EuroBancshares Inc. (EUBK) filed Quarterly Report for the period ended 2009-09-30.
Eurobancshares Inc. has a market cap of $14.9 million; its shares were traded at around $0.76 with and P/S ratio of 0.1.
Highlight of Business Operations:
Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding unpaid principal balances adjusted by any partial charge-offs, unearned finance charges, allowance for loan and lease losses, and net deferred nonrefundable fees or costs on origination. The allowance for loan and lease losses is an estimate to provide for probable losses that may have been incurred in our loan and lease portfolio. The allowance for loan and lease losses amounted to $46.0 million, $41.6 million and $33.6 million as of September 30, 2009, December 31, 2008 and September 30, 2008, respectively. Losses charged to the allowance amounted to $33.5 million for the nine months ended September 30, 2009, compared to $22.0 million for the same period in 2008. Recoveries were credited to the allowance in the amounts of $1.8 million and $1.7 million for the same periods, respectively. For additional information on the allowance for loan and lease losses, see the section of this discussion and analysis captioned “Allowance for Loan and Lease Losses.”
As of September 30, 2009, our OREO consisted of 66 properties with an aggregate value of $13.9 million, compared to 36 properties with an aggregate value of $8.8 million as of December 31, 2008, and 32 properties with an aggregate value of $7.1 million as of September 30, 2008. During the quarter and nine months ended September 30, 2009, two OREO properties and five OREO properties were sold, respectively, resulting in a $8,000 total gain for the quarter and a year-to-date total loss of $49,000, compared to one OREO properties and 25 OREO properties sold during the same periods in 2008, resulting in no loss for the Company during the third quarter of 2009 and a year-to-date total gain of $44,000 at September 30, 2008, respectively.
Total repossessed boats amounted to $401,000, $1.2 million and $994,000 as of September 30, 2009 and December 31, 2008 and September 30, 2008, respectively. For the quarter and nine months ended September 30, 2009, the total loss on sale of repossessed boats was $231,000 and $643,000, respectively, compared to a loss of $189,000 and $358,000 for the same periods in 2008. This increase was primarily attributable to our strategy of being more aggressive in the sale of repossessed boats to expedite their disposition and avoid build-up of inventory. During the nine months ended September 30, 2009, we sold 13 boats and repossessed six boats, compared to 19 boats sold and 14 boats repossessed during the same period in 2008. Our inventory of repossessed boats totaled eight units as of September 30, 2009, compared to 13 units as of September 30, 2008. As of September 30, 2009 and December 31, 2008, our boat financing portfolio amounted to $27.5 million and $30.3 million, respectively.
There was no repossessed equipment as of September 30, 2009. Repossessed equipment amounted to $6,000 and $12,000 as of December 31, 2008 and September 30, 2008, respectively. For the quarter and nine months ended September 30, 2009, the total amount of repossessed equipment sold amounted to $86,200 and $235,000, respectively, resulting in a total gain of $8,000 and $24,000 for those same periods, compared to $52,000 and $249,000 in equipment sold during the same periods in 2008, resulting in a total gain of $2,000 and $19,000, respectively.
For the quarter and nine months ended September 30, 2009, the average interest yield on a fully taxable equivalent basis earned on net loans was 5.46% and 5.55%, respectively, compared to 6.51% and 6.72% for the same periods in 2008. Average net loans amounted to $1.646 billion and $1.691 billion for the quarter and nine months ended September 30, 2009, compared to $1.795 billion and $1.816 billion for the same periods in 2008. Average interest yield on a fully taxable equivalent basis earned on investments was 6.72% for the quarters ended September 30, 2009, compared to 7.37% for the same quarter in 2008, while it decreased to 7.03% for the nine-month periods ended September 30, 2009, from 7.23% for the same period in 2008. Average investments amounted to $718.2 million and $779.4 million for the quarter and nine months ended September 30, 2009, compared to $825.4 million and $801.1 million for the same periods in 2008.
For the quarter and nine months ended September 30, 2009, our total interest expense amounted to $21.0 million and $64.8 million, respectively, compared to $24.5 million and $77.5 million for the same periods in 2008. On a linked-quarter and year-to-date basis, the decreases resulted mainly from the net effect of a re-pricing in all deposit categories and other borrowings under a lower interest rate environment; and a net increase in average interest-bearing liabilities. For the quarter and nine months ended September 30, 2009, the average interest rate on a fully taxable equivalent basis paid for interest-bearing liabilities decreased to 3.64% and 3.74%, respectively, from 4.43% and 4.71% for the same periods in 2008. During the quarter and nine months ended September 30, 2009, average interest-bearing liabilities amounted to $2.537 billion and $2.538 billion, respectively, compared to $2.494 billion and $2.473 billion for the same periods in 2008.
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