BOCA RATON, Fla., July 23, 2013 /PRNewswire/ -- (NASDAQ Global
Select: FUBC) -- 1st United Bancorp, Inc.
("1st United") reported net income of $1.8 million ($0.05
per share) for the three months ended June
30, 2013 as compared to net income of $647,000 ($0.02 per
share) for the three months ended June 30,
2012. 1st United reported net income of
$3.4 million ($0.10 per share) for the six months ended
June 30, 2013 as compared to net
income of $1.4 million ($0.04 per share) for the six months ended
June 30, 2012.
Highlights for the quarter and six months ended June 30, 2013:
Financial Condition
- Total assets at June 30, 2013
were $1.55 billion, as compared to
approximately $1.56 billion at
March 31, 2013 and $1.57 billion at December
31, 2012. During the six months ended June 30, 2013, 1st United continued to
redeploy excess liquidity by increasing total loans by $21.5 million and securities by $94.7 million.
- Total deposits at June 30, 2013
of $1.29 billion were consistent with
total deposits at March 31, 2013 and
December 31, 2012. Non-interest
bearing deposits were approximately 35% of total deposits at
June 30, 2013 as compared to
approximately 34% of total deposits at March
31, 2013 and 33% of total deposits at December 31, 2012.
- Total risk-based capital ratio, Tier 1 capital ratio, and
leverage ratio for 1st United at June 30, 2013 were 20.01%, 18.89% and 11.26%,
respectively, and exceeded all regulatory requirements for "well
capitalized."
Asset Quality
- Total non-performing assets were $39.7
million (2.57% of total assets) at June 30, 2013 representing a $2.9 million decrease as compared to $42.7 million (2.73% of total assets) at
March 31, 2013 and a $3.2 million decrease as compared to the
December 31, 2012 balance of
$42.9 million (2.74% of total
assets).
- Included in the $39.7 million in
non-performing assets at June 30,
2013 were $20.9 million of
assets covered under loss share agreements as compared to total
non-performing assets at March 31,
2013 of $42.7 million, of
which $23.9 million were covered
under loss share agreements. At June
30, 2013, we had approximately $1.5
million of assets under agreements to sell at no additional
loss which we anticipate closing during the third quarter 2013.
Excluding assets covered by FDIC loss share agreements,
non-performing assets were $18.8
million (1.22% of total assets) at June 30, 2013 as compared to $18.8 million (1.20% of total assets) at
March 31, 2013 and $18.3 million (1.17% of total assets) at
December 31, 2012.
- Classified assets (substandard and special mention) decreased
by $8.5 million from $73.4 million at March 31,
2013 to $64.8 million at
June 30, 2013. Classified assets at
June 30, 2013 decreased by
$26.4 million from $91.3 million at December
31, 2012. These decreases were 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
June 30, 2013 were $2.8 million, representing a $1.1 million decrease as compared to the
March 31, 2013 balance of
$3.9 million and a $7.0 million decrease as compared to the
December 31, 2012 balance of
$9.8 million.
Operating Results – Quarter ended June
30, 2013
Net income of $1.8 million for the
three months ended June 30, 2013 was
impacted by the following:
- The net interest margin was 5.8% for the quarter ended
June 30, 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 resulting
in additional margin income of $5.4
million or 159 basis points. Exclusive of this, 1st United's
margin would have been approximately 4.20%.
- The provision for loan losses was $1.3
million for the quarter ended June
30, 2013.
- Net gains on sales of securities of $609,000 were realized for the quarter ended
June 30, 2013.
- Net gains on sales of other real estate of $393,000 were realized for the quarter ended
June 30, 2013, which primarily
related to assets covered under loss share agreements.
- A charge of approximately $5.2
million was recorded during the quarter related to the
income (approximately $5.4 million)
from the increased cash flows on the resolution, including sales,
payoffs and transfers to other real estate owned, of assets covered
under FDIC loss sharing agreements, which included approximately
$312,000 related to other real
estate, which reduced the FDIC loss share receivable.
- 1st United incurred initial merger reorganization
related expenses of $128,000 related
to the merger of Enterprise Bancorp, Inc. (EBI), which was
completed on July 1, 2013.
Expenses primarily included professional fees associated with the
merger and integration of operations. Additional merger
reorganization costs of up to $1.8
million are anticipated to be incurred for the third quarter
of 2013.
- 1st United determined to strategically close one
banking center on the west coast of Florida. The banking
center will close during the fourth quarter of 2013 with both
customers and employees relocated to another 1st United
banking center. The related expense for this closing of
$404,000 was incurred during the
quarter ended June 30, 2013 and
includes termination of the facilities lease and related write-off
of leasehold improvements and other fixed assets. The closure
of this location is anticipated to produce an annualized operating
expense savings of approximately $400,000 per year.
- Inclusive within non-interest expense were write-downs of
$114,000 of other real estate owned
to their fair values due to updated appraisals.
Operating Results – Six months ended June 30, 2013
Net income of $3.4 million for the
six months ended June 30, 2013 was
impacted by the following:
- The net interest margin was 5.45% for the six months ended
June 30, 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
$8.4 million or 126 basis points.
Exclusive of this, 1st United's margin would have been
approximately 4.19%.
- The provision for loan losses was $2.0
million for the six months ended June
30, 2013.
- Net gains on sales of securities of $732,000 were realized for the six months ended
June 30, 2013.
- Net gains on sales of other real estate of $833,000 were realized for the six months ended
June 30, 2013, which primarily
related to assets covered under loss share agreements.
- A charge of approximately $8.2
million was recorded during the six months related to the
income (approximately $8.4 million)
from increased cash flows on the resolution, including sales,
payoffs and transfers to other real estate owned, of assets covered
under FDIC loss sharing agreements, which included approximately
$659,000 related to other real
estate, which reduced the FDIC loss share receivable.
- Inclusive within non-interest expense were write-downs of
$641,000 of other real estate owned
to their fair values due to updated appraisals.
Management Comments:
"We are excited about our merger with Enterprise Bancorp, Inc.
("EBI") and its wholly owned subsidiary Enterprise Bank which was
completed on July 1, 2013. We
acquired total loans of $160 million
and deposits of $176.9 million," said
Warren S. Orlando, Chairman.
"This acquisition will grow our current $1.5
billion balance sheet to approximately $1.7 billion. EBI contributed three banking
centers, one of which will be closed and one of which a
1st United banking center will be merged into for a net
result of one new banking center. 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 net earnings have improved to $1.8
million for the quarter ended June
30, 2013. These results included a loan provision of
$1.3 million. Our margin
continues to remain strong and is driven by our core deposits and
low cost of funds. We currently have approximately 35% of our
total deposits comprised of non-interest bearing deposits at
June 30, 2013. Our gross loan
portfolio increased for the second consecutive quarter. We
had originations and loan advances of $77.1
million which were partially offset by payoffs and
resolutions of $70.1 million.
Our new loan pipeline remains strong moving into the third 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 currently estimate approximately $9.5
million in goodwill will be recorded due to the EBI
acquisition. The conversion of systems will be completed by
the end of the third quarter, and we estimate one-time merger and
integration costs of up to $1.8
million. We are encouraged with the continued
improvement in non-performing and classified assets during the
quarter, with a reduction of $2.9
million in non-performing assets along with a reduction of
$8.5 million in classified assets
since March 31, 2013. 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 July 24, 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 July 24, 2013 until
August 7, 2013 by dialing (888)
562-2764 (domestic), using the passcode 5421.
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
operates 23 branches in South and Central
Florida, including Brevard,
Broward, Hillsborough, Indian
River, Miami-Dade,
Orange, 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. 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; 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
June 30,
|
|
|
|
2013
|
|
2012
|
|
INCOME STATEMENT
DATA
(unaudited)
|
|
|
(Amounts in
thousands, except per
share
data)
|
|
|
|
|
|
|
Interest
income
|
|
$
|
20,546
|
|
$
|
19,166
|
|
Interest
expense
|
|
|
898
|
|
|
1,476
|
|
Net interest
income
|
|
|
19,648
|
|
|
17,690
|
|
Provision for loan
losses
|
|
|
1,300
|
|
|
3,100
|
|
Net interest income
after provision for loan
losses
|
|
|
18,348
|
|
|
14,590
|
|
|
|
|
|
|
|
|
|
Net gains on sales of
OREO
|
|
|
393
|
|
|
1,218
|
|
Net gains on sales of
securities
|
|
|
609
|
|
|
1,175
|
|
Adjustment to FDIC
loss share receivable
|
|
|
(4,922)
|
|
|
(3,042)
|
|
Other non-interest
income
|
|
|
1,201
|
|
|
1,240
|
|
Total non-interest
income
|
|
|
(2,719)
|
|
|
591
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
6,028
|
|
|
6,238
|
|
Occupancy and
equipment
|
|
|
1,969
|
|
|
2,020
|
|
Merger reorganization
expense
|
|
|
128
|
|
|
1,309
|
|
Disposal of banking
center
|
|
|
404
|
|
|
—
|
|
Other non-interest
expense
|
|
|
4,299
|
|
|
4,595
|
|
Total non-interest
expense
|
|
|
12,828
|
|
|
14,162
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
2,801
|
|
|
1,019
|
|
Income tax
expense
|
|
|
1,034
|
|
|
372
|
|
Net
income
|
|
$
|
1,767
|
|
$
|
647
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
$
|
0.05
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.45
|
%
|
|
0.16
|
%
|
Return on average
shareholders' equity
|
|
|
2.97
|
%
|
|
1.10
|
%
|
Net interest
margin
|
|
|
5.79
|
%
|
|
5.14
|
%
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
1,572,022
|
|
$
|
1,596,678
|
|
Average shareholders'
equity
|
|
$
|
239,018
|
|
$
|
236,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six month
period ended
June 30,
|
|
|
|
2013
|
|
2012
|
|
INCOME STATEMENT
DATA
(unaudited)
|
|
|
(Amounts in
thousands, except per
share
data)
|
|
|
|
|
|
|
Interest
income
|
|
$
|
38,266
|
|
$
|
35,054
|
|
Interest
expense
|
|
|
1,889
|
|
|
2,913
|
|
Net interest
income
|
|
|
36,377
|
|
|
32,141
|
|
Provision for loan
losses
|
|
|
1,950
|
|
|
4,400
|
|
Net interest income
after provision for loan
losses
|
|
|
34,427
|
|
|
27,741
|
|
|
|
|
|
|
|
|
|
Net gains on sales of
OREO
|
|
|
833
|
|
|
1,953
|
|
Net gains on sales of
securities
|
|
|
732
|
|
|
1,673
|
|
Adjustment to FDIC
loss share receivable
|
|
|
(7,741)
|
|
|
(5,117)
|
|
Other non-interest
income
|
|
|
2,470
|
|
|
2,361
|
|
Total non-interest
income
|
|
|
(3,706)
|
|
|
870
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
12,227
|
|
|
11,946
|
|
Occupancy and
equipment
|
|
|
3,938
|
|
|
3,965
|
|
Merger reorganization
expense
|
|
|
128
|
|
|
1,760
|
|
Disposal of banking
center
|
|
|
404
|
|
|
—
|
|
Other non-interest
expense
|
|
|
8,607
|
|
|
8,666
|
|
Total non-interest
expense
|
|
|
25,304
|
|
|
26,337
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
5,417
|
|
|
2,274
|
|
Income tax
expense
|
|
|
2,029
|
|
|
847
|
|
Net
income
|
|
$
|
3,388
|
|
$
|
1,427
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
$
|
0.10
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.44
|
%
|
|
0.19
|
%
|
Return on average
shareholders' equity
|
|
|
2.87
|
%
|
|
1.27
|
%
|
Net interest
margin
|
|
|
5.45
|
%
|
|
4.95
|
%
|
|
|
|
|
|
|
|
|
Average
assets
|
|
$
|
1,561,740
|
|
$
|
1,499,248
|
|
Average shareholders'
equity
|
|
$
|
238,363
|
|
$
|
225,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECT FINANCIAL
DATA
|
|
June 30,
2013
|
|
December 31,
2012
|
|
(unaudited)
|
|
(Amounts in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,545,299
|
|
$
|
1,566,779
|
|
Gross
loans
|
|
|
934,634
|
|
|
913,168
|
|
Allowance for loan
losses
|
|
|
10,063
|
|
|
9,788
|
|
Net loans
|
|
|
924,727
|
|
|
903,600
|
|
Cash and cash
equivalents
|
|
|
79,111
|
|
|
207,117
|
|
Securities available
for sale
|
|
|
354,869
|
|
|
260,122
|
|
Other real estate
owned
|
|
|
18,104
|
|
|
19,529
|
|
Goodwill and other
intangible assets
|
|
|
61,429
|
|
|
61,767
|
|
FDIC loss share
receivable
|
|
|
35,249
|
|
|
46,735
|
|
Deposits
|
|
|
1,292,118
|
|
|
1,303,022
|
|
Non-interest bearing
deposits
|
|
|
447,207
|
|
|
426,968
|
|
Shareholders'
equity
|
|
|
232,589
|
|
|
236,690
|
|
|
|
|
|
|
|
|
|
SELECTED ASSET
QUALITY DATA, CAPITAL AND
ASSET
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/assets
|
|
|
15.05
|
%
|
|
15.11
|
%
|
Non-accrual and loans
past due greater than 90 days
loans/total loans
|
|
|
2.31
|
%
|
|
2.56
|
%
|
Allowance for loan
losses/total loans
|
|
|
1.08
|
%
|
|
1.07
|
%
|
Allowance for loan
losses/non-accrual loans
|
|
|
46.55
|
%
|
|
45.94
|
%
|
Leverage
ratio
|
|
|
11.26
|
%
|
|
11.44
|
%
|
Tier 1 risk based
capital
|
|
|
18.89
|
%
|
|
21.21
|
%
|
Total risk based
capital
|
|
|
20.01
|
%
|
|
22.43
|
%
|
Book value per
share
|
|
$
|
6.78
|
|
$
|
6.95
|
|
Number of shares of
outstanding common stock
|
|
|
34,287,056
|
|
|
34,070,270
|
|
SOURCE 1st United Bancorp, Inc.