As per the terms of the deal, the total consideration of approximately $45m will be paid in $6m as cash, $24m will comprise all Enterprise Bank’s non-performing assets and certain other classified loans, and $15m in impaired and below investment grade investments of the bank.
The deal, which has been approved by the board of directors of both companies, will expand 1st United’s existing franchise in the northern Palm Beach County in southern Florida and provide opportunities for new loan and deposit growth.
Following completion of the transaction, Bancorp will own almost $1.75bn in assets, $1.45bn in total deposits and 25 full service bank branches.
Commenting on the deal, 1st United Bancorp chief executive officer Rudy Schupp said, "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."
Bancorp’s president and chief financial officer John Marino said that the bank currently estimates goodwill from the transaction of approximately $9m, with an earn back estimated at approximately three years.
Bancorp’s capital, liquidity and balance sheet will remain strong immediately after this merger, Marino added.
The merger is likely to be completed in the second half of 2013, after meeting customary closing conditions, including regulatory approval and EBI shareholders’ approval.
Set up in 1990 and headquartered in North Palm Beach, Florida, Enterprise Bank manages three banking centers including North Palm Beach, Jupiter, and Palm Beach Gardens.
As of 31 December 2012, EBI had nearly $233.4m in total assets, $170.3m in net loans, $171.4m in total deposits, and $38m in total shareholder equity.
Florida chartered commercial lender, 1st United Bank now manages 22 branches, 15 in southeast Florida, including Brevard, Broward, Indian River, Miami-Dade, and Palm Beach Counties, and seven branches in Central Florida including Hillsborough, Orange, Pasco and Pinellas counties.
Headquartered in North Palm Beach, Florida, Enterprise Bank provides banking and financial services to small and middle-market businesses and individuals through its community focused approach.
