Banking: Florida bank merger aborted due to "less than enthusiastic" regulators
Florida Bank Group, Inc. ("FBG"), a Tampa-based holding company and Anderen Financial, Inc. ("AFI"), a Palm Harbor-based bank holding company, say that they have abandoned plans to merge.
The banks say in a joint statement that " the industry remains in a very restrictive regulatory environment. Bank regulatory agencies have been less than enthusiastic about authorising certain transactions that might be viewed as expansionary, especially in the challenging Florida market."
Obviously, the primary problem is that neither bank was on the verge of collapse: FDIC and other regulators seem to have no problems in approving takeovers of weak banks but, according to the statement " each bank group is well capitalised and would enjoy a very healthy combined balance sheet on a pro-forma basis."
The statement says "this decision was made with considerable regret by both entities since the merger process was initially entered into with the enthusiastic support and commitment of investors, shareholders and board members of both institutions. In addition, FBG decided to terminate its previously announced fully committed private placement offering."
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