Make us your home page
Instagram

Community Bank to buy Old Harbor Bank

Community Bank & Co. is buying a second troubled Tampa Bay area institution, agreeing to invest $25 million through its parent company to recapitalize Old Harbor Bank in Clearwater.

The deal, confirmed Friday morning, comes just five weeks after Community Bank closed on its acquisition of First Community Bank of America.

Both First Community Bank and Old Harbor were among a handful of bay area banks that received the lowest-possible, zero-star ranking from Coral Gables ratings agency Bauer Financial. Zero stars would indicate a bank that is in severe financial distress and could be susceptible to failing.

Community Bank's parent company, CBM Florida Holding Co., was formed in 2008 to acquire and recapitalize Florida banks.

Community Bank, which is based in Lakewood Ranch in Manatee County, has been on a mission to specifically expand in Pinellas, Hillsborough and Pasco counties. By adding Old Harbor's seven branches, Community Bank grows to 24 branches and nearly $1 billion in assets.

"We continue to invest in recapitalizing Florida banks because we believe in the marketplace and in the recovery of the Tampa Bay economy," Marcelo Lima, chairman of CBM Florida Holding, said in a statement.

Many expanding Florida institutions have waited until a bank fails before cutting a deal with regulators to take that bank's assets with the government assuming some of the riskiest loans. Community Bank's strategy, in contrast, has been buying a bank for a nominal price before it fails — $1 in this case — and then furnishing capital to help the institution survive.

Trevor Burgess, CBM Florida's chief executive, said by acting ahead of regulators, his company is able to preserve the value of a franchise, preserve local jobs, help prevent future bank failures and get customers excited about who their bank is.

"Many of these banks don't need to close. What they need is more capital," he said.

A signal of Community Bank's intent to buy Old Harbor came through a notice filed earlier this week with the Federal Deposit Insurance Corp.

The boards of directors and shareholders of Community Bank and Old Harbor have both approved the deal.

Pending regulatory approval, the acquisition is expected to close in the third quarter of this year.

Community Bank to buy Old Harbor Bank 07/08/11 [Last modified: Friday, July 8, 2011 10:00pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. No toll lanes north of downtown Tampa in three of four interstate proposals

    Transportation

    TAMPA — Express lanes may not be coming to downtown Tampa after all. Or at least not to the stretch of Interstate 275 that goes north through Bearss Avenue.

    Seminole Heights resident Kimberly Overman discusses the new interstate options with V.M. Ybor resident Chris Vela (left), Hillsborough County Commissioner Pat Kemp and HNTB consultant Chloe Coney during a Tampa Bay Express meeting Monday night at the Barrymore Hotel. [CAITLIN JOHNSTON  |  Times]
  2. Pinellas grants St. Pete's request to add millions to pier budget

    Local Government

    Times Staff Writer

    The Pinellas County Commission has granted St. Petersburg Mayor Rick Kriseman's request to dedicate millions more toward the city's new pier.

    The St. Petersburg City Council on Thursday  voted 7-1 to appropriate $17.6 million for the over-water portion of the Pier District. This is a rendering of what the new Pier District could look like. [Courtesy of St. Petersburg]
  3. Pinellas licensing board loses support for staying independent

    Local Government

    CLEARWATER –– The Pinellas County Construction Licensing Board on Monday lost its strongest supporter for staying independent.

    State Sen. Jack Latvala, a Clearwater Republican running for governor, said Monday that he will no longer support any legislation to keep the Pinellas County Construction Licensing Board independent. This photo was taken in August. [SCOTT KEELER | Tampa Bay Times]
  4. Triad Retail Media names Sherry Smith as CEO

    Corporate

    ST. PETERSBURG — Triad Retail Media, a St. Petersburg-based digital ads company, said CEO Roger Berdusco is "leaving the company to pursue new opportunities" and a member of the executive team, Sherry Smith, is taking over.

    Sherry Smith is taking over as CEO at Triad Retail Media, the company announced Monday. | [Courtesy of Triad Retail Media]
  5. Two new condo projects for same street in downtown St. Pete

    Real Estate

    ST. PETERSBURG — It lacks the panache and name recognition of Beach Drive, but 4th Avenue N in downtown St. Petersburg is becoming a condo row in its own right.

    Bezu, a condo project planned at 100 4th Ave. N in downtown St. Petersburg, will have 24 units including a three-level penthouse with infinity pool.
[Courtesy of Clear ph Design]