NEWS RELEASE | |
FOR RELEASE IMMEDIATELY | |
Contact: Paul Frenkiel, CFO | |
(215) 735-4422 ext. 5255 |
REPUBLIC FIRST BANCORP, INC.
REPORTS 62% INCREASE IN FOURTH QUARTER EARNINGS;
59% INCREASE IN 2005 EARNINGS
Philadelphia, PA, January 18, 2006 - Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported fourth quarter 2005 earnings of $2.6 million, a 62% increase over the prior year fourth quarter. Total fourth quarter 2005 diluted earnings per share amounted to $.30 compared to $.19* per share for the prior year fourth quarter, a 58% increase. Total year to date earnings increased to $8.9 million in 2005, compared to $5.6 million for the prior year, an increase of 59%. Total year to date diluted earnings per share increased to $1.02 compared to $.66 in the prior year, a 55% increase. Average commercial and construction loans grew in excess of 26% and core deposits grew in excess of 17% in fourth quarter 2005 compared to the comparable prior year period.
President Harry Madonna stated, “We are very pleased with the improved earnings of the Company and look forward to continued growth. Earnings growth was due to the significant increase in commercial loans outstanding, and the increase in the spread between the interest income and the cost of funds. We anticipate continued improvement in all areas of the Company. We look forward to making continued earnings progress, and further increasing shareholder value.”
Total shareholders’ equity stood at $63.4 million with a book value per share of $7.44 at December 31, 2005, based on outstanding common shares of approximately 8.5 million. As of that date, the Company continued to be well capitalized.
Republic First Bank (PA) is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its nine offices located in Abington, Ardmore, Bala Cynwyd, East Norriton, Media and Philadelphia, Pennsylvania.
The Company may from time to time make written or oral “forward-looking statements”, including statements contained in this release and in the Company's filings with the Securities and Exchange Commission. These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. The words “may”, “could”, “should”, “would”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, and similar expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
# # #
* Per share value amounts were restated to reflect the 12% stock dividend paid June 7, 2005.
Republic First Bancorp, Inc. | |||||||||||||
Condensed Income Statement | |||||||||||||
(Dollar amounts in thousands | |||||||||||||
except per share data) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
December 31 | December 31 | ||||||||||||
2005 | 2004 (2) | 2005 | 2004 (2) | ||||||||||
Net Interest Income | $ | 7,772 | $ | 5,991 | $ | 29,158 | $ | 18,851 | |||||
Provision for Loan Losses | 49 | 549 | 1,186 | (314 | ) (1) | ||||||||
Other Income | 808 | 1,042 | 3,614 | 4,466 | (1) | ||||||||
Other Expenses | 4,593 | 4,104 | 18,207 | 15,346 | |||||||||
Income Taxes | 1,342 | 773 | 4,486 | 2,694 | |||||||||
Income From Continuing Operations | 2,596 | 1,607 | 8,893 | 5,591 | |||||||||
Income From Discontinued Operations, Net of Tax | - | 1,083 | - | 3,349 | |||||||||
Net Income | $ | 2,596 | $ | 2,690 | $ | 8,893 | $ | 8,940 | |||||
Diluted EPS From Continuing Operations | $ | 0.30 | $ | 0.19 | (3) | $ | 1.02 | $ | 0.66 | (3)(1) | |||
Diluted EPS From Discontinued Operations, Net of Tax | - | 0.12 | - | 0.39 | |||||||||
Diluted EPS | $ | 0.30 | $ | 0.31 | (3) | $ | 1.02 | $ | 1.05 | (3)(1) | |||
Republic First Bancorp, Inc. | |||||||||||||
Condensed Balance Sheet | |||||||||||||
(Dollar amounts in thousands) | |||||||||||||
(unaudited) | |||||||||||||
Assets | December 31, | December 31, | |||||||||||
2005 | 2004 (2) | ||||||||||||
Federal Funds Sold and Other Interest Bearing Cash | $ | 86,989 | $ | 23,726 | |||||||||
Investment Securities | 44,161 | 49,160 | |||||||||||
Commercial and Other Loans | 678,086 | 549,689 | |||||||||||
Allowance for Loan Losses | (7,617 | ) | (6,684 | ) | |||||||||
Other Assets | 48,917 | 48,913 | |||||||||||
Total Assets | $ | 850,536 | $ | 664,804 | |||||||||
Liabilities and Shareholders' Equity: | |||||||||||||
Transaction Accounts | $ | 381,931 | $ | 323,532 | |||||||||
Time Deposit Accounts | 265,912 | 187,152 | |||||||||||
FHLB Advances and Trust Preferred Securities | 130,053 | 92,276 | |||||||||||
Other Liabilities | 9,242 | 8,016 | |||||||||||
Shareholders' Equity | 63,398 | 53,828 | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 850,536 | $ | 664,804 |
(1) | Prior year reflects impact of a $1.3 million one time award arising from a legal settlement in connection with a loan recovery. | ||||||||||||
(2) | Prior year has been adjusted to exclude the First Bank of Delaware,reflecting the spin off of that bank effective January 1, 2005. | ||||||||||||
(3) | Prior year earnings per share has been restated for the 12% stock dividend paid June 7, 2005. |
Republic First Bancorp, Inc. | ||||||||||
December 31, 2005 | ||||||||||
(unaudited) | ||||||||||
At or For the | At or For the | |||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||
Financial Data: | 2005 | 2004 (1) | 2005 | 2004 (1) | ||||||
Return on average assets on continuing operations | 1.32 | % | 1.02 | % | 1.22 | % | 0.87 | % (2) | ||
Return on average equity on continuing operations | 16.60 | % | 12.14 | % | 15.22 | % | 10.93 | % (2) | ||
Share information: | ||||||||||
Book value per share | $7.44 | $6.64 | $7.44 | $6.64 | ||||||
Shares o/s at period end, net of Treasury shares | 8,526,000 | 8,104,000 | 8,526,000 | 8,104,000 | ||||||
Average diluted shares o/s | 8,739,000 | 8,566,000 | 8,711,000 | 8,501,000 | ||||||
(1) Prior year amounts have been adjusted for the spin off of First Bank of Delaware effective Janaury 1, 2005. | ||||||||||
(2) Prior year reflects impact of a $1.3 million one time award arising from a legal settlement in connection with a loan recovery. |
Republic First Bancorp, Inc. | |||||||
Press release 12/31/2005 | |||||||
(Dollars in thousands) | |||||||
(unaudited) | |||||||
Credit Quality Ratios: | |||||||
December 31 | December 31 | ||||||
2005 | 2004 (1) | ||||||
Non-accrual and loans accruing, | |||||||
but past due 90 days or more | $ | 3,423 | $ | 4,854 | |||
Restructured loans | - | - | |||||
Total non-performing loans | 3,423 | 4,854 | |||||
OREO | 137 | 137 | |||||
Total non-performing assets | $ | 3,560 | $ | 4,991 | |||
Non-performing loans as | |||||||
a percentage of total loans | 0.50 | % | 0.88 | % | |||
Nonperforming assets as | |||||||
a percentage of total assets | 0.42 | % | 0.75 | % | |||
Allowance for loan losses | |||||||
to total loans | 1.12 | % | 1.22 | % | |||
Allowance for loan losses | |||||||
to total non-performing loans | 222.52 | % | 137.70 | % |
(1) Prior year has been adjusted to exclude the First Bank of Delaware loans, reflecting the spin off of that bank effective January 1, 2005. |
Republic First Bancorp, Inc. | |||||||||||||||||||
Press release 12/31/2005 | |||||||||||||||||||
(Dollars in thousands ) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Quarter-to-Date | |||||||||||||||||||
Average Balance Sheet | |||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||
December 31, 2005 | December 31, 2004 (1) | ||||||||||||||||||
Average | Average | ||||||||||||||||||
Interest-Earning Assets: | Average | Yield/ | Average | Yield/ | |||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||
Commercial and other loans | $ | 658,405 | $ | 11,984 | 7.22 | % | $ | 521,606 | $ | 8,675 | 6.60 | % | |||||||
Investment securities | 62,441 | 622 | 3.98 | 49,924 | 472 | 3.78 | |||||||||||||
Federal funds sold | 20,864 | 215 | 4.09 | 9,439 | 63 | 2.65 | |||||||||||||
Total interest-earning assets | 741,710 | 12,821 | 6.86 | 580,969 | 9,210 | 6.29 | |||||||||||||
Other assets | 41,329 | 43,730 | |||||||||||||||||
Total assets | $ | 783,039 | $ | 12,821 | $ | 624,699 | $ | 9,210 | |||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing deposits | $ | 521,017 | $ | 3,912 | 2.98 | % | $ | 382,157 | $ | 2,001 | 2.08 | % | |||||||
Borrowed funds | 101,163 | 1,137 | 4.46 | 87,995 | 1,218 | 5.49 | |||||||||||||
Interest-bearing liabilities | 622,180 | 5,049 | 3.22 | 470,152 | 3,219 | 2.72 | |||||||||||||
Non-interest and | |||||||||||||||||||
interest-bearing funding | 712,829 | 5,049 | 2.81 | 563,660 | 3,219 | 2.27 | |||||||||||||
Other liabilities: | 8,183 | 8,523 | |||||||||||||||||
Total liabilities | 721,012 | 572,183 | |||||||||||||||||
Shareholders' equity | 62,027 | 52,516 | |||||||||||||||||
Total liabilities & | |||||||||||||||||||
shareholders' equity | $ | 783,039 | $ | 624,699 | |||||||||||||||
Net interest income | $ | 7,772 | $ | 5,991 | |||||||||||||||
Net interest margin | 4.16 | % | 4.09 | % | |||||||||||||||
(1) Prior year has been adjusted to exclude the First Bank of Delaware, reflecting the spin off of that bank effective January 1, 2005. |
Republic First Bancorp, Inc. | |||||||||||||||||||
Press release 12/31/2005 | |||||||||||||||||||
(Dollars in thousands ) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Year-to-Date | |||||||||||||||||||
Average Balance Sheet | |||||||||||||||||||
Twelve months ended | Twelve months ended | ||||||||||||||||||
December 31, 2005 | December 31, 2004 (1) | ||||||||||||||||||
Average | Average | ||||||||||||||||||
Interest-Earning Assets: | Average | Yield/ | Average | Yield/ | |||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||
Commercial and other loans | $ | 602,031 | $ | 42,331 | 7.03 | % | $ | 493,635 | $ | 31,006 | 6.28 | % | |||||||
Investment securities | 51,285 | 1,972 | 3.85 | 59,764 | 2,030 | 3.40 | |||||||||||||
Federal funds sold | 36,587 | 1,078 | 2.95 | 45,430 | 563 | 1.24 | |||||||||||||
Total interest-earning assets | 689,903 | 45,381 | 6.58 | 598,829 | 33,599 | 5.61 | |||||||||||||
Other assets | 41,238 | 42,433 | |||||||||||||||||
Total assets | $ | 731,141 | $ | 45,381 | $ | 641,262 | $ | 33,599 | |||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing deposits | $ | 499,876 | $ | 13,147 | 2.63 | % | $ | 370,750 | $ | 7,487 | 2.02 | % | |||||||
Borrowed funds | 75,875 | 3,076 | 4.05 | 124,303 | 7,261 | 5.84 | |||||||||||||
Interest-bearing liabilities | 575,751 | 16,223 | 2.82 | 495,053 | 14,748 | 2.98 | |||||||||||||
Non-interest and | |||||||||||||||||||
interest-bearing funding | 664,453 | 16,223 | 2.44 | 580,211 | 14,748 | 2.54 | |||||||||||||
Other liabilities: | 8,263 | 9,875 | |||||||||||||||||
Total liabilities | 672,716 | 590,086 | |||||||||||||||||
Shareholders' equity | 58,425 | 51,176 | |||||||||||||||||
Total liabilities & | |||||||||||||||||||
shareholders' equity | $ | 731,141 | $ | 641,262 | |||||||||||||||
Net interest income | $ | 29,158 | $ | 18,851 | |||||||||||||||
Net interest margin | 4.23 | % | 3.15 | % | |||||||||||||||
(1) Prior year has been adjusted to exclude the First Bank of Delaware, reflecting the spin off of that bank effective January 1, 2005. |