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FIN4324
COMMERCIAL BANK MANAGEMENT
RESEARCH PAPER
A Comparative Financial Trend Analysis of:
Bank of Coral Gables
vis-a-vis
Intercontinental Bank
Prepared for:
Marcos A. Kerbel
Adjunct Professor
Department of Finance
Florida International University
In Partial fulfillment of the
Requirements of Course:
FIN 4324
Commercial Bank Management
Term: Summer, 2011
By:
Elys
Panther ID: 3333338
Phone: (305) 123-4567
[email protected]
						15-Jun-11

mailto:[email protected]

I. General Bank Information

I. General Bank Information
Column1	Column3	Column4
Name of Bank	Bank of Coral Gables	Intercontinental Bank
Principal Address, City, State and Zip Code of Head Office	2295 Galiano Street Coral Gables, FL 33134	5722 SW 8 Street West Miami, FL 33144
Telephone Numbers:	(305) 500 9501 Miami-Dade (954) 707 5501 Broward	(305) 263 7900 Miami-Dade
Fax Numbers:	(305) 567 5400 Miami-Dade
Website Address (Hyperlink):	http://www.bankofcoralgables.com	http://www.intercontinentalbk.com
Date Founded:	June 5, 2006	June 21, 2002
Primary Bank Regulator (State or OCC)	State of Florida FDIC	State of Florida FDIC
FDCI Certificate Number	58131	57214
Total Assets as of:
Dec 31. 2010	$151,841,000	$142,755,000
Dec 31, 2009	$158,612,000	$147,305,000
1st Quarter 2011	$145,320,000	$138,215,000
1st Quarter 2010	$139,980,000	$148,100,000
Total Deposits
Dec 31. 2010	$141,817,000	$120,702,000
Dec 31, 2009	$144,347,000	$121,000,000
1st Quarter 2011	$135,844,000	$118,995,000
1st Quarter 2010	$126,243,000	$126,550,000
Column1	Column3	Column4
Total Liabilities
Dec 31. 2010	$142,193,000	$126,462,000
Dec 31, 2009	$145,548,000	$131,965,000
1st Quarter 2011	$136,184,000	$121,731,000
1st Quarter 2010	$127,611,000	$132,493,000
	Bank of Coral Gables	Intercontinental Bank
Net Income
Year 2010	($5,481,000)	$951,000
Year 2009	($6,184,000)	$940,000
1st Quarter 2011	($823,000)	$190,000
1st Quarter 2010	($740,000)	$267,000
Total Equity
Dec 31. 2010	$9,648,000	$16,293,000
Dec 31, 2009	$13,064,000	$15,340,000
Peer group Number	6	6
Peer group Description	Insured commercial banks having assets between $100 million and $300 million, with 2 or fewer full service banking offices and located in a metropolitan statistical area	Insured commercial banks having assets between $100 million and $300 million, with 2 or fewer full service banking offices and located in a metropolitan statistical area
Number of Banks in Peer Group	387	387
Chairman of Board	William H. Kerdyk, Jr.	William L. Morrison
CEO	Simon Cruz	Amadeo Lopez-Castro
President	Simon Cruz	Amadeo Lopez-Castro
COO	Marela Valladares	John A. Baron
CFO	Mark Snelling	Jack A. Furman
Number of Branches	1	1
Number of Employees	25	19
	Bank of Coral Gables	Intercontinental Bank
Mission Statement	The combination of our Directors, Shareholders, Officers and staff has enabled us to form a strong foundation upon which to build safe and soundly run financial institution.
		is not available as public information.
Bank Strategy	Bank of Coral Gables offers a complete selection of	Intercontinental Bank operates as a subsidiary of
	commercial banking products and services designed	Intercontinental Bankshares, LLC.
	specially for small and mid-size business.
Products and Services Offered	Checking Accounts	Checking Accounts
	Savings Accounts	Savings Accounts
	Money Market Accounts	Money Market Accounts
	IRA's Accounts	IRA's Accounts
	Loans	Loans
	Home Mortgage and Equity	Home Mortgage and Equity
	Online Banking	Online Banking
	Business/Commercial:	Business/Commercial:
	Business Checking	Business Checking
	Business Savings	Business Savings
	Business Money Market Accounts	Business Money Market Accounts
	Total Investment Account	Total Investment Account
	Commercial Loans	Commercial Loans
Interest Rates Paid on Certificates of Deposits	3 Month CD <$100,000 : 0.40% APY	30 Day CD <$100,000 : 0.30% APY
	6 Month CD <$100,000 : 0.60% APY	90 Day CD <$100,000 : 0.50% APY
	9 Month CD <$100,000 : 0.75% APY	180 Day CD <$100,000 : 0.75% APY
	12 Month CD <$100,000 : 1.00% APY	365 Day CD <$100,000 : 1.10% APY
	* All with a min. opening and balance of $2,500	* All with a min. opening and balance of $2,500
	9 Month CD => $100,000 : 0.60% APY	30 Day CD >$100,000 : 0.30% APY
	18 Month CD => $100,000 : 1.25% APY	90 Day CD >$100,000 : 0.50% APY
	24 Month CD => $100,000 : 1.35% APY	180 Day CD>$100,000 : 0.75% APY
	36 Month CD => $100,000 : 1.75% APY	365 Day CD>$100,000 : 1.20% APY
	60 Month CD => $100,000 : 2.30% APY
	* All with a min. opening and balance of $100,000	* All with a min. opening and balance of $100,000
Interest Rate Paid on IRA's	12 Month IRA <$100,000 : 1.00% APY	3 Month IRA <$100,000 : 1.00% APY
	18 Month IRA <$100,000 : 1.25% APY	5 Month IRA <$100,000 : 1.15% APY
	24 Month IRA <$100,000 : 1.35% APY	6 Month IRA <$100,000 : 1.25% APY
	36 Month IRA <$100,000 : 1.75% APY	7 Month IRA <$100,000 : 1.30% APY
	48 Month IRA <$100,000 : 2.00% APY	8 Month IRA <$100,000 : 1.30% APY
	60 Month IRA <$100,000 : 2.30% APY	12 Month IRA <$100,000 : 1.50% APY
	* All with a min. opening and balance of $500.00	* All with a min. opening and balance of $500.00
	Bank of Coral Gables	Intercontinental Bank
Interest Rate Paid on IRA's	12 Month IRA>$100,000 : 1.00% APY	3 Month IRA =>$100,000 : 1.00% APY
	18 Month IRA >$100,000 : 1.25% APY	5 Month IRA =>$100,000 : 1.15% APY
	24 Month IRA>$100,000 : 1.35% APY	6 Month IRA =>$100,000 : 1.25% APY
	36 Month IRA>$100,000 : 1.75% APY	7 Month IRA =>$100,000 : 1.35% APY
	48 Month IRA>$100,000 : 2.00% APY	8 Month IRA =>$100,000 : 1.30% APY
	60 Month IRA>$100,000 : 2.30% APY	12 Month IRA =>$100,000 : 1.55% APY
Interest Paid in Money Market	$0-$2,499.99 : 0.25% APY	$2,500-$9,999.99 : 0.75% APY
	$3,000-$49,999.99 : 0.35% APY	$10,000-$24,999.99 : 1.00% APY
	$50,000-$99,999.99 : 0.60% APY	$25,000-$99,999.99 : 1.15% APY
	$100,000-500,000 : 0.75% APY	=>$100,000 : 1.25% APY
	* Min. opening deposit of $2,500	* Min. opening deposit of $2,500
Interest Paid in Savings	NOW Regular : 0.25% APY	NOW Regular : 0.20% APY
	* Min opening deposit of $2,500.00	* Min opening deposit of $100.00
	Personal 0.25% APY	Personal 0.38% APY
	* Min opening deposit of $50.00	* Min opening deposit of $100.00
	Business 0.75% APY	Business 0.75% APY
Services fees	The Gables EZ Checking	Opening Balance: $250
	Opening Balance: $5	Minimum Balance Requirement: $1,000 avg. daily
	Minimum Balance Requirement: no minimum	Monthly Service Fee: $10 plus $0.35 per item
	Monthly Service Fee: $10	charge if balance falls below $1,000.00
	The Gables Classic Checking
	Opening Balance: $50
	Minimum Balance Requirement: $250
	Monthly Service Fee: $10
	Personal Interest Checking - NOW Account	Personal Interest Checking - NOW Account
	Opening Balance: $250	Opening Balance: $1,200
	Minimum Balance Requirement: $1,000 avg. daily	Minimum Balance Requirement: $1,200 avg. daily
	Monthly Service Fee: $10	Monthly Service Fee: $15 plus $0.35 per item
	charge if balance falls below $1,000.00	charge if balance falls below $1,200.00
	Money Market Account	Intercontinental Account (Money Market)
	Opening Balance: $1,000	Opening Balance: $2,700
	Minimum Balance Requirement: $2,500 avg. daily	Minimum Balance Requirement: $2,700 avg. daily
	Monthly Service Fee: $10 if balance falls below	Monthly Service Fee: $15 if balance falls below
	$2,500	$2,700
Loan rates	Loan rates vary upon applicant	Loan rates vary upon applicant
	Local Estimates according to BankRate.com
	30 yr Mortgage Fixed, 0 Points for $300,000	4.625% APR - 4.750% APR
	National Average	4.58% RATE

http://www.bankofcoralgables.com/ http://www.intercontinentalbk.com/

II. FIN Trend

II. Financial Trend Comparison
BALANCE SHEET- ASSETS												Graph Data
Numbers are in thousands (000)
CASH	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		6,416	2,760	1,725	2,413	1,790
Cash and Due from Banks $	585	3,091	729	3,701	1,101	1,790	2,413	1,725	2,760	6,416	Bank of Coral Gables		1,101	3,701	729	3,091	585
					Bank of Coral Gables shows a very unstable cash trend but overall appears to decline. However, Intercontinental Bank shows a very sharp declining trend lossing more than 70% of its cash and due.
INVESTMENTS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		1,689	0	0	0	0
Federal Funds Sold $	0	2,040	0	5,355	16,833	0	0	0	0	1,689	Bank of Coral Gables		16,833	5,355	0	2,040	0
					Federal funds started to decline after 2008, the worst part of the financial crisis. As banks have started to face liquidity problems, they have become unable to sell funds to other financial institutions. Bank of Coral Gables looks to be particulary affected for this situation. Intercontinental Bank shows less comparative decline.
INVESTMENTS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		91,422	121,026	111,581	120,668	111,187
Bond Portfolio $	32,892	3,011	25,055	2,995	2,034	111,187	120,668	111,581	121,026	91,422	Bank of Coral Gables		2,034	2,995	25,055	3,011	32,892
					Intercontinental Bank holds a greater bond portfolio than Bank of Coral Gables. Perhaps, that is related to the Intercontinental's strong investment in Federal Funds during 2008-09. Intercontinental Bank could be holding more liquid assets in order to increases its liquidity in the short-term.
LOANS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		11,678	8,100	11,458	8,210	13,401
Real Estate $	87,118	115,146	92,790	119,789	124,620	13,401	8,210	11,458	8,100	11,678	Bank of Coral Gables		124,620	119,789	92,790	115,146	87,118
					Intercontinental Bank has less exposure to real estate loans than Bank of Coral Gables. However, Bank of Coral Gables's real estate loans have been declining during last years. This trend could be explained by the toxic loans' write-off. On the other hand, Intercontinental Bank's loans have increased.
LOANS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		8,887	5,570	5,225	5,081	5,820
Commercial $	6,367	1,560	5,683	1,553	2,544	5,820	5,081	5,225	5,570	8,887	Bank of Coral Gables		2,544	1,553	5,683	1,560	6,367
					While Bank of Coral Gables has strongly increased its commercial loan portfolio during the last year, Intercontinental Bank shows a mild decline of those loans since 2008. However, it appears to be a timid recuperation for Intercontinetal during last year.
LOANS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		765	792	820	889	974
Consumer $	184	0	292	1	3	974	889	820	792	765	Bank of Coral Gables		3	1	292	0	184
					Bank of Coral Gables's number of consumer loans has increased in the last year. By the contrary, Intercontinental Bank's consumer loan portfolio has been increasing with a good pace during the whole period.
LOANS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		0	0	0	0	0
Agricultural $	0	0	0	0	0	0	0	0	0	0	Bank of Coral Gables		0	0	0	0	0
					None of the banks are involved in Agricultural lending.
LOANS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		21,747	14,952	18,590	14,933	21,065
Total Loans $	93,682	120,696	102,536	125,797	131,200	21,065	14,933	18,590	14,952	21,747	Bank of Coral Gables		131,200	125,797	102,536	120,696	93,682
					There is an appreciable difference between the banks' amounts of loans, which clearly shows hightest levels of lending for Bank of Coral Gables. By the contrary, Intercontinental Bank have a comparative low amount of lending and seems to be reaching its 08' levels. However, Bank of Coral Gables has steadly decrease its loan's portfolio even after the crisis but only exception at beginning 2010.
ALLOWANCE FOR LOAN LOSSES	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		117	182	217	235	224
ALL $	3,374	3,064	3,422	3,298	1,535	224	235	217	182	117	Bank of Coral Gables		1,535	3,298	3,422	3,064	3,374
					Bank of Coral Gables' exposition to subprime loans could be the reason why it have increased its allowances for loans. By the contrary, Intercontinental Bank still expecting to see losses in its loans have separated a much less significant amount to cover it. During last year, Bank of Coral Gables' allowance has increased even thought its total loan are decresing.
NET LOANS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		21,630	14,770	18,373	14,698	20,841
Net Loans & Leases $	90,308	117,932	99,114	122,499	130,268	20,841	14,698	18,373	14,770	21,630	Bank of Coral Gables		130,268	122,499	99,114	117,932	90,308
					Intercontinemtal Bank seems to be reaching the 08' levels of lending. However, Bank of Coral Gables has steadly decrease its loan's portfolio even after the crisis but only exception at beginning 2010.
FIXED ASSETS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		619	551	585	549	577
Fixed Assets $	201	345	241	383	481	577	549	585	551	619	Bank of Coral Gables		481	383	241	345	201
					Intercontinental Bank shows a very stable trend; however, Bank of Coral Gables' fixed assets have decreasing for motre than 25% during the period. Perhaps, Bank of Coral Gables has lessen its size in order to reducing its expenses.
TOTAL ASSETS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		122,951	147,305	142,755	148,100	138,215
Total Assets $	145,320	139,980	151,841	158,612	160,227	138,215	148,100	142,755	147,305	122,951	Bank of Coral Gables		160,227	158,612	151,841	139,980	145,320
					Bank of Coral Gables' total assets have been decreasing almost a 10% during the period. It is possible that as its loans turn sour it should sacrifice liquidity and assets to cover its loan losses. On the other hand, Intercontinental Bank has been increasing its assets. Maybe this is consequence of a more conservative strategy of investment: a lot of bonds, well-selected commercial loans, moderate consumers loan, and low level of loan losses.
BALANCE SHEET- LIABILITIES
Numbers are in thousands (000)
DEPOSITS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		19,226	24,977	25,620	30,015	25,328
Non-Interest Bearing $	12,944	7,269	12,029	7,216	5,175	25,328	30,015	25,620	24,977	19,226	Bank of Coral Gables		5,175	7,216	12,029	7,269	12,944
					Both banks have experienced growth in this category. However, Bank of Coral Gables has experienced more growth than Intercontinental. This might be related to a superior involvement in the local community.
DEPOSITS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		131,517	170,273	190,508	197,113	190,044
Interest Bearing $	130,028	129,977	135,477	149,230	131,701	190,044	197,113	190,508	170,273	131,517	Bank of Coral Gables		131,701	149,230	135,477	129,977	130,028
					Intercontinental Bank has been incresing its interest bearing deposits during the period; however, Bank of Coral Gables has experienced a decrease since 2009. In resume, Bank of Coral Gables has seen a slight reduction in its interest bearing deposit.
DEPOSITS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		101,588	121,000	120,702	126,550	118,995
Total Deposits $	135,844	126,243	141,817	144,347	130,716	118,995	126,550	120,702	121,000	101,588	Bank of Coral Gables		130,716	144,347	141,817	126,243	135,844
					Both Banks has increased their total deposits. However, Bank of Coral Gables has done a better job increasing its deposits while Intercontinental Bank has seen a decrease since 2010. The difference might be in that Intercontinental Bank is less active in the community and this might be an obstacle in retaining and or attracting new customers.
BORROWINGS	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		6,725	10,856	5,647	5,676	2,520
Federal Funds Purchased $	0	0	0	0	0	2,520	5,676	5,647	10,856	6,725	Bank of Coral Gables		0	0	0	0	0
					Intercontinental Bank is in deeper liquidity problems than Bank of Coral Gables. As it can be seen, Interconental Bank has consistently purchase federal funds, which basically means that is has taken overnight loans with other banking institutions. However, since 2009, Intercontinental Bank has been reducing its need for Federal Funds Purchases. Perhaps, a sign that the worst had happenned.
TOTAL LIABILITIES	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank		108,551	131,965	126,462	132,493	121,731
Total Liabilities $	136,184	127,611	142,193	145,548	141,100	121,731	132,493	126,462	131,965	108,551	Bank of Coral Gables		141,100	145,548	142,193	127,611	136,184
					Bank of Coral Gables have seen a sligh decline of its total liabilities. In the case of Intercontinental Bank, it has had a moderate increase in its liabilities. Both trends are related to how deposits have behave during this period.
		BALANCE SHEET- STOCKHOLDERS EQUITY
			Numbers are in thousands (000)
EQUITY	Bank of Coral Gables					Intercontinental Bank						c p	2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	4,150	4,150	4,150	4,150	4,150
Common and Preferred Stock	11,921	9,622	11,263	9,622	9,605	4,150	4,150	4,150	4,150	4,150		Bank of Coral Gables	9,605	9,622	11,263	9,622	11,921
					Both bank does not have preferred stocks. The number of stocks outstanding for Intercontinental Bank is minor compared to Bank of Coral Gables. Only, Bank of Coral Gables has increased its number of stock since 2010.
EQUITY	Bank of Coral Gables					Intercontinental Bank						s	2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	4,200	4,200	4,200	4,200	4,200
Surplus $	10,084	10,019	10,069	9,990	9,847	4,200	4,200	4,200	4,200	4,200		Bank of Coral Gables	9,847	9,990	10,069	10,019	10,084
					Bank of Coral Gables has been able to sell more of its stock above par value. Intercontinental Bank also shows a positive trend of increasing surplus capital.
EQUITY	Bank of Coral Gables					Intercontinental Bank						re	2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	6,050	6,990	7,943	7,257	8,134
Retained Earnings $	-12,847	-7,283	-12,023	-6,543	-359	8,134	7,257	7,943	6,990	6,050		Bank of Coral Gables	-359	-6,543	-12,023	-7,283	-12,847
					As banks incurr losses, their retained earnings start to decrease. Bank of Coral Gables has suffered a major drop in retained earnings. This can be attributed to the loans that started to default as the financial crisis worsened. On the other hand, Intercontinental Bank, looks to be increasing its retaining earnings.
EQUITY	Bank of Coral Gables					Intercontinental Bank						dp	2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	0	0	0	0	0
Dividends Paid $	0	0	0	0	0	0	0	0	0	0		Bank of Coral Gables	0	0	0	0	0
					Because of the financial crisis, many banks have been obligated to not distribute any dividends to their shareholders. In this case, both banks do not have distributed any dividends.
EQUITY	Bank of Coral Gables					Intercontinental Bank						tse	2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	14,400	15,340	16,293	15,607	16,484
Total Stockholder Equity $	8,134	7,257	7,943	6,990	6,050	16,484	15,607	16,293	15,340	14,400		Bank of Coral Gables	6,050	6,990	7,943	7,257	8,134
					Both banks have seen a increase in their equities. Intercontinental Bank has an relative greater equity than Bank of Coral Gables.
EQUITY	Bank of Coral Gables					Intercontinental Bank						tlae	2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	122,951	147,305	142,755	148,100	138,215
Total Liabilities and Equity $	145,320	139,980	151,841	158,612	160,227	138,215	148,100	142,755	147,305	122,951		Bank of Coral Gables	160,227	158,612	151,841	139,980	145,320
					Both of this banks have seen the combination of equity and liability declining consistently since 2008. Bank of Coral Gables have experienced a decrease in its total liabilities and equity during all period; however, Intercontinental Bank only has presented this declination during the lasst year.
		INCOME STATEMENT- INCOME
			Numbers are in thousands (000)
INCOME	Bank of Coral Gables					Intercontinental Bank						interest income	2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	5,673	4,762	4,335	1,175	1,073
Interest Income $	1,513	1,726	6,360	7,779	8,939	1,073	1,175	4,335	4,762	5,673		Bank of Coral Gables	8,939	7,779	6,360	1,726	1,513
					Both banks have been struggling with income generation. They suffered a harsh decline in its interest income during the whole period. However, the Bank of Coral Gables' reduction on interest income has been more notorius as effect of the financial crisis. Intercontinental Bank also experienced a sharp decline.
INCOME	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	3,657	3,310	3,170	896	710
Investment Income $	170	12	189	55	112	710	896	3,170	3,310	3,657		Bank of Coral Gables	112	55	189	12	170
					For Intercontinental Bank, investment income is a major source of income. Contrary to others banks in its peer group, Intercontinental's revenues are not principally generated by the bank's operations. Bank of Coral Gables had a minor component of its revenues that is generated by investments.
INCOME	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	1,834	1,626	1,614	403	265
Non-Interest Income $	102	18	-172	97	78	265	403	1,614	1,626	1,834		Bank of Coral Gables	78	97	-172	18	102
					Bank of Coral Gables shows extremely weaknes in this category since its income has been decreasing during the whole period and even has reached negative values in 2010. By the contrary, Intercontinetal Bank have experienced a moderate reduction of this income.
INCOME	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	11,164	9,698	9,119	2,474	2,048
Total Income $	1,785	1,756	6,377	7,931	9,129	2,048	2,474	9,119	9,698	11,164		Bank of Coral Gables	9,129	7,931	6,377	1,756	1,785
					Both financial institutions, Bank of Coral Gables and Intercontinental Bank, have been struggling in their total income, which have been on a steep decline during the whole period.
		INCOME STATEMENT- EXPENSES
			Numbers are in thousands (000)
EXPENSE	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	2,675	1,812	1,420	375	301
Interest Expense $	390	570	1,959	4,121	4,681	301	375	1,420	1,812	2,675		Bank of Coral Gables	4,681	4,121	1,959	570	390
					Intercontinental Bank and Bank of Coral Gables both are seeing a sharp decrease in their cost of funds during the whole period. Perhaps, the combination of reducing expenses, lower rate of interests, and downsizing have contributed to this savings.
EXPENSE	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	2,948	3,020	3,154	756	733
Salaries and Benefits $	1,574	1,349	4,941	3,830	2,757	733	756	3,154	3,020	2,948		Bank of Coral Gables	2,757	3,830	4,941	1,349	1,574
					Bank of Coral Gables' salaries and benefits have increased almost the double during the period. However, Intercontinental Bank's expenses in salaries and benefits are almost the same.
EXPENSE	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	528	160	150	55	0
Provisions for Loan Losses $	474	565	4,769	6,109	1,024	0	55	150	160	528		Bank of Coral Gables	1,024	6,109	4,769	565	474
					Bank of Coral Gables has allocated substancial amounts of money for covering loans' losses during the period; however, it appears that in 2010 this expenses began to decrease. On the other hand, Intercontinental Bank's low exposure to subprime loans have avoid it to separate signicant funds to cover loans' losses.
EXPENSE	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	452	568	536	158	114
Taxes $	0	0	0	0	0	114	158	536	568	452		Bank of Coral Gables	0	0	0	0	0
					Intercontinental Bank has been paying taxes according to its improvement in operations; however, Bank of Coral Gables has confronted a more difficult situation. It has been declaring operating losses during the complete period, and receiving tax creditds instead of paying taxes.
EXPENSE	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	6,576	5,550	5,257	1,343	1,148
Total Expenses $	2,438	2,484	11,669	14,060	8,462	1,148	1,343	5,257	5,550	6,576		Bank of Coral Gables	8,462	14,060	11,669	2,484	2,438
					Bank of Coral Gables has allocated substancial amounts of money for covering loans' losses; aditionally, salaries and benefits have increased almost the double during the period. Both factors have contributed to increasing expenses for Bank of Coral Gables. On the other hand, Intercontinental Bank's low exposure to subprime loans, and relative low salaries and benefits expenses, have allowed it to reduce its total expenses.
NET INCOME	Bank of Coral Gables					Intercontinental Bank							2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008		Intercontinental Bank	947	940	951	267	190
Net Income $	-823	-740	-5,481	-6,184	555	190	267	951	940	947		Bank of Coral Gables	555	-6,184	-5,481	-740	-823
					Intercontinental Bank has reached a positive, decent net income since 2008. By the contrary, Bank of Coral Gables is reporting heavy-negative losses during the same period, and it appears to not foreseing an end to this devasting situation.

Cash and Due

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 6416 2760 1725 2413 1790 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 1101 3701 729 3091 585

Fixed Assets

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 619 551 585 549 577 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 481 383 241 345 201

Total Assets

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 122951 147305 142755 148100 138215 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 160227 158612 151841 139980 145320

Non-Interest Bearing Deposit

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 19226 24977 25620 30015 25328 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 5175 7216 12029 7269 12944

Interest Bearing Deposits

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 131517 170273 190508 197113 190044 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 131701 149230 135477 129977 130028

Total Deposits

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 101588 121000 120702 126550 118995 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 130716 144347 141817 126243 135844

Federal Funds Purchase

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 6725 10856 5647 5676 2520 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 0 0 0 0 0

Total Liabilities

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 108551 131965 126462 132493 121731 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 141100 145548 142193 127611 136184

Common and Preferred Stock

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 4150 4150 4150 4150 4150 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 9605 9622 11263 9622 11921

Surplus

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 4200 4200 4200 4200 4200 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 9847 9990 10069 10019 10084

Retained Earnings

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 6050 6990 7943 7257 8134 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q -359 -6543 -12023 -7283 -12847

Federal Funds Sold

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 1689 0 0 0 0 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 16833 5355 0 2040 0

Total Shareholders Equity

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 14400 15340 16293 15607 16484 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 6050 6990 7943 7257 8134

Total Liabilities and Equity

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 122951 147305 142755 148100 138215 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 160227 158612 151841 139980 145320

Interest Income

Intercontinental Bank 2008 2009 2010 5673 4762 4335 Bank of Coral Gables 2008 2009 2010 8939 7779 6360

Investment Income

Intercontinental Bank 2008 2009 2010 3657 3310 3170 Bank of Coral Gables 2008 2009 2010 112 55 189

Non-interest Income

Intercontinental Bank 2008 2009 2010 1834 1626 1614 Bank of Coral Gables 2008 2009 2010 78 97 -172

Total Income

Intercontinental Bank 2008 2009 2010 11164 9698 9119 Bank of Coral Gables 2008 2009 2010 9129 7931 6377

Interest Expense

Intercontinental Bank 2008 2009 2010 2675 1812 1420 Bank of Coral Gables 2008 2009 2010 4681 4121 1959

Salaries and Benefits

Intercontinental Bank 2008 2009 2010 2948 3020 3154 Bank of Coral Gables 2008 2009 2010 2757 3830 4941

Provisions for Loans Losses

Intercontinental Bank 2008 2009 2010 528 160 150 Bank of Coral Gables 2008 2009 2010 1024 6109 4769

Taxes

Intercontinental Bank 2008 2009 2010 452 568 536 Bank of Coral Gables 2008 2009 2010 0 0 0

Bond Portfolio

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 91422 121026 111581 120668 111187 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 2034 2995 25055 3011 32892

Total Expenses

Intercontinental Bank 2008 2009 2010 6576 5550 5257 Bank of Coral Gables 2008 2009 2010 8462 14060 11669

Net Income

Intercontinental Bank 2008 2009 2010 947 940 951 Bank of Coral Gables 2008 2009 2010 555 -6184 -5481

Real Estate

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 11678 8100 11458 8210 13401 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 124620 119789 92790 115146 87118

Commercial

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 8887 5570 5225 5081 5820 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 2544 1553 5683 1560 6367

Consumers

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 765 792 820 889 974 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 3 1 292 0 184

Total Loans

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 21747 14952 18590 14933 21065 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 131200 125797 102536 120696 93682

Net Loans

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 21630 14770 18373 14698 20841 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 130268 122499 99114 117932 90308

Allowances for Loans Losses

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 117 182 217 235 224 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 1535 3298 3422 3064 3374

III. Ratio Analysis

III. Comparative Financial Analysis
RATIO ANALYSIS
												2008	2009	2010	2010-1Q	2011-1Q
RATIO ANALYSIS	Bank of Coral Gables					Intercontinental Bank					Intercontinental Bank	0.77%	19.81%	-3.09%	10.31%	-6.67%
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Bank of Coral Gables	38.14%	-1.01%	-4.27%	-21.31%	3.81%
Return on Assets	3.81%	-21.31%	-4.27%	-1.01%	38.14%	-6.67%	10.31%	-3.09%	19.81%	0.77%	Peer Group 6	8.66%	4.85%	0.72%	3.91%	1.10%
			Peer Group 6
			2011-1Q	2010-1Q	2010	2009	2008
			1.10%	3.91%	0.72%	4.85%	8.66%
						Both banks have experienced negative returns on assets since 2008. Despite, a decline on ROA was experienced by the Peer Group six, the average decline in this group was not as strong as in the case of the two banks studied. However, in the last year, Bank of Coral Gables has experienced a recuperation and posted positve returns.
												2008	2009	2010	2010-1Q	2011-1Q
RATIO ANALYSIS	Bank of Coral Gables					Intercontinental Bank					Intercontinental Bank	6.79%	6.30%	6.00%	6.90%	4.64%
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Bank of Coral Gables	2.99%	-38.53%	-49.88%	-23.28%	-35.05%
Return on Equity	-35.05%	-23.28%	-49.88%	-38.53%	2.99%	4.64%	6.90%	6.00%	6.30%	6.8%	Peer Group 6	3.40%	-4.08%	0.73%	1.40%	2.67%
			Peer Group 6
			2011-1Q	2010-1Q	2010	2009	2008
			2.67%	1.40%	0.73%	-4.08%	3.40%
						In comparison to its peer group, Intercontinental Bank had a best trend ; however, Bank of Coral Gables shows a complete underperformed pattern againts its peers as well as Intercontinental. Bank of Coral Gables has reached very disappointed ratios that indicates constant losses in shareholders equity.
RATIO ANALYSIS	Bank of Coral Gables					Intercontinental Bank						2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank	61.01%	65.99%	69.63%	62.81%	70.68%
Efficiency Ratio	70.68%	62.81%	69.63%	65.99%	61.01%	70.68%	62.81%	69.63%	65.99%	61.0%	Bank of Coral Gables	63.6%	102.00%	116.84%	114.91%	128.49%
											Peer Group 6	70.50%	78.40%	75.66%	76.76%	75.86%
			Peer Group 6
			2011-1Q	2010-1Q	2010	2009	2008
			128.49%	114.91%	116.84%	102.00%	63.58%
						Bank of Coral Gables shows a really high level for this ratio, which could represent either a fall in revenues or management's inability to control expenses in the organization. On the other hand, Intercontinental Bank shows better ratios during this period than its peer group.
												2008	2009	2010	2010-1Q	2011-1Q
RATIO ANALYSIS	Bank of Coral Gables					Intercontinental Bank					Intercontinental Bank	0.54%	1.22%	1.17%	1.57%	1.06%
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Bank of Coral Gables	1.16%	2.62%	3.34%	2.53%	3.60%
Loan Charge-Offs	3.60%	2.53%	3.34%	2.62%	1.16%	1.06%	1.57%	1.17%	1.22%	0.5%	Peer Group 6	1.48%	1.94%	2.08%	1.97%	2.15%
			Peer Group 6
			2011-1Q	2010-1Q	2010	2009	2008
			2.15%	1.97%	2.08%	1.94%	1.48%
						Intercontinental Bank shows a better performance than its peers on group six; however, Bank of Coral Gables' ratios are well above its peers' average. This situation is consequence of the high exposure that this bank have to subprime loans in its portfolio.
RATIO ANALYSIS	Bank of Coral Gables					Intercontinental Bank						2008	2009	2010	2010-1Q	2011-1Q
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Intercontinental Bank	6.15%	7.37%	7.51%	7.41%	7.27%
Assets Per Employee (millions)	7.27%	7.41%	7.51%	7.37%	6.15%	7.27%	7.41%	7.51%	7.37%	6.2%	Bank of Coral Gables	9.4%	7.93%	6.90%	6.36%	5.81%
											Peer Group 6	5.22%	5.46%	5.39%	5.56%	5.51%
			Peer Group 6
			2011-1Q	2010-1Q	2010	2009	2008
			5.81%	6.36%	6.90%	7.93%	9.43%
						Stable banks should have minimum variations in this ratio. However, Intercontinental Bank shows an increase as consequence of either using less employees or increasing the value of its assets. By the contrary, Bank of Coral Gables shows a decrease, mainly, because the value of the assets which were mostly mortgage loans have been declining.
												2008	2009	2010	2010-1Q	2011-1Q
RATIO ANALYSIS	Bank of Coral Gables					Intercontinental Bank					Intercontinental Bank	20	20	19	20	19
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008	Bank of Coral Gables	17	20	22	22	25
Number of Employees	25	22	22	20	17	19	20	19	20	20
						Intercontinental Bank has had a stable number of employees during the period; however, Bank of Coral Gables has increased its employees even though the bank's performance is not good. This is a non-sense because, generally, management decides to reduce the workforce when business cannot perform the way they are intended.
RATIO ANALYSIS	Bank of Coral Gables					Intercontinental Bank
	2011-1Q	2010-1Q	2010	2009	2008	2011-1Q	2010-1Q	2010	2009	2008
Return on Assets	3.81%	-21.31%	-4.27%	-1.01%	38.14%	-6.67%	10.31%	-3.09%	19.81%	0.77%
Return on Equity	-35.05%	-23.28%	-49.88%	-38.53%	2.99%	4.64%	6.90%	6.00%	6.30%	6.79%
Efficiency Ratio	70.68%	62.81%	69.63%	65.99%	61.01%	70.68%	62.81%	69.63%	65.99%	61.01%
Loan Charge Offs	3.60%	2.53%	3.34%	2.62%	1.16%	1.06%	1.57%	1.17%	1.22%	0.54%
Assets per Employee (millions)	7.27%	7.41%	7.51%	7.37%	6.15%	7.27%	7.41%	7.51%	7.37%	6.15%
Number of Employees	25	22	22	20	17	19	20	19	20	20
RATIO ANALYSIS	Peer Group 6
	2011-1Q	2010-1Q	2010	2009	2008
Return on Assets	1.10%	3.91%	0.72%	4.85%	8.66%
Return on Equity	2.67%	1.40%	0.73%	-4.08%	3.40%
Efficiency Ratio	128.49%	114.91%	116.84%	102.00%	63.58%
Loan Charge Offs	2.15%	1.97%	2.08%	1.94%	1.48%
Assets per Employee (millions)	5.81%	6.36%	6.90%	7.93%	9.43%

Return on Assets

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 7.7000000000000002E-3 0.1981 -3.09E-2 0.1031 -6.6699999999999995E-2 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 0.38140000000000002 -1.01E-2 -4.2700000000000002E-2 -0.21310000000000001 3.8100000000000002E-2 Peer Group 6 2008 2009 2010 2010-1Q 2011-1Q 8.6599999999999996E-2 4.8500000000000001E-2 7.1999999999999998E-3 3.9100000000000003E-2 1.0999999999999999E-2

Return on Equity

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 6.7900000000000002E-2 6.3E-2 0.06 6.9000000000000006E-2 4.6399999999999997E-2 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 2.9899999999999999E-2 -0.38529999999999998 -0.49880000000000002 -0.23280000000000001 -0.35049999999999998 Peer Group 6 2008 2009 2010 2010-1Q 2011-1Q 3.4000000000000002E-2 -4.0800000000000003E-2 7.300000 0000000001E-3 1.4E-2 2.6700000000000002E-2

Efficiency Ratio

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 0.61009999999999998 0.65990000000000004 0.69630000000000003 0.62809999999999999 0.70679999999999998 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 0.63580000000000003 1.02 1.1684000000000001 1.1491 1.2848999999999999 Peer Group 6 2008 2009 2010 2010-1Q 2011-1Q 0.70499999999999996 0.78400000000000003 0.75660000 000000005 0.76759999999999995 0.75860000000000005

Loan Charge-Offs

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 5.4000000000000003E-3 1.2200000000000001E-2 1.17E-2 1.5699999999999999E-2 1.06E-2 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 1.1599999999999999E-2 2.6200000000000001E-2 3.3399999999999999E-2 2.53E-2 3.5999999999999997E-2 Peer Group 6 2008 2009 2010 2010-1Q 2011-1Q 1.4800000000000001E-2 1.9400000000000001E-2 2.07999999999999 99E-2 1.9699999999999999E-2 2.1499999999999998E-2

Assets per Employee (millions)

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 6.1499999999999999E-2 7.3700000000000002E-2 7.51E-2 7.4099999999999999E-2 7.2700000000000001E-2 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 9.4299999999999995E-2 7.9299999999999995E-2 6.9000000000000006E-2 6.3600000000000004E-2 5.8099999999999999E-2 Peer Group 6 2008 2009 2010 2010-1Q 2011-1Q 5.2200000000000003E-2 5.4600000 000000003E-2 5.3900000000000003E-2 5.5599999999999997E-2 5.5100000000000003E-2

Number of Employees

Intercontinental Bank 2008 2009 2010 2010-1Q 2011-1Q 20 20 19 20 19 Bank of Coral Gables 2008 2009 2010 2010-1Q 2011-1Q 17 20 22 22 25

IV. Regulatory Actions

IV. Regulatory Enforcement Actions
Bank A							Bank B
Bank of Coral Gables							Intercontinental Bank

Bank of Coral Gables has had a Consent Order (FDIC-09-690b OFR 0697-FI-12/09) from the Federal Deposit Insurance Corporation established on February 11, 2010.

Intercontinental Bank has not had any Cease and Desist Order, Memos of Understanding, or any other regulatory enforcement actions against it. Search results on the FDIC show no results.

V. SWOT Analysis

V. SWOT Analysis
	Bank A	Bank B
	Bank of Coral Gables	Intercontinental Bank
Strengths	Good branch location	Increasing consumers loans that usually have higher rates Low exposure to subprime loans Stable source of income from investment Stable return on equity Low efficiency ratio Good branch location
Weaknesses	Middle exposure to commercial loans Hight exposure to subprime loans Increasing allowances to loans losses Decreasing loan's portfolio Low return on assets Major drop in retained earnings Low return on equity	Middle exposure to commercial loans Dependence on federal funds purchases Website is not up to date and offers little information
Opportunities	Adopt new services fees as manner to increase non-interest income Reduce non-interest expenses	Strong investment in bonds could be converted to cash in order to funding futures loans when interest rate increases and overall financial situation improves
Threats	State of Florida has had a slow recuperation of employment and real state market Middle-to-high concern about liquidity in the future term	State of Florida has had a slow recuperation of employment and real state market Moderate concern about liquidity in the future term

VI. Conclusions and VII. Biblio

VI. Conclusion and Decision

1. Would you place a personal deposit of $1 million or more in these two banks?

After careful analysis of Bank of Coral Gables and Intercontinental Bank, I have decided that I would not place a deposit of $1 million in any of the two banks. After reviewing the financial statements for both institutions, I found serious liquidity problems with Bank of Coral Gables. Aditionally, this bank have a negative exposure to commercial and subprime loans, which has rocketed its allowances for loans losses. All mentioned above has contributed to a decreasing loan's portfolio, return on assets, and a major drop in retained earnings. Both banks have also experienced a decline in their total deposits wich can be attributed to their inability to maintain customers. Finally, Intercontinental Bank has needed in a regular basis of federal funds purchases to operate.

2. Would you invest $500,000 in these two banks?

I have decided that I would not place an investment of half a million in any of those banks. The reasons to avoid becoming a shareholder are similar to those mentioned on the first response to avoid becoming a depositor. Equally, from a risk-return perspective, there is not strong economic expectations for capital gains or dividens on being an owner on those financial institutions. Additionally, I have taken on account the opportunity cost associated with this investment. Right now, in my humble opinion, there are more secured and profitable ways to invest such amount of money, in other more solid banks for instance.

3. If you were a member of the Board of Directors of a third bank and you sat on that Bank's Credit Committee, would you grant a $1 million line of credit for Overnight or Term Federal Funds to these two banks?

If I were a member of the Board of Directors of a third bank, I would not grant to Bank of Coral Gables a $1 million line of credit for overnight after considering the financial, liquidity and efficiency ratios for this bank. However, I will seriously ponder to offert a federal fund purchase to Intercontinental Bank if the expected return on the operation is according to its risk level. My decision relay on the study of the Intercontinental's operations. This bank has been borrowing for the last three years this kind of funds, and so far it looks to being accomplish its obligations. Additionally, from an financial perspective, it seems to be a more solid institution than Bank of Coral Gables because Intercontinental has a strong position on bonds, and a consistent flow of income. Finally, Intercontinental have a lower number of bad loans; consequently, it is expected to suffer less defaults on their mortgages than Bank of Coral Gables.

VII. Bibliography

Bank of Coral Gables Website:

http://www.bankofcoralgables.com/index.asp

Intercontinental Bank Website:

http://www.intercontinentalbk.com/

Consent order for Bank of Coral Gables:

http://www.fdic.gov/bank/individual/enforcement/2010-02-11.pdf

FDIC Bank of Coral Gables Individual Bank Information:

https://cdr.ffiec.gov/public/Reports/UbprReport.aspx?rptCycleIds=64,60,63,58,52&rptid=283&idrssd=3447455

FDIC Intercontinental Bank Individual Bank Information:

https://cdr.ffiec.gov/public/Reports/UbprReport.aspx?rptCycleIds=64,63,58,52&rptid=283&idrssd=3122828

Federal Reserve Bank of St. Louis' banking structure analysis website:

http://cassidi.stlouisfed.org/institutions/3887323

http://www.bankofcoralgables.com/index.asp http://www.intercontinentalbk.com/ http://www.fdic.gov/bank/individual/enforcement/2010-02-11.pdf https://cdr.ffiec.gov/public/Reports/UbprReport.aspx?rptCycleIds=64,60,63,58,52&rptid=283&idrssd=3447455 https://cdr.ffiec.gov/public/Reports/UbprReport.aspx?rptCycleIds=64,63,58,52&rptid=283&idrssd=3122828 http://cassidi.stlouisfed.org/institutions/3887323