Bank Report: Distressed Florida Construction

As I’ve reported in the past the volume of construction loan and REO trouble is significantly higher than the commercial totals are today. And as most everyone knows Florida is in the thick of it. I’ve also written in past articles about the fact that it aint over.

In fact our bank data shows that there has been more trouble in the pipe every quarter and it doesn’t look like its going to let up for a while. So with that, I offer you the Distressed Florida Construction Report.

Many regional and community banks got heavy into construction as they were beaten badly in the home loan game. Unfortunately for many of them the investments proved to be just too risky. In the most recent report 228 Florida based banks are reporting $3,139,888,000 in nonperforming construction loans. Bank owned construction projects in Florida (with Florida banks) were last reported at $730,780,000.

Florida Banks with the top 10 Nonperforming Construction Loan Balances:

1. Ocean Bank | Miami, FL -  Miami-Dade County
2. MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION | Coral Gables FL Miami-Dade County
3. Orion Bank | Naples, FL -  Collier County
4. BankAtlantic | Fort Lauderdale, FL - Broward County
5. Florida Community Bank | Immokalee, FL – Collier County
6. Peoples First Community Bank | Panama City, FL - Bay County
7. Great Florida Bank | Coral Gables, FL - Miami-Dade County
8. EverBank |Jacksonville, FL - Duval County
9. Raymond James Bank | FSB Saint Petersburg, FL - Pinellas County
10. Vision Bank | Panama City, FL - Bay County

Florida Banks with the top 10 Bank Owned Construction Project Balances:

1. Peoples First Community Bank | Panama City, FL -  Bay County
2. Florida Community Bank | Immokalee, FL - Collier County
3. Riverside National Bank| of Florida Fort Pierce, FL -  Saint Lucie County
4. Ocean Bank | Miami, FL - Miami-Dade County
5. Orion Bank | Naples, FL -  Collier County
6. Vision Bank | Panama City, FL - Bay County
7. U. S. Century Bank |Doral, FL – Miami-Dade County
8. The First National Bank of Florida | Milton, FL - Santa Rosa County
9. MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION | Coral Gables, FL - Miami-Dade County
10. Seacoast National Bank | Stuart, FL - Martin County

Obviously there is significant overlap in these lists but it is interesting that the lists are not identical and the positions certainly change. Some of that has to do with simple timing but it may also be an indication of how these lenders are choosing to deal with, or not deal with, their troubled construction projects.

Our numbers show that while these 14 banks are carrying a significant load, there are some 214 more Florida based banks also struggling with bad construction loans. New numbers are due out any day and it will be interesting to see movement in the ranks and whether or not “the recovery” that has started will be reflected in the numbers. Something tells me probably not, though I’m ready to be wrong.

If you’re a Floridian real estate professional or you’re working in distressed assets in Florida, or in distressed construction projects generally, we want to hear from you. Chime in with a comment below and let us hear your professional opinion. (Oh… and you get a link back to your site too.)

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