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
April 18, 1996
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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 April 18, 1996,
concerning its earnings release for the first quarter ended March 31,1996, as
distributed on April 18, 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: Apirl 18, 1996
-------------------------------------
Willis H. Newton, Jr.
Senior Vice President and
Chief Financial Officer
<PAGE>
FOR IMMEDIATE RELEASE
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FIRST REPUBLIC BANCORP REPORTS
FIRST QUARTER 1996 RESULTS
Common Stock Symbol - FRC
New York Stock Exchange
San Francisco, California, April 18, 1996 - First Republic Bancorp Inc.
today reported net income of $2,770,000 for the quarter ended March 31, 1996,
compared with $1,384,000 for the same quarter in 1995. Fully diluted earnings
per share (EPS) were $0.31 for 1996, compared to $0.18 for the similar period
in 1995. The 1996 earnings were higher than earnings a year ago primarily
because of higher net interest income.
The Company's quarter-end ratio of capital to risk-adjusted assets was
15.1%. At March 31, 1996, total capital, including subordinated debentures
and reserves, was $194,377,000. Tangible book value per share was $15.16 at
March 31, 1996.
Total assets of First Republic Bancorp were $1,972,611,000 at March 31,
1996. Substantially all of the Company's $1,731,192,000 loan portfolio
consists of first trust deed, real estate secured, California and Nevada
loans, 83% of which are housing related and approximately 87% of which are
adjustable within one year. The Company's asset growth continued to be
focused on single family home loans, which represent 61% of the loan portfolio
at March 31, 1996.
At March 31, 1996, nonaccruing loans totalled $32,066,000 and foreclosed
REO totalled $15,508,000, collectively 2.41% of total assets. Nonaccruing
assets included approximately $21,438,000 of loans and $6,340,000 of REO
adversely impacted by the Los Angeles earthquake. During the quarter, the
Company added $1,773,000 to its reserves and recorded chargeoffs, net of
recoveries, of $963,000. At March 31, 1996, after such writedowns, the
Company's reserves totalled $18,878,000, up from $18,068,000 at December 31,
1995.
The Company's nonaccruing loans include $21,313,000 of loans on which
interest payments were received during the first quarter at an average yield
of 6.4% on their recorded investment. These loans had been restructured by
waiver or deferral of interest, by interest rate 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.
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FIRST REPUBLIC BANCORP INC. Page 2
At March 31, 1996, the Company had restructured performing loans of
$6,349,000 and accruing single family loans more than 90 days past due of
$4,461,000.
The Company's deposits totalled $1,195,006,000 at March 31, 1996, increasing
at an annualized rate of 19% for the quarter. The Company operates eleven
retail branches in four metropolitan areas - San Francisco, Los Angeles, San
Diego, and Las Vegas - with nearly $110,000,000 of average deposits per
branch. At March 31, 1996, liquid money market checking and passbook accounts
represented 18.2% of total deposits.
For the first quarter of 1996, total interest income increased to
$38,658,000 from $31,956,000 in 1995, as a result of a larger average asset
base earning a higher average rate. Net interest income increased to
$11,256,000 in the first quarter of 1996, compared to $9,934,000 for the
fourth quarter of 1995 and $8,216,000 for the first quarter of 1995. The
Company's net interest spread was 1.96% for the first quarter of 1996,
compared to 1.81% for the fourth quarter of 1995, 1.60% for all of 1995, and
1.59% for the first 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 $6,010,000 for the first quarter
of 1996, compared to $5,338,000 for the same period in 1995. As a percentage
of average assets, recurring general and administrative expenses were 1.09%
for the first quarter of 1996 compared with 1.14% for the first quarter of
1995 and 1.07% for all of 1995.
For the first quarter of 1996, the Company originated $198,941,000 of loans
compared with $107,269,000 for the same period in 1995. Loan originations in
the first quarter of 1996 included both interim fixed rate and adjustable rate
single family mortgages retained on the Company's balance sheet. The
Company's loan portfolio has increased at an annualized rate of 12% since
December 31, 1995. The Company sold $42,374,000 of loans during the first
quarter of 1996, compared with $10,556,000 in the first quarter of 1995. The
Company recorded net gains of $172,000 on the sale of loans in the first
quarter of 1996, compared to gains of $2,000 during the first quarter of 1995.
For the first quarter of 1996, gain on sale of loans includes gains of
$293,000 resulting from the value of mortgage servicing rights on loans
originated and sold in accordance with a new accounting pronouncement. The
portfolio of real estate loans serviced for third-party investors was
$788,199,000 at March 31, 1996.
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.
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FIRST REPUBLIC BANCORP INC. Page 3
<TABLE>
<CAPTION>
Three Months
Ended March 31
--------------------------------
Financial Results 1996 1995
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<S> <C> <C>
Total Interest Income $ 38,658,000 $ 31,956,000
Net Interest Income $ 11,256,000 $ 8,216,000
Provision for Losses $ 1,773,000 $ 1,465,000
REO Costs and Losses $ 726,000 $ 413,000
Net Income $ 2,770,000 $ 1,384,000
Primary EPS $ 0.36 $ 0.18
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Fully-diluted EPS $ 0.31 $ 0.18
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Weighted Average Shares:
Primary 7,595,620 7,589,166
Fully-diluted 10,119,887 10,129,792
Operating Information
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Loan Origination Volume $ 198,941,000 $ 107,269,000
Avg. Assets Per Employee $ 12,596,000 $ 11,997,000
Net Income Per Employee* $ 71,900 $ 38,500
Return on Average Assets* 0.57% 0.32%
Return on Average Common Equity* 10.06% 5.11%
General and Administrative Expenses
as % of Average Assets* 1.09% 1.14%
Rates Earned/Paid*
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Yield on Investments 6.86% 6.71%
Yield on Loans 8.22% 7.60%
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Earning Assets Yield 8.10% 7.50%
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Cost of Deposits 5.90% 5.50%
Cost of Borrowings 6.54% 6.55%
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Liability Costs 6.14% 5.91%
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Net Interest Spread 1.96% 1.59%
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Margin on Earning Assets 2.33% 1.95%
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</TABLE>
* Quarterly Data is Annualized
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FIRST REPUBLIC BANCORP INC. Page 4
<TABLE>
<CAPTION>
As of March 31,
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Financial Condition 1996 1995
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<S> <C> <C>
Total Loans $ 1,731,192,000 $ 1,559,529,000
=============== ===============
Total Assets $ 1,972,611,000 $ 1,763,700,000
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Loans Serviced for Investors $ 788,199,000 $ 828,067,000
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Total Deposits $ 1,195,006,000 $ 999,367,000
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FHLB Advances $ 581,530,000 $ 576,530,000
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Stockholders' Equity $ 111,462,000 $ 108,304,000
Senior Subordinated Debentures 9,971,000 9,974,000
Subordinated Debentures 19,566,000 19,699,000
Convertible Subordinated Debentures 34,500,000 34,500,000
Reserves 18,878,000 14,368,000
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Total Capital $ 194,377,000 $ 186,845,000
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Capital-to-Risk-Adjusted Assets 15.06% 15.78%
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Tangible Stockholders' Equity
Per Share Outstanding $ 15.16 $ 14.65
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Shares of Common Stock Outstanding 7,348,974 7,385,818
========= =========
</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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