STATE OF FLORIDA
DIVISION OF ADMINISTRATIVE HEARINGS
THOMAS E. ROWELL, JR., )
)
Petitioner, )
)
vs. ) CASE NO. 86-2607
) WAKULLA COUNTY STATE BANK and. ) DEPARTMENT OF BANKING AND )
FINANCE )
)
Respondent. )
)
HEARING OFFICER'S REPORT
Pursuant to notice, this cause came on for formal hearing before Diane K. Kiesling, duly designated Hearing Officer, on February 23-24, 1987. The hearing was conducted in Tallahassee, Florida.
APPEARANCES
For Thomas E Rowell, Jr. Bruce Culpepper
and the organizers of the Haben & Culpepper, P.A. proposed CITIZENS BANK OF Post Office Box 10095 WAKULLA: Tallahassee, Florida 32302
For Wakulla County State Ronald A. Mowery and Bank: Leigh D. Hart
Mowery & Anderson
1114 North Adams Street Tallahassee, Florida 32303
For Department of Banking Dana M. Wiehle
and Finance: Assistant General Counsel Office of the Comptroller The Capitol, Suite 1302 Tallahassee, Florida 32301
ISSUES
The general issue to be resolved in this proceeding concerns the entitlement of the organizers of the The Citizens Bank of Wakulla for authorization to organize their corporation for the purpose of conducting general banking business in Wakulla County, Florida. The standards by which the applicant's entitlement to the authority sought is to be measured are set forth in Section 658.21, Florida Statutes, and Chapter 3C-10.0051, Florida Administrative Code.
FINDINGS OF FACT
On June 5, 1986, the organizers of the applicant, The Citizens Bank of Wakulla submitted to the Department of Banking and Finance (Department) an application, pursuant to Section 658.19, Florida Statutes, for authority to organize a corporation for the purpose of conducting a general banking business in Wakulla County, Florida. Notice of receipt of the application of the The Citizens Bank of Wakulla was published in the Florida Administrative Weekly on June 20, 1986, under the name of The Citizens Bank of Wakulla.
A Notice of Intention to Appear and Petition for Public Hearing was filed by Wakulla county State Bank on or about July 9, 1986. The Notice contained objections to the granting of the application of the The Citizens Bank of Wakulla on the following grounds:
There is no need for additional bank facilities in the primary service area where the proposed bank is to be located.
The primary service area will not support the proposed bank and all other existing bank facilities in said area.
Public convenience and advantage will not be promoted by the establishment of the proposed bank.
Respondent's Notice was later amended to include a general denial of all criteria set forth by Section 658.21, Florida Statutes.
The application of The Citizens Bank of Wakulla was deemed substantially complete on or about July 16, 1986. It was supplemented by additional information requested by the Department on or about June 27, 1986, and again on February 3, 1987.
The proceeding had originally been noticed for hearing to be held on November 24-25, 1986. Wakulla County State Bank filed a Motion for Continuance which was granted on November 14, 1986. The proceedings were rescheduled for hearing for February 23-24, 1987, in Tallahassee, Florida. The cause came on for hearing as noticed and the trial proceeded for two days. Notice of the hearing was published by The Citizens Bank of Wakulla within the time period prescribed by rules in the Wakulla News, a newspaper of general circulation.
The proposed bank (Citizens) will be located in Crawfordville adjacent to the new Market Square Shopping Center. Crawfordville is in the geographic center of Wakulla County and is the county seat. It is the only financial and commercial center in the county.
The Primary Service Area (PSA) is defined as the smallest geographic area from which the proposed institution can expect to draw approximately 75 percent of its deposits. The PSA for Citizens was determined by Dr. Arnold A. Heggestad after an analysis of geographic factors, economic factors, and commuting patterns and is defined to include all of Wakulla County.
Wakulla County is a primarily rural county. It is bordered on the south by the Gulf of Mexico. It is bordered on the north by Leon County. Its western border is the Apalachicola National Forest and the Ochlockonee River. Across the river is sparsely populated Liberty County. Its eastern border is
defined by vast forests of the Aucilla Wildlife Management Area and the eastern edge of the St. Marks National Wildlife Refuge. The eastern county border is Jefferson County.
Residents of the county are precluded by the Gulf of Mexico from going further south for their banking services. It is difficult to travel west because of the limited roads through the forest and little bridge access across the Ochlockonee River.
A similar geographic constraint exists on the eastern border. Residents of the county would have to travel over 30 miles on Route 98 to reach Perry for financial services. It is highly unlikely they would do this. Few residents of that county presently bank in Crawfordville.
The northern border is the Leon County line. The area between Crawfordville and Tallahassee in Leon County is relatively unpopulated with swamp land and timber forests. There is considerable commuting from Wakulla County into Tallahassee.
Population data indicates that the County has approximately 13,000 people. The State of Florida's population growth from 1970 to 1985 was approximately 3.44 percent while Wakulla County's growth equalled 5 percent. The unincorporated county grew at a faster rate of 5.6 percent, making Wakulla County one of the most rapidly growing counties in the Florida panhandle.
FLORIDA ESTIMATES OF POPULATION
AGE GROUP | WAKULLA COUNTY 1980 1984 | STATE 1980 1984 |
0-14 | 26.1-26.0 percent | 19.3-19.2 percent |
15-44 | 44.2-44.6 percent | 41.8-41.9 percent |
45-64 | 18.4-18.1 percent | 21.6-21.0 percent |
65 + | 11.3-11.3 percent | 17.3-18.0 percent |
Approximately 25 percent of the Wakulla County work force commutes to Tallahassee. The primary occupation for these commuters is state government. Consequently, a significant percentage of Wakulla County residents bank in Tallahassee. However, there is very little commuter activity in the other direction. Therefore, few deposits in Wakulla County are held by residents of Leon County.
The levels of services offered in the market and the rates and charges are depicted in the Tables attached hereto as Exhibit "A". Most standard financial services are available in the PSA. At present, there is only one institution, Wakulla County State Bank, that offers a full range of financial services. The other depository institution, Security First Savings and Loan Association, offers the traditional savings and loan services but has not fully moved into providing commercial banking type services. There is also a credit union at Olin Corporation, approximately 12 miles from Crawfordville.
The population of Wakulla County per banking office is presently above the state average. The population per bank and savings and loan office of Wakulla County is also above the state average. The population per banking office, after the advent of Citizens, will remain above the state average.
Testimony established that Florida and national banking policy has been to open up rural counties to more competition and that the citizens of one bank communities receive the direct consequences of greater competition in increased innovation and services by competitors. It is established that the advent of another full service financial institution in Wakulla will promote such competition and the salutatory effects thereof for the citizens of the primary service area.
There are some significant services that are not currently available in the PSA. First, the banking hours have been varied and limited over the past years. In October, 1986, after this application was filed, Wakulla County State Bank extended its services to additional hours on Wednesday afternoon. Neither existing institution offers any banking service on Saturday afternoon. Neither financial institution is open during the evenings. For the residents of the County that commute to Tallahassee, banking becomes very difficult by the limited hours. The proposed bank will offer a full range of services during traditional hours and at other times not now being used by other financial institutions.
The existing financial institutions in the area do not offer access to Federal Housing Authority or Veterans Administration loans or provide access to funds through the Federal National Mortgage Association secondary markets. Wakulla County State Bank does not offer 30 year maturity mortgages from their own portfolio, or provide customers access to the national secondary mortgage markets. Customers that wish to obtain this service are forced to go to Tallahassee or to other metropolitan areas.
The financial institutions presently located in Wakulla County are not substantial competitors in the real estate mortgage market of the County. Evidence indicates that in 1983 of $20,824,667.00 of credit established and secured by mortgages on Wakulla County real estate, Wakulla County State Bank contributed $1,638,293.00 of such amount and the branch of Security Federal Savings & Loan Association contributed $1,137,115.00. In 1985 of $28,403,589.00 of credit established and secured by mortgages on Wakulla County real property, Wakulla County State Bank extended $3,686,486.00 of such amount and Security Federal Savings & Loan Association branch provided $352,432.00 of such amount. Evidence indicates that a like degree of participation in the real estate mortgage market by present financial institutions has continued at approximately the same percentages.
No present Wakulla County financial institutions offer an automated teller machine (ATM) in the county. In most banking markets, automated teller machines are becoming a very popular method for providing banking services to a significant set of bank customers. They are free to use the machine 24 hours per day as their cash and banking needs do not necessarily coincide with traditional banking hours.
The lack of an ATM is a serious deficiency in the primary service area. It is compounded by the relatively limited number of hours the banks and their drive-ins are open. On a Saturday afternoon, for example, a customer cannot obtain banking services. The only option is to drive the 20 miles into Tallahassee to use a cashing service at grocery chains.
An additional service that is not available in Wakulla County is the provision of financial planning services. Individuals and small businesses strongly need personal financial planning advice on a wide range of matters. These include cash management, tax planning, estate planning, savings and
investment advice, and credit advice. To obtain these services, residents of Wakulla County are forced to go to other areas, such as Tallahassee.
The proposed bank will offer a full range of financial services in Wakulla County. It will offer all types of deposits demanded in the County and will stand ready to provide financing for all creditworthy purposes for business enterprises and for individuals. It will be deemed a full service financial institution and will market this aspect of its operations.
The proposed bank will be very competitive with respect to rates on deposits, prices for services, and interest rates on loans.
The banking hours will be more convenient for the proposed bank than currently exist in Wakulla County. Applicant intends to open all day on Saturday. In addition, applicant plans to remain open on Friday evenings until 7:00 p.m. As many potential customers are paid on Friday, applicant believes this will be an effective marketing device. The increased banking hours will provide greater availability of banking services in the Primary Service Area. Applicant believes that the increased banking hours will have a very important effect on those individuals that currently commute to Tallahassee.
The proposed institution will establish a formal mortgage department within the bank and will actively participate in the mortgage market.
Management of the proposed institution has substantial expertise in real estate construction and development. Mr. Thomas Rowell has been involved in real estate development, brokerage, and appraisal in Florida for the past twenty years. He has been performing these services in Wakulla County for the past twelve years. As Wakulla County has tremendous growth potential as a resort county, construction and development financing, as well as permanent mortgage financing, will be an important financial need for the County over the next two decades. The management of the proposed institution should play a major role in encouraging and funding construction and development projects.
The proposed bank will offer an automated teller machine (ATM) on the premises of the financial institution. For those increasing numbers of individuals that rely on ATM's for their financial services, this would be an important service for the community. The ATM would be part of a statewide network. Consequently, the proposed bank's ATM will be available for tourists and other individuals traveling in Wakulla County. Currently, such persons would have no real access to cash dispensing facilities in the County.
The proposed bank will market a financial planning service for its customers. Individuals will be able to come to the institution for advice on tax planning, investments, credit planning, and refinancing decisions. Similarly, the proposed bank will offer a comparable service for the many small businesses operating in Wakulla County. This service currently is not available in the County.
Public convenience and advantage will be promoted by establishment of The Citizens Bank of Wakulla.
II.
Reasonable Promise of Successful Operation
Wakulla County is primarily a rural county. It is characterized by large commercial forests, and by the Apalachicola National Forest. A full 86 percent of all its land area is in forests. As a percent of total land dedicated to forests, Wakulla County ranks fifth in the state.
The southern border of Wakulla is the Gulf of Mexico. Consequently, it is a major seafood production county in the state. In 1982, over 800,000 pounds of shellfish were landed in Wakulla County along with an additional 437,000 pounds of fish. Most of the shellfish are blue crabs. This makes Wakulla County one of the leading counties in the state in seafood production.
The bulk of employment in the County is derived from the forests or seafood industries. There are many crab processors within the County. In addition, many residents are employed as independent drivers for the logging industry, work as loggers, or maintain small tree nurseries or tree farms. The drivers transport timber to the logging mills located in Perry and Port St. Joe, Florida.
The primary manufacturing facility in the County is the Olin Corporation, located approximately 12 miles from Crawfordville. The Olin Corporation manufactures ammunition for the U.S. Government, other countries and for commercial customers. Its current payroll is over $11 million for 464 employees. In 1986 it expanded its employee base by an additional 53 employees. This increased its payroll to $12,726,366.
Crawfordville is the site of a new shopping center that is currently under construction. The Market Square Shopping Center currently has approximately 8 shops rented with approximately 16 employees. It will have 21 shops with an estimated payroll of $700,000 for its 60 employees. The bank will be located immediately adjacent to the shopping center. This `shopping mall will draw customers from the entire county and will further guarantee the role of Crawfordville as the retail and financial center of Wakulla County.
As a relatively sparsely population county, the bulk of the population lives on small farms or along country roads. However, there are a growing number of subdivisions as well, reflecting the growth of the County and the addition or more urbanized, higher income, individuals to the County.
There are 11 subdivisions currently under construction in the County. They range from relatively inexpensive, low income, housing to more expensive developments.
Real estate development suggests that the real estate market is relatively strong in Wakulla County. In the housing developments, virtually all of the completed units have been sold. However, there is still room for growth as there are significant numbers of units in several subdivisions that have been planned but are not currently under construction.
The residents of Wakulla County currently conduct their banking business at the Wakulla County State Bank and at Security First savings and Loan. In addition, a substantial percentage of county residents conduct their banking business in Tallahassee.
The businesses in Wakulla County must rely on Wakulla County State Bank as their only source of traditional banking services. However, many businesses still conduct their banking business in Tallahassee. The distances involved make this option very inconvenient. Citizens should attract the
deposit and loan business of many of these business firms and repatriate the funds to make loans in Wakulla County.
Citizens should be able to attract a significant number of depositors. The applicant's projections are based on several factors. First, they will offer competitive rates and service charges. Second, they intend to provide more convenient hours than are presently offered by other institutions in the County. Third, the availability of an automated teller machine will attract some depositors. Fourth, the organizers plan to play an important role in the real estate development and financing industry. The provision of loans to builders and to home buyers will also attract deposit business. Finally, the organizers are prominent and respected individuals in the County. They will provide deposits from their own activities and will be in a position to help market the bank services to their friends and business associates.
The primary source of deposits for the proposed bank will be the individual residents and business enterprises in Wakulla County. The proposed Bank's marketing campaign will be directed at attracting deposits from households and from the small businesses operating in the County. The campaign will include the provision of services not currently available in the area such as ATM's, a convenient location, desirable hours, and competitive interest rates and service charges. In addition, the proposed Bank will provide personal and mortgage loans to individuals, and commercial loans to small businesses. It is expected that many borrowers from the Bank will also choose to place their deposit business with the Bank.
Wakulla County's strong population growth should contribute to Citizen's reasonable promise of successful operations and this growth is expected to continue.
In addition to the rapid growth of the County, the population base is very favorable for an additional financial institution. The population is younger than the rest of the state. The 15-44 age group, which represents the most economically productive age group, is 44.6 percent of the population, as compared to 41.9 percent in the rest of the state.
Per capita income in Wakulla County, as in all rural counties, is below the state average. However, unlike many rural counties, the growth in personal income that has taken place in the state in the past five years has also been occurring in Wakulla County. Between 1980 and 1983, per capita income in Wakulla County has grown at exactly the same rate as in the rest of the state, which is dominated by the larger urban areas. Unemployment has consistently been below the state average. Furthermore, the residential activity and Olin Corporation's expansion strongly suggest this growth will continue.
Citizens should be able to attract sufficient business to become a viable institution in a short period of time. Its presence will not have a substantially adverse impact on the two existing financial institutions already in Wakulla County. There will be sufficient growth to support an additional financial institution. The average growth in deposits in Wakulla County is more than enough to accommodate the business plan of the proposed Bank without stopping all growth for the other institutions. If the marketing campaign is successful in attracting deposits back into the County from commuters to Tallahassee, there may be a positive effect on existing financial institutions.
The institutions already in Wakulla County are well established and in a position to deal with any competition from the new, proposed institution. One institution, Security First, is a branch of a large savings and loan association headquartered in Daytona Beach with branches over the entire State. It has been in Wakulla County since 1975. The commercial bank, Wakulla County State Bank, has been in existence since 1974. It is profitable and has enjoyed relatively consistent growth over the past several years.
Statistical data and evidence show that Wakulla County State Bank, relative to all of the banks operating in the State of Florida of similar size, has and will continue to do very well.
PERFORMANCE EVALUATION
Wakulla County State Bank (Dollars in Thousands)
Total Assets | 28543 | 22382 | 20273 | 15200 | 14532 | 20186 |
Total Deposits | 26267 | 20459 | 18575 | 13721 | 13242 | 18452.8 |
Total Loans | 18326 | 14690 | 10742 | 8675 | 7917 | 12070 |
Total Equity | 1888 | 1596 | 1455 | 1298 | 1135 | 1474.4 |
New Income | 407 | 257 | 264 | 207 | 204 | 267.8 |
Return on Assets | 1.43% | 1.15% | 1.30% | 1.36% | 1.40% | 1.33% |
Return on Equity | 21.56% | 16.10% | 18.14% | 15.95% | 17.97% | 17.95% |
Capital/Assets | 6.61% | 7.13% | 7.18% | 8.54% | 7.81% | 7.45% |
Loan/Deposits | 69.77% | 71.80% | 57.83% | 63.22% | 59.79% | 65.41% |
Deposit Growth | 28.39% | 10.14% | 35.38% | 3.62% | 19.38% | |
Asset Growth | 27.53% | 10.40% | 33.38% | 4.60% | 18.98% |
Wakulla County State Bank's loan to deposit ratio, which is the common measure of social performance of a bank, has been quite high. Wakulla County State Bank in 1981 reached the 90th percentile of all banks in Florida and presently remains in the top 30th percentile of all banks in Florida.
Wakulla County State Bank has had reasonably solid growth through the statistical period of 1980 through the second quarter of 1986. The bank started with $9,000,000.00 in deposits and has grown to $28,000,000.00 by the middle of 1986. One-bank communities with banks of this deposit size are rare in Florida. The St. Marks office of Wakulla County State Bank has grown in deposits by the amount of $4,000,000.00 since its inception.
The growth of Wakulla County State Bank's loans to some degree parallels the growth of its deposits.
Charge-offs as a measure of losses on loans were better than average for Wakulla County State Bank as compared to the remainder of the State.
With regards to profitability, Wakulla County State Bank ranks with the highest banks in the State. In terms of the return to the shareholders, the bank was in the top 15 percent in 1981 and reached the top 10 percent in 1985.
With regards to return on assets, Wakulla County State Bank also ranks in the top 20 percent.
The spread, which is the difference between the rate on deposits and the rate on assets, of Wakulla County State Bank has also steadily improved
relative to other Florida banks and Wakulla County State Bank ranks with the highest banks in the state in that category.
Neither of the existing institutions is in any danger of failing. Either could survive well even if all of the new growth in business were captured by Citizens. There is no reason for any concern for either institution if Citizens enters the market. Both the Chairman of the Board of Wakulla County State Bank and the President of Wakulla County State Bank confirm that Wakulla county State Bank is sound and in no danger of being put out of business if the application for the Citizens' charter is granted.
The President for Wakulla County State Bank even stated that he expects no loss of deposits to the new bank except for those deposits of the organizers of Citizens which may be placed with Wakulla County State Bank.
Citizens will begin business with approximately $1,500,000 in deposits. These funds will come from marketing efforts of management and directors as well as deposit accounts of directors. Citizens should be able to double this amount by the end of the first year to $3,000,000. It is probable that Citizen will grow by 50 percent per year in the following two years so that by the end of the third year, it should have deposits of $6,750,000.
The new bank will take some deposits away from other financial institutions because of its convenience, because of the mix of services it will offer, and because of the influence of its directors. Thus the growth of
$3,000,000 during the first year will come from both existing depositors at other Wakulla County financial institutions, county residents with accounts in Tallahassee, and some share of new growth.
In the second and third years, most of Citizens' growth will come from sharing in the new growth in the county. Bank deposits have grown an average of
$4.5 million per year in Wakulla County during the past three years. It is expected that this deposit growth will accelerate. Citizens reasonably anticipates a growth of $1.5 million in the second year and a growth of $2.25 million in the third year. This represents, at maximum, only one half of the expected new growth in bank deposits in the County.
In a low interest rate environment, Citizens projects a minimal loss of $2,420 after recouping the tax deductions during their first year of operations. Earnings are reasonably projected to grow to $21,420 during the second year and $63,386 during the third year. As the bank continues to grow in deposits, earnings will also grow as the fixed costs of operations are spread over a larger volume of activity.
Its pro forma distribution of assets in the portfolio are based upon the Organizers' projections of market growth in Wakulla County, especially the growth in housing and real estate development. The projected portfolio is similar to comparable financial institutions, but adjusted to reflect the business plan of the Organizers and their market projections.
New deposit types are likely to develop that will be demanded in the market. As an approximation, Citizens properly anticipates its deposit structure will be similar to other financial institutions operating in relatively rural Florida counties.
The initial premises and equipment will be valued at approximately
$375,000. This investment will increase at 10 percent per year, net of
depreciation. Initial salary expense will be $135,000 and initial non-interest operating expenses will be $100,000 per year. These expenses, and salaries, are expected to grow at the rate of 20 percent per year.
Other operating income, which will be derived from service charges and fees is reasonably expected to be $40,000 per year during the first year and to grow by 50 percent per year in following years, at the same level as the growth in deposits. If there is an increase in off-balance sheet fees and income this figure will grow at even a faster rate and will increase overall profitability faster than the projections suggest.
By the end of the third year of operation, Citizens is expected to be earning 0.79 percent on assets and returning 5.86 percent on invested capital, assuming no dividends. The capital to assets ratio will be a very stable 13.47 percent.
The local conditions indicate reasonable promise of successful operation for The Citizens Bank of Wakulla and those financial institutions already operating in the community.
III.
Capital Structure
Applicants initially proposed to invest $1,000,000 in capital in the Bank, to be initially divided into $600,000 in common stock, $300,000 in surplus, and $100,000 in undivided profits. Applicants believe this amount of capital is adequate.
Based on the FDIC hearing, an additional $500,000 of capital is required in order to obtain deposit insurance and therefore Citizens will raise
$1,500,000 capital which means, according to the same ratio as originally anticipated, that the initial capital will be divided into $900,000 in common stock, $450,000 in surplus and $150,000 in undivided profits. Dr. Arnold Heggestad, Citizens' expert in general banking, finance economics and banking regulations established that the original $1,000,000 would be adequate capital for the initial activities of the bank. $1,500,000 is abundantly adequate.
The growth in deposits will not be so rapid as to push capital below acceptable levels. Projected growth will leave the capital to assets ratio at
13.47 percent after the third year of operation. If growth were to exceed projections, Applicants expect that the growth in earnings would permit undivided profits to increase at a sufficient rate to maintain adequate capital.
The demand for loans in the county will come primarily from small businesses and from households. Given a capital level of $1,500,000, Applicants will have sufficient capital to handle the vast majority of loans they anticipate holding on their books.
The proposed capital structure is adequate and meets the minimum statutory requirements.
IV.
Directors and Officers
The proposed initial board of directors is comprised of men with significant contacts with PSA. Three, Danny R. Metcalf, Sr., Leharve Francis Young, Jr. and Edwin G. Brown, live in and conduct their businesses in Wakulla County. A fourth, Thomas E Rowell, Jr., lives along the border of Wakulla County and conducts all of his business activities in Crawfordville. The fifth, Mr. Tom Humphress, lives in Tallahassee, but has had extensive banking contacts with the PSA as President and Chief Executive Officer of Barnett Bank of Tallahassee and as the first Chairman of the Wakulla County State Bank. The proposed directors have general business and banking experience. Each of the proposed directors has a general reputation for integrity and honesty in and throughout the community in which he lives. The proposed director, Tom Humphress, who is not a proposed officer, has direct experience as a director with financial institutions within 3 years of the date of the application, when he served as a member of the Board of Directors of Barnett Bank of Tallahassee until his retirement January 1, 1986. The proposed officers and directors of The citizens Bank of Wakulla are as follows:
THOMAS E ROWELL, JR., Proposed Director, President and Chief Executive Officer. Mr. Rowell has spent his entire professional career in the fields of Finance and Real Estate. He has been employed as Chief Appraiser and as Vice President of Tallahassee Federal Savings & Loan Association (now Security First Federal Savings and Loan Association), Director of Tallahassee Bank & Trust Company, Director of
Tallahassee Bank North, Member of the Executive Committee and Loan Committee of
Tallahassee Bank & Trust Company (now Barnett Bank of Tallahassee), Member of Executive Committee and Loan Committee
for fifteen years at Barnett Bank of Tallahassee, Founder-Director-Vice-Chairman and Chairman of Wakulla County State Bank
in Crawfordville for twelve years. Mr. Rowel has extensive experience in business and real estate development and has owned several businesses in Wakulla County.
Tom N. Humphress, Proposed Director. Mr. Humphress began his banking career with Capital City (now First National) Bank of Tallahassee in July, 1934. In 1941 he joined
the U.S. Army and served as Finance Disbursing Officer until December, 1945. During that time he received the Bronze Star Medal and the Meritorious Service Medal and is
presently Colonel USAR (Ret). Mr. Humphress was reemployed by Capital City Bank in
1946, served as an Assistant Bank examiner with the Federal Reserve Bank of Richmond in 1947, and worked as an Assistant Cashier in the
Commercial Loan Department of the First National Bank of Palm Beach in 1948. Mr. Humphress was a principal in the organization of the Tallahassee State Bank, subsequently the Tallahassee Bank and Trust Company and subsequently the Barnett Bank of Tallahassee.
He served as Cashier, Vice President, Executive Vice President, President, Chairman and Chief Executive Officer. Mr. Humphress retired as an officer October 1, 1981,
but continued to serve on the Executive Loan Committee and Board of Directors until January 1, 1986. Mr. Humphress graduated from
Leon High School in Tallahassee and the graduate School of Banking (Rutgers University) Class of 1959. He holds a Pre- standard Certificate from American Institute of Banking and Completion Certificate from the Senior Bank Officers Seminar at
Harvard University. Mr. Humphress was an original organizer and Director of the Citizens Bank of Perry, Florida, the Peoples Bank of Tallahassee (now Florida National),
The Barnett Bank of Tallahassee North
(now a branch of Barnett Bank of Tallahassee) and the Wakulla County State Bank in Crawfordville.
Danny R. Metcalf, Sr., Proposed Director. Mr. Metcalf owns and operates the largest seafood processing plant in Wakulla County.
He has operated this business for twenty years employing several hundred people in Wakulla County.
Leharve Francis Young, Jr., Proposed Director. Mr. Young owns and operates Harvey-Young Funeral Home in Crawfordville. This business has been in operation for the past two years. Mr. Young also owns and operates Harvey Carpet and Tile Company in Tallahassee. He has managed this operation
for the past ten years. He is also presently a co-owner of Capital Stone Company in Tallahassee. Mr. Young has real estate interests in Wakulla County.
Edwin G. Brown, Proposed Director. Mr. Brown is a Registered Land Surveyor in Crawfordville, Florida. He has been
a surveyor for eleven years. Mr. Brown's firm does the majority of the surveying and
planning work in Wakulla and Franklin Counties. This involves subdivision plats, land surveying and appearances before Planning
Boards and County Commission Meetings.
The proposed officers have sufficient financial institution experience, ability, standing, and reputation and the proposed directors have sufficient business experience, ability, standing, and reputation to indicate reasonable promise of successful operation. At least one of the proposed directors who is not also a proposed officer has direct experience as an officer or director of a financial institution within 3 years of the date of the application.
V.
Banking House Quarters
The proposed bank building to be constructed to house Citizens will be a two-story masonry building. It's style will be an Early American design or a Williamsburg design. It will contain 5,000 square feet of bankable space and will contain all amenities associated with the main office of a financial institution, including an approximately 22 x 25 public lobby, 10 x 20 vault, three private offices (one 17 x 14 and two 12 x 15), a 19 x 15 conference room,
17 x 21 bookkeeping area, men's and women's restrooms, janitorial, electrical, mechanical and storage areas.
Provisions for temporary quarters are as follows:
Temporary quarters are to be located of the same site as the permanent quarters
of Highway 319 at the new Market Square Shopping Center in Crawfordville, Florida.
The temporary quarters will be housed in a 24 x 60 modular bank approved by the
State of Florida, Department of Community Affairs. The construction is wood with a steel frame used in commercial mobile bank buildings. Major facilities include one 76" x 54" drive- in teller unit, four inside teller windows, one office, bookkeeping area and vault.
Temporary quarters will be leased from Florida Mobile Leasing, 3501 South State Road 7, Fort Lauderdale, Florida 33314- 2228. The lease terms are a monthly rental of $1,000.00 per month with a minimum six months lease.
The set up time for the temporary quarters will be one week and the estimated use time to be six months.
The cost of items of furniture, fixtures and equipment to be purchased for
temporary quarters are as follows:
Total Total Cost Annual
Item Units if Owned if Leased
Safe | 1 | $ 8,500.00 | |
Drive-In Window | 1 | 10,000.00 | |
Adding Machines | 2 | 1,000.00 | |
Check Writer | 1 | 1,750.00 | |
Microfilm | 1 | 8,000.00 | |
Proof Machine | 1 | $3,600.00 | |
Teller Machines | 4 | 4,000.00 | |
Typewriter | 1 | 1,000.00 | |
Miscellaneous Items | 3,500.00 |
ALL OF THE ABOVE ITEMS WILL BE UTILIZED IN THE PERMANENT BANK.
A recapitulation of nonrecoverable costs involved in establishing temporary
quarters are as follows:
Site preparation | $5,000.00 |
Utility Cost | 600.00 |
Monthly Lease (6 months) | 6,000.00 |
Delivery & Set up Cost | 3,600.00 |
Provision has been made for suitable quarters at the location in the application.
VI.
Corporate Name
The corporate name of The Citizens Bank of Wakulla has been reserved with the Department of State by the applicant.
SUMMARY
In summary, it has been established that public convenience and advantage would best be served by the approval of the application to establish The Citizens Bank of Wakulla. It is determined in light of the facts enumerated above that the approval of the application to establish The Citizens Bank of Wakulla would best insure a strong competitor and healthy competition in the banking market of Wakulla County. The citizens of the PSA will directly benefit from the infusion of new competitions created by the proposed bank. Although ATM services, additional mortgage lending, financial planning services and more convenient hours are predicted as immediate additional services offered to the community, the major benefit will be increased desire by all financial institutions in the area to use innovation and greater services to compete in the market for deposits and customers. This can be accomplished without detrimentally affecting the soundness or stability of existing financial institutions in the PSA. All of the statutory requirements for approval have been accomplished and established by the Applicants.
DONE and ENTERED this 13th day of May, 1987, in Tallahassee, Florida.
DIANE K. KIESLING
Hearing Officer
Division of Administrative Hearings The Oakland Building
2009 Apalachee Parkway
Tallahassee, Florida 32399-1550
(904) 488-9675
Filed with the Clerk of the Division of Administrative Hearings this 13th day of May, 1987.
COPIES FURNISHED:
The Honorable Gerald Lewis Comptroller, State of Florida The Capitol
Tallahassee, Florida 32399-0305
Charles Stutts General Counsel
Office of the Comptroller Suite 1302, The Capitol
Tallahassee, Florida 32399-0305
Dana M. Wiehle
Assistant General Counsel Office of the Comptroller Suite 1302, The Capitol
Tallahassee, Florida 32399-0305
Bruce Culpepper
Haben & Culpepper, P.A. Post Office Box 10095 Tallahassee, Florida 32302
Ronald A. Mowery and Leigh D. Hart Mowery & Anderson
1114 North Adams Street Tallahassee, Florida 32303
TABLE A
SERVICES AVAILABLE IN AND NEAR PRIMARY SERVICE AREA
Service | Wakulla County State Crawfordville | Wakulla County State St Marks | Security First |
Demand | |||
Deposits | Yes | Yes | No |
NOW Accts | Yes | Yes | Yes |
Super-Now | Yes | Yes | Yes |
MMDA | Yes | Yes | Yes |
Commercial Loans | Yes | Yes | Yes |
Consumer Loans | Yes | Yes | No |
Mortgages 30 Year | Fixed No | No | Yes |
30 Year | Variable No | No | Yes |
Safety Deposit Boxes | Yes | No | No |
ATM Cards | Yes | Yes | Yes |
ATM's | No | No | No |
Source: Field Survey
EXHIBIT "A" - PAGE 1 TABLE B
REPRESENTATIVE LOAN RATES APRIL 30. 1986
WAKULLA COUNTY STATE BANK
Crawfordville St Marks Security First New Car Loans 13% 13 % N.A.
Business Loans 12.5% to 14% 12.5 % to 14 % N.A. (Prime)
Mortgage
30 Year (Fixed) N.A. | N.A. | 9.5 |
(Points) | (3.0) | |
30 Year(Variable) N.A. | N.A. | 7.5 |
(Points) | (3.0) |
Source: Field Survey
EXHIBIT "A" - PAGE 2
TABLE C,D REPRESENTATIVE SERVICE CHARGES
Wakulla County State Bank
(Both Offices) Security First
Demand Deposits $3.00 per month +
.20 per item over 20 Not Offered 0-with $250 minimum
NOW Account $5.00 per month + $8.00 per month
.20 per debit 0 with $100
0 with $1,000 minimum minimum
SUPER NOW Account $5.00 per month + N.A.
.20 per debit
0 with $2,000 minimum
$5.00 per month + N.A.
.20 per debit
0 with $2,500 minimum
Safety Deposit Box $20.00 N A. (3" x 10") Source: Field Survey
Lobby:
EXHIBIT "A" - PAGE 3 TABLE E
BANKING HOURS
WAKULLA COUNTY STATE BANK SECURITY FIRST
Crawfordville St Marks Crawfordville
M, T, W, Th, F, 9-5 9-5 9-4
S 9-12 9-12 9-12
Drive In
M, T, Th, F 9-5 9-5 8:30-5:00
W 9-12 9-12 8:30-12:00
S 9-12 9-12 9-12
*Drive in open until 5:30 on Friday Source: Field Survey
EXHIBIT "A" - PAGE 4
APPENDIX TO THE HEARING OFFICER'S REPORT IN CASE NO. 86-2607
The following constitutes my specific rulings pursuant to Section 120.59(2), Florida Statutes, on all of the proposed findings of fact submitted by the parties in this case.
Specific Rulings on Proposed Findings of Fact Submitted by Petitioner, Thomas E Rowell, Jr.
Proposed findings of fact 1-78 are adopted in substance as modified in Findings of Fact 1-78.
Specific Rulings on Proposed Findings of Fact Submitted by Respondent, Wakulla County State Bank
Each of the following proposed findings are adopted in substance as modified in the Hearing Officer's Report. The number in parentheses is the Finding of Fact which so adopts the proposed finding of fact: 1(72); 2(72); 6(72); 9(13); 10(12); 12(72); 20(72); 31(13); 42(60); 85(44); 86(48); 96(11); 100(44); 122(72); 123(72); 132(72); 133(72); 134(72); 138(2); 140(72); 142(72); 156(13); 160(13); 164(16); 184(34); and 185(47).
2. Proposed findings of fact 3, 4, 5, 8, 13, 18, 19, 27, 28, 30, 32-37,
45-47, 54, 58-64, 75, 76, 78, 80, 81, 83, 90, 107, 108, 110, 114, 116, 117, 139,
145, 147, 155, 165, 168, 173, 186, 189, and 192 are rejected as being unnecessary.
3. Proposed findings of fact 7, 11, 14-16, 26, 38, 40, 48-53, 55, 57, 65-
69, 71, 72, 74, 77, 79, 82, 84, 87-89, 91-95, 97-99, 101-106, 109, 111-113, 115,
121, 125, 135-137, 141, 143, 144, 146, 148-150, 157-159, 161-163, 166, 167, 169-
172, 174-176, 182, 190, 191, 193-201, 203, and 204 are subordinate to the facts actually found in the Hearing Officer's Report.
4. Proposed findings of fact 17, 21-25, 29, 39, 41, 43, 44, 56, 70, 73,
118-120, 124, 126-131, 151-154, 179-181, 183, 187, and 188 are rejected as
irrelevant.
5. Proposed findings of fact 177, 178 and 202 are rejected as being unsupported by the competent, substantial evidence.
| Issue Date | Proceedings |
|---|---|
| May 13, 1987 | Recommended Order (hearing held , 2013). CASE CLOSED. |
| Issue Date | Document | Summary |
|---|---|---|
| May 13, 1987 | Recommended Order | Entitlement to conduct general banking business. |
APALACHICOLA STATE BANK vs. GULF STATE BANK OF FRANKLIN COUNTY, ET AL., 86-002607 (1986)
C & L BANK OF BLOUNTSTOWN vs. BENNETT AND FAYE EUBANKS, 86-002607 (1986)
CARIBANK CORPORATION vs. DEPARTMENT OF BANKING AND FINANCE, 86-002607 (1986)
FIRST AMERICAN BANK OF MARTIN COUNTY vs. OFFICE OF THE COMPTROLLER, 86-002607 (1986)
