Marine Bank parent company unloads Florida assets
Pewaukee-based CIB Marine Bancshares Inc., the beleaguered parent company of Marine Bank, has reached a definitive agreement to sell all of the branches, substantially all of the deposits and the majority of the loan portfolio of its Florida banking subsidiary, Citrus Bank N.A. The Florida operations will be sold to 1st United Bank, a subsidiary of Boca Raton, Fla.-based 1st United Bancorp Inc., at book value, plus a $7 million premium. The transaction, which is subject to certain conditions including approval by regulatory authorities, is expected to be completed within two to four months.
Following closing and receipt of regulatory approval, approximately $27 million in capital (consisting of the premium and certain retained loans) will be transferred to CIB Marine. CIB Marine Bancshares Inc., which lost $13.8 million in 2007, has incurred five consecutive years of multi-million dollar losses. "The CIB Marine board of directors is deeply committed to strengthening the company and its banking subsidiaries, creating shareholder value, and serving our communities," noted Stanley Calderon, chairman of the board of CIB Marine. "This sale, together with our ongoing efforts to reduce expenses and generate revenue, provides clear evidence of our determination to resolve critical issues and return value to our shareholders."