1st United (FUBC) Unit to Assume Assets, Deposits of Old Harbor Bank
Tweet
Share
E-mailGet Alerts FUBC Hot Sheet
Join SI Premium – FREE
1st United Bancorp, Inc. (Nasdaq: FUBC), announced today that its subsidiary, 1st United Bank, has assumed all of the deposits, other than depository organization-brokered deposits, and purchased substantially all of the assets of Old Harbor Bank of Florida, headquartered in Clearwater, Florida through a purchase and assumption agreement with the Federal Deposit Insurance Corporation. Old Harbor depositors will become depositors of 1st United and deposits will continue to be insured by the FDIC, so there is no reason for customers to change their banking relationship to retain their deposit insurance coverage. The branches of Old Harbor will reopen as branches of 1st United on Saturday, in the cases of the New Port Richey, Dunedin and Clearwater locations, and Monday for the remaining branches. This evening and over the weekend, depositors of Old Harbor can continue to access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
1st United will be purchasing substantially all of the assets of Old Harbor at a discount of $8.5 million. In this transaction, 1st United will be assuming approximately $217.8 million of deposits, and purchasing $154.3 million in loans and $1.3 million of other real estate from Old Harbor with the remaining assets primarily comprised of cash and marketable investment securities. The loans and other real estate purchased are covered by a loss sharing agreement with the FDIC. Under such agreement, the FDIC has agreed to cover 70% of the losses on the disposition of the loans and other real estate up to $49 million of losses.
Based on June 30, 2011 financials, the pro forma company will have assets of approximately $1.4 billion, net loans of $924 million and deposits of $1.1 billion.
1st United will be purchasing substantially all of the assets of Old Harbor at a discount of $8.5 million. In this transaction, 1st United will be assuming approximately $217.8 million of deposits, and purchasing $154.3 million in loans and $1.3 million of other real estate from Old Harbor with the remaining assets primarily comprised of cash and marketable investment securities. The loans and other real estate purchased are covered by a loss sharing agreement with the FDIC. Under such agreement, the FDIC has agreed to cover 70% of the losses on the disposition of the loans and other real estate up to $49 million of losses.
Based on June 30, 2011 financials, the pro forma company will have assets of approximately $1.4 billion, net loans of $924 million and deposits of $1.1 billion.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- IBM (IBM) Nears Acquisition of Software Provider HashiCorp (HCP) - WSJ
- Salesforce (CRM) talks to acquire Informatica (INFA) fizzle over price - WSJ
- Kroger (KR), Albertsons and C&S Wholesale Grocers Announce an Updated and Expanded Divestiture Plan
Create E-mail Alert Related Categories
Mergers and AcquisitionsRelated Entities
FDICSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
