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

NEWS RELEASE

FOR RELEASE IMMEDIATELY

Contact:  Paul Frenkiel, CFO

(215) 735-4422  ext. 5255

REPUBLIC FIRST BANCORP, INC.

REPORTS THIRD QUARTER EARNINGS

Philadelphia, PA, October 19, 2007 – Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported third quarter 2007 earnings of $1.2 million or $.12 per diluted share, compared to $2.4 million or $.23* per diluted share for the same quarter in 2006.  Average loans outstanding increased 13% in third quarter 2007 compared to third quarter 2006.

The $.11 per share reduction in earnings in third quarter 2007 compared to third quarter 2006 primarily reflected the following reductions: $.07 per share due to an increase in the provision for loan losses, $.06 per share from the combination of higher rates on deposits and lower rates on loans due to an increase in non-performing loans, and $.01 in one-time costs related to staff reductions. These factors were partially offset by a favorable $.03 per share from loan growth.

For third quarter 2007, interest income increased $1.7 million to $17.7 million from $16.0 million for third quarter 2006. The increase was due primarily to the increase in average loans outstanding, partially offset by the reduction of interest income from the increase in non-performing loans.

For third quarter 2007, interest expense increased $2.2 million to $9.9 million from $7.7 million for third quarter 2006.  The rate on total interest bearing deposits increased 55 basis points to 4.74% in third quarter 2007 compared to 4.19% for the same period in 2006.

Net interest income for third quarter 2007 of $7.8 million was $523,000 less than the third quarter of 2006 as a result of the above factors. Third quarter net interest margin was 3.30% compared to the 4.03% recorded in the third quarter of 2006. The reduction was due primarily to the 55 basis point increase in the rate on total interest bearing deposits and the increase in non-performing loans from $10.0 million at September 30, 2006 to $25.4 million at September 30, 2007.

The Company has historically resolved problem loans with nominal loss. The $8.8 million increase in non-accruals from June 30, 2007 to September 30, 2007 resulted from loans to a single customer of $13 million which are well secured with real estate and losses are not anticipated.  Since June 30, 2007, the Company has reduced existing non-accrual loans by $4 million without loss.  With the $.07 per share increase in the provision for loan losses, the Company has increased the allowance for loan losses to total loans ratio to 1.04%.  Management believes the loan loss reserve is adequate at current levels based upon charge-off history and monthly analysis of problem loans.

Harry Madonna, Chairman and Chief Executive Officer, stated, “The spike in non performing loans was caused by a default on three loans to related borrowers.  The loans were performing loans for over two years and the reason for the default was an alleged fraud by the borrowers involving unrelated loans from other banks.  The loans in question are well collateralized by ongoing businesses and real estate, including a large waterfront property located on the New Jersey shore.  We do not expect any losses from the loans.  Due to the downturn in the housing market, in an abundance of caution, we have increased our loan loss reserves.  The third quarter numbers also include severance costs of employee reductions to assure that the Bank is operating in an efficient manner.”

Total shareholders’ equity stood at $78.4 million with a book value per share of $7.59 at  September 30, 2007, based on outstanding common shares of approximately 10.3 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, Plymouth Meeting, 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.

Attachment  #1

Republic First Bancorp, Inc.
Condensed Income Statement
(Dollar amounts in thousands
except per share data)
(unaudited)          ;
	Three Months Ended						Nine Months Ended
	September 30						September 30
	2007			2006			2007			2006
Net Interest Income	$	7,804		$	8,327		$	22,879		$	25,822
Provision for Loan Losses		1,282			-			1,425			1,374
Non-interest Income		760			874			2,155			2,833
Non-interest Expenses		5,488			5,503			15,766			15,666
Provision for income taxes		558			1,263			2,535			3,982
Net Income	$	1,236		$	2,435		$	5,308		$	7,633
Diluted EPS	$	0.12		$	0.23	(1)	$	0.50		$	0.72	(1)
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
(unaudited)          ;
Assets	September 30,			December 31,			September 30,
	2007			2006			2006
Federal Funds Sold and Other Interest Bearing Cash	$	65,976		$	63,673		$	98,322
Investment Securities		91,291			109,176			83,237
Commercial and Other Loans		841,774			792,060			761,803
Allowance for Loan Losses		(8,791	)		(8,058	)		(7,934	)
Other Assets		49,869			51,973			44,916
Total Assets	$	1,040,119		$	1,008,824		$	980,344
Liabilities and Shareholders' Equity:
Transaction Accounts	$	359,310		$	385,950		$	368,121
Time Deposit Accounts		410,579			368,823			374,870
FHLB Advances and Trust Preferred Securities		179,776			165,909			151,980
Other Liabilities		12,082			13,408			13,306
Shareholders' Equity		78,372			74,734			72,067
Total Liabilities and Shareholders' Equity	$	1,040,119		$	1,008,824		$	980,344
(1) Prior year earnings per share has been restated for the 10% stock dividend paid April 17, 2007.

Attachment #2

Republic First Bancorp, Inc.
September 30, 2007
(unaudited)
	At or For  the				At or For  the
	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
Financial Data:	2007		2006		2007		2006
Return on average assets	0.50	%	1.13	%	0.73	%	1.24	%
Return on average equity	6.29	%	13.66	%	9.21	%	15.01	%
Share information:
Book value per share	$7.59		$7.16	(1)	$7.59		$7.16	(1)
Actual shares outstanding at period end, net of
treasury shares (416,311 and 275,611 shares, respectively)	10,319,000		10,442,000	(1)	10,319,000		10,442,000	(1)
Average diluted shares outstanding	10,598,000		10,724,000	(1)	10,698,000		10,685,000	(1)
(1) Prior year share information has been restated for the 10% stock dividend payable April 17, 2007.

Attachment #3
Republic First Bancorp, Inc.
September 30, 2007
(Dollars in thousands)
(unaudited)
Credit Quality Ratios:
	September 30,			December 31,			September 30,
	2007			2006			2006
Non-accrual and loans accruing,
but past due 90 days or more	$	25,435		$	6,916		$	9,972
Restructured loans		-			-			-
Total non-performing loans		25,435			6,916			9,972
Other real estate owned		42			572			499
Total non-performing assets	$	25,477		$	7,488		$	10,471
	Nine Months			Twelve Months			Nine Months
	Ended			Ended			Ended
	September 30,			December 31,			September 30,
	2007			2006			2006
Allowance for Loan Losses
Balance at beginning of period	$	8,058		$	7,617		$	7,617
Charge-offs:
Commercial and construction		1,028			601			445
Tax refund loans		-			1,286			1,286
Consumer		2			-			-
Total charge-offs		1,030			1,887			1,731
Recoveries:
Commercial and construction		81			37			35
Tax refund loans		256			927			639
Consumer		1			-			-
Total recoveries		338			964			674
Net charge-offs		692			923			1,057
Provision for loan losses		1,425			1,364			1,374
Balance at end of period	$	8,791		$	8,058		$	7,934
Non-performing loans as
a percentage of total loans		3.02	%		0.87	%		1.31	%
Nonperforming assets as
a percentage of total assets		2.45	%		0.74	%		1.07	%
Allowance for loan losses
to total loans		1.04	%		1.02	%		1.04	%
Allowance for loan losses
to total non-performing loans		34.56	%		116.51	%		79.56	%

Attachment #4
Republic First Bancorp, Inc.
September 30, 2007           0;
(Dollars in thousands )
(unaudited)
			Quarter-to-Date
			Average Balance Sheet
	Three months ended							Three months ended
	September 30, 2007							September 30, 2006
					Average							Average
Interest-Earning Assets:	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Commercial and other loans	$	837,417	$	16,209		7.68	%	$	742,420	$	14,868		7.95	%
Investment securities		89,042		1,329		5.97			59,736		915		6.13
Federal funds sold		10,817		139		5.10			18,524		248		5.31
Total interest-earning assets		937,276		17,677		7.48			820,680		16,031		7.75
Other assets		40,513							36,593
Total assets	$	977,789	$	17,677				$	857,273	$	16,031
Interest-bearing liabilities:
Interest-bearing deposits	$	642,651	$	7,675		4.74	%	$	582,072	$	6,078		4.19	%
Borrowed funds		162,268		2,198		5.37			114,227		1,626		5.65
Interest-bearing liabilities		804,919		9,873		4.87			696,299		7,704		4.39
Non-interest and
interest-bearing funding		885,565		9,873		4.42			775,241		7,704		3.94
Other liabilities:		14,266							11,309
Total liabilities		899,831							786,550
Shareholders' equity		77,958							70,723
Total liabilities &
shareholders' equity	$	977,789						$	857,273
Net interest income			$	7,804						$	8,327
Net interest margin						3.30	%						4.03	%

Attachment #5
Republic First Bancorp, Inc.
September 30, 2007           0;
(Dollars in thousands )
(unaudited)
			Year-to-Date
			Average Balance Sheet
	Nine months ended							Nine months ended
	September 30, 2007							September 30, 2006
					Average							Average
Interest-Earning Assets:	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Commercial and other loans	$	819,243	$	47,166		7.70	%	$	714,695	$	42,773		8.00	%
Investment securities		98,571		4,232		5.72			48,300		1,991		5.50
Federal funds sold		14,424		543		5.03			25,039		900		4.81
Total interest-earning assets		932,238		51,941		7.45			788,034		45,664		7.75
Other assets		39,029							36,940
Total assets	$	971,267	$	51,941				$	824,974	$	45,664
Interest-bearing liabilities:
Interest-bearing deposits	$	662,307	$	23,368		4.72	%	$	576,972	$	16,281		3.77	%
Borrowed funds		139,188		5,694		5.47			86,603		3,561		5.50
Interest-bearing liabilities		801,495		29,062		4.85			663,575		19,842		4.00
Non-interest and
interest-bearing funding		879,997		29,062		4.42			746,806		19,842		3.55
Other liabilities:		14,184							10,194
Total liabilities		894,181							757,000
Shareholders' equity		77,086							67,974
Total liabilities &
shareholders' equity	$	971,267						$	824,974
Net interest income			$	22,879						$	25,822
Net interest margin						3.28	%						4.38	%