1st United Bancorp, Inc. Announces Increased Earnings for the Year ended December 31, 2012

Fri Feb 8, 2013 4:15pm EST

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BOCA RATON, Fla.,  Feb. 8, 2013  /PRNewswire/ -- (NASDAQ Global Select: FUBC)
-1st  United Bancorp, Inc. ("1st  United") reported net income of  $4.7 million 
($0.14  per share) for the year ended  December 31, 2012  as compared to net
income of  $3.7 million  ($0.13  per share) for the year ended  December 31,
2011.  

1st United had net income of  $1.7 million  ($0.05  per share) for the three
months ended  December 31, 2012, compared to net income of  $857,000  ($0.03 
per share) for the three months ended  December 31, 2011.

Highlights for the three months and year ended  December 31, 2012:

Financial Condition

* Total assets at  December 31, 2012  grew by  $145.3 million  to  $1.57
billion, as compared to approximately  $1.42 billion  at  December 31, 2011. 
The increase was substantially a result of the merger of Anderen Financial, Inc.
("Anderen") on  April 1, 2012  which added  $132.0 million  in loans,  $37.7
million  in securities,  $161.0 million  in deposits, and  $19.1 million  in
capital during the year.  1st  United recorded goodwill of approximately  $5.8
million  as a result of the merger.  
* Total deposits at  December 31, 2012  were  $1.30 billion  as compared to 
$1.18 billion  at  December 31, 2011.  The increase was primarily due to the 
$161.0 million  of deposits added from the Anderen merger.  The remaining change
was due to ongoing development efforts offset by expected run-off of acquired
high cost deposits.  Non-interest bearing deposits were approximately 33% of
total deposits at  December 31, 2012, as compared to 28% at  December 31, 2011. 

* Total risk-based capital ratio, Tier 1 capital ratio, and leverage ratio for
1st  United at  December 31, 2012  were 22.46%, 21.24% and 11.45%, respectively,
and exceeded all regulatory requirements for "well capitalized."  
* In  December 2012, the Company declared and paid a special dividend of  $0.10 
per share to holders of common shares as of  December 21, 2012.

Asset Quality

* Total non-performing assets were  $42.9 million  (2.74% of total assets) at 
December 31, 2012  representing a  $14.0 million  reduction as compared to the 
December 31, 2011  balance of  $57.0 million.  
* Excluding assets covered by FDIC loss share agreements, non-performing assets
decreased by approximately  $162,000  to  $18.3 million  (1.17% of total assets)
as of  December 31, 2012  as compared to  $18.5 million  (1.20% of total assets)
at  September 30, 2012.    
* Included in the  $42.9 million  in non-performing assets at  December 31, 2012
 was  $24.6 million  of assets covered under FDIC loss sharing agreement for
which approximately  $1.3 million  are assets under agreements to sell at no
additional loss which are anticipated closing during the first quarter of 2013. 

* Classified loans (substandard and special mention) decreased by  $3.1 million 
from  $94.4 million  at  September 30, 2012  to  $91.3 million  at  December 31,
2012.  Since  December 31, 2011, total classified assets have decreased by 
$35.7 million.

Operating Results - Quarter Ending  December 31, 2012



Net income was  $1.7 million  for the quarter ended  December 31, 2012:

* The net interest margin was 5.21% for the quarter ended  December 31, 2012. 
The margin was positively impacted by the resolution, including sales, payoffs
and transfers to other real estate owned, as well as changes in cash flows, of
assets covered under FDIC loss sharing agreements by  $3.4 million  or 101 basis
points. Exclusive of this, 1st United's margin would have been approximately
4.20%.  
* The provision for loan losses was  $900,000  for the quarter ended  December
31, 2012.   
* Net gains on the sale of other real estate of  $305,000  were realized for the
quarter ended  December 31, 2012.   
* A charge of approximately  $3.6 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  $297,000  related to other real
estate, which reduced the FDIC loss share receivable.  
* A reduction in non-interest expense of  $236,000  to  $12.2 million  from 
$12.4 million  for the quarter ending  September 30, 2012  as the Company
continues to fulfill its commitment to increase efficiencies.

Operating Results - Year Ending  December 31, 2012



Net income was  $4.7 million  for the year ended  December 31, 2012:

* The net interest margin was 5.13% for the year ended  December 31, 2012. 
Inclusive within the margin for the year ended  December 31, 2012  was  $10.7
million  or 81 basis points related to the resolutions, including sales, payoffs
and transfers to other real estate owned, as well as changes in cash flows of
assets covered under FDIC loss sharing agreement.  Exclusive of this, 1st
United's margin would have been approximately 4.32%.  
* The provision for loan losses was  $6.35 million  for the year ended  December
31, 2012.  
* Net gains on the sale of other real estate of  $3.3 million  were realized for
year ended  December 31, 2012.  .  
* Gains on the sale of securities of  $1.7 million  were realized for the year
ended  December 31, 2012.  
* A charge of  $13.7 million, which was recorded during the year ended December
31, 2012 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  $3.2 million  related to
other real estate, which reduced the FDIC loss share receivable.  
* Merger reorganization expenses of  $1.8 million  were incurred with respect to
the merger and integration of Anderen during the second quarter 2012 and the
integration of Old Harbor during the first quarter 2012.  Merger reorganization
expenses primarily included personnel, information technology and facilities
costs.

Management Comments:

"We are pleased with the strength and quality of our  $1.6 billion  asset
enterprise at  December 31, 2012," said  Warren S. Orlando, Chairman.  "We
currently have 22 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 have improved to  $1.7 million  for the quarter ended  December
31, 2012.  Our margin continues to remain strong and is driven by our core
deposits and low cost of funds.  We had approximately 33% of our total deposits
comprised of non-interest bearing deposits at  December 31, 2012.  Our loan
portfolio, though slightly down from last quarter, is beginning to stabilize
despite continued strong payoffs and resolutions of loans under FDIC loss
sharing agreements.  Our new loan pipeline remains strong as we continue to make
progress towards net organic loan growth" said  Rudy E. Schupp, Chief Executive
Officer.  "We have had and continue to see increased 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, with a reduction of  $162,000  since 
September 30, 2012.  Our non-loss share non-performing asset ratio was reduced
to 1.17% of total assets as compared to 1.20% at  September 30, 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 quarterly results at  3:00 p.m. Eastern Standard Time  on  February 11,
2013.  The number for the conference call is (800) 857-9849 (Passcode: 3183056).
 A replay of the conference call will be available beginning the afternoon of
until  February 25, 2013  by dialing 800-934-9450 (domestic), using the passcode
56215.  



About 1st  United Bancorp, Inc.  



1st  United is a financial holding company headquartered in  Boca Raton, Florida
 with executive offices and operations located in  West Palm Beach, Florida. 
1st  United's principal subsidiary, 1st  United Bank, is a  Florida  chartered
commercial bank, which now operates 22 branches, with 15 in  Southeast Florida,
including  Brevard,  Broward,  Indian River,  Miami-Dade, and  Palm Beach 
Counties and 7 branches in  Central Florida  including  Hillsborough,  Orange, 
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) 362-3431.  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,  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, including the
FDIC's need to increase Deposit Insurance Fund assessments; 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                                 
                                                        
December 31,                                                    
                                                        2012                                   2011                    
 INCOME STATEMENT DATA                                          (Amounts in thousands, except                           
 
(unaudited)                                                   
per share data)                                        
 Interest income                                        $       18,612              $                  15,836        
 Interest expense                                               1,123                                  1,585         
 Net interest income                                            17,489                                 14,251        
 Provision for loan losses                                      900                                    2,200         
 Net interest income after provision for loan losses            16,589                                 12,051        
                                                                                                                     
 Net gains (losses) on sales of OREO                            305                                    (11)          
 Adjustment to FDIC loss share receivable                       (3,221)                                (1,281)       
 Other non-interest income                                      1,248                                  1,759         
 Total non-interest income                                      (1,668)                                467           
                                                                                                                     
 Salaries and employee benefits                                 6,199                                  5,149         
 Occupancy and equipment                                        1,936                                  1,869         
 Other non-interest expense                                     4,058                                  4,111         
 Total non-interest expense                                     12,193                                 11,129        
                                                                                                                     
 Income before taxes                                            2,728                                  1,389         
 Income tax expense                                             1,001                                  532           
 Net income                                             $       1,727               $                  857           
                                                                                                                     
 PER SHARE DATA                                                                                                      
 Basic and diluted earnings per share                   $       0.05                $                  0.03          
                                                                                                                     
 SELECTED OPERATING RATIOS                                                                                           
 Return on average assets                                       0.44       %                           0.24       %  
 Return on average shareholders' equity                         2.85       %                           1.59       %  
 Net interest margin                                            5.21       %                           4.55       %  
                                                                                                                     
 Average assets                                         $       1,553,736           $                  1,390,686     
 Average shareholders' equity                           $       240,278             $                  214,245       
                                                                                                                     


                                                        For the year ended December 31,                                  
                                                        2012                                   2011                    
 INCOME STATEMENT DATA                                          (Amounts in thousands, except                           
 
(unaudited)                                                   
per share data)                                        
 Interest income                                        $       72,849              $                  60,409        
 Interest expense                                               5,313                                  6,349         
 Net interest income                                            67,536                                 54,060        
 Provision for loan losses                                      6,350                                  7,000         
 Net interest income after provision for loan losses            61,186                                 47,060        
                                                                                                                     
 Net gains on the sale of securities                            1,673                                  364           
 Net gains (losses) on sales of OREO                            3,278                                  (264)         
 Adjustment to FDIC loss share receivable                       (12,488)                               (3,236)       
 Other non-interest income                                      4,871                                  4,875         
 Total non-interest income                                      (2,666)                                1,739         
                                                                                                                     
 Salaries and employee benefits                                 24,303                                 20,186        
 Occupancy and equipment                                        7,958                                  7,732         
 Merger reorganization expense                                  1,784                                  1,076         
 Other non-interest expense                                     16,939                                 13,851        
 Total non-interest expense                                     50,984                                 42,845        
                                                                                                                     
 Income before taxes                                            7,536                                  5,954         
 Income tax expense                                             2,808                                  2,282         
 Net income                                             $       4,728               $                  3,672         
                                                                                                                     
 PER SHARE DATA                                                                                                      
 Basic and diluted earnings per share                   $       0.14                $                  0.13          
                                                                                                                     
 SELECTED OPERATING RATIOS                                                                                           
 Return on average assets                                       0.31       %                           0.28       %  
 Return on average shareholders' equity                         2.03       %                           1.80       %  
 Net interest margin                                            5.13       %                           4.76       %  
                                                                                                                     
 Average assets                                         $       1,532,291           $                  1,303,249     
 Average shareholders' equity                           $       233,112             $                  203,861       
                                                                                                                     


 SELECT FINANCIAL DATA                                                    December 31,   2012                  December 31, 2011           
 
          (unaudited)                                                                                                                    
                                                                          (Amounts in thousands, except per share data)                      
                                                                                                                                         
 BALANCE SHEET DATA                                                                                                                      
 Total assets                                                             $           1,566,779               $           1,421,487      
 Gross loans                                                                          913,541                             879,536        
 Allowance for loan losses                                                            9,788                               12,836         
 Net loans                                                                            903,973                             866,753        
 Cash and cash equivalents                                                            207,117                             165,424        
 Securities available for sale                                                        260,122                             201,722        
 Other real estate owned                                                              19,529                              13,462         
 Goodwill and other intangible assets                                                 61,526                              55,765         
 FDIC loss share receivable                                                           46,735                              72,895         
 Deposits                                                                             1,303,022                           1,181,708      
 Non-interest bearing deposits                                                        426,968                             329,283        
 Shareholders' equity                                                                 236,690                             215,351        
                                                                                                                                         
 SELECTED ASSET QUALITY DATA, CAPITAL                                                                                                    
 
  AND ASSET QUALITY RATIOS                                                                                                             
                                                                                                                                         
 Equity/assets                                                                        15.11       %                       15.15       %  
 Non-accrual and loans past due greater than 90 days loans/total loans                2.56        %                       4.94        %  
 Allowance for loan losses/total loans                                                1.07        %                       1.46        %  
 Allowance for loan losses/non-accrual loans                                          45.94       %                       29.97       %  
 Leverage ratio                                                                       11.45       %                       11.75       %  
 Tier 1 risk based capital                                                            21.24       %                       23.90       %  
 Total risk based capital                                                             22.46       %                       25.16       %  
 Book value per share                                                     $           6.95                    $           7.04           
 Number of shares of outstanding common stock                                         34,070,270                          30,569,032     


SOURCE  1st United Bancorp, Inc.


Rudy E. Schupp, Chief Executive Officer, +1-561-616-3029, or John Marino,
President and Chief Financial Officer, +1-561-616-3046

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