1 st United Bancorp, Inc. (“1 st United”) (Nasdaq:FUBC), announced today that its subsidiary, 1 st 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 (“Old Harbor”) headquartered in Clearwater, Florida through a purchase and assumption agreement with the Federal Deposit Insurance Corporation (“FDIC”). Old Harbor depositors will become depositors of 1 st 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 1 st 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.
1 st United will be purchasing substantially all of the assets of Old Harbor at a discount of $8.5 million. In this transaction, 1 st 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.
"1 st United is excited to welcome the customers of Old Harbor and we want to assure them that their deposits are safe, FDIC insured, and readily accessible,” said Rudy Schupp, Chief Executive Officer of 1 st United. "Customers will be able to conduct business as usual at their existing branch locations with their familiar banking associates. We are excited to be back in this legacy market and look forward to lending and serving the community.”
John Marino, President and Chief Financial Officer of 1 st United added, “1 st United has a healthy balance sheet, supported by strong capital and liquidity levels. These factors combined with increased access to more products and services will enable us to better serve all of the banking needs of former Old Harbor customers.”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.