EXHIBIT 99.1
[OMITTED LOGO]
For Further Information call:
Richard J. Haskins, CFO
(561) 802-5840
Mark P. Snelling, Controller
(561) 650-2314
News Release
For: Republic Security Financial Corporation
West Palm Beach, Florida, 33401
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Republic Security Financial Corporation
Announces Second Quarter Earnings
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West Palm Beach, FL. July 14, 2000- Republic Security Financial
Corporation ("Republic") (NASDAQ: RSFC), parent to Republic Security Bank, today
announced net income of $5.2 million or $0.11 diluted earnings per common share
for the three months ended June 30, 2000 compared to net income of $8.5 million
or $0.17 diluted earnings per common share for the three months ended June 30,
1999. Net income was $12.9 million or $0.26 diluted earnings per common share
for the six months ended June 30, 2000 compared to $14.0 million or $0.27
diluted earnings per common share for the six months ended June 30, 1999.
Net interest income decreased $3.0 million for the six months ended
June 30, 2000 compared to the six months ended June 30, 1999, and decreased $2.5
million for the three months ended June 30, 2000 compared to the three months
ended June 30, 1999. The decrease in net interest income for the three and six
months ended June 30, 2000 compared to the three and six months ended June 30,
1999 is due primarily to an increase in the cost of interest-bearing liabilities
in connection with six Federal Reserve interest rate hikes since June 1999, as
well as the purchase of certain assets generating fee income rather than
interest income. Net interest spread decreased to 2.51% for the three months
ended June 30, 2000 compared to 2.98% for the three months ended June 30, 1999,
again the result of the Federal Reserve interest rate hikes. During this same
period, net interest margin declined from 3.64% to 3.03%. Non-interest income
increased $1.0 million for the three months ended June 30, 2000 compared to the
three months ended June 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, increased approximately $1.6 million for the three months
ended June 30, 2000 compared to the three months ended June 30, 1999. Operating
expenses increased $3.0 million for the three months ended June 30, 2000
compared to the three months ended June 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.
<PAGE>
Provision for loan losses increased $1.2 million for the six months
ended June 30, 2000 compared to the six months ended June 30, 1999 and $0.7
million for the three months ended June 30, 2000 compared to the three months
ended June 30, 1999. This increase in provision expense was primarily due to
loan growth, resulting in a reduction of non-performing assets as a percent of
total assets for both periods.
Rudy E. Schupp, Chairman and CEO of Republic said, "During the second
quarter, we completed the acquisitions of Spectrum Financial Corporation and
marine finance lender, National Horizon, Inc., which was merged into First New
England Financial. Spectrum is a specialized financial services company engaged
in providing receivable-based commercial financing and related fee-based
services. The addition of these businesses is consistent with our strategy to
improve revenue growth through both traditional and non-traditional fee
generation. We are also pleased to note that as a percentage of total assets,
our non-performing assets significantly decreased from both the first quarter
and the quarter ended June 30, 1999."
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>
<TABLE>
<CAPTION>
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars in thousands, except per share amounts)
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For the Six Months
Ended For the Three Months Ended
For the Period Ended 06/30/00 6/30/99 6/30/00 3/31/00 12/31/99 9/30/99 6/30/99
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<S> <C> <C> <C> <C> <C> <C> <C>
Net income $ 12,858 $ 14,006 $ 5,163 $ 7,695 $ 7,428 $ 8,035 $ 8,454
Net income excluding merger related expenses(1) 12,858 16,399 5,163 7,695 7,428 8,035 8,454
Net interest income 46,412 49,370 22,920 23,492 24,257 24,459 25,426
Provision for loan losses 2,000 800 1,000 1,000 450 300 300
Non-interest income 17,240 13,098 8,146 9,094 6,794 8,259 7,124
Operating expenses(2) 42,136 36,255 22,029 20,107 18,569 19,896 19,041
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Common Share Data
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Basic earnings per share $ 0.26 $ 0.28 $ 0.11 $ 0.16 $ 0.15 $ 0.16 $ 0.17
Diluted earnings per share $ 0.26 $ 0.27 $ 0.11 $ 0.16 $ 0.15 $ 0.16 $ 0.17
Stated book value per share $ 4.11 $ 4.13 $ 4.11 $ 4.00 $ 4.02 $ 4.19 $ 4.13
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At Period End
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Assets $3,385,301 $3,083,624 $3,385,301 $3,241,459 $3,192,212 $3,052,135 $3,083,624
Investments available-for-sale 852,869 685,849 852,869 795,174 792,125 652,182 685,849
Investments held to maturity 141,484 151,816 141,484 145,383 147,275 149,133 151,816
Loans 2,058,017 1,883,039 2,058,017 1,964,872 1,906,734 1,888,200 1,883,039
Allowance for loan losses 23,193 25,625 23,193 22,253 22,301 24,160 25,625
Deposits 1,953,947 2,213,790 1,953,947 2,036,514 2,064,936 2,131,110 2,213,790
Borrowings 1,174,750 594,417 1,174,750 957,398 888,048 646,853 594,417
Stockholders' equity 200,832 209,467 200,832 195,698 200,662 212,916 209,467
Common shares outstanding 48,579 50,569 48,579 48,758 49,696 50,662 50,569
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Average Balances
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Assets $3,244,797 $2,994,303 $3,311,585 $3,178,009 $3,084,688 $3,000,286 $2,993,761
Stockholders' equity 195,537 211,300 197,746 193,328 207,220 209,525 210,439
Interest-earning assets 2,951,395 2,795,797 3,022,883 2,879,906 2,851,708 2,789,662 2,795,204
Interest-bearing liabilities 2,665,250 2,413,901 2,722,475 2,608,025 2,487,315 2,406,495 2,393,395
Average common shares and common
stock equivalents outstanding 49,118 51,177 48,940 49,279 50,666 51,201 51,174
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Ratios % % % % % % %
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Return on average assets(1) 0.79 1.10 0.62 0.97 0.96 1.07 1.13
Return on total risk weighted assets(1) 1.39 1.95 1.12 1.64 1.56 1.84 2.01
Return on average stockholders' equity(1) 13.15 15.52 10.44 15.92 14.34 15.34 16.07
Net interest spread 2.66 2.90 2.51 2.81 2.80 2.92 2.98
Net interest margin 3.15 3.53 3.03 3.26 3.40 3.51 3.64
Equity to assets (period end) 5.93 6.79 5.93 6.04 6.29 6.98 6.79
Tier 1 leverage ratio (Bank only estimate) 6.02 6.62 6.02 6.39 6.53 6.70 6.62
Tier 1 risk based capital (Bank only estimate) 10.68 11.74 10.68 10.75 10.54 11.48 11.74
Total risk based capital (Bank only estimate) 11.95 13.01 11.95 11.96 11.73 12.75 13.01
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Asset Quality (period end)
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Non performing Loans ("NPL's) $ 12,352 $ 11,746 $ 12,352 $ 13,377 $ 16,369 $ 13,871 $ 11,746
Non performing Assets ("NPA's) 13,252 15,414 13,252 14,793 18,372 17,306 15,414
NPL's as a % of total loans 0.60% 0.87% 0.60% 0.68% 0.86% 0.73% 0.62%
NPA's as a % of total assets 0.39% 0.60% 0.39% 0.46% 0.58% 0.57% 0.50%
Allowance for loan losses as a % of total loans 1.13% 1.36% 1.13% 1.13% 1.17% 1.28% 1.36%
Allowance for loan losses as % of NPL's 187.77% 218.16% 187.77% 166.35% 136.24% 174.18% 218.16%
Net charge-offs to average loans 0.14% 0.09% 0.06% 0.09% 0.12% 0.07% 0.03%
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</TABLE>
(1) Excludes merger related and one time expenses of $2.4 million, net of
taxes, for the six months ended June 30, 1999.
(2) Excludes pre-tax merger related and one time expenses of approximately
$3.5 million for the six months ended June 30, 1999.
<PAGE>
<TABLE>
<CAPTION>
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars in thousands, except per share data)
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For the Six Months
Ended For the Three Months Ended
6/30/00 6/30/99 6/30/00 3/31/00 12/31/99 9/30/99 6/30/99
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<S> <C> <C> <C> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans $ 79,158 $ 79,513 $ 40,960 $ 38,198 $ 37,587 $ 38,167 $ 39,622
Interest and dividends on investments 34,419 25,569 17,476 16,943 15,985 13,704 13,171
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
113,577 105,082 58,436 55,141 53,572 51,871 52,793
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Interest Expense:
Interest on deposits 37,156 43,313 18,476 18,680 18,825 19,560 20,726
Interest on borrowings 30,009 12,399 17,040 12,969 10,490 7,852 6,641
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67,165 55,712 35,516 31,649 29,315 27,412 27,367
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Net interest income 46,412 49,370 22,920 23,492 24,257 24,459 25,426
Provision for loan losses 2,000 800 1,000 1,000 450 300 300
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Net interest income after provision for loan losses 44,412 48,570 21,920 22,492 23,807 24,159 25,126
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Non-interest Income:
Service charges on deposit accounts 6,576 5,965 3,352 3,224 3,483 3,293 2,848
Gain on sale of loans and servicing 1,529 2,315 1,021 508 737 2,046 1,363
Gain on sale of investments 373 177 52 321 85 789 81
Other income 8,762 4,641 3,721 5,041 2,489 2,131 2,832
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17,240 13,098 8,146 9,094 6,794 8,259 7,124
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Operating Expenses:
Employee compensation and benefits 19,162 17,965 10,051 9,111 8,810 9,548 8,955
Occupancy and equipment 9,632 9,286 5,041 4,591 4,126 4,912 4,864
Professional fees 839 919 475 364 158 325 503
Advertising and promotions 522 656 282 240 302 397 358
Communications 1,844 1,276 932 912 649 558 561
Insurance 803 920 400 403 423 418 458
Data processing 2,624 1,517 1,293 1,331 1,114 971 969
Other 6,710 4,804 3,555 3,155 2,987 2,767 2,373
Merger expenses -- 2,381 -- -- -- -- --
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
42,136 39,724 22,029 20,107 18,569 19,896 19,041
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Income before income taxes 19,516 21,944 8,037 11,479 12,032 12,522 13,209
Provision for income taxes 6,658 7,938 2,874 3,784 4,604 4,487 4,755
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
Net income $ 12,858 $ 14,006 $ 5,163 $ 7,695 $ 7,428 $ 8,035 $ 8,454
--------------------------------------------------- -------- -------- -------- -------- -------- -------- --------
PER SHARE DATA:
Basic earnings per common share $ 0.26 $ 0.28 $ 0.11 $ 0.16 $ 0.15 $ 0.16 $ 0.17
Diluted earnings per common share $ 0.26 $ 0.27 $ 0.11 $ 0.16 $ 0.15 $ 0.16 $ 0.17
Dividends per common share $ 0.12 $ 0.12 $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.06
Average common shares and common stock equivalents
outstanding 49,118 51,177 48,940 49,279 50,666 51,201 51,174
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
REPUBLIC SECURITY FINANCIAL CORPORATION
Financial Highlights (dollars in thousands, except share amounts)
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6/30/00 12/31/99
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<S> <C> <C>
ASSETS
Cash and amounts due from depository institutions $ 44,985 $ 73,054
Interest- bearing deposits in other financial institutions 61,664 41,201
Federal funds sold -- 3,595
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Total cash and cash equivalents 106,649 117,850
Investments available-for-sale 852,869 792,125
Investments held to maturity (market value of $135,276 and $139,383 at June 30,
2000 and December 31, 1999, respectively) 141,484 147,275
Loans - net 1,986,024 1,822,433
Loans held for sale (market value of $48,800 and $62,000 at June 30, 2000 and
December 31, 1999, respectively) 48,800 62,000
Property and equipment - net 66,305 65,349
Other real estate owned - net 900 2,004
Federal Home Loan Bank stock 31,868 34,821
Goodwill - net 20,508 17,715
Bank owned life insurance 54,395 58,039
Deferred taxes - net 16,923 16,564
Accrued interest receivable 19,006 16,986
Other assets 39,570 39,051
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Total Assets $ 3,385,301 $ 3,192,212
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 1,953,947 $ 2,064,936
Federal Home Loan Bank advances and other borrowings 546,554 618,996
Securities sold under agreement to repurchase 607,732 248,521
Senior debentures, net of unamortized issuance costs 20,464 20,531
Advances from borrowers for taxes and insurance 13,945 5,908
Bank drafts payable 13,410 11,208
Other liabilities 28,417 21,450
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Total Liabilities 3,184,469 2,991,550
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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 June 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 June 30, 2000
and December 31, 1999, respectively) (23) (11)
Additional paid in capital 116,742 124,931
Retained earnings 101,950 94,934
Accumulated other comprehensive loss, net of taxes (18,346) (19,700)
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Total Shareholders' Equity 200,832 200,662
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Total Liabilities and Shareholders' Equity $ 3,385,301 $ 3,192,212
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</TABLE>
