BOCA RATON, Fla., Oct. 24, 2011 /PRNewswire/ -- —1st United
Bancorp, Inc. ("1st United") (NASDAQ Global: FUBC) reported net
income of $1.4 million ($0.05 earnings per common share) for the three
months ended September 30, 2011,
compared to a net loss of $232,000
($0.01 loss per common share) for the
three months ended September 30,
2010.
1st United reported net income of $2.8
million ($0.10 earnings per
common share) for the nine months ended September 30, 2011, compared to net income of
$321,000 ($0.01 earnings per common share) for the nine
months ended September 30, 2010.
Highlights for the three and nine months ended September 30, 2011:
Financial Condition
- Total assets at September 30,
2011 were $1.248 billion, as
compared to $1.268 billion at
December 31, 2010.
- Deposits were $1.005 billion at
September 30, 2011, as compared to
$1.065 billion at December 31,
2010. Approximately $65.0
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 nine months ended September 30, 2011, were paid out along with the
maturity of approximately $71.6
million in time deposits. These declines were offset
by $35.1 million growth in
non-interest bearing deposits and an increase of approximately
$40.0 million in money market
accounts. Non-interest bearing deposits now represent
approximately 32% of total deposits at September 30, 2011, compared to 26% at
December 31, 2010.
- At September 30, 2011, 1st United
had approximately $314.2 million in
loans and approximately $7.0 million
in other real estate, covered by Loss Share Agreements with the
FDIC. Of the $314.2 million in
loans, which is approximately 40% of total loans, $7.6 million was non-performing. This
compares to approximately $371.9
million, and approximately $5.0
million in other real estate, at December 31, 2010
covered by Loss Share Agreements with the FDIC. Of the
$371.9 million in loans, which is
approximately 42% of total loans, $4.4
million was non-performing.
- Non-performing assets that were not covered by Loss Share
Agreements increased as of September 30,
2011 to $26.0 million (or
2.09% of total assets) from approximately $20.8 million (or 1.64% of total assets) at
December 31, 2010. Total
non-performing assets, including those covered by Loss Share
Agreements, were $40.6 million (or
3.26% of total assets) at September 30, 2011 as compared to
$30.2 million (or 2.38% of total
assets) at December 31, 2010.
- The allowance for loan losses at September 30, 2011 was $13.1 million (1.67% of total loans) and 54% 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 (1.49% 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 September 30, 2011 were
28.86%, 26.88% and 13.50%, respectively, and exceeded all
regulatory requirements for "well capitalized."
Operating Results
Net income of $1.4 million for the
quarter ended September 30, 2011 was
impacted by:
- Net Interest Margin was 4.30% for the quarter ended
September 30, 2011 as compared to
3.95% for the quarter ended September 30,
2010. This improvement primarily resulted from a lower
cost of funds in the most recent quarter.
- Increase in service charges and fees on deposit accounts by
$115,000 for the quarter ended
September 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 in December 2010.
- Included in non-interest income was $321,000 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 September 30, 2011 as compared to $2.9 million for the quarter ended September 30, 2010.
Net income of $2.8 million for the
nine months ended September 30, 2011
was impacted by:
- Net Interest Margin was 4.82% for the nine months ended
September 30, 2011 as compared to
4.11% for the nine months ended September
30, 2010. Approximately 35 basis points ($2.9 million) of the 2011 margin was impacted by
resolution of loans covered under the Loss Share Agreements above
the discounted carrying value of the assets.
- Acquisition and integration related costs related to The Bank
of Miami for the nine months ended
September 30, 2011 were $2.5
million and were completed in the second 2nd quarter of
2011.
- Increase in service charges and fees on deposit accounts by
$360,000 for the nine months ended
September 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 $2.4
million of expense associated with the disposition of assets
acquired in the FDIC assisted acquisitions at amount above the
discounted carrying values which resulted in a lower than
anticipated loss on those assets.
- The provision for loan losses was $4.8
million for the nine months ended September 30, 2011 as compared to $5.62 million for the nine months ended
September 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 $35.1 million and now represent approximately 32%
of our total deposits. Though we experienced a reduction in
our loans since December 31, 2010,
due partly to payoffs which we view as a sign of a healthy
portfolio and a reduction in loans covered by Loss Share Agreements
of almost $57.7 million, our new loan
production continues to be strong. During the nine months ended
September 30, 2011, we had new loan
production of $54 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.
"Overall, we were pleased with our $1.4
million net earnings for the quarter. Our staff
continues to do a terrific job in not only retaining but growing
new business. There also continue to be economic challenges
in the markets we serve. Our non-performing assets not
covered under loss share agreements increased from the June 30, 2011 total of $18.8 million to $26.0
million at September 30, 2011,
an increase of $7.2 million.
This increase was primarily driven by two assets that were
previously considered substandard that were placed on non-accrual
during the quarter. We continue to actively manage the risk
within our loan portfolio and downgrade credits as events warrant,"
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.
Overall our classified assets 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 2:00
p.m. Eastern Daylight Savings Time on Tuesday, October 25, 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 October 25, 2011
until November 9, 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 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.
|
|
SELECTED FINANCIAL
DATA
|
|
September
30, 2011
|
|
December 31,
2010
|
|
|
(unaudited)
|
|
(Amounts in
thousands, except per
share data and outstanding
shares)
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,247,774
|
|
$
|
1,268,025
|
|
|
Total gross
loans
|
|
787,693
|
|
|
877,260
|
|
|
Allowance
for loan losses
|
|
13,131
|
|
|
13,050
|
|
|
Cash and
cash equivalents
|
|
126,680
|
|
|
119,752
|
|
|
Securities
available for sale
|
|
188,515
|
|
|
102,289
|
|
|
Other real
estate owned
|
|
8,609
|
|
|
7,409
|
|
|
Goodwill and
other intangible assets
|
|
47,924
|
|
|
48,297
|
|
|
FDIC loss
share receivable
|
|
56,121
|
|
|
73,923
|
|
|
Deposits
|
|
1,005,421
|
|
|
1,064,687
|
|
|
Non-interest
bearing deposits
|
|
316,434
|
|
|
281,285
|
|
|
Shareholders' equity
|
|
214,330
|
|
|
173,613
|
|
|
|
|
|
|
|
|
|
|
SELECTED ASSET QUALITY DATA,
CAPITAL AND ASSET QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/assets
|
|
17.18
|
%
|
|
13.69
|
%
|
|
Non-accrual
and loans past due greater than 90 days loans/total
loans
|
|
4.07
|
%
|
|
2.60
|
%
|
|
Allowance
for loan losses/total loans
|
|
1.67
|
%
|
|
1.49
|
%
|
|
Allowance
for loan losses/non-accrual loans
|
|
41.01
|
%
|
|
57.27
|
%
|
|
Tier 1
Leverage ratio
|
|
13.50
|
%
|
|
11.78
|
%
|
|
Tier 1 risk
based capital
|
|
26.88
|
%
|
|
21.62
|
%
|
|
Total risk
based capital
|
|
28.86
|
%
|
|
23.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended September 30,
|
|
|
|
|
2011
|
|
2010
|
|
|
INCOME STATEMENT
DATA
(unaudited)
|
|
(Amounts in
thousands, except per
share data and outstanding
shares)
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
13,590
|
|
$
|
11,101
|
|
|
Interest expense
|
|
|
1,452
|
|
|
1,874
|
|
|
Net interest
income
|
|
|
12,138
|
|
|
9,227
|
|
|
Provision for loan
losses
|
|
|
1,450
|
|
|
2,870
|
|
|
Net interest
income after provision for loan losses
|
|
|
10,688
|
|
|
6,357
|
|
|
Non-interest income
|
|
|
911
|
|
|
1,535
|
|
|
Non-interest expense
|
|
|
9,367
|
|
|
8,247
|
|
|
Income (loss) before
taxes
|
|
|
2,232
|
|
|
(355)
|
|
|
Income tax expense
(benefit)
|
|
|
836
|
|
|
(123)
|
|
|
Net income
(loss)
|
|
$
|
1,396
|
|
$
|
(232)
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share
|
|
$
|
0.05
|
|
$
|
(0.01)
|
|
|
Diluted
earnings (loss) per share
|
|
$
|
0.05
|
|
$
|
(0.01)
|
|
|
Book value
per common share
|
|
$
|
7.01
|
|
$
|
7.00
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
|
0.44
|
%
|
|
(0.09)
|
%
|
|
Return on
average shareholders' equity
|
|
|
2.60
|
%
|
|
(0.53)
|
%
|
|
Net interest
margin
|
|
|
4.30
|
%
|
|
3.95
|
%
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
1,271,262
|
|
$
|
1,059,332
|
|
|
Average
shareholders' equity
|
|
$
|
213,047
|
|
$
|
173,518
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares of outstanding common stock
|
|
|
30,557,603
|
|
|
24,781,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30,
|
|
|
|
|
2011
|
|
2010
|
|
|
INCOME STATEMENT
DATA
(unaudited)
|
|
(Amounts in
thousands, except per
share data)
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
44,574
|
|
$
|
34,093
|
|
|
Interest expense
|
|
|
4,764
|
|
|
5,888
|
|
|
Net interest
income
|
|
|
39,810
|
|
|
28,205
|
|
|
Provision for loan
losses
|
|
|
4,800
|
|
|
5,620
|
|
|
Net interest
income after provision for loan losses
|
|
|
35,010
|
|
|
22,585
|
|
|
Non-interest income
|
|
|
1,271
|
|
|
3,460
|
|
|
Non-interest expense
|
|
|
31,715
|
|
|
25,484
|
|
|
Income before taxes
|
|
|
4,566
|
|
|
561
|
|
|
Income tax expense
|
|
|
1,750
|
|
|
240
|
|
|
Net
income
|
|
$
|
2,816
|
|
$
|
321
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
|
$
|
0.10
|
|
$
|
0.01
|
|
|
Diluted
earnings per share
|
|
$
|
0.10
|
|
$
|
0.01
|
|
|
Book value
per common share
|
|
$
|
7.01
|
|
$
|
7.00
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
|
0.30
|
%
|
|
0.04
|
%
|
|
Return on
average shareholders' equity
|
|
|
1.88
|
%
|
|
0.25
|
%
|
|
Net interest
margin
|
|
|
4.82
|
%
|
|
4.11
|
%
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
1,270,511
|
|
$
|
1,043,170
|
|
|
Average
shareholders' equity
|
|
$
|
200,364
|
|
$
|
172,409
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares of outstanding common stock
|
|
|
30,557,603
|
|
|
24,781,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE 1st United Bancorp, Inc.