Partners Bank survived just four years, making it one of the most rapid failures in Florida. But top executives benefited before Partners went under.
A company partly owned by director John M. DeAngelis earned $1.03 million for selling the bank office space, and DeAngelis brought in $42,000 from construction contracts signed with the bank, according to documents filed with the SEC.
SEC records also show that James Broughton, a director who died in 2011, provided the bank at least $115,000 in architectural services, while a company he owned with other members of the bank's holding company took in an unspecified sum by renting Partners a building.
Regulators did not say these deals were illegal or created a conflict of interest. Bank exams for Partners are not public record because they are held by the federal Office of Thrift Supervision.
The bank was never profitable. Even at its most efficient, in March 2006, the bank paid out $1.50 in operating costs for every $1 it brought in from banking activities.
The FDIC said
Partners' operating costs were double those of similar banks, and accused executives of making risky loans during the housing boom.
The bank started in 2005 with the intention of making lower-risk loans to businesses that were secured by real estate. But it soon teamed up with other banks to make riskier construction loans and out-of-state deals that proved its undoing.