Finding a bank that meets a nonprofits’ needs is now more difficult. In 2007 the Great Recession was just beginning and Florida had 308 banks and thrifts registered. Ten years later less than half, only 137, remain. The others either failed or were sold. “The Florida banking industry incurred the largest percentage decline of banks during the recession of any state,” said Ben Bishop, chairman at investment bank Allen C. Ewing & Co. “The good news is that the 137 surviving banks were able to absorb the costs of the write-down of asset values, lowered their loss provisions, generated better capital ratios, and are growing their accounts facilitated by the improving economy.” Bishop also reports that Florida’s large population, high population growth rate and approximately $550 billion in deposits make the Florida market attractive to out-of-state banks, which will benefit the Florida’s community banks’ recovery.
Florida Nonprofits is working with FirstBank to provide our members with better banking options. Look for more information coming soon.
Source: John Hielscher
Sarasota Herald Tribune