As they noticed declining values of its problem loans, Grand Bank & Trust of Florida experiences three times the losses during their fourth quarter compared to the quarter before that. As noted in its filing with the Federal Financial Institutions Examination Council, The West Palm Beach-based bank saw, in their last quarter, a net loss of $1.5 million. Although this was high, it was down from a $402,000 loss in the third quarter. This was a huge turn-around from its $521,000 in profit in 2008 which amounted to a $7.4 million loss for the whole year.
But things are looking up from an $824,000 expense in the earlier quarter. The last quarter loss was caused by a $3.1 million expense to hold for up-coming loan losses. The bank also lost on property that had to be repossessed where the bank also lost $2.1 million. As of Sept. 30, they lowered their accumulation of repossessed property from $13 million down to a manageable $4.7 million.
Encompassing an amount of 54 percent of its non current loans as of Dec. 31, was the bank’s $10.6 million reserve for those losses of future loans This amount is up to 47% coverage. With $507.7 million in assets, Grand Bank & Trust was the 23rd-largest bank chartered in South Florida.
