Safe and Sound

Gibraltar Private Bank & Trust Co.

Coral Gables, FL
4
Star Rating
Gibraltar Private Bank & Trust Co. is a Coral Gables, FL-based, FDIC-insured bank that opened its doors in 1984. Regulatory filings show the bank having equity of $143.6 million on $1,578,561,000 in assets, as of June 30, 2017.

Thanks to the efforts of 278 full-time employees in 8 offices in multiple states, the bank holds loans and leases worth $1.41 billion, $1.37 billion of which are for real estate. U.S. bank customers currently have $1.09 billion in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, Gibraltar Private Bank & Trust Co. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the bank faired on the three major criteria Bankrate used to grade American banks.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for accountholders during times of financial instability for the bank. It follows then that a bank's level of capital is a key measurement of an institution's financial fortitude. When looking at safety and soundness, the higher the capital, the better.
Gibraltar Private Bank & Trust Co. received a score of 10 out of a possible 30 points on our test to measure the adequacy of a bank's capital, falling short of the national average of 13.38.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Gibraltar Private Bank & Trust Co.'s Tier 1 capital ratio was 12.08 percent, higher than the 6 percent level considered adequate by regulators, but under the national average of 25.16 percent. The higher the capital ratio, the better the bank will be able to stand up to financial challenges.

Overall, Gibraltar Private Bank & Trust Co. held equity amounting to 9.10 percent of its assets, which was lower than the national average of 12.10 percent.

Asset Quality Score

This test is intended to try to understand how the bank's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A bank with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a future failure.

Gibraltar Private Bank & Trust Co. beat out the national average of 37.62 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A useful indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of June 30, 2017, 0.62 percent of Gibraltar Private Bank & Trust Co.'s loans were noncurrent -- in other words, they were more than 90 days past due or were in non-accrual status. That's below the national average of 1.04 percent.

Banks keep a reserve to handle troubled assets known as an "allowance for loan and lease losses." How large that reserve is can be a handy indicator when evaluating a bank's ability to manage problem assets, especially when compared to the total amount of problematic loans. Unfortunately, the FDIC did not provide information on Gibraltar Private Bank & Trust Co.'s loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Conversely, losses reduce a bank's ability to do those things.

Gibraltar Private Bank & Trust Co. scored 6 out of a possible 30 on Bankrate's test of earnings, less than the national average of 16.52.

One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Gibraltar Private Bank & Trust Co. was 2.40 percent, below the national average of 9.28 percent.

The bank earned net income of $1.7 million on total equity of $143.6 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.21 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.