BOCA RATON, Fla., March 22, 2013 /PRNewswire/ -- 1 st United Bancorp, Inc. ("Bancorp") (NASDAQ Global Select: FUBC) and Enterprise Bancorp, Inc. ("EBI") announce the signing of a definitive agreement (the "Agreement") under which Bancorp and 1 st United Bank ("1 st United"), the wholly-owned subsidiary of Bancorp, will acquire EBI and its wholly owned subsidiary Enterprise Bank of Florida ("Enterprise Bank") for approximately $45 million total consideration. In accordance with the Agreement, the total consideration of approximately $45 million will be paid in $6 million in cash, $24 million consisting of all Enterprise Bank non-performing assets and certain other classified Enterprise Bank loans, and $15 million in impaired and below investment grade investments of Enterprise Bank. In accordance with the Agreement, the value of the non-cash consideration will be based on the carrying value of the assets prior to the closing. The transaction, unanimously approved by the board of directors of both companies, expands 1 st United's existing franchise in the northern Palm Beach County market place.
Established in 1990 and headquartered in North Palm Beach, Florida, Enterprise Bank operates three banking centers ( North Palm Beach, Jupiter, and Palm Beach Gardens). EBI has approximately $233.4 million in total assets, $170.3 in net loans, $171.4 million in total deposits, and $38 million in total shareholder equity at December 31, 2012. Enterprise Bank gives 1 st United continued expansion within the attractive Southeast Florida marketplace, providing opportunities for new loan and deposit growth. Upon completion of the acquisition, Bancorp will have approximately $1.75 billion in assets, $1.45 billion in total deposits and 25 full service banking offices.
Rudy Schupp, Bancorp's Chief Executive Officer, said, "Enterprise Bank has been a well-known bank where Hugh Jacobs, CEO, the lending and branch teams have done a terrific job in serving their communities. We are pleased about the opportunities this transaction offers and look forward to continuing to serve and grow our combined customer base. We believe this acquisition allows us to leverage our strong capital base and excess liquidity, giving rise to earnings accretion consistent with our business strategy. We are also excited about adding the Enterprise Bank staff, which includes seasoned lending professionals, to the 1 st United team."
Warren Orlando, Bancorp's Chairman, said, "We are very excited about the opportunities this transaction offers and look forward to continuing to serve and grow our customer base. Enterprise Bank's focus on quality customer service fits with 1 st United's philosophy."John Marino, Bancorp's President and Chief Financial Officer, stated that Bancorp currently estimates goodwill from the transaction of approximately $9 million, with an earn back currently estimated at approximately three years. Bancorp's capital, liquidity and balance sheet will remain strong immediately after this merger. Hugh Jacobs, Enterprise Bank's Chief Executive Officer said, "We're excited about this potential combination with 1 st United and expect it will enhance the level of service we're able to provide to our customers. Like us, 1 st United has a solid focus on getting to know their customers and serving their customers' individual financial needs. We're glad that our customers will continue to have such personalized service." Bancorp expects the merger to be immediately accretive to earnings per share after the integration of the companies and expects to continue to have strong capital ratios available for further growth. The merger is expected to be completed during the second half of 2013, after satisfaction of customary closing conditions, including regulatory approval and the approval by EBI shareholders.
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