After tough fourth quarter, TotalBank reports record year-end earnings

TotalBank announced record year-end earnings of $15.8 million for 2015. That’s up from $10.6 million in 2014.

Net loans and total deposits both hit $1.9 billion for 2015, up 7 percent each compared to 2014. Most of the growth in loans came from the Miami-based bank’s residential lending business.

The solid numbers come after unexpected upheaval at TotalBank, which laid off 58 workers in November. That was followed by the defection of president and CEO Luis de la Aguilera and other top executives to U.S. Century Bank one month later.

Jay Pelham was named president of TotalBank soon after. Chairman Jorge Rossell took over as CEO. The bank has $2.7 billion in total assets and holds a five-star rating from Bauer Financial.

Despite the impressive year-end results, TotalBank’s assets and deposits dipped slightly for the fourth quarter, falling about 1 percent each from the third quarter.

“The reduction in deposits was driven by escrow disbursements in the fourth quarter for the payment of property taxes,” Jose Marina, TotalBank’s CFO, said in an email. “This reduction in escrows and resulting reduction in interest bearing cash balances drove the overall reduction in total assets.”

The overall improvement in earnings at TotalBank could position the bank well for a sale if Spanish parent Banco Popular Español decides it wants to exit the South Florida market.

Industry sources say the Spanish bank was in advanced negotiations with Pompano Beach-based Stonegate Bank before the deal was called off. Both TotalBank and Stonegate deny that talks took place.

This story was originally published January 28, 2016 at 1:09 PM with the headline "After tough fourth quarter, TotalBank reports record year-end earnings."