1st United Bancorp Seals Second FDIC-Assisted Deal

Sterne Agee has published a research report on 1st United Bancorp FUBC after the company's completion of its second FDIC-assisted deal. In the report, Sterne Agee writes "FUBC landed its second FDIC-assisted deal for The Bank of Miami, N.A., 53 weeks after its assisted deal for Republic Federal Bank. FUBC picked up three branches, $448 million of assets (prior to FV), including loans of $308 million and OREO of $8 million, $286 million of deposits, and FHLB advances of $71 million. FUBC picked up the assets at a discount of $38 million; no deposit premium was paid. Based on our modeling, we estimate that FUBC will book a bargain purchase gain of $5.5 million from the transaction, assuming a fair value mark on loans and OREO of 35% (i.e., loans of $202 million at fair value versus $308 million). The FDIC will cover 80% of the losses on covered assets of $313.5 million." Sterne Agee maintains its Buy rating and $7.50 price target. 1st United Bancorp closed Friday at $6.31.