Fitch Initiates 'BB/B' IDR Ratings for U.S. Century Bank (Miami, FL)

CHICAGO--(Business Wire)--Fitch Ratings has assigned a 'BB' long-term Issuer Default Rating
(IDR) and a 'B' short-term IDR to U.S. Century Bank (USCB) based in
Miami, Florida. A full list of ratings is provided at the end of this
release. The Rating Outlook is Stable.

Fitch's ratings reflect USCB's consistent operating performance,
strong capital levels, and historically sound asset quality.
Conversely, limited revenue diversification, geographic concentration
in the Florida market, and a higher risk loan mix are constraining
factors.

USCB's performance to date has been solid. The bank benefited from
opening during a robust construction period in South Florida and has a
directorate with strong connections to local builders. Given the
recent downturn in the housing market and the weakened Florida real
estate market, Fitch expects earnings will decline from historical
levels, but remain within expectations for this rating category.

USCB's current capital levels are considered solid and supported
by numerous equity issuances and good earnings generation over the
last several years. The lack of common dividends to date has helped to
offset the significant asset growth.

Overall, the loan portfolio continues to exhibit sound asset
quality evident by the lack of any sizeable net charge-offs. Reserve
levels are considered adequate in light of the present loan mix and
historically low loss experience. The bank's credit risk management
function appears appropriate given good loan review coverage, a robust
loan loss reserve methodology, and sound risk management techniques,
including stress testing.

Somewhat offsetting these strengths, revenue diversity is limited
and mainly driven by spread income. Noninterest expense is expected to
increase due to some of the strategic initiatives USCB is currently
pursuing to broaden its product offerings, build its branch network,
and introduce new business lines.

The bank is dependent mostly on the economic conditions of the
South Florida market and thus susceptible to a local downturn,
particularly in real estate. USCB's loan mix is heavily weighted
toward construction and land development and thus exposes the bank to
significant risk in a deteriorating real estate environment. Fitch
also recognizes that USCB is exposed, albeit very modestly, to
sovereign risk in Latin America through its new correspondent banking
business. The development of this business bears close monitoring as
it introduces new credit and operational risks.

USCB, a Miami-based community bank, opened in October 2002 with
$22 million in capital. The bank has experienced significant growth to
date, and at Dec. 31, 2007, assets and loans totaled $1.3 billion and
$1.1 billion, respectively.

U.S. Century Bank's ratings are assigned by Fitch as follows, with
a Stable Outlook:

--Long-term Issuer Default Rating (IDR) 'BB';

--Long-term deposits 'BB+';

--Short-term IDR 'B';

--Short-term deposit 'B';

--Individual 'C';

--Support '5';

--Support floor 'NF'.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings
Julie Solar, +1-312-368-5472 (Chicago)
Doriana Gamboa, +1-212-908-0865 (New York)
Media Relations
Kenneth Reed, +1-212-908-0540 (New York)

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