First National Bank to buy Naples rival

NAPLES — In another sign of the continuing consolidation in banking, Naples-based First National Bank of the Gulf Coast says it plans to acquire crosstown rival Shamrock Bank of Florida.

The deal could be valued as much as $9 million, or 1.15 times Shamrock's book value, says Colleen Kvetko, Shamrock's president and CEO. Community banks in the Southeast with assets of less than $500 million have been trading below book value at an average price-to-book multiple of 0.85, Kvetko noted.

“In today's economic and regulatory environment, we believe that creating additional scale is the significant driver of future profitability and shareholder return,” says Gary Tice, chairman and CEO of First National Bank of the Gulf Coast, in a statement.