Prosperity Bank finds $81 million investor

Patriot Financial Partners LP has reached an agreement to invest in Prosperity Bank — the St. Augustine headquartered bank founded in 1984 by the late businessman and local attorney, Hamilton D. Upchurch.

The $81 million capital injection will boost the bank to “well-capitalized” status and, according to bank officials, will fulfill all requirements in the recent consent order from the Federal Deposit Insurance Corporation and the Florida Office of Financial Regulation.

“We are very pleased to enter into an agreement with Patriot Financial Partners,” said Eddie Creamer, president and CEO of Prosperity Bank. “The additional capital will allow us to continue to remain strong and to be focused on expanding our customer relationships.”

“Reaching a definitive agreement is good news,” according to Mark F. Bailey, Chairman of the Board of Prosperity Bank. “The transaction is expected to be finalized in the first quarter of 2011.”

In the June 2010 consent order, regulators required Prosperity to raise its Tier 1 capital ratio to 8 percent and its total risk-based capital ratio to 12 percent.

At the end of the second quarter that ended June 30, Prosperity Bank had a Tier 1 ratio of 5.85 percent and a total risk-based ratio of 10.45 percent.

Patriot Financial Partners is a private equity fund focused on investing in community banks, thrifts and other financial service companies.

Prosperity Bank is the eighth largest bank in Northeast Florida with $422 million in area deposits, according to the latest figures available from the FDIC. It operates 18 branches in St. Johns, Bay, Clay, Columbia, Duval, Flagler, Nassau, Putnam and Volusia counties.