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PRESS RELEASE
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FOR IMMEDIATE RELEASE October 21, 1997
For information contact:
R. Randy Guemple
Chief Operating Officer
(561) 650-2425
FIRST PALM BEACH BANCORP, INC.
ANNOUNCES QUARTERLY AND ANNUAL EARNINGS
WEST PALM BEACH, FLORIDA, October 21, 1997 . . . First Palm Beach
Bancorp, Inc. (NASDAQ: FFPB), the holding company for Florida-based First Bank
of Florida, today reported net income of $2.5 million for the quarter ended
September 30, 1997, compared to a loss of $7.3 million for the quarter ended
September 30, 1996. The Company also reported net income for the year ended
September 30, 1997 of $9.4 million, or $1.86 per share, as compared to $0.5
million, or $0.11 per share, for the prior year. The loss for the quarter
ending September 30, 1996 included a one-time charge against earnings of $6.6
million for a Savings Association Insurance Fund (SAIF) assessment mandated by
the Omnibus Appropriations Bill signed into law on September 30, 1996. Under
that law, all SAIF-insured financial institutions paid a one-time assessment in
an amount equal to 65.7 basis points on deposits as of March 31, 1995 and
recognized the expense on September 30, 1996. The after-tax effect of the
assessment was $4.0 million or $0.78 per share. Also during that quarter, First
Bank recorded a provision for loan losses of $12.7 million, primarily due to
losses on its indirect automobile lending portfolio. A net gain of $3.5 million
on sale of loans was also recorded during the quarter ended September 30, 1996.
The results for the year ended September 30, 1996 included the SAIF
assessment of $6.6 million and loan loss provisions, primarily due to indirect
lending, of $15.7 million. The year ended September 30, 1997 included net gains
on sales of securities, loans, loan servicing, stock and property of $2.9
million as compared to net gains on such sales of $5.4 million for the year
ended September 30, 1996.
Net interest income before loan loss provision was $11.0 million for
the quarter ended September 30, 1997, as compared to $10.7 million for the
quarter ended September 30, 1996. For the year ended September 30, 1997, net
interest income before loan loss provision was $44.1 million as compared to
$42.2 million for the year ended September 30, 1996. The increases in net
interest income are primarily due to a net increase in loans receivable to
$1.14 billion at September 30, 1997
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from $1.01 billion at September 30, 1996. Net interest margin decreased to
2.61% for the quarter ended September 30, 1997 from 3.07% for the quarter ended
September 30, 1996. This decrease was primarily caused by the issuance of $35.0
million senior debentures with a coupon of 10.35%. Capital of $25.0 million was
infused into the Bank, as a result of the issuance of the debentures, and was
leveraged on a wholesale basis at lower margins, further reducing the net
interest margin percentage. The provision for loan losses decreased to $1.1
million for the quarter ended September 30, 1997 as compared to $12.7 million
for the quarter ended September 30, 1996. For the year ended September 30,
1997, the provision for loan losses decreased to $3.3 million as compared to
$15.7 million for the year ended September 30, 1996. During fiscal years ended
1995 and 1996, First Bank was more active in the indirect automobile lending
market, and the higher loan loss provisions during 1996 reflect the losses
associated with that type of lending. As a result of higher than anticipated
charge-off experience with the indirect lending portfolio, primarily during the
later part of the fiscal year ended September 30, 1996, additional provisions
for loan losses of $12.7 million were recorded during the quarter ended
September 30, 1996. Effective September 30, 1996, no new applications for
indirect automobile loans were accepted, thereby discontinuing the indirect
automobile lending program. At September 30, 1997, indirect automobile loans in
the approximate amount of $88.4 million remained in the Bank's portfolio.
Other income decreased to $3.0 million for the quarter ended September
30, 1997 from $5.5 million for the quarter ended September 30, 1996. During the
quarter ended September 30, 1997, First Bank sold securities, stock and
properties resulting in a net gain of $1.2 million. During the quarter ended
September 30, 1996, First Bank sold approximately $144.0 million of mortgage
loans recording a net gain on the sales of approximately $3.5 million. For the
year ended September 30, 1997, other income decreased to $9.0 million from
$10.1 million for the year ended September 30, 1996. During the year ended
September 30, 1997 gains on sales of securities, loans, loan servicing,
property and stock were $2.9 million as compared to $5.4 million for the year
ended September 30, 1996. Servicing income, other fees and miscellaneous income
increased to $6.1 million for the year ending September 30, 1997 as compared to
$4.7 million for the year ending September 30, 1996. Other expenses decreased
to $9.1 million for the quarter ended September 30, 1997 as compared to $15.7
million for the quarter ended September 30, 1996 primarily because First Bank
recorded the $6.6 million one-time SAIF assessment during the quarter ended
September 30, 1996. For the year ended September 30, 1997, other expenses
decreased to $34.4 million as compared to $35.6 million for the year ended
September 30, 1996 because the one-time SAIF assessment of $6.6 million was
recorded in 1996. The other increases in expenses for both the quarter and
twelve month period reflect the expenses relating to franchise growth by adding
22 additional full-service branch locations since September 30, 1995 and
expanded loan servicing requirements and costs primarily related to indirect
lending. This growth resulted in the number of employees increasing to 427 at
September 30, 1997 from 383 at September 30, 1996.
Stockholders' equity increased to $113.0 million at September 30, 1997
from $105.4 million at September 30, 1996. Net income for the year was $9.4
million. Common stock totaling 114,000 shares was repurchased during the year
at an average price of $23.40 per share, thereby reducing stockholders' equity
by $2.7 million. Tangible book value per share increased to $21.87 at September
30, 1997 from $20.14 at September 30, 1996.
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First Palm Beach Bancorp, Inc. is the holding company for
Florida-based First Bank of Florida. With assets of approximately $1.8 billion,
First Palm Beach Bancorp, Inc. serves the communities of Palm Beach, Martin,
Broward, Dade and Lee Counties through the Bank's 47 full- service branchesand
two loan production offices. The stock of First Palm Beach Bancorp, Inc. is
listed on NASDAQ under the symbol FFPB.
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(Financial Information Follows - Please note that all information is unaudited
and could be subject to change.)
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(UNAUDITED)
9/30/97 9/30/96
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(In thousands, except share data)
Selected Financial Data:
Total assets ................................................................................. $ 1,808,419 $ 1,490,020
Loans receivable, net ........................................................................ 1,144,100 1,007,881
Cash and cash equivalents .................................................................... 99,929 161,413
Securities available-for-sale and held-to-maturity ........................................... 74,456 34,532
Mortgage-backed and related securities available-for-sale and held-to-maturity ............... 421,646 232,273
Real estate owned ............................................................................ 1,795 1,626
Repossessed automobiles ...................................................................... 474 1,602
Goodwill ..................................................................................... 2,631 2,825
Deposits ..................................................................................... 1,229,279 1,136,722
Borrowed funds ............................................................................... 394,871 211,025
Senior debentures, net ....................................................................... 33,839 -
Stockholders' equity ......................................................................... 113,029 105,425
Common shares outstanding .................................................................... 5,047,746 5,093,096
Book value per share ......................................................................... $22.39 $20.70
Book value per share - tangible .............................................................. $21.87 $20.14
Non-performing assets ........................................................................ $10,355 $16,059
Quarter Year
Ended Sept. 30 Ended Sept. 30
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1997 1996 1997 1996
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(In thousands)
Selected Operating Data:
Interest income .................................................. $31,994 $26,934 $116,930 $103,532
Interest expense ................................................. 21,010 16,193 72,851 61,300
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Net interest income .......................................... 10,984 10,741 44,079 42,232
Less provision for loan losses ............................... 1,081 12,691 3,281 15,704
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Net interest income (loss) after provision for loan losses ... 9,903 (1,950) 40,798 26,528
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Other income:
Servicing income and other fees .................................. 1,109 877 4,106 3,206
Net gain on sale of securities available-for-sale,
mortgage-backed and related securities available-for-sale,
servicing, stock and loans ................................... 672 3,708 2,315 4,928
Net gain on sale of property ..................................... 549 460 551 460
Miscellaneous .................................................... 678 412 2,029 1,475
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Total other income ....................................... 3,008 5,457 9,001 10,069
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Other expenses:
Employee compensation and benefits ............................... 4,736 4,572 18,271 15,905
Occupancy and equipment .......................................... 1,933 1,416 6,729 4,830
Federal deposit insurance premiums ............................... 192 7,228 977 8,848
Provision for losses and net losses
on sale of real estate owned ................................. 63 422 329 451
Advertising and promotion ........................................ 144 227 1,005 663
Miscellaneous .................................................... 1,988 1,832 7,095 4,905
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Total other expenses ..................................... 9,056 15,697 34,406 35,602
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Income (loss) before provision for income taxes ..................... 3,855 (12,190) 15,393 995
Provision for income taxes .......................................... 1,400 (4,850) 6,037 446
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Net income (loss) ............................................ $2,455 $(7,340) $9,356 $549
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Earnings (loss) per share:
Primary .......................................................... $0.48 $(1.44) $1.86 $0.11
Fully diluted .................................................... $0.48 $(1.44) $1.85 $0.11
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