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Coffee Talk (Sara/Mana edition)
DayStar Communications plans rate change
With the U.S. Supreme Court declining to intervene into a case preserving government-mandated telephone competition, the court effectively set the stage for the free market to determine access rates to phone lines. Coffee Talk decided to check on how this will affect DayStar Communications, a Port Charlotte-based telephony and data communications service GCBR profiled in April.
"I believe the big effect of this ruling is going to be on MCI and AT&T," says Al Sanders, president of DayStar, "who are using the UNE-P platform to serve residential homes with package services: long-distance and local service. If they raise the rates on that kind of service it will make the already very thin margin for residential customers even slimmer. We are in a little better position serving business customers even if they raise the rates somewhat. I believe we will be in a better position to absorb that. The margins are a little bit wider in the business arena."
Further, Sanders says the company has been expecting this to happen for a while and has been taking steps to get around the wired network.
"We have foreseen this coming for some time," Sanders says. "This is the reason we have been working heavily in the wireless area. To be able to offer clients both voice and data wirelessly. To be able to bypass the local exchange carrier altogether if we so desire. If they raise the rates to where they are no longer reasonable we have that option."
Sticker shock
After what is reputed to have been one of the area's most successful boating festivals last week (June 26-July 4), Coffee Talk has learned that Suncoast Offshore Grand Prix officials are bracing for what could be a significantly more expensive event next year. The city has submitted a bill to the Suncoast Foundation for the Handicapped Inc., reported to be between $4,200-$9,000, for renting the Van Wezel parking lot for the week-long festival.
"The idea of paying rent was introduced two years ago," says John Wilkes, executive director of the Van Wezel. "It was really an issue of fairness. We can't keep renting the parking lot for free to one group and not to another. Everyday that an organization occupies our parking lot is a day we are closed for business. They were supposed to pay rent this year. But there was a breakdown in one of the city offices so they didn't budget it. (V.) Peter Schneider, (the deputy city manger for the city) wound up waiving the bill this year."
The festival, which is topped off by a Super Boat International Production sanctioned APBA Pro Grade Series boat race, raises money for a nonprofit foundation that contributes money to local charity organizations that assist the needs of physically and mentally challenged youth in the community.
At least one board member, who didn't want to be named, indicated that if the rental amount was not altered, the boating festival might have to relocate to an alternative venue. The event, which was originally run from St. Armands, transferred to the Van Wezel as the size of the event increased.
Another bank acquisition
While the prices are scaring off many out-of-staters, the biggest local banking company on the Gulf Coast continues to buy up banks in the Sunshine State.
First National Bankshares of Florida Inc., the Naples-based holding company for First National Bank of Florida, picked off a small target June 30 when it announced an agreement to take over 7-year-old First Bradenton Bank in an $8.3 million stock deal.
The transaction, equal to 1.7 times tangible book value, is modest by the astronomical values of recent Florida bank deals. In a pending acquisition expected to close by October, First National Bankshares is paying three times tangible book for Orlando-based Southern Community Bancorp, whose operating units include Southern Community Bank of Southwest Florida.
But at least First Bradenton, with $60 million in assets and just one branch, gives First National Bankshares a toehold in Manatee County, where job growth leads the state and per-capita income far exceeds the average in Florida.
"The acquisition of First Bradenton Bank will help fill a gap in our Florida franchise and provide us with opportunities to expand not only our traditional banking services but also our complete line of wealth management and insurance products," First National Bankshares Chairman and Chief Executive Gary L. Tice said in a written statement.
First National Bankshares, spun off in January from FNB Corp., grabbed a bigger share of the Bay area market last year by buying Charter Banking Corp., the Tampa holding company for Southern Exchange Bank. The old Southern Exchange branches now fly the First National Bank of Florida flag.
Thomas L. Hodgson, president and CEO of First Bradenton, lauded the latest proposed takeover. "We are excited about the opportunity to partner with a successful, community-minded organization that shares so many of our values," Hodgson said in a statement released by First National Bankshares.
First Bradenton was founded by a group of local bankers and businessmen, including Ben W. Hardin, Dozier B. Hilliard, Norman J. Pinardi and George T. Smith, who sold off the old Bank of Bradenton to SouthTrust Corp. in 1994.
Their newer bank had been growing slowly. But, in the past year, assets have increased about 25%. At the same time, First Bradenton was spending less than 65 cents for every dollar brought in.
That was a nice drop in non-interest expense from the approximately 75 cents it spent per revenue dollar a year earlier.
As for First National Bankshares, the company's stock is holding up despite all the acquisitions - and talk of more. Shares rose 43 cents in early trading on July 7 to $18.85, about a buck shy of spinoff-adjusted 52-week peak for First National Bankshares, after the stock was added to the Russell 3000 equity index.
Etc...
× Janet Basset, director of marketing for Michael Saunders & Co., has resigned. "We are looking at a number of different options (to deal with the staffing vacancy,)" says Michael Saunders. "We had a great working relationship with Janet, and we know that we will continue to work with her on other projects in the future (on a consulting basis). This is a new journey for her, and we are very happy for her."
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