<PAGE> 1
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 earliest event reported: December 12, 1996
FIRST PALM BEACH BANCORP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE #0-21942 65-0418027
(State or other (Commission (I.R.S. Employer
jurisdiction of File No.) Identification No.)
incorporation)
215 South Olive Avenue
West Palm Beach, Florida 33401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (561) 655-8511
Not Applicable
(Former name and former address, if changed since last report)
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Item 5. Other Events
In its annual earnings press release released on October 16, 1996
disclosing unaudited financial results (the "Prior Release"), First Palm Beach
Bancorp, Inc. (NASDAQ: FFPB), the holding company for Florida-based First Bank
of Florida, formerly First Federal Savings and Loan Association of the Palm
Beaches, announced that an additional loan loss provision of $5.4 million had
been recorded during the quarter ended September 30, 1996 on its consumer loan
portfolio, primarily for its indirect automobile loans. As a result of an
analysis of repossession activity and loss rates on sales of repossessed
automobiles after September 30, 1996, an additional $4.0 million has been added
to the provision for loan losses relating to indirect automobile lending for
the quarter ended September 30, 1996. The total allowance for loan losses
related to indirect automobile lending, including the additional loan loss
provision, is $9.0 million at September 30, 1996. As stated in the Prior
Release, no new applications for indirect loans have been accepted after
September 30, 1996. Management anticipates that the loss reserves of $10.2
million (increased from $6.2 million and disclosed in 8-K dated October 21,
1996) at September 30, 1996, related to indirect loans and repossessed assets,
will be adequate to cover reasonably anticipated future charge-offs. The
preceding sentence is a "forward-looking statement" within the meaning of the
Private Securities Litigation Reform Act of 1995 (the "Act") which involves
estimates, assumptions and uncertainties. The following important factors,
should they occur, could cause actual loan loss and reserve experience as well
as other related results to differ materially from the expectations expressed
in the forward-looking statement:
1. Unanticipated changes in general economic conditions, such as
unemployment and interest rates.
2. Unanticipated changes in the number of repossessions and the loan
balances outstanding at the time of repossession.
3. Unanticipated changes in the resale value of repossessed automobiles.
4. Unanticipated changes in the ability of the borrowers to maintain
insurance on the collateral securing the Bank's loan, the cost of
such insurance, and the ability to recover insurance proceeds.
This disclosure is intended to comply with the terms of the safe harbor for
forwarding-looking statements provided by the Act.
Item 7. Exhibits
(c) Press release dated December 12, 1996.
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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 PALM BEACH BANCORP, INC.
Date: December 13, 1996
By: /s/ R. Randy Guemple
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R. Randy Guemple
Executive Vice President
and Chief Financial Officer
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LOGO FIRST PALM BEACH BANCORP, INC.
PRESS RELEASE
================================================================================
FOR IMMEDIATE RELEASE December 12, 1996
For Information contact:
Randy Guemple
Chief Financial Officer
(561) 650-2425
FIRST PALM BEACH BANCORP, INC. ANNOUNCES
RESTATEMENT OF EARNINGS FOR THE
QUARTER AND YEAR ENDING SEPTEMBER 30, 1996
In its annual earnings press release released on October 16, 1996
disclosing unaudited financial results (the "Prior Release"), First Palm Beach
Bancorp, Inc. (NASDAQ: FFPB), the holding company for Florida-based First Bank
of Florida, formerly First Federal Savings and Loan Association of the Palm
Beaches, announced that an additional loan loss provision of $5.4 million had
been recorded during the quarter ended September 30, 1996 on its consumer loan
portfolio, primarily for its indirect automobile loans. As a result of an
analysis of repossession activity and loss rates on sales of repossessed
automobiles after September 30, 1996, an additional $4.0 million has been added
to the provision for loan losses relating to indirect automobile lending for
the quarter ended September 30, 1996. The total allowance for loan losses
related to indirect automobile lending, including the additional loan loss
provision announced today, is $9.0 million at September 30, 1996. As stated in
the Prior Release, no new applications for indirect loans have been accepted
after September 30, 1996.
In the Prior Release, Bancorp announced a net loss for the quarter
ended September 30, 1996 of $4.9 million, or a loss of $0.97 per share,
and net income for the year ended September 30, 1996 of $2.9 million, or $0.58
per share. After giving effect to the additional loan loss provision announced
today, the restated net loss for the quarter ended September 30, 1996 is $7.3
million or a loss of $1.44 per share and restated net income for the year ended
September 30, 1996 is $0.5 million, or $0.11 per share. The restated net
income and the net income in the Prior Release for the quarter and year ended
September 30, 1996 includes a one-time charge against earnings of $6.6 million
for a Savings Association Insurance Fund ("SAIF") assessment mandated by law.
The assessment which equaled 65.7 basis points on deposits as of March 31, 1995
was required of all SAIF insured financial institutions. Book value and
tangible book value per share were stated in the Prior Release as $21.17 and
$20.62, respectively. As restated, book value and tangible book value per
share are $20.70 and $20.14, respectively.
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Also as stated in the Prior Release, the Board of Directors authorized
the repurchase of up to 509,310 shares of the Company's common stock in open
market transactions as management deems prudent. Mr. Louis O. Davis, Jr.,
President and Chief Executive Officer of First Palm Beach Bancorp, Inc.,
commented, "We continue to believe that the repurchase of the shares can
enhance stockholders' value by increasing earnings per share and the book value
of the remaining shares."
First Palm Beach Bancorp, Inc. is the parent of First Bank of Florida
and is the largest locally-based savings institution in Palm Beach County,
Florida. With assets of approximately $1.5 billion, First Palm Beach Bancorp,
Inc. serves the communities of Palm Beach, Martin, Broward, Dade and Lee
Counties through First Bank's 36 full-service branches and two loan production
offices. The stock of First Palm Beach Bancorp, Inc. is listed on NASDAQ under
the symbol FFPB.
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(U N A U D I T E D) - Restated
<TABLE>
<CAPTION>
9/30/96 9/30/95
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(In thousands, except share data)
<S> <C> <C>
Selected Financial Data:
Total assets $1,490,020 $1,208,845
Loans receivable, net $1,007,881 $ 821,939
Cash and cash equivalents $ 161,413 $ 25,132
Securities available-for-sale
and held-to-maturity $ 34,532 $ 80,941
Mortgage-backed & related securities
available-for-sale and
held-to-maturity $ 232,273 $ 238,442
Real estate owned $ 1,626 $ 549
Intangible assets $ 2,825 $ -
Deposits $1,136,722 $ 878,670
Borrowed funds $ 211,025 $ 189,552
Stockholders' equity $ 105,425 $ 104,611
Common shares outstanding 5,093,096 5,133,063
Book value per share $ 20.70 $ 20.38
Book value per share - tangible $ 20.14 $ 20.38
</TABLE>
<TABLE>
<CAPTION>
Quarter Ended Year Ended
September 30 September 30
--------------- ----------------
1996 1995 1996 1995
---- ---- ---- ----
(in thousands)
<S> <C> <C> <C> <C>
Selected Operating Data:
Interest income $26,934 $21,617 $103,532 $80,964
Interest expense 16,193 13,199 61,300 48,900
------- ------- -------- -------
Net interest income 10,741 8,418 42,232 32,064
Less provision for loan losses 12,691 (64) 15,704 261
------- ------- -------- -------
Net interest income (loss) after
provision for loan losses (1,950) 8,482 26,528 31,803
------- ------- -------- -------
Other income:
Servicing income & other fees 877 678 3,206 2,576
Net gain (loss) on sale of securities
available-for-sale, mortgage-backed
& related securities available-for-
sale, trading securities & loans 3,756 (1,424) 4,516 (1,660)
Net gain on sale of property 406 - 460 975
Net gain (loss) on sale
of loan servicing (48) 1,008 412 1,008
Miscellaneous 466 130 1,475 1,131
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Total other income 5,457 392 10,069 4,030
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Other expenses:
Employee compensation & benefits 4,572 3,371 15,905 13,849
Early retirement plan - - - 2,361
Occupancy & equipment 1,416 1,057 4,830 4,259
Federal deposit insurance premiums 7,228 506 8,848 1,799
Provision for losses & net losses
on sale of real estate owned 422 (36) 451 74
Advertising & promotion 227 106 663 679
Miscellaneous 1,832 938 4,905 3,588
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Total other expenses 15,697 5,942 35,602 26,609
------- ------- -------- -------
Income (loss) before provision
for income taxes (12,190) 2,932 995 9,224
Provision for income taxes (4,850) 1,062 446 3,578
------- ------- -------- -------
Net income (loss) $(7,340) $ 1,870 $ 549 $ 5,646
======= ======= ======== =======
Earnings per share:
Primary and fully diluted $ (1.44) $ 0.36 $ 0.11 $ 1.11
</TABLE>
