FEDERAL DEPOSIT INSURANCE CORPORATION
IN RE: Tarpon Coast National Bank (In
Organization)
Port Charlotte, Florida
Application for Federal Deposit Insurance
(Bank Insurance Fund)
ORDER
The Board of Directors ("Board") of the Federal Deposit Insurance Corporation
("FDIC") has fully considered all available facts and information relevant to
the factors of section 6 of the Federal Deposit Insurance Act and relating to the
application for Federal deposit insurance, with membership in the Bank Insurance Fund, for
Tarpon Coast National Bank, a proposed new national bank, with its main office to be
located at 1490 Tamiami Trail, Port Charlotte, Charlotte County, Florida, and has
concluded that the application should be approved.
Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement,
that the application submitted on behalf of Tarpon Coast National Bank, for Federal
deposit insurance, be and the same hereby is approved subject to the following conditions:
1. That beginning paid-in capital funds of not less than $7,500,000 shall be provided,
with $3,750,000 allocated to common stock and $3,750,000 allocated to surplus;
2. That any changes in proposed management of the bank or proposed ownership (10
percent or more of stock) of the bank, including new acquisitions of or subscriptions to
10 percent or more of the stock, shall render this commitment null and void unless such
proposed change is approved by the FDIC prior to the opening of the bank;
3. That during the first three years of operation the bank shall maintain not less than
an 8.0 percent Tier I capital ratio;
4. That Federal deposit insurance shall not become effective unless and until the
applicant has been established as a national bank, that it has authority to conduct a
banking business, and that its establishment and operation as a bank have been fully
approved by the Office of the Comptroller of the Currency;
5. That until the bank commences business, the FDIC shall have the right to
alter,suspend, or withdraw said approval should any interim development be deemed to
warrant such action; and
6. That if Federal deposit insurance has not become effective within twelve months from
the date of this Order, or unless, in the meantime, the FDIC has approved a request for an
extension of time, the consent granted shall expire at the end of said twelve-month
period.
Dated at Washington, D.C., this 31st day of March, 1998.
BY THE ORDER OF THE BOARD OF DIRECTORS
Robert E. Feldman
Executive Secretary
FEDERAL DEPOSIT INSURANCE CORPORATION
IN RE: Tarpon Coast National Bank (Proposed)
Port Charlotte, Charlotte County, Florida
Application for Federal Deposit Insurance
(Bank Insurance Fund)
STATEMENT
Pursuant to the provisions of section 5 of the Federal Deposit Insurance Act (12 U.S.C.
1815), an application for Federal deposit insurance, with membership in the Bank Insurance
Fund, has been filed on behalf of Tarpon Coast National Bank, a proposed new bank to be
located at 1490 Tamiami Trail, Port Charlotte, Charlotte County, Florida.
The proponents have delineated the northern part of Charlotte County, Florida
(including the communities of Port Charlotte and Punta Gorda), and the southeastern part
of Sarasota County, Florida (including the community of North Port), as the primary trade
area of the proposed bank. A review of the proposed bank's Community Reinvestment Act
Statement and other available information indicates that no inconsistencies with the
purposes of the Community Reinvestment Act appear to exist.
Initial capitalization is adequate, and acceptable deposit growth and operating profits
within a reasonable period of time are projected. The factors relating to the general
character and fitness of management and risk to the deposit insurance fund have been
resolved as favorable.
The application as submitted included the issuance of stock benefits to organizers to
compensate for financial support provided in the initial stages of establishing the bank
and to attract and retain qualified key personnel. There is no provision in the Federal
Deposit Insurance Corporation's ("FDIC") Statement of Policy regarding
applications for deposit insurance ('Statement of Policy") to accommodate the
granting of stock benefits to reward organizers for their financial support in the initial
stages of establishing a bank. The issuance of stock benefits to organizers who will not
be involved in the active management of the institution is also a contravention of
the Statement of Policy.
While the stock benefits proposed to be issued to the organizers will not be tied to
specific performance by active management as provided in the Statement of Policy,
such stock benefits would appear to be acceptable under the FDIC's proposed revisions to
that Statement of Policy. The Board of Directors ("Board") of the FDIC, in the
proposed revisions to the Statement of Policy and in recent cases involving stock benefit
plans for organizers, has concluded that such plans are not objectionable if such plans
represent reasonable compensation for the time and expertise or financial commitment of
the outside incorporators. In this particular case, the stock benefits for organizers are
not considered objectionable in that the stock benefits represent reasonable compensation
for the risk arising from the significant financial commitment of the outside
incorporators.
Accordingly, based on a careful evaluation of all available relevant facts and
information, the Board of Directors has concluded that approval of the application is
warranted subject to the conditions listed in the ORDER.
THE BOARD OF DIRECTORS
FEDERAL DEPOSIT INSURANCE CORPORATION
