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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) January 7, 1999
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REPUBLIC BANCSHARES, INC.
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(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 (727) 823-7300
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On December 30, 1998, the Company announced a reorganization of its
mortgage banking activities and a change in its projected 1998
fourth quarter operating loss. 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 included in this filing as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
EXHIBITS
99. Press release dated December 30, 1998.
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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: January 7, 1999 By : /s/William R. Falzone
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Treasurer
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Exhibit 99
PRESS RELEASE
DATE: December 30, 1998
CONTACT: Stan R. Blakey
Director of Investor Relations & Communications
WK - (727) 823-7300 Ext. 3406
HM - (727) 781-5849
FOR IMMEDIATE RELEASE
St. Petersburg, Florida (December 30, 1998) -- Republic Bancshares Inc.
(Nasdaq: REPB), the parent company of Republic Bank, today announced a
reorganization of its mortgage banking activities. Republic has issued layoff
notices to 340 employees of its mortgage banking unit, reducing its loan
production staff by 54 percent. In connection with this plan, Republic will
incur a charge in the fourth quarter of 1998 of approximately $7.5 million
(pretax) for employee severance costs and costs associated with discontinued
facilities. Republic has discontinued its telemarketing and direct mail loan
solicitation activities and is now directing its residential loan origination
activities primarily through its 60 branch locations throughout Florida. In
addition, Republic is closing all of its out-of-state residential loan
production offices.
The Company projects that its net loss for the full year of 1998 will
be approximately $12 million, or $1.26 per share (basic, prior periods restated
for fourth quarter merger activity). For ongoing operations on an after-tax
basis, net income from the commercial banking segment is projected to exceed the
net loss from mortgage banking by approximately $1.0 million or $.07 per share.
The net loss results from after-tax charges of $5.0 million for the
restructuring charge, $5.0 million for loan loss provisions on loans transferred
from held for sale to portfolio, $1.0 million in provisions for losses on other
real estate ("ORE") and $2.0 million in merger costs. The Company cautioned that
its projection of results of operations was based on certain assumptions
regarding fourth quarter activities. Should those underlying assumptions change,
the Company's projection could be materially affected.
The Company is amending the projected amount of its operating loss for
the fourth quarter of 1998 from a range of $10 million to $13 million to
approximately $20.0 million, or $1.99 per share (basic, including the effect of
fourth quarter merger activity), based on more
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information currently available. The changes from the earlier projection for the
fourth quarter on an after-tax basis include the $5.0 million restructuring
charge, an additional $1.0 million write down of its largest piece of ORE,
previously carried at a book value of $2.0 million, and an additional $2.0
million provision for loan losses.
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.
