Bank of Coral Gables 8,939 7,779 6,360 1,726 1,513
Both banks have been struggling with income generation. They suffered a harsh decline in its interest income during the whole period. However, the Bank of Coral Gables’ reduction on interest income has been more notorius as effect of the financial crisis. Intercontinental Bank also experienced a sharp decline.
INCOME Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 3,657 3,310 3,170 896 710
Investment Income $ 170 12 189 55 112 710 896 3,170 3,310 3,657 Bank of Coral Gables 112 55 189 12 170
For Intercontinental Bank, investment income is a major source of income. Contrary to others banks in its peer group, Intercontinental’s revenues are not principally generated by the bank’s operations. Bank of Coral Gables had a minor component of its revenues that is generated by investments.
INCOME Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 1,834 1,626 1,614 403 265
Non-Interest Income $ 102 18 -172 97 78 265 403 1,614 1,626 1,834 Bank of Coral Gables 78 97 -172 18 102
Bank of Coral Gables shows extremely weaknes in this category since its income has been decreasing during the whole period and even has reached negative values in 2010. By the contrary, Intercontinetal Bank have experienced a moderate reduction of this income.
INCOME Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 11,164 9,698 9,119 2,474 2,048
Total Income $ 1,785 1,756 6,377 7,931 9,129 2,048 2,474 9,119 9,698 11,164 Bank of Coral Gables 9,129 7,931 6,377 1,756 1,785
Both financial institutions, Bank of Coral Gables and Intercontinental Bank, have been struggling in their total income, which have been on a steep decline during the whole period.
INCOME STATEMENT- EXPENSES
Numbers are in thousands (000)
EXPENSE Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 2,675 1,812 1,420 375 301
Interest Expense $ 390 570 1,959 4,121 4,681 301 375 1,420 1,812 2,675 Bank of Coral Gables 4,681 4,121 1,959 570 390
Intercontinental Bank and Bank of Coral Gables both are seeing a sharp decrease in their cost of funds during the whole period. Perhaps, the combination of reducing expenses, lower rate of interests, and downsizing have contributed to this savings.
EXPENSE Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 2,948 3,020 3,154 756 733
Salaries and Benefits $ 1,574 1,349 4,941 3,830 2,757 733 756 3,154 3,020 2,948 Bank of Coral Gables 2,757 3,830 4,941 1,349 1,574
Bank of Coral Gables’ salaries and benefits have increased almost the double during the period. However, Intercontinental Bank’s expenses in salaries and benefits are almost the same.
EXPENSE Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 528 160 150 55 0
Provisions for Loan Losses $ 474 565 4,769 6,109 1,024 0 55 150 160 528 Bank of Coral Gables 1,024 6,109 4,769 565 474
Bank of Coral Gables has allocated substancial amounts of money for covering loans’ losses during the period; however, it appears that in 2010 this expenses began to decrease. On the other hand, Intercontinental Bank’s low exposure to subprime loans have avoid it to separate signicant funds to cover loans’ losses.
EXPENSE Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 452 568 536 158 114
Taxes $ 0 0 0 0 0 114 158 536 568 452 Bank of Coral Gables 0 0 0 0 0
Intercontinental Bank has been paying taxes according to its improvement in operations; however, Bank of Coral Gables has confronted a more difficult situation. It has been declaring operating losses during the complete period, and receiving tax creditds instead of paying taxes.
EXPENSE Bank of Coral Gables Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q
2011-1Q 2010-1Q 2010 2009 2008 2011-1Q 2010-1Q 2010 2009 2008 Intercontinental Bank 6,576 5,550 5,257 1,343 1,148
Total Expenses $ 2,438 2,484 11,669 14,060 8,462 1,148 1,343 5,257 5,550 6,576 Bank of Coral Gables 8,462 14,060 11,669 2,484 2,438
Bank of Coral Gables has allocated substancial amounts of money for covering loans’ losses; aditionally, salaries and benefits have increased almost the double during the period. Both factors have contributed to increasing expenses for Bank of Coral Gables. On the other hand, Intercontinental Bank’s low exposure to subprime loans, and relative low salaries and benefits expenses, have allowed it to reduce its total expenses.
NET INCOME Bank of Coral Gables Intercontinental Bank
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more