What a Small Bank’s Stock Offering Says about the Florida Market


What a Small Bank’s Stock Offering Says about the Florida Market

 


What a Small Bank’s Stock Offering Says about the Florida Market
Reosti, John, American Banker
Byline: John Reosti
First Home Bank is hitting its stride as a small-business lender in western Florida.
The Tampa bank, following a first quarter where it reported $4 million in income from selling Small Business Administration loans, went to investors seeking $8 million in capital. When the dust settled, the offering brought in $9.4 million, or 18% more than the target.
The windfall marks another important chapter in First Home’s resurgence. The $180 million-asset bank lost nearly $12 million from 2009 to 2012 before shifting its focus to SBA lending. Last year, First Home reported a profit of $4.6 million, fueled by $10 million in gains from loan sales.
The offering’s success also highlights how much the banking industry in Tampa, and much of Florida, has rebounded since the financial crisis. The city’s population has grown by 10% since 2010, to nearly 3.1 million; it is expected to increase by an additional 6% by 2022, according to the Tampa Hillsborough Economic Development Corp.
“It was a really compelling investment thesis,” Russ Hunt, CEO of Skyway Capital Markets, said of First Home’s offering. Skyway was the investment bank that handled the capital raise. “Tampa is extremely attractive, and management’s ability to execute on its national lending strategy produced an outsize return.”
Anthony Leo, First Home’s CEO, declined to comment beyond a press release in which he touted a mix of “well-known” institutional investors and local shareholders.
Other banks in the Tampa Bay area have done well in recent years. Banks based in that market averaged net income of nearly $17 million last year, a major improvement from the $1.6 million average in 2011, based on data from the Federal Deposit Insurance Corp.
The area has also had a number of bank deals.
C1 Financial, which focused heavily on tech innovation, was bought last year by Bank of the Ozarks in a deal that valued C1 at 202% of its tangible book value. The $212 million-asset NorthStar Bank agreed in May to sell itself to the $4.
What a Small Bank’s Stock Offering Says about the Florida Market What a Small Bank’s Stock Offering Says about the Florida Market Reviewed by adsgo on June 27, 2019 Rating: 5

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