FIRST REPUBLICBANK <FRB> TROUBLED LOANS RISE
First RepublicBank Corp, the largest bank
holding company in Texas, reported a loss of 6.3 mln dlrs for
the third quarter and said that its non-performing loans rose
sharply because of a further deterioration in Texas's real
estate market.
    There was no comparable figure for the third quarter of
1986 because the company was formed in June 1987 through the
merger of RepublicBank Corp and Interfirst Corp.
    Non-performing loans were 3.1 billion dlrs at the end of
September, or 12.4 pct of total assets, mpared with 9.5 pct
at the end of the second quarter.
    Loans secured by real estate accounted for about 90 pct of
the 706 mln dlr increase in non-performing loans in the third
quarter, First Republicbank said.
    It said the poor shape of the office and retail housing
markets in Dallas, Houston and Austin will continue to hold
back earnings.
    "As indicated earlier in 1987 by First RepublicBank, the
company will continue to assess future common stock dividend
payments relative to earnings performance," Gerald
Fronterhouse, chairman and chief executive officier, said in a
statement.
    First RepublicBank said its third-quarter loan loss
provision of 106 mln dlrs and net charge-offs of 87 mln dlrs
left its total allowance for credit losses at 1.14 billion
dlrs, or 4.6 pct of the loan portfolio.
    The company's primary capital amounted to 7.9 pct of assets
at the end of September.
    The 6.3 mln dlr loss was sustained despite a 29 mln dlr cut
in overhead, achieved partly by staff attrition. The size of
the combined staffs of the two banks has been cut by 12 pct so
far this year, and Fronterhouse said the bank is ahead of the
schedule it set for achieving savings through the merger.
 Reuter
