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Tarpon Coast National Bank (In Organization)

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



Last Updated 03/24/2011 Legal@fdic.gov