BOCA RATON, Fla., Feb. 10, 2014 /PRNewswire/ -- (NASDAQ Global
Select: FUBC) —1st United Bancorp, Inc. ("1st
United") reported net income of $6.9
million ($0.20 per share) for
the year ended December 31, 2013 as
compared to net income of $4.7
million ($0.14 per share) for
the year ended December 31, 2012.
1st United had net income of $2.6 million ($0.08
per share) for the three months ended December 31, 2013, compared to net income of
$1.7 million ($0.05 per share) for the three months ended
December 31, 2012.
Highlights for the three months and year ended December 31, 2013 are as follows:
Financial Condition
- Total assets at December 31, 2013
grew by $276.5 million to
$1.85 billion, as compared to
approximately $1.57 billion at
December 31, 2012. The increase
for the year was substantially a result of the acquisition of
Enterprise Bancorp, Inc. ("Enterprise") on July 1, 2013 which added $159.2 million in loans and $4.0 million in securities available for
sale. For the quarter ended December
31, 2013, 1st United had $12.1 million of net organic loan growth.
- 1st United recorded goodwill of approximately
$5.5 million as a result of the
Enterprise acquisition.
- Total deposits at December 31,
2013 were $1.55 billion as
compared to $1.30 billion at
December 31, 2012, an increase of
$244.9 million. The change was
due to the acquisition of $177.2
million of deposits from the Enterprise acquisition and a
customer deposit of $128.0 million
received December 2013 and withdrawn
January 2014, offset by anticipated
runoff of acquired higher cost time deposit and money market
accounts. Non-interest bearing deposits were approximately
34% of total deposits at December 31,
2013, as compared to 33% at December
31, 2012.
- Total risk-based capital ratio, Tier 1 capital ratio, and
leverage ratio for 1st United at December 31, 2013 were 15.47%, 14.61% and 9.66%,
respectively, and exceeded all regulatory requirements for "well
capitalized."
- The Company paid a cash dividend of $0.01 per share in November of 2013 and declared
a special dividend of $0.10 to
holders of common shares in December
2013 that was paid in January
2014.
Asset Quality
- Total non-performing assets were $34.4
million (1.87% of total assets) at December 31, 2013 representing a decrease of
$3.8 million from September 30, 2013 balances of $38.2 million (2.23% of total assets).
Total non-performing assets were $42.9 million at December
31, 2012 (2.74% of total assets).
- Included in the $34.4 million in
non-performing assets at December 31,
2013 were $17.6 million of
assets covered under FDIC loss sharing agreements of which
approximately $1.1 million are assets
under agreements to sell at no additional loss which are
anticipated closing during the first quarter of 2014.
- Non-performing assets not covered under FDIC loss share
agreements were $16.8 million at
December 31, 2013 (0.91% of total
assets); $18.9 million at
September 30, 2013 (1.10% of total
assets) and $18.3 million (1.17% of
total assets) at December 31,
2012.
- Classified loans (substandard and special mention) decreased by
$5.2 million from $64.7 million at September
30, 2013 to $59.5 million at
December 31, 2013. Since
December 31, 2012, total classified
assets have decreased by $31.8
million.
Operating Results – Quarter Ended December 31, 2013
Net income was $2.6 million for
the quarter ended December 31,
2013:
- The net interest margin was 5.42% for the quarter ended
December 31, 2013. The margin
was positively impacted by the resolution of acquired assets above
discounted purchase price and changes in cash flows of assets
covered under FDIC loss sharing agreements by $5.0 million or 129 basis points. Exclusive of
this, 1st United's net interest margin would have been
approximately 4.13%.
- The provision for loan losses was $780,000 for the quarter ended December 31, 2013.
- Net gains on the sale of other real estate of $120,000 were realized for the quarter ended
December 31, 2013.
- A charge of approximately $4.7
million was recorded during the quarter related to the
increased cash flows and the resolution, including sales, payoffs
and transfers to other real estate owned, of assets covered under
FDIC loss sharing agreements, including approximately $102,000 related to other real estate, which
reduced the FDIC loss share receivable.
- Non-interest expense for the quarter ended December 31, 2013 included a charge of
$178,000 related to the write-off of
computer equipment which was replaced and $359,000 related to write-downs to other real
estate owned due to updated appraisals.
Operating Results – Year Ended December 31, 2013
Net income was $6.9 million for
the year ended December 31, 2013:
- The net interest margin was 5.29% for the year ended
December 31, 2013. Inclusive
within the margin for the year ended December 31, 2013 was $16.2 million or 113 basis points related to the
resolutions of acquired assets above discounted purchase price and
changes in cash flows of assets covered under FDIC loss sharing
agreement. Exclusive of this, 1st United's net
interest margin would have been approximately 4.16% for the year
ended December 31, 2013.
- The provision for loan losses was $3.5
million for the year ended December
31, 2013.
- Net gains on the sale of other real estate of $1.1 million were realized for year ended
December 31, 2013.
Substantially all of the gain related to assets covered by loss
sharing agreements.
- Gains on the sale of securities of $824,000 were realized for the year ended
December 31, 2013.
- A charge of $15.8 million, which
was recorded during the year ended December 31, 2013, related
to the increased cash flows and the resolutions, including sales,
payoffs charge-offs and transfers to other real estate owned, of
assets covered under FDIC loss sharing agreements, including
approximately $1.0 million related to
other real estate, which reduced the FDIC loss share
receivable.
- Merger reorganization expenses of $1.7
million were incurred with respect to the merger and
integration of Enterprise during the year ended December 31, 2013. Merger reorganization
expenses primarily included personnel, information technology and
facilities costs.
- During the year, 1st United decided to close two
branch locations, one in South
Florida and one on the west coast of Florida. 1st United took a charge
of $650,000 related to the
termination of leases, write-off of fixed assets and
severance. The banking centers were closed in January 2014 and October
2013, respectively. Additionally, 1st
United took a charge of $178,000
during the quarter ended December 31,
2013 for the disposal of computer equipment which was no
longer in use.
- During the year ended December 31,
2013, 1st United incurred write-downs to other
real estate owned of $1.1 million due
to updated appraised values which are included in other real estate
expenses. This compared to $340,000 for the year ended December 31, 2012.
Management Comments:
"We are pleased with the strength and quality of our
$1.85 billion asset enterprise at
December 31, 2013," said Warren S. Orlando, Chairman. "With the
closure of one banking center in South
Florida in early January 2014,
we have 21 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 earnings were $2.6 million
for the quarter ended December 31,
2013. Our margin continues to remain strong and is
driven by our core deposits and low cost of funds. We had
approximately 34% of our total deposits comprised of non-interest
bearing deposits at December 31,
2013. Our new loan pipeline remains strong. We had net
organic growth for the year and are optimistic this trend will
continue into 2014" said Rudy E.
Schupp, Chief Executive Officer. "We continue to see
new loan production in each of the markets we are serving."
"We are encouraged with the continued improvement in non-loss
share, non-performing assets during the quarter and year ended
December 31, 2013, with reductions of
$2.1 million and $1.5 million, respectively. Our non-loss
share non-performing asset ratio was reduced to 0.91% of total
assets as compared to 1.10% at September 30,
2013 and 1.17% at December 31,
2012. We are also seeing continued improvement in
classified assets. 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 year end results at 11:00 a.m. Eastern Standard Time on February 11, 2014. 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 February 11, 2014 until
February 24, 2014 by dialing (866)
448-4803 (domestic), using the passcode 21114.
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 21 branches in South and Central
Florida, including Brevard,
Broward, Hillsborough, Indian
River, Miami-Dade,
Orange, Palm Beach, 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
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 sharing agreements with the FDIC; legislative and
regulatory changes, including the Dodd-Frank Wall Street Reform,
Consumer Protection Act and Basel III; 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
strength of the United States
economy in general and the strength of the local economies in which
we conduct operations; the effects of security breaches and
computer viruses that may affect our computer systems; the accuracy
of our financial statement estimates and assumptions, including the
estimate of our loan loss provision and the FDIC loss share
receivable; the failure to achieve expected gains, revenue growth,
and/or expense savings from past and future acquisitions; the
frequency and magnitude of foreclosure of our loans;
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; 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; 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
December 31,
|
|
|
2013
|
|
2012
|
|
INCOME STATEMENT
DATA (unaudited)
|
|
(Amounts in
thousands, except
per share data)
|
|
|
|
|
|
Interest
income
|
$
|
21,964
|
|
$
|
18,612
|
|
Interest
expense
|
|
981
|
|
|
1,123
|
|
Net interest
income
|
|
20,983
|
|
|
17,489
|
|
Provision for loan
losses
|
|
780
|
|
|
900
|
|
Net interest income
after provision for loan
losses
|
|
20,203
|
|
|
16,589
|
|
|
|
|
|
|
|
|
Net gains on sales of
OREO
|
|
120
|
|
|
305
|
|
Adjustment to FDIC
loss share receivable
|
|
(4,673)
|
|
|
(3,221)
|
|
Other non-interest
income
|
|
1,304
|
|
|
1,248
|
|
Total non-interest
income
|
|
(3,249)
|
|
|
(1,668)
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
6,195
|
|
|
6,199
|
|
Occupancy and
equipment
|
|
1,987
|
|
|
1,936
|
|
Disposal of banking
centers and equipment
|
|
178
|
|
|
—
|
|
Other non-interest
expense
|
|
4,414
|
|
|
4,058
|
|
Total non-interest
expense
|
|
12,774
|
|
|
12,193
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
4,180
|
|
|
2,728
|
|
Income tax
expense
|
|
1,576
|
|
|
1,001
|
|
Net
income
|
$
|
2,604
|
|
$
|
1,727
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
$
|
0.08
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
Return on average
assets
|
|
0.59
|
%
|
|
0.44
|
%
|
Return on average
shareholders' equity
|
|
4.38
|
%
|
|
2.85
|
%
|
Net interest
margin
|
|
5.42
|
%
|
|
5.21
|
%
|
|
|
|
|
|
|
|
Average
assets
|
$
|
1,762,533
|
|
$
|
1,553,736
|
|
Average shareholders'
equity
|
$
|
235,714
|
|
$
|
240,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
December 31,
|
|
|
2013
|
|
2012
|
|
INCOME STATEMENT
DATA (unaudited)
|
|
(Amounts in
thousands, except
per share data)
|
|
|
|
|
|
Interest
income
|
$
|
79,750
|
|
$
|
72,849
|
|
Interest
expense
|
|
3,790
|
|
|
5,313
|
|
Net interest
income
|
|
75,960
|
|
|
67,536
|
|
Provision for loan
losses
|
|
3,475
|
|
|
6,350
|
|
Net interest income
after provision for loan
losses
|
|
72,485
|
|
|
61,186
|
|
|
|
|
|
|
|
|
Net gains on the sale
of securities
|
|
824
|
|
|
1,673
|
|
Net gains on sales of
OREO
|
|
1,133
|
|
|
3,278
|
|
Adjustment to FDIC
loss share receivable
|
|
(15,250)
|
|
|
(12,488)
|
|
Other non-interest
income
|
|
5,043
|
|
|
4,871
|
|
Total non-interest
income
|
|
(8,250)
|
|
|
(2,666)
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
25,023
|
|
|
24,303
|
|
Occupancy and
equipment
|
|
8,100
|
|
|
7,958
|
|
Merger reorganization
expense
|
|
1,745
|
|
|
1,784
|
|
Disposal of banking
centers and equipment
|
|
828
|
|
|
—
|
|
Other non-interest
expense
|
|
17,576
|
|
|
16,939
|
|
Total non-interest
expense
|
|
53,272
|
|
|
50,984
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
10,963
|
|
|
7,536
|
|
Income tax
expense
|
|
4,092
|
|
|
2,808
|
|
Net
income
|
$
|
6,871
|
|
$
|
4,728
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
$
|
0.20
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
RATIOS
|
|
|
|
|
|
|
Return on average
assets
|
|
0.41
|
%
|
|
0.31
|
%
|
Return on average
shareholders' equity
|
|
2.91
|
%
|
|
2.03
|
%
|
Net interest
margin
|
|
5.29
|
%
|
|
5.13
|
%
|
|
|
|
|
|
|
|
Average
assets
|
$
|
1,656,488
|
|
$
|
1,532,291
|
|
Average shareholders'
equity
|
$
|
236,151
|
|
$
|
233,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECT FINANCIAL
DATA
(unaudited)
|
December
31,
2013
|
|
December 31,
2012
|
|
|
(Amounts in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA
|
|
|
|
|
|
|
Total
assets
|
$
|
1,845,113
|
|
$
|
1,568,612
|
|
Gross
loans
|
|
1,133,980
|
|
|
913,168
|
|
Allowance for loan
losses
|
|
9,648
|
|
|
9,788
|
|
Net loans
|
|
1,124,571
|
|
|
903,600
|
|
Cash and cash
equivalents
|
|
198,221
|
|
|
207,117
|
|
Securities available
for sale
|
|
327,961
|
|
|
260,122
|
|
Other real estate
owned
|
|
18,580
|
|
|
19,529
|
|
Goodwill and other
intangible assets
|
|
67,798
|
|
|
61,767
|
|
FDIC loss share
receivable
|
|
29,331
|
|
|
48,568
|
|
Deposits
|
|
1,547,913
|
|
|
1,303,022
|
|
Non-interest bearing
deposits
|
|
526,311
|
|
|
426,968
|
|
Shareholders'
equity
|
|
230,108
|
|
|
236,690
|
|
|
|
|
|
|
|
|
SELECTED ASSET
QUALITY DATA, CAPITAL
AND ASSET QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/assets
|
|
12.47
|
%
|
|
15.09
|
%
|
Non-accrual and loans
past due greater than 90 days
loans/total loans
|
|
1.40
|
%
|
|
2.56
|
%
|
Allowance for loan
losses/total loans
|
|
0.85
|
%
|
|
1.07
|
%
|
Allowance for loan
losses/non-accrual loans
|
|
60.92
|
%
|
|
41.80
|
%
|
Leverage
ratio
|
|
9.66
|
%
|
|
11.44
|
%
|
Tier 1 risk based
capital
|
|
14.61
|
%
|
|
21.21
|
%
|
Total risk based
capital
|
|
15.47
|
%
|
|
22.43
|
%
|
Book value per
share
|
$
|
6.71
|
|
$
|
6.95
|
|
Number of shares of
outstanding common stock
|
|
34,288,841
|
|
|
34,070,270
|
|
SOURCE 1st United Bancorp, Inc.