Perhaps With Sale in View, Florida Thrift Plans to Buy Second Bank Since

A Florida thrift said last week it plans to make its second bank acquisition since late last year - a deal that would boost its assets to nearly $330 million.

If Republic Security Financial Corp. of West Palm Beach continues to expand at its current pace, analysts said, it could be taken out by a larger regional. And maybe that's the plan.

"This is not just a little eight-branch thrift anymore," said Craig H. Woodward, chief executive of Woodward Trading Co. in Atlanta. "The bigger picture here is that this now makes them more attractive for a larger bank to come in and take them over."

With two of Florida's larger institutions being sold earlier this summer to NationsBank Corp., there are few midsize takeover candidates remaining for out-of-state regionals interested in the lucrative Florida market.

After $41 billion-asset Barnett Banks Inc. of Jacksonville, the next largest publicly held institutions are in the $500 million to $1 billion asset range - which Republic Security could be fast approaching.

Mr. Woodward said that he wouldn't be surprised to see Republic Security make yet another acquisition in the coming months, based on its latest capital raising efforts. Republic Security has hired Ryan Beck & Co. to conduct a public offering of preferred and common stock to raise between $16 million and $18 million, to be completed before the end of the year.

The $9.5 million being paid for the $45 million-asset Banyan Bank is more than 2.2 times the Boca Raton institution's book value. If shareholders and regulators approve, Republic Security would absorb Banyan's two offices by early next year.

Chairman and chief executive Rudy E. Schupp, who founded Republic Security 11 years ago at the age of 32, said in a press release: "Customers will continue to enjoy a banking alternative to that which is offered by the megaregional and money-center banks."

Republic Security took the unusual step for a thrift of buying a commercial bank - $80 million-asset Governor's Bank of West Palm Beach - last year. Several months ago it applied to convert to a bank, a process it hopes to complete by yearend. Analysts said Republic Security's stock is undervalued at the moment. It's trading at around $5, just above its book value of $4.33.

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