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
January 29, 1997
- ----------------
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
January 28, 1997, concerning its earnings release for the fourth
quarter and year ended December 31, 1996, as distributed on
January 28, 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: January 29, 1997
--------------------------------
Willis H. Newton, Jr.
Senior Vice President and
Chief Financial Officer
<PAGE>
FOR IMMEDIATE RELEASE
- ---------------------
FIRST REPUBLIC BANCORP REPORTS RECORD
FOURTH QUARTER AND FULL YEAR 1996 RESULTS
Common Stock Symbol - FRC
New York/Pacific Exchanges
San Francisco, California, January 28, 1997 - First Republic
Bancorp Inc. today reported net income of $12,507,000 for the
year ended December 31, 1996 compared with $1,170,000 in 1995.
Fully-diluted earnings per share (EPS) were $1.37 for 1996,
compared with $0.15 for 1995. For the fourth quarter, net income
was $3,461,000 in 1996, compared with $1,605,000 in 1995, and
fully-diluted EPS was $0.37 in 1996 versus $0.20 in 1995.
For both the fourth quarter and full year periods of 1996, the
increase in the Company's results, as compared to 1995, is
attributed primarily to an increased level of net interest income
and to lower loan loss provisions. In 1996, the Company
experienced generally improved economic conditions in its
geographic market areas, and originated and sold a higher level
of loans.
The Company's year-end ratio of capital to risk-adjusted
assets was 14.80%. At December 31, 1996, total capital,
including subordinated debentures and reserves, was $204,096,000.
Tangible book value per share was $16.46 at December 31, 1996.
Total assets of First Republic Bancorp Inc. were
$2,156,599,000 at December 31, 1996. Substantially all of the
Company's loan portfolio consists of first trust deed, real
estate secured, California and Nevada loans, 85% 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 grew to 66% of the loan portfolio at
December 31, 1996 from 60% a year ago.
The Company's deposits totalled $1,353,148,000 at December 31, 1996.
The Company operates twelve retail branches in four metropolitan areas -
San Francisco, Los Angeles, San Diego, and Las Vegas - with over
$112,500,000 of average deposits per branch. At December 31, 1996,
NOW checking, money market checking and passbook accounts represented
21% of total deposits.
At December 31, 1996, nonaccruing loans and REO totalled
$28,567,000, or 1.32% of total assets, which is a decline from
2.46% of total assets at December 31, 1995. The Company's
nonaccruing loans include $16,193,000 of loans on which interest
payments were received during the fourth quarter at an average
payment rate of 8.6% on their 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. 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.
During the fourth quarter, the Company sold 16 foreclosed REO
properties for a total of $13.0 million and generated net
proceeds in excess of the written down basis of the assets by
6.0%. During the
MORE
<PAGE>
FIRST REPUBLIC BANCORP INC. Page 2
quarter, the Company added $750,000 to its reserves and recorded
net chargeoffs of $1,495,000. At December 31, 1996, after such
writedowns, the Company's reserves totalled $17,520,000, or 0.91%
of total loans.
At December 31, 1996, the Company had restructured performing
loans of $7,220,000 and accruing single family loans more than 90
days past due of $4,565,000.
In 1996, the Company recorded a higher level of total interest income
for the fourth quarter and year, as a result of a larger average asset base.
For the year, total interest income increased to $159,746,000 in 1996
from $139,594,000 in 1995. Net interest income increased to $46,712,000
in 1996, compared to $34,681,000 for 1995. The Company's net interest
spread was 1.96% for the fourth quarter of 1996 and 1.98% for all of
1996, compared to 1.86% for the fourth quarter of 1995 and 1.60% for
all of 1995. The Company's net interest income and net interest spread
increased in 1996 primarily as a result of lower average rates paid on
deposits and borrowings and lower average nonearning assets.
The Company's non-interest expense totalled $24,711,000 in 1996,
compared to $22,359,000 in 1995 and was $6,734,000 for the fourth
quarter of 1996, compared to $6,255,000 for the same period in 1995.
As a percentage of average assets, recurring general and administrative
expenses were 1.28% for the fourth quarter of 1996 and 1.17% for all
of 1996, compared with 1.07% for all of 1995. This ratio increased
for the fourth quarter and all of 1996 primarily due to increased
compensation costs resulting from higher loan origination volume.
The Company's operating efficiency ratio, or net non-interest expense
as a percentage of net interest income and recurring non-interest income,
was 47.0% for 1996 compared to 48.8% for 1995.
For the fourth quarter of 1996, the Company originated $199,445,000
of loans compared with $151,341,000 for the same period in 1995.
Total loans originated for the year were $848,278,000 in 1996 compared
with $584,388,000 in 1995.
For the year, the Company sold $172,769,000 of loans in 1996, and
recorded gains of $1,345,000, compared to sales of $99,232,000 in 1995
and losses of $67,000. In 1996, gain on sale of loans includes
$1,495,000 related to the value of mortgage servicing rights. The portfolio
of real estate loans serviced for third-party investors was $799,500,000
at December 31, 1996, compared to $804,856,000 at December 31, 1995.
During the fourth quarter of 1996, $3,815,000 of the Company's $34.5
million issue of 7-1/4% convertible subordinated debentures were converted
into 279,125 shares of common stock at a conversion price of $13.67
per share. This conversion, net of unamortized debt issuance costs, added
$3,658,000 to the Company's stockholders' equity.
In order to obtain operational and other efficiencies, the Company
completed the combination of its two wholly-owned subsidiaries by the
merger of First Republic Thrift & Loan into First Republic Savings Bank
effective October 31, 1996. Subsequent to the merger, the Company
has continued to provide the same products and services in all existing
locations.
First Republic Bancorp Inc. functions as a direct lender as well as a
mortgage banker through its FDIC-insured, Nevada chartered industrial
bank subsidiary. First Republic Savings Bank provides both loan and
deposit services from twelve locations in the San Francisco, Los Angeles,
Beverly Hills, San Diego California areas, and in Las Vegas, Nevada.
MORE
<PAGE>
FIRST REPUBLIC BANCORP INC. Page 3
<TABLE>
<CAPTION>
Twelve Months Three Months
Ended December 31 Ended December 31
-------------------- --------------------
Financial Results 1996 1995 1996 1995
- ----------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Total Interest Income $ 159,746,000 $ 139,594,000 $ 41,341,000 $ 37,288,000
Net Interest Income $ 46,712,000 $ 34,681,000 $ 11,967,000 $ 9,934,000
Provision for Losses $ 5,838,000 $ 14,765,000 $ 750,000 $ 2,050,000
Net Income $ 12,507,000 $ 1,170,000 $ 3,461,000 $ 1,605,000
Primary EPS $ 1.62 $ 0.15 $ 0.44 $ 0.21
============= ============= ============= =============
Fully-diluted EPS $ 1.37 $ 0.15 $ 0.37 $ 0.20
============= ============= ============= =============
Weighted Average Shares:
Primary 7,705,460 7,589,225 7,928,142 7,576,963
Fully-diluted 10,246,419 10,126,096 10,363,814 10,126,028
Operating Information
- ---------------------
(*Quarterly Data Annualized)
Loan Origination Volume $ 848,278,000 $ 584,388,000 $ 199,445,000 $ 151,341,000
Avg. Assets Per Employee $ 12,747,000 $ 12,303,000 $ 12,874,000 $ 12,348,000
Return on Average Assets* 0.61% 0.07% 0.65% 0.35%
Return on Average Common Equity* 10.86% 1.08% 11.43% 5.93%
Efficiency Ratio 47.0% 48.8% 52.5% 43.4%
General and Administrative Expenses
as % of Average Assets* 1.17% 1.07% 1.28% 1.04%
Rates Earned/Paid
- -----------------
Yield on Investments 7.00% 6.79% 7.01% 6.94%
Yield on Loans 8.00% 8.00% 7.91% 8.29%
------------- ------------- ------------- -------------
Earning Assets Yield 7.90% 7.87% 7.82% 8.15%
------------- ------------- ------------- -------------
Cost of Deposits 5.74% 5.93% 5.68% 6.05%
Cost of Borrowings 6.25% 6.85% 6.22% 6.72%
------------- ------------- ------------- -------------
Liability Costs 5.91% 6.27% 5.86% 6.29%
------------- ------------- ------------- -------------
Net Interest Spread 1.98% 1.60% 1.96% 1.86%
============= ============= ============= =============
Margin on Earning Assets 2.32% 1.97% 2.30% 2.23%
============= ============= ============= =============
</TABLE>
<PAGE>
FIRST REPUBLIC BANCORP INC. Page 4
<TABLE>
<CAPTION>
As of December 31,
------------------------------------
Financial Condition 1996 1995
- ------------------- --------------- ---------------
<S> <C> <C>
Total Loans $ 1,923,449,000 $ 1,682,263,000
=============== ===============
Total Assets $ 2,156,599,000 $ 1,904,253,000
=============== ===============
Loans Serviced for
Investors $ 799,500,000 $ 804,856,000
=============== ===============
Total Deposits $ 1,353,148,000 $ 1,140,441,000
=============== ===============
FHLB Advances $ 591,530,000 $ 570,530,000
=============== ===============
Stockholders' Equity $ 126,410,000 $ 108,260,000
Senior Subordinated Debentures 9,966,000 9,974,000
Subordinated Debentures 19,515,000 19,579,000
Convertible Subordinated Debentures 30,685,000 34,500,000
Reserves 17,520,000 18,068,000
--------------- ---------------
Total Capital $ 204,096,000 $ 190,381,000
=============== ===============
Capital-to-Risk-Adjusted Assets 14.80 % 15.00 %
===== =====
Tangible Stockholders'
Equity Per Share $ 16.46 $ 14.76
=============== ===============
Number of Shares of
Common Stock Actually Outstanding 7,675,854 7,330,400
========= =========
</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
# # # # # # # # # # # # #
