April 20, 2014

2008 Industry Outlook

Finance 2008

New opportunities: Florida-based banks are hoping for a rebound.

Mike Vogel | 1/1/2008

Benjamin C. Bishop Jr.
“We have people saying, ‘Just get me out of bank stocks.’ ”
— Benjamin C. Bishop Jr., chairman, Allen C. Ewing & Co., Jacksonville

[Photo: Kelly LaDuke]

For the gutsy: Buy the stocks of Florida-based banks. Their 15-year bull market ended last year, says Benjamin C. Bishop Jr., chairman of investment banker Allen C. Ewing & Co. in Jacksonville. Valuations plunged, down 44% through the third quarter of 2007. “The Florida banks have just been pummeled,” Bishop says.

Indeed, stock in the largest Florida-based bank, Coral Gables-based BankUnited, Fort Lauderdale-based BankAtlantic, and Sanford-based Federal Trust Bank all could be had for under book value last year.

Buyers in the last bank bear market were rewarded within a couple of years by rising valuations, Bishop says. Many bankers say their non-real estate operations are healthy, and Florida’s continued growth means Florida bank stocks should rebound.

Meanwhile, though, Bishop projects 2008 will be a year of down or flat earnings for banks. “Just about every Florida bank is doing all it can to generate fee income,” he says.

Tags: North Central, Banking & Finance

Digital Access

DIRECT DIGITAL ACCESS
Add digital to your current subscription, purchase a single ditgital issue, or start a new subscription to Florida Trend.

TABLE OF CONTENTS
An overview of the features and articles in this month's issue of Florida Trend.

ACCESS THIS ISSUE »

Florida Business News

Florida Trend Video Pick

Central Florida's bike trails paved with adventure
Central Florida's bike trails paved with adventure

Ride along on a tour of the Cross Seminole Trail, which runs from Oviedo to Longwood.

Earlier Videos | Viewpoints@FloridaTrend

Ballot Box

Amazon will begin charging Florida residents sales tax on May 1, 2014. How will this affect your online shopping at Amazon?

  • I will buy less from Amazon
  • This won't change my Amazon shopping
  • I don't shop at Amazon

See Results

Ballot Box
Subscribe