If is said that the housing collapse began in Florida. Yet it is reported that of all the banks that closed, a mere three were located in Florida. It is said that in a little more than a year, regulators of the institution of banking have closed more than 30 banks across the nation and it leaves many an itchy head to figure out why. Phillip van Doom is an analyst for TheStreet.com located in Jupiter. It is his opinion that Florida has a large quantity of banks with bad assets and it seems as if many of them are speeding to their demise.

For the time being they still have the ability to put the brakes on. Ocala National Bank of Ocala, Freedom Bank and First Priority Bank, the failures, were not on the Treasure Coast or on South Florida’s financial stage. If you are unaware, the FDIC has a list of closely guarded banking institutions that are in deep trouble and of those that at least 20 of them are Florida based. This is what van Doom and Ken Thomas a bank analyst from Miami are guessing.

The reason that many of the banks with problems in Florida haven’t closed is because of their inherent franchise value. It is thought that once the housing crisis passes and the values once again begin to rise, leaders of the banking industry will say, “We want to be back in Florida.”

If the data is analyzed as Peter Zalewski who is the head of a brokerage and research firm based in Miami, Condo Vultures has looked it over, one would notice that not only is Florida a state with very few failures. Nevada was considered to be another one of the poster children responsible for the bust in the housing market. It seems they have had just two failures to their credit.

Amidst the dramatic drop in prices in the real estate market in both of these states, plenty of people will be taken by surprise that more banks haven’t gone into failure. A theory to explain the lack of failure is that both Nevada and Florida were better at choosing which underwriting and lending loans they approved than the fly by nighters from out of town that instead rushed the market. The more likely explanation for this is that Nevada and Florida are both ready for any future problems that may arise.

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