1st United Bancorp (FUBC) has completed its purchase of Enterprise Bancorp in North Palm Beach, Fla.
1st United, of Boca Raton, paid $5 million in cash to Enterprise's minority shareholders and transferred Enterprise's troubled assets, worth $40.8 million when the deal closed, to its majority owner. The problem assets include $22.2 million in nonperforming and classified loans and $18.6 million in securities that are impaired or below investment grade.
1st United acquired $160 million in loans and approximately $175 million in deposits in the transaction. It will add one branch, giving it 23 branches in southeast and central Florida.
1st United estimates that the deal will provide $9 million of goodwill and be earned back over three years, and expects the integration costs to total $1.8 million.
"The quality of the customers, loans and deposits acquired complements and adds to our existing strong base," said 1st United's CEO, Rudy Schupp. "We believe this acquisition allows us to leverage some of our excess capital and liquidity, giving rise to earnings accretion consistent with our business strategy."
1st United has been buying failed banks in South Florida since 2009. It bought Old Harbor and Anderen Financial in 2011.