Gibraltar Private Bank and Trust Co. regained a small profit in the first quarter, despite its noncurrent loans growing 30 percent.

The Coral Gables-based bank posted net income of $49,000 in the first quarter, improved from its $6.6 million fourth quarter loss. Its net interest income increased slightly to $15.8 million in the first quarter.
The main reason for the improvement was fewer charges related to bad loans. Gibraltar took a $2.7 million expense to reserve for future loan losses and charged off $4.5 million in bad loans in the first quarter. That’s down from a $9.6 million expense and $9 million in charge-offs in the previous quarter.
However, the problems in the bank’s loan portfolio expanded at the start of the year, and its reserves did not keep pace.
Gibraltar reported $66.9 million in noncurrent loans, or 4.92 percent of its total loans, on March 31. That’s up from $51.3 million in noncurrent loans, or 3.92 percent, on Dec. 31. Its repossessed property declined to $11 million, from $13.1 million.
The bank’s $28.9 million reserve for future loan losses covered 43 percent of its noncurrent loans on March 31. That’s below the banking industry average and down from Gibraltar’s 56 percent coverage ratio at year-end.
In addition, the bank had $12.7 million in loans past due 30 to 89 days, but still considered current, on March 31. That’s up from $2.4 million in the previous quarter.
Gibraltar is under a cease and desist order from federal regulators, which told it to address its problem loans and deficiencies in its anti-money laundering compliance. The bank is also defending itself against a lawsuit brought by victims of disbarred attorney Scott Rothstein’s Ponzi scheme.
The bank recently added Adolfo Henriques as vice chairman, president and COO; Angel Medina Jr. as executive VP and chief credit officer; and Alba Prestamo as executive VP and chief administrative and risk officer.
Gibraltar was the 12th-largest bank chartered in South Florida as of Dec. 31, with $1.65 billion in assets. Its asset level did not change much during the first quarter.
The bank’s loans declined to $1.33 billion on March 31 from $1.39 billion on Dec. 31. It increased its deposits to $1.35 billion from $1.33 billion.
Gibraltar’s wealth management division finished the first quarter with $680 million in assets under management. That’s down from $697 million at year-end.