Florida Going Bust -- Half of Its Banks Are Unprofitable

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. Most of the undercapitalized banks on the above list are operating under regulatory orders to achieve and maintain total risk-based capital ratios higher than 10%.

The list also includes financial strength ratings provided by Weiss Ratings. Weiss Ratings uses a very conservative ratings model, placing the greatest weight on capital strength, credit quality and earnings stability to assign ratings ranging from A-plus (Excellent) to E-minus (Very Weak).

Vision Bank of Panama City had a 15.47% nonperforming assets ratio as of Dec. 30, and is held by Park National Corp. (PRK)of Newark, Ohio. The holding company announced on Nov. 16 that it would sell "substantially all assets and liabilities" of Vision Bank of Home BancShares (HOMB) of Conway, Ark., for $27.9 million. On Jan, 23, Park National said it expected the Vision Bank deal to be completed during the first quarter and also expected "to recognize a pre-tax gain of approximately $18 million on the closing date of the transaction."

Interested in more on Park National Corp.? See TheStreet Ratings' report card for this stock.

Largest Florida Banks

Florida remains a key market for major out-of-state banks despite the state's prolonged real estate depression, for the obvious reason that it remains a long-term growth story. The economic advantages -- including the lack of a state income tax, lower property taxes, and the huge savings for Southern Floridians who don't need to hear their homes in winter -- are sure restore Florida's status as a "destination state" as the economy slowly improves.

Bank of America, NA -- the main banking subsidiary of Bank of America (BAC) -- has the lead deposit market share in Florida, with 19% of deposits in the state, as of June 30, 2011, according to the most recent FDIC data. The bank's market share grew from 18% a year earlier. Bank of America's dominating position in the state is a legacy of its acquisition of Barnett Bank in 1997 by NationsBank, before that company acquired Bank of America the following year, with the combined company taking the Bank of America name.

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