Whitney Holding Corp. said Wednesday that it is buying Destin Bancshares Inc., a move that will bolster the New Orleans company’s operations in the fast-growing Florida Panhandle.
Thomas L. Callicutt Jr., a spokesman for the $7.8 billion-asset Whitney, said it is withholding the sale price until it completes on-site due diligence.
Jeff K. Davis, an analyst at First Horizon National Corp.’s FTN Midwest Research in Memphis, predicted that the price would be “five times book, at least.”
Frank Burge, Destin’s chairman, president, and chief executive, said the company needed an infusion of capital to keep up with the region’s rapid growth. “Our choices were to issue more stock and dilute our position, take the company public, or find a partner,” he said in an interview Wednesday.
The $470 million-asset Destin operates 10 branches in Escambia, Oskaloosa, and Walton counties. It reported net income of $2.8 million through June 30 and $4 million for 2003.
Whitney has seven branches in that market, and Destin “will give us a really significant presence in the Panhandle,” Mr. Callicutt said.
Mr. Burge said he is well acquainted with the management at Whitney, which he called “a historic yet growing franchise.”
In August, Whitney bought the $225.4 million-asset Madison Bancshares Inc. of Palm Harbor, Fla., for $66 million. That gave it four branches in the Tampa area.
The Destin deal is expected to close in the first quarter.
Mr. Callicutt said that beyond some back-office consolidation, Whitney intends to retain “all the people that face the customers,” including Mr. Burge.
