Republic First Bancorp (FRBKQ) 8-K Reports First Quarter Earnings

NEWS RELEASE

FOR RELEASE IMMEDIATELY

Contact: Paul Frenkiel, CFO

(215) 735-4422 ext. 5255

REPUBLIC FIRST BANCORP, INC.

REPORTS FIRST QUARTER EARNINGS

Philadelphia, PA, April 25, 2007 - Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported first quarter 2007 earnings of $2.1 million or $.20 per diluted share, compared to $2.7 million or $.25* per diluted share for the same quarter in 2006.

The $.05 per diluted share reduction in first quarter 2007 earnings reflected a $.03 reduction from lower non-interest income, a $.02 reduction from lower net interest income (excluding the tax refund program) and a $.01 reduction from the tax refund program. These items were partially offset by the $.01 impact of reduced non-interest expenses, which was achieved despite the addition of two new branches in 2006. The $.03 non interest income reduction reflected $.02 for lower loan advisory fees, the timing of which is irregular, and a $.01 reduction in service fees on deposit accounts.

Average loans outstanding increased 14% in first quarter 2007 compared to first quarter 2006. Consistent with the Bank’s strategic plan, we will continue our business development efforts to increase lower cost core deposits, and generate other sources of non interest income. Loan demand continues to be strong, and as noted, core deposit growth will be emphasized in 2007, as the primary drivers to increasing income. Transaction accounts at March 31, 2007 increased 19% from the balance at March 31, 2006.

Included in first quarter 2007 were non-interest expenses of approximately $258,000, or $.02 per share, which were applicable to the Northeast Philadelphia and Voorhees branches opened in the second and third quarters of 2006, respectively.

Total non-performing loans were $9.1 million at March 31, 2007, an increase of $2.2 million or 31%, from the balance at December 31, 2006. The increase was due primarily to the transfer of one loan to non- accrual status in the first quarter of 2007. The impact on first quarter 2007 earnings due to this transfer was minimal. Management believes the Bank has sufficient collateral to cover the non-performing assets so that the Bank should not experience any significant losses from such loans. In addition, we believe the allowance for loan losses is adequate to absorb any potential losses in these loans and the balance of the portfolio. Accordingly, no additional provisions were made in first quarter 2007.

Harry Madonna, Chairman and Chief Executive Officer, stated, “Core deposit growth represents a significant challenge to community banks, and our efforts are focused on returning to previous years’ growth rates in this area.”

Total shareholders’ equity stood at $76.9 million with a book value per share of $7.36 at March 31, 2007, based on outstanding common shares of approximately 10.4 million. The Company continues 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 eleven offices located in Abington, Ardmore, Bala Cynwyd, East Norriton, Media and Philadelphia, Pennsylvania and Voorhees, New Jersey.

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.

# # #

* Prior year earnings per share amounts were restated to reflect the 10% stock dividend paid April 17, 2007.

Republic First Bancorp, Inc.
Condensed Income Statement
(Dollar amounts in thousands
except per share data)
(unaudited)
	Three Months Ended March 31
	2007			2006
Net Interest Income	$	7,565		$	9,309
Provision for Loan Losses		80			1,313
Non-interest Income		640			1,115
Non-interest Expenses		4,995			5,041
Provision for income taxes		1,026			1,399
Net Income	$	2,104		$	2,671
Diluted EPS	$	0.20		$	0.25	(1)
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
(unaudited)
Assets		March 31,			March 31,
		2007			2006
Federal Funds Sold and Other Interest Bearing Cash	$	27,138		$	79,612
Investment Securities		109,518			42,076
Commercial and Other Loans		832,442			701,910
Allowance for Loan Losses		(8,355	)		(7,803	)
Other Assets		46,277			48,374
Total Assets	$	1,007,020		$	864,169
Liabilities and Shareholders' Equity:
Transaction Accounts	$	457,903		$	384,103
Time Deposit Accounts		356,225			290,761
FHLB Advances and Trust Preferred Securities		102,982			111,186
Other Liabilities		12,984			11,191
Shareholders' Equity		76,926			66,928
Total Liabilities and Shareholders' Equity	$	1,007,020		$	864,169
(1) Prior year earnings per share has been restated for the 10% stock dividend paid April 17, 2007.

Republic First Bancorp, Inc.
March 31, 2007
(unaudited)
	At or For the
	Three Months Ended
	March 31,			March 31,
Financial Data:	2007			2006
Return on average assets		0.88	%		1.33	%
Return on average equity		11.26	%		16.63	%
Share information:
Book value per share	$	7.36		$	6.41	(1)
Actual shares outstanding at period end, net of
treasury shares (275,611)		10,446,000			10,439,000	(1)
Average diluted shares outstanding		10,758,000			10,605,000	(1)
(1) Prior year share information has been restated for the 10% stock dividend paid April 17, 2007.

Republic First Bancorp, Inc.
March 31, 2007
(Dollars in thousands)
(unaudited)
Credit Quality Ratios:
	March 31,			March 31,
	2007			2006
Non-accrual and loans accruing,
but past due 90 days or more	$	9,089		$	3,556
Restructured loans		-			-
Total non-performing loans		9,089			3,556
Other real estate owned		572			137
Total non-performing assets	$	9,661		$	3,693
Non-performing loans as
a percentage of total loans		1.09	%		0.51	%
Nonperforming assets as
a percentage of total assets		0.96	%		0.43	%
Allowance for loan losses
to total loans		1.00	%		1.11	%
Allowance for loan losses
to total non-performing loans		91.92	%		219.43	%

Republic First Bancorp, Inc.
March 31, 2007
(Dollars in thousands )
(unaudited)
			Quarter-to-Date
			Average Balance Sheet
	Three months ended							Three months ended
	March 31, 2007							March 31, 2006
					Average							Average
Interest-Earning Assets:	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Commercial and other loans	$	798,716	$	15,300		7.77	%	$	700,896	$	14,154		8.19	%
Investment securities		109,568		1,542		5.63			41,663		509		4.89
Federal funds sold		19,767		235		4.82			36,130		400		4.49
Total interest-earning assets		928,051		17,077		7.46			778,689		15,063		7.85
Other assets		37,416							37,689
Total assets	$	965,467	$	17,077				$	816,378	$	15,063
Interest-Bearing Liabilities:
Interest-bearing deposits	$	642,386	$	7,393		4.67	%	$	618,525	$	5,264		3.45	%
Borrowed funds		155,348		2,119		5.53			36,932		490		5.38
Interest-bearing liabilities		797,734		9,512		4.84			655,457		5,754		3.56
Non-interest and
interest-bearing funding		875,553		9,512		4.41			741,533		5,754		3.15
Other liabilities:		14,118							9,701
Total liabilities		889,671							751,234
Shareholders' equity		75,796							65,144
Total liabilities &
shareholders' equity	$	965,467						$	816,378
Net interest income			$	7,565						$	9,309
Net interest margin						3.31	%						4.85	%