Loading
Florida's chief banking regulator says the number of unprofitable state banks has fallen dramatically, and that's good news for entrepreneurs and real estate investors who need loans.
Speaking to the Real Estate Investment Society in Fort Myers, Drew Breakspear, the commissioner of the Florida Office of Financial Regulation, says 75% of Florida banks were unprofitable in 2009. Today, that number has fallen to 19%. “That is improving and that's a positive for you in the real estate industry,” says Breakspear.
“When I talk to the banks, they have cash on hand,” Breakspear says. “One of their problems is they have a lot of cash and not a lot of lending opportunities,” he says.
For one thing, banks don't have to set aside more money to cover potential losses because of the economic recovery. “Charge-offs are way down to pre-recession levels,” Breakspear says.
Breakspear forecasts continued solid improvement in the banking sector, though he cautioned it wouldn't be rapid. “They're just looking for good loans to make,” he says.
Banks remain an important financing mechanism for real estate and other business deals in Florida even though there are fewer of them. “Without the banks a lot of you are not going to be in business,” Breakspear says.
Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.
Join thousands of executives who rely on us for insights spanning Tampa Bay to Naples.
