Spreading the wealth: for banks large and small, the tri-county area has always been viewed as a region—whether their presence in the area is physical or electronic

South Florida CEO, June, 2004 by Mike Seemuth

In the international banking sector of South Florida, doing business "in the region" often means loan-making and deposit-taking to and from the foreign sources that surround South Florida in concentric circles. "Central America, the Caribbean, parts of South America--it all ties into this market," says Dennis Nason, senior partner of financial services executive search firm Nason & Nason. "Looking at regionalism from a financial standpoint, these link to South Florida. We are the most important commercial center for the region."

Coral Gables-based International Bank of Miami, for example, is a federally chartered and regulated U.S. bank that has gotten about half of its deposits from foreign citizens, from such countries such as Brazil and Venezuela. Its name has local appeal, too, especially "if you are a foreign national and you are relocating to Miami," says Al Valdes, chairman, president and CEO of the 40-year-old institution.

But in Greater Miami, where there seems to be a bank office representing almost every major country in Europe and Latin America, no single institution has a lock on the banking business of foreign nationals who reside here. Foreign banks with Miami-area offices have a competitive edge only in catering to customers born in the countries where the banks are headquartered, says Valdes. "They do a good job serving people from their home countries."

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Attracting deposits can be easier than investing the money, of course. For Total-Bank and others, residential mortgage lending has grown fast in recent years, but higher interest rates "may create a slowdown," Valdes says. Putting money to work in trade finance has been difficult, meanwhile, because economic weakness in Latin America "presents a challenge."

Some banks set up shop across South Florida mainly to take deposits and lend the funds elsewhere in the United States. Alabama-based Colonial BancGroup, for example, just expanded its presence in Florida and expects to use its fattened Florida deposit base to help fund commercial lending in Dallas and Atlanta. Colonial recently acquired P.C.B. Bancorp and its four banking subsidiaries, including Premier Community Bank of South Florida, based in Fort Lauderdale.

"We're really focused on Florida both as a long-term growth market and a deposit-taking environment," said Sarah H. Moore. Colonial's executive vice president and chief financial officer, at an April 27th investment conference. "They're so rich in deposits, and it's growing every day. We're really focusing our retail efforts in the state of Florida, building out that franchise, so we can fund our earning-asset growth in the Atlanta and Dallas markets."

Some bankers based in South Florida, however, are taking the lead in regional economic development by creating more lending opportunities in their own backyards. "The better you make your community, the better it's going to be for your bank." says Rees, who is this year's incoming chairman of the Greater Fort Lauderdale Chamber of Commerce.