-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, cFZoFoNRP19wQT83ziFIk+6oqCCHeEcD6tsRMUo29R2rOZvBBGXjRB7TQqZnvxBZ 6eiyjbTEiBwxqdlryrh50Q== 0000770975-94-000015.txt : 19941026 0000770975-94-000015.hdr.sgml : 19941026 ACCESSION NUMBER: 0000770975-94-000015 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940930 ITEM INFORMATION: Changes in control of registrant FILED AS OF DATE: 19941021 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST REPUBLIC BANCORP INC CENTRAL INDEX KEY: 0000770975 STANDARD INDUSTRIAL CLASSIFICATION: 6036 IRS NUMBER: 942964497 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09837 FILM NUMBER: 94554441 BUSINESS ADDRESS: STREET 1: 388 MARKET ST STREET 2: SEOND FLOOR CITY: SAN FRANCISCO STATE: CA ZIP: 94111 BUSINESS PHONE: 4153921400 8-K 1 PRESS RELEASE 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 October 20, 1994 - - ---------------- 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) Item 5. Other Events First Republic Bancorp Inc. hereby files with the Securities and Exchange Commission (the "Commission") its press release, dated October 20, 1994, con- cerning its earnings release for the third quarter and nine months ended September 30, 1994, as distributed on October 20, 1994. 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: October 20, 1994 Willis H. Newton, Jr. Senior Vice President and Chief Financial Officer FOR IMMEDIATE RELEASE - - --------------------- FIRST REPUBLIC BANCORP REPORTS THIRD QUARTER AND NINE MONTHS 1994 RESULTS Common Stock Symbol - FRC New York/Pacific Exchanges San Francisco, California, October 20, 1994 - First Republic Bancorp Inc. today reported net income of $2,552,000 for the third quarter ended September 30, 1994, compared with $3,427,000 for the same quarter in 1993. Fully diluted earnings per share (EPS) were $0.28 for 1994, compared to $0.36 for the similar period in 1993. Net income was $5,741,000 for the first nine months of 1994, after the provision of special reserves of $4 million in the first quarter and $1.25 million in the third quarter related to the January 1994 Los Angeles earthquake. Net income was $9,018,000 for the first nine months of 1993. Fully diluted EPS for the nine month periods were $0.66 for 1994 and $0.97 for 1993. The provisions of reserves related to the earthquake, net of tax benefits, reduced fully diluted EPS for the first nine months of 1994 by approximately $0.29. At September 30, 1994, total capital was $188,512,000, up $15,109,000 during the past 12 months. The Company's quarter-end ratio of capital to risk-adjusted assets was at the strong level of 16.52%. Tangible book value per share was $14.29 at September 30, 1994. Total assets of First Republic Bancorp Inc. were $1,638,666,000 at September 30, 1994. Substantially all of the Company's loan portfolio consists of adjustable rate, first trust deed, real estate secured California and Nevada loans, 82% of which are housing related. For the third quarter, total interest income increased to $28,124,000 in 1994 from $24,734,000 in 1993; net interest income was $9,270,000 in 1994 and $10,445,000 in 1993. The Company's net interest spread was 1.99% for the third quarter of 1994, compared to 2.24% for the second quarter of 1994 and 2.88% for all of 1993. In 1994, net interest spread FIRST REPUBLIC BANCORP INC. Page 2 has declined to a lower level due to reduced yields earned on a larger percentage of new single family adjustable rate loans originated in 1994, the level of nonearning loans and loans earning a reduced rate as a result of the Los Angeles earthquake, and a continued emphasis on gathering deposits with maturities of one year or more in the face of increasing interest rates. The Company's non-interest expense totalled $4,901,000 for the third quarter of 1994, compared to $5,129,000 for the same period in 1993. Non-interest expenses included $315,000 for the third quarter of 1994 and $846,000 for the third quarter of 1993 of costs and charges related to real estate owned ("REO") properties. As a percentage of average assets, the Company's general and administrative expenses were 1.15% for the third quarter of 1994, compared to 1.28% for the second quarter of 1994 and 1.47% for the first quarter of 1994. The decline in this ratio for 1994 results from asset growth and successful cost control measures begun during the second quarter of 1994. For the third quarter of 1994, the Company originated $172,209,000 of loans, compared with $238,075,000 for the same period in 1993. Total loans originated for the first nine months were $623,763,000 in 1994 and $626,295,000 in 1993. The Company sold $25,071,000 of loans during the third quarter of 1994, compared with $123,753,000 in the third quarter of 1993. The Company recorded net gains of $356,000 on the sale of these loans in the third quarter of 1994, compared to net gains of $987,000 for the third quarter of 1993. For the first nine months, loan sales were $216,262,000 in 1994 and $300,864,000 in 1993; net gains on sale of loans were $482,000 in 1994 and $2,019,000 in 1993. The portfolio of real estate loans serviced for third-party investors was $882,024,000 at September 30, 1994, an increase of $67,571,000 since December 31, 1993. Net revenues earned on loans serviced were $719,000 for the third quarter of 1994, compared to $303,000 for the third quarter of 1993. For the first nine months, service fees were $1,709,000 in 1994 and $757,000 in 1993. At September 30, 1994, nonaccruing loans and REO totalled $48,845,000, or 2.98% of assets, including foreclosed REO of $7,295,000. Nonaccruing assets included approximately $36,000,000 of loans and REO adversely impacted by the earthquake. Accruing single family loans more than 90 days past due totalled $3,440,000 at September 30, 1994. Restructured performing loans, as of September 30, 1994, totalled $10,538,000, 66% of which have been restructured as a result of the earthquake. At June 30, 1994, nonaccruing FIRST REPUBLIC BANCORP INC. Page 3 loans and REO totalled $48,394,000. Management of the Company expects that the level of loan delinquencies and REO may continue at this level for a while. During the third quarter 1994, the Company continued to work with its borrowers whose properties have been adversely impacted by the Los Angeles earthquake and began to resolve specific situations, including the writedown of loans. Within the Company's loan portfolio, loans secured by 37+ unit multifamily properties located in Los Angeles are most affected. First Republic has assisted its borrowers by modifying the terms of loans. The Company has also assisted many of its borrowers in the application for federal, state, and local disaster relief funds, although the receipt of such funds has been much slower than had been anticipated. While some of the Company's borrowers have received assistance, the Company expects that other borrowers will ultimately receive some assistance and has deferred the modification of certain nonaccruing loans until the disaster relief process is concluded. At September 30, 1994, the Company's nonaccrual loan total included $19,100,000 of loans which had been restructured by the forgiveness of interest or the capitalization of interest equivalent to more than four months. As a result of the terms of these restructurings, although the Company has in some cases received or expects to receive monthly payments, the loans will continue to be reported as nonaccrual loans until at least six payments have been received. During the quarter, the Company added $1,250,000 to its earthquake reserve and provided $250,000 to its recession reserve. Writedowns and chargeoffs on loans and REO, net of recoveries, were $2,659,000 during the quarter, of which $2,405,000, or over 90%, were related to properties adversely impacted by the earthquake. At September 30, 1994, total reserves were $14,306,000, or 1.00% of loans. Until the full impact of the effects of the earthquake on properties securing the Company's loans becomes more clearly determined and the disaster relief application process is completed, the Company will continue to assess the need for additional reserves. First Republic Bancorp Inc. functions as a direct lender as well as a mortgage banker through two FDIC-insured, California and Nevada-chartered industrial bank subsidiaries. First Republic Thrift & Loan provides both loan and deposit services from eight 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. FIRST REPUBLIC BANCORP INC. Page 4
Three Months Nine Months Ended September 30 Ended September 30 --------------------------- --------------------------- Financial Results 1994 1993 1994 1993 - - ----------------- ------------ ------------ ------------ ------------- Total Interest Income $ 28,124,000 $ 24,734,000 $ 79,225,000 $ 73,307,000 Net Interest Income $ 9,270,000 $ 10,445,000 $ 28,970,000 $ 30,793,000 Provision for Losses $ 1,502,000 $ 1,030,000 $ 7,182,000 $ 3,615,000 Net Income $ 2,552,000 $ 3,427,000 $ 5,741,000 $ 9,018,000 Primary EPS $ 0.32 $ 0.43 $ 0.71 $ 1.13 ============ ============ ============ ============ Fully-diluted EPS $ 0.28 $ 0.36 $ 0.66 $ 0.97 ============ ============ ============ ============ Weighted Average Shares: Primary 8,026,378 8,030,256 8,043,858 7,988,372 Fully-diluted 10,551,059 10,658,028 10,574,606 10,556,467 Operating Information - - --------------------- (*Data Annualized) Loan Origination Volume $172,209,000 $238,075,000 $623,763,000 $626,295,000 Avg. Assets Per Employee* $ 11,015,000 $ 9,813,000 $ 10,183,000 $ 9,821,000 Net Income Per Employee* $ 70,400 $ 102,000 $ 51,400 $ 93,000 Return on Average Assets* 0.64% 1.04% 0.50% 0.95% Return on Average Common Equity* 9.33% 13.73% 7.12% 12.44% General and Administrative Expenses as % of Average Assets* 1.15% 1.30% 1.29% 1.35% Rates Earned/Paid - - ----------------- Yield on Investments 5.23% 4.40% 5.01% 4.12% Yield on Loans 7.35% 7.97% 7.26% 8.18% ---------- ---------- ---------- --------- Earning Assets Yield 7.10% 7.62% 7.03% 7.79% ========== ========== ========== ========= Cost of Deposits 4.83% 4.89% 4.65% 5.02% Cost of Borrowings 5.51% 4.52% 4.99% 4.71% ---------- ---------- ---------- --------- Liability Costs 5.11% 4.74% 4.79% 4.90% ========== ========== ========== ========= Net Interest Spread 1.99% 2.88% 2.24% 2.89% ========== ========== ========== ========= Margin on Earning Assets 2.34% 3.22% 2.57% 3.28% ========== ========== ========== =========
FIRST REPUBLIC BANCORP INC. Page 5
As of September 30, ---------------------------------------- Financial Condition 1994 1993 - - ------------------- -------------- --------------- Total Loans $1,434,581,000 $ 1,176,157,000 ============== =============== Total Assets $1,638,666,000 $ 1,341,497,000 ============== =============== Loans Serviced for Investors $ 882,024,000 $ 799,491,000 ============== =============== Total Deposits $ 902,296,000 $ 742,785,000 ============== =============== Stockholders' Equity $ 110,309,000 $ 101,665,000 Senior Subordinated Debentures 9,978,000 9,981,000 Subordinated Debentures 19,419,000 14,428,000 Convertible Subordinated Debentures 34,500,000 34,500,000 Reserves 14,306,000 12,829,000 ------------- -------------- Total Capital $ 188,512,000 $ 173,403,000 ============== ============== Capital-to-Assets Ratio 11.50% 12.93% ====== ====== Capital-to-Risk-Adjusted Assets 16.52% 17.06% ====== ====== Tangible Stockholders' Equity Per Share $ 14.29 $ 13.14 ============== ============== Number of Shares of Common Stock Actually Outstanding 7,713,030 7,735,576 ========= =========
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 -----END PRIVACY-ENHANCED MESSAGE-----