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 17, 1997
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)
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Item 5. Other Events
First Republic Bancorp Inc. hereby files with the Securities and Exchange
Commission (the "Commission") its press release, dated July 17, 1997,
concerning its earnings release for the second quarter and six months ended
June 30, 1997.
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 17, 1997 -----------------------------
Willis H. Newton, Jr.
Senior Vice President and
Chief Financial Officer
<PAGE>
FOR IMMEDIATE RELEASE
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Common Stock Symbol - FRC
New York Stock Exchange
FIRST REPUBLIC BANCORP REPORTS
SECOND QUARTER 1997 RESULTS
San Francisco, California, July 17, 1997 - First Republic Bancorp Inc.
today reported net income of $4,352,000 for the quarter ended June 30, 1997,
compared with net income of $3,001,000 for the same quarter in 1996. For the
second quarter, fully diluted earnings per share was $0.41 for 1997, compared
to $0.33 for 1996. The 1997 earnings were higher than earnings a year ago
primarily because of higher net interest income, lower provisions for losses,
and increased gains on the sale of loans, offset in part by higher operating
expenses and REO costs.
Net income of $8,372,000 was reported for the six months of 1997,
compared with $5,771,000 for the first six months of 1996. For the six month
period, fully diluted earnings per share was $0.79 for 1997 compared to $0.64
for 1996.
The Company's quarter-end ratio of capital to risk-adjusted assets was
14.1%. At June 30, 1997, total capital, including subordinated debentures and
reserves, was $208,484,000. Tangible book value per share was $16.56 at
June 30, 1997. During the second quarter of 1997, the Company repurchased
345,100 shares of its common stock.
Total assets of First Republic Bancorp were $2,238,033,000 at
June 30, 1997. 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 88% of which are adjustable
within one year. The Company's asset growth continued to be focused on single
family home loans, which represent 65% of the loan portfolio at June 30, 1997.
At June 30, 1997, nonaccruing loans totalled $19,764,000 and foreclosed
REO totalled $2,850,000, collectively 1.01% of total assets. During the
quarter, the Company's reserves increased $149,000 as a result of recoveries
exceeding chargeoffs. Reflecting the Company's strong asset quality, there
were no additional provisions to reserves during the second quarter. At
June 30, 1997, the Company's reserves totalled $18,501,000, or 0.93% of total
loans.
The Company's nonaccruing loans include $12,468,000 of loans on which
interest payments were received during the second quarter at an average payment
rate of over 10% on their written down recorded investment. Most of these
loans had been restructured by waiver or deferral of interest, by interest rate
concessions, or by the forgiveness of principal in certain cases.
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FIRST REPUBLIC BANCORP INC. Page 2
At June 30, 1997, the Company had restructured performing loans of
$2,459,000 and accruing single family loans more than 90 days past due of
$3,936,000.
First Republic operates thirteen retail branches in four metropolitan
areas - San Francisco, Los Angeles, San Diego, and Las Vegas. At June 30, 1997,
the Company's deposits totalled $1,404,592,000, of which NOW checking, money
market checking, and passbook accounts represented 25%.
For the second quarter of 1997, total interest income increased to
$42,833,000 from $39,324,000 in 1996, as the result of a larger average asset
base. Net interest income increased to $13,737,000 in the second quarter of
1997, compared to $11,792,000 for the second quarter of 1996. The Company's
net interest margin was 2.50% for the second quarter of 1997, compared to 2.36%
for the second quarter of 1996.
The Company's non-interest expense totalled $8,391,000 for the second
quarter of 1997, compared to $5,882,000 for the same period in 1996. Such
expense includes REO writedowns and costs of $1,201,000 in 1997 versus REO
costs net of gains of $160,000 in 1996. Also, over the past year, the
Company has added new branches and employees to expand its products and
services, and approximately $400,000 of nonrecurring costs, including costs
related to the Company's planned corporate reorganization, introduction of a
new corporate identity, and ultimate conversion to a commercial bank, were
incurred or accrued in the second quarter of 1997. As a percentage of average
assets, general and administrative expenses were 1.31% for the second quarter
of 1997 compared with 1.25% for the first quarter of 1997. The Company's
operating efficiency ratio, or net non-interest expense as a percentage of
net interest income and recurring non-interest income, was 49.1% for the
second quarter of 1997, compared to 49.5% for the first quarter of 1997.
For the second quarter of 1997, the Company originated $295,345,000 of
loans compared with $220,779,000 for the same period in 1996. Total loans
originated for the first six months were $495,918,000 in 1997 compared with
$419,720,000 in 1996. The Company sold $131,783,000 of loans during the
second quarter of 1997, compared with $10,456,000 in the second quarter of 1996
and recorded net gains of $1,162,000 on these loan sales in the second quarter
of 1997, compared to $76,000 during the second quarter of 1996. The portfolio
of real estate loans serviced for third-party investors was $934,014,000 at
June 30, 1997, compared to $767,710,000 at June 30, 1996.
First Republic Bancorp Inc. functions as a direct lender and private
banker as well as a mortgage banker through First Republic Savings Bank, its
FDIC-insured, Nevada chartered thrift company subsidiary. First Republic
Savings Bank provides both loan and deposit services in the San Francisco,
Los Angeles, Beverly Hills, and San Diego, California areas and in Las Vegas,
Nevada.
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FIRST REPUBLIC BANCORP INC. Page 3
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30 Ended June 30
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Financial Results 1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Total Interest Income $ 42,833,000 $ 39,324,000 $ 84,288,000 $ 77,982,000
Net Interest Income $ 13,737,000 $ 11,792,000 $ 26,746,000 $ 23,048,000
Provision for Losses $ -- $ 1,815,000 $ 500,000 $ 3,588,000
Net Income $ 4,352,000 $ 3,001,000 $ 8,372,000 $ 5,771,000
Primary EPS $ 0.41 $ 0.39 $ 0.84 $ 0.76
============ ============ ============ ============
Fully diluted EPS $ 0.41 $ 0.33 $ 0.79 $ 0.64
============ ============ ============ ============
Weighted Average Shares:
Primary 10,643,526 7,655,491 9,975,268 7,625,556
Fully diluted 10,710,972 10,238,497 10,691,008 10,179,192
Operating Information
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Loan Origination Volume $295,345,000 $220,779,000 $495,918,000 $419,720,000
Avg. Assets Per Employee* $ 12,704,000 $ 12,645,000 $ 12,850,000 $ 12,620,000
Net Income Per Employee* $ 100,600 75,500 $ 98,500 73,700
Return on Average Assets* 0.79% 0.60% 0.77% 0.58%
Return on Average Common Equity* 10.64% 10.61% 10.95% 10.34%
Efficiency Ratio 49.1% 41.4% 49.2% 43.8%
General and Administrative Expenses
as % of Average Assets* 1.31% 1.14% 1.28% 1.12%
Rates Earned/Paid*
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Yield on Investments 6.60% 6.92% 6.62% 6.84%
Yield on Loans 7.99% 8.04% 7.91% 8.13%
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Earning Assets Yield 7.84% 7.93% 7.78% 7.99%
============= ============= ============= =============
Cost of Deposits 5.62% 5.72% 5.62% 5.81%
Cost of Borrowings 6.19% 6.22% 6.09% 6.32%
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Liability Costs 5.80% 5.90% 5.77% 5.99%
============= ============= ============= =============
Net Interest Spread 2.04% 2.03% 2.01% 2.00%
============= ============= ============= =============
Margin on Earning Assets 2.50% 2.36% 2.43% 2.34%
============= ============= ============= =============
* Data is Annualized.
</TABLE>
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FIRST REPUBLIC BANCORP INC. Page 4
<TABLE>
<CAPTION>
As of June 30,
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Financial Condition 1997 1996
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<S> <C> <C>
Total Loans $ 1,980,364,000 $ 1,834,407,000
=============== ===============
Total Assets $ 2,238,033,000 $ 2,064,209,000
=============== ===============
Loans Serviced for
Investors $ 934,014,000 $ 767,710,000
=============== ===============
Total Deposits $ 1,404,592,000 $ 1,254,523,000
=============== ===============
Stockholders' Equity $ 160,556,000 $ 114,529,000
Senior Subordinated Debentures 9,966,000 9,966,000
Subordinated Debentures 19,461,000 19,509,000
Convertible Subordinated Debentures -- 34,500,000
Reserves 18,501,000 19,318,000
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Total Capital $ 208,484,000 $ 197,822,000
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Capital-to-Risk-Adjusted Assets 14.12 % 14.79 %
===== =====
Tangible Stockholders'
Equity Per Share Outstanding $ 16.56 $ 15.56
============== ===============
Shares of Common Stock Outstanding 9,692,934 7,352,991
</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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