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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

REPUBLIC BANCSHARES, INC.
(Exact Name of Registrant As Specified In Its Charter)

(727) 823-7300
(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12 (b) of the Act: None
Securities registered pursuant to Section 12 (g) of the Act:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

The aggregate market value of the registrant’s Common Stock held by non-affiliates of the Registrant, based upon the average bid and asked prices, was approximately $139,207,000 on February 27, 2001. As of that date, there were 10,555,989 shares of the Registrant’s Common Stock, par value $2.00 per share, issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Company’s Proxy Statement for the 2001 Annual Meeting of Stockholders are incorporated by reference into Part III of this report.

TABLE OF CONTENTS

PART I

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this Annual Report on Form 10-K (other than the financial statements and statements of historical fact), including, without limitation, statements as to our expectations and beliefs presented under the captions “Letters to Our Stockholders” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, may constitute forward-looking statements. Forward-looking statements are made based upon our expectations and beliefs concerning future events, many of which, by their nature are inherently uncertain and outside of the Company’s control. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements.

We wish to caution readers that the assumptions which form the basis for forward-looking statements with respect to or that may impact earnings for the year ending December 31, 2001, and thereafter include many factors that are beyond our ability to control or estimate precisely. Some factors include the market demand and acceptance of our existing and new loan and deposit products, the impact of competitive products, and changes in economic conditions, such as inflation or fluctuations in interest rates.

While we periodically reassess material trends and uncertainties affecting our results of operations and financial condition in connection with our preparation of the stockholders’ letter and management’s discussion and analysis contained in our annual report, we do not intend to review or revise any particular forward-looking statement referenced herein in light of future events.

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PART I

Item 1. BUSINESS

Republic Bancshares, Inc. (the “Company” or “Republic” or “We”) is a bank holding company registered with the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956 (as amended). We conduct business mainly through our banking subsidiary, Republic Bank (the “Bank”), a Florida-chartered commercial bank headquartered in St. Petersburg, Florida and provide a broad range of traditional commercial banking services. Based on the most recent available data, we are the second largest commercial bank holding company headquartered in Florida. At December 31, 2000, our branch network consisted of 80 branches throughout Florida and our consolidated assets totaled $2.4 billion, portfolio loans totaled $1.7 billion, deposits totaled $2.2 billion and stockholders’ equity was $172.3 million. The Bank’s activities are regulated by the Florida Department of Banking and Finance (the “Department”) and the Federal Deposit Insurance Corporation (the “FDIC”). Deposits are insured by the FDIC up to applicable limits, and the Bank is a member of the Federal Home Loan Bank of Atlanta (the “FHLB”).

Background and Prior Operating History

During the latter part of 1994 and throughout 1995, the Bank increased its retail banking presence on the west coast of Florida. We opened 13 new branches, increasing our market presence in existing counties and expanding into Pasco County. At the same time, we undertook a program of purchasing residential mortgage loans, primarily from the FDIC at substantial discounts from face value, as a means of deploying the excess liquidity from new deposits until internal loan growth was sufficient to absorb the liquidity. We converted to a holding company structure in February 1996.

Also in 1996, we initiated a mortgage banking operation. Our mortgage banking operation placed an emphasis on non-traditional mortgage products such as high loan-to-value mortgages (“High LTV Loans”). In the fourth quarter of 1998, normal conduits for sale and/or securitization of High LTV Loans and nonconforming first mortgage loans became unavailable due to turmoil in the financial markets and reduced liquidity levels in the High LTV loan sector of the asset backed securities market. We closed out-of-state loan production offices and ceased all telemarketing efforts that were the source of the majority of the loan originations by that mortgage banking unit. At year-end 1998, a restructuring charge of $6.7 million was recorded, primarily for severance benefits payable to mortgage banking employees whose positions were eliminated. We ceased originating High LTV Loans and eliminated origination of other types of “high-risk” residential mortgage products.

During 1997 and 1998, our retail banking franchise expanded via our acquisition of Firstate Financial, F.A., a thrift institution headquartered in Orlando, Florida and, in September 1997, we acquired and merged with F.F.O. Financial Group, Inc. (“FFO”), St. Cloud, Florida, the holding company parent of First Federal Savings and Loan Association of Osceola County, in a stock-for-stock transaction. That merger further increased our presence in central Florida by adding 11 branches in Brevard, Orange and Osceola Counties. At the time of the merger, FFO had total assets of $328.4 million, total loans of $222.4 million and total deposits of $281.3 million.

In June 1998, we acquired three branch offices from BankAmerica (formerly NationsBank, N.A.) and four branch offices of NationsBank’s then-affiliate, Barnett Bank, N.A., all of which were located in Florida, including the branch’s loans and other assets. At acquisition, the seven branches had deposit liabilities of $199.9 million and loans of $114.4 million. We also acquired an additional Barnett branch located in Brunswick, Georgia, which has since been sold. We paid a combined deposit and loan premium of $24.0 million for all of those branches that were acquired.

On August 13, 1998, we purchased a branch office in Deerfield Beach (Broward County), Florida from the Dime Savings Bank, F.S.B. In the transaction, we acquired $61,000 of loans, $100,000 of personal property and equipment located at the branch and assumed $206.7 million of deposits. The purchase price for this branch was $9.8 million.

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On November 5, 1998, we acquired and merged with Bankers Savings Bank, F.S.B., Coral Gables, Florida, in a stock-for-stock transaction. At the date of acquisition, Bankers Savings Bank, which operated two branches in Miami-Dade County, had total assets of $70.0 million, total loans of $46.2 million and total deposits of $61.1 million.

On the same date, we also acquired Lochaven Federal Savings and Loan Association, a one branch, federally chartered thrift in Orlando, Florida in a stock-for-stock acquisition. At the date of acquisition, Lochaven had total assets of $56.5 million, total loans of $44.8 million and total deposits of $54.0 million.

During 1998, we entered into a series of purchase, lease assumption and sublease agreements with BankAmerica under which we purchased three former NationsBank branch offices and leased 22 former branches of NationsBank and Barnett Bank that had been closed in connection with the merger of NationsBank and Barnett. Those branch office sites were located throughout the state of Florida. Two of the purchased branch offices are in Hillsborough County and the third is in Lee County. The leased offices are in Broward, Clay, Collier, Miami-Dade, Marion, Palm Beach, Pinellas and Volusia Counties. We paid BankAmerica $3.8 million for the three purchased offices and, in addition to assuming the lease obligations, paid approximately $3.0 million (for furniture, fixtures and equipment, certain real estate and a premium) in connection with the lease assumption transactions. We had opened three of these branch offices by the end of 1998 and during 1999 we opened the remaining branch offices.

On March 8, 2000, the board of directors of the Company and the Bank announced the appointment of Mr. William R. Klich as President and Chief Executive Officer of the Company and the Bank, effective March 15, 2000. Mr. Klich, has over 30 years of banking experience and was the President and Chief Executive Officer for Coast Bank, F.S.B, located in Sarasota, Florida, from 1990-1993. After Coast Bank was acquired by SunTrust Banks in mid-1993, Mr. Klich remained with SunTrust Bank, Gulf Coast, as its Corporate Banking Executive. In early 1996 he was promoted to the position of Chairman and Chief Executive Officer of the $2.4 billion SunTrust Bank, Gulf Coast, serving Manatee, Sarasota and Charlotte Counties.

Mr. Klich was appointed to the Bank’s board of directors effective March 15, 2000, and became a member of the Company’s board of directors at its annual stockholders meeting in April 2000. Messrs. William R. Hough and Alfred T. May serve as Chairman of the Company’s board of directors and as Chairman of the Bank’s board of directors, respectively.

During 2000, we focused our efforts on positioning ourselves for the future. These strategic initiatives included, but were not limited to, the formation of a new management team, the implementation of improved lending policies and a continued effort to reduce costs and improve profitability; all geared towards strengthening our balance sheet and adding value for our shareholders.

Sales and Closings of Branch Offices

On December 21, 2000, we announced that we had reached an agreement with CNB National Bank (“CNB”) for the sale of two branch offices. These branches are located in Lake City and Live Oak, Florida and had total deposits of $64.8 million at December 31, 2000. CNB has agreed to purchase the loans, premises and other assets assigned to the two branches at their net book value and to assume the deposit liabilities. In addition, on January 4, 2001, we announced that we had reached an agreement with Pointe Bank (“Pointe”) for the sale of branch offices in Miami-Dade County, Florida. The five offices had total deposits of $57.6 million at December 31, 2000. Pointe has agreed to purchase loans at par value, and fixtures and improvements and other assets assigned to four of the branches at their book value and to assume deposit liabilities of all five offices. These sales, which require regulatory approval, are anticipated to close in the first half of 2001.

In February 2001, applications were filed with regulatory agencies to close two branch offices, one in Pinellas County and one in Marion County. Regulatory approval is pending.

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Subsequent Events

Branch Opening

On January 16, 2001, we announced the opening of a new full-service branch in Sarasota, Florida. This office will offer personal banking, commercial and real estate lending, private banking services, including safe deposit boxes, and an automated teller machine.

Business of Republic Bancshares, Inc.

On January 23, 2001, we announced our business plan for 2001 and beyond which includes these principal business strategies:

•		Concentration on and expansion of our core market
•		“Conservative” and “plain vanilla” lending
•		Diversification of the loan portfolio through the development of commercial lending activities to small and medium sized businesses as well as high net worth individuals
•		Implementation of residential lending as the cornerstone of our retail banking efforts
•		Reduction of nonperforming assets

While pursuing these strategies, management remains committed to improving asset quality, managing interest rate risk and enhancing profitability.

Sources of Funds

Our primary source of funds for lending, investment and other general business purposes are deposit accounts. In addition to deposits, another principal source of funds are loan repayments. The Bank’s loan portfolio contains a significant amount of seasoned loans that are anticipated to repay rapidly during the next few years. If necessary, additional funding is available by borrowing from the FHLB, which has been granted a blanket lien on our residential loan portfolio as collateral. We do not foresee needing to rely on brokered deposits. To the extent that short-term financing is required, we intend to rely on repurchase agreements, FHLB advances, and other traditional money market sources of funding. For additional discussion of asset/liability management policies and strategies see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Asset/ Liability Management and Liquidity”.

We offer a full range of deposit services, including checking and other transaction accounts, savings accounts and time deposits. At December 31, 2000, we had no brokered deposits, and time deposits in amounts of $100,000 or more constituted 11.97% of total deposits.

The following table shows the principal types of deposit accounts we offer and the aggregate amounts of those accounts at December 31, 2000 ($ in thousands):

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At December 31, 2000, scheduled maturities of total time deposits were as follows ($ in thousands):

Lending Activities

We originate a full range of traditional lending products for our portfolio. Under our business plan for 2001 and beyond, development of our commercial lending products to small and medium-sized businesses and high net worth individuals will be more strongly emphasized. Commercial real estate lending will continue to be an important line of business with this product line focused on borrowers within our core markets.

For 2000, loan originations from all product types totaled $382.5 million. Of this amount, originations of commercial real estate and commercial (business) loans totaled $253.9 million, consumer loan originations (primarily home equity loans) totaled $103.7 million and residential loan originations were $24.9 million.

The following tables show information concerning our loan portfolio, based on total dollars and percent of portfolio, by collateral type as of the dates indicated ($ in thousands):

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The following table shows the maturities of our real estate secured loans at December 31, 2000 and 1999. Loans having no stated schedule of repayments and no stated maturity are reported as due in one year or less. This table also shows the dollar amount of loans scheduled to mature after one year, according to their interest rate characteristics ($ in thousands):

Credit Administration

Our loan approval process provides for various levels of lending authority to loan officers, the Officers’ Loan Committee, the Chairman, and the Chief Executive Officer. In addition, loans in excess of $5.0 million require the approval of the board of directors’ Loan Committee or a majority of the full board prior to funding. Loan purchases, when applicable, are made subject to the same underwriting standards as loan originations. To achieve consistency in underwriting policies and procedures, we have centralized the supervision of our loan approval process and all credit decision functions.

Our real estate lending consists of extensions of credit secured by real estate mortgages and loans made for the purpose of financing the construction of a building or other improvements to real estate. Using applicable regulatory guidelines as our basis, we have adopted comprehensive, written real estate lending policies that we believe are consistent with safe and sound banking practices. These lending policies reflect consideration of the Interagency Guidelines for Real Estate Lending Policies (the “Guidelines”) adopted by the federal banking agencies in December 1992, which set forth applicable standards for real estate lending.

Our lending policy addresses certain lending considerations set forth in the Guidelines, including loan-to-value (“LTV”) limits, loan administration procedures, underwriting standards, portfolio diversification standards and documentation, approval and reporting requirements. The LTV ratio framework, with a LTV ratio being the

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total amount of credit to be extended divided by the appraised value or purchase price of the property at the time the credit is originated, has been established for each category of real estate loans. Our policy, subject to certain approval exceptions, establishes, among other things, the following LTV limits: raw land (65%); land development (75%); construction (commercial, multifamily and non-residential) (80%) and improved property (85%). Loans on one-to-four family residential (owner occupied) mortgages where the LTV exceeds 95% are not made, and any LTV ratio in excess of 80% generally requires appropriate insurance or additional security from readily marketable collateral. The board of directors reviews and approves our lending policies at least annually.

Our commercial (business) lending is based on a strategy of extending credit to the Florida business community, with commercial loans being made to small and medium-sized businesses and high net worth individuals with satisfactory cash flows.

We manage our loan portfolio on an ongoing basis following written portfolio management strategies, guidelines for underwriting standards and risk assessment, and procedures for ongoing identification and management of credit deterioration. We undertake regular portfolio reviews to estimate loss exposure and determine compliance with policies. (See “Item 1. Business - Asset Quality”).

Asset Quality

Allowance/Provision for Loan Losses

The allowance for loan losses represents our estimate of an amount adequate to provide for probable losses inherent in the loan portfolio based on our historical data and the current status of the loan portfolio. However, there may be additional risks of losses in the future, which cannot be quantified precisely or attributed to particular loans or classes of loans. Because those risks include general economic trends, as well as available information about conditions affecting individual borrowers, our estimate of the allowance needed is necessarily approximate and imprecise. The allowance is also subject to regulatory examinations and determinations as to adequacy, which may take into account such factors as the methodology used to calculate the allowance and the size of the allowance in comparison to peers identified by the regulatory agencies.

We conduct an ongoing evaluation and grading of the loan portfolio according to an eight-point rating system. The loan ratings serve as a guideline in assessing the risk level of a particular loan and provide a basis for the estimation of the overall allowance necessary based on historical experience. The Loan Review Department independently rates loans and, on a quarterly basis, meets with senior management and the loan officers to discuss all loans that have been identified as potential credit quality problems. The Loan Review Department reports its findings to the Directors’ Audit Committee to ensure independence of the loan grading function.

We believe that our loan loss allowance policy is consistent with policies established by federal and state regulatory agencies and that the level of our allowance is appropriate in light of our historical loss experience. Provisions for loan losses charged to expense during each period are made based on our estimation of the adequacy of the allowance when compared to the inherent risk of the existing portfolio. As part of the risk assessment for certain loans purchased from 1993 through 1997, we allocated a portion of the discount on such loan purchases to the allowance in amounts which are consistent with our loan loss allowance policy guidelines. Amounts resulting from discount allocation to the allowance related to specific pools of purchased loans are available to absorb potential losses only on those purchased loans and are not available to cover losses on other loans. At December 31, 2000, $389,000 of the loan loss allowance resulted from allocations of loan discount with the $20.3 million remainder resulting from provisions to the allowance. At December 31, 2000, the amount of unearned discount on purchased loans, which had not been allocated to the allowance, totaled $3.3 million.

Loan loss allowance activity during 2000 included $15.0 million of loan charge-offs (net of recoveries), $389,000 reallocated from the allowance to loan discounts and a $20.7 million provision for loan losses. Activity during 1999 included a $9.9 million provision for loan losses, loan charge-offs (net of recoveries) of $9.6 million and $195,000 reallocated from the allowance to loan discounts.

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The following table shows information concerning the activity in the allowance for loan losses during the periods indicated ($ in thousands):