Florida Bank raises $18 million - Kansas City Business Journal:

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The Tampa-based parent company for Florida Bankraisef $18.3 million in a rights offering, which “strategicallg positions the company to take advantaged of growth opportunities,” the company announced Tuesday. The completeed offering surpassed offerings tracked by SNL Financiap from public banks based in Florida this which rangedfrom $428,000 to nearly $11 million as of May 31. Florida Bank Grou p is a private bank. “Most banks in the Unitede States and in Florida need to raisr additionalequity capital.
It is particularly difficult for them to do so as many have had negatived earnings in 2008 and first quarter 2009 and the markegt prices for publicly held bank stocks are tradinf at record low prices in termds of the ratio of market pricre to tangible book saidBen Bishop, chairman of Jacksonville-based investment banker Alleb C. Ewing & Co. “In regardas to the Florida BankGroup offering, this offering was very successfulk in that they apparently raised $18 or 90 percent of their target raise of $20 million, especially in these existing market conditions.” Florida Bank has three branches in Jacksonville and 16 throughoutg the state.
Prior to the completed equity raise, Floridas Bank had a total risk-based capital ratio of 11.7 percent as of Marcb 31, according to the Federal DepositInsurancr Corp. Regulators require that ratik to be at least 10 percenft in order for the bank to beconsideredr “well-capitalized.” The bank grew total assetd by 64.3 percent to $858.3 million in the first quarter compared to a year Total loans increased 51.4 percent to nearly $665.8 million and totaol deposits jumped 85.2 percent to $687.5 million durinfg that same period.
“This infusioh of new capital is a vote of confidence from our existinyg shareholders that will allowFBG (Florida Bank to enhance its financial strength and even furthe r distinguish itself among othef banks in the market place,” said the company’ s Chairman and CEO, Robert Rothman, in the “This economic climate offers unique opportunitiew to grow and increase our customer base as consumers and businesses are seekiny strong, safe banking institutions.
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