U.S. Century Bank today announced that is has closed on its $65 million recapitalization transaction, which included two lead investors, Patriot Financial Partners and Priam Capital, each of whom invested $20.5 million as part of the transaction. The balance of the funds was invested by current shareholders of U.S. Century Bank and other qualified investors. Of the amount invested, $12.3 million was paid by the investors to the U.S. Treasury to purchase the TARP preferred securities. As a result of this recapitalization transaction, U.S. Century Bank is in compliance with the capital requirements of the regulatory consent order as it now currently exceeds all regulatory capital ratios for a well-capitalized bank. Keefe, Bruyette & Woods, Inc. acted as sole placement agent on the transaction.
“When we hired Keefe, Bruyette & Woods last year to lead our effort to raise capital, we made our first attempt in two years to actively pursue a capital raise for U.S. Century Bank, and we received very positive interest from numerous investor groups,” said Carlos J. Dávila, President and CEO of U.S. Century Bank. “After reviewing each of our alternatives to raise capital, we entered into an investment agreement with Patriot Financial Partners and Priam Capital and subscription agreements with our other investors, because we believed that they were the right partners for the bank. We are now excited to announce that we have closed on the recapitalization of U.S. Century Bank. We firmly believe that this is the best outcome for our shareholders, employees, customers and community. This capital raise will allow us to grow the institution, with the ultimate goal of becoming the strongest independent, community bank in our market,” he added.
U.S. Century Bank Recapitalization/–2
“This capital allows us to continue to operate as an independent community bank– one of the few remaining in South Florida — since so many other local institutions are now under the control of foreign banks or foreign investors,” said R. Alexander Acosta, Chairman of the Board of Directors of U.S. Century Bank. “This affords us the opportunity to continue to offer our customers the same level of exceptional customer service to which they have grown accustomed and we thank them for their continued loyalty and support. We also recognize our dedicated employees who have proven their commitment to U.S. Century Bank,” he added.
In the last year, U.S. Century Bank made significant progress in three primary operational objectives: improving asset quality, controlling expenses and creating a strong culture of regulatory and consumer compliance. U.S. Century Bank also reignited its lending activity to local business owners and professionals, with loan activity at more than $100 million in new production. In addition, as part of its strategic growth plan, U.S. Century Bank recruited top-level banking executives to join its management team during 2014.
Established in 2002, U.S. Century Bank is one of the largest community banks headquartered in Miami, with assets close to $1 billion as of December 31, 2014. Through its network of 21 branch locations and its online banking platform, U.S. Century Bank offers its customers a wide range of financial products and services. U.S. Century Bank has received awards from numerous organizations for its philanthropic support and leadership, including the Beacon Council, Greater Miami Chamber of Commerce, South Florida Hispanic Chamber of Commerce, Latin Builders Association, March of Dimes and others. For more information or to find a U.S. Century Bank branch near you, call (305) 715-5200 or visit www.uscentury.com.