BOCA RATON, Fla., Feb. 8, 2012 /PRNewswire/ -- (NASDAQ Global
Select Market: FUBC) -- 1st United Bancorp, Inc. ("1st United")
reported net income of $3.7 million
($0.13 earnings per common share) for
the year ended December 31, 2011,
compared to net income of $1.6
million ($0.06 earnings per
common share) for the year ended December
31, 2010.
1st United reported net income of $857,000 ($0.03
earnings per common share) for the three months ended December 31, 2011, compared to net income of
$1.3 million ($0.05 earnings per common share) for the three
months ended December 31, 2010.
Highlights for the three months and year ended December 31, 2011:
Financial Condition
- Total assets at December 31, 2011
were $1.421 billion, as compared to
$1.267 billion at December 31, 2010.
- On October 21, 2011, 1st United
acquired Old Harbor Bank of Florida ("Old Harbor") from the Federal
Depository Insurance Corporation ("FDIC"). Total assets
acquired were $194.7 million
including $116.7 million in loans and
$55.7 million in cash and cash
equivalents and securities. 1st United recorded a receivable
from the FDIC for credit losses on assets covered under loss
sharing agreements of $18.1 million.
Deposits acquired were $209.6
million and we recorded goodwill of approximately
$7.0 million.
- Deposits were $1.182 billion at
December 31, 2011, as compared to
$1.065 billion at December 31, 2010. The increase in deposits
was primarily due to the acquisition of Old Harbor deposits of
$209.6 million, offset by planned
reductions in high cost deposits acquired. Non-interest
bearing deposits now represent approximately 28% of total deposits
at December 31, 2011, compared to 26%
at December 31, 2010.
- At December 31, 2011, 1st United
had $406.3 million (46% of
outstanding loans) in loans and approximately $11.1 million in other real estate (82% of total
other real estate), covered by Loss Share Agreements with the FDIC.
Of the $406.3 million in
covered loans, $12.0 million was
non-performing.
- Total non-performing assets, including those covered by Loss
Share Agreements, were $57.0 million
(or 4.01% of total assets) at December 31,
2011 as compared to $40.6
million (or 3.26% of total assets) at September 30, 2011. The $16.4 million increase during the quarter was
primarily related to the addition of assets covered by Loss Sharing
Agreements of $8.4 million from the
acquisition of Old Harbor and from a single non loss share loan
with a carrying value of $11.4
million added to non-accrual during the quarter. The
effects of these increases were offset by charge offs and
resolutions of non-performing assets during the quarter.
Non-performing assets that were not covered by Loss Share
Agreements increased as of December 31,
2011 to $34.0 million (or
2.39% of total assets) from approximately $26.0 million (or 2.09% of total assets) at
September 30, 2011.
- The allowance for loan losses at December 31, 2011 was $12.8 million (1.46% of total loans). This
compares to an allowance for loan losses at September 30, 2011 of $13.1 million (1.67% of total loans).
- At December 31, 2011, securities
available for sale were $201.7
million as compared to $188.5
million at September 30, 2011.
The impact of the acquisition of $31.0
million in securities from the Old Harbor acquisition was
partially offset by net sales during the quarter. Gains on
these sales of securities were $364,000 for the quarter and year ended
December 31, 2011.
- Total risk-based capital ratio, Tier 1 capital ratio, and
leverage ratio for 1st United at December
31, 2011 were 25.23%, 23.97% and 11.79%, respectively, and
exceeded all regulatory requirements for "well capitalized."
Operating Results
Net income of $857,000 for the
quarter ending December 31, 2011 was
impacted by:
- Net interest margin was 4.55% for the quarter ended
December 31, 2011 as compared to
3.53% for the quarter ended December 31,
2010. Approximately $1.4
million (45 basis points) of the quarter ended December 31, 2011 margin was impacted by
resolution of loans covered under Loss Sharing Agreements above the
discounted carrying value of the assets. This improvement
primarily resulted from higher yield on loans due to discount
accretion in acquired loans and an overall reduction in the cost of
funds in the most recent quarter.
- The provision for loan losses was $2.2
million for the quarter ended December 31, 2011 and was primarily impacted by
the increase in non-performing loans during the quarter.
- Gains on the sales of securities were $364,000 during the quarter ended December 31, 2011.
- During the quarter ending December 31,
2011, 1st United expensed approximately $326,000 of merger reorganization expense related
to the Old Harbor acquisition and approximately $216,000 of salary and occupancy expenses related
to Old Harbor that should be eliminated after the first quarter of
2012.
- Included in non-interest income was $1.4
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.
Net income of $3.7 million for the
year ended December 31, 2011 was
impacted by:
- The net interest margin was 4.76% for the year ended
December 31, 2011 as compared to
4.06% for the year ended December 31,
2010. Approximately $4.3
million (40 basis points) of the 2011 margin was impacted by
resolution of loans covered under the Loss Share Agreements above
the discounted carrying value of the assets. The net interest
margin for the year ended December 31,
2011, was also positively impacted by a reduction in the
overall cost of funds by 36 basis points year over year.
- Non-recurring salary, occupancy, data processing and other
integration expenses related to the acquisition and integration of
the Bank of Miami and acquisition
of Old Harbor were $3.1 million for
the year ended December 31, 2011
compared to $2.7 million for the year
ended December 31, 2010. The
integration of the Bank of Miami
was completed during the second quarter 2011 and the integration of
Old Harbor is expected to be completed by the end of the first
quarter 2012.
- Increase in service charges and fees on deposit accounts by
$490,000 for the year ended
December 31, 2011 over the same
period in 2010 due to an increase in total deposit accounts as a
result of The Bank of Miami and
Old Harbor acquisitions.
- Included in non-interest income for the year ending
December 31, 2011 was $3.8 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.
Management Comments:
"The quarter ending December 31,
2011 was an exciting period for the Company. With our
acquisition of Old Harbor from the FDIC in October we are pleased
to enter the Central Florida
market in areas that we believe fit our brand of community banking.
This acquisition added approximately $117 million in loans and over $200 million in deposits. In addition, with
our recently announced pending merger with Anderen Financial, Inc.,
we will be further expanding our footprint in Central Florida, to include the Orlando
market. We have received all regulatory approvals and look
forward to consummating the merger early in the second quarter,"
said Warren S. Orlando, Chairman.
"We continue to believe our strong capital base and overall
financial strength will continue to provide the opportunity for
acquisitions for the Company."
"Overall, we were pleased with our $857,000 and $3.7
million net earnings for the quarter and year ended 2011,
respectively. The quarter and year were impacted by
non-recurring merger and other related charges of $542,000 and $3.1
million, respectively. Our margin has remained strong
at 4.55% for the quarter ending December 31,
2011 despite having over $100
million in excess liquidity earning about 25 basis points.
Our team continues to do a terrific job in growing low cost
deposits with approximately $5
million in growth in non-interest bearing deposits during
the quarter, excluding the impact of Old Harbor. Loan growth
continues to be stubborn, although during the quarter our net loan
fundings matched the reductions in non-loss share loans. We
have also seen an increase in our loan backlog compared to early
2011 and 2010," said Rudy E. Schupp,
Chief Executive Officer.
"Our non-performing assets not covered under loss share
agreements increased from the September 30,
2011 total of $26.0 million to
$34.0 million at December 31, 2011, an increase of $8.0 million. The increase was a result of
an addition of one $11.4 million loan
to non-accrual during the quarter offset by resolutions and charge
offs. In addition, there continue to be economic challenges
in the markets we serve, and as a result we continue to see robust
loan provisioning. We recorded $2.2
million in loan provisioning for the quarter ended
December 31, 2011 and $7.0 million for the year ending December 31, 2011. The increase during the
quarter was primarily driven by the $11.4 loan which was placed on non-accrual, which
we incurred a $1.3 million related
loan provision," said John Marino,
President. "We remain vigilant and will continue to monitor
asset quality and act quickly to resolve problem assets as they are
identified. Between September
2011 and December 2011, our
classified assets which include special mention and substandard
loans as well as loans past due 30-89 days continued to stabilize.
It should be noted that over 82% of our other real estate and
46% of total loans are covered under Loss Share Agreements."
For interested persons, 1st United will be hosting an investor
call to review the quarterly results at 11:00 a.m. Eastern Standard Time on Thursday, February 9, 2012. 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 February 9, 2012,
until February 24, 2012 by dialing
(800) 294-4345 (domestic), using the passcode 1423.
About 1st United Bancorp, Inc.
1st United (NASDAQ Global Select Market: FUBC) 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 19 branches in
South Florida, including
Brevard, Broward, Indian
River, Miami-Dade,
Palm Beach, 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.
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
vote of the shareholder of Anderen Financial, Inc. on the merger of
Anderen and 1st United; 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
|
|
December 31,
2011
|
|
December 31,
2010
|
|
|
(unaudited)
|
|
(Amounts in
thousands, except per
share data and outstanding
shares)
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,421,247
|
|
$
|
1,267,181
|
|
|
Total
loans
|
|
880,777
|
|
|
875,931
|
|
|
Allowance
for loan losses
|
|
12,836
|
|
|
13,050
|
|
|
Cash and
cash equivalents
|
|
165,424
|
|
|
119,752
|
|
|
Securities
available for sale
|
|
201,722
|
|
|
102,289
|
|
|
Other real
estate owned
|
|
13,512
|
|
|
7,409
|
|
|
Goodwill and
other intangible assets
|
|
55,229
|
|
|
48,297
|
|
|
FDIC loss
share receivable
|
|
71,900
|
|
|
74,332
|
|
|
Deposits
|
|
1,181,708
|
|
|
1,064,687
|
|
|
Non-interest
bearing deposits
|
|
329,283
|
|
|
281,285
|
|
|
Shareholders' equity
|
|
215,353
|
|
|
173,488
|
|
|
|
|
|
|
|
|
|
|
SELECTED ASSET QUALITY DATA,
CAPITAL AND ASSET QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/assets
|
|
15.15
|
%
|
|
13.69
|
%
|
|
Non-accrual
and loans past due greater than 90 days loans/total
loans
|
|
4.94
|
%
|
|
2.60
|
%
|
|
Allowance
for loan losses/total loans
|
|
1.46
|
%
|
|
1.49
|
%
|
|
Allowance
for loan losses/non-accrual loans
|
|
29.97
|
%
|
|
57.27
|
%
|
|
Tier 1
Leverage ratio
|
|
11.79
|
%
|
|
11.78
|
%
|
|
Tier 1 risk
based capital
|
|
23.97
|
%
|
|
21.02
|
%
|
|
Total risk
based capital
|
|
25.23
|
%
|
|
23.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
INCOME STATEMENT
DATA
(unaudited)
|
|
(Amounts in
thousands, except per
share data and outstanding
shares)
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
15,836
|
|
$
|
11,670
|
|
|
Interest expense
|
|
|
1,585
|
|
|
1,857
|
|
|
Net interest
income
|
|
|
14,251
|
|
|
9,813
|
|
|
Provision for loan
losses
|
|
|
2,200
|
|
|
7,900
|
|
|
Net interest
income after provision for loan losses
|
|
|
12,051
|
|
|
1,913
|
|
|
Non-interest income
|
|
|
467
|
|
|
11,084
|
|
|
Non-interest expense
|
|
|
11,129
|
|
|
10,945
|
|
|
Income before taxes
|
|
|
1,389
|
|
|
2,052
|
|
|
Income tax expense
|
|
|
532
|
|
|
775
|
|
|
Net
income
|
|
$
|
857
|
|
$
|
1,277
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
|
$
|
0.03
|
|
$
|
0.05
|
|
|
Diluted
earnings per common share
|
|
$
|
0.03
|
|
$
|
0.05
|
|
|
Book value
per common share
|
|
$
|
7.04
|
|
$
|
7.00
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
|
0.24
|
%
|
|
0.40
|
%
|
|
Return on
average shareholders' equity
|
|
|
1.59
|
%
|
|
2.91
|
%
|
|
Net interest
margin
|
|
|
4.55
|
%
|
|
3.53
|
%
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
1,390,688
|
|
$
|
1,267,750
|
|
|
Average
shareholders' equity
|
|
$
|
214,245
|
|
$
|
174,050
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares of outstanding common stock
|
|
|
30,569,032
|
|
|
24,793,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year
ended December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
INCOME STATEMENT
DATA
(unaudited)
|
|
(Amounts in
thousands, except per
share data)
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
60,409
|
|
$
|
45,763
|
|
|
Interest expense
|
|
|
6,349
|
|
|
7,745
|
|
|
Net interest
income
|
|
|
54,060
|
|
|
38,018
|
|
|
Provision for loan
losses
|
|
|
7,000
|
|
|
13,520
|
|
|
Net interest
income after provision for loan losses
|
|
|
47,060
|
|
|
24,498
|
|
|
Non-interest income
|
|
|
1,739
|
|
|
14,544
|
|
|
Non-interest expense
|
|
|
42,845
|
|
|
36,429
|
|
|
Income before taxes
|
|
|
5,954
|
|
|
2,613
|
|
|
Income tax expense
|
|
|
2,282
|
|
|
1,015
|
|
|
Net
income
|
|
$
|
3,672
|
|
$
|
1,598
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
|
$
|
0.13
|
|
$
|
0.06
|
|
|
Diluted
earnings per common share
|
|
$
|
0.13
|
|
$
|
0.06
|
|
|
Book value
per common share
|
|
$
|
7.04
|
|
$
|
7.00
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
|
0.28
|
%
|
|
0.15
|
%
|
|
Return on
average shareholders' equity
|
|
|
1.80
|
%
|
|
0.91
|
%
|
|
Net interest
margin
|
|
|
4.76
|
%
|
|
4.06
|
%
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
1,303,249
|
|
$
|
1,056,249
|
|
|
Average
shareholders' equity
|
|
$
|
203,861
|
|
$
|
174,888
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares of outstanding common stock
|
|
|
30,569,032
|
|
|
24,793,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE 1st United Bancorp, Inc.