GOOD EARNINGS..RSFC GAVE 16
Tuesday April 13, 7:02 am Eastern Time
Company Press Release
SOURCE: Republic Security Financial Corporation
Republic Security Financial Corporation:
First Quarter Net Income Up
WEST PALM BEACH, Fla., April 13 /PRNewswire/ -- Republic Security Financial Corporation (Nasdaq: RSFC - news) today announced that reported income, excluding merger related expenses, was $7.9 million or $0.16 per common share for the quarter ended March 31, 1999 compared to $5.4 million or $0.12 per common share for the quarter ended March 31, 1998, which results are consistent with ''Wall Street's'' consensus earnings estimate for RSFC in the first quarter of 1999. Net income was $5.6 million or $0.11 per common share for the quarter ended March 31, 1999 which includes $2.4 million, net of taxes, in merger and other expenses related primarily to the acquisition of Northside Bank of Tampa (''Northside'') which closed on February 26, 1999 and was accounted for as a pooling of interests transaction. The quarter ended March 31, 1999 included the results of operations of Northside from January 1, 1999, however, prior periods presented herein have not been restated for the results of Northside's operations.
Total restructuring expenses associated with the Northside acquisition and the remaining merger integration expenses related to the First Palm Beach Bancorp (''FPBB'') merger were consistent with the Company's 1998 estimates. Pretax merger expenses related to the Northside acquisition included $1.0 million in severance and change of control payments, $845,000 in professional fees and $170,000 in contract buyouts and other merger expenses. Additional merger related expenses associated with Northside include $300,000 in provision for loan losses to conform accounting and valuation policies, $300,000 related to the write-off of certain assets not useful to the combined company and $60,000 of expense incurred related to the integration of Northside into Republic Security Bank (''Republic''). In accordance with current accounting practices, RSFC recognized pretax merger related period expenses associated with the remaining integration of First Palm Beach Bancorp which totaled $1.1 million for the quarter ended March 31, 1999.
Net interest income increased $1.3 million or 6% for the quarter ended March 31, 1999 compared to net interest income for the quarter ended March 31, 1998 due to a decrease in the cost of interest-bearing liabilities and net interest income from Northside included in the quarter ended March 31, 1999. The increase of $2.9 million or 14% in net interest income for the quarter ended March 31, 1999 compared to the quarter ended December 31, 1998 demonstrates the effectiveness of the Bank's strategy to induce deposit and loan mix changes in the assets and liabilities acquired in the FPBB transaction which closed on October 29, 1998. The increase in net interest income for the quarter ended March 31, 1999 compared to the quarter ended December 31, 1998 is due to a decrease of $1.2 million in interest expense and an increase of $945,000 in interest income, as well as $708,000 in net interest income contributed from Northside in the quarter ended March 31, 1999. Net interest margin increased approximately 30 basis points to 3.42% for the quarter ended March 31, 1999 compared to the prior quarter ended December 31, 1998.
''The accomplishments in 1998 provided the foundation for Republic to pursue its goal of being the best bank in Florida and for the Company to continue to provide increased shareholder value,'' said Rudy Schupp, Chairman and Chief Executive Officer of Republic Security Bank and Republic Security Financial Corporation. ''The achievements in the first quarter 1999 of increased net interest income, realized cost savings, additions to senior management as well as the cost effective cash purchase of nine in-store branches and the completion of the Northside acquisition, demonstrates Management's commitment to the Company's strategic objectives. We believe the Company is poised for solid performance in 1999,'' said Schupp.
Republic Security Financial Corporation, with total assets of $3.0 billion, operates ninety-seven full service banking offices in Palm Beach, Broward, Dade, Martin, St. Lucie, Lee, Marion, Alachua, Hillsborough and Orange counties and is headquartered in Palm Beach County, Florida.
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars in thousands, except per share amounts)
For the Three Months Ended
For the period
ended 3/31/99 12/31/98 9/30/98 6/30/98 3/31/98
Net income
(loss) $5,552 ($22,939) $1,250 $4,654 $5,376
Net income
excluding
merger
related
expenses (a) 7,945 7,701 3,650 4,654 5,376
Net interest
income 23,944 21,085 20,765 21,669 22,611
Provision for
loan losses 500 18,053 1,448 380 2,913
Non-interest
income 5,974 7,245 4,741 6,048 7,235
Operating
expenses (b) 17,214 19,941 19,497 19,798 18,171
Common Share Data
Basic earnings
(loss) per
share $0.11 ($0.49) $0.03 $0.10 $0.12
Diluted
earnings
(loss) per
share $0.11 ($0.49) $0.03 $0.10 $0.12
Stated book
value per
share $4.24 $4.38 $4.62 $4.73 $4.64
At Period End
Assets $3,047,089 $3,007,732 $2,929,558 $2,925,512 $2,948,088
Investments
held to
maturity 6,366 6,363 11,624 7,778 210,819
Investments
available-
for-sale 722,912 722,913 761,784 686,791 458,489
Loans 1,969,502 2,001,343 1,899,642 1,867,173 1,827,787
Allowance
for loan
losses 25,896 26,043 11,831 11,979 13,301
Deposits 2,346,880 2,304,855 2,209,634 2,206,870 2,162,352
Borrowings 438,515 447,030 416,078 432,283 507,800
Stockholders'
equity 212,207 198,402 227,552 220,231 213,805
Common
shares
outstanding 50,532 47,370 47,265 46,961 45,149
Average Balances
Assets $2,994,845 $2,898,926 $2,882,347 $2,860,076 $2,881,485
Stockholders'
equity 212,160 196,578 220,654 215,618 212,346
Interest-
earning
assets 2,796,389 2,713,364 2,695,203 2,676,038 2,693,523
Interest-
bearing
liabi-
lities 2,434,407 2,349,587 2,353,657 2,328,282 2,382,797
Average common
shares and
common stock
equivalents 51,236 48,054 47,775 47,719 46,415
Ratios % % % % %
Return on
average
assets(a) 1.06 1.06 0.51 0.65 0.75
Return on
average
stockholders'
equity (a) 14.98 15.67 6.62 8.63 10.13
Net interest
spread 2.82 2.44 2.44 2.58 2.78
Net interest
margin 3.42 3.11 3.08 3.24 3.36
Equity to
assets
(period end) 6.96 6.60 7.77 7.53 7.25
Tier 1 leverage
ratio (Bank
only estimate) 6.74 6.64 7.69 7.68 7.42
Tier 1 risk
based capital
(Bank only
estimate) 12.08 11.37 13.35 13.28 13.27
Total risk
based capital
(Bank only
estimate) 13.63 12.88 14.09 14.01 14.10
Asset Quality (period end)
Non Performing
Loans
("NPLs") $16,758 $13,376 $10,233 $11,692 $14,781
Non Performing
Assets
("NPAs") $20,482 $16,639 $17,456 $18,756 $20,304
NPLs as a %
of total
loans 0.85% 0.67% 0.54% 0.63% 0.81%
NPAs as a %
of total
assets 0.67% 0.55% 0.60% 0.64% 0.07%
Allowance for
loan losses
as a % of
total loans 1.31% 1.30% 0.62% 0.64% 0.73%
Net charge-offs
to average
loans 0.06% 0.25% 0.09% 0.09% 0.10%
(a) Excludes merger related and one time expenses of $2.4 million,
$30.6 million and $2.4 million, net of taxes, for the three months
ended March 31, 1999, December 31, 1998 and September 30, 1998,
respectively.
(b) Excludes pre-tax merger expenses of approximately $3.5 million,
$23.6 million and $ 2.1 million for the three months ended March 31,
1999, December 31, 1998 and September 30, 1998, respectively.
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars in thousands, except per share data)
For the Three Months Ended
For the period
ended 3/31/99 12/31/98 9/30/98 6/30/98 3/31/98
Interest Income:
Interest and fees
on loans $39,891 $37,843 $37,638 $38,114 $40,251
Interest and dividends
on investments 12,398 12,335 13,108 13,005 12,362
52,289 50,178 50,746 51,119 52,613
Interest Expense:
Interest on deposits 22,587 23,013 23,905 23,152 22,567
Interest on borrowings 5,758 6,080 6,076 6,298 7,435
28,345 29,093 29,981 29,450 30,002
Net interest income 23,944 21,085 20,765 21,669 22,611
Provision for
loan losses 500 18,053 1,448 380 2,913
Net interest income
after provision
for loan losses 23,444 3,032 19,317 21,289 19,698
Non-interest Income:
Service charges on
deposit accounts 3,117 2,947 2,775 2,568 2,546
Gain on sale of loans 952 316 310 470 2,636
Gain on sale
of investments 96 1,326 -- 1,454 359
Other income 1,809 2,656 1,656 1,556 1,694
5,974 7,245 4,741 6,048 7,235
Operating Expenses:
Employee compensation
and benefits 9,010 9,614 10,592 10,159 9,810
Occupancy and
equipment 4,422 4,087 4,005 3,813 3,536
Professional fees 416 1,185 624 786 508
Advertising and
promotions 298 645 435 850 478
Communications 715 804 661 710 611
Insurance 462 496 499 511 518
Other 2,979 7,354 2,681 2,969 2,710
Merger expenses 2,381 19,404 2,098 50 103
TOTAL 20,683 43,589 21,595 19,848 18,274
Income (loss) before
income taxes 8,735 (33,312) 2,463 7,489 8,659
Provision (benefit)
for income taxes 3,183 (10,373) 1,213 2,835 3,283
Net income (loss) $5,552 ($22,939) $1,250 $4,654 $5,376
PER SHARE DATA:
Basic earnings (loss)
per common share $0.11 ($0.49) $0.03 $0.10 $0.12
Diluted earnings (loss)
per common share $0.11 ($0.49) $0.03 $0.10 $0.12
Dividends per common
share $0.06 $0.06 $0.06 $0.05 $0.05
Average common shares
and common stock
equivalents
outstanding 51,236 48,054 47,775 47,719 46,415
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars in thousands, except share amounts)
3/31/99 12/31/98
ASSETS
Cash and amounts due from depository
institutions $ 67,160 $ 46,575
Interest bearing deposits in other
financial institutions 154,961 114,471
Federal funds sold 3,390 1,120
Total cash and cash equivalents 225,511 162,166
Investments available-for-sale 722,912 722,913
Investments held to maturity
(Market value of $6,398 and $6,422 at March 31,
1999 and December 31, 1998, respectively) 6,366 6,363
Loans - net 1,853,006 1,959,300
Loans held for sale (Market value of $91,959
and $16,272 at March 31, 1999 and December 31,
1998, respectively) 90,600 16,000
Property and equipment - net 56,513 51,008
Other real estate owned - net 3,112 2,463
Federal Home Loan Bank Stock 22,192 23,754
Goodwill - net 11,719 11,961
Accrued interest receivable 15,453 15,378
Other assets 39,705 36,426
$3,047,089 $3,007,732
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $2,346,880 $2,304,855
Federal Home Loan Bank advances
and other borrowings 404,269 410,368
Securities sold under agreement to repurchase 8,714 9,144
Senior debentures, net of unamortized
issuance costs 25,532 27,518
Advances from borrowers for taxes and insurance 13,259 7,677
Bank drafts payable 9,127 27,706
Other liabilities 27,101 22,062
Total Liabilities 2,834,882 2,809,330
Common Stock $.01 par value; 100,000,000 shares
authorized; 50,531,862 and 47,370,265 issued
and outstanding at March 31, 1999 and
December 31, 1998, respectively 506 474
Additional paid-in capital 132,803 120,955
Retained earnings 80,054 75,268
Unrealized gain on investments
available-for-sale, net of taxes (1,156) 1,705
Total Shareholders' Equity 212,207 198,402
$3,047,089 $3,007,732
SOURCE: Republic Security Financial Corporation |
