1st United Bank, the Wholly-Owned Subsidiary of 1st United Bancorp, Inc., Assumed All Deposits and Certain Loans of Republic Fed
December 11 2009 - 6:22PM
PR Newswire (US)
BOCA RATON, Fla., Dec. 11 /PRNewswire-FirstCall/ -- 1st United
Bancorp, Inc. ("1st United") (NASDAQ:FUBC), announced today that
its subsidiary, 1st United Bank, has assumed all of the deposits of
Republic Federal Bank, N.A. ("Republic") located in Miami, Florida
through a purchase and assumption agreement with the Federal
Deposit Insurance Corporation ("FDIC"). Republic depositors will
become depositors of 1st United and deposits will continue to be
insured by the FDIC, so there is no reason for customers to change
their banking relationship to retain their deposit insurance
coverage. The four branches of Republic will reopen on Monday as
branches of 1st United. This evening and over the weekend,
depositors of Republic can access their money by writing checks or
using ATM or debit cards. Checks drawn on the bank will continue to
be processed. Loan customers should continue to make their payments
as usual. 1st United will operate 16 branches in South Florida and
expand its presence in Miami-Dade County. 1st United will be
purchasing certain assets of Republic at a discount of $37.7
million and assuming all deposits at a premium of 1%, or
approximately $3.4 million. In this transaction, 1st United will be
receiving approximately $350 million of deposits, $75 million in
FHLB borrowings and $231 million in loans from Republic with the
remaining assets primarily comprised of cash and marketable
investment securities. The loans purchased are covered by a loss
sharing agreement with the FDIC. Under such agreement, the FDIC has
agreed to cover 80% of the losses on the disposition of the loans
up to $36 million, and 95% of losses that exceed that amount. The
transaction excludes most non-performing loans, other real estate
owned, and acquisition, development and construction loans,
residential and commercial land loans, export-import bank loans and
loans to foreign nationals. "1st United is excited to welcome the
customers of Republic Federal and we want to assure them that their
deposits are safe, FDIC insured, and readily accessible," said Rudy
Schupp, Chief Executive Officer of 1st United. "Customers will be
able to conduct business as usual at their existing branch
locations with their familiar banking associates." John Marino,
President and Chief Financial Officer of 1st United added, "1st
United has a healthy balance sheet, supported by strong capital and
liquidity levels. These factors combined with increased access to
more products and services at branches throughout South Florida
will enable us to better serve all of the banking needs of former
Republic customers, including private banking customers." Based on
September 30, 2009 financials, the pro forma company will have
assets of $1.1 billion, loans of $732 million and deposits of $810
million. By market capitalization, 1st United is the third largest
publicly traded bank headquartered in Florida. Customers who have
questions may call their local Republic Federal banking office
during normal business hours or 1st United at (561) 362-3435 or
visit 1st United's website at http://www.1stunitedbankfl.com/. For
interested persons, the Company will be hosting an investor call to
review the transaction at 11:00 a.m. Eastern Standard Time on
Monday, December 14, 2009. The number for the conference call is
1-(888) 769-9413 (Passcode: 6684203). About 1st United Bancorp,
Inc. 1st United is a financial holding company headquartered in
Boca Raton, Florida. 1st United's principal subsidiary, 1st United
Bank, is a Florida chartered commercial bank, which operates 12
branches in South Florida, including Brevard, Broward, Indian
River, Miami-Dade, and Palm Beach counties. 1st United's principal
executive office and mailing address is One North Federal Highway,
Boca Raton, FL 33432 and its telephone number is (561) 362-3435.
1st United's stock is listed on the NASDAQ Global Market under the
symbol "FUBC". Forward Looking Statements Any non-historical
statements in this press release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are based on current plans
and expectations that are subject to uncertainties and risks, which
could cause 1st United's future results to differ materially. In
addition, forward-looking statements regarding the Republic
transaction are based on currently available information. Actual
results could differ materially after experience with the
acquisition. The following factors, among others, could cause our
actual results to differ: 1st United's ability to execute its
growth strategy, risks relating to the integration of acquired
companies that have previously been operated separately, challenges
posed by the current economic environment, disruptions in global
financial markets, credit risk of 1st United's customers, effects
of the on-going correction in residential real estate prices and
reduced levels of home sales, sufficiency of 1st United's allowance
for loan losses, changes in interest rates, access to funding
sources, reliance on the services of executive management,
competition for loans, deposits and investment dollars,
reputational risk and social factors, changes in government
regulations and legislation, increases in FDIC insurance
assessments, geographic concentration of 1st United's markets,
rapid changes in the financial services industry, exposure to
intangible asset risk, and hurricanes and other adverse weather
events, and 1st United's ability to manage the risks involved in
the foregoing. Additional factors can be found in our filings with
the SEC, which are available at the SEC's internet site
(http://www.sec.gov/). Forward-looking statements in this press
release speak only as of the date of the press release, and 1st
United assumes no obligation to update forward-looking statements
or the reasons why actual results could differ. DATASOURCE: 1st
United Bancorp, Inc. CONTACT: Rudy E. Schupp, Chief Executive
Officer, +1-561-616-3029; John Marino, President and Chief
Financial Officer, +1-561-616-3046 Web Site:
http://www.1stunitedbankfl.com/
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