Friday, March 09, 2012

How are local banks doing? By Geniusofdespair

Every quarter Bauerfinancial rates bank financial well-being with stars. If you're a bank you don't want your ratings to drop and you certainly don't want 2 stars - Problematic or 1 star - Troubled. And, a bank with "0" stars is in deep shit. Bauerfinancial only recommends 4 or 5 star banks. I listed all the banks in our area and I have been checking them periodically since 2009. You can see their progression... or in the case of Ocean Bank, they have just remained in their zero hole over the years. Both Ocean Bank and U.S. Century Bank are operating under a Consent Order. City National Bank is operating under a Formal Agreement with the Dept. of the Treasury and Coconut Grove Bank is under a Written Agreement with the Federal Reserve.

Below is the list of local banks that I have been tracking. The September 30th 2009 rating appears before the bank name. The ratings, posted for December 2009, March 2010, June 2010 and September 9, 2010 appear after the name ONLY if the star rating has changed. Some I refreshed, so you would know I did check them all. I haven't reviewed their star ratings in awhile but the NEWEST star rating for March is in red at the end of the line. You can see if the bank has gotten better or worse.

Banks in green have bit the dust.

** 1st National Bank of South Florida, Homestead - Still at 2, 9/9/2010  3/12 ***
***1/2 Bac Florida Bank, Miami - Still at 3 1/2, 9/9 
3/12 ***1/2
*** Bank of Coral Gables. December: **/March: */June 2010 ZERO. Sept.: *
3/12 ZERO
ZERO Bank of Miami NA, Coral Gables (June 2010  ZERO) 9/10 ZERO - Closed 12/10

** Bank Atlantic, December: ***/March: **/September 2010: **
3/12 **
*** Biscayne Bank, Coconut Grove. March: **/June 2010 **/Sept. 2010 *** 3/12 *** 1/2
***** City National Bank of Florida, Miami. March: ****/June 2010 ***
3/12 ****

(for the rest of Miami-Dade Banks, hit read more)

** Community Bank of Florida, Homestead/ Sept. 2010 ** 3/12 **
**** Continental National Bank, Miami. June 2010 ***1/2/Sept. 2010 ***1/2
3/12 ****  
*** Gibraltar Private Bank & Trust Coral Gables. June 2010 ***1/2/
3/12 ***
** Great Eastern Bank of Florida. March: */ June 2010 */September 2010 *
3/12 **
* Great Florida Bank, Miami. June 2010 ZERO /Sept. 2010 ZERO
3/12 ZERO
*** Helm Bank, Miami. Sept. 2010 still ***
3/12 ****
***** Intercontinental Bank West Miami. June 2010 *****/Sept. 2010 *****
3/12 *****
*** Intercredit Bank NA, Miami. March: **/June 2010 **/Sept. 2010 **
3/12 **
***1/2 International Finance Bank, Miami. Sept. 2010 still ***1/2
3/12 *
***1/2 JGB Bank NA, Miami. March ***/June 2010/Sept. 2010 *** 3/12 ***1/2
*** Marquis Bank June 2010 (was a start-up prior) Sept. 2010 ***3/12 ***1/2
** Metro Bank of Dade County, Miami. December: ZERO June 2010 ZERO, Sept. SEE FDIC
**** Northern Trust NA, Miami. Sept. 2010 still ****
3/12 ****
ZERO Ocean Bank, Miami. June 2010 still ZERO. Sept. 2010 still ZERO. 3/12 ZERO
*** Pacific National Bank, Miami. December: **/Sept. 2010 ** 3/12 ***
** Plus International Bank, Miami December: ***/Sept.2010 *** 3/12 ****
ZERO Premier American Bank, Miami. ADIOS 1/2010 - SEE FDIC (Now it is a start-up)
----Sabadell /(was Mellon Bank) Sept. 2010 ***
3/12 ****
*** Sunstate Bank, Miami. Sept. 2010 *** 3/12 **
*** TerraBank NA, Miami. Sept. 2010 *** 3/12 ***
*** Total Bank, Miami. December **/ June 2010 ***/Sept. 2010 *** 3/12 ****
ZERO Turnberry Bank, Aventura June 2010 Still ZERO//Sept. 2010 FDIC
** Union Credit Bank, Miami. December: ZERO// June 2010 ***/Sept. 2010 ***??
*** US Century Bank, Miami. March: **/ June 2010 */Sept. 2010 *
3/12 ZERO

1 comment:

Anonymous said...

From the Daily Business Review:

After years of witnessing Miami banks receive various strictures from regulators, City National Bank of Florida received a rare endorsement Thursday: The U.S. Office of the Comptroller of the Currency released it from the formal 2010 agreement that demanded City National correct "unsafe and unsound banking practices."

When the Great Recession hit, virtually every financial institution in the region suffered from the fallout, and the result was a wave of regulatory crackdowns that included cease-and-desist orders as well as formal agreements like the one entered against City National on April 19, 2010.

In that context, City National's release from its agreement with regulators could be a sign the bank crisis that brought the region's economy to a grinding halt is beginning to ease as the country's wobbly economic recovery has gained firmer footing.

In an interview, Jorge Gonzalez, president and CEO, said the release came partly thanks to the support of its corporate parent, Spain's Caja Madrid. But it also meant installing new business plans, and hiring the right people. "I was fortunate to be able to assemble the right team," Gonzalez said. "You can have the best plan in the world, but if you don't have the people you can't execute."

A spokesman for the OCC had no comment.

At $4 billion in assets, City National is the fourth-largest institution based in Florida, although the state's banking industry tends to be dominated by giant out-of-state firms like Bank of America and Wells Fargo.

But City National plays an outsized role in Miami history. It was founded in 1946 by Leonard L. Abess Sr. and Baron de Hirsch Meyer in the North Beach area of Miami Beach and over time became noted for a high degree of community involvement, as well as building a franchise that now includes more than 25 offices.

The bank was later sold to the notorious coffee trader Alberto Duque, who later fled the country after being convicted of bank fraud. The Abess family then bought the bank back, and Leonard Abess Jr. became president. The son sold to Caja Madrid in 2008, and became a national celebrity when he distributed a $66 million bonus to employees — an action that brought him a standing ovation at the 2009 State of the Union speech by President Obama the following February.

But behind the scenes, the bank was facing huge challenges. According to FDIC reports, City National lost $9 million in 2009, and in 2010, as it aggressively cleaned up its balance sheet, the bank recorded a loss of $436 million, largely on non-cash writedowns.

Among other things, the OCC was concerned about "the high level of credit risk, capital planning and strategic planning at the bank." The OCC was specifically worried about the institution's heavy concentration in land and commercial loans, Gonzalez said.

"Then we worked very proactively with regulators," Gonzalez said. "We didn't want to wait to be told what to do. We wanted to lead the effort."

Among other things, the bank diversified its customer base, increasing its focus on professional firms and the region's large base of small- and medium-sized businesses.

The efforts appear to have paid off, with City National back in the black, recording income of $34.36 million last year. It also recorded $759 million in new loan commitments last year.

"This process requires a lot of resources and a lot of attention," Gonzalez said. "But ultimately it allowed us to be a much better positioned institution in this market. Now, with the economy turning, we have the right asset quality."