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[FIRST INTERNATIONAL BANK LETTERHEAD]
FOR IMMEDIATE RELEASE
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CONTACT:
Brett N. Silvers Leslie A. Galbraith
Chairman & CEO President & COO
(860) 241-2517 (860) 241-2529
silversb@firstinterbank.com galbraithl@firstinterbank.com
FIRST INTERNATIONAL BANK
ANNOUNCES AGREEMENT TO SELL REMAINING DEPOSITS
HARTFORD, CONN., MAY 2, 2001 - First International Bank, a subsidiary of First
International Bancorp, Inc. (NASDAQ: FNCE), today announced that it has entered
into a definitive agreement pursuant to which Hudson United Bank, a subsidiary
of Hudson United Bancorp (NYSE: HU), will assume approximately $250 million in
time deposit accounts from First International Bank. These accounts comprise all
the FDIC-insured deposits of First International Bank. The maturities of the
time deposit accounts to be assumed are generally between one month and six
months. First International Bank will make a cash payment to Hudson United Bank
upon closing the transaction equal to the amount of the deposits being assumed
plus $450,000, subject to potential adjustments not to exceed 10% of this
discount.
In April 1999, Hudson United Bank assumed approximately $150 million of
checking, savings and money market deposit accounts from First International
Bank and purchased its last retail branch. In January 2001, First International
Bancorp entered into a definitive merger agreement with United Parcel Service,
Inc. pursuant to which UPS will acquire First International Bancorp. The sale of
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FIRST INTERNATIONAL BANK / page 2
all of First International Bank's FDIC-insured deposits is a condition to the
closing of the acquisition of First International Bancorp by UPS.
The deposit sale is subject to approval by the FDIC and the Connecticut
and New Jersey Banking Departments, and is expected to close in July 2001.
"Based on the success of the deposit assumption and branch sale
transaction we completed with Hudson United Bank in 1999, we are pleased to
enter into the current agreement, which is an important step in completing our
merger with UPS," said Brett N. Silvers, CEO of First International Bank.
"We are pleased to acquire these deposits at an attractive blended rate
which is below our current deposit costs, and without having to add additional
personnel or bank facilities. We will also be gaining customers to whom we can
market other products and services," said Kenneth T. Neilson, CEO of Hudson
United Bancorp.
Hudson United Bancorp is the multi-state bank holding company for
Hudson United Bank, which has more than 200 offices in New Jersey, New York,
Connecticut and Pennsylvania.
First International Bank, a world leader in the use of SBA, USDA and
Export-Import Bank loans, provides innovative credit, trade and financial
solutions for small and medium-sized industrial businesses. The company has more
than 100 experienced lending officers located in 15 U.S. offices, and 14
international representatives.
This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Many important factors
could cause actual results to differ materially from those in the
forward-looking statements made by or about First International Bancorp. Such
factors include, but are not limited to, changes (legislative, regulatory and
otherwise) in the banking and commercial finance industries and those
specifically relating to the continuation in their present form of the
government guaranteed loan programs utilized by First International Bancorp; the
ability of First International Bancorp to continue its recent growth in an
increasingly competitive market for loan originations; disruption in the capital
markets which may delay or prevent First International from receiving funding
under warehouse lines of credit or completing loan sales; and other risks
identified in First International Bancorp's SEC filings. In addition, with
respect to the proposed merger of the First International Bancorp and UPS,
investors are urged to read First International Bancorp's proxy
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FIRST INTERNATIONAL BANK / page 3
statement/prospectus recently filed with the SEC that contains important
information. A copy of First International Bancorp's proxy statement/prospectus
is available without charge upon request of First International Bancorp or at
the SEC's Internet world wide web site at www.sec.gov.
Forward-looking statements about Hudson United Bancorp are not
historical facts and include expressions about Hudson United Bancorp and its
management's confidence and strategies and management's expectations about new
and existing programs and products, relationships, opportunities, technology and
market conditions. These statements may be identified by such forward-looking
terminology as "expect", "look", "believe", "anticipate", "consider", "may",
"will", or similar statements or variations of such terms. Such forward-looking
statements involve certain risks and uncertainties. These include, but are not
limited to, changes in interest rates, changes in economic conditions, deposit
and loan growth, and loan loss provisions; changes in relationships with
customers, failure to realize expected cost savings or revenue enhancements from
changes in business models and acquisitions, and the effects of legal and
regulatory provisions applicable to Hudson United Bancorp and its competitors.
Actual results may differ materially from the results discussed in these
forward-looking statements. Hudson United Bancorp assumes no obligation for
updating any such forward-looking statement at any time. Information on
potential factors that could cause Hudson United Bancorp's financial results to
differ from the forward-looking statements also is included from time to time in
the Hudson United Bancorp's public reports filed with the SEC, including in its
Form 10-K for the year ending December 31, 2000.
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