First National Bank of South Miami
COMPANY PROFILE
Since 1952, First National Bank of South Miami has distinguished itself with unrivaled experience serving the financial needs of every sector. Because we know our clients well, we can offer them detailed, individual assistance, along with award-winning services from commercial lending to trust management to a comprehensive range of personal banking services.
First National Bank of South Miami has always been respected for its professionalism, integrity, security, and solvency. Our quality has consistently earned us the recognition and highest ratings from independent analysts. Our continued quality and active role in the South Miami community have earned us many loyal clients throughout the years.
2021 Annual Report
A Year of Incredible Growth
As of December 31, 2021, First Miami Bancorp, Inc., and its subsidiaries closed with total assets of $1.12 billion. The Company grew by almost $231 million (+25.8%) during the year. We are now a billion-dollar bank! Of course, that level of growth presented a number of additional regulatory and operational requirements that we started working on well before the end of 2021.
Even without marketing campaigns, and with lower interest rates to match the low market rates, our deposits grew by $210 million. Historically low rates led to a drop in CD balances, but our bankers achieved a growth of almost $40 million in non-interest balances and over $200 million in interest bearing deposits.
Loan Portfolio
The loan portfolio, our most profitable asset, was plagued by a large volume of early payoffs. The Bank’s loan portfolio’s biggest component is real estate loans. South Florida’s increasing real estate values led to the sale of many properties and the resulting payoff of loans. In addition, due to the receipt of SBA PPP loan forgiveness funds, our balance in SBA PPP loans fell by $60 million in 2021. In the face of these challenges, our lenders had to work extremely hard. They closed $149 million in loans in 2021, an increase of more than $50 million over 2020. Yet almost all new loan funding went towards replacing paid-off loan balances. It should be noted that despite the large drop in PPP balances, we funded $37 million in PPP second-draw loans in the first quarter of 2021. PPP fees of $2.2 million are reflected in the 2021 financial results.
Net Interest Income
In 2021 we faced a very tough economy and distinct challenges in placing the excess liquidity we had to its most profitable use. However, there was good news. Looking at the Bank’s statement of operations, we direct you to the Net Interest Income (NII) After the Provision. In spite of the margin squeeze resulting from low rates and weak loan portfolio growth, NII dropped by only $660 thousand, compared to 2020.
Non-Interest Income
Knowing that we faced loan portfolio growth issues, First Miami Bancorp has put forth a lot of effort towards increasing non-interest income. The highlights were:
▲ Trust fees were $2.3 million, an increase of $600 thousand,
▲ Residential Mortgage referral fees of $37 thousand,
▲ Loan Swap fees were $88 thousand, and
▲ Elavon Merchant Fees were $89 thousand.
An Improve Bottom Line
The Statement of Operations shows that despite the sharp drop in interest spreads, 2021 operating income was $6.5 million, only $780 thousand below 2020. The Company’s equity portfolio had an investment gain of $12.4 million as opposed to the $9.6 million loss of 2020. The result was 2021 net income of $14.0 million as against the loss of $1.4 million in 2020.
Looking Forward to 2022
We will never lose sight of the reality that, it is because of our clients that we exist. We are grateful for a loyal client base that was the clear reason for our growth in 2021. Our customers really appreciate the attentive and superior service that we bring to all of our client interactions. As economic activity increases and interest rates start to rise in 2022, we will be there to employ our liquidity to creatively serve the credit needs of our customers. We will continue to invest in new technologies that will bring added convenience and security to the banking experience. It is our longstanding vision to clearly demonstrate our loyalty to clients and communities by providing them with the financial opportunities they need to succeed.
With great pride we report that since 1989, FNBSM has been awarded a recommended rating by BAUER FINANCIAL, Inc. for Safety and Soundness. FNBSM is in rare company, ranked in the top 5% for Safety and Soundness amongst Florida banks according to Bauer.