Great Florida Bank

Great Florida Bank

Company type	State-chartered commercial bank
Industry	Banking
Founded	June 30, 2004 (2004-06-30) in Miami Lakes, Florida, United States
Founder	M. Mehdi Ghomeshi
Defunct	January 31, 2014 (2014-01-31)
Fate	Acquired by Florida Community Bank
Headquarters	Miami Lakes , United States
Area served	Miami-Dade, Broward, and Palm Beach Counties, Florida
Key people	M. Mehdi Ghomeshi (founder, president and CEO)
Products	Commercial banking services

Great Florida Bank (), based in Miami Lakes, Florida, was established as a state-chartered commercial bank on June 30, 2004. The institution began trading on the NASDAQ Global Market under the ticker GFLB on December 5, 2007, and became part of the American Bankers Association Community Bank Index by June 2008. By the conclusion of 2009, it was recognized as the 11th-largest bank headquartered in South Florida by asset size. On April 13, 2010, the Federal Deposit Insurance Corporation issued a consent order requiring the bank to secure additional capital. Subsequently, on January 31, 2014, Great Florida Bank was acquired by Weston-based Florida Community Bank, elevating the latter to the position of Florida’s fourth-largest bank with approximately $5 billion in assets and more than 60 branches statewide.

History

M. Mehdi Ghomeshi, who founded Great Florida Bank and brought extensive banking leadership experience from former roles at Barnett Bank and BankUnited, launched the bank in 2004 following his departure from BankUnited in 2002.

Bank operations

Great Florida Bank maintained twenty-eight "Solution Centers" distributed throughout Miami-Dade, Broward, and Palm Beach Counties. It participated in the FDIC’s Temporary Liquidity Guarantee Program, which extended unlimited FDIC insurance coverage on non-interest bearing transaction accounts through December 31, 2009.

The bank’s initial branch opened in downtown Miami in 2004, followed by rapid expansion through 2006. That year, however, it faced an FDIC cease and desist order citing unsafe banking practices and violations of the Bank Secrecy Act; notwithstanding this regulatory action, it successfully secured a NASDAQ listing in December 2007. The FDIC lifted this order in March 2009. In 2008, Great Florida Bank grew its network by adding seven new branches, totaling 28 locations.

Achieving over $1 billion in assets within just eighteen months positioned the bank among the fastest-growing de novo institutions nationwide. By March 31, 2009, asset holdings reached $1.7 billion with Tier 1 Capital at $131 million and a Tier 1 leverage ratio of 7.4%, surpassing regulatory capital requirements.

In January 2010, NASDAQ issued a warning to Great Florida Bank due to its common stock trading below $1.00 for more than thirty consecutive days, putting it at risk of delisting. Share prices declined from $2.29 in January 2009 to a low of $0.49 by December of that year. As of March 31, 2010, capital ratios had fallen below mandated levels: Tier 1 leverage ratio stood at 5.55% and total risk-based capital at 10.6%. A consent order dated April 13, 2010 required the institution to raise these ratios to minimums of 8% and 12%, respectively, within a four-month period.

Despite attempts to meet these requirements, Great Florida Bank was unable to fulfill its capital enhancement obligations by November 2010 amid continuing financial challenges.

Acquisition

On January 17, 2014, Florida Community Bank obtained authorization from the Office of the Comptroller of the Currency to proceed with the purchase of Great Florida Bank. M. Mehdi Ghomeshi, serving as president and CEO of Great Florida Bank, remarked that this merger bolsters their financial stability and strengthens their competitive edge within Florida's community banking industry. Finalized on January 31, 2014, the acquisition supported their strategic objectives for business expansion and increased market presence in the area.