BOCA RATON, Fla., April 18, 2014 /PRNewswire/ -- (NASDAQ
Global Select: FUBC) —1st United Bancorp, Inc.
("1st United") reported net income of $2.7 million ($0.08
per share) for the three months ended March
31, 2014 which is a 66% increase compared to net income of
$1.6 million ($0.05 per share) for the three months ended
March 31, 2013.
Highlights for the three months ended March 31, 2014:
Financial Condition
- Total assets at March 31, 2014
were $1.74 billion, as compared to
approximately $1.85 billion at
December 31, 2013. During the
quarter ended March 31, 2014,
1st United increased total loans by $25.1 million comprised of loan originations and
advances of $79.4 million and
payments, payoffs and resolutions of $54.3
million.
- Total deposits at March 31, 2014
were $1.43 billion, as compared to
$1.55 billion at December 31, 2013 primarily a result of a
customer deposit of $128.0 million
received in December 2013 and
withdrawn in January 2014 as well as
normal customer activity. Non-interest bearing deposits were
approximately 38% of total deposits at March
31, 2014 as compared to 34% of total deposits at
December 31, 2013.
- Total risk-based capital ratio, Tier 1 capital ratio, and
leverage ratio for 1st United at March 31, 2014 were 15.58%, 14.70% and 10.09%,
respectively, and exceeded all regulatory requirements for "well
capitalized."
Asset Quality
- Total non-performing assets were $31.5
million (1.81% of total assets) at March 31, 2014 representing a $2.9 million decrease as compared to the
December 31, 2013 balance of
$34.4 million (1.87% of total
assets).
- Excluding assets covered by FDIC loss share agreements,
non-performing assets were $15.1
million (0.87% of total assets) at March 31, 2014.
- Included in the $31.5 million in
non-performing assets at March 31,
2014 was $16.4 million of
assets covered under loss share agreements as compared to
$17.6 million of assets covered under
loss share agreement at December 31,
2013.
- Classified loans (substandard and special mention) decreased by
$3.8 million from $59.5 million at December
31, 2013 to $55.7 million at
March 31, 2014. 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.
Operating Results
Net income of $2.7 million for the
three months ended March 31, 2014 was
impacted by:
- The net interest margin was 4.97% for the quarter ended
March 31, 2014. The margin was
positively impacted by increased cash flows of assets covered under
loss share agreements due to resolutions, including sales, payoffs
and transfers to other real estate owned of $2.8 million or 75 basis points. Exclusive of
this, 1st United's margin would have been approximately 4.22%.
- The provision for loan losses was $333,000 for the quarter ended March 31, 2014.
- Net gains on sales of other real estate of $213,000 were realized for the quarter ended
March 31, 2014, with gains associated
with the sale of assets covered under loss share agreements
$306,000 during the
quarter.
- A charge of approximately $2.7
million was recorded during the quarter related to the
increased cash flows (which resulted in approximately $2.8 million of income during the quarter on
resolved loans and $306,000 in gains
on the sale of other real estate owned) on the resolution,
including sales, payoffs, transfers to other real estate owned and
sale of other real estate owned, of assets covered under FDIC loss
sharing agreements, which reduced the FDIC loss share
receivable.
- Inclusive within non-interest expense were write-downs of
$244,000 of other real estate owned
to their fair values due to updated appraisals.
Management Comments:
"We are pleased with the strength and quality of our
$1.74 billion asset enterprise at
March 31, 2014," 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 $2.7 million
for the quarter ended March 31,
2014. Our margin continues to remain strong and is driven by
our core deposits and low cost of funds. We had approximately
38% of our total deposits comprised of non-interest bearing
deposits at March 31, 2014. Our new
loan pipeline remains strong. We continued our trend of net
organic growth for the quarter and are hopeful this trend will
continue throughout 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 ended March 31, 2014, with reductions of $1.8 million. Our non-loss share
non-performing asset ratio was reduced to 0.87% of total assets as
compared to 0.91% at December 31,
2013. 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 Daylight Savings Time on
April 21, 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 April 21,
2014 until May 4, 2014 by
dialing (800) 839-1169 (domestic), using the passcode 1423.
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 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 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 and ability 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.
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For the three month
period ended
March 31,
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|
|
2014
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|
2013
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INCOME STATEMENT
DATA
(unaudited)
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(Amounts in
thousands, except per
share
data)
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|
|
|
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Interest
income
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$
|
19,538
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|
$
|
17,720
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|
Interest
expense
|
|
|
858
|
|
|
991
|
|
Net interest
income
|
|
|
18,680
|
|
|
16,729
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|
Provision for loan
losses
|
|
|
333
|
|
|
650
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|
Net interest income
after provision for loan
losses
|
|
|
18,347
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|
|
16,079
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|
|
|
|
|
|
|
|
|
Net gains on sales of
OREO
|
|
|
213
|
|
|
441
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|
Net gains on sales of
securities
|
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|
—
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|
|
122
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Adjustment to FDIC
loss share receivable
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|
(2,648)
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(2,820)
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|
Other non-interest
income
|
|
|
1,189
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|
|
1,269
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|
Total non-interest
income
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|
(1,246)
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(988)
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|
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|
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Salaries and employee
benefits
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|
|
6,556
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|
|
6,199
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Occupancy and
equipment
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2,021
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|
|
1,969
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Other non-interest
expense
|
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|
4,323
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|
|
4,308
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|
Total non-interest
expense
|
|
|
12,900
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|
|
12,476
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|
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|
|
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Income before
taxes
|
|
|
4,201
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|
|
2,615
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|
Income tax
expense
|
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|
1,515
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|
|
995
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Net
income
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$
|
2,686
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|
$
|
1,620
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PER SHARE
DATA
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|
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Basic and diluted
earnings per share
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$
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0.08
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$
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0.05
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SELECTED OPERATING
RATIOS
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Return on average
assets
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0.63
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%
|
|
0.42
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%
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Return on average
shareholders' equity
|
|
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4.64
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%
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|
2.76
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%
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Net interest
margin
|
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4.97
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%
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5.09
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%
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Average
assets
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$
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1,740,556
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$
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1,551,341
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Average shareholders'
equity
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|
$
|
234,988
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$
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237,703
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|
|
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SELECT FINANCIAL
DATA
(unaudited)
|
March 31,
2014
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December
31,
2013
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(Amounts in
thousands, except per share data)
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|
|
|
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BALANCE SHEET
DATA
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Total
assets
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$
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1,738,395
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$
|
1,845,113
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Gross
loans
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|
1,159,066
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1,133,980
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Allowance for loan
losses
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|
10,033
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|
9,648
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Net loans
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1,149,316
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1,124,571
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Cash and cash
equivalents
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78,314
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198,221
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Securities available
for sale
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323,828
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327,961
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Other real estate
owned
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16,238
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|
18,580
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Goodwill and other
intangible assets
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67,603
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|
67,798
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FDIC loss share
receivable
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25,951
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29,331
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Deposits
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|
1,429,381
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1,547,913
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Non-interest bearing
deposits
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|
539,640
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|
526,311
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Shareholders'
equity
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|
235,241
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|
|
230,108
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SELECTED ASSET
QUALITY DATA, CAPITAL AND
ASSET
QUALITY RATIOS
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Equity/assets
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|
13.53
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%
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|
12.47
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%
|
Non-accrual and loans
past due greater than 90 days
loans/total loans
|
|
1.32
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%
|
|
1.40
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%
|
Allowance for loan
losses/total loans
|
|
0.87
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%
|
|
0.85
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%
|
Allowance for loan
losses/non-accrual loans
|
|
67.20
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%
|
|
60.92
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%
|
Leverage
ratio
|
|
10.09
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%
|
|
9.66
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%
|
Tier 1 risk based
capital
|
|
14.70
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%
|
|
14.61
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%
|
Total risk based
capital
|
|
15.58
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%
|
|
15.47
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%
|
Book value per
share
|
$
|
6.82
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|
$
|
6.71
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Number of shares of
outstanding common stock
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34,489,547
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34,288,841
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SOURCE 1st United Bancorp, Inc.