Totalbank’s Diversified Business Model Continues Trend Of Strong Profitable Growth

April 30, 2012 - PRLog -- TotalBank reported net income of $3.3 million for the first quarter ending March 31, 2012 announced Chairman and Chief Executive Officer Jorge Rossell, representing a $1.4 million or 75% increase on a year-over-year basis.

Rossell stated, “The new business plan launched in 2010 is on target using a decentralized model that has transformed the Bank into a more effective integrated retail-commercial bank.  The platform is now well-established for the Bank to continue its growth both organically and through acquisition.”

Fundamental to its strong results has been the Bank’s ability to continue increasing quality loan growth and diversifying its loan portfolio.  Through the strong performance of its Residential Lending Division, the Bank increased its residential loan portfolio by $45 million during the first quarter.  This represents a 27% percent growth rate over the first quarter.

The increased loan production also added to core deposit production, consistent with the Bank’s business plan.  As a result of its cross-selling efforts, the Bank’s non-interest bearing deposit accounts increased by $61 million during the first quarter, an increase of 15%.

“Our quality loan growth has been funded through the generation of core deposits which has lead to increased net interest income.  Stabilizing asset quality enables the continued improvement in the Bank’s core earnings engine and becomes more evident as each quarter passes,” said Luis de la Aguilera, President and Chief Marketing Officer of TotalBank.
The Bank’s improved earnings are evidenced by the continued increase in net interest income from the first quarter of 2011 to the first quarter of 2012, an 11% increase.

“Our continued upward growth is clearly demonstrated when comparing the first quarter of 2011 to the first quarter of 2012, and it underscores our ability to generate solid core earnings,” said Jose Marina, TotalBank’s Financial Officer.  

The new Wealth Management Division has excelled in its first year of operation by managing over $49 million of assets under management. This year, the division has budgeted to have 20 licensed wealth managers throughout the Banking Centers in order to service the wide ranging needs of the Bank's customers.

The Bank was also effective in not incurring any loan loss provisions during the first quarter as a result of the continued stabilization of real estate values and strong performance of its loan portfolio.  “Significantly, all of the Bank’s loan losses during the first quarter were adequately reserved for during the prior year,” said Jose Marina.  “We expect loan loss provisions to primarily originate from continued loan growth,” he added.

Building a sound community bank is at the forefront of the Bank’s business plan as this quarter’s results confirm.  “TotalBank is building a balance sheet with diverse and solid asset quality that is supported by strong capital levels and ample liquidity,” said Jose Marina.

The Bank opened a new, full-service Banking Center in Pinecrest earlier this month, and will be opening a new Banking Center in West Miami at the end of the second quarter.  Plans are underway to build two additional locations in 2012, increasing its footprint in Miami-Dade County to 22 Banking Centers.

About TotalBank
TotalBank is a leading integrated retail-commercial bank in South Florida with more than $2.3 billion in assets and 19 convenient locations throughout Miami-Dade County. Headquartered in Miami, TotalBank has served the South Florida community for 38 years, offering a broad range of domestic and international financial services to corporations, small businesses and individual consumers. The bank offers superior customer service focused on meeting the financial needs of customers while earning their confidence and loyalty. A member of Grupo Banco Popular Español, with more than $200 billion in assets and 2,500 branches, TotalBank is strengthened by its parent, one of the largest banking groups in Spain. More information can be found at www.totalbank.com.