Cocoa Beach Chamber Of Commerce

Brevard's community banks look to rebound

The move always made sense, of course. The bank’s president likely had known the business owner for years and had probably loaned him or her money in the past. Having that detailed knowledge about both the creditworthiness of the buyer and the local economy helped the banker make an educated decision about the loan.

Besides, large national banks traditionally weren’t thrilled by the prospect of, say, lending a local furniture store $250,000 to build a new warehouse.

Even if they aren’t the banks with biggest customer base among consumers — in Brevard County, community banks hold less than the 12 percent of $7.9 billion in local deposits — they have long been the lifeblood for small businesses in their hometowns.

“They are critical,” said Paul Merski, executive vice president and chief economist of trade association Independent Community Bankers of America. “The vast majority of small business get their credit from community banks.”

But the economic downturn has left community banks struggling, largely because of real estate and business loans gone bad. The impact has been felt on the Space Coast and throughout Florida:

‡Cocoa Beach-based Coastal Bank, with two branches in Brevard, was shut down last month by federal regulators. They then brokered a deal with Miami-based Florida Community Bank to take over Coastal.

‡¤Riverside National Bank, which has as many as 14 branches in Brevard, was shut down by regulators last year. It was taken over by TD Bank.

‡¤In the past two years, 45 Florida-based banks have failed. The vast majority was smaller, community banks, and independent analysts say many other banks are in poor shape. One such group, Bauer Financial of Coral Gables, will release its latest quarterly ratings of banks this week.

The trouble banks face doesn’t generally pose a risk to depositors. Most accounts are covered up to at least $250,000 by the Federal Deposit Insurance Corporation; some accounts have unlimited coverage.

But the loss of local banks means there are fewer potential lenders for small businesses, which are the backbone of most city and regional economies. “The community banks are lending to our small businesses,” said Melissa Stains, CEO of the Cocoa Beach Area Chamber of Commerce. “They are critical.”

Compounding the situation are regulatory pressures that have led many small banks to hoard cash rather than make new loans.

Cocoa Beach Area Chamber to host Casino Night | Spacecoast ...

From 5:30 p.m. to 9:30 p.m. at Comfort Inn and Suites Resort, 3901 North Atlantic Avenue, Cocoa Beach.

The cost is $20 per person or $30 for two.  Entry for this event includes $100 in chips, a silent auction, hors d’oeuvres, entertainment and a cash bar.

For more information contact the Cocoa Beach Area Chamber of Commerce at (321) 459-2200 or visit  www.cocoabeachchamber.com .  For sponsorship opportunities and to donate items, please contact Hannah Nevins at (321) 454-2027.

The Cocoa Beach Area Chamber of Commerce was established in 1968 and serves Cape Canaveral, Cocoa, Cocoa Beach, Kennedy Space Center, Merritt Island, Patrick Air Force Base, Port St. John, Rockledge, Suntree and Viera. Spacecoast Business is synonymous with business success in Brevard County. From the award- winning monthly magazine to its networking events, and from its website to its sponsorships of key business activities throughout the county such as “The Most Influential Businesspeople” and “Entrepreneur of the Year,” Spacecoast Business is the most respected and influential business brand on the Space Coast.