This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Florida's Weakest Banks Vanish

JUPITER, Fla. ( TheStreet) -- The pace of Florida bank failures has picked up during the third quarter, as weaker players are shaken out, and eight of the ten largest banks and thrifts in the state were profitable during the second quarter.

While several of the large Florida banks have been posting strong earnings, the picture remains bleak for many community banks. Economic activity has yet to perk up, although there's always hope, since many of the economic factors leading to a great migration from northern states during the real estate boom -- including the absence of a state income tax, lower property taxes, lower property prices, and a lower cost of living in general -- are still present.

Seacoast Banking Corp. (SBCF) CEO Dennis Hudson recently said that there were signs that the real estate market was stabilizing in South Florida.

Meanwhile, the weakest banks in the state are continuing to be swallowed up by stronger rivals.

According to data provided by SNL Financial, 18 of Florida's 236 banks and thrifts were undercapitalized per ordinary regulatory guidelines as of June 30 and were included on TheStreet's second-quarter Bank Watch List, excluding The First National Bank of Florida, which failed on Sept. 9.

Florida was second only to Georgia, which had 32 institutions included on TheStreet's second-quarter Bank Watch List.

Florida has seen 11 banks fail so far this year, second only to Georgia with 19 bank closures, but still behind last year's pace, when Florida led all states with 29 bank and thrift failures.

The Watch List is based solely on capital ratios, so we take a different approach on our quarterly coverage of banks in key states, by looking at overall credit quality to identify troubled institutions.

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:

Nonperforming assets (NPA) include nonaccrual loans, loans past due 90 days or more and repossessed assets. Government-guaranteed loan balances are excluded. The ratio of net charge-offs to average loans is annualized. The total risk-based capital ratios needs to be at least 8% for most institutions to be considered adequately capitalized by regulators, and 10% for most to be considered well-capitalized.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BKU $37.16 1.60%
BAC $15.68 -0.48%
NTRS $69.07 0.10%
PRK $92.00 -0.41%
RJF $51.20 0.67%


Chart of I:DJI
DOW 17,007.46 +95.17 0.56%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,775.7510 -15.4010 -0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs