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
July 18, 1996
- --------------
FIRST REPUBLIC BANCORP INC.
---------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-15882 94-2964497
- -------------------------- ----------- ---------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
388 Market Street
San Francisco, CA 94111
------------------------------
(Address of principal executive office) (Zip Code)
(415) 392-1400
--------------
(Registrant's telephone number, including area code)
Not applicable
--------------
(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 July 18, 1996,
concerning its earnings release for the second quarter and six months ended
June 30,1996, as distributed on July 17, 1996.
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: July 18, 1996 ----------------------------------------
Willis H. Newton, Jr.
Senior Vice President and
Chief Financial Officer
<PAGE>
FOR IMMEDIATE RELEASE
- ---------------------
Common Stock Symbol - FRC
New York Stock Exchange
FIRST REPUBLIC BANCORP REPORTS
SECOND QUARTER 1996 RESULTS
San Francisco, California, July 17, 1996 - First Republic Bancorp Inc. today
reported net income of $3,001,000 for the quarter ended June 30, 1996,
compared with a net loss of ($3,140,000) for the same quarter in 1995. For
the second quarter, fully diluted earnings per share was $0.33 for 1996,
compared to a net loss per share of $(0.41) for 1995. The Company reported a
net loss for the second quarter of 1995 primarily due to a provision for loan
losses of $8,750,000, compared to a provision of $1,815,000 in the second
quarter of 1996. Additionally, the Company's net interest income for the
second quarter was $4,142,000 higher in 1996 than in 1995.
Net income of $5,771,000 was reported for the six months of 1996, compared
with a net loss of ($1,756,000) for the first six months of 1995. For the six
month period, fully diluted earnings per share was $0.64 for 1996 compared to
a net loss per share of $(0.23) for 1995.
The Company's quarter-end ratio of capital to risk-adjusted assets was
14.80%. At June 30, 1996, total capital, including subordinated debentures
and reserves, was $197,822,000. Tangible book value per share was $15.56 at
June 30, 1996.
Total assets of First Republic Bancorp were $2,064,209,000 at June 30, 1996.
Substantially all of the Company's loan portfolio consists of first trust
deed, real estate secured, California and Nevada loans, 84% of which are
housing related and approximately 85% of which are adjustable within one year.
The Company's asset growth continued to be focused on single family home
loans, which represent 64% of the loan portfolio at June 30, 1996.
At June 30, 1996, nonaccruing loans totalled $28,578,000 and foreclosed
REO totalled $14,301,000, collectively 2.08% of total assets. Nonaccruing
assets included $18,457,000 of loans and $4,968,000 of REO adversely impacted
by the Los Angeles earthquake. During the quarter, the Company added
$1,815,000 to its reserves and recorded chargeoffs, net of recoveries, of
$1,375,000. At June 30, 1996, after such writedowns, the Company's reserves
totalled $19,318,000, up from $18,068,000 at December 31, 1995.
The Company's nonaccruing loans include $16,732,000 of loans on which
interest payments were received during the second quarter at an average
payment rate of 8.2% on their recorded investment. These loans had been
restructured by waiver or deferral of interest, by interest rate
MORE
<PAGE>
FIRST REPUBLIC BANCORP INC. Page 2
concessions, or by the forgiveness of principal in certain cases. As a result
of the terms of these restructurings, such loans will be reported as
nonaccrual until a satisfactory payment history is achieved and the Company
believes its recorded investment in the loans is secure.
At June 30, 1996, the Company had restructured performing loans of
$7,397,000. At such date, there were no accruing single family loans more
than 90 days past due.
The Company's deposits totalled $1,254,523,000 at June 30, 1996. The
Company operates eleven retail branches in four metropolitan areas - San
Francisco, Los Angeles, San Diego, and Las Vegas - with over $114,000,000 of
average deposits per branch. At June 30, 1996, money market checking and
passbook accounts represented 19% of total deposits.
For the second quarter of 1996, total interest income increased to
$39,324,000 from $34,260,000 in 1995, as a result of a larger average asset
base earning a higher average rate. Net interest income increased to
$11,792,000 in the second quarter of 1996, compared to $7,650,000 for the
second quarter of 1995. The Company's net interest spread was 1.99% for the
second quarter of 1996, compared to 1.96% for the first quarter of 1996, and
1.38% for the second quarter of 1995. The Company's net interest spread has
gradually increased each quarter since the second quarter of 1995.
The Company's non-interest expense totalled $5,882,000 for the second
quarter of 1996, compared to $5,392,000 for the same period in 1995. As a
percentage of average assets, recurring general and administrative expenses
were 1.14% for the second quarter of 1996 compared with 1.08% for the second
quarter of 1995.
For the second quarter of 1996, the Company originated $220,779,000 of loans
compared with $171,287,000 for the same period in 1995. Total loans
originated for the first six months were $419,720,000 in 1996 compared with
$278,556,000 in 1995. The Company sold $10,456,000 of loans during the second
quarter of 1996, compared with $24,821,000 in the second quarter of 1995 and
recorded net gains of $76,000 on these loan sales in the second quarter of
1996, compared to net losses of ($47,000) during the second quarter of 1995.
In 1996, gain on sale of loans includes gains of $80,000 in the second quarter
and $373,000 for the first six months resulting from recording the value of
mortgage servicing rights retained on loans originated and sold under a new
accounting pronouncement effective for 1996. The portfolio of real estate
loans serviced for third-party investors was $767,710,000 at June 30, 1996,
compared to $821,569,000 at June 30, 1995.
First Republic Bancorp Inc. functions as a direct lender as well as a
mortgage banker through two FDIC-insured, industrial bank subsidiaries
chartered in California and Nevada. First Republic Thrift & Loan provides
both loan and deposit services from ten 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.
MORE
<PAGE>
FIRST REPUBLIC BANCORP INC. Page 3
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30 Ended June 30
---------------------------- ----------------------------
Financial Results 1996 1995 1996 1995
- ----------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Total Interest Income $ 39,324,000 $ 34,260,000 $ 77,982,000 $ 66,216,000
Net Interest Income $ 11,792,000 $ 7,650,000 $ 23,048,000 $ 15,866,000
Provision for Losses $ 1,815,000 $ 8,750,000 $ 3,588,000 $ 10,215,000
Net Income (Loss) $ 3,001,000 $ (3,140,000) $ 5,771,000 $ (1,756,000)
Primary EPS $ 0.39 $ (0.41) $ 0.76 $ (0.23)
============ ============ ============ ============
Fully diluted EPS $ 0.33 $ (0.41) $ 0.64 $ (0.23)
============ ============ ============ ============
Weighted Average Shares:
Primary 7,655,491 7,589,397 7,625,556 7,589,115
Fully diluted 10,238,497 10,122,912 10,179,192 10,126,185
Operating Information
- ---------------------
(*Data Annualized)
Loan Origination Volum $220,779,000 $171,287,000 $419,720,000 $278,556,000
Avg. Assets Per Employee* $ 12,645,000 $ 12,382,000 $ 12,620,000 $ 12,190,000
Net Income Per Employee* $ 75,500 -- $ 73,700 --
Return on Average Assets* 0.60% (0.70)% 0.58% (0.20)%
Return on Average Common Equity* 10.61% (11.59)% 10.34% (3.24)%
General and Administrative Expenses
as % of Average Assets* 1.14% 1.08% 1.12% 1.11%
Rates Earned/Paid
- -----------------
Yield on Investments 6.98% 6.55% 6.92% 6.61%
Yield on Loans 8.04% 7.93% 8.13% 7.77%
------------ ------------ ------------ ------------
Earning Assets Yield 7.95% 7.79% 8.02% 7.65%
============ ============ ============ ============
Cost of Deposits 5.72% 5.97% 5.81% 5.74%
Cost of Borrowings 6.36% 7.13% 6.45% 6.84%
------------ ------------ ------------ ------------
Liability Costs 5.96% 6.41% 6.05% 6.17%
============ ============ ============ ============
Net Interest Spread 1.99% 1.38% 1.97% 1.48%
============ ============ ============ ============
Margin on Earning Assets 2.36% 1.76% 2.34% 1.85%
=========== ============ ============ ============
</TABLE>
MORE
<PAGE>
FIRST REPUBLIC BANCORP INC. Page 4
<TABLE>
<CAPTION>
As of June 30,
----------------------------------
Financial Condition 1996 1995
- ------------------- -------------- --------------
<S> <C> <C>
Total Loans $1,834,407,000 $1,603,906,000
============== ==============
Total Assets $2,064,209,000 $1,817,145,000
============== ==============
Loans Serviced for
Investors $ 767,710,000 $ 821,569,000
============== ==============
Total Deposits $1,254,523,000 $1,051,491,000
============== ==============
Stockholders' Equity $ 114,529,000 $ 105,324,000
Senior Subordinated Debentures 9,966,000 9,974,000
Subordinated Debentures 19,509,000 19,649,000
Convertible Subordinated Debentures 34,500,000 34,500,000
Reserves 19,318,000 16,944,000
-------------- --------------
Total Capital $ 197,822,000 $ 186,391,000
============== ==============
Capital-to-Risk-Adjusted Assets 14.80 % 15.00 %
===== =====
Tangible Stockholders'
Equity Per Share Outstanding $ 15.56 $ 14.33
============== ==============
Shares of Common Stock Outstanding 7,352,991 7,344,267
</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
# # # # # # # # # # # # #
