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19 Banks In Florida Troubled

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By BAIRD HELGESON

bhelgeson@tampatrib.com

Published: March 18, 2009

TAMPA - The number of Florida banks at risk of folding has more than doubled in the past few months, according to a Coral Gables rating agency.

BauerFinancial Inc., which has a five-star ranking system for banks and credit unions, gave a zero-star rating to 19 Florida banks after reviewing lenders' performance for the quarter ending Dec. 31. Only nine state banks received zeros the previous quarter.

First Commercial Bank of Tampa Bay is the only lender in the Bay area to get zero, dropping from two stars the previous quarter.

The 20-year-old bank has more than $153 million in assets, but lost $3.3 million for the year. The bank had more than $16 million in delinquent loans for the quarter, nearly 12 percent of its total assets.

The bank's president and chief executive said First Commercial has healthy reserves and is in no danger of closing.

"We have got some toxic loans, no doubt about it," said Albert Salem Jr. "But we are not the only ones."

Suncoast Schools Federal Credit Union retained its two-star rating from the previous quarter. The Tampa-based credit union is the largest in Florida, with $5.9 billion in assets. About 3 percent of its loans are delinquent.

"Our members have no concerns about the safety and security of our organization," said Tom Dorety, Suncoast Schools' president and CEO.

Consumer deposits are not at risk if they stay below the Federal Deposit Insurance Corp.'s insurance limits, which Congress increased from $100,000 to $250,000 through Dec. 31 for each depositor.

NorthStar Bank is a beacon of optimism at 400 North Ashley Drive.

The bank opened in 2007 and is too new to be ranked by Bauer.

While other lenders focused on real estate, NorthStar found a niche in commercial and community banking, offering more personal service.

It grew 150 percent the first year, said Monty Weigel, president and CEO.

Real estate lending "can be a one-trick pony," Weigel said Tuesday. "And that circus isn't playing anymore."

Keyword: Bank Ratings, to see how BauerFinancial rates the health of your bank or credit union. Keyword: Bank Ratings, to see how BauerFinancial rates the health of your bank or credit union.

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