FORM 8-K
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
October 19, 1995
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FIRST REPUBLIC BANCORP INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-15882 94-2964497
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
388 Market Street
San Francisco, CA 94111
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(Address of principal executive office) (Zip Code)
(415) 392-1400
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(Registrant's telephone number, including area code)
Not applicable
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(Former name, former address, if changed since last report)
<PAGE>
Item 5. Other Events
First Republic Bancorp Inc. hereby files with the Securities and
Exchange Commission (the "Commission") its press release, dated
October 19, 1995, concerning its earnings release for the second
quarter ended September 30,1995, as distributed on October 19,
1995.
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.
First Republic Bancorp Inc.
(Registrant)
Date: October 19, 1995
---------------------------------
Willis H. Newton, Jr.
Senior Vice President and
Chief Financial Officer
<PAGE>
FOR IMMEDIATE RELEASE
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FIRST REPUBLIC BANCORP REPORTS
THIRD QUARTER AND NINE MONTHS 1995 RESULTS
Common Stock Symbol - FRC
New York/Pacific Exchanges
San Francisco, California, October 19, 1995 - First Republic
Bancorp Inc. today reported net income of $1,321,000 for the third
quarter ended September 30, 1995, compared with $2,552,000 for the
same quarter in 1994. Fully diluted earnings per share (EPS) were
$0.17 for 1995, compared to $0.28 for the similar period in 1994.
A net loss of $435,000 was reported for the nine months of 1995,
compared with net income of $5,741,000 for the first nine months of
1994. In the nine months ended September 30, 1995, the Company has
made loss provisions totalling $12,715,000 and used approximately
$10,130,000 of its previously established reserves to reduce the
carrying basis of specific assets. Approximately 68% of such 1995
writedowns related to multifamily properties located in Los Angeles
County which were adversely affected by the Northridge earthquake.
For the nine month period, fully diluted earnings(loss) per share was
($0.06) for 1995 compared to $0.66 for 1994.
The Company's quarter-end ratio of capital to risk-adjusted
assets was 15.14%. At September 30, 1995, total capital, including
subordinated debentures and reserves, was $188,647,000. Tangible book
value per share was $14.56 at September 30, 1995.
Total assets of First Republic Bancorp Inc. were $1,842,464,000
at September 30, 1995. Substantially all of the Company's loan
portfolio consists of adjustable rate, first trust deed, real estate
secured California and Nevada loans, 59% of which were secured by
single family residences.
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FIRST REPUBLIC BANCORP INC. Page 2
Since the earthquake, the Company's chargeoffs related to the
multifamily earthquake impacted portfolio have totalled approximately
$13,000,000, which represents 71% of total chargeoffs recorded in the
period January 1994 through September 1995. At September 30, 1995,
the remaining multifamily earthquake impacted assets represented
approximately 2.6% of the Company's total assets.
At September 30, 1995, nonaccruing loans totalled $38,147,000 and
foreclosed REO totalled $12,084,000, collectively 2.73% of total
assets. Nonaccruing assets included approximately $21,607,000 of
loans and $2,903,000 of REO adversely impacted by the earthquake.
During the third quarter, the Company sold $4,233,000 of foreclosed
REO and generated net proceeds in excess of the written down basis of
the assets by approximately 15%. During the quarter, the Company
added $2,500,000 to its reserves and recorded additional writedowns,
net of recoveries, of $1,990,000. At September 30, 1995, after such
writedowns, the Company's reserves totalled approximately $17,454,000,
up from $16,944,000 at June 30, 1995.
At September 30, 1995, the Company's nonaccrual loans included
$18,616,000 of loans which had been restructured, 75% as a result of
the earthquake, by waiver or deferral of interest equivalent to more
than four months and by the forgiveness of principal in certain cases.
As a result of the terms of these restructurings, such loans will be
reported as nonaccrual loans until a satisfactory payment history is
achieved and the Company feels its recorded investment in the loans is
secure. During the third quarter of 1995, the Company collected
interest payments on these loans equal to an average annualized yield
of approximately 7.0% on the recorded investment in these loans.
At September 30, 1995, the Company had restructured performing
loans of $16,008,000, 57% of which have been restructured as a result
of the earthquake, and accruing single family loans more than 90 days
past due of $2,899,000.
For the third quarter, total interest income increased to
$36,090,000 in 1995 from $28,124,000 in 1994; net interest income was
$8,881,000 in 1995 and $9,270,000 in 1994. The Company's net interest
spread was 1.63% for the third quarter of 1995, compared to 1.38% for
the second quarter of 1995 and
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FIRST REPUBLIC BANCORP INC. Page 3
2.14% for all of 1994. Although net interest income and net interest spread
in the third quarter of 1995 increased compared to the second quarter of 1995,
the lower level in 1995 versus 1994 resulted from the average rate paid on
Federal Home Loan Bank ("FHLB") advances exceeding the yields on certain of
the Company's loans, and the effect of reduced initial yields on new
single family adjustable rate loans. The Company anticipates that its
net interest spread will continue to improve for the next couple of
quarters, presuming the current interest rate environment continues.
The Company's non-interest expense totalled $5,374,000 for the
third quarter of 1995, compared to $4,901,000 for the same period in
1994. As a percentage of average assets, the Company's general and
administrative expenses were 1.02% for the third quarter of 1995,
compared to 1.08% for the second quarter of 1995 and 1.28% for all of
1994.
For the third quarter of 1995, the Company originated
$154,567,000 of loans, compared with $172,209,000 for the same period
in 1994. Total loans originated for the first nine months were
$433,123,000 in 1995 compared with $623,763,000 in 1994. The Company
sold $41,979,000 of loans during the third quarter of 1995, compared
with $25,071,000 in the third quarter of 1994. The Company recorded
net gains of $9,000 on these loan sales in the third quarter of 1995,
compared to net gains of $356,000 during the third quarter of 1994.
For the first nine months, loan sales were $77,356,000 in 1995 and
$216,262,000 in 1994, resulting in net losses of $36,000 in 1995 and
net gains of $482,000 in 1994. The mortgage servicing portfolio of
real estate loans serviced for third-party investors was $821,419,000
at September 30, 1995.
First Republic Bancorp Inc. functions as a direct lender as well
as a mortgage banker through two FDIC-insured, California and Nevada-chartered
industrial bank subsidiaries. First Republic Thrift & Loan
provides both loan and deposit services from nine locations in the San
Francisco, Los Angeles, Beverly Hills and San Diego areas. First
Republic Savings Bank provides both loan and deposit services from its
office located in Las Vegas, Nevada.
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FIRST REPUBLIC BANCORP INC. Page 4
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30 Ended September 30
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Financial Results 1995 1994 1995 1994
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<S> <C> <C> <C> <C>
Total Interest Income $ 36,090,000 $ 28,124,000 $ 102,306,000 $ 79,225,000
Net Interest Income $ 8,881,000 $ 9,270,000 $ 24,747,000 $ 28,970,000
Provision for Losses $ 2,500,000 $ 1,502,000 $ 12,715,000 $ 7,182,000
Net Income (Loss) $ 1,321,000 $ 2,552,000 $ (435,000) $ 5,741,000
Primary EPS $ 0.17 $ 0.32 $ (0.06) $ 0.71
============= ============= ============= =============
Fully-diluted EPS $ 0.17 $ 0.28 $ (0.06) $ 0.66
============= ============= ============= =============
Weighted Average Shares:
Primary 7,605,648 8,026,378 7,594,484 8,043,858
Fully-diluted 10,129,927 10,551,059 10,127,290 10,574,606
Operating Information
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(*Data Annualized)
Loan Origination Volume $ 154,567,000 $ 172,209,000 $ 433,123,000 $ 623,763,000
Avg. Assets Per Employee $ 12,554,000 $ 11,015,000 $ 12,342,000 $ 10,183,000
Return on Average Assets* 0.29% 0.64% (0.03%) 0.50%
Return on Average Common Equity* 4.96% 9.33% (0.54%) 7.12%
General and Administrative Expenses
as % of Average Assets* 1.02% 1.15% 1.08% 1.29%
Rates Earned/Paid
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Yield on Investments 7.00% 5.23% 6.74% 5.01%
Yield on Loans 8.16% 7.35% 7.90% 7.26%
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Earning Assets Yield 8.04% 7.10% 7.78% 7.03%
============ ============ ============ ============
Cost of Deposits 6.10% 4.83% 5.86% 4.65%
Cost of Borrowings 6.93% 5.51% 6.87% 4.99%
------------ ------------ ------------ ------------
Liability Costs 6.41% 5.11% 6.25% 4.79%
============ ============ ============ ============
Net Interest Spread 1.63% 1.99% 1.53% 2.24%
============ ============ ============ ============
Margin on Earning Assets 1.99% 2.34% 1.90% 2.57%
============ ============ ============ ============
</TABLE>
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FIRST REPUBLIC BANCORP INC. Page 5
<TABLE>
<CAPTION>
As of September 30,
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Financial Condition 1995 1994
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<S> <C> <C>
Total Loans $ 1,626,464,000 $ 1,434,581,000
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Total Assets $ 1,842,464,000 $ 1,638,666,000
=============== ===============
Loans Serviced for
Investors $ 821,419,000 $ 882,024,000
=============== ===============
Total Deposits $ 1,097,932,000 $ 902,296,000
=============== ===============
Stockholders' Equity $ 107,125,000 $ 110,309,000
Senior Subordinated Debentures 9,974,000 9,978,000
Subordinated Debentures 19,594,000 19,419,000
Convertible Subordinated Debentures 34,500,000 34,500,000
Reserves 17,454,000 14,306,000
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Total Capital $ 188,647,000 $ 188,512,000
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Capital-to-Assets Ratio 10.24 % 11.50 %
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Capital-to-Risk-Adjusted Assets 15.14 % 16.52 %
===== =====
Tangible Stockholders'
Equity Per Share $ 14.56 $ 14.29
=============== ===============
Number of Shares of
Common Stock Actually Outstanding 7,350,446 7,713,030
========= =========
</TABLE>
For further information call:
Willis H. Newton, Jr.
Senior Vice President and
Chief Financial Officer
388 Market Street
San Francisco, CA 94111
(415)392-1400
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