U.S. Century Bank in Doral, Fla., has gained a pair of new investors and lost two others in the latest chapter of the struggling bank's $50 million recapitalization plan.
The investment group hoping to revive the $949 million-asset U.S. Century has brought two new investors into the fold, according to a Monday report in the South Florida Business Journal. The Mas family, which runs the eponymous infrastructure engineering and construction firm MasTec, has agreed to join the group led by Miami real estate developers James Tate and Sergio Rok. Also on board are the founders of Navarro Discount Pharmacy, the nation's largest Hispanic-owned pharmacy chain.
"These two groups are very involved with the area's Latino and Hispanic communities," Tate said when reached by phone. "They will bring a new level of investment and integrity to the bank."
Meanwhile, Miami Dolphins owner Stephen Ross and former Belgium ambassador Paul Cejas have dropped out of the group, Tate said. Ross's exit "had nothing to do with the bank," according to Tate, who was unsure about the investor's motivations for leaving. Cejas left for personal reasons, he said.
Ross and Cejas did not immediately respond to calls seeking comment.
U.S. Century is one of the largest undercapitalized banks in the country. It had a Tier 1 leverage ratio of 5.14% and total risk-based capital of 7.14% as of June 30. The recapitalization was announced in May, along with plans to sell $95 million of nonperforming loans to third parties for an undisclosed price. The bank announced that it was renegotiating the recapitalization agreement in late July.
The bank will also negotiate with the Treasury Department to redeem $50.2 million of Troubled Asset Relief Program Shares under the recapitalization agreement.
U.S. Century has been selling loans in an effort to raise capital since its planned sale to C1 Bank in St. Petersburg, Fla., collapsed in December 2012. The merger was called off when the Treasury rejected a proposal for C1 to repay U.S. Century's Tarp debt at a 90% discount.