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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 23, 1998
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REPUBLIC BANCSHARES, INC.
(Exact Name of registrant as specified in its charter)
Florida 0-27652 59-1463900
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) identification No.)
111 Second Avenue N.E.
St. Petersburg, FL 33701
(Address of principal executive offices)
Registrant's telephone number, including area code (813) 823-7300
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On November 23, 1998, the Company announced a projected operating loss
for the fourth quarter of 1998 in the expected range of $10 million to
$13 million. Statements in this release may constitute forward-looking
statements that are based on the current beliefs and expectations of
the Company's management, as well as assumptions made by, and
information currently available to, the Company's management.
Forward-looking statements are based largely on expectations and are
subject to a number of risks and uncertainties including but not
limited to economic, competitive and other factors affecting the
Company and its operations. The content of the report is comprised of
the press release text relating to this matter.
In recent months, conditions in the U.S. financial markets
changed dramatically. Turmoil in financial markets,
particularly the High LTV Loan and subprime mortgage loan
segments, reduced liquidity levels in the asset-backed
securities markets significantly which in turn adversely
affected the volume and pricing of mortgage loans in the
secondary markets. The normal conduits for sale and/or
securitization by Republic Bancshares, Inc. (the "Company") of
its High LTV Loans and subprime first mortgage loans became
unavailable due to the liquidity problems in the financial
markets. Rather than dispose of these assets at distress
prices resulting from the illiquid market, the Company elected
to forego sales or securitizations of its High LTV and
subprime loans and transfer those loans into portfolio.
On November 13, 1998, the Company announced in its Form 10-Q
quarterly report filed with the Securities and Exchange
Commission that it was likely that the Company would incur an
operating loss in the fourth quarter of 1998 because revenues
from loan sales would not be sufficient to cover the expense
levels from its mortgage banking division.
Today the Company announced that the amount of its projected
operating loss for the fourth quarter of 1998 is expected to
be in the range of $10 million to $13 million or $0.96 to
$1.26 per share (basic, including the effect of fourth quarter
merger activity), based on information currently available. In
addition to an operating loss from mortgage operations caused
by the lack of sales and/or securitizations of loans and the
high marketing costs, the other causes of the Company's
projected loss include additional allowances for loan losses
which the Company is providing for loans transferred from the
held for sale category to the portfolio category, increased
amortization of mortgage servicing assets, and merger
expenses.
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Accordingly, the Company is undertaking a reorganization of
its mortgage banking activities to re-direct its efforts
towards first lien products. This reorganization is expected
to be completed during the first quarter of 1999.
The Company projects that its results of operations for the
full year of 1998 will reflect an operating loss in the range
of $1 million to $4 million or $0.11 to $0.43 per share
(basic, prior periods restated for fourth quarter merger
activity). The company cautioned that its projection of
results of operations was based on certain assumptions
regarding its fourth quarter activities. Should those
underlying assumptions change, the Company's fourth quarter
projection could be materially affected.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
REPUBLIC BANCSHARES, INC.
(Registrant)
Date: November 23, 1998 By : /s/William R. Falzone
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Treasurer
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