Banking shake out in Florida continues in 2012
01/23/2012
Florida banking regulators have closed 59 institutions since January 2007, and 2012 is starting off
no different. Central Florida State Bank in Belleview was closed by regulators on Friday. It had assets
of $79.3 million as of September 30 and was rated E- ("Very Weak") by Weiss at the time of failure. It was
first identified as "Weak" in December 2008. The institution lost more than $4.4 million in the nine months
ending September 30, 2011, had far below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%) ratios of 1.70%
and 3.69%, respectively, and nonperforming loans represented 27.4% of its total loan portfolio.
CenterState Bank of Florida, NA in Winter Haven, Florida, with assets of $1.9 billion and a Weiss
Financial Strength Rating of D+ ("Weak"), assumed the deposits of Central Florida State Bank. CenterState has
high Tier 1 and moderate risk-based capital ratios of 8.01% and 15.46%, respectively. The bank also had
nonperforming loans of 3.76% and earned $819,000 for the first nine months of 2011 for an ROA of 0.06%, well
below the industry average of 0.94%.