MIAMI, FL--Regulators seized the Bank of Miami on Dec. 17, and in the process the Federal Deposit Insurance Corp surpassed the $2 billion in losses threshold in Florida for 2010, according to a new Condo Vultures® White Paper™. Before its closure, the Bank of Miami was a 46-year-old institution with three branches, 101 employees, and $448 million in assets. At the height of the real estate boom in December 2005, the Bank of Miami - formerly known as the International Bank of Miami - had assets of nearly $1 billion and 165 employees, according to FDIC data.
The Deposit Insurance Fund - which guarantees accounts up to $250,000 each - realized a loss of $64 million with the Bank of Miami failure, according to the FDIC.
"With two weeks to go in the year, Florida is poised to lead the nation with the greatest number of bank failures for 2010 ahead of Georgia, Illinois, California, and Washington state," said Peter Zalewski (bottom right photo), a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.
"Florida's ranking should come as no surprise given the significant amount of speculation - financed by bank loans - that occurred in Florida during the real estate boom. Consider that 185,000 condominium units - including more than 22,000 in Greater Downtown Miami - were created alone in the tricounty South Florida region since 2003.
"It is worth noting the FDIC has been preparing for a rash of Florida bank failures which is why it opened a 500-person bank seizure and asset sales office in the North Florida city of Jacksonville in 2009."
Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com.
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