1st United Bancorp, Inc. Announces Increased Earnings for the Three
and Nine Months ended September 30, 2012
BOCA RATON, Fla., Oct. 22, 2012 /PRNewswire/ -- (NASDAQ Global
Select: FUBC) -- 1st United Bancorp, Inc.
("1st United") reported net income of $1.6 million ($0.05
per share) for the three months ended September 30, 2012 as compared to net income of
$1.4 million ($0.05 per share) for the three months ended
September 30, 2011. 1st United had
net income of $3.0 million
($0.09 earnings per share) for the
nine months ended September 30, 2012,
compared to net income of $2.8
million ($0.10 earnings per
share) for the nine months ended September
30, 2011.
Highlights for the three and nine months ended September 30, 2012:
Financial Condition
- Total assets at September 30,
2012 grew by $123.5 million to
$1.54 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
$5.8 million from the merger.
- Total deposits at September 30,
2012 were $1.29 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. 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 31% of total deposits at
September 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 September 30, 2012 were 22.54%, 21.37% and
11.33%, respectively, and exceeded all regulatory requirements for
"well capitalized."
Asset Quality
- Total non-performing assets were $40.8
million (2.64% of total assets) at September 30, 2012 representing a
$9.9 million reduction as compared to
the June 30, 2012 balance of
$50.7 million (3.14% of total assets)
and a $16.2 million reduction as
compared to the December 31, 2011
balance of $57.0 million (4.01% of
total assets).
- Excluding assets covered by loss share agreements,
non-performing assets reduced by approximately $8.6 million for the three months ended
September 30, 2012 to $18.5 million (1.20% of total assets) as compared
to $27.1 million (1.68% of total
assets) at June 30, 2012.
- Included in the $40.8 million in
non-performing assets at September 30,
2012 was $22.3 million of
assets covered under loss sharing agreement for which approximately
$690,000 are assets under agreements
to sell at no additional loss which we anticipate closing in the
fourth quarter.
- Loans past due greater than 30 days and less than 90 days at
September 30, 2012 were $1.8 million, representing a $.1 million reduction as compared to the
June 30, 2012 balance of $1.9
million and a $2.7 million
reduction to the December 31, 2011
balance of $4.5 million.
Operating Results
Net income of $1.6 million for the
quarter ended September 30, 2012 was
impacted by:
- The provision for loan losses of $1.1
million which was recorded during the quarter ended
September 30, 2012.
- Net interest margin was 5.33% for the quarter ended
September 30, 2012.
Approximately $3.6 million or 108
basis points of the September 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
4.25%.
- Net gains on the sale of other real estate of $1.0 million were realized for the quarter ended
September 30, 2012. Gains on
the resolution of OREO properties covered under loss sharing
agreements was $1.1 million for the
three months ending September 30,
2012.
- A charge of approximately $4.5
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 $3.0 million for the
nine months ended September 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 expenses
primarily include personnel, information technology and facilities
costs.
- A loan provision of $5.5 million
was recorded during the nine months ended September 30, 2012.
- Net interest margin was 5.08% for the nine months ended
September 30, 2012.
Approximately $7.3 million or 74
basis points of the September 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
4.34%.
- Gains on the sale of securities of $1.7
million were realized for the nine months ended September 30, 2012.
- Net gains on the sale of other real estate of $3.0 million were realized for the nine months
ending September 30, 2012.
Gains on the resolution of OREO properties covered under loss
sharing agreements was $3.1 million
for the nine months ending September 30,
2012.
- A charge of $10.1 million was
recorded during the nine months ended September 30, 2012 related to the increased cash
flows on loss share assets which reduced the FDIC receivable.
Management Comments:
"We are pleased with the strength and quality of our
$1.5 billion asset enterprise at
September 30, 2012," said
Warren S. Orlando, Chairman.
"We currently have 22 banking centers in Florida with the majority of them in major
growth areas. We 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 have improved to $1.6
million for the quarter ended September 30, 2012. Our margin continues to
remain strong and is driven by our core deposits and low cost of
funds. We currently have approximately 31% of our total
deposits comprised of non-interest bearing deposits at September 30, 2012. Our loan portfolio,
though slightly down from last quarter by approximately
$12 million is beginning to stabilize
despite continued strong payoffs and resolutions of loss sharing
loans. Our new loan pipeline remains strong as we continue to
make progress towards net loan growth," said Rudy E. Schupp, Chief Executive Officer.
"We have had and continue to see increased loan production in each
of the markets we are serving."
"We are encouraged with our improvement in non-performing assets
during the quarter, with a reduction of $9.9
million since June 30, 2012.
Our legacy non- performing asset ratio has now been reduced
to 1.2% of total assets. We are also 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 3:00 p.m. Eastern Daylight Time on October 23, 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 November 7, 2012
by dialing 866-430-4718 (domestic), using the passcode 1423.
About 1st United Bancorp, Inc.
1st United is a financial holding company
headquartered in Boca Raton,
Florida with executive offices and operations located in
West Palm Beach, 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.
|
|
For the
three month period ended September 30,
|
|
|
|
2012
|
|
2011
|
|
INCOME
STATEMENT DATA
(unaudited)
|
|
|
(Amounts
in thousands, except
per share
data)
|
|
Interest
income
|
|
$
|
19,183
|
|
$
|
13,590
|
|
Interest
expense
|
|
|
1,277
|
|
|
1,452
|
|
Net interest income
|
|
|
17,906
|
|
|
12,138
|
|
Provision
for loan losses
|
|
|
1,050
|
|
|
1,450
|
|
Net interest income after provision for loan
losses
|
|
|
16,856
|
|
|
10,688
|
|
|
|
|
|
|
|
|
|
Net gains
(losses) on sales of OREO
|
|
|
1,020
|
|
|
(29)
|
|
Adjustment
to FDIC loss share receivable
|
|
|
(4,150)
|
|
|
(205)
|
|
Other
non-interest income
|
|
|
1,261
|
|
|
1,145
|
|
Total non-interest income
|
|
|
(1,869)
|
|
|
911
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
|
6,157
|
|
|
4,675
|
|
Occupancy
and equipment
|
|
|
2,057
|
|
|
1,758
|
|
Other
non-interest expense
|
|
|
4,239
|
|
|
2,934
|
|
Total non-interest expense
|
|
|
12,453
|
|
|
9,367
|
|
|
|
|
|
|
|
|
|
Income
before taxes
|
|
|
2,534
|
|
|
2,232
|
|
Income tax
expense
|
|
|
960
|
|
|
836
|
|
Net income
|
|
$
|
1,574
|
|
$
|
1,396
|
|
|
|
|
|
|
|
|
|
PER
SHARE DATA
|
|
|
|
|
|
|
|
Basic and diluted earnings per share
|
|
$
|
0.05
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
0.40%
|
|
|
0.44%
|
|
Return on average shareholders' equity
|
|
|
2.62%
|
|
|
2.60%
|
|
Net interest margin
|
|
|
5.33%
|
|
|
4.30%
|
|
|
|
|
|
|
|
|
|
Average assets
|
|
$
|
1,574,337
|
|
$
|
1,271,262
|
|
Average shareholders' equity
|
|
$
|
238,405
|
|
$
|
213,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
nine month period ended September 30,
|
|
|
|
2012
|
|
2011
|
|
INCOME
STATEMENT DATA
(unaudited)
|
|
|
(Amounts
in thousands, except
per share
data)
|
|
Interest
income
|
|
$
|
54,237
|
|
$
|
44,574
|
|
Interest
expense
|
|
|
4,191
|
|
|
4,764
|
|
Net interest income
|
|
|
50,046
|
|
|
39,810
|
|
Provision
for loan losses
|
|
|
5,450
|
|
|
4,800
|
|
Net interest income after provision for loan
losses
|
|
|
44,596
|
|
|
35,010
|
|
|
|
|
|
|
|
|
|
Net gains
on the sale of securities
|
|
|
1,673
|
|
|
—
|
|
Net gains
(losses) on sales of OREO
|
|
|
2,974
|
|
|
(254)
|
|
Adjustment
to FDIC loss share receivable
|
|
|
(9,268)
|
|
|
(1,955)
|
|
Other
non-interest income
|
|
|
3,623
|
|
|
3,480
|
|
Total non-interest income
|
|
|
(998)
|
|
|
1,271
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
|
18,104
|
|
|
15,037
|
|
Occupancy
and equipment
|
|
|
6,022
|
|
|
5,863
|
|
Merger
reorganization expense
|
|
|
1,784
|
|
|
910
|
|
Other
non-interest expense
|
|
|
12,880
|
|
|
9,905
|
|
Total non-interest expense
|
|
|
38,790
|
|
|
31,715
|
|
|
|
|
|
|
|
|
|
Income
before taxes
|
|
|
4,808
|
|
|
4,566
|
|
Income tax
expense
|
|
|
1,807
|
|
|
1,750
|
|
Net income
|
|
$
|
3,001
|
|
$
|
2,816
|
|
|
|
|
|
|
|
|
|
PER
SHARE DATA
|
|
|
|
|
|
|
|
Basic and diluted earnings per share
|
|
$
|
0.09
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
0.26%
|
|
|
0.30%
|
|
Return on average shareholders' equity
|
|
|
1.73%
|
|
|
1.88%
|
|
Net interest margin
|
|
|
5.08%
|
|
|
4.82%
|
|
|
|
|
|
|
|
|
|
Average assets
|
|
$
|
1,525,093
|
|
$
|
1,270,511
|
|
Average shareholders' equity
|
|
$
|
230,707
|
|
$
|
200,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECT
FINANCIAL DATA
(unaudited)
|
|
September
30, 2012
|
|
December
31,
2011
|
|
|
|
(Amounts
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,544,952
|
|
$
|
1,421,487
|
|
Gross loans
|
|
|
930,851
|
|
|
879,214
|
|
Allowance for loan losses
|
|
|
9,358
|
|
|
12,836
|
|
Net loans
|
|
|
921,644
|
|
|
866,431
|
|
Cash and cash equivalents
|
|
|
197,397
|
|
|
165,424
|
|
Securities available for sale
|
|
|
223,332
|
|
|
201,722
|
|
Other real estate owned
|
|
|
17,768
|
|
|
13,462
|
|
Goodwill and other intangible assets
|
|
|
62,149
|
|
|
56,187
|
|
FDIC loss share receivable
|
|
|
51,792
|
|
|
72,795
|
|
Deposits
|
|
|
1,289,119
|
|
|
1,181,708
|
|
Non-interest bearing deposits
|
|
|
395,231
|
|
|
329,283
|
|
Shareholders' equity
|
|
|
239,324
|
|
|
215,351
|
|
|
|
|
|
|
|
|
|
SELECTED ASSET QUALITY DATA, CAPITAL AND ASSET
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/assets
|
|
|
15.49%
|
|
|
15.15%
|
|
Non-accrual and loans past due greater than 90 days
loans/total loans
|
|
|
2.47%
|
|
|
4.94%
|
|
Allowance for loan losses/total loans
|
|
|
1.01%
|
|
|
1.46%
|
|
Allowance for loan losses/non-accrual
loans
|
|
|
40.72%
|
|
|
29.97%
|
|
Leverage ratio
|
|
|
11.33%
|
|
|
11.79%
|
|
Tier 1 risk based capital
|
|
|
21.37%
|
|
|
23.97%
|
|
Total risk based capital
|
|
|
22.54%
|
|
|
25.23%
|
|
Book value per share
|
|
$
|
7.02
|
|
$
|
7.04
|
|
Number of shares of outstanding common
stock
|
|
|
34,070,270
|
|
|
30,569,032
|
|
SOURCE 1st United Bancorp, Inc.