FBR Capital Maintains an 'Outperform' on 1st United Bancorp (FUBC); A Conversation with Management -- Key Takeaways
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Price: $8.85 --0%
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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FBR Capital maintains an 'Outperform' on 1st United Bancorp (NASDAQ: FUBC).
FBR analyst says, "Following 1st United's successful completion of a $32.5 million common equity raise on March 17, 2011, below we highlight takeaways from a recent discussion with management. The company decided to pursue what they considered to be a "measured amount" of permanent capital after regulators gave a tepid reaction to a contingent raise, particularly given the bank's smaller size. The company believes the amount of excess capital now on balance sheet is comparable in size to the most recent raise."
"We continue to believe that a majority of FUBC's excess capital will be used to fund acquisitions as credit quality trends appear to have stabilized...While Palm Beach, Broward and Miami-Dade counties are priorities for future acquisitions, management has interest in markets along the east coast of Florida up to Brevard County...Longer term, we believe the scarcity value of the franchise footprint and core deposit base will make for a coveted acquisition target though we estimate the current team will leverage the current capital base at the very least, before considering a sale."
For more ratings news on 1st United Bancorp click here and for the rating history of 1st United Bancorp click here.
Shares of 1st United Bancorp closed at $6.90 yesterday.
FBR analyst says, "Following 1st United's successful completion of a $32.5 million common equity raise on March 17, 2011, below we highlight takeaways from a recent discussion with management. The company decided to pursue what they considered to be a "measured amount" of permanent capital after regulators gave a tepid reaction to a contingent raise, particularly given the bank's smaller size. The company believes the amount of excess capital now on balance sheet is comparable in size to the most recent raise."
"We continue to believe that a majority of FUBC's excess capital will be used to fund acquisitions as credit quality trends appear to have stabilized...While Palm Beach, Broward and Miami-Dade counties are priorities for future acquisitions, management has interest in markets along the east coast of Florida up to Brevard County...Longer term, we believe the scarcity value of the franchise footprint and core deposit base will make for a coveted acquisition target though we estimate the current team will leverage the current capital base at the very least, before considering a sale."
For more ratings news on 1st United Bancorp click here and for the rating history of 1st United Bancorp click here.
Shares of 1st United Bancorp closed at $6.90 yesterday.
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