Perri of Gold Coast Bank addresses symposium, sponsored by LI NYSCAR

Gold Coast Bank president Joseph Perri warned that more recently established-or denovo-banks will run into capital issues and be forced to merge. Perri, speaking on Oct. 27-one day after rival Madison National Bank agreed to a merger-told a banking symposium sponsored by the Long Island chapter of the New York State Commercial Association of Realtors, "In the next couple of years you are going to see poorly capitalized banks get taken over by larger banks. You're going to see lots of that." Gold Coast, like Madison and other recently established banks, is considered a denovo bank, because it has been in business fewer than seven years. Madison, which agreed to be acquired by First National Bank of New York City, was told by the Office of the Comptroller of the Currency during the second quarter to limit loan growth so it was equal with capital growth. Perri told the real estate broker group that regulators have become stricter in classifying loans and forcing banks to establish reserves for potential loan losses. "If it's in reserve, that takes money out of profits," he said. As for his own three-year-old, Islandia-based bank, he said, "We are very liquid, very strong. We have a clean portfolio." Gold Coast Bank, he said, has "the highest rating from the regulators. We are the strongest of the denovos." He said Gold Coast looks at loans differently today than it did "in the old days-three years ago" Nevertheless, he said, Gold Coast is open to all kinds of loans, except residential mortgages. He said the bank would not consider any speculative land deals without additional collateral. He said the bank, which can lend up to $4 million—more if a loan is syndicated—makes commercial equity loans. "We like to take each deal as it comes, on its own merits," he noted. Perri noted that directors and major stockholders of Gold Coast, well-known local businessmen, assist in making loan decisions. "They are very successful in their own right," he said, "We have a very strong and passionate board." Founded in 2008, Gold Coast Bank is committed to serving businesses from Long Island and the surrounding area through extraordinary personal service, a healthy balance sheet, state-of-the-art Internet technology and supporting strong businesses with solid projects. The bank was founded by a group of local business leaders who understand the challenges faced in starting, running and expanding businesses. Gold Coast Bank offers a range of business products, including lending products such as term loans, lines of credit, real estate loans, and a number of SBA products, as well as traditional consumer products. The bank is headquartered in Islandia and operates a branch in Huntington.