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United Bank being bought
By JEFF HARRINGTON, Times Staff Writer ST. PETERSBURG -- United Financial of St. Petersburg is being acquired by Georgia-based Synovus, the latest in a string of small independent banks in the Tampa Bay area to succumb to an out-of-state takeover offer. Synovus said Wednesday it will pay about $80-million in stock and cash for United, an institution that includes United Bank, United Bank of the Gulf Coast, United Trust and the EPW investment management operation. With $408-million in assets, United ranks among the five largest community banks in the area. Over the past year, well-established independent banks such as Mercantile Bank of St. Petersburg and Manufacturers Bank of Tampa have been bought out. United president and chief executive Neil Savage said he would not have sold to Synovus if not for the unusual level of independence that Synovus affords the banks it buys. "All (Synovus-owned) banks run autonomously and all they want to see are the numbers at the end of the year," he said. "It's a different breed of cat." Synovus, an $18-billion institution based in Columbus, Ga., operates five banks in north Florida: the Bank of Pensacola, Vanguard Bank and Trust in Valparaiso, First Coast Community Bank in Fernandina Beach, Quincy State Bank in Quincy and Tallahassee State Bank in Tallahassee. This is its first foray into central Florida. As with previous Synovus deals, United Bank will keep its name and its current management. None of United's 140 to 145 employees will be laid off or relocated. Synovus spokeswoman Aimee Davis said her company's mission is to offer financial services as an enhancement to what the banks it buys are already offering. Expect to see the addition "a provider of Synovus financial services" underneath United signs but no other substantive changes, Davis said. Savage, 61, said he will keep his CEO role and has no imminent plans to retire. "There are acquisitions where the board or management goes away," he said, "and we weren't looking for that kind of a partner." Ben Bishop, president of Jacksonville investment banking firm Allen C. Ewing & Co., has represented more than 50 independent Florida banks when they've decided it was time to merge. But he was surprised to learn of the Synovus deal. "United is doing extremely well, and I thought they would stay independent for another five years or so," Bishop said, "but it's tempting when someone makes a good offer." He gave high marks to both United and Synovus, which perennially has been listed by Fortune magazine as one of the best companies in America to work for. The sales tag, about 20 times earnings or three times United's book value, is in line with prices being paid for high-quality banks, Bishop said. United historyFounded in 1980, United was privately held for much of its existence. In 1985, Savage assembled a group to buy the bank, and in 1997 the bank relocated to its five-story headquarters at 333 Third Ave. N in St. Petersburg. That same year, the bank endured a round of negative publicity after it was learned that the Rev. Henry Lyons, the deposed leader of the National Baptist Convention, had opened a secret bank account at United. After going public in late 1998, United grew at a fast clip. It began construction in Clearwater this summer on its eighth branch while its United Bank of the Gulf Coast subsidiary plans to open a second office in Manatee County by year-end. Savage said he decided about 11 months ago, however, that he could not quickly build United into a $1-billion institution without another public offering or a merger. A friend at a North Carolina country club mentioned Synovus' style and Savage let it be known he was open to negotiating a deal. "We didn't run an auction," he said. Among United's top shareholders, each owning about a 10 percent stake, are Swiss investor Michael May and the family of Claude Focardi, a prominent area beer distributor and arts patron who died in June. Synovus has agreed to issue 2.47-million shares and pay $29-million in cash to fund the deal, valuing United stock at $17.15 a share. At Wednesday's stock prices, the deal would be valued at $78.8-million. Stock in United closed at a new 52-week high of $16.18 a share, up $1.18 or 8 percent. Synovus shares closed at $20.87 apiece, up 70 cents or 3.5 percent. Pending regulatory approval, the deal is expected to close in January. -- Jeff Harrington can be reached at harrington@sptimes.com or (813) 226-3407.
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From the Times Business report
From the AP
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