FSB opened on October 27, 1988 as a state nonmember bank regulated by the FDIC. Headquartered in
Sarasota, Florida, FSB also operated with nine branch offices in Sarasota and Pinellas Counties. FSB was
wholly-owned by First State Financial Corporation (FSFC), a publicly-traded, one-bank holding
company. Since 1994, a group of investors led by Marshall T. Reynolds controlled FSFC. Mr. Reynolds
headed a chain banking organization (CBO), with four holding companies, including FSFC, and 11 banks
with combined assets of $2.8 billion.
FSB engaged in community banking and commercial real estate (CRE) lending activities, including a
significant amount of residential and commercial acquisition, development, and construction (ADC)
lending. Most of the bank’s lending was within Florida.