With merger pending, Community Bank of Broward grows profits and loans

Enlarge Photo

Community Bank of Broward is set to be acquired by Stonegate Bank.

Brian Bandell

Senior Reporter- South Florida Business Journal

Email  |  LinkedIn  |  Twitter

Community Bank of Broward added $16.7 million to its loan portfolio in the third quarter as it awaited a sale to Stonegate Bank.

Weston-based Community Bank of Broward earned $995,000 in the third quarter, up from $821,000 in the second quarter. There were two key drivers for this improvement. The bank's net interest income grew to $4.83 million from $4.66 million. It had no expenses for problem loans, following a $25,000 expense in the second quarter.

In August, Pompano Beach-based Stonegate Bank (NASDAQ: SGBK) announced a deal to acquire Community Bank of Broward for $61.2 million. It is currently pending regulatory approval. The resulting bank will have 21 locations following the closure of Stonegate's Coral Springs branch at 1750 N. University Drive. Community Bank of Broward has a location nearby.

RELATED CONTENT: Stonegate Bank to buy broward bank

Community Bank of Broward became larger and healthier for its suitor. Its loan portfolio grew to $423.9 million by Sept. 30 from $406.5 million on June 30.

The bank had $5.9 million in noncurrent loans, or 1.37 percent of total loans, and $689,000 in repossessed property on Sept. 30. That's down from $6.1 million in noncurrent loans, or 1.47 percent, and $1.4 million in repossessed property on June 30. However, it had an additional $6.7 million in loans – mostly commercial real estate – that were past due by 30 to 89 days as of Sept. 30.

It held $6.1 million in reserve for future loan losses to cover all of its noncurrent loans on Sept. 30.

Community Bank of Broward was the 20th-largest bank based in South Florida on June 30, with $488 million in assets. By Sept. 30, it was up to $500 million in assets.

Its deposits increased to $423 million on Sept. 30 from $419 million on June 30.

Brian Bandell covers banking, finance, health care and education. Get the latest banking news with our free daily newsletter. Click here to subscribe.