Banking outlook bright for Sunshine State

No wonder Florida bankers picked Paradise Island in the Bahamas as the locale for their annual convention this month.

Compared to most industries and even fellow bankers outside the state, life's a beach for the leaders of Florida's money centers.

At least that's the opinion of Jacksonville investment banker Allen C. Ewing & Co., which has been cranking out a statewide industry review the past 12 years in advance of the annual meeting of the Florida Bankers Association.

The latest installment from the offices of Ewing president Ben Bishop and vice president Robert Chassman is titled: "Excellent Performance in a Chaotic Market."

Amid crumbling tech companies and vanishing market caps in so many sectors, it's hard to feel sorry for the bankers. Not when bank stocks were one of the few industry groups to perform well this past year. Not when bank earnings nationally rose to a record $21.7-billion in 2001. Not when Ewing forecasts Florida bank earnings in 2003 should continue to grow at a 10 to 15 percent clip.

Some big banks were hit by loan defaults of major telecom companies and others. But Florida banks had "nominal" exposure to the problem loans of large corporations, Bishop points out. Moreover, credit quality in the state is favorable, home construction is strong and Florida's population continues to grow much faster than the nation as a whole.

"Relocating retirees, second-home purchasers and baby boom upgrades" are all fueling strong demand for mortgage loans, the Ewing report concludes.

Bishop, who says he was part of a record crowd at the Bahamas fete, predicts Florida banks through 2003 will continue their strong run in growing profits and rising stock prices.

"You say, 'Recession?' Where is it? It's not in Florida," he said.

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