1st United Bank takes over the failed Bank of Miami

By Palm Beach Business.com

BOCA RATON — The Bank of Miami, seized by the Comptroller of the Currency Friday, is now part of 1st United Bank, which agreed to buy most of the assets of the failed bank for $38 million.

1st United agreed to buy $442.3 million of the Bank of Miami’s $448.2 million in assets. It’s agreed to assume about  $286 million in deposits, $71 million in Federal Home Loan Bank borrowings. It’s also buying $308 million in loans and $8 million of other real estate, plus cash and marketable investment securities.  

The loans and other real estate bought are covered by a loss sharing agreement with the Federal Deposit Insurance Corp. in which the FDIC has agreed to cover 80 percent of the losses on the disposition of the loans and other real estate.

The Bank of Miami had three offices, in Coral Gables, Doral and Medley. 1st United had 15 offices throughout South Florida before the deal.

Based on Sept. 30 financials, 1st United will have assets of approximately $1.3 billion, net loans of $881 million and deposits of $1.1 billion.

The number of banks that have failed this year now totals 155, including 29 in Florida. Last year, 140 banks failed nationally.

A year ago, 1st United agreed to buy the Republic Federal Bank of Miami, a four-branch bank that had been seized by the FDIC