1st United Bancorp, Inc. Closes on the Purchase of Citrus Bank Branches and Loans
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1st United Bancorp, Inc. (”1st United”) announced today that it has closed on the purchase of the branch network, substantially all of the deposits and much of the loan portfolio of Citrus Bank, headquartered in Vero Beach, Florida. Citrus Bank is the wholly-owned subsidiary of Citrus Financial Services, Inc. which is owned by CIB Marine Bancshares, Inc. headquartered in Pewaukee, Wisconsin.
1st United acquired a 6 branch network with offices located in Vero Beach, Sebastian, Barefoot Bay, Boca Raton, North Miami Beach and Coral Gables and assumed the deposits serviced at these offices totaling approximately $90 million. 1st United also acquired approximately $44 million in loans. On or about October 31, 2008, 1st United plans to close Citrus Bank’s Boca Raton, North Miami Beach and Coral Gables locations and service these customers out of existing nearby 1st United branches. 1st United paid the purchase price with $3 million in cash and issued 136,364 shares of 1st United common stock. In addition, 1st United will make potential earn-out payments in the aggregate of $1.5 million payable over two years based on the retention of the assumed deposits in the transaction.
“We are very excited to expand our franchise to Vero Beach, Sebastian in Indian River County and Barefoot Bay in Brevard County and at the same time increase the base of customers at our existing Boca Raton and North Miami banking centers,” said Rudy Schupp, Chief Executive Officer of 1st United. “We are very familiar with these communities and look forward to making available our products and services to the Citrus Bank customers as we work to further expand these markets,” said Schupp. “Citrus Bank is a high-quality bank with terrific employees whose brand of customer service is consistent with 1st United’s mission to put the customer 1st.”
“The employees of Citrus in each of their markets have done a terrific job of providing quality customer service and we look forward to joining forces with their team as they become part of 1st United,” added Bill Spute, Chief Banking Officer of 1st United Bank.
In addition to the newly acquired branches, 1st United Bank, headquartered in Boca Raton, Florida, operates 11 branches: 4 in Palm Beach County, 6 in Broward County and 1 in North Miami Beach. At June 30, 2008, 1st United had assets of approximately $563 million, loans of $440 million, deposits of $398 million and capital of approximately $88 million.
Source: 1st United Bancorp, Inc.