BOCA RATON, Fla., July 23, 2012 /PRNewswire/ -- (NASDAQ Global
Select: FUBC) - 1st United Bancorp, Inc.
("1st United") reported net income of $1.427 million ($0.04 earnings per share) for the six months
ended June 30, 2012, compared to net
income of $1.419 million
($0.05 earnings per share) for the
six months ended June 30, 2011.
1st United had net income of $647,000 ($0.02 per
share) for the three months ended June 30,
2012 as compared to net income of $1.064 million ($0.03 per share) for the three months ended
June 30, 2011
Highlights for the quarter and six months ended June 30, 2012:
Financial Condition
- Total assets at June 30, 2012
grew by $192.2 million to
$1.61 billion, as compared to
approximately $1.42 billion at
December 31, 2011. The increase
was substantially a result of the merger of Anderen Financial, Inc.
("Anderen") on April 1, 2012 which
added $132.0 million in loans,
$37.7 million in securities,
$161.0 million in deposits, and
$19.1 million in capital during the
quarter ending June 30, 2012.
1st United recorded goodwill of approximately
$5.46 million from the merger.
- Total deposits at June 30, 2012
were $1.36 billion as compared to
$1.18 billion at December 31, 2011. The increase was
primarily due to the $161.0 million
of deposits added from the Anderen merger and $38.0 million related to a short-term deposit
received near quarter end. The remaining change was due to
ongoing development efforts offset by expected run-off of acquired
high cost deposits. Non-interest bearing deposits were
approximately 32% of total deposits at June
30, 2012, as compared to 28% at December 31, 2011.
- Total risk-based capital ratio, Tier 1 capital ratio, and
leverage ratio for 1st United at June 30, 2012 were 21.84%, 20.69% and 10.91%,
respectively, and exceeded all regulatory requirements for "well
capitalized."
Asset Quality
- Total non-performing assets were reduced by approximately
$6.3 million for the six month period
ended June 30, 2012 to $50.7 million (3.1% of total assets) as compared
to $57.0 million (4.0% of total
assets) at December 31, 2011.
- Excluding assets covered by loss share agreements,
non-performing assets reduced by approximately $6.8 million for the six months ended
June 30, 2012 to $27.1 million (1.68% of total assets) as compared
to $34.0 million (2.39% of total
assets) at December 31, 2011.
- Included in the $27.1 million in
non-performing assets not covered by loss share agreements at
June 30, 2012 is approximately
$7.8 million in assets under
agreements to sell at no additional loss which we anticipate
closing in the third quarter.
- Substandard loans were significantly reduced by $20.7 million to $43.4
million at June 30, 2012 as
compared to $64.1 million at
December 31, 2011.
- Loans past due greater than 30 days and less than 90 days at
June 30, 2012 were $1.9 million, representing a $2.6 million reduction as compared to the
December 31, 2011 balance of
$4.5 million.
Operating Results
Net income of $647,000 for the
quarter ended June 30, 2012 was
impacted by:
- Merger reorganization expenses related to the merger and
integration of Anderen, consisting of personnel, information
technology and facilities costs, for the quarter ended June 30, 2012, were approximately $1.3 million.
- The provision for loan losses of $3.1
million and net charge-offs of approximately $6.1 million were recorded during the quarter
ended June 30, 2012. Approximately
$2.5 million of this provision and
$5.2 million of the charge-offs
related to the resolution of 1st United's largest
non-performing asset, consisting of a loan collateralized by 15 gas
stations, which had a balance of $11.4
million at March 31,
2012. During the quarter, management determined it was in the
best interest of 1st United to sell the assets in bulk,
though at significantly below their most current appraised values,
and entered into a sale agreement. At June 30, 2012, this asset was included in other
real estate at $5.8 million with the
sale anticipated to close early in the third quarter with no
additional loss.
- Net interest margin was 5.14% for the quarter ended
June 30, 2012. Approximately
$2.0 million or 59 basis points of
the June 30, 2012 margin related to
accretion related to resolutions of loans above their carrying
values during the quarter. Exclusive of this accretion, 1st
United's margin would have been approximately 4.55%.
- Gains on the sale of securities of $1.2
million were realized for the quarter ended June 30, 2012.
- A charge of $2 million was
recorded during the quarter related to the increased cash flows on
loss share assets which reduced the FDIC receivable.
Operating Results
Net income of $1.4 million for the
six months ended June 30, 2012 was
impacted by:
- Merger reorganization expenses of $1.8
million related to the merger and integration of Anderen
during the second quarter 2012 and the integration of Old Harbor
during the first quarter 2012. Merger reorganization expense
primarily include personnel, information technology and facilities
costs.
- A loan provision of $4.4 million
and net charge-offs of approximately $7.9
million were recorded during the six months ended
June 30, 2012. Approximately
$3.1 million of this provision and
$5.2 million of the charge-offs
related to the resolution of 1st United's largest
non-performing asset which had a loan balance of $11.4 million at December
31, 2011.
- Net interest margin was 4.95% for the six months ended
June 30, 2012. Approximately
$3.6 million or 56 basis points of
the June 30, 2012 margin related to
accretion related to resolutions of loans above their carrying
values during the quarter. Exclusive of this accretion, 1st
United's margin would have been approximately 4.39%.
- Gains on the sale of securities of $1.7
million were realized for the six months ended June 30, 2012.
- A charge of $3.6 million was
recorded during the six months ended June
30, 2012 related to the increased cash flows on loss share
assets which reduced the FDIC receivable.
Management Comments:
"We are excited to have completed our merger with Anderen Bank
as well as integrating the operation during the quarter ended
June 30, 2012," said Warren S. Orlando, Chairman. "With this
merger, we now have 22 banking centers in Florida with the majority of them in major
growth areas. We also continue to believe that our strong capital
base, liquidity and overall financial strength will allow us the
opportunity to continue to expand both organically as well as
through potential acquisitions."
"Our core earnings are strong after considering the $1.3 million in acquisition related expenses,
$2.5 loan provision related to the
resolution of our largest non-performing asset and the $1.2 million security gains. Our loan
portfolio was up approximately $75
million during the quarter primarily due to the $132 million in loans we acquired from Anderen
and $21 million in new loan fundings
which were offset by transfers to other real estate and resolutions
of non-performing loans during the quarter as well as significant
payoffs of loans. Our backlog continues to remain strong as
we continue to make progress towards net loan growth" said
Rudy E. Schupp, Chief Executive
Officer. "We are starting to see increased loan production in
each of the markets we are serving."
"We are encouraged with our overall reduction in non-performing
assets and are excited about the opportunity to have an additional
$8.5 million under sale contracts
anticipated to close during the third quarter. Combined with this
reduction we are seeing continued improvement in classified assets
as well as past due loans, though we continue to believe there will
be fluctuations in these areas until the overall market improves.
We remain vigilant and will continue to monitor asset quality
and act quickly to resolve problem assets as they are identified,"
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 10:00 a.m. Eastern Daylight Time on July 24, 2012. The number for the
conference call is (800) 857-9849 (Passcode: 3183056).
A replay of the conference call will be available beginning the
afternoon of until August 7, 2012 by
dialing (domestic), using the passcode
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 22 branches, with 15 in Southeast Florida, including Brevard, Broward, Indian
River, Miami-Dade, and
Palm Beach Counties and 7 branches
in Central Florida including
Hillsborough, Orange, 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) 362-3431. 1st United's stock is listed on
the NASDAQ Global Select 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 and the FDIC receivable; 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
Wall Street Reform, Consumer Protection Act and Basel III; 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 net interest margin from repeal of regulation Q;
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; our customers' willingness to make
timely payments on their loans; our ability to comply with the
terms of the loss sharing agreements with the FDIC; the effects of
the health and soundness of other financial institutions, including
the FDIC's need to increase Deposit Insurance Fund assessments;
negative publicity and the impact on our reputation; limited
trading activity of our common stock; the concentration of
ownership of our common stock; other risks described from time to
time in our filings with the Securities and Exchange Commission;
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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|
For the
three month period ended
June 30,
|
|
|
|
2012
|
|
2011
|
|
INCOME
STATEMENT DATA
(unaudited)
|
|
|
(Amounts
in thousands, except per
share data)
|
|
Interest
income
|
|
$
|
19,166
|
|
$
|
16,302
|
|
Interest
expense
|
|
|
1,476
|
|
|
1,588
|
|
Net interest income
|
|
|
17,690
|
|
|
14,714
|
|
Provision
for loan losses
|
|
|
3,100
|
|
|
1,450
|
|
Net interest income after provision for loan
losses
|
|
|
14,590
|
|
|
13,264
|
|
Other
non-interest income
|
|
|
591
|
|
|
(368)
|
|
Non-interest expense
|
|
|
14,162
|
|
|
11,158
|
|
Income
before taxes
|
|
|
1,019
|
|
|
1,738
|
|
Income tax
expense
|
|
|
372
|
|
|
674
|
|
Net income
|
|
$
|
647
|
|
$
|
1,064
|
|
|
|
|
|
|
|
|
|
PER
SHARE DATA
|
|
|
|
|
|
|
|
Basic and diluted earnings per share
|
|
$
|
0.02
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
0.16%
|
|
|
0.34%
|
|
Return on average shareholders' equity
|
|
|
1.10%
|
|
|
2.03%
|
|
Net interest margin
|
|
|
5.14%
|
|
|
5.35%
|
|
|
|
|
|
|
|
|
|
Average assets
|
|
$
|
1,596,678
|
|
$
|
1,272,600
|
|
Average shareholders' equity
|
|
$
|
236,032
|
|
$
|
209,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
six month period ended
June 30,
|
|
|
|
2012
|
|
2011
|
|
INCOME
STATEMENT DATA
(unaudited)
|
|
|
(Amounts
in thousands, except per
share data)
|
|
Interest
income
|
|
$
|
35,054
|
|
$
|
30,983
|
|
Interest
expense
|
|
|
2,913
|
|
|
3,312
|
|
Net interest income
|
|
|
32,141
|
|
|
27,671
|
|
Provision
for loan losses
|
|
|
4,400
|
|
|
3,350
|
|
Net interest income after provision for loan
losses
|
|
|
27,741
|
|
|
24,321
|
|
Other
non-interest income
|
|
|
870
|
|
|
360
|
|
Non-interest expense
|
|
|
26,337
|
|
|
22,347
|
|
Income
before taxes
|
|
|
2,274
|
|
|
2,334
|
|
Income tax
expense
|
|
|
847
|
|
|
915
|
|
Net income
|
|
$
|
1,427
|
|
$
|
1,419
|
|
|
|
|
|
|
|
|
|
PER
SHARE DATA
|
|
|
|
|
|
|
|
Basic and diluted earnings per share
|
|
$
|
0.04
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
0.19%
|
|
|
0.23%
|
|
Return on average shareholders' equity
|
|
|
1.27%
|
|
|
1.48%
|
|
Net interest margin
|
|
|
4.95%
|
|
|
5.13%
|
|
|
|
|
|
|
|
|
|
Average assets
|
|
$
|
1,499,248
|
|
$
|
1,259,776
|
|
Average shareholders' equity
|
|
$
|
225,864
|
|
$
|
193,914
|
|
|
|
|
|
|
|
|
|
SELECT
FINANCIAL DATA
(unaudited)
|
|
June
30,
2012
|
|
December
31,
2011
|
|
|
|
(Amounts
in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,613,445
|
|
$
|
1,421,247
|
|
Gross loans
|
|
|
943,020
|
|
|
880,777
|
|
Allowance for loan losses
|
|
|
9,356
|
|
|
12,836
|
|
Net loans
|
|
|
933,769
|
|
|
867,994
|
|
Cash and cash equivalents
|
|
|
300,672
|
|
|
165,424
|
|
Securities available for sale
|
|
|
160,083
|
|
|
201,722
|
|
Other real estate owned
|
|
|
26,749
|
|
|
13,512
|
|
Goodwill and other intangible assets
|
|
|
61,058
|
|
|
55,229
|
|
FDIC loss share receivable
|
|
|
57,688
|
|
|
71,900
|
|
Deposits
|
|
|
1,358,406
|
|
|
1,181,708
|
|
Non-interest bearing deposits
|
|
|
431,225
|
|
|
329,283
|
|
Shareholders' equity
|
|
|
236,256
|
|
|
215,351
|
|
|
|
|
|
|
|
|
|
SELECTED ASSET QUALITY DATA,
CAPITAL
AND ASSET QUALITY
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/assets
|
|
|
14.64%
|
|
|
15.15%
|
|
Non-accrual and loans past due greater than 90
days
loans/total loans
|
|
|
2.54%
|
|
|
4.94%
|
|
Allowance for loan losses/total loans
|
|
|
0.99%
|
|
|
1.46%
|
|
Allowance for loan losses/non-accrual
loans
|
|
|
39.11%
|
|
|
29.97%
|
|
Leverage ratio
|
|
|
10.91%
|
|
|
11.79%
|
|
Tier 1 risk based capital
|
|
|
20.69%
|
|
|
23.97%
|
|
Total risk based capital
|
|
|
21.84%
|
|
|
25.23%
|
|
Book value per share
|
|
$
|
6.93
|
|
$
|
7.04
|
|
Number of shares of outstanding common
stock
|
|
|
34,070,270
|
|
|
30,569,032
|
|
SOURCE 1st United Bancorp, Inc.