Republic Security Bank May Sell to Out-of-State Firm

Strategic Insights -

Despite denying any involvement in merger talks, Republic Security Financial Corp. is reportedly considering a sale to an out-of-state bank, possibly Wachovia Corp. of North Carolina. Republic Security Chairman and Chief Executive Rudy Schupp refused to comment on the speculation, saying, "We never comment on rumors." If a deal were to happen, it would mark the latest takeover of a Florida bank by an out-of-state firm. Nation's Bank, now part of Bank of America, purchased Jacksonville-based Barnett Banks in 1998, leaving Republic Security as the largest commercial bank based in Florida.

Key Takeaways:

  • Republic Security Financial Corp. is considering a sale to an out-of-state bank, possibly Wachovia Corp. of North Carolina.
  • The bank's lagging stock price has forced it to consider a sale, with the stock price dropping 42 percent in the past year.
  • Republic Security has been hit harder than most by a bear market for bank shares, partly caused by rising interest rates.
  • The bank has $3.4 billion in assets and 98 offices in 11 Florida counties.
  • Republic Security has been seeking suitors and has spoken to several banks, including Wachovia Corp.
  • A deal with Wachovia would boost Wachovia's presence in Florida, where it's the 26th-largest bank, with $1.1 billion in deposits.

Statistics:

  • Republic Security stock price has dropped 42 percent in the past year.
  • The bank has $3.4 billion in assets and 98 offices in 11 Florida counties.
  • Wachovia has $71 billion in assets and nearly 700 offices and 1,400 ATMs in Florida, Georgia, North Carolina, South Carolina, and Virginia.
  • Republic Security ranks 19th overall, with $2 billion in deposits. Wachovia is the 26th-largest bank, with $1.1 billion in deposits.

Sources:

  • Palm Beach Post Staff Writer, "Republic Security Financial Corp. may sell to Wachovia Corp."
  • [No source date available]