C1 Bank's purchase of U.S. Century Bank in Florida is reportedly being delayed because of difficulty navigating the seller's exit from the Troubled Asset Relief Program.
The Treasury Department has rejected a proposal for C1 Bank to pay U.S. Century's Tarp funds at a discount, according to Tuesday's online edition of the South Florida Business Journal.
C1 Bank in St. Petersburg, Fla., agreed to buy the $1.3 billion-asset U.S. Century in Doral in August and pay a portion of its $50 million in Tarp funds. The $900 million-asset C1 Bank planned to inject $100 million in capital into U.S. Century, helping mend one of the state's biggest distressed banks, but the buyer also wanted a 90% discount for repaying Tarp funds. The Treasury takes a total loss in the event that an outstanding TARP bank fails.
U.S. Century amended its pitch, requesting an 87% discount that would use some of its proceeds from the sale to C1 Bank, according to the South Florida Business Journal. The seller's shareholders were slated to vote on the deal last week but the date for the meeting was pushed back to mid-November.
A spokesman U.S. Century told American Banker last week that there was "an issue pending" and that Hurricane Sandy had prevented the bank's advisor in New York from traveling to Florida.
U.S. Century's management has said that the deal is still on track to close by Dec. 31.