1st United Bank takes over Miami's Republic Federal Bank

By Palm Beach Business.com

BOCA RATON — 1st United Bancorp Inc. said Friday that it has assumed all of the deposits of Republic Federal Bank of Miami through a with the Federal Deposit Insurance Corp.

Republic depositors will become depositors of 1st United and deposits will continue to be insured by the FDIC. The four branches of Republic will reopen on Monday as branches of 1st United; customers of Republic will continue to have access to their money through the weekend. The deal gives 1st 16 branches in South Florida,  and expands its presence in Miami-Dade County.

The Boca Raton-based bank holding company will buy from the FDIC assets of Republic at a discount of $37.7 million and will assume all deposits at a premium of 1 percent,  or about

1st United will be receiving about $350 million of deposits, $75 million in FHLB borrowings and $231 million in loans from Republic, with the remaining assets primarily cash and securities. The loans bought are covered by a loss-sharing agreement with the FDIC.

Under such agreement, the FDIC has agreed to pick up 80 percent of the losses on the disposition of the loans up to $36 million, and 95 percent of losses above that. The transaction excludes most non-performing loans, other real estate owned, and acquisition, development and construction loans, residential and commercial land loans, export-import bank loans and loans to foreign nationals.

"1st United is excited to welcome the customers of Republic Federal and we want to assure them that their deposits are safe, FDIC insured, and readily accessible," 1st United CEO  Rudy Schupp said. "Customers will be able to conduct business as usual at their existing branch locations with their familiar banking associates."

John Marino, President and Chief Financial Officer of 1st United added, "1st United has a healthy balance sheet, supported by strong capital and liquidity levels. These factors combined with increased access to more products and services at branches throughout South Florida will enable us to better serve all of the banking needs of former Republic customers, including private banking customers."

Based on September 30, financial statements of the two banks,  1st United will have assets of $1.1 billion, loans of $732 million and deposits of $810 million. By market capitalization, 1st United is the third largest publicly traded bank headquartered in Florida.

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