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The most visible changes at First National Bank of the Gulf Coast will be signs with the bank's new name: First Florida Integrity Bank.
But behind the scenes, the big change at the Naples-based bank is its conversion from a national charter to a state charter, effective June 28. Although the bank is still regulated by the Federal Reserve, its principal regulator will now be the Florida Office of Financial Regulation.
This makes good sense on many levels, says Gary Tice, the bank's chairman and CEO. For one thing, state regulators speak the same language. “The Florida regulators understand the Florida market,” Tice says.
What's more, the cost of regulatory compliance is as much as 40% lower with a state charter. “You've got to take a look at everywhere to cut costs,” Tice says.
State regulations also permit a higher lending limit than federal rules. Tice says the bank can lend as much as 25% of its capital under state rules, compared with 15% under more stringent federal regulations. “It gives us flexibility if we so desire,” Tice says.
First Florida Integrity will be joining the majority of Florida banks with the state as its primary regulator. Tice says about 70% of the banks in Florida are state chartered.
As of March 31, the bank reported $865 million in assets. Tice says the conversion to a state charter won't affect future growth plans, including possible acquisitions.
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