BOCA RATON, Fla., July 27, 2011 /PRNewswire/ -- (NASDAQ Global:
FUBC) -- 1st United Bancorp, Inc. ("1st United") reported net
income of $1.064 million
($.03 earnings per share) for the
three months ended June 30, 2011,
compared to net income of $207,000
($.01 earnings per share) for the
three months ended June 30, 2010.
1st United reported net income of $1.419
million ($.05 earnings per
share) for the six months ended June 30,
2011, compared to net income of $553,000 ($.02
earnings per share) for the six months ended June 30, 2010.
Highlights for the three and six months ended June 30, 2011:
Financial Condition
- Total assets at June 30, 2011
were $1.26 billion, as compared to
$1.27 billion at December 31, 2010.
- Deposits were $1.020 billion at
June 30, 2011, as compared to
$1.065 billion at December 31, 2010. Approximately
$60 million of wholesale time
deposits assumed in the acquisition of The Bank of Miami, N.A. ("Bank of Miami") in December, 2010, and anticipated to
be redeemed during the six months ended June
30, 2011, were paid out, which was partially offset by a
$26.4 million growth in non-interest
bearing deposits. Non-interest bearing deposits now represent
approximately 30% of total deposits at June
30, 2011, compared to 26% at December
31, 2010.
- In March 2011, 1st United
completed a common stock offering and issued 5,000,000 million
shares at $6.50 per share which
resulted in net proceeds of approximately $30.5 million. In April
2011, the underwriters exercised their overallotment option
in full and the Company issued an additional 750,000 shares at
$6.50 per share which resulted in net
proceeds of approximately $4.5
million.
- At June 30, 2011, 1st United had
approximately $330.3 million in loans
(approximately 41% of total loans), including $6.9 million of non-performing loans, and
approximately $8.0 million in other
real estate all covered by Loss Share Agreements with the FDIC.
This compares to approximately $374.1
million (approximately 42.5% of total loans), including
$519,000 in non-performing loans, and
approximately $5.1 million in other
real estate at December 31, 2010 all covered by Loss Share
Agreements with the FDIC.
- Non-performing assets that were not covered by Loss Share
Agreements were reduced during the six months ended June 30, 2011 to $18.8
million (or 1.49% of total assets) from approximately
$20.8 million (or 1.65% of total
assets) at December 31, 2010.
Total non-performing assets, including those covered by Loss
Share Agreements, were $33.7 million
(or 2.67% of total assets) at June 30, 2011 as compared to
$26.4 million (or 2.08% of total
assets) at December 31, 2011.
- The allowance for loan losses at June
30, 2011 was $13.3 million
(1.65% of total loans) and 81% of non-performing loans not covered
by Loss Share Agreements. This compares to an allowance for loan
losses at December 31, 2010 of
$13.1 million (1.48% of total loans)
and 71% of non-performing loans not covered by Loss Share
Agreements.
- Total risk-based capital ratio, Tier 1 capital ratio, and
leverage ratio for 1st United at June 30,
2011 were 29.10%, 27.09% and 13.27%, respectively, and
exceeded all regulatory requirements for "well capitalized."
Operating Results
Net income of $1.064 million for
the quarter ended June 30, 2011 was
impacted by:
- Net Interest Margin was 5.35% for the quarter ended
June 30, 2011 as compared to 4.13%
for the quarter ended June 30, 2010.
Approximately 153 basis points of the June
30, 2011 margin related to discount accretion ($2.2 million or 77 basis points) and the
resolution of loans covered under the Loss Share Agreements above
the discounted carrying values of the asset ($2.0 million or 76 basis points). Approximately
56 basis points of the June 30, 2010
margin related to discount accretion.
- Acquisition and integration related costs which have since been
eliminated related to the Bank of Miami acquisition for the quarter ended
June 30, 2011 were $955,000.
- Increase in service charges and fees on deposit accounts by
$152,000 for the quarter ended
June 30, 2011 over the same quarter
in 2010 due to an increase in total deposit accounts as a result of
The Bank of Miami
acquisition.
- Included in non-interest income was $1.7
million of expense associated with the disposition of assets
acquired in the FDIC assisted acquisitions at amounts above the
discounted carrying values which resulted in a lower than
anticipated loss on those assets.
- The provision for loan losses was $1.45
million for the quarter ended June
30, 2011 as compared to $1.5
million for the quarter ended June
30, 2010.
Net income of $1.419 million for
the six months ended June 30, 2011
was impacted by:
- Net Interest Margin was 5.13% for the six months ended
June 30, 2011 as compared to 4.20%
for the six months ended June 30,
2010. Approximately 125 basis points of the June 30, 2011 margin related to discount
accretion ($4.2 million or 75 basis
points) and the resolution of loans covered under the Loss Share
Agreements above the discounted carrying value of the asset
($2.6 million or 50 basis points).
Approximately 58 basis points of the June
30, 2010 margin related to discount accretion.
- Acquisition and integration related costs for the six months
ended June 30, 2011 were $2.548
million.
- Increase in service charges and fees on deposit accounts by
$275,000 for the six months ended
June 30, 2011 over the same period in
2010 due to an increase in total deposit accounts as a result of
The Bank of Miami
acquisition.
- Included in non-interest income was $2.1
million of expense associated with the disposition of assets
acquired in the FDIC assisted acquisitions at amounts above the
discounted carrying values which resulted in a lower than
anticipated loss on those assets.
- The provision for loan losses was $3.35
million for the six months ended June
30, 2011 as compared to $2.75
million for the six months ended June
30, 2010.
Management Comments:
"We are very pleased with our continued growth in core deposits
since December 31, 2010. Our
non-interest bearing deposits grew by approximately $26.4 million and now represent approximately 30%
of our total deposits. Though we experienced a reduction in our
loans since December 31, 2010, due
partly by payoffs which we view as a sign of a healthy portfolio
and a reduction in loans covered by Loss Share Agreements of almost
$43.8 million, our new loan
production continues to be strong. During the six months ended
June 30, 2011, we had new loan
production of $33 million, and our
loan pipeline continues to remain strong. We continue to believe
that our strong capital base, liquidity and overall financial
strength will allow us the opportunity to continue to expand over
time both organically as well as through potential acquisitions,"
said Warren S. Orlando,
Chairman.
"The integration of The Bank of Miami, N.A. acquisition was successfully
completed during the quarter ended June 30,
2011. Our staff continues to do a good job in not only
retaining but growing new business. There continue to be economic
challenges in the markets we serve. Our non-performing assets
not covered under loss share agreements decreased at June 30, 2011 from March
31, 2011 balances and were reduced by over 9% since
December 31, 2010. Overall, we
were pleased with our $1.064 million
earnings for the quarter given that it included approximately
$955,000 of personnel and integration
related costs which we eliminated by the end of the quarter," said
Rudy E. Schupp, Chief Executive
Officer.
"We continue to provide significant loan reserves to cover the
challenges of new and often lower appraised values of collateral
and the on-going economic weakness in our local markets. We
remain vigilant and will continue to monitor asset quality and act
quickly to resolve problem assets as they are identified. Our
classified and past due loans not covered by Loss Share Agreements
continue to stabilize," said John
Marino, President and Chief Financial Officer.
For interested persons, 1st United will be hosting an investor
call to review the quarterly results at 11:00 a.m. Eastern Daylight Savings Time on
Thursday, July 28, 2011. The number
for the conference call is (800) 857-9849 (Passcode: First United).
A replay of the conference call will be available beginning
the afternoon of July 28, 2011 until
August 11, 2011 by dialing (888) 567-0479 (domestic), using
the passcode 1423.
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 now
operates 15 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.
The following factors, among others, could cause our actual
results to differ: our ability to integrate the business and
operations of companies and banks that we have acquired, and those
that we may acquire in the future; the failure to achieve expected
gains, revenue growth, and/or expense savings from future
acquisitions; our need and our ability to incur additional debt or
equity financing; the strength of the
United States economy in general and the strength of the
local economies in which we conduct operations; the accuracy of our
financial statement estimates and assumptions, including the
estimate of our loan loss provision; the effects of harsh weather
conditions, including hurricanes, and man-made disasters;
inflation, interest rate, market, and monetary fluctuations; the
effects of our lack of a diversified loan portfolio, including the
risks of geographic and industry concentrations; the frequency and
magnitude of foreclosure of our loans; legislative and regulatory
changes, including the Dodd-Frank Act; our ability to comply with
the extensive laws and regulations to which we are subject; the
willingness of clients to accept third-party products and services
rather than our products and services and vice versa; changes in
securities and real estate markets; increased competition and its
effect on pricing; technological changes; changes in monetary and
fiscal policies of the U.S. Government; the effects of security
breaches and computer viruses that may affect our computer systems;
changes in consumer spending and saving habits; growth and
profitability of our non-interest income; changes in accounting
principles, policies, practices or guidelines; anti-takeover
provisions under federal and state law as well as our Articles of
Incorporation and our Bylaws; and our ability to manage the risks
involved in the foregoing. These factors, as well as
additional factors, can be found in our periodic and other filings
with the SEC, which are available at the SEC's internet site
(http://www.sec.gov). Actual results may differ materially from
projections and could be affected by a variety of factors,
including factors beyond our control. 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
|
|
June 30,
2011
|
|
December 31,
2010
|
|
|
(unaudited)
|
|
(Dollars in
thousands,
except per
share data)
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,260,265
|
|
$
|
1,267,752
|
|
|
Total gross
loans
|
|
|
802,111
|
|
|
879,389
|
|
|
Allowance
for loan losses
|
|
|
13,273
|
|
|
13,050
|
|
|
Cash and
cash equivalents
|
|
|
175,746
|
|
|
119,752
|
|
|
Securities
available for sale
|
|
|
135,801
|
|
|
102,289
|
|
|
Other real
estate owned
|
|
|
10,184
|
|
|
7,506
|
|
|
Goodwill and
other intangible assets
|
|
|
48,046
|
|
|
48,297
|
|
|
FDIC loss
share receivable
|
|
|
57,493
|
|
|
71,537
|
|
|
Deposits
|
|
|
1,020,171
|
|
|
1,064,687
|
|
|
Non-interest
bearing deposits
|
|
|
307,718
|
|
|
281,285
|
|
|
Shareholders' equity
|
|
|
212,198
|
|
|
174,050
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ASSET QUALITY DATA,
CAPITAL AND ASSET QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/assets
|
|
|
16.84
|
%
|
|
13.73
|
%
|
|
Non-accrual
and loans past due greater than 90 days loans/total
loans
|
|
|
2.93
|
%
|
|
2.15
|
%
|
|
Allowance
for loan losses/total loans
|
|
|
1.65
|
%
|
|
1.48
|
%
|
|
Allowance
for loan losses/non-accrual loans
|
|
|
57.02
|
%
|
|
69.09
|
%
|
|
Leverage
ratio
|
|
|
13.27
|
%
|
|
11.78
|
%
|
|
Tier 1 risk
based capital
|
|
|
27.09
|
%
|
|
21.62
|
%
|
|
Total risk
based capital
|
|
|
29.10
|
%
|
|
23.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended June 30,
|
|
|
INCOME STATEMENT
DATA
|
|
2011
|
|
2010
|
|
|
(unaudited)
|
|
|
(Dollars in
thousands,
except per
share data)
|
|
|
Interest income
|
|
$
|
16,302
|
|
$
|
11,483
|
|
|
Interest expense
|
|
|
1,588
|
|
|
1,960
|
|
|
Net interest
income
|
|
|
14,714
|
|
|
9,523
|
|
|
Provision for loan
losses
|
|
|
1,450
|
|
|
1,500
|
|
|
Net interest
income after provision for loan losses
|
|
|
13,264
|
|
|
8,023
|
|
|
Non-interest income
|
|
|
(368)
|
|
|
1,024
|
|
|
Non-interest expense
|
|
|
11,158
|
|
|
8,694
|
|
|
Income before taxes
|
|
|
1,738
|
|
|
353
|
|
|
Income tax expense
|
|
|
674
|
|
|
146
|
|
|
Net
income
|
|
$
|
1,064
|
|
$
|
207
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
|
$
|
0.03
|
|
$
|
0.01
|
|
|
Diluted
earnings per share
|
|
$
|
0.03
|
|
$
|
0.01
|
|
|
Book value
per common share
|
|
$
|
6.94
|
|
$
|
6.98
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
|
0.33
|
%
|
|
0.08
|
%
|
|
Return on
average shareholders' equity
|
|
|
2.03
|
%
|
|
0.48
|
%
|
|
Net interest
margin
|
|
|
5.35
|
%
|
|
4.13
|
%
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
1,272,600
|
|
$
|
1,049,288
|
|
|
Average
shareholders' equity
|
|
$
|
209,979
|
|
$
|
173,603
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares of outstanding common stock
|
|
|
30,557,603
|
|
|
24,781,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended June 30,
|
|
|
INCOME STATEMENT
DATA
|
|
2011
|
|
2010
|
|
|
(unaudited)
|
|
|
(Dollars in
thousands,
except per
share data)
|
|
|
Interest income
|
|
$
|
30,983
|
|
$
|
22,992
|
|
|
Interest expense
|
|
|
3,312
|
|
|
4,014
|
|
|
Net interest
income
|
|
|
27,671
|
|
|
18,978
|
|
|
Provision for loan
losses
|
|
|
3,350
|
|
|
2,750
|
|
|
Net interest
income after provision for loan losses
|
|
|
24,321
|
|
|
16,228
|
|
|
Non-interest income
|
|
|
360
|
|
|
1,925
|
|
|
Non-interest expense
|
|
|
22,347
|
|
|
17,237
|
|
|
Income before taxes
|
|
|
2,334
|
|
|
916
|
|
|
Income tax expense
|
|
|
915
|
|
|
363
|
|
|
Net
income
|
|
$
|
1,419
|
|
$
|
553
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
|
$
|
0.05
|
|
$
|
0.02
|
|
|
Diluted
earnings per share
|
|
$
|
0.05
|
|
$
|
0.02
|
|
|
Book value
per common share
|
|
$
|
6.94
|
|
$
|
6.98
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
|
0.23
|
%
|
|
0.11
|
%
|
|
Return on
average shareholders' equity
|
|
|
1.46
|
%
|
|
0.64
|
%
|
|
Net interest
margin
|
|
|
5.13
|
%
|
|
4.20
|
%
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
1,259,776
|
|
$
|
1,037,028
|
|
|
Average
shareholders' equity
|
|
$
|
193,914
|
|
$
|
173,056
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares of outstanding common stock
|
|
|
30,557,603
|
|
|
24,781,660
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE 1st United Bancorp, Inc.