NEWS RELEASE
FOR RELEASE IMMEDIATELY
Contact: Paul Frenkiel, CFO
(215) 735-4422 ext. 5255
REPUBLIC FIRST BANCORP, INC.
REPORTS 24% INCREASE IN SECOND QUARTER EARNINGS AND
25% INCREASE IN EARNINGS FOR THE SAME PERIOD IN 2005
Philadelphia, PA, July 17, 2006 - Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported second quarter 2006 earnings of $2.5 million or $.26 per diluted share, a 24% increase over the same quarter in 2005. Earnings for the six month period ending June 30, 2006 were $5.2 million or $.54* per diluted share, compared to $4.2 million or $.43* per diluted share, a 25% increase over the comparable prior year period. The improvement in 2006 earnings reflected commercial loan and deposit growth. Average loans grew in excess of 21% in second quarter 2006 compared to the second quarter of 2005.
President Harry Madonna stated, “We are very pleased with the continuing improvement in 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 future earnings in excess of our peer group, and further increasing shareholder value.”
Total shareholders’ equity stood at $69.4 million with a book value per share of $7.31* at June 30, 2006, based on outstanding common shares of approximately 9.5 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 ten 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 and book value amounts were restated to reflect the 12% stock dividend paid June 7, 2005 and the 10% stock dividend paid May 17, 2006.
Republic First Bancorp, Inc. | |||||||||||||
Condensed Income Statement | |||||||||||||
(Dollar amounts in thousands | |||||||||||||
except per share data) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||
2006 | 2005 (1) | 2006 (1) | 2005 (1) | ||||||||||
Net Interest Income | $ | 8,186 | $ | 6,931 | $ | 17,495 | $ | 14,129 | |||||
Provision for Loan Losses | 61 | 119 | 1,374 | 822 | |||||||||
Non-interest Income | 844 | 759 | 1,959 | 1,902 | |||||||||
Non-interest Expenses | 5,122 | 4,540 | 10,163 | 9,011 | |||||||||
Provision for income taxes | 1,320 | 997 | 2,719 | 2,042 | |||||||||
Net Income | $ | 2,527 | $ | 2,034 | $ | 5,198 | $ | 4,156 | |||||
Diluted EPS | $ | 0.26 | $ | 0.21 | $ | 0.54 | $ | 0.43 | |||||
Republic First Bancorp, Inc. | |||||||||||||
Condensed Balance Sheet | |||||||||||||
(Dollar amounts in thousands) | |||||||||||||
(unaudited) | |||||||||||||
Assets | June 30, | June 30, | |||||||||||
2006 | 2005 | ||||||||||||
Federal Funds Sold and Other Interest Bearing Cash | $ | 37,776 | $ | 81,978 | |||||||||
Investment Securities | 45,305 | 47,843 | |||||||||||
Commercial and Other Loans | 740,577 | 600,813 | |||||||||||
Allowance for Loan Losses | (7,756 | ) | (6,996 | ) | |||||||||
Other Assets | 45,846 | 57,887 | |||||||||||
Total Assets | $ | 861,748 | $ | 781,525 | |||||||||
Liabilities and Shareholders' Equity: | |||||||||||||
Transaction Accounts | $ | 380,357 | $ | 424,340 | |||||||||
Time Deposit Accounts | 264,384 | 151,036 | |||||||||||
FHLB Advances and Trust Preferred Securities | 138,443 | 140,842 | |||||||||||
Other Liabilities | 9,195 | 6,671 | |||||||||||
Shareholders' Equity | 69,369 | 58,636 | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 861,748 | $ | 781,525 | |||||||||
(1) EPS has been restated for the 12% stock dividend paid June 7, 2005 and the 10% stock dividend paid May 17, 2006. | |||||||||||||
Republic First Bancorp, Inc. | ||||||||||
June 30, 2006 | ||||||||||
(unaudited) | ||||||||||
At or For the Three Months Ended | At or For the Six Months Ended | |||||||||
June 30, | June 30, | June 30, | June 30, | |||||||
Financial Data: | 2006 | 2005 | 2006 | 2005 | ||||||
Return on average assets | 1.27 | % | 1.18 | % | 1.30 | % | 1.17 | % | ||
Return on average equity | 14.87 | % | 14.26 | % | 15.74 | % | 14.96 | % | ||
Share information: | ||||||||||
Book value per share | $7.31 | $6.33 | (1) | $7.31 | (1) | $6.33 | (1) | |||
Actual shares outstanding at period end, net of | ||||||||||
treasury shares (250,555) | 9,492,000 | 9,266,000 | (1) | 9,492,000 | (1) | 9,266,000 | (1) | |||
Average diluted shares outstanding | 9,750,000 | 9,600,000 | (1) | 9,696,000 | (1) | 9,554,000 | (1) | |||
(1) EPS has been restated for the 12% stock dividend paid June 7, 2005 and the 10% stock dividend paid May 17, 2006. | ||||||||||
Republic First Bancorp, Inc. | |||||||
June 30, 2006 | |||||||
(Dollars in thousands) | |||||||
(unaudited) | |||||||
Credit Quality Ratios: | |||||||
June 30 | June 30 | ||||||
2006 | 2005 | ||||||
Non-accrual and loans accruing, | |||||||
but past due 90 days or more | $ | 2,877 | $ | 3,138 | |||
Restructured loans | - | - | |||||
Total non-performing loans | 2,877 | 3,138 | |||||
Other real estate owned | 594 | 137 | |||||
Total non-performing assets | $ | 3,471 | $ | 3,275 | |||
Non-performing loans as | |||||||
a percentage of total loans | 0.39 | % | 0.52 | % | |||
Nonperforming assets as | |||||||
a percentage of total assets | 0.40 | % | 0.42 | % | |||
Allowance for loan losses | |||||||
to total loans | 1.05 | % | 1.16 | % | |||
Allowance for loan losses | |||||||
to total non-performing loans | 269.59 | % | 222.94 | % | |||
Republic First Bancorp, Inc. | |||||||||||||||||||
June 30, 2006 | |||||||||||||||||||
(Dollars in thousands ) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Quarter-to-Date Average Balance Sheet | |||||||||||||||||||
Three Months ended June 30, 2006 | Three months ended June 30, 2005 | ||||||||||||||||||
Average | Average | ||||||||||||||||||
Interest-Earning Assets: | Average | Yield/ | Average | Yield/ | |||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||
Commercial and other loans | $ | 700,313 | $ | 13,751 | 7.88 | % | $ | 577,421 | $ | 9,859 | 6.85 | % | |||||||
Investment securities | 43,131 | 566 | 5.25 | 45,046 | 441 | 3.92 | |||||||||||||
Federal funds sold | 20,656 | 252 | 4.89 | 27,900 | 195 | 2.80 | |||||||||||||
Total interest-earning assets | 764,100 | 14,569 | 7.65 | 650,367 | 10,495 | 6.47 | |||||||||||||
Other assets | 36,253 | 39,793 | |||||||||||||||||
Total assets | $ | 800,353 | $ | 14,569 | $ | 690,160 | $ | 10,495 | |||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing deposits | $ | 530,721 | $ | 4,939 | 3.73 | % | $ | 480,710 | $ | 3,020 | 2.52 | % | |||||||
Borrowed funds | 107,800 | 1,444 | 5.37 | 59,214 | 544 | 3.68 | |||||||||||||
Interest-bearing liabilities | 638,521 | 6,383 | 4.01 | 539,924 | 3,564 | 2.65 | |||||||||||||
Non-interest and | |||||||||||||||||||
interest-bearing funding | 722,804 | 6,383 | 3.54 | 626,892 | 3,564 | 2.28 | |||||||||||||
Other liabilities: | 9,408 | 6,030 | |||||||||||||||||
Total liabilities | 732,212 | 632,922 | |||||||||||||||||
Shareholders' equity | 68,141 | 57,238 | |||||||||||||||||
Total liabilities & | |||||||||||||||||||
shareholders' equity | $ | 800,353 | $ | 690,160 | |||||||||||||||
Net interest income | $ | 8,186 | $ | 6,931 | |||||||||||||||
Net interest margin | 4.30 | % | 4.27 | % | |||||||||||||||
Republic First Bancorp, Inc. | |||||||||||||||||||
June 30, 2006 | |||||||||||||||||||
(Dollars in thousands ) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Year-to-Date Average Balance Sheet | |||||||||||||||||||
Six months ended June 30, 2006 | Six months ended June 30, 2005 | ||||||||||||||||||
Average | Average | ||||||||||||||||||
Interest-Earning Assets: | Average | Yield/ | Average | Yield/ | |||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||
Commercial and other loans | $ | 700,603 | $ | 27,905 | 8.03 | % | $ | 572,106 | $ | 19,771 | 6.93 | % | |||||||
Investment securities | 42,488 | 1,076 | 5.06 | 46,902 | 885 | 3.77 | |||||||||||||
Federal funds sold | 28,350 | 652 | 4.64 | 52,526 | 671 | 2.56 | |||||||||||||
Total interest-earning assets | 771,441 | 29,633 | 7.75 | 671,534 | 21,327 | 6.37 | |||||||||||||
Other assets | 36,880 | 42,171 | |||||||||||||||||
Total assets | $ | 808,321 | $ | 29,633 | $ | 713,705 | $ | 21,327 | |||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing deposits | $ | 574,380 | $ | 10,203 | 3.58 | % | $ | 496,439 | $ | 6,016 | 2.43 | % | |||||||
Borrowed funds | 72,562 | 1,935 | 5.38 | 63,750 | 1,182 | 3.72 | |||||||||||||
Interest-bearing liabilities | 646,942 | 12,138 | 3.78 | 560,189 | 7,198 | 2.58 | |||||||||||||
Non-interest and | |||||||||||||||||||
interest-bearing funding | 732,117 | 12,138 | 3.34 | 650,434 | 7,198 | 2.22 | |||||||||||||
Other liabilities: | 9,602 | 7,235 | |||||||||||||||||
Total liabilities | 741,719 | 657,669 | |||||||||||||||||
Shareholders' equity | 66,602 | 56,036 | |||||||||||||||||
Total liabilities & | |||||||||||||||||||
shareholders' equity | $ | 808,321 | $ | 713,705 | |||||||||||||||
Net interest income | $ | 17,495 | $ | 14,129 | |||||||||||||||
Net interest margin | 4.57 | % | 4.22 | % | |||||||||||||||