Republic First Bancorp (FRBKQ) 8-K Reports 26% Increase In First Quarter Earnings

NEWS RELEASE

FOR RELEASE IMMEDIATELY

Contact: Paul Frenkiel, CFO

(215) 735-4422 ext. 5255

REPUBLIC FIRST BANCORP, INC.

REPORTS 26% INCREASE IN FIRST QUARTER EARNINGS

Philadelphia, PA, April 17, 2006 - Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported first quarter 2006 earnings of $2.7 million, a 26% increase over the same quarter in 2005. Total first quarter 2006 diluted earnings per share amounted to $.30 compared to $.25* per share for the prior year first quarter, a 20% increase. Average loans grew in excess of 23% and core deposits grew in excess of 14% in first quarter 2006 compared to the first quarter of 2005.

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 $66.9 million with a book value per share of $7.76 at March 31, 2006, based on outstanding common shares of approximately 8.6 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.

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* Prior year earnings per share 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
	March 31,
	2006			2005
Net Interest Income	$	9,309		$	7,198
Provision for Loan Losses		1,313			703
Non-interest Income		1,115			1,143
Non-interest Expenses		5,041			4,471
Provision for income taxes		1,399			1,045
Net Income	$	2,671		$	2,122
Diluted EPS	$	0.30		$	0.25	(1)
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
(unaudited)
Assets		March 31,			March 31,
		2006			2005
Federal Funds Sold and Other Interest Bearing Cash	$	79,612		$	68,697
Investment Securities		42,076			46,593
Commercial and Other Loans		701,910			563,563
Allowance for Loan Losses		(7,803	)		(6,713	)
Other Assets		48,374			54,330
Total Assets	$	864,169		$	726,470
Liabilities and Shareholders' Equity:
Transaction Accounts	$	384,103		$	396,966
Time Deposit Accounts		290,761			225,777
FHLB Advances and Trust Preferred Securities		111,186			39,241
Other Liabilities		11,191			8,647
Shareholders' Equity		66,928			55,839
Total Liabilities and Shareholders' Equity	$	864,169		$	726,470
(1) Prior year earnings per share has been restated for the 12% stock dividend paid June 7, 2005.

Republic First Bancorp, Inc.
March 31, 2006
(unaudited)
	At or For the
	Three Months Ended
	March 31,			March 31,
Financial Data:	2006			2005
Return on average assets		1.33	%		1.15	%
Return on average equity		16.63	%		15.48	%
Share information:
Book value per share	$	7.76		$	6.89	(1)
Actual shares outstanding at period end, net of
treasury shares (227,778)		8,628,000			8,104,000	(1)
Average diluted shares outstanding		8,764,000			8,644,000	(1)
(1) Prior year share information has been restated for the 12% stock dividend paid June 7, 2005.

Republic First Bancorp, Inc.
March 31, 2006
(Dollars in thousands)
(unaudited)
Credit Quality Ratios:
	March 31,			March 31,
	2006			2005
Non-accrual and loans accruing,
but past due 90 days or more	$	3,556		$	3,212
Restructured loans		-			-
Total non-performing loans		3,556			3,212
Other real estate owned		137			137
Total non-performing assets	$	3,693		$	3,349
Non-performing loans as
a percentage of total loans		0.51	%		0.57	%
Nonperforming assets as
a percentage of total assets		0.43	%		0.46	%
Allowance for loan losses
to total loans		1.11	%		1.18	%
Allowance for loan losses
to total non-performing loans		219.43	%		209.00	%

Republic First Bancorp, Inc.
March 31, 2006
(Dollars in thousands )
(unaudited)
				Quarter-to-Date
				Average Balance Sheet
		Three months ended							Three months ended
		March 31, 2006							March 31, 2005
						Average							Average
Interest-earning Assets:		Average				Yield/			Average				Yield/
		Balance		Interest		Cost			Balance		Interest		Cost
Commercial and other loans		$	700,896	$	14,154		8.19	%	$	567,247	$	9,912		7.09	%
Investment securities	��		41,663		509		4.89			48,779		444		3.64
Federal funds sold			36,130		400		4.49			77,425		476		2.50
Total interest-earning assets			778,689		15,063		7.85			693,451		10,832		6.33
Other assets			37,689							43,694
Total assets		$	816,378	$	15,063				$	737,145	$	10,832
Interest-bearing liabilities:
Interest-bearing deposits		$	618,525	$	5,264		3.45	%	$	512,341	$	2,996		2.37	%
Borrowed funds			36,932		490		5.38			68,336		638		3.79
Interest-bearing liabilities			655,457		5,754		3.56			580,677		3,634		2.54
Non-interest and
interest-bearing funding			741,533		5,754		3.15			674,235		3,634		2.19
Other liabilities:			9,701							8,077
Total liabilities			751,234							682,312
Shareholders' equity			65,144							54,833
Total liabilities &
shareholders' equity		$	816,378						$	737,145
Net interest income				$	9,309						$	7,198
Net interest margin							4.85	%						4.20	%