CIB Marine Bancshares Inc. in Pewaukee, Wis., announced an agreement to sell the branches, deposits, and a portion of the loans of one of its subsidiary banks, the $125 million-asset Citrus Bank in Vero Beach, Fla., to 1st United Bancorp Inc. in Boca Raton, Fla.
John P. Hickey Jr., CIB's president and chief executive, said in a brief interview Monday that the sale price has not been finalized but that it could be "up to" $27 million. The sale was announced late Thursday and is expected to close in the third quarter.
The $560 million-asset 1st United Bancorp would get six branches, $45 million in loans, and the bulk of the Citrus' $103 million of deposits.
CIB, a three-bank holding company with $1 billion of assets, is under pressure to raise money to pay what is expected to be a $39.7 million obligation on trust-preferred securities by February.
Last week the company said it lost $13.8 million in 2007, its fifth straight unprofitable year.
In a letter to shareholders, CIB said it was asking regulators for permission to transfer $25 million of capital from its other subsidiaries — Marine Bank in Wauwatosa, Wis., and Central Illinois Bank in Champaign. However, current market conditions may preclude those transfers, the company said.
CIB also said it had hired an investment banking firm in November to look at other capital-raising options, including selling the company. CIB is also considering consolidating its charters, selling branches, and pursuing opportunities with lenders or private-equity investors to refinance the trust-preferred securities.
