In the original deal to sell U.S. Century Bank to C1 Bank, the St. Petersburg buyer proposed a 90 percent discount in repaying U.S. Century's TARP funds, returning only $5.2 million of the $50.2 million, confirmed Carlos J. Davila, U.S. Century's chief executive and president
But the final amount is still under negotiation, Davila said, declining to confirm or deny a South Florida Business Journal report that the Treasury Department had rejected the request that would have left taxpayers out $45 million.
"We feel we are moving in the right direction," Davila said. "We are in the process of good, positive dialog."
The Treasury Department, which must approve the TARP (Troubled Asset Relief Program) repayment, does not disclose the terms until after the sale of a bank, and a spokesman did not respond to a request for information.
A quarterly report to Congress from the Office of the Special Inspector General for TARP, dated Oct. 25, shows that U.S. Century has missed 11 payments on its TARP funds, totaling $7.5 million, and that an observer has been assigned to its board.
The proposed sale of U.S. Century, announced Aug. 30, was the culmination of years of searching for capital, as 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 and $1.2 billion in assets.
Davila said Thursday that the deal, which is also subject to shareholder and regulatory approval, is still on track to be completed by year's end.
A shareholders' meeting, originally scheduled for the end of October, is now expected to be held by the end of November.
Distributed by MCT Information Services
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