<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(Amendment No. 1)
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 17, 1999
REPUBLIC BANCORP INC.
(Exact name of registrant as specified in its charter)
Michigan 0-15734 38-2604669
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
1070 East Main Street, Owosso, Michigan 48867
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (517) 725-7337
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
On July 14, 1999, the Company released earnings for the three and six
month periods ended June 30, 1999. See Exhibit 99.6.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(b) Pro Forma Financial Information.
Included with this Current Report on Form 8-K/A as Exhibit 99.4
are (A) unaudited pro forma condensed combined statement of income of Republic
Bancorp Inc. and D&N Financial Corporation for the three months ended March 31,
1999; (B) unaudited pro forma condensed combined balance sheet of Republic
Bancorp Inc. and D&N Financial Corporation as of March 31, 1999; and (C) notes
to such unaudited pro forma condensed combined financial statements of Republic
Bancorp Inc. and D&N Financial Corporation.
Also included with this Current Report on Form 8-K/A as Exhibit
99.5 are unaudited pro forma condensed combined statements of income of Republic
Bancorp Inc. and D&N Financial Corporation for the years ended December 31,
1998, 1997 and 1996.
(c) Exhibits.
Exhibit Reference
Number Exhibit Description
------ -------------------
99.4 Pro Forma Financial Information as follows: (A)
unaudited pro forma condensed combined statement of
income of Republic Bancorp Inc. and D&N Financial
Corporation for the three months ended March 31,
1999; (B) unaudited pro forma condensed combined
balance sheet of Republic Bancorp Inc. and D&N
Financial Corporation as of March 31, 1999; and (C)
notes to such unaudited pro forma condensed
combined financial statements of Republic Bancorp
Inc. and D&N Financial Corporation.
99.5 Pro Forma Financial Information as follows:
unaudited pro forma condensed combined statements
of income of Republic Bancorp Inc. and D&N
Financial Corporation for the years ended December
31, 1998, 1997, and 1996.
<PAGE>
Exhibit Reference
Number Exhibit Description
------ -------------------
99.6 Earnings release dated July 14, 1999 announcing
combined earnings of Republic Bancorp Inc. and D&N
Financial Corporation for the three and six months
ended June 30, 1999.
_______________________
<PAGE>
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.
REPUBLIC BANCORP INC.
Date: July 16, 1999 By: /s/ Thomas F. Menacher
----------------------------------
Name: Thomas F. Menacher
Its: Executive Vice President,
Treasurer and Chief Financial
Officer
(Principal Financial and
Accounting Officer)
<PAGE>
EXHIBIT 99.4
Republic Bancorp Inc.
And D&N Financial Corporation
Unaudited Pro Forma Condensed Combined Statements of Income
For the three months ended March 31, 1999
(In thousands, except per share data)
<TABLE>
<CAPTION>
D&N
Republic Financial Pro Forma
Bancorp Inc. Corporation Combined
------------ ----------- ---------
<S> <C> <C> <C>
INTEREST INCOME
Loans, including fees $ 34,761 $ 25,870 $ 60,631
Securities and other 757 9,629 10,386
------------ ----------- ---------
Total interest income 35,518 35,499 71,017
------------ ----------- ---------
INTEREST EXPENSE
Deposits 14,087 13,366 27,453
Borrowings 6,156 8,524 14,680
------------ ---------- ---------
Total interest expense 20,243 21,890 42,133
NET INTEREST INCOME 15,275 13,609 28,884
PROVISION FOR LOAN LOSSES 850 675 1,525
------------ ---------- ---------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 14,425 12,934 27,359
OTHER INCOME 36,773 3,813 40,586
OTHER EXPENSES 41,684 9,896 51,580
------------ ---------- ---------
INCOME BEFORE INCOME TAXES 9,514 6,851 16,365
INCOME TAXES 3,378 2,151 5,529
------------ ---------- ---------
INCOME BEFORE PREFERED STOCK DIVIDENDS 6,136 4,700 10,836
Preferred stock dividends - 681 681
------------ ---------- ---------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 6,136 $ 4,019 $ 10,155
============ ========== =========
EARNINGS PER COMMON SHARE
Basic $ 0.26 $ 0.43 $ 0.25
Diluted ============ ========== ========
$ 0.26 $ 0.42 $ 0.24
============ ========== ========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 23,786 9,357 40,816
Diluted 23,999 9,593 41,458
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined Financial Statements.
<PAGE>
Republic Bancorp Inc. and D&N Financial Corporation
Unaudited Pro Forma Condensed Combined Balance Sheet
March 31, 1999
(In thousands)
<TABLE>
<CAPTION>
D&N
Republic Financial Pro Forma Pro Forma
Bancorp Inc. Corporation Adjustments Combined
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 31,635 $ 37,059 $ 68,694
Mortgage loans held for sale 620,670 8,134 628,804
Securities held to maturity - 60,228 60,228
Securities available for sale 45,150 591,888 637,038
Loans, net 1,203,032 1,309,981 2,513,013
Premises and equipment 19,029 18,818 37,847
Mortgage servicing rights 55,873 5,082 60,955
Other assets 83,804 23,777 $ 9,482 (2) 117,063
----------- ----------- ------------ -----------
TOTAL ASSETS $ 2,059,193 $ 2,054,967 $ 9,482 $ 4,123,642
=========== =========== ============ ===========
LIABILITIES
Deposits $ 1,378,922 $ 1,272,387 $ 2,651,309
Federal funds purchased, repurchase agreements
and other short-term borrowings 52,653 78,049 130,702
Federal Home Loan Bank advances 312,008 529,003 841,011
Accrued expenses and other liabilities 113,425 24,319 $ 31,521 (1) 169,265
Long-term debt 47,500 4,322 51,822
----------- ----------- ------------ -----------
TOTAL LIABILITIES 1,904,508 1,908,080 31,521 3,844,109
PREFERRED STOCK OF SUBSIDIARY - 28,719 28,719
STOCKHOLDERS' EQUITY
Preferred stock - - -
Common stock 118,893 94 85,394 (3) 204,381
Capital surplus 28,601 79,323 (85,394) (3) 22,530
Retained earnings 7,426 38,857 (22,039) (1) 24,244
Accumulated other comprehensive income (loss) (235) (106) (341)
----------- ----------- ------------ -----------
TOTAL STOCKHOLDERS' EQUITY 154,685 118,168 (22,039) 250,814
----------- ----------- ------------ -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,059,193 $ 2,054,967 $ 9,482 $ 4,123,642
=========== =========== ============ ===========
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined Financial Statements.
<PAGE>
Notes to Republic Bancorp Inc.
and D&N Financial Corporation
Unaudited Pro Forma Condensed Combined Financial Statements
(1) Consistent with generally accepted accounting principles, we expect that
restructuring and merger related costs incurred to complete the merger will
be deducted in determining net income in the period in which they are
incurred. These costs will include appropriate accruals, reserves and
charges for D&N to establish and take in respect of excess facilities and
equipment capacity, severance costs, and write-offs of various assets; and
other adjustments taking into account Republic's business plan following
the merger. The pro forma financial statements do not give effect to any
cost savings which may be realized in connection with the consolidation of
our operations.
Restructuring and merger related costs to combine the operations
approximate $22 million on an after-tax basis. The Unaudited Pro Forma
Condensed Combined Statements of Income do not reflect these charges.
However, the Unaudited Pro Forma Condensed Combined Balance Sheet reflects
these charges at that amount.
It is anticipated that these charges will be recognized in the second
quarter of 1999. The following table provides details of the estimated
charges by type of cost:
<TABLE>
<CAPTION>
Estimated Costs
------------------
Pre-tax Post-tax
Types of Costs Combined Combined
-------------- -------- --------
(in millions)
<S> <C> <C>
Severance and employee benefit accruals....... $10.4 $ 6.8
Professional fees............................. 5.1 4.9
Branch closings and real estate transactions.. 8.7 5.6
Systems....................................... 2.2 1.4
Other......................................... 5.1 3.3
----- -----
Total.................................... $31.5 $22.0
===== =====
</TABLE>
(2) Income tax expense on pro forma adjustments is reflected using a 35% tax
rate on deductible items. As a result, an estimated $9.5 million current
and deferred tax benefit is reflected herein.
(3) These reclassifications conform D&N's capital structure to that of Republic
based on D&N's shares outstanding as of March 31, 1999.
<PAGE>
EXHIBIT 99.5
Republic Bancorp Inc.
and D&N Financial Corporation
Unaudited Pro Forma Condensed Combined Statements of Income
Year Ended December 31, 1998
(In thousands, except per share data)
<TABLE>
<CAPTION>
D&N
Republic Financial Pro Forma
Bancorp Inc. Corporation Combined
----------- ----------- --------
<S> <C> <C> <C>
INTEREST INCOME
Loans, including fees $ 141,537 $ 105,777 $ 247,314
Securities and other 4,468 34,197 38,665
----------- ----------- ---------
Total interest income 146,005 139,974 285,979
----------- ----------- ---------
INTEREST EXPENSE
Deposits 59,094 51,206 110,300
Borrowings 27,270 36,079 63,349
----------- ----------- ---------
Total interest expense 86,364 87,285 173,649
----------- ----------- ---------
NET INTEREST INCOME 59,641 52,689 112,330
PROVISION FOR LOAN LOSSES 4,000 2,500 6,500
----------- ----------- ---------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 55,641 50,189 105,830
OTHER INCOME 137,441 13,820 151,261
OTHER EXPENSES 157,466 37,323 194,789
----------- ----------- ---------
INCOME BEFORE INCOME TAXES 35,616 26,686 62,302
INCOME TAXES 12,726 7,901 20,627
----------- ----------- ---------
INCOME BEFORE PREFERRED STOCK DIVIDENDS 22,890 18,785 41,675
Preferred stock dividends - 2,723 2,723
----------- ----------- ---------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 22,890 $ 16,062 $ 38,952
=========== =========== =========
EARNINGS PER COMMON SHARE
Basic $ 0.97 $ 1.75 $ 0.97
=========== =========== =========
Diluted $ 0.96 $ 1.69 $ 0.95
=========== =========== =========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 23,585 9,158 40,253
Diluted 23,894 9,507 41,197
</TABLE>
<PAGE>
Republic Bancorp Inc.
and D&N Financial Corporation
Unaudited Pro Forma Condensed Combined Statements of Income
Year Ended December 31, 1997
(In thousands, except per share data)
<TABLE>
<CAPTION>
D&N
Republic Financial Pro Forma
Bancorp Inc. Corporation Combined
------------ ----------- ----------
<S> <C> <C> <C>
INTEREST INCOME
Loans, including fees $ 105,819 $ 98,560 $204,379
Securities and other 13,033 27,133 40,166
--------- -------- --------
Total interest income 118,852 125,693 244,545
--------- -------- --------
INTEREST EXPENSE
Deposits 48,986 47,961 96,947
Borrowings 22,926 28,793 51,719
--------- -------- --------
Total interest expense 71,912 76,754 148,666
--------- -------- --------
NET INTEREST INCOME 46,940 48,939 95,879
PROVISION FOR LOAN LOSSES 3,031 1,350 4,381
--------- -------- --------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 43,909 47,589 91,498
OTHER INCOME 102,515 8,920 111,435
OTHER EXPENSES 117,742 33,223 150,965
--------- -------- --------
INCOME BEFORE INCOME TAXES 28,682 23,286 51,968
INCOME TAXES 9,893 7,743 17,636
--------- -------- --------
INCOME BEFORE PREFERRED STOCK DIVIDENDS 18,789 15,543 34,332
Preferred stock dividends - 1,218 1,218
--------- -------- --------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 18,789 $ 14,325 $ 33,114
========= ======== ========
EARNINGS PER COMMON SHARE
Basic $ 0.80 $ 1.58 $ 0.83
========= ======== ========
Diluted $ 0.79 $ 1.53 $ 0.81
========= ======== ========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 23,350 9,094 39,899
Diluted 23,837 9,365 40,881
</TABLE>
<PAGE>
Republic Bancorp Inc.
and D&N Financial Corporation
Unaudited Pro Forma Condensed Combined Statements of Income
Year Ended December 31, 1996
(In thousands, except per share data)
<TABLE>
<CAPTION>
D&N
Republic Financial Pro Forma
Bancorp Inc. Corporation Combined
------------ ----------- ---------
<S> <C> <C> <C>
INTEREST INCOME
Loans, including fees $ 80,436 $ 86,151 $ 166,587
Securities and other 18,711 18,158 36,869
------------ ----------- ---------
Total interest income 99,147 104,309 203,456
------------ ----------- ---------
INTEREST EXPENSE
Deposits 42,268 43,859 86,127
Borrowings 20,159 17,687 37,846
------------ ----------- ---------
Total interest expense 62,427 61,546 123,973
------------ ----------- ---------
NET INTEREST INCOME 36,720 42,763 79,483
PROVISION FOR LOAN LOSSES 290 1,100 1,390
------------ ----------- ---------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 36,430 41,663 78,093
OTHER INCOME 90,846 7,224 98,070
OTHER EXPENSES 104,492 39,543 144,035
------------ ----------- ---------
INCOME BEFORE INCOME TAXES 22,784 9,344 32,128
INCOME TAXES 7,718 349 8,067
------------ ----------- ---------
INCOME BEFORE EXTRAORDINARY ITEM 15,066 8,995 24,061
Extraordinary item - loss on early redemption of debt, net of tax (388) - (388)
------------ ----------- ---------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 14,678 $ 8,995 $ 23,673
============ =========== =========
EARNINGS PER COMMON SHARE
Basic Earnings Per Share
Income before extraordinary item $ 0.63 $ 1.08 $ 0.61
Extraordinary item (0.02) - (0.01)
------------ ----------- ---------
Net income per share - basic $ 0.61 $ 1.08 $ 0.60
============ =========== =========
Diluted Earnings Per Share
Income before extraordinary item $ 0.61 $ 1.01 $ 0.59
Extraordinary item (0.02) - (0.01)
------------ ----------- ---------
Net income per share - diluted $ 0.59 $ 1.01 $ 0.58
============ =========== =========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 24,184 8,337 39,357
Diluted 24,794 8,906 41,003
</TABLE>
<PAGE>
EXHIBIT 99.6
<PAGE>
NEWS BULLETIN Republic Bancorp Inc.
FROM: 122 S. Main Street
The Financial Relation Board Ann Arbor, MI 48104 [LOGO]
- ----------------------------
BSMG WORLDWIDE www.republicbancorp.com
NASDAQ: RBNC
FOR FURTHER INFORMATION:
<TABLE>
<S> <C> <C>
At Republic Bancorp Inc.: At the Financial Relations Board:
Thomas F. Menacher Kristine D. Brenner John Kroen Lisa Ferguson Bess Gallanis
Exec. V.P., Treasurer & CFO Investor Relations General Info. Analyst Inquiries Media Inquiries
(517) 725-7337 (517) 725-7004 (312) 640-6763 (312) 640-6788 (312) 640-6737
</TABLE>
FOR IMMEDIATE RELEASE
WEDNESDAY, JULY 14, 1999
REPUBLIC BANCORP REPORTS SECOND QUARTER 1999 OPERATING
EARNINGS INCREASE 17% TO $.28 PER SHARE
* Record net operating income of $11.7 million up 18%
* Net interest income increased 9% to $30.6 million
* Operating return on equity of 17.56% and return on assets of 1.18%
* Mortgage loan originations of $1.5 billion
ANN ARBOR, Michigan, July 14, 1999... Republic Bancorp Inc. (NASDAQ: RBNC)
announced record net operating income for the bank holding company for the
quarter and six months ended June 30, 1999. Net operating income for the second
quarter was $11,690,000, or $.28 per diluted share, up 17% from $.24 earned for
the second quarter of 1998. All prior period data have been restated for the
merger with D&N Financial Corporation in May 1999, which was accounted for as a
pooling of interests.
Net operating income for the quarter generated annualized returns of 1.18% on
average assets and 17.56% on average equity. These compare with returns of
1.04% on average assets and 16.29% on average equity for the second quarter of
1998. Net operating income for the six months ended June 30, 1999 was
$21,845,000, a 14% increase over the $19,188,000 earned for the six months ended
June 30, 1998. For the six month period ending June 30, 1999, diluted earnings
per share were $.53, an increase of 13% over the $.47 earned in 1998. Net
operating income for the first six months of 1999 generated annualized return on
average assets and return on average shareholders' equity of 1.08% and 16.29%,
respectively.
Net operating earnings exclude the after tax impact of one-time charges related
to the Company's merger with D&N Financial Corporation. In total, $30.2 million
of after tax charges were recorded in the second quarter, consisting of $22
million in merger and restructuring charges, a $4.9 million loss on the sale of
low-yielding fixed rate securities, and an additional $3.3 million provision for
loan losses. Including these charges, the Company reported a net loss for the
second quarter of $18.5 million and a net loss of $8.4 million for the six
months ended June 30, 1999.
-More-
<PAGE>
Republic Bancorp Inc.
Add 1
The Company had another excellent quarter in mortgage banking, originating $1.51
billion in single-family residential mortgages. At June 30, 1999, the Company's
mortgage loan pipeline of applications in process was $1.5 billion. Republic
Bancorp Inc. is the 20th largest retail mortgage lender in the country.
Commercial lending activity has remained strong, as the Company had commercial
loan closings of $131 million during the second quarter of 1999. The Company
also closed $12.8 million in Small Business Administration (SBA) loans, an
increase of 51% from the second quarter of 1998. At June 30, 1999, the
Company's pipeline of SBA loans in process totaled $45 million. Republic Bank
has been the Number One SBA lender in the state of Michigan for five years in a
row and is a Preferred Lender with the SBA.
The Company's net interest income increased $2.4 million for the quarter, an
increase of 9% from the corresponding period in 1998 due to the continued growth
in earning assets and the improved mix of earning assets. During the second
quarter, $265 million of low-yielding investment securities were sold with a
portion of the proceeds redeployed into higher-yielding residential mortgage
loans. Approximately $164 million in securities will settle in the third
quarter and will be redeployed into residential mortgage loans. The better mix
of earning assets also contributed to an increase of 11 basis points in the
Company's net interest margin to 3.25% for the quarter. The net interest margin
for the six months ended June 30, 1999 was 3.13%, compared to 3.10% for the same
period of 1998.
"The Company had a great quarter," commented Jerry D. Campbell, Chairman and
Chief Executive Officer. "Lending pipelines are strong across all of our
business lines: commercial, mortgage and consumer. Higher levels of earning
assets will further increase our net interest income during the remainder of
1999."
"The merger with D&N has gone very smoothly and we expect to see future
operating results reflect the impact of cost savings and revenue enhancements
from the merger." Campbell further added, "We are focused on growing the
Company, providing high quality personalized service to our customers and
motivating our employees. We recently announced that all employees of Republic
have been awarded stock options entitling them to Republic stock. We believe
this will result in highly motivated and focused employees."
"The merger with D&N has strengthened our commercial and retail banking presence
in Michigan. We are now the 94/th/ largest bank in the country with a
nationwide mortgage banking network," said Campbell.
-More-
<PAGE>
Republic Bancorp Inc.
Add 2
About the Company
- -----------------
Republic Bancorp Inc., a rapidly growing regional bank holding company
specializing in personalized service and commercial, consumer and mortgage
lending, is a $4 billion company with headquarters in Ann Arbor, Michigan. Its
subsidiaries, Republic Bank (including its subsidiaries Republic Bancorp
Mortgage Inc. and Market Street Mortgage Corporation) and D&N Bank (including
its subsidiary Quincy Insurance) operate 190 offices in the following 22 states:
Michigan, Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia,
Illinois, Indiana, Maryland, Massachusetts, Missouri, Nevada, New York, North
Carolina, Ohio, Oklahoma, Pennsylvania, Texas, Utah and Virginia. The Company
is the #1 Small Business Administration lender in the state of Michigan for the
5th consecutive year. Additionally, the Company is the 20th largest retail
mortgage lender in the country.
To further expand its delivery channels, Market Street Mortgage Corporation
takes mortgage applications over the Internet at www.marketstreetmortgage.com.
The Company anticipates further expanding its Internet capabilities to all
Republic affiliates in the latter part of 1999. Information about Republic
Bancorp Inc.'s financial results and its products and services can be accessed
on the Internet at www.republicbancorp.com.
Cash Dividend
- -------------
The Company currently pays an annual cash dividend of $.36 per common share,
which represents a yield of 2.5%.
Safe Harbor Statement
- ---------------------
As with any statements other than those reflecting historical facts, forward-
looking statements contained in this announcement involve risk, and, as such,
future financial performance may differ from current expectations due to a
variety of marketplace factors. These factors include, without limitation,
those disclosed in Republic Bancorp's 1998 Form 10-K filing with the Securities
and Exchange Commission.
To receive Republic Bancorp Inc.'s latest news release and other corporate
documents, free of charge via fax, simply dial 1-800-PRO-INFO.
Use company ticker RBNC.
Financial tables follow...
-More
<PAGE>
Republic Bancorp Inc.
Add 3
REPUBLIC BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Income
Loans, including fees................................ $ 61,276 $ 62,268 $ 121,907 $ 121,256
Investment securities................................ 9,758 8,577 20,144 18,011
---------- ---------- ----------- ---------
Total interest income.............................. 71,034 70,845 142,051 139,267
---------- ---------- ----------- ---------
Interest Expense
Deposits............................................. 26,635 26,553 54,088 52,392
Short-term borrowings................................ 627 2,022 1,894 4,829
FHLB advances........................................ 12,216 13,101 24,652 25,459
Long-term debt....................................... 947 1,004 1,924 2,015
---------- ---------- ----------- ---------
Total interest expense............................. 40,425 42,680 82,558 84,695
---------- ---------- ----------- ---------
Net interest income.................................. 30,609 28,165 59,493 54,572
Provision for loan losses............................ 6,575 2,050 8,100 3,800
---------- ---------- ----------- ---------
Net interest income after provision for loan losses.. 24,034 26,115 51,393 50,772
---------- ---------- ----------- ---------
Non-Interest Income
Service charges...................................... 1,805 1,445 3,509 2,851
Mortgage banking..................................... 37,118 33,558 74,255 62,678
Loss on sale of securities........................... (7,237) (46) (6,588) (144)
Gain on sale of SBA loans............................ 111 477 348 1,096
Other non-interest income............................ 1,045 854 1,904 2,135
---------- ---------- ----------- ---------
Total non-interest income.......................... 32,842 36,288 73,428 68,616
---------- ---------- ----------- ---------
Non-Interest Expense
Salaries and employee benefits....................... 20,779 16,361 41,520 32,411
Mortgage loan commissions and incentives............. 13,097 13,190 24,982 24,431
Occupancy expense of premises........................ 3,456 2,765 6,792 5,439
Equipment expense.................................... 1,662 1,545 3,445 3,037
Merger and restructuring............................. 31,521 - 31,521 -
Other non-interest expense........................... 11,653 13,042 25,488 23,423
---------- ---------- ----------- ---------
Total non-interest expense......................... 82,168 46,903 133,748 88,741
---------- ---------- ----------- ---------
Income (loss) before income taxes.................... (25,292) 15,500 (8,927) 30,647
Provision (credit) for income taxes.................. (7,464) 4,938 (1,935) 10,098
---------- ---------- ----------- ---------
Income (loss) before preferred stock dividends....... (17,828) 10,562 (6,992) 20,549
Dividends on preferred stock......................... 680 680 1,361 1,361
---------- ---------- ----------- ---------
Net income (loss).................................... $ (18,508) $ 9,882 $ (8,353) $ 19,188
========== ========== =========== =========
Basic earnings (loss) per share...................... $ (.45) $ .25 $ (.20) $ .48
========== ========== =========== =========
Diluted earnings (loss) per share $ (.45) $ .24 $ (.20) $ .47
========== ========== =========== =========
</TABLE>
-More-
<PAGE>
Republic Bancorp Inc.
Add 4
REPUBLIC BANCORP INC.
SUMMARY OF SELECTED FINANCIAL DATA
(Dollars in thousands, except operating data)
<TABLE>
<CAPTION>
June 30, March 31, December 31, June 30,
1999 1999 1998 1998
--- ---- ---- ----
<S> <C> <C> <C> <C>
Period-End Balances:
Total assets...................................... $3,977,561 $4,114,160 $4,213,766 $3,982,572
Mortgage loans held for sale...................... 420,413 628,804 770,028 746,557
Total securities.................................. 284,307 637,038 671,553 610,939
Portfolio loans................................... 2,882,177 2,535,140 2,543,772 2,418,380
Allowance for loan losses......................... 24,489 22,127 21,446 20,549
Total deposits.................................... 2,557,362 2,651,309 2,642,831 2,367,432
Total FHLB advances............................... 916,911 841,011 986,571 922,071
Long-term debt.................................... 51,669 51,821 52,194 53,102
Shareholders' equity (1).......................... 250,590 272,853 265,877 246,733
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Average Balances:
Total assets........................................... $3,957,494 $3,791,279 $4,058,993 $3,761,435
Mortgage loans held for sale........................... 508,324 597,638 555,858 536,033
Total securities....................................... 570,569 503,143 612,235 532,977
Portfolio loans........................................ 2,657,291 2,489,983 2,602,413 2,485,672
Earning assets......................................... 3,767,631 3,596,655 3,798,989 3,559,475
Interest-bearing deposits.............................. 2,422,692 2,227,882 2,435,926 2,201,080
Short-term borrowings.................................. 44,404 150,215 71,030 177,595
Total FHLB advances.................................... 862,387 901,620 873,688 881,557
Long-term debt......................................... 53,583 54,262 55,302 54,698
Shareholders' equity (1)............................... 266,304 242,622 268,234 238,143
Operating Data (in millions):
Residential mortgage loan closings..................... $ 1,513 $ 1,565 $ 2,885 $ 3,140
Mortgage loan servicing portfolio...................... 3,503 3,952 3,503 3,952
Performance Ratios (before merger charges): (2)
Return on average assets............................... 1.18% 1.04% 1.08% 1.02%
Return on average equity............................... 17.56% 16.29% 16.29% 16.11%
Net interest margin.................................... 3.25% 3.14% 3.13% 3.10%
Per Common Share Data:
Average common shares outstanding - diluted............ 41,550 41,230 41,504 41,119
Cash dividends declared................................ $ .09 $ .08 $ .18 $ .16
Book value............................................. $ 6.10 $ 6.12 $ 6.10 $ 6.12
</TABLE>
(1) Common shares outstanding at June 30, 1999, March 31, 1999, December 31,
1998 and June 30, 1998 were 41,091,000, 40,876,000, 40,712,000 and
40,343,000, respectively.
(2) Annualized
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<PAGE>
Republic Bancorp Inc.
Add 5
REPUBLIC BANCORP INC.
SUMMARY OF SELECTED FINANCIAL DATA
(Dollars in thousands)
<TABLE>
<CAPTION>
June 30, March 31, December 31, June 30,
1999 1999 1998 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Asset Quality Ratios:
Non-performing assets to loans and
other real estate owned (1,3)............ .59% .80% .77% .92%
Non-performing assets to total assets (3)... .49% .62% .61% .73%
Allowance for loan losses
to non-performing loans.................. 163.01% 113.36% 107.35% 85.08%
Allowance for loan losses to loans (2)...... .85% .87% .84% .85%
Allowance for loan losses to loans
(excluding residential real
estate mortgages) (2).................... 1.75% 1.71% 1.72% 1.79%
Net charge-offs to
average loans outstanding (1,4).......... .32% .11% .07% .08%
Earnings coverage of net charge-offs (4,5).. 7.56x 14.65x 22.50x 29.18x
Capital Ratios:
Average shareholders' equity to assets(4)... 6.61% 6.63% 6.37% 6.33%
Tier 1 risk-based capital................... 9.68% 10.16% 9.80% 10.37%
Total risk-based capital.................... 10.58% 10.93% 10.55% 11.20%
Tier 1 leverage............................. 6.71% 6.82% 6.54% 6.86%
</TABLE>
(1) Includes mortgage loans held for sale.
(2) Excludes mortgage loans held for sale.
(3) Non-performing assets as of June 30, 1999, March 31, 1999, December 31,
1998 and June 30, 1998 were as follows:
<TABLE>
<CAPTION>
June 30, March 31, December 31, June 30,
1999 1999 1998 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Non-performing loans:
Commercial............................... $ 4,989 $ 8,063 $ 6,141 $ 6,892
Residential mortgage..................... 8,259 9,153 12,011 15,944
Installment.............................. 1,775 2,304 1,826 1,316
------- ------- ------- -------
Total non-performing loans............... 15,023 19,520 19,978 24,152
Other real estate owned.................... 4,575 5,845 5,648 5,029
------- ------- ------- -------
Total non-performing assets.............. $19,598 $25,365 $25,626 $29,181
======= ======= ======= =======
</TABLE>
(4) Year-to-date, annualized.
(5) Operating earnings before taxes plus the provision for loan losses divided
by net charge-offs.
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<PAGE>
Republic Bancorp Inc.
Add 6
REPUBLIC BANCORP INC.
SUMMARY OF SELECTED FINANCIAL DATA
(Dollars in thousands)
<TABLE>
<CAPTION>
June 30, March 31, December 31, June 30,
1999 1999 1998 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Portfolio Loan Summary:
Commercial loans:
Commercial and industrial................ $ 90,353 $ 89,747 $ 83,105 $ 84,431
Commercial real estate mortgage.......... 643,954 572,614 549,586 470,126
---------- ---------- ---------- ----------
Total commercial loans................ 734,307 662,361 632,691 554,557
Residential real estate mortgages*.......... 1,479,656 1,243,478 1,295,484 1,270,742
Installment loans........................... 668,214 629,301 615,597 593,081
---------- ---------- ---------- ----------
Total portfolio loans................. $2,882,177 $2,535,140 $2,543,772 $2,418,380
========== ========== ========== ==========
</TABLE>
* Does not include loans held for sale.
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