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In a byproduct of the recession, banking regulators stiff-armed Tony Leo in his attempts to open a new bank in Sarasota.
But Leo, who once ran the administration and oversight divisions of a $4 billion, 81-office bank in Pennsylvania, is still getting into the local banking market. Only now he will do it as the new chief executive officer of Englewood-based Peninsula Bank.
Peninsula is one of a handful of Gulf Coast community banks that are facing daunting challenges in raising enough capital to replenish loan loss reserves and satisfy regulators.
The task for Peninsula, which has branches on both Florida coasts, is especially acute: The bank, with $638 million in assets as of June 30, reported a net loss of $12.9 million in the second quarter. It also recently undertook an in-depth review of its loan portfolio that resulted in a one-time, pre-tax charge of $19.8 million.
Moreover, the bank's total risk-based capital ratio as of June 30 was less than 7% — a figure that falls below the 8% federal regulators normally use to signify a well-capitalized bank.
Leo, who couldn't be reached for comment, is replacing Simon Portnoy, Peninsula's longtime CEO and chairman who retired June 30. Leo's appointment, which was made late last month by the bank's board of directors, was preliminarily approved by the Florida Office of Financial Regulation.
But Leo will remain acting CEO until receiving official regulatory approval from a bevy of agencies — a position he is already familiar with. In the summer and fall of 2008, Leo and a former colleague from Pennsylvania tried to launch a de novo bank for the Sarasota market, but it was the wrong time for regulators who weren't open to new banks.
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