Mark Hoppe said it has taken more than 990 days, but the chief executive of Taylor Capital Group Inc. said the parent of Cole Taylor Bank has finally turned a quarterly profit.
“Wow, that feels good,” Hoppe, who joined the Chicago-based company from LaSalle Bank in 2008, told analysts during a conference call Thursday morning to discuss third quarter earnings.
But he said he’s “not standing on an aircraft carrier like George W. Bush did.”
For years, Democrats have derided President Bush’s appearance on an aircraft carrier proclaiming that the Iraq War was a “mission accomplished” when the war is still ongoing.
Cole Taylor’s war is not over due to the uncertain economic environment, but the $4.66 billion-asset bank has won some battles, Hoppe said.
He expressed only “cautious optimism” that credit quality trends will continue to improve.
“We’ll win some and lose some but we’ll continue to fight,” he said.
Taylor stock was up 2.9 percent to $12.59 a share in mid-day trading.
Cole Taylor Bank has added 67 new commercial and industrial, or business banking, customers since start of 2010. It has also added 26 new customers for its asset-based lending unit.
But the bank noted that business clients, while “resilient,” aren’t boosting or even drawing on credit lines and are avoiding buying new equipment or plants. They’re also scared to change banks.
Cole Taylor, which earlier this year launched a new mortgage lending business, wants more retail offices for its mortgage unit. It said it’s also comfortable with its mortgage process. The mortgage unit has grown to 120 workers so far and made $240 million in mortgages in the third quarter.
Asked about doing deals, Hoppe says the bank is always looking for opportunities.
Cole Taylor reported that it has boosted the level of loan-loan reserves for bad loans. By doing so, it’s less likely to have to build those reserves down the road, a process that cuts into profits.
Cole Taylor Bank also is now operating in 18 states but “we do have centralized decision making,” the company said.
Net income for the third quarter of 2010 was $33.4 million, compared to a net loss of $2.4 million in the same period a year ago.
To read a copy of the announcement, click here.
