Parent of Bay Cities Bank raises $21.2 million
Tuesday, April 6, 2010
Tampa Bay Business Journal - by Margie Manning Senior staff writer
Florida Business BancGroup Inc. exceeded its expectations in a just-closed stock offering.
The banking company, the parent of Bay Cities Bank, accepted purchases for $21.2 million in new capital before the offering closed on March 31, said Greg Bryant, president and CEO.
The company had expected to raise between $5 million to $20 million when it launched the offering last fall.
Bryant said the capital raise was an offensive, not a defensive move, and that contributed to the success of the efforts.
“We were successful in raising the money because we were able to demonstrate we didn’t have to have it,” Bryant said. Bay Cities Bank aggressively marked down its bad loans in order to liquidate them and move them off the books, so the bank’s balance sheet improved faster than the balance sheets at other institutions, he said.
About half the new capital came from existing shareholders, Bryant said. The company also added about 25 new local shareholders, and two institutional funds became shareholders as well, he said.
Florida Business BancGroup currently has about 360 shareholders.
The company is using the new capital in part to support organic growth.
Bay Cities Bank made $14 million in new loans in the first three months of 2010, Bryant said. The company also continues to have an interest in looking at acquiring failed banks.
Bay Cities Bank, which has $483.3 million in assets, is headquartered in Tampa and has six offices in Hillsborough and Pinellas counties.
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