JUPITER, Fla. (
) -- An analysis of Florida's banking scene underlines the state's move to the forefront for bank failures during 2010, as 55% of banks and savings and loan associations in the Sunshine State reported net losses for the second quarter.
According to data provided by
, 21 of Florida's 261 banks and thrifts were
per ordinary regulatory guidelines, second only to Georgia, which had 39 institutions included on
While the Watchlist is a very comprehensive way of identifying the weakest banks, another approach is to look at overall credit quality:
Florida Banks with Weakest Asset Quality
The following list includes all banks in the state with nonperforming assets comprising more than 15% of total assets as of June 30, with data provided by
Nonperforming assets (NPA) include repossessed real estate -- along with nonaccrual loans and accruing loans past-due 90 days or more -- and less government-guaranteed balances.
The list also includes financial strength ratings provided by
. Weiss Ratings uses a conservative ratings model, placing the greatest weight on capital strength, credit quality and earnings stability to assign ratings ranging from A+ (Excellent) to E-minus (Very Weak).
While all of the listed banks lost money during the second quarter, several had fairly high total risk-based capital ratios.
The institution with the highest concentration in nonperforming assets in the state as of June 30 was
First National Bank of Florida
, with NPA of 30.01%. Most of the problem assets were commercial construction loans. The bank wasn't included on the
because its Tier 1 leverage ratio was 5.47% and its total risk-based capital ratio was 8.36% as of June 30, above the 4% and 8% required for most institutions to be considered
A cease and desist order from the
Office of the Comptroller of the Currency
issued in March 2009 required First National Bank of Florida to maintain a total risk-based capital ratio of at least 12.5% by June 30, 2009, which means the bank was out of compliance for a year. A call to the bank was not returned in time for this article.
The bank with the second-highest nonperforming assets ratio -- 23.08% as of June 30 -- was
of Panama City, which was also the largest bank on the list with $863 million in total assets. Vision Bank is a subsidiary of
Park National Corp.
(PRK - Get Report)
of Newark, Ohio. Vision Bank was
as of June 30, with a Tier 1 leverage ratio of 13.18% and a total risk-based capital ratio of 17.84%, exceeding the 5% and 10% thresholds required for most banks to have this distinction. The holding company has been working through its nonperforming assets, which comprised 4.24% of total assets as of June 30. Park National has been profitable over the past year, serving as a source of strength for Vision Bank.