St. Petersburg Times
Special report
Video report
  • For their own good
    Fifty years ago, they were screwed-up kids sent to the Florida School for Boys to be straightened out. But now they are screwed-up men, scarred by the whippings they endured. Read the story and see a video and portrait gallery.
  • More video reports
Multimedia report
Print Email this storyEmail story Comment Letter to the editor
Fill out this form to email this article to a friend
Your name Your email
Friend's name Friend's email
Your message
 

Columns

It's time to give banks a closer look

Organized and funded by a Tampa Bay business equivalent of rock stars, the brand new NorthStar Bank officially opened last week in downtown Tampa. Its diverse backers and directors range from leading area philanthropist Dr. Kiran Patel and former Tampa mayoral candidate and now Renaissance Steel CEO Frank Sanchez to Sykes Enterprises founder John Sykes.

By Robert Trigaux, Times Business Editor
Published October 7, 2007


ADVERTISEMENT
Is your bank healthy?

Organized and funded by a Tampa Bay business equivalent of rock stars, the brand new NorthStar Bank officially opened last week in downtown Tampa. Its diverse backers and directors range from leading area philanthropist Dr. Kiran Patel and former Tampa mayoral candidate and now Renaissance Steel CEO Frank Sanchez to Sykes Enterprises founder John Sykes.

NorthStar's arrival comes at an increasingly stressful time for banks and other lenders. The lousy state of the housing market is rippling across the Sunshine State as more homeowners struggle to make mortgage payments or simply pull back on their spending - and borrowing.

Folks who don't borrow make bankers unhappy. But folks who do borrow but don't pay back what they owe make bankers downright crabby.

NorthStar is called a "de novo," or new, bank. It joins a Tampa Bay banking market brimming with competitors. There are giant banks like Bank of America and Wachovia that are based elsewhere but have a big presence and dozens of branches here. There are mid-sized banks like Fifth Third of Cincinnati or Whitney Bank of New Orleans that bought local banks and have since expanded; and finally, there are locally headquartered banks.

I count roughly 15 local banks in Tampa, two apiece in St. Petersburg, Clearwater and Largo and others scattered from Trinity and Tarpon Springs to Lutz and Valrico. That's about 30 local banks, not to mention other newbies like NorthStar trying to pop up, such as Jefferson Bank in Oldsmar and Gulfshore Bank in Tampa.

As the area economy weakens - and things are slowing - some of these banks will struggle. We've seen the early signs. Bradenton's Coast Bank misfired in mortgage deals and may very well have failed if bank regulators not stepped in and found a rich buyer from St. Louis.

The good news is that Coast is the local exception. For now. Most area banks are doing pretty well. The handful that need some attention are not serious cases.

That, at least, is my take on our banks after looking at financial data federally insured banks must share with regulators. A Florida firm named Bauer Financial reworks all those numbers into a friendlier, six-point scale. Banks are given stars * with 5* indicating they are in superior condition, 3* being adequate condition, 1* being troubled and zero star being - this is my term - representing the walking dead. Coast Bank, which enjoyed a solid 3.5(*) status in June of 2006, was a zero star bank by the time it was sold this summer.

Bauer Financial's lists - these reflect June 30 figures - are helpful, especially in less stable times.

I'm writing about banks now because the volume of bad loans are rising. Foreclosure numbers are soaring, especially here.

Banks have enjoyed a long and healthy honeymoon, but it's time to pay more attention to their condition.

Here's the skinny. There were no other "zero" or "one" or even "two" star banks operating here as of June 30. I anticipate the list you can look at online now will look less healthy when the numbers for Sept. 30 are available.

Don't worry. We'll share those with you, too.

Robert Trigaux can be reached at trigaux@sptimes.com or (727) 893-8405.

[Last modified October 5, 2007, 23:06:40]


Share your thoughts on this story

Comments on this article
by Claudia 10/11/07 02:13 PM
As others have requested, how does one find out the bank information you spoke of?
by Bruce 10/11/07 08:45 AM
Ok, so I went to money.tampabay.com and found nothing about the condition of any banks or credit unions. Where is the list????
by Jeff 10/09/07 02:06 PM
Most comments relate to credit unions. Only star ratings are available to non-members of Bauer,not the full report as you published for banks. Therefore, would you please publish the credit union info as was done for banks....Thanks again!
by dennis 10/08/07 01:01 PM
Where do I go to check kout the condition of Banks and Credit Unions? I thought your recent article said to go to - money.tampabay.com . I did not see anything pertaining to check out your bank or credit union. Looking forward to hearing from you.
by Mark 10/08/07 12:47 PM
Re: Suncoast...contact the NCUA (National Credit Union Administration) for the rating. Their audit report is available to members of the public.
by Janette 10/08/07 09:52 AM
How do I find the rating of Suncoast Schools Federal Credit Union?
by Patty 10/07/07 02:52 PM
Since most of my money is in Credit Unions, is there a way to check on them?
by Robert Trigaux 10/07/07 02:08 PM
A response for Karen: Go directly to Bauer Financial at www.creditunion stars.com -- that's all one phrase, no space -- and you can get both bank and credit union information. RTrigaux
by Ed 10/07/07 01:48 PM
Is there a report for Credit Unions?
by Jeff 10/07/07 01:03 PM
Would you be kind enough to also show the ratings for credit unions......Thanks!
by Karen 10/07/07 11:52 AM
How do I find rating of Pinellas County Employees Federal Credit Union
by Gene 10/07/07 09:35 AM
How are savings accounts At credit union facilities such as GTE.FCU insured for a customers benefit.
Subscribe to the Times
Click here for daily delivery
of the St. Petersburg Times.

Email Newsletters

ADVERTISEMENT