EXHIBIT 99.1
For Further Information call:
Richard J. Haskins, CFO
[LOGO OMITTED] (561) 802-5840
Mark P. Snelling, Controller
(561) 650-2314
News Release
For: Republic Security Financial Corporation
West Palm Beach, Florida, 33401
--------------------------------------------------------------------------------
Republic Security Financial Corporation
Announces Third Quarter Earnings
--------------------------------------------------------------------------------
West Palm Beach, FL. October 16, 2000- Republic Security Financial
Corporation ("Republic") (NASDAQ: RSFC), parent to Republic Security Bank, today
announced net income of $4.7 million or $0.10 diluted earnings per common share
for the three months ended September 30, 2000 compared to net income of $8.0
million or $0.16 diluted earnings per common share for the three months ended
September 30, 1999. Net income was $17.6 million or $0.36 diluted earnings per
common share for the nine months ended September 30, 2000 compared to $22.0
million or $0.43 diluted earnings per common share for the nine months ended
September 30, 1999. Earnings, excluding merger-related expenses, for the nine
months ended September 30, 1999 were $24.4 million or $0.48 diluted earnings per
common share.
Net interest income decreased $5.9 million for the nine months ended
September 30, 2000 compared to the nine months ended September 30, 1999, and
decreased $3.0 million for the three months ended September 30, 2000 compared to
the three months ended September 30, 1999. The decrease in net interest income
for the three and nine months ended September 30, 2000 compared to the three and
nine months ended September 30, 1999 is due primarily to the rising cost of
interest-bearing liabilities (which reprice more quickly than interest-earning
assets) following six Federal Reserve interest rate hikes since June 1999, as
well as a reduction in interest-earning assets due to the purchase of certain
assets generating fee income. Net interest spread decreased to 2.27% for the
three months ended September 30, 2000 compared to 2.92% for the three months
ended September 30, 1999, again due primarily to Federal Reserve interest rate
increases. Non-interest income increased $6.2 million for the nine months ended
September 30, 2000 compared to the nine months ended September 30, 1999 due to
$3.4 million in gains related to real estate transactions, earnings on fee
income related investments, the acquisition of fee producing subsidiaries, and
increases in fees earned on products and services. Other income, excluding
income from real estate transactions, increased approximately $2.8 million for
the nine months ended September 30, 2000 compared to the nine months ended
September 30, 1999. Non-interest income increased $2.0 million for the three
months
<PAGE>
ended September 30, 2000 compared to the three months ended September 30, 1999
due primarily to earnings on fee income related investments, the acquisition of
fee producing subsidiaries, and increases in fees earned on products and
services. Other income, excluding income from real estate transactions of $1.0
million, increased approximately $1.0 million for the three months ended
September 30, 2000 compared to the three months ended September 30, 1999.
Operating expenses (excluding merger related expenses) increased $8.7 million
for the nine months ended September 30, 2000 compared to the nine months ended
September 30, 1999 due primarily to the acquisitions of First New England
Financial, National Horizon, Inc., (which was merged into First New England
Financial) and Spectrum Financial Corporation, which resulted in increased
employee related expenses and amortization of goodwill. The increase in
operating expenses is also due to increases in data processing expenses related
to the addition of the former First Bank and Kash N' Karry operations to
Republic's outside data processor. Operating expenses increased $4.0 million for
the three months ended September 30, 2000 compared to the three months ended
September 30, 1999 due primarily to incremental costs associated with the
operations of First New England Financial, Spectrum Financial Corporation,
increased branches and other additions to staff.
Rudy E. Schupp, Chairman and CEO of Republic said, "Asset quality
remains solid and loan demand remains strong. In fact the preferred loan
segments of business purpose lending and consumer lending are growing at
double-digit rates. We are committed to completing the balance sheet and revenue
mix transformation strategy with respect to the several businesses acquired in
and since 1998."
Republic Security Financial Corporation, headquartered in West Palm
Beach, Florida, has total assets of $3.4 billion and operates 98 full service
banking offices in Palm Beach, Broward, Dade, Martin, St. Lucie, Lee, Marion,
Alachua, Hillsborough, Orange, Pasco and Collier counties. Republic's
subsidiary, First New England Financial, is one of the leading names in the
yacht-lending marketplace and has operations nationwide. Spectrum Financial
Corporation, specializes in receivable-based commercial financing.
"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. Republic encourages readers of forward-looking information
concerning Republic to refer to its prior filings with the Securities and
Exchange Commission that set forth certain risks and uncertainties that may have
an impact on the future results and direction of Republic.
For more information on Republic Security Financial Corporation,
Republic Security Bank, First New England Financial or Spectrum Financial,
please visit our website at www.republicsecuritybank.com.
NASDAQ Symbol: Common - RSFC
<PAGE>
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars per thousands, except per share amounts)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
For the Nine Months
Ended For the Three Months Ended
For the Period Ended 9/30/00 9/30/99 9/30/00 6/30/00 3/31/00 12/31/99 9/30/99
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net income ...................................... $ 17,573 $ 22,041 $ 4,715 $ 5,163 $ 7,695 $ 7,428 $ 8,035
Net income excluding merger related expenses(1) . 17,573 24,434 4,715 5,163 7,695 7,428 8,035
Net interest income ............................. 67,913 73,829 21,501 22,920 23,492 24,257 24,459
Provision for loan losses ....................... 2,700 1,100 700 1,000 1,000 450 300
Non-interest income ............................. 27,533 21,357 10,293 8,146 9,094 6,794 8,259
Operating expenses (2) .......................... 65,988 56,151 23,852 22,029 20,107 18,569 19,896
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Common Share Data
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Basic earnings per share ........................ $ 0.36 $ 0.44 $ 0.10 $ 0.11 $ 0.16 $ 0.15 $ 0.16
Diluted earnings per share ...................... $ 0.36 $ 0.43 $ 0.10 $ 0.11 $ 0.16 $ 0.15 $ 0.16
Stated book value per share ..................... $ 4.24 $ 4.19 $ 4.24 $ 4.11 $ 4.00 $ 4.02 $ 4.19
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
At Period End
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Assets .......................................... $3,396,980 $3,052,135 $3,396,980 $3,385,301 $3,241,459 $3,192,212 $3,052,135
Investments available-for-sale .................. 836,653 652,182 836,653 852,869 795,174 792,125 652,182
Investments held to maturity .................... 138,602 149,133 138,602 141,484 145,383 147,275 149,133
Loans ........................................... 2,074,099 1,888,200 2,074,099 2,058,017 1,964,872 1,906,734 1,888,200
Allowance for loan losses ....................... 22,751 24,160 22,751 23,193 22,253 22,301 24,160
Deposits ........................................ 2,013,253 2,131,110 2,013,253 1,953,947 2,036,514 2,064,936 2,131,110
Borrowings ...................................... 1,117,252 646,853 1,117,252 1,174,750 957,398 888,048 646,853
Stockholders' equity ............................ 206,881 212,916 206,881 200,832 195,698 200,662 212,916
Common shares outstanding ....................... 48,579 50,662 48,579 48,579 48,758 49,696 50,662
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Average Balances
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Assets .......................................... $3,283,833 $2,996,297 $3,361,905 $3,311,585 $3,178,009 $3,084,688 $3,000,286
Stockholders' equity ............................ 197,128 210,708 200,309 197,746 193,328 207,200 209,525
Interest-earning assets ......................... 2,991,078 2,793,752 3,070,445 3,022,883 2,879,906 2,851,708 2,789,662
Interest-bearing liabilities .................... 2,703,119 2,411,432 2,778,857 2,722,475 2,608,025 2,487,315 2,406,495
Average common shares and common
stock equivalents outstanding ................ 49,063 51,191 48,888 48,940 49,279 50,666 51,201
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Ratios % % % % % % %
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Return on average assets (1) .................... 0.71 1.09 0.56 0.62 0.97 0.96 1.07
Return on total risk weighted assets (1) ........ 1.21 1.87 0.98 1.12 1.64 1.56 1.84
Return on average stockholders' equity (1) ...... 11.89 15.46 9.42 10.44 15.92 14.34 15.34
Net interest spread ............................. 2.53 2.91 2.27 2.51 2.81 2.80 2.92
Net interest margin ............................. 3.03 3.52 2.80 3.03 3.26 3.40 3.51
Equity to assets (period end) ................... 6.09 6.98 6.09 5.93 6.04 6.29 6.98
Tier 1 leverage ratio (Bank only estimate) ...... 6.09 6.70 6.09 6.02 6.39 6.53 6.70
Tier 1 risk based capital (Bank only estimate) .. 10.55 11.48 10.55 10.68 10.75 10.54 11.48
Total risk based capital (Bank only estimate) ... 11.75 12.75 11.75 11.95 11.96 11.73 12.75
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Asset Quality (period end)
------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Non performing Loans ("NPL's") .................. $ 9,228 $ 13,871 $ 9,228 $ 12,352 $ 13,377 $ 16,369 $ 13,871
Non performing Assets ("NPA's") ................. 10,214 17,306 10,214 13,252 14,793 18,372 17,306
NPL's as a % of total loans ..................... 0.44% 0.73% 0.44% 0.60% 0.68% 0.86% 0.73%
NPA's as a % of total assets .................... 0.30% 0.57% 0.30% 0.39% 0.46% 0.58% 0.57%
Allowance for loan losses as a % of total loans . 1.10% 1.28% 1.10% 1.13% 1.13% 1.17% 1.28%
Allowance for loan losses as a % of NPL's ....... 246.54% 174.18% 246.54% 187.77% 166.35% 136.24% 174.18%
Net charge-offs to average loans ................ 0.21% 0.16% 0.07% 0.06% 0.09% 0.12% 0.07%
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Excludes merger related and one time expenses of $2.4 million, net of
taxes, for the nine months ended September 30, 1999.
(2) Excludes pre-tax merger related and one time expenses of approximately
$3.5 million for the nine months ended September 30, 1999.
<PAGE>
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars per thousands, except per share amounts)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
For the Nine Months
Ended For the Three Months Ended
9/30/00 9/30/99 9/30/00 6/30/00 3/31/00 12/31/99 9/30/99
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans ........................ $121,544 $117,680 $ 42,386 $ 40,960 $ 38,198 $ 37,587 $ 38,167
Interest and dividends on investments ............. 52,026 39,273 17,607 17,476 16,943 15,985 13,704
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
173,570 156,953 59,993 58,436 55,141 53,572 51,871
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Interest Expense:
Interest on deposits .............................. 57,044 62,873 19,888 18,476 18,680 18,825 19,560
Interest on borrowings ........................... 48,613 20,251 18,604 17,040 12,969 10,490 7,852
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
105,657 83,124 38,492 35,516 31,649 29,315 27,412
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Net interest income ............................... 67,913 73,829 21,501 22,920 23,492 24,257 24,459
Provision for loan losses ......................... 2,700 1,100 700 1,000 1,000 450 300
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Net interest income after provision for loan losses 65,213 72,729 20,801 21,920 22,492 23,807 24,159
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Non-interest Income:
Service charges on deposit accounts ............... 10,238 9,258 3,662 3,352 3,224 3,483 3,293
Gain on sale of loans and servicing ............... 2,872 4,361 1,343 1,021 508 737 2,046
Gain on sale of investments ....................... 368 966 (5) 52 321 85 789
Other income ...................................... 14,055 6,772 5,293 3,721 5,041 2,489 2,131
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
27,533 21,357 10,293 8,146 9,094 6,794 8,259
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Operating Expenses:
Employee compensation and benefits ................ 29,931 27,513 10,769 10,051 9,111 8,810 9,548
Occupancy and equipment ........................... 14,799 14,198 5,167 5,041 4,591 4,126 4,912
Professional fees ................................. 1,513 1,244 674 475 364 158 325
Advertising and promotions ........................ 764 1,053 242 282 240 302 397
Communications .................................... 2,910 1,834 1,066 932 912 649 558
Insurance ......................................... 1,201 1,338 398 400 403 423 418
Data processing ................................... 4,307 2,488 1,683 1,293 1,331 1,114 971
Other ............................................. 10,563 7,571 3,853 3,555 3,155 2,987 2,767
Merger expenses ................................... -- 2,381 -- -- -- -- --
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
65,988 59,620 23,852 22,029 20,107 18,569 19,896
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Income before income taxes ........................ 26,758 34,466 7,242 8,037 11,479 12,032 12,522
Provision for income taxes ........................ 9,185 12,425 2,527 2,874 3,784 4,604 4,487
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Net income ........................................ $ 17,573 $ 22,041 $ 4,715 $ 5,163 $ 7,695 $ 7,428 $ 8,035
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
PER SHARE DATA:
Basic earnings per common share ................... $ 0.36 $ 0.44 $ 0.10 $ 0.11 $ 0.16 $ 0.15 $ 0.16
Diluted earnings per common share ................. $ 0.36 $ 0.43 $ 0.10 $ 0.11 $ 0.16 $ 0.15 $ 0.16
Dividends per common share ........................ $ 0.18 $ 0.18 $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.06
Average common shares and common stock
equivalents outstanding ........................ 49,063 51,191 48,888 48,940 49,279 50,666 51,201
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars per thousands, except per share amounts)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
9/30/00 12/31/99
---------------------------------------------------------------------------------- ----------- -----------
<S> <C> <C>
ASSETS
Cash and amounts due from depository institutions $ 40,858 $ 73,054
Interest-bearing deposits in other financial institutions 91,723 41,201
Federal funds sold -- 3,595
---------------------------------------------------------------------------------- ----------- -----------
Total cash and cash equivalents 132,581 117,850
Investments available-for-sale 836,653 792,125
Investments held to maturity (market value of $133,180 and $139,383 at
September 30, 2000 and December 31, 1999, respectively) 138,602 147,275
Loans - net 2,006,048 1,822,433
Loans held for sale (market value of $45,300 and $62,000 at September 30,
2000 and December 31, 1999, respectively) 45,300 62,000
Property and equipment - net 64,231 65,349
Other real estate owned - net 986 2,004
FHLB and FRB Stock 29,284 34,821
Goodwill - net 20,101 17,715
Bank owned life insurance 55,157 58,039
Deferred taxes - net 14,629 16,564
Accrued interest receivable 19,746 16,986
Other assets 33,662 39,051
---------------------------------------------------------------------------------- ----------- -----------
Total Assets $ 3,396,980 $ 3,192,212
---------------------------------------------------------------------------------- ----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 2,013,253 $ 2,064,936
Federal Home Loan Bank advances and other borrowings 487,879 618,996
Securities sold under agreement to repurchase 608,839 248,521
Senior debentures, net of unamortized issuance costs 20,534 20,531
Advances from borrowers for taxes and insurance 17,895 5,908
Bank drafts payable 15,581 11,208
Other liabilities 26,118 21,450
---------------------------------------------------------------------------------- ----------- -----------
Total Liabilities 3,190,099 2,991,550
---------------------------------------------------------------------------------- ----------- -----------
Common stock $.01 par value; 500,000,000 shares authorized;
50,918,804 and 50,748,419 issued shares; outstanding 48,579,304
and 49,696,419 at September 30, 2000 and December 31, 1999,
respectively (net of treasury stock) 509 508
Treasury stock (2,339,500 and 1,052,000 shares repurchased at September 30,
2000 and December 31, 1999, respectively) (23) (11)
Additional paid in capital 116,742 124,931
Retained earnings 103,754 94,934
Accumulated other comprehensive loss, net of taxes (14,101) (19,700)
---------------------------------------------------------------------------------- ----------- -----------
Total Shareholders' Equity 206,881 200,662
---------------------------------------------------------------------------------- ----------- -----------
Total Liabilities and Shareholders' Equity $ 3,396,980 $ 3,192,212
---------------------------------------------------------------------------------------------------------------
</TABLE>
