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, 2008 – Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported that first quarter 2008 earnings were impacted by an increased loan loss provision and OREO charges which amounted to $4.4 million or $.41 per share on an after-tax basis. Without those provisions and charges, earnings would have been $1.6 million or $.15 per diluted share compared to $2.1 million or $.20 per diluted share for the same quarter in 2007. The referenced loan loss provision and OREO charges reduced net income to a negative $2.8 million or a loss of $.26 per share.
Harry D. Madonna, Chairman and Chief Executive Officer, stated, “As we advised in past press releases and in regulatory filings, the Bank experienced a significant increase in non-performing loans during the second half of 2007. The non-performing loan numbers were exacerbated by the problems in the general economy and the deterioration of real estate values which represent a substantial portion of the collateral for the non-performing loans. Management has been working to take control of all collateral securing the non-performing loans. This process includes working through bankruptcy and foreclosure proceedings, as well as obtaining “deeds in lieu” from borrowers. We also have been carefully reviewing our entire loan portfolio for potential problems.
The first quarter numbers reflect the Bank’s progress in selling a number of the properties collateralizing non-performing loans, moving collateral into real estate owned, taking appropriate charge offs to reflect present market value of all real estate owned, and making significant additions to our allowance for loan losses, which should mitigate further losses from such loans. We will continue the process of selling the real estate owned and the assets which collateralize the remaining non-performing loans.
Total shareholders’ equity stood at $77.7 million with a book value per share of $7.48 at March 31, 2008, 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, 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.
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Attachment #1 | ||||||||||||
Republic First Bancorp, Inc. | ||||||||||||
Condensed Income Statement | ||||||||||||
(Dollar amounts in thousands | ||||||||||||
except per share data) | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2008 | 2007 | |||||||||||
Net Interest Income | $ | 7,222 | $ | 7,565 | ||||||||
Provision for Loan Losses | 5,812 | 80 | ||||||||||
Non-interest Income | 665 | 640 | ||||||||||
Non-interest Expenses | 6,448 | 4,995 | ||||||||||
Provision for income taxes (benefit) | (1,595 | ) | 1,026 | |||||||||
Net Income (Loss) | $ | (2,778 | ) | $ | 2,104 | |||||||
Diluted EPS | $ | (0.26 | ) | $ | 0.20 | |||||||
Republic First Bancorp, Inc. | ||||||||||||
Condensed Balance Sheet | ||||||||||||
(Dollar amounts in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Assets | March 31, | December 31, | March 31, | |||||||||
2008 | 2007 | 2007 | ||||||||||
Federal Funds Sold and Other Interest Bearing Cash | $ | 55,734 | $ | 62,229 | $ | 27,138 | ||||||
Investment Securities | 86,360 | 90,299 | 109,518 | |||||||||
Commercial and Other Loans | 797,501 | 821,549 | 832,442 | |||||||||
Allowance for Loan Losses | (10,156 | ) | (8,508 | ) | (8,355 | ) | ||||||
Other Assets | 69,724 | 50,739 | 46,277 | |||||||||
Total Assets | $ | 999,163 | $ | 1,016,308 | $ | 1,007,020 | ||||||
Liabilities and Shareholders' Equity: | ||||||||||||
Transaction Accounts | $ | 322,433 | $ | 357,920 | $ | 457,903 | ||||||
Time Deposit Accounts | 427,099 | 422,935 | 356,225 | |||||||||
FHLB Advances and Trust Preferred Securities | 164,008 | 144,774 | 102,982 | |||||||||
Other Liabilities | 7,946 | 10,212 | 12,984 | |||||||||
Shareholders' Equity | 77,677 | 80,467 | 76,926 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 999,163 | $ | 1,016,308 | $ | 1,007,020 |
Attachment #2 | ||||||||
Republic First Bancorp, Inc. | ||||||||
March 31, 2008 | ||||||||
(unaudited) | ||||||||
At or For the | ||||||||
Three Months Ended | ||||||||
March 31, | March 31, | |||||||
Financial Data: | 2008 | 2007 | ||||||
Return on average assets | -1.16 | % | 0.88 | % | ||||
Return on average equity | -13.90 | % | 11.26 | % | ||||
Share information: | ||||||||
Book value per share | $ | 7.48 | $ | 7.36 | ||||
Actual shares outstanding at period end, net of | ||||||||
treasury shares (416,303) | 10,384,000 | 10,446,000 | ||||||
Average diluted shares outstanding | 10,504,000 | 10,758,000 |
Attachment #3 | ||||||||||||
Republic First Bancorp, Inc. | ||||||||||||
March 31, 2008 | ||||||||||||
(Dollars in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Credit Quality Ratios: | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2008 | 2007 | 2007 | ||||||||||
Non-accrual and loans accruing, | ||||||||||||
but past due 90 days or more | $ | 3,067 | $ | 22,280 | $ | 9,089 | ||||||
Restructured loans | - | - | - | |||||||||
Total non-performing loans | 3,067 | 22,280 | 9,089 | |||||||||
Other real estate owned | 16,378 | 3,681 | 572 | |||||||||
Total non-performing assets | $ | 19,445 | $ | 25,961 | $ | 9,661 | ||||||
Three Months | Twelve Months | Three Months | ||||||||||
Ended | Ended | Ended | ||||||||||
March 31, | December 31, | March 31, | ||||||||||
2008 | 2007 | 2007 | ||||||||||
Allowance for Loan Losses | ||||||||||||
Balance at beginning of period | $ | 8,508 | $ | 8,058 | $ | 8,058 | ||||||
Charge-offs: | ||||||||||||
Commercial and construction | 4,344 | 1,503 | - | |||||||||
Tax refund loans | - | - | - | |||||||||
Consumer | 8 | 3 | - | |||||||||
Total charge-offs | 4,352 | 1,506 | - | |||||||||
Recoveries: | ||||||||||||
Commercial and construction | 117 | 81 | 9 | |||||||||
Tax refund loans | 69 | 283 | 207 | |||||||||
Consumer | 2 | 2 | 1 | |||||||||
Total recoveries | 188 | 366 | 217 | |||||||||
Net charge-offs (recoveries) | 4,164 | 1,140 | (217 | ) | ||||||||
Provision for loan losses | 5,812 | 1,590 | 80 | |||||||||
Balance at end of period | $ | 10,156 | $ | 8,508 | $ | 8,355 | ||||||
Non-performing loans as | ||||||||||||
a percentage of total loans | 0.38 | % | 2.71 | % | 1.09 | % | ||||||
Nonperforming assets as | ||||||||||||
a percentage of total assets | 1.95 | % | 2.55 | % | 0.96 | % | ||||||
Allowance for loan losses | ||||||||||||
to total loans | 1.27 | % | 1.04 | % | 1.00 | % | ||||||
Allowance for loan losses | ||||||||||||
to total non-performing loans | 331.14 | % | 38.19 | % | 91.92 | % |
Attachment #4 | ||||||||||||||||||||||||
Republic First Bancorp, Inc. | ||||||||||||||||||||||||
March 31, 2008 | ||||||||||||||||||||||||
(Dollars in thousands ) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Quarter-to-Date | ||||||||||||||||||||||||
Average Balance Sheet | ||||||||||||||||||||||||
Three months ended | Three months ended | |||||||||||||||||||||||
March 31, 2008 | March 31, 2007 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Interest-Earning Assets: | Average | Yield/ | Average | Yield/ | ||||||||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||||||
Commercial and other loans | $ | 817,702 | $ | 13,453 | 6.62 | % | $ | 798,716 | $ | 15,300 | 7.77 | % | ||||||||||||
Investment securities | 87,545 | 1,252 | 5.72 | 109,568 | 1,542 | 5.63 | ||||||||||||||||||
Federal funds sold | 12,271 | 96 | 3.15 | 19,767 | 235 | 4.82 | ||||||||||||||||||
Total interest-earning assets | 917,518 | 14,801 | 6.49 | 928,051 | 17,077 | 7.46 | ||||||||||||||||||
Other assets | 42,977 | 37,416 | ||||||||||||||||||||||
Total assets | $ | 960,495 | $ | 14,801 | $ | 965,467 | $ | 17,077 | ||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 633,604 | $ | 6,253 | 3.97 | % | $ | 642,386 | $ | 7,393 | 4.67 | % | ||||||||||||
�� | ||||||||||||||||||||||||
Borrowed funds | 151,552 | 1,326 | 3.52 | 155,348 | 2,119 | 5.53 | ||||||||||||||||||
Interest-bearing liabilities | 785,156 | 7,579 | 3.88 | 797,734 | 9,512 | 4.84 | ||||||||||||||||||
Non-interest and | ||||||||||||||||||||||||
interest-bearing funding | 868,549 | 7,579 | 3.51 | 875,553 | 9,512 | 4.41 | ||||||||||||||||||
Other liabilities: | 11,558 | 14,118 | ||||||||||||||||||||||
Total liabilities | 880,107 | 889,671 | ||||||||||||||||||||||
Shareholders' equity | 80,388 | 75,796 | ||||||||||||||||||||||
Total liabilities & | ||||||||||||||||||||||||
shareholders' equity | $ | 960,495 | $ | 965,467 | ||||||||||||||||||||
Net interest income | $ | 7,222 | $ | 7,565 | ||||||||||||||||||||
Net interest margin | 3.17 | % | 3.31 | % |