Regulators shut Naples bank

NAPLES — Banking regulators shut down The Royal Palm Bank of Florida in Naples late Friday and sold the deposits and most of the assets to First National Bank of the Gulf Coast, another Naples-based bank.

When regulators shut it down, Royal Palm had about $87 million in assets and $85 million in deposits. Like many other community banks in Florida, it fell victim to the real estate bust and couldn't recover. First National acquired $54 million of those assets.

“This is the first transaction that we have entered into since completion of our private placement, which is available to fund future organic growth as well as other expansion opportunities, which may include other strategic bank acquisitions along the West Coast of Florida,” says Gary Tice, chairman and CEO of First National, in a statement.

Terms of the deal were not disclosed, but First National in a press release says it did not pay a premium for the deposits. “While there are some costs associated with this transaction that will impact earnings in the coming months, overall this transaction will be accretive beginning in the fourth quarter of 2012,” Tice says in the statement.

As of June 30, First National had assets of $504 million and $65 million in capital. In addition to its current capital, First National says it has access to an additional $100 million from a private placement completed in April 2011. First National has two existing offices in Naples.

Sandler O'Neill + Partners advised First National in this transaction.