Republic First Bancorp (FRBKQ) 8-K/A Reports Revised Fourth Quarter Earnings

NEWS RELEASE

FOR RELEASE IMMEDIATELY

Contact: Harry D. Madonna, CEO

(215) 735-9938

REPUBLIC FIRST BANCORP, INC.

REPORTS REVISED FOURTH QUARTER EARNINGS

Philadelphia, PA, March 4, 2009 – Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported revised fourth quarter earnings.  Due primarily to a net impairment charge of approximately $.09 per diluted share on a bank pooled trust preferred security, the Company reported a fourth quarter 2008 net loss of $416,000 or $.04 per diluted share, compared to previously reported fourth quarter 2008 net income of $505,000 or $.05 per diluted share.  The Company reported a net loss of $472,000 or $.04 per diluted share for 2008 compared to net income of $449,000 or $.04 per diluted share as previously reported.

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 twelve 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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Republic First Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
							At or for the												At or for the
							Three months ended												Twelve months ended
							%						%									%
(in thousands, except per share amounts)	12/31/08			9/30/08			Change			12/31/07			Change			12/31/08			12/31/07			Change
Income Statement Data:
Net interest income	$	7,051		$	7,618			-7	%	$	7,160			-2	%	$	28,895		$	30,039			-4	%
Provision for loan losses		1,601			43			3623	%		165			870	%		7,499			1,590			372	%
Noninterest income (loss)		(931	)		672			-239	%		918			-201	%		1,242			3,073			-60	%
Total revenues		6,120			8,290			-26	%		8,078			-24	%		30,137			33,112			-9	%
Noninterest operating expenses		5,370			6,008			-11	%		5,598			-4	%		23,887			21,364			12	%
Provision (benefit) for income taxes		(435	)		706			-162	%		738			-159	%		(777	)		3,273			-124	%
Net income (loss)		(416	)		1,533			-127	%		1,577			-126	%		(472	)		6,885			-107	%
Per Common Share Data:
Net income (loss): Basic	$	(0.04	)	$	0.14			-129	%	$	0.15			-127	%	$	(0.04	)	$	0.66			-106	%
Net income (loss): Diluted		(0.04	)		0.14			-129	%		0.15			-127	%		(0.04	)		0.65			-106	%
Book Value	$	7.46		$	7.47					$	7.80					$	7.46		$	7.80
Weighted average shares outstanding:
Basic		10,623			10,581						10,320						10,503			10,390
Diluted		10,623			12,310						10,556						10,503			10,662
Balance Sheet Data:
Total assets	$	951,980		$	964,732			-1	%							$	951,980		$	1,016,308			-6	%
Loans (net)		774,673			764,245			1	%								774,673			813,041			-5	%
Allowance for loan losses		8,409			6,807			24	%								8,409			8,508			-1	%
Investment securities - AFS		83,032			86,345			-4	%								83,032			83,659			-1	%
Investment securities - HTM		198			203			-2	%								198			282			-30	%
Restricted stock		6,836			6,401			7	%								6,836			6,358			8	%
Federal funds sold		21,159			38,382			-45	%								21,159			61,909			-66	%
Total deposits		739,167			729,487			1	%								739,167			780,855			-5	%
Core deposits*		345,501			350,215			-1	%								345,501			357,920			-3	%
FHLB and overnight advances		102,309			125,682			-19	%								102,309			133,433			-23	%
Trust preferred		22,476			22,476			0	%								22,476			11,341			98	%
Stockholders' equity		79,327			79,257			0	%								79,327			80,467			-1	%
Capital:
Stockholders' equity to total assets		8.33	%		8.22	%											8.33	%		7.92	%
Leverage ratio		11.14	%		11.02	%											11.14	%		9.44	%
Risk based capital ratios:
Tier 1		12.26	%		12.28	%											12.26	%		10.07	%
Total Capital		13.26	%		13.09	%											13.26	%		11.01	%
Performance Ratios:
Cost of funds		2.51	%		2.77	%					4.20	%					2.94	%		4.36	%
Deposit cost of funds		2.50	%		2.69	%					4.09	%					2.92	%		4.18	%
Net interest margin		3.25	%		3.48	%					3.11	%					3.28	%		3.26	%
Return on average assets		-0.18	%		0.65	%					0.65	%					-0.05	%		0.71	%
Return on average total stockholders' equity		-2.08	%		7.76	%					7.88	%					-0.60	%		8.86	%
Asset Quality
Net charge-offs to average loans outstanding		0.00	%		0.00	%											0.96	%		0.14	%
Nonperforming assets to total period-end assets		2.72	%		1.64	%											2.72	%		2.55	%
Allowance for loan losses to total period-end loans		1.07	%		0.88	%											1.07	%		1.04	%
Allowance for loan losses to nonperforming loans		49	%		93	%											49	%		38	%
Nonperforming assets to capital and reserves		30	%		18	%											30	%		29	%
* Core deposits exclude certificates of deposit

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Republic First Bancorp, Inc. Average Balances and Net Interest Income
(unaudited)
	For the three months ended							For the three months ended							For the three months ended							For the twelve months ended							For the twelve months ended
	December 31, 2008							September 30, 2008							December 31, 2007							December 31, 2008							December 31, 2007
Interest-earning assets:
			Interest							Interest							Interest							Interest							Interest
(Dollars in thousands)	Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate
Federal funds sold
and other interest-
earning assets	$	7,863	$	19		0.96	%	$	8,568	$	45		2.09	%	$	12,439	$	139		4.56	%	$	9,821	$	218		2.22	%	$	13,923	$	686		4.93	%
Securities		94,903		1,321		5.57	%		92,525		1,334		5.77	%		87,240		1,316		5.98	%		89,365		5,135		5.75	%		95,715		5,752		6.01	%
Loans receivable		767,597		11,025		5.71	%		775,642		12,208		6.26	%		823,751		15,018		7.23	%		789,446		48,846		6.19	%		820,380		62,184		7.58	%
Total interest-earning assets		870,363		12,365		5.65	%		876,735		13,587		6.17	%		923,430		16,473		7.08	%		888,632		54,199		6.10	%		930,018		68,622		7.38	%
Other assets		49,664							57,371							42,437							51,349							39,889
Total assets	$	920,027						$	934,106						$	965,867						$	939,981						$	969,907
Interest-bearing liabilities:
Demand-non interest
bearing	$	77,221						$	71,990						$	79,052						$	76,671						$	78,641
Demand interest-bearing		31,644	$	44		0.55	%		31,090	$	68		0.87	%		36,132	$	101		1.11	%		33,976	$	327		0.96	%		38,850	$	428		1.10	%
Money market & savings		230,668		1,487		2.56	%		240,554		1,625		2.69	%		241,357		2,566		4.22	%		222,590		6,150		2.76	%		266,706		11,936		4.48	%
Time deposits		384,352		3,019		3.12	%		381,820		3,216		3.35	%		402,151		5,151		5.08	%		397,740		14,844		3.73	%		361,120		18,822		5.21	%
Total deposits		723,885		4,550		2.50	%		725,454		4,909		2.69	%		758,692		7,818		4.09	%		730,977		21,321		2.92	%		745,317		31,186		4.18	%
Total interest-bearing
deposits		646,664		4,550		2.80	%		653,464		4,909		2.99	%		679,640		7,818		4.56	%		654,306		21,321		3.26	%		666,676		31,186		4.68	%
Other borrowings		109,608		714		2.59	%		122,709		1,005		3.26	%		115,121		1,427		4.92	%		121,236		3,760		3.10	%		133,122		7,121		5.35	%
Total interest-bearing
liabilities	$	756,272	$	5,264		2.77	%	$	776,173	$	5,914		3.03	%	$	794,761	$	9,245		4.62	%	$	775,542	$	25,081		3.23	%	$	799,798	$	38,307		4.79	%
Total deposits and
other borrowings		833,493		5,264		2.51	%		848,163		5,914		2.77	%		873,813		9,245		4.20	%		852,213		25,081		2.94	%		878,439		38,307		4.36	%
Non interest-bearing
liabilities		7,034							7,393							12,628							8,459							13,734
Shareholders' equity		79,500							78,550							79,426							79,309							77,734
Total liabilities and
shareholders' equity	$	920,027						$	934,106						$	965,867						$	939,981						$	969,907
Net interest income			$	7,101						$	7,673						$	7,228						$	29,118						$	30,315
Net interest spread						2.88	%						3.14	%						2.46	%						2.87	%						2.59	%
Net interest margin						3.25	%						3.48	%						3.11	%						3.28	%						3.26	%
The above tables are presented on a tax equivalent basis.

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Republic First Bancorp, Inc.
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
	Three months ended									Twelve months ended
(dollar amounts in thousands)	12/31/08			9/30/08			12/31/07			12/31/08			12/31/07
Balance at beginning of period	$	6,807		$	6,760		$	8,791		$	8,508		$	8,058
Provisions charged to operating expense		1,601			43			165			7,499			1,590
		8,408			6,803			8,956			16,007			9,648
Recoveries on loans charged-off:
Commercial		-			2			-			119			81
Tax refund loans		-			8			27			77			283
Consumer		1			-			1			3			2
Total recoveries		1			10			28			199			366
Loans charged-off:
Commercial		-			-			(475	)		(7,778	)		(1,503	)
Tax refund loans		-			-			-			-			-
Consumer		-			(6	)		(1	)		(19	)		(3	)
Total charged-off		-			(6	)		(476	)		(7,797	)		(1,506	)
Net charge-offs		1			4			(448	)		(7,598	)		(1,140	)
Balance at end of period	$	8,409		$	6,807		$	8,508		$	8,409		$	8,508
Net charge-offs as a percentage of
average loans outstanding		0.00	%		0.00	%		0.22	%		0.96	%		0.14	%
Allowance for loan losses as a percentage of
period-end loans		1.07	%		0.88	%		1.04	%		1.07	%		1.04	%

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Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
	December 31,			September 30,			June 30,			March 31,			December 31,
	2008			2008			2008			2008			2007
Nonaccrual loans:
Commercial real estate	$	16,424		$	6,369		$	2,366		$	2,427		$	14,757
Construction		-			-			-			-			6,747
Consumer and other		909			918			780			640			776
Total nonaccrual loans		17,333			7,287			3,146			3,067			22,280
Loans past due 90 days or more
and still accruing		-			-			-			-			-
Renegotiated loans		-			-			-			-			-
Total nonperforming loans		17,333			7,287			3,146			3,067			22,280
Other real estate owned		8,580			8,580			14,245			16,378			3,681
Total nonperforming assets	$	25,913		$	15,867		$	17,391		$	19,445		$	25,961
Nonperforming loans to total loans		2.21	%		0.95	%		0.40	%		0.38	%		2.71	%
Nonperforming assets to total assets		2.72	%		1.64	%		1.84	%		1.95	%		2.55	%
Nonperforming loan coverage		49	%		93	%		215	%		331	%		38	%
Allowance for loan losses as a percentage
of total period-end loans		1.07	%		0.88	%		0.85	%		1.27	%		1.04	%
Nonperforming assets/capital plus allowance for loan losses		30	%		18	%		20	%		22	%		29	%

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