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 QualityThe following list includes all banks in the state with nonperforming assets comprising more than 15% of total assets as of June 30:
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV