Approval of Banc Corp's Acquisition of Emerald Coast Bancshares

Strategic Insights -

Banc Corp, a bank holding company, has sought approval to acquire Emerald Coast Bancshares Inc., a Florida-based savings association. The proposal involves the conversion of Emerald Coast Bank, a state-chartered savings bank, into a federally chartered savings association before its acquisition by Banc Corp. The approval request was made under section 4(c)(8) of the Bank Holding Company Act, which allows for the acquisition of savings associations by bank holding companies. The Board of Governors has carefully considered the proposal, weighing the potential benefits against potential adverse effects.

Key Takeaways:

  • The Board of Governors has approved Banc Corp's request to acquire Emerald Coast Bancshares Inc., a Florida-based savings association.
  • The acquisition is conditional on Banc Corp complying with the commitments made in connection with the notice, including maintaining Emerald as a savings association until August 31, 1999.
  • The Board has considered the financial and managerial resources of Banc Corp, its subsidiaries, and Emerald, and has concluded that the resources are consistent with approval.
  • The record indicates that consummation of the proposal would produce benefits for consumers, including improved services and access to a wider range of deposit accounts and loan products.
  • The Board has recognized that savings associations acquired by bank holding companies must conform their activities to those permissible for bank holding companies under section 4 of the BHC Act.
  • TBC has committed to conform all of Emerald's activities to those permissible under section 4(c)(8) of the BHC Act and Regulation Y.
  • The Board has considered comments submitted by the Director of Banking of the Florida Department of Banking and Finance, but has determined that the acquisition of Emerald as a savings association would not result in a violation of law.
  • The Board has determined that the balance of factors considered under the proper incident to banking standards of section 4(c)(8) of the BHC Act is consistent with approval.
  • The transaction shall not be consummated later than three months after the effective date of this order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Atlanta, acting pursuant to delegated authority.

Statistics:

  • Banc Corp operates one subsidiary bank in Alabama, with total consolidated assets of $104 million.
  • Emerald is the 173rd largest depository institution in Florida, controlling $31 million in deposits, representing less than 1 percent of state deposits.
  • TBC and Emerald do not compete in any relevant banking markets.
  • The Board has considered confidential reports of examination and other supervisory information received from the appropriate supervisory authorities for the organizations.
  • The proposed activities are expected to produce benefits for consumers, including improved services and access to a wider range of deposit accounts and loan products.

Sources:

  • 12 U.S.C. [sections] 1843(c)(8)
  • 12 C.F.R. 225.24
  • 63 Federal Register 68,768 (1998)
  • 12 C.F.R. 225.7 and 225.25(c)
  • 12 C.F.R. 225.28(b)(4)
  • Fla. Stat. Ann. [sections] 658.295(8)(a)
  • 12 U.S.C. [sections] 1842(d)