Another local bank in recovery, Canyon Community Bank, retained its 3-star Bauer rating after cutting its losses in the first quarter.
Canyon recorded a net loss of $ 40,000 in the first quarter after losing $ 771,000 in 2018.
The bank has been the subject of a Consent Order from the Office of the Comptroller of the Currency since 2013 and was only rated 1 star, or âproblematic,â by Bauer as recently as 2016.
But Canyon has far exceeded the minimum capital reserves required in the order since raising $ 9.5 million in 2015 from a Texas-based investment holding company in exchange for a controlling stake in the bank. .
Canyon is now focused on returning to profitability, said George Psomopoulos, a longtime Florida banker who took charge of Canyon in January.
Psomopoulos said the bank remains well capitalized, but an unsuccessful foray into residential mortgages over the past two years has squeezed Canyon’s results.
Canyon Community Bank’s risk-based capital ratio – a key measure of capital reserves – is the highest of any bank in the state at over 38%, while it has no assets. productive such as delinquent loans.
âThe cleanup has taken place, there is a lot of capital and liquidity, so the mandate we have is to increase profits,â Psomopoulos said, adding that the bank has hired several seasoned local bankers to lead this effort.