Turnberry Bank was not regulated by the state Office of Financial Regulation, and the FDIC did not publish an extended analysis of the reasons for its failure in July 2010.
The FDIC simply said
that Turnberry was undone by an aggressive growth strategy that relied on risky loans to developers and speculators.
Federal examiners also found that the bank had made little effort to limit the number of loans to condominium buyers.
By 2008, Turnberry's bad loans were rising so rapidly that they began eating away at capital reserves. But it was not until 2010 that regulators began demanding the bank raise more money.
The federal Office of Thrift Supervision hit Turnberry with a cease-and-desist order in April of that year, citing the Aventura bank for paying senior officers too much relative to banks its size, and for not putting enough into loan loss reserves.