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The Real Deal Miami

SF banks saw $3B in losses

February 28, 2011 11:00AM

In the last three years, South Florida-based banks have lost nearly $3
billion due to bad real estate loans, according to a report from Condo
Vultures based on data from the Federal Deposit Insurance Corporation.
During the same period, the number of banks dropped to 72, from 80, in the
area. “South Florida banks are dependent upon real estate lending for
the majority of their loan portfolios,” said Peter Zalewski, founder of
Condo Vultures. “As residential property prices plummeted by more than
40 percent in the tri-county region since 2007, South Florida banks have
struggled to absorb the losses associated with real estate loans.” TRD