1st United Bank, the Wholly-Owned Subsidiary of 1st United Bancorp, Inc., Assumed Deposits & Purchased Assets of Old Harbor B...
October 21 2011 - 5:15PM
Business Wire
1st United Bancorp, Inc. (“1st United”) (Nasdaq:FUBC), announced
today that its subsidiary, 1st United Bank, has assumed all of the
deposits, other than depository organization-brokered deposits, and
purchased substantially all of the assets of Old Harbor Bank of
Florida (“Old Harbor”) headquartered in Clearwater, Florida through
a purchase and assumption agreement with the Federal Deposit
Insurance Corporation (“FDIC”). Old Harbor 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 branches of Old Harbor will reopen as branches of 1st United on
Saturday, in the cases of the New Port Richey, Dunedin and
Clearwater locations, and Monday for the remaining branches. This
evening and over the weekend, depositors of Old Harbor can continue
to 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 be purchasing substantially all of the assets of
Old Harbor at a discount of $8.5 million. In this transaction, 1st
United will be assuming approximately $217.8 million of deposits,
and purchasing $154.3 million in loans and $1.3 million of other
real estate from Old Harbor with the remaining assets primarily
comprised of cash and marketable investment securities. The loans
and other real estate purchased are covered by a loss sharing
agreement with the FDIC. Under such agreement, the FDIC has agreed
to cover 70% of the losses on the disposition of the loans and
other real estate up to $49 million of losses.
"1st United is excited to welcome the customers of Old Harbor
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. We are excited to be back in this legacy market
and look forward to lending and serving the community.”
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 will enable us to better serve
all of the banking needs of former Old Harbor customers.”
Based on June 30, 2011 financials, the pro forma company will
have assets of approximately $1.4 billion, net loans of $924
million and deposits of $1.1 billion.
Customers who have questions may call their local Old Harbor
banking office during normal business hours or 1st United at (561)
616-3020 or visit 1st United’s website at
www.1stunitedbankfl.com.
Stifel, Nicolaus & Company, Incorporated acted as financial
advisor to 1st United Bank and Gunster, Yoakley & Stewart, P.A.
acted as its legal advisors in the transaction.
For interested persons, the Company will be hosting an investor
call to review the transaction at 2:00 p.m. Eastern Standard Time
on Tuesday, October 25, 2011. The number for the conference call is
1-(800) 857-9849 (Passcode: First United). A replay of the
conference call will be available beginning the afternoon of
October 25 by dialing (888) 296-6943 (domestic), using the passcode
1423 until November 9, 2011.
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, and 7 branches in
Central Florida, including Pasco and Pinellas 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 ability to comply with the
terms of the loss sharing agreements with the FDIC; 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 including the impact on our noninterest margin
from the repeal of regulation Q; negative publicity and the impact
on our reputation; 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; 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.
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