1st United Bancorp (FUBC) is seeking to expand in Florida.
The Boca Raton company announced Friday it has agreed to buy Enterprise Bancorp in North Palm Beach.
1st United has assets of $1.6 billion; Enterprise has $233 million of assets and three branches in Palm Beach County.
The deal, with an estimated value of $45 million, is complex. 1st United would pay $6 million in cash, and Enterprise shareholders would receive problem assets currently worth $39 million, the companies said in a press release. The final price would depend on the value of the assets when the deal closes.
The problem assets include $24 million in nonperforming and classified loans and about $15 million in impaired and below-investment grade assets that belong to Enterprise, the press release said.
The deal is expected to be completed in the second half of the year; regulatory and shareholder approvals are required.
Enterprise had a Tier 1 leverage ratio of 15.37% and a total risk-based capital ratio of 17% at Dec. 31; its nonperformers made up 7.81% of assets.
1st United estimates that the deal would provide $9 million in goodwill and be earned back in three years.
"This acquisition allows us to leverage our strong capital base and excess liquidity, giving rise to earnings accretion consistent with our business strategy," 1st United Bancorp Chief Executive Rudy Schupp said in the release.
1st United has been buying failed banks in South Florida since 2009. It bought Old Harbor and Anderen Financial in 2011. It would have 25 branches with the addition of Enterprise.