Panther to merge with Naples based bank
After facing delays in its application process with the Federal Deposit Insurance Corporation (FDIC), First National Bank of the Gulf Coast _ which was to be headquartered in Naples _ has signed an agreement to merge with Panther Community Bank N.A. in Lehigh Acres.
“This is a unique opportunity to merge with an organization that shares a similar culture,” said Gary L. Tice, chairman and CEO of First National Bank of the Gulf Coast, in a statement. “Panther Community Bank N.A. is a successful organization with remarkably stellar credit quality. This merger will enable us to begin the business of banking with two full-service locations in Collier County and an office in Lehigh Acres.”
The deal between First National and Panther still must be approved by shareholders at both banks, as well as the FDIC and The Office of the Comptroller of the Currency.
Organizers of First National Bank received preliminary regulatory approvals and have raised nearly $38 million through a public offering of stock to capitalize and open the new community bank. But final approval has dragged out.
“In today’s economic environment, the FDIC is scrutinizing new bank charters at a much-higher level, asking much more detailed questions and just taking more time,” said Bob Reichert, the chief administrative officer and a senior executive vice president with First National Bank, in a phone interview.
He said the FDIC’s scrutiny is much greater in problem states such as Florida, Georgia, California and Nevada, where there have been a high number of mortgage defaults and bank failures, primarily due to the housing crash.
The bank’s application had to go to Washington, D.C., for approval, rather than just the FDIC’s regional office in Atlanta.
“We have been in constant conversation with the FDIC about other alternatives to being able to come on board and to start building this bank and promoting growth in Collier County. This is one of the alternatives we looked at,” Reichert said, referring to the merger.
He said other community banks were considered for the merger, but Panther stood out from the rest.
“It has not had any non-performing loans, does not have any delinquent loans at this point of time. We don’t know of many banks that have that,” Reichert said.
Founded in 2007, Panther has total assets of about $48 million and an office at 50 Joel Blvd. in Lehigh Acres. It would remain open.
“The combination of these two organizations will create a very strong locally based bank with the financial wherewithal and experience to better serve its local communities by offering a broader array of banking products and services,” said Michael J. Kerschner, Panther’s chairman, in a statement.
With the merger, First National would bring 15 new products to Panther’s customers, including mobile banking, Reichert said.
For Panther, it offers a way to expand outside of Lehigh Acres, a market where deposits have declined by about $28 million with a turn in the economy, he said.
The area has been hard-hit by foreclosures and job losses.
The combined bank expects to lure more Lehigh customers with the merger between Wachovia and Wells Fargo, Reichert said.
The combined bank would go by the name First National Bank of the Gulf Coast and would have about 65 employees
The management team would be led by Tice, the chairman and CEO; Garrett S. Richter, president; C.C. Coghill, senior executive vice president and chief credit officer; and Reichert.
Members of the Panther Community Bank executive team, including President and CEO Karen R. Makowski, Chief Financial Officer Philip Nemni and Chief Credit Officer Brenda Dolan, also will continue in key roles with the bank.
The combined bank’s main office will be at 3560 Kraft Road in Naples, with a full-service branch scheduled to open at 811 Anchor Rode Drive in Naples. The board would have 25 members; 17 of them would be the organizers behind First National, Reichert said.
The banks hope to complete the deal by June 30.
First National investors will get a new prospectus with the change in the business plan.
The offering will continue to provide shareholders with warrants to purchase future shares at today’s price of $10. The offering also will be open to new investors.