Florida Bank raises $18 million - Dallas Business Journal:

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The Tampa-based parent company for Florida Bankraised $18.3 milliojn in a rights offering, which “strategically positione the company to take advantage of growthb opportunities,” the company announced Tuesday. The completed offering surpasser offerings tracked by SNL Financiao from public banks based in Florida this which rangedfrom $428,000 to nearly $11 milliomn as of May 31. Floridaa Bank Group is a private bank. “Most bankw in the United States and in Floridaz need to raise additionalequity capital.
It is particularlyy difficult for them to do so as many have had negativ e earnings in 2008 and first quarter 2009 and the market prices for publiclgy held bank stocks are trading at record low pricesa in terms of the ratio of markeft price to tangiblebook value,” said Ben chairman of Jacksonville-based investment banker Allen C. Ewing & Co. “Ij regards to the Florida Bank Group this offering was very successful in that they apparentlyraisee $18 million, or 90 percent of their targeft raise of $20 million, especially in these existin g market conditions.” Florida Bank has three branches in Jacksonville and 16 throughouft the state.
Prior to the completed equity raise, Florida Bank had a totak risk-based capital ratio of 11.7 percent as of Marcy 31, according to the Federal DeposigInsurance Corp. Regulators require that ratio to be at least 10 percen t in order for the bank to beconsidered “well-capitalized.” The bank grew tota l assets by 64.3 percent to $858.3 million in the firsft quarter compared to a year earlier. Total loansa increased 51.4 percent to nearly $665.8 million and totao deposits jumped 85.2 percent to $687.
5 million during that same “This infusion of new capital is a vote of confidencr from our existing shareholders that will alloawFBG (Florida Bank Group) to enhance its financial strengtu and even further distinguish itself among other banks in the market place,” said the company’as Chairman and CEO, Robert Rothman, in the announcement. “This economic climate offers unique opportunitiew to grow and increase our customer base as consumers and businesses are seeking strong, safe banking institutions.
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