West Palm Beach, FL July 15, 1999 (ICB TOLL FREE NEWS) Republic Security Bank, a wholly owned subsidiary of Republic Security Financial Corporation, yesterday announced that it has executed a letter of intent with John Deere Credit to acquire the company's marine loan production operation, First New England Financial, subject to the execution of a definitive agreement.

First New England Financial, founded in 1976, is one of the premier names in the yacht lending marketplace. Under the terms of the transaction, Republic Security Bank will acquire the brand name First New England Financial and the renowned 1-800-BOAT-LOAN phone number. Republic Security Bank will also acquire proprietary loan processing software, the services of key management, and a professional staff in three regional offices. First New England Financial is expected to operate as a wholly owned subsidiary of Republic Security Bank.

In addition to the purchase of First New England Financial, Republic Security Bank also intends to purchase John Deere Credit's approximately $100 million yacht loan portfolio.

``The strategic acquisition of First New England Financial provides an excellent opportunity to diversify our loan portfolio and build a strong fee- based income business, both important goals of Republic Security Bank. Furthermore, it gives us a leading position in the multi-billion dollar yacht lending market,'' said Rudy Schupp, Chairman and Chief Executive Officer of Republic Security Bank.

First New England Financial will report to Mike Strickland, Chief Banking Officer for Republic Security Bank. "We're spending $6.5 million to purchase all the intangibles: the 1 800 BOAT LOAN number, the registered service mark name, system software, and people," Mr.Strickland told ICB, "each component necessary for the aggregate to be of value."

$500,000 is to cover employment contracts, with the balance of $6 million dollars, to be amortized over fifteen years, paying for the 1 800 BOAT LOAN number, the registered service mark name, and system software.

Neither Mr. Strickland nor Rick Haskins, Republic Security Bank's CFO, would say if an exact monetary value had been assigned to the 800 vanity number, but Mr. Haskins advised ICB, "... we would not have done the deal without it... I'd estimate it's value at 20% of the $6 million dollar purchase price."

Republic Security Financial Corporation, a West Palm Beach, Fla.-based commercial bank holding company with total assets of $3 billion, operates 102 full-service banking offices through its subsidiary, Republic Security Bank, throughout ten Florida counties. Republic Security Financial Corporation's common stock is traded on the Nasdaq National Market System under the symbol RSFC.

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