Ocean Bank lays off 78

From the South Florida Business Journal:

Ocean Bank notified 78 employees Friday that they had been laid off.

...

The bank’s expenses will be reduced by about $4.3 million a year after the workforce reductions, Macedo said.

I suppose this is a step in the right direction, but it is way too little way too late. Back to the article:

With 19.5 percent of its loans noncurrent on June 30, Ocean Bank is among the most financially troubled South Florida banks. After losing $204.7 million in 2008, the bank lost $89.5 million in the first six months of this year. The bank has been under a cease and desist order from regulators since 2004.

 ...

Its shareholders in Venezuela supported the bank, which has $4.4 billion in assets, with a $40 million capital injection last year. Capital levels exceeded regulatory requirements in the second quarter.

According to Carson Medlin's Q2 2009 Florida Asset Quality Review Ocean Bank had a Texas Ratio of 160.8% due to the extremely high level of NPAs. Making it a high risk for failure. The way the CRE market appears to be headed it will need another capital injection soon to avoid a meeting with the FDIC on Friday.

Update:
A perfect quote from a WSJ article titled Banks With 20% Unpaid Loans at 18-Year High Amid Recovery Doubt via Calculated Risk (both worth a read)

For banks with 20 percent of loans overdue, “either they’ve got a massive amount of capital, or the FDIC just hasn’t gotten around to them,” said Jeff Davis, an analyst with FTN Equity Capital Markets in Nashville.

I wouldn't say that Ocean qualifies as having a massive amount of capital...