BOCA RATON, Fla., April 19, 2013 /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 March
31, 2013 as compared to net income of $780,000 ($0.03 per
share) for the three months ended March 31,
2012.
Highlights for the three months ended March 31, 2013:
Financial Condition
- Total assets at March 31, 2013
were $1.56 billion, as compared to
approximately $1.57 billion at
December 31, 2012. During the
quarter ended March 31, 2013,
1st United continued to redeploy excess liquidity by
increasing total loans by $14.9
million and securities by $50.8
million.
- Total deposits at March 31, 2013
of $1.30 billion were consistent with
total deposits at December 31,
2012. Non-interest bearing deposits were approximately 34% of
total deposits at March 31, 2013 as
compared to 33% of total deposits at December 31, 2012.
- Total risk-based capital ratio, Tier 1 capital ratio, and
leverage ratio for 1st United at March 31, 2013 were 21.48%, 20.36% and 11.62%,
respectively, and exceeded all regulatory requirements for "well
capitalized."
Asset Quality
- Total non-performing assets were $42.7
million (2.73% of total assets) at March 31, 2013 representing a $276,000 decrease as compared to the December 31, 2012 balance of $42.9 million (2.74% of total assets).
- Excluding assets covered by FDIC loss share agreements,
non-performing assets were $18.8
million (1.20% of total assets) at March 31, 2013 as compared to $18.3 million (1.17% of total assets) at
December 31, 2012.
- Included in the $42.7 million in
non-performing assets at March 31,
2013 was $23.9 million of
assets covered under loss share agreements as compared to
$24.6 million of assets covered under
loss share agreement at December 31,
2012. Inclusive within this amount are approximately
$1.8 million of assets under
agreements to sell at no additional loss which we anticipate
closing during the second quarter 2013.
- Classified assets (substandard and special mention) decreased
by $17.9 million from $91.3 million at December
31, 2012 to $73.4 million at
March 31, 2013. The decrease
was due to resolutions, including sales, payoffs and transfers to
other real estate owned, as well as credit upgrades of assets which
have shown continued improvement.
- Loans past due greater than 30 days and less than 90 days at
March 31, 2013 were $3.9 million, representing a $5.9 million decrease as compared to the
December 31, 2012 balance of
$9.8 million. Inclusive within the
$9.8 million at December 31, 2012 was approximately $4.8 million in loans which were pending renewals
which closed in early January
2013.
Operating Results
Net income of $1.6 million for the
three months ended March 31, 2013 was
impacted by:
- The net interest margin was 5.09% for the quarter ended
March 31, 2013. The margin was
positively impacted by increased cash flows of assets covered under
loss share agreements which also included resolutions, including
sales, payoffs and transfers to other real estate owned of
$3.0 million or 91 basis points.
Exclusive of this, 1st United's margin would have been
approximately 4.18%.
- The provision for loan losses was $650,000 for the quarter ended March 31, 2013.
- Net gains on sales of securities of $122,000 were realized for the quarter ended
March 31, 2013.
- Net gains on sales of other real estate of $441,000 were realized for the quarter ended
March 31, 2013, all of which related
to assets covered under loss share agreements.
- A charge of approximately $3.1
million was recorded during the quarter related to the
increased cash flows (which resulted in approximately $3.4 million of income during the quarter) on the
resolution, including sales, payoffs and transfers to other real
estate owned, of assets covered under FDIC loss sharing agreements,
which included approximately $347,000
related to other real estate, which reduced the FDIC loss share
receivable.
- Inclusive within non-interest expense were write-downs of
$464,000 of other real estate owned
to their fair values due to updated appraisals. Exclusive of
these charges, non-interest expense decreased by approximately
$181,000 during the quarter ended
March 31, 2013 as compared to the
quarter ended December 31, 2012, as
1st United continues to look for opportunities to
increase efficiencies in its operations.
Management Comments:
"We are excited about our pending merger with Enterprise
Bancorp, Inc. ("EBI") and its wholly owned subsidiary Enterprise
Bank. At December 31, 2012, EBI had
total assets of $234.8 million,
deposits of $171.4 million and total
shareholders' equity of $37.5 million
and the merger is subject to regulatory and shareholder approval,"
said Warren S. Orlando,
Chairman. "This acquisition will grow our current
$1.6 billion balance sheet and
complement our 22 banking centers in Florida. Our continued
strong capital base, liquidity and overall financial strength will
continue to 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 March
31, 2013. Our margin continues to remain strong and is
driven by our core deposits and low cost of funds. We
currently have approximately 34% of our total deposits comprised of
non-interest bearing deposits at March
31, 2013. Our loan portfolio increased during the
quarter with originations and loan advances of $71.6 million. Our new loan pipeline
remains strong moving into the second quarter and we continue to
see increased loan production in each of the markets that we
serve," said Rudy E. Schupp, Chief
Executive Officer.
"We are encouraged with the continued improvement in
non-performing and classified assets during the quarter, with a
reduction of $276,000 in
non-performing assets and a reduction of $17.9 million in classified assets since
December 31, 2012. We were
pleased by the continued improvement in classified assets, though
we continue to believe there will be fluctuations in this area
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 10:00 a.m. Eastern Daylight Time on April 22, 2013. The number for the
conference call is (800) 857-9849 (Passcode: 3183056).
A replay of the conference call will be available beginning the
evening of April 22, 2013 until
May 5, 2013 by dialing (888) 566-0696
(domestic), using the passcode 5421.
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 comply with the terms
of loss share agreements with the FDIC; legislative and regulatory
changes, including the Dodd-Frank Wall Street Reform, Consumer
Protection Act and Basel III, 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; 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;
the frequency and magnitude of foreclosure of our loans; the
reduction in FDIC insurance on certain non-interest bearing
accounts due to the expiration of the Transaction Account Guarantee
program; increased competition and its effect on pricing including
the impact on our net interest margin from repeal of regulation
Q; our customers' willingness to make timely payments on
their loans; the effects of the health and soundness of other
financial institutions, including the FDIC's need to increase
Deposit Insurance Fund assessments; changes in securities and real
estate markets; changes in monetary and fiscal policies of the U.S.
Government; 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; our need and our ability to incur additional debt
or equity financing; the effects of harsh weather conditions,
including hurricanes, and man-made disasters; 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;
technological changes; negative publicity and the impact on our
reputation; 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; limited trading activity of our common
stock; the concentration of ownership of our common stock; our
ability to retain key members of management; anti-takeover
provisions under federal and state law as well as our Articles of
Incorporation and our Bylaws; other risks described from time to
time in our filings with the Securities and Exchange Commission;
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
March 31,
|
|
|
2013
|
|
|
2012
|
|
INCOME
STATEMENT DATA
(unaudited)
|
|
(Amounts
in thousands, except per
share
data)
|
|
Interest
income
|
$
|
17,720
|
|
$
|
15,888
|
|
Interest
expense
|
|
991
|
|
|
1,437
|
|
Net interest income
|
|
16,729
|
|
|
14,451
|
|
Provision
for loan losses
|
|
650
|
|
|
1,300
|
|
Net interest income after provision for loan
losses
|
|
16,079
|
|
|
13,151
|
|
|
|
|
|
|
|
|
Net gains
on sales of OREO
|
|
441
|
|
|
735
|
|
Net gains
on sales of securities
|
|
122
|
|
|
498
|
|
Adjustment
to FDIC loss share receivable
|
|
(2,820)
|
|
|
(2,075)
|
|
Other
non-interest income
|
|
1,269
|
|
|
1,122
|
|
Total non-interest income
|
|
(988)
|
|
|
280
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
6,199
|
|
|
5,709
|
|
Occupancy
and equipment
|
|
1,969
|
|
|
1,945
|
|
Other
non-interest expense
|
|
4,308
|
|
|
4,522
|
|
Total non-interest expense
|
|
12,476
|
|
|
12,176
|
|
|
|
|
|
|
|
|
Income
before taxes
|
|
2,615
|
|
|
1,255
|
|
Income tax
expense
|
|
995
|
|
|
475
|
|
Net income
|
$
|
1,620
|
|
$
|
780
|
|
|
|
|
|
|
|
|
PER
SHARE DATA
|
|
|
|
|
|
|
Basic and diluted earnings per share
|
$
|
0.05
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS
|
|
|
|
|
|
|
Return on average assets
|
|
0.42
|
%
|
|
0.22
|
%
|
Return on average shareholders' equity
|
|
2.76
|
%
|
|
1.44
|
%
|
Net interest margin
|
|
5.09
|
%
|
|
4.73
|
%
|
|
|
|
|
|
|
|
Average assets
|
$
|
1,551,341
|
|
$
|
1,402,906
|
|
Average shareholders' equity
|
$
|
237,703
|
|
$
|
216,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECT
FINANCIAL DATA
(unaudited)
|
|
March
31,
2013
|
|
December
31,
2012
|
|
|
|
(Amounts
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,561,449
|
|
$
|
1,566,779
|
|
Gross loans
|
|
|
927,692
|
|
|
913,168
|
|
Allowance for loan losses
|
|
|
9,523
|
|
|
9,788
|
|
Net loans
|
|
|
918,467
|
|
|
903,600
|
|
Cash and cash equivalents
|
|
|
143,962
|
|
|
207,117
|
|
Securities available for sale
|
|
|
310,956
|
|
|
260,122
|
|
Other real estate owned
|
|
|
19,066
|
|
|
19,529
|
|
Goodwill and other intangible assets
|
|
|
61,594
|
|
|
61,766
|
|
FDIC loss share receivable
|
|
|
41,189
|
|
|
46,735
|
|
Deposits
|
|
|
1,300,277
|
|
|
1,303,022
|
|
Non-interest bearing deposits
|
|
|
441,526
|
|
|
426,968
|
|
Shareholders' equity
|
|
|
238,110
|
|
|
236,690
|
|
|
|
|
|
|
|
|
|
SELECTED ASSET QUALITY DATA, CAPITAL
AND
ASSET QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/assets
|
|
|
15.25
|
%
|
|
15.11
|
%
|
Non-accrual and loans past due greater than
90
days loans/total loans
|
|
|
2.54
|
%
|
|
2.56
|
%
|
Allowance for loan losses/total loans
|
|
|
1.03
|
%
|
|
1.07
|
%
|
Allowance for loan losses/non-accrual
loans
|
|
|
40.35
|
%
|
|
45.94
|
%
|
Leverage ratio
|
|
|
11.62
|
%
|
|
11.44
|
%
|
Tier 1 risk based capital
|
|
|
20.36
|
%
|
|
21.21
|
%
|
Total risk based capital
|
|
|
21.48
|
%
|
|
22.43
|
%
|
Book value per share
|
|
$
|
6.94
|
|
$
|
6.95
|
|
Number of shares of outstanding common
stock
|
|
|
34,287,056
|
|
|
34,070,270
|
|
SOURCE 1st United Bancorp, Inc.