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First National Bank to buy Naples rival

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  • | 3:51 p.m. October 9, 2013
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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.

Shamrock currently has $101 million in assets and First National has $669 million in assets. The combined company will have approximately $770 million in assets, $511 million in loans and $644 million in deposits with six locations in Collier County. First National recently filed an application with the Office of the Comptroller of the Currency to open its first branch office outside of Collier County, to be located in Tampa.

Kvetko will join the board of directors of First National Bank and serve as executive vice president after the deal closes in the first quarter of next year.

First National says it plans to pay Shamrock shareholders in two phases. The first payment to Shamrock shareholders will be in stock of First National's holding company, TGR Financial. The deal values Shamrock's 2 million shares at $3.10 per share, so the first payment will equal $6.2 million.

The second payment is contingent on loan performance, the resolution of legal issues and other matters for up to one year after the deal is closed. Kvetko says the value of that second payment could range from $0 to $2.8 million. It will be paid in cash or stock, depending on whether the investor is considered accredited under securities rules.


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