BOCA RATON, Fla., July 1, 2013 /PRNewswire/ -- 1st
United Bancorp, Inc. ("1st United") (NASDAQ Global
Select: FUBC) completed its acquisition by merger of
Enterprise Bancorp, Inc. ("EBI") and its wholly-owned
subsidiary Enterprise Bank of Florida ("Enterprise Bank") for an estimated
$45.8 million in total
consideration.
The total estimated consideration of $45.8 million includes approximately $5 million in cash, $22.2
million consisting of all former Enterprise Bank
non-performing assets and certain other classified Enterprise Bank
loans, and $18.6 million in impaired
and below investment grade securities and other investments of
Enterprise Bank. 1st United currently estimates
goodwill from the transaction of approximately $9 million, with an earn-back period currently
estimated at approximately three years. Bancorp's capital,
liquidity and balance sheet will remain strong immediately after
this merger.
1st United acquired approximately $160 million in loans and approximately
$175 million of deposits in this
transaction. The former Enterprise Bank gives 1st
United continued expansion within the attractive northern
Palm Beach County, Florida
marketplace, providing opportunities for new loan and deposit
growth. In addition, of the three branches acquired, one will
be consolidated into an existing 1st United banking
center, and one of 1st United's branches will be
consolidated into a banking center of the former Enterprise.
The result will be one net new 1st United branch located
in Jupiter, Florida, added as a
part of this transaction. As a result of this acquisition,
Bancorp now has approximately $1.75
billion in assets, $1.45
billion in total deposits and, subsequent to the branch
consolidations, 23 full service banking offices.
Rudy Schupp, Bancorp's Chief
Executive Officer, said, "We are pleased at how quickly we were
able to consummate this transaction and anticipate the integration
and conversion of the former Enterprise Bank by the end of the
third quarter. The quality of the customers, loans and
deposits acquired complements and adds to our existing strong base.
We believe this acquisition allows us to leverage some of our
excess capital and liquidity, giving rise to earnings accretion
consistent with our business strategy."
Warren Orlando, Bancorp's
Chairman, said, "We are very excited about the opportunities this
transaction offers to expand in the northern Palm Beach County market. Both
organizations' focus on quality customer service will continue to
be the priority of 1st United."
Bancorp expects the merger to be immediately accretive to
earnings per share after the integration of the companies and
expects to continue to have strong capital ratios available for
further growth. Total integration costs, including the
consolidation of branches, are anticipated to be approximately
$1.8 million which will be expensed
in the third quarter of 2013.
About 1st United Bancorp, Inc.
Bancorp is a financial holding company headquartered in
Boca Raton, Florida with executive
offices and operations located in West
Palm Beach, Florida. Bancorp's principal subsidiary,
1st United Bank, is a Florida chartered commercial bank, which
subsequent to the former Enterprise Bank integration will operate
23 branches, with 16 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. Bancorp's
principal executive office and mailing address is One North Federal
Highway, Boca Raton, FL 33432 and
its telephone number is (561) 362-3431. Bancorp'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 Bancorp's future results to differ materially.
The following factors, among others, could cause our actual results
to differ: the accuracy of our estimates in the financial impact of
the merger; disruption to Bancorp's business as a result of the
closing of the transaction; our ability to comply with the terms of
loss sharing 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 Bancorp assumes
no obligation to update forward-looking statements or the reasons
why actual results could differ.
SOURCE 1st United Bancorp, Inc.