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REPUBLIC SECURITY FINANCIAL CORPORATION
(Name of Registrant as Specified in Its Charter)
REPUBLIC SECURITY FINANCIAL CORPORATION
(Name of Person(s) Filing Proxy Statement, if other Than
the Registrant)
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For further information call:
Carla Pollard, Controller
(561) 863-2554
News Release
For: Republic Security Financial Corporation
West Palm Beach, Florida, 33401
Republic Security Financial Corporation
FIRST QUARTER NET INCOME UP
================================================================================
West Palm Beach, FL. April 12, 1999 - Republic Security Financial
Corporation (NASDAQ:RSFC), 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,
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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.
NASDAQ Symbol: Common - RSFC
Republic Web Site Address - www.republicsecuritybank.com
def14a99.sub
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