- March 28, 2024
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The community bank Jim Kuhlman founded in Venice three years ago has grown so fast, the surge surpassed even his own lofty expectations.
The latest proof: The bank, Florida Shores, oversubscribed an $8 million equity capital raise, all of which came from local investors. Kuhlman, the bank's president and CEO, tells Coffee Talk the support from investors was so intense he probably could have raised another $1 million. He says he even turned away people who came into the bank, money in hand, past the deadline.
“There are a lot of people who have faith and confidence in us,” says Kuhlman, “while a lot of banks are still in the dumper and barely surviving.”
The capital raise, which the bank launched last summer, was sold at a price 1.4 times book value, says Kuhlman. That's an impressive feat on its own, considering the devaluation of several Gulf Coast community banks in recent years.
The bank intends to use the capital to expand its geographical presence and its loan portfolio. It previously announced plans to open a branch in Sarasota, where it already has customers. “We have an awful lot of money we would like to get out on the street,” adds Kuhlman, who co-founded Premier Community Bank in Venice prior to Florida Shores.
Meanwhile, Florida Shores has grown in other ways. For example, it earned $1.1 million in profits through the first nine months of 2010, a stark improvement over a $656,000 loss it reported for the first nine months of 2009. The bank also recently reached the $250 million mark in assets.