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UNITED STATES
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
APRIL 17, 2000
---------------
Date of Report (Date of earliest event reported)
REPUBLIC SECURITY FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
FLORIDA
(State or Other Jurisdiction of Incorporation)
0-14671 59-2335075
(Commission File Number) (IRS Employer Identification No.)
450 SOUTH AUSTRALIAN AVENUE
WEST PALM BEACH, FLORIDA 33401
(Address of principal executive offices) (Zip Code)
(561) 655-8511
Registrant's Telephone Number, Including Area Code
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<PAGE>
ITEM 5. OTHER EVENTS
Republic Security Financial Corporation issued a press release
announcing net income of $7.7 million or $0.16 diluted earnings per common share
for the three months ended March 31, 2000 compared to net income of $5.6 million
or $0.11 diluted earnings per common share for the three months ended March 31,
1999. Earnings, excluding merger related expenses, for the three months ended
March 31, 1999 was $7.9 million or $0.16 per share.
The press release issued by the Registrant described herein is attached
hereto as Exhibit 99.1 and is hereby incorporated herein by reference in its
entirety.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: The matters discussed in this report which are not historical facts
contain forward-looking information with respect to strategic initiatives. Such
forward-looking statements are based on current plans and expectations, which
are subject to a certain number of uncertainties and risks, which could cause
future results to differ materially from those anticipated by such statements.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements of the Business Acquired
Not Applicable
(b) Pro Forma Financial Information
Not Applicable
(c) Exhibits
99.1 - Press Release dated April 17, 2000
<PAGE>
SIGNATURE
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 thereunto duly authorized.
REPUBLIC SECURITY FINANCIAL CORPORATION
(Registrant)
Date: APRIL 18, 2000 /S/CARLA H. POLLARD
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Carla H. Pollard
Senior Vice President/Controller
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
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99.1 Press Release dated April 17, 2000
EXHIBIT 99.1
[GRAPHIC OMITTED] For Further Information call:
Richard J. Haskins, CFO
(561) 802-5840
Carla Pollard, Controller
(561) 650-2424
NEWS RELEASE
For: Republic Security Financial Corporation
West Palm Beach, Florida, 33401
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REPUBLIC SECURITY FINANCIAL CORPORATION
ANNOUNCES FIRST QUARTER EARNINGS
================================================================================
WEST PALM BEACH, FL. APRIL 17, 2000- REPUBLIC SECURITY
FINANCIAL CORPORATION (NASDAQ:RSFC), parent to REPUBLIC SECURITY BANK
("REPUBLIC"), today announced net income of $7.7 million or $0.16
diluted earnings per common share for the three months ended March 31,
2000 compared to net income of $5.6 million or $0.11 diluted earnings
per common share for the three months ended March 31, 1999. Earnings,
excluding merger related expenses, for the three months ended March 31,
1999 was $7.9 million or $0.16 per share.
Net interest income decreased $452,000 for the three months ended March
31, 2000 compared to the three months ended March 31, 1999 due to a decrease in
net interest margin primarily attributable to the purchase of certain assets,
which related income is recorded as fee income. Net interest spread remained
relatively flat for the quarter ended March 31, 2000 compared to the quarters
ended March 31, 1999 and December 31, 1999. Non interest income increased $3.1
million for the three months ended March 31, 2000 compared to the three months
ended March 31, 1999 due to $1.9 million in gains related to real estate
transactions, earnings on fee income related investments and increases in fees
earned on products and services. Other income excluding income from real estate
transactions increased approximately $920,000 or 51% during the three months
ended March 31, 2000 compared to the three months ended March 31, 1999 and 30%
compared to the three months ended December 31, 1999. Operating expenses
increased $1.8 million for the three months ended March 31, 2000 compared to
operating expenses, excluding merger related expenses, for the three months
ended March 31, 1999. The increase in operating expenses is primarily due to
increases in data processing expenses related to the addition of the former
First Bank and Kash N' Karry operations to the Bank's outside data processor,
and increases in other expenses. Other expenses increased primarily due to
increases in the amortization of goodwill and an overall increase in operating
expenses associated with the operation of First New England Financial, increased
branches and additions to staff.
"The Bank is poised to build on the infrastructure put into place last
year, said Rudy Schupp, Chairman of Republic Security Financial Corporation.
"The human and technological infrastructure enhancements developed in 1999,
positions the Bank to improve future revenue growth in traditional and non
traditional fee income, improve relevant product and service offerings and
achieve more efficient operations through technology and consolidated core bank
operations while sustaining strong credit quality levels", said Schupp.
<PAGE>
Republic Security Financial Corporation with total assets of $3.2
billion operates 99 full service banking offices in Palm Beach, Broward, Dade,
Martin, St. Lucie, Lee, Marion, Alachua, Hillsborough, Orange, Pasco and Collier
counties and is headquartered in West Palm Beach, Florida. Republic's
subsidiary, First New England Financial, is one of the leading names in the
yacht-lending marketplace and has operations nationwide.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: The matters discussed in this press release which are not
historical facts contain forward-looking information with respect to strategic
initiatives. Such forward-looking statements are based on current plans and
expectations, which are subject to a certain number of uncertainties and risks,
which could cause future results to differ materially from those anticipated by
such statements.
For more information on Republic Security Financial Corporation,
Republic Security Bank or First New England Financial, please visit our website
at WWW.REPUBLICSECURITYBANK.COM
NASDAQ SYMBOL: COMMON - RSFC
<PAGE>
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
======================================================================================================================
FOR THE THREE MONTHS ENDED
For the period ended 3/31/00 12/31/99 9/30/99 6/30/99 3/31/99
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- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net income $7,695 $7,428 $8,035 $8,454 $5,552
Net income excluding merger related expenses(1) 7,695 7,428 8,035 8,454 7,945
Net interest income.................................. 23,492 24,257 24,459 25,426 23,944
Provision for loan losses............................ 1,000 450 300 300 500
Non-interest income.................................. 9,094 6,794 8,259 7,124 5,974
Non-interest expense (2)............................ 20,107 18,569 19,896 19,041 17,214
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
Common Share Data
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
Basic earnings per share ............................ $0.16 $0.15 $0.16 $0.17 $0.11
Diluted earnings per share........................... $0.16 $0.15 $0.16 $0.17 $0.11
Stated book value per share.......................... $4.00 $4.02 $4.19 $4.13 $4.24
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
At Period End
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
Assets............................................... $3,241,459 $3,192,212 $3,052,135 $3,083,624 $3,047,054
Investments held to maturity......................... 145,383 147,275 149,133 151,816 6,366
Investments available-for-sale....................... 795,174 792,125 652,182 685,849 722,912
Loans................................................ 1,964,872 1,906,734 1,888,200 1,883,039 1,969,502
Allowance for loan losses............................ 22,253 22,301 24,160 25,625 25,896
Deposits............................................. 2,036,514 2,064,936 2,131,110 2,213,790 2,346,880
Borrowings........................................... 957,398 888,048 646,853 594,417 438,515
Stockholders' equity................................. 195,698 200,662 212,916 209,467 212,262
Common shares outstanding............................ 48,758 49,696 50,662 50,569 50,532
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
Average Balances
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
Assets............................................... $3,178,009 $3,084,688 $3,000,286 $2,993,761 $2,994,845
Stockholders' equity................................. 193,328 207,220 209,525 210,439 212,160
Interest-earning assets.............................. 2,879,906 2,851,708 2,789,662 2,795, 204 2,796,389
Interest-bearing liabilities......................... 2,608,025 2,487,315 2,406,495 2,393,395 2,434,407
Average common shares and
common stock equivalents.......................... 49,279 50,666 51,201 51,174 51,236
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
Ratios % % % % %
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
Return on average assets(1).......................... 0.97 0.96 1.07 1.13 1.06
Return on total risk weighted assets(1).............. 1.64 1.56 1.84 2.01 1.89
Return on average stockholders' equity (1)........... 15.92 14.34 15.34 16.07 14.98
Net interest spread.................................. 2.81 2.80 2.92 2.98 2.82
Net interest margin.................................. 3.26 3.40 3.51 3.64 3.42
Equity to assets (period end)........................ 6.04 6.29 6.98 6.79 6.97
Tier 1 leverage ratio (Bank only estimate)........... 6.39 6.53 6.70 6.62 6.74
Tier 1 risk based capital (Bank only estimate)....... 10.75 10.54 11.48 11.74 12.08
Total risk based capital (Bank only estimate)........ 11.96 11.73 12.75 13.01 13.63
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
Asset Quality (period end)
- ----------------------------------------------------- ------------- ------------ ------------- ----------- -----------
Non performing Loans ("NPLs")........................ $13,377 $16,369 $13,871 $11,746 $16,758
Non performing Assets ("NPAs")....................... $14,793 $18,372 $17,306 $15,414 $20,482
NPLs as a % of total loans........................... 0.68% 0.86% 0.73% 0.62% 0.85%
NPAs as a % of total assets.......................... 0.46% 0.58% 0.57% 0.50% 0.67%
Allowance for loan losses as a % of total loans...... 1.13% 1.17% 1.28% 1.36% 1.31%
Allowance for loan losses as % of NPL's 166.35% 136.24% 174.18% 218.17% 154.53%
Net charge-offs to average loans..................... 0.09% 0.12% 0.07% 0.03% 0.06%
======================================================================================================================
</TABLE>
(1) Excludes merger related and one time expenses of $2.4 million, net of taxes,
for the three months ended March 31, 1999 .
(2) Excludes pre-tax merger related and one time expenses of approximately $3.5
million for the three months ended March 31, 1999 .
<PAGE>
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars in thousands, except per share data)
<TABLE>
<CAPTION>
=====================================================================================================================
FOR THE THREE MONTHS ENDED
3/31/00 12/31/99 9/30/99 6/30/99 3/31/99
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<S> <C> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans............................ $38,198 $37,587 $38,167 $39,622 $39,891
Interest and dividends on investments................. 16,943 15,985 13,704 13,171 12,398
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
55,141 53,572 51,871 52,793 52,289
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
Interest Expense:
Interest on deposits.................................. 18,680 18,825 19,560 20,726 22,587
Interest on borrowings................................ 12,969 10,490 7,852 6,641 5,758
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
31,649 29,315 27,412 27,367 28,345
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
Net interest income................................... 23,492 24,257 24,459 25,426 23,944
Provision for loan losses............................. 1,000 450 300 300 500
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
Net interest income after provision for loan losses 22,492 23,807 24,159 25,126 23,444
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
Non-interest Income:
Service charges on deposit accounts................... 3,224 3,483 3,293 2,848 3,117
Gain on sale of loans and servicing................... 508 737 2,046 1,363 952
Gain on sale of investments........................... 321 85 789 81 96
Other income.......................................... 5,041 2,489 2,131 2,832 1,809
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
9,094 6,794 8,259 7,124 5,974
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
Operating Expenses:
Employee compensation and benefits.................... 9,111 8,810 9,548 8,955 9,010
Occupancy and equipment............................... 4,591 4,126 4,912 4,864 4,422
Professional fees..................................... 364 158 325 503 416
Advertising and promotions............................ 240 302 397 358 298
Communications........................................ 912 649 558 561 715
Insurance............................................. 403 423 418 458 462
Data processing....................................... 1,331 1,114 971 969 548
Other................................................. 3,155 2,987 2,767 2,373 2,431
Merger expenses....................................... 2,381
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
Total........................................ 20,107 18,569 19,896 19,041 20,683
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
Income before income taxes............................ 11,479 12,032 12,522 13,209 8,735
Provision for income taxes............................ 3,784 4,604 4,487 4,755 3,183
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
Net income............................................ $7,695 $7,428 $8,035 $8,454 $5,552
- ------------------------------------------------------ ------------ ------------ ----------- ------------ -----------
PER SHARE DATA:
Basic earnings per common share....................... $0.16 $0.15 $0.16 $0.17 $0.11
Diluted earnings per common share..................... $0.16 $0.15 $0.16 $0.17 $0.11
Dividends per common share............................ $0.06 $0.06 $0.06 $0.06 $0.06
Average common shares and common stock equivalents
outstanding........................................... 49,279 50,666 51,201 51,174 51,236
=====================================================================================================================
</TABLE>
<PAGE>
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars in thousands, except share amounts)
<TABLE>
<CAPTION>
===================================================================================================================
3/31/00 12/31/99
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ASSETS
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<S> <C> <C>
Cash and amounts due from depository institutions $42,857 $73,054
Interest bearing deposits in other financial institutions 74,763 41,201
Federal funds sold 3,595
- ----------------------------------------------------------------------------------------- ------------ ------------
Total cash and cash equivalents 117,620 117,850
Investments available-for-sale 795,174 792,125
Investments held to maturity (Market value of $137,305 and $139,383 at March 31, 2000
and December 31, 1999, respectively) 145,383 147,275
Loans - net 1,890,119 1,822,433
Loans held for sale (Market value of $52,500 and $62,000
at March 31, 2000 and December 31, 1999, respectively) 52,500 62,000
Property and equipment - net 64,225 65,349
Other real estate owned - net 1,416 2,004
Federal Home Loan Bank Stock 29,214 34,821
Goodwill - net 17,367 17,715
Bank owned life insurance 53,702 58,039
Deferred taxes - net 19,006 17,908
Accrued interest receivable 17,173 16,986
Other assets 38,560 37,707
- ----------------------------------------------------------------------------------------- ------------ ------------
Total Assets $3,241,459 $3,192,212
- ----------------------------------------------------------------------------------------- ------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $2,036,514 $2,064,936
Federal Home Loan Bank advances and other borrowings 487,082 618,996
Securities sold under agreement to repurchase 449,920 248,521
Senior debentures, net of unamortized issuance costs 20,396 20,531
Advances from borrowers for taxes and insurance 9,463 5,908
Bank drafts payable 16,337 11,208
Other liabilities 26,049 21,450
- ----------------------------------------------------------------------------------------- ------------ ------------
Total Liabilities 3,045,761 2,991,550
- ----------------------------------------------------------------------------------------- ------------ ------------
Common Stock $.01 par value; 500,000,000 shares authorized;
50,748,419 issued shares; outstanding 48,758,419 and 49,696,419
(net of treasury stock) at March 31, 2000 and December 31, 1999, respectively. 508 508
Treasury Stock ( 1,990,000 and 1,052,000 shares repurchased at March 31, 2000 and
And December 31, 1999, respectively) (20) (11)
Additional paid-in capital 117,682 124,931
Retained earnings 99,680 94,934
Unrealized loss on investments available-for-sale, net of taxes (22,152) (19,700)
- ----------------------------------------------------------------------------------------- ------------ ------------
Total Shareholders' Equity 195,698 200,662
- ----------------------------------------------------------------------------------------- ------------ ------------
Total Liabilities and Shareholders' Equity $3,241,459 $3,192,212
===================================================================================================================
</TABLE>
