HOUSTON, March 15, 2010 (GLOBE NEWSWIRE) -- Encore Bancshares, Inc. (Nasdaq:EBTX) today announced that its subsidiary, Encore Bank, N.A., has executed two separate purchase and assumption agreements to sell its Florida operations.
The first agreement is with Ovation Holdings, Inc. and its proposed subsidiary bank, National Bank of Southwest Florida, headquartered in Port Charlotte, Florida ("NBSWF"). Ovation is owned by an investor group led by A. Malachi Mixon, III of Cleveland, Ohio and it has entered into a separate agreement to purchase NBSWF.
Under the terms of the agreement, NBSWF, following its acquisition by Ovation, is to assume approximately $171.6 million of deposits associated with our four offices located in Naples (two), Ft. Myers, and Sun City Center, Florida. NBSWF is also expected to purchase approximately $86.2 million of loans as well as other assets, including premises and equipment.
The second agreement is with HomeBanc National Association, headquartered in Lake Mary, Florida. Under the terms of this agreement, HomeBanc is to assume approximately $59.7 million of deposits associated with our two offices in Clearwater and Belleair Bluffs, Florida.
"We believe these transactions are beneficial to all parties," said James S. D'Agostino, Jr., Encore Bancshares' Chairman and Chief Executive Officer. "By exiting Florida, Encore Bank will be able to focus its efforts on growing our franchise in Houston – one of the most attractive markets in the U.S. We very much appreciate the efforts of all of our employees in Florida and expect that they will continue to provide great service to their clients."
The acquired deposits and loans represent approximately 19.4% and 8.0% of our total deposits and loans at December 31, 2009, respectively. The combined transactions will result in a loss of approximately $1.0 million; however, we expect to take a charge of approximately $4.4 million in the first quarter of 2010 to adjust the assets held for sale to their agreed purchase price. The gain on the sale of the deposits will be recognized when each of the transactions close. Both transactions are subject to regulatory approval and are expected to close before the end of the third quarter 2010. The transaction with Ovation Holdings, Inc. and NBSWF is subject to Ovation completing its acquisition of NBSWF as described above.
Conference Call
Encore will host a conference call for investors and analysts that will be broadcast live via the Internet on Tuesday, March 16, 2010 at 9:00 a.m. Eastern Time. Interested parties may participate by calling (877) 303-6295 at least ten minutes prior to the start time.
To listen to this conference call live via the Internet, please visit the Investor Relations section of the Company's web site at http://www.encorebank.com at least 15 minutes prior to the call to register, download and install any necessary audio software. An audio archive of the call will also be available on the web site on or before Wednesday, March 17, 2010.
About Encore Bancshares
Encore Bancshares, Inc. is a financial holding company headquartered in Houston, Texas and offers a broad range of banking, wealth management and insurance services through Encore Bank, N.A. and its affiliated companies. Encore Bank operates 11 private client offices in the Greater Houston area and six in southwest Florida. Headquartered in Houston and with $1.6 billion in assets, Encore Bank builds relationships with professional firms, privately-owned businesses, investors and affluent individuals. Encore Bank offers a full range of business and personal banking products and services, as well as financial planning, wealth management, trust and insurance products through its trust division, Encore Trust, and its affiliated companies, Linscomb & Williams and Town & Country Insurance. Products and services offered by Encore Bank's affiliates are not FDIC insured. The Company's common stock is listed on the NASDAQ Global Market under the symbol "EBTX".
The Encore Bancshares, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4257
This press release contains, and remarks by our management on the conference call may contain, certain forward-looking information about Encore Bancshares that are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from those expressed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the risk that the consummation of the announced transactions may be more difficult, time-consuming or costly than expected; expected cost savings from the announced transactions may not be fully realized or realized within the expected time frame; revenues following the announced transactions may be lower than expected; deposit attrition, customer loss and business disruption may be greater than expected; and the ability to obtain the necessary regulatory approvals may not occur on the proposed terms and schedule. Other risks and uncertainties include competitive pressure among financial institutions; volatility and disruption in national and international financial markets; government intervention in the U.S. financial system; our ability to expand and grow our businesses and operations and to realize the cost savings and revenue enhancements expected from such activities; a deterioration of credit quality or a reduced demand for credit; incorrect assumptions underlying the establishment of and provisions made to the allowance for loan losses; changes in the interest rate environment; the continued service of key management personnel; our ability to attract, motivate and retain key employees; changes in availability of funds; general economic conditions, either nationally, regionally or in the market areas in which we operate; legislative or regulatory developments or changes in laws; changes in the securities markets and other risks that are described from time to time in our 2008 Annual Report on Form 10-K and other reports and documents filed with the Securities and Exchange Commission.