BOCA RATON, Fla., Feb. 18 /PRNewswire-FirstCall/ -- (Nasdaq Global:
FUBC) -- 1st United Bancorp, Inc. ("1st United") reported net
income of $6.4 million for the quarter ended December 31, 2009
compared to a loss of $998,000 for the quarter ended December 31,
2008. 1st United reported net income of $4.720 million for the year
ended December 31, 2009 compared to a net loss of $1.359 million
for the year ended December 31, 2008. After giving effect to
preferred stock dividends, 1st United reported basic and diluted
earnings (loss) per share available to common stock shareholders of
$0.25 and ($0.15) for the three months ended December 31, 2009 and
2008, respectively, and $0.30 and ($0.25) for the years ended
December 31, 2009 and 2008, respectively. Highlights for the
quarter and the year ended December 31, 2009: Acquisition of
Republic Federal Bank from the Federal Deposit Insurance
Corporation as Receiver On December 11, 2009, 1st United Bank, 1st
United's wholly-owned subsidiary, acquired substantially all the
deposits and certain assets of Republic Federal Bank, N.A.
("Republic") through a purchase and assumption agreement ("Republic
Agreement") with the Federal Deposit Insurance Corporation
("FDIC"). The fair value of the deposits assumed was $349.6
million, and the fair value of the acquired loans was $198.6
million and acquired cash and investments was $58.7 million. The
FDIC paid 1st United Bank approximately $158 million which included
a negative net bid of $34.2 million. 1st United recorded a gain on
this purchase of $23.3 million for the quarter and year ended
December 31, 2009. Republic operated four banking centers in
Miami-Dade County, Florida, and had approximately 100 employees.
The acquired loans are covered by two loss share agreements (the
"Loss Share Agreements") between the FDIC and 1st United Bank,
which affords 1st United Bank significant loss protection. Under
the Loss Share Agreements, the FDIC will cover 80% of covered loan
and foreclosed real estate losses up to $36 million and 95% of
losses in excess of that amount. The Loss Share Agreements also
cover third party collection costs and 90 days of accrued interest
on covered assets. The term for loss sharing on residential real
estate loans is ten years, while the term for loss sharing on
non-residential real estate loans is five years with respect to
losses and eight years with respect to loss recoveries. The
reimbursable losses from the FDIC are based on the book value of
the relevant loan as determined by the FDIC at the date of the
transaction. New loans made after that date are not covered by the
Loss Share Agreements. Financial Condition -- Total assets at
December 31, 2009 were $1.015 billion, an increase of approximately
$397 million over the total assets at December 31, 2008 of $617.8
million. -- On September 22, 2009, 1st United completed a $70
million common stock offering and listed its common stock on the
NASDAQ Global Stock Market under the symbol FUBC. On October 6,
2009, the underwriters exercised their over-allotment option and
1st United received an additional $10.5 million in gross proceeds.
Total gross proceeds from the offering were approximately $80.5
million. -- The allowance for loan losses at December 31, 2009 was
$13.3 million (1.95% of total loans) and 69% of non-accrual loans
(88% of non-accrual loans are not covered by the Loss Share
Agreements). This compares to an allowance for loan losses at
December 31, 2008 of $5.8 million (1.2% of total loans) and 68% of
non-accrual loans. -- Non-performing assets (non-accruing loans,
loans accruing >= 90 days and other real estate owned) to total
assets were 1.97% at December 31, 2009. This compares to
non-performing assets of 1.72% at December 31, 2008. -- Total
risk-based capital ratio, Tier 1 capital ratio, and leverage ratio
at December 31, 2009 were 25.8%, 23.5% and 17.3%, respectively.
Operating Results -- Net income of $6.4 million for the quarter
ended December 31, 2009 and net income of $4.7 million for the year
ended December 31, 2009 were impacted by: -- Gain on the Republic
transaction of $23.3 million during the quarter -- Provision for
loan losses of $10.2 million for the quarter -- Net Interest Margin
of 3.48% for the quarter ended December 31, 2009 and 3.69% for the
year ended December 31, 2009 -- Acquisition related expenses of
approximately $2.7 million during the quarter and year ended
December 31, 2009 Management Comments: "With the ongoing economic
situation in 2009, we saw both challenges and opportunities," said
Warren Orlando, Chairman. "We were excited to complete our initial
public offering during the year and raise new capital of
approximately $75 million net of costs, as well as acquiring the
$350 million in assets of Republic Federal Bank, N. A. from the
Federal Deposit Insurance Corporation on December 11, 2009. We are
now over $1 billion in assets with a very strong capital base that
will allow us to continue to expand and take advantage of future
opportunities." "The Republic Federal integration is going very
well. The employees of our new Dade County banking centers are
doing an extraordinary job in serving and maintaining their
customers," said Rudy E. Schupp, Chief Executive Officer. "Our core
business also remains strong and for the most part our customers
continue to weather this economic storm. We have the desire,
people, liquidity, capital and financial strength to continue to
make quality loans in the communities we serve, including our
expanded market." "Our non-performing assets to total assets at the
end of the year was a relatively low 1.97%, although we continue to
provide significant loan reserves to cover the challenges of
appraisals, and the ongoing weakness in our local economies," said
John Marino, President and Chief Financial Officer. "We remain
vigilant and aggressive in monitoring asset quality and will
continue to act quickly to resolve problem assets as they are
identified." 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. 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, 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. Selected
Financial Data December 31, December 31, 2009 2008 ---- ----
(Amounts in thousands) BALANCE SHEET DATA Total assets $1,015,567
$617,821 Total loans 680,976 486,247 Allowance for loan losses
13,282 5,799 Cash and cash equivalents 135,241 19,102 Securities
available for sale 88,843 35,075 Other real estate owned 635 -
Goodwill and other intangible assets 48,053 47,118 FDIC loss share
receivable 32,900 - Deposits 802,808 436,269 Non-interest bearing
deposits 194,185 100,785 Stockholders' equity 172,294 98,870
SELECTED ASSET QUALITY DATA, CAPITAL AND ASSET QUALITY RATIOS
Equity/assets 16.97% 16.00% Non-accrual loans/total loans 2.84%
2.18% Non-performing assets/total assets 1.97% 1.72% Allowance for
loan losses/total loans 1.95% 1.19% Allowance for loan
losses/non-accrual loans 69% 55% Net charge-offs
(recoveries)/average loans 1.14% 0.21% Leverage Ratio 17.33% 8.15%
Tier 1 Risk Based Capital 23.54% 9.46% Total Risk Based Capital
25.76% 11.69% Income Statement Data For the three For the year
month period ended ended December 31, December 31, ------------
------------ 2009 2008 2009 2008 ---- ---- ---- ---- (Amounts in
thousands, except per share data) Interest income $7,618 $7,501
$28,539 $30,250 Interest expense 1,743 2,327 7,246 9,584 ------
----- ------ ----- Net interest income 5,875 5,174 21,293 20,666
Provision for loan losses 10,150 1,435 13,240 1,910 ------ -----
------ ----- Net interest income after provision for loan losses
(4,275) 3,739 8,053 18,756 Gain on acquisition 23,292 - 23,292 -
Other Non interest income 440 626 2,427 2,037 Non interest expense
9,249 5,898 26,168 22,904 ------ ------ ----- ------ Income (loss)
before taxes 10,208 (1,533) 7,604 (2,111) ------ ------ -----
------ Income expense (benefit) 3,805 (535) 2,884 (752) Net income
(loss) $6,403 $(998) $4,720 $(1,359) ------ ----- ------ -------
Preferred Stock Dividends Earned $(277) $(287) $(774) $(368) -----
----- ----- ----- Net income(loss) available to common Shareholders
$6,126 $(1,285) $3,946 $(1,727) ====== ======= ====== ======= PER
SHARE DATA Basic and diluted earnings (loss) per share $0.25
$(0.15) $0.30 $(0.25) Book value per common share $6.95 $10.87
$6.95 $10.87 SELECTED OPERATING RATIOS Return on average assets
3.38% 0.65% 0.60% (0.25%) Return on average stockholders' equity
14.86% (4.03%) 3.19% (1.63%) Net interest margin 3.48% 3.83% 3.69%
4.23% Average assets $758,520 $614,047 $653,068 $551,126 Average
stockholders' equity $172,302 $99,015 $123,863 $83,604 Outstanding
common stock 24,781,660 8,670,231 24,781,660 8,670.23 DATASOURCE:
1st United Bancorp, Inc. CONTACT: Rudy E. Schupp, Chief Executive
Officer, +1-561-616-3029, or John Marino, President and Chief
Financial Officer, +1-561-616-3046 Web Site:
http://www.1stunitedbankfl.com/
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