U.S. Century Bank, which has agreed to be sold to C1 Bank of St. Petersburg, will hold its shareholders meeting at 6 p.m. on Tuesday to vote on the sale.
According to the terms of the deal, shareholders would receive $2.5 million, or about 1.7 cents on the dollar, from the sale, U.S. Century said. The deal, reached Aug. 30, also now includes a proposed $6.27 million repayment of TARP funds, the bank said. Originally, C1 proposed a 90 percent discount in repaying U.S. Centurys TARP funds, returning only $5.2 million of the $50.2 million. The U.S. Treasury Department must approve the proposed TARP (Troubled Asset Relief Program) repayment.
The proposed sale of U.S. Century came after the Doral bank faltered during the real estate downturn and recession. Founded in 2002, U.S. Century is operating under a June 2011 regulatory consent order mandating it to boost capital, reduce its bad loans and return to profitability, among other requirements. Last year, it hired the Japanese investment bank Nomura Securities to try to raise at least $150 million in private equity funds.
C1, privately owned by four investors, is proposing to inject $100 million of fresh capital into the combined bank. The deal would give the growing C1 Bank 24 branches in Miami-Dade and Broward counties and $1.2 billion in assets.