1ST UNITED BANCORP INC (FLORIDA) 
By BOCA RATON, Fla., Feb. 10, 2014 /PRNewswire/ -- (NASDAQ Global Select: FUBC) --1(st) United Bancorp, Inc. ("1(st) 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.
1(st) 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, 1(st)
United had $12.1 million of net organic loan growth.
-- 1(st) 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December 2013 and withdrawn January 2014, offset by anticipated runoff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 1(st) 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, 1(st) 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,
1(st) 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, 1(st) United decided to close two branch locations, one
in South Florida and one on the west coast of Florida. 1(st) 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, 1(st) 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, 1(st) 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, 1(st) 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 1(st) United Bancorp, Inc.
1(st) United is a financial holding company headquartered in Boca Raton, Florida. 1(st) United's principal subsidiary, 1(st) 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. 1(st) 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. 1(st) 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 1(st) 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 1(st) 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 (Amounts in
DATA thousands, except
(unaudited) 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 20,203 16,589
losses
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 (Amounts in
DATA thousands, except
(unaudited) 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 72,485 61,186
losses
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 December 31, December 31,
(unaudited) 2013 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 1.40% 2.56%
loans/
total
loans
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.
