Republic First Bancorp (FRBKQ) 8-K Republic First Bancorp, Inc. Reports Financial Results for Second Quarter 2011

Exhibit 99.1

  News Release Republic First Bancorp, Inc. July 29, 2011

REPUBLIC FIRST BANCORP, INC. REPORTS FINANCIAL RESULTS FOR SECOND QUARTER 2011

Philadelphia, PA, July 29, 2011 (PR Newswire) – Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the three month period ended June 30, 2011.

During the second quarter of 2011, the Company recorded a net loss of $0.5 million, or $0.02 per share, compared to a net loss of $7.1 million, or $0.60 per share, for the second quarter of 2010.

“We continue to make strides in a positive direction related to the resolution of credit quality concerns on our balance sheet today,” said Harry D. Madonna, the Company’s Chairman and Chief Executive Officer. “Non-performing assets are lower for a fourth consecutive quarter as of June 30, 2011 and other credit quality indicators continue to steadily improve.”

“Over the past two years we have transformed Republic into a new bank with a new brand, new management team, renovated store locations and a retail model focused on fanatical customer service,” said Madonna.  “During this time we have strengthened our capital position and brought stabilization to the balance sheet in an incredibly challenging economic environment. Unfortunately our earnings continue to be negatively impacted by some of the remaining asset quality issues originated under the old bank model prior to 2008. We firmly believe that our current strategy, along with our overall financial strength, will carry us through any challenges that may lie ahead and also puts us in a position to expand and take advantage of future opportunities.”

Highlights for the Three Months Ended June 30, 2011

Ø Capital levels remain strong with a Total Risk-Based Capital ratio of 14.07% and a Tier I Leverage Ratio of 10.67% at June 30, 2011

Ø Tangible book value per share as of June 30, 2011 was $3.36

Ø Core deposits increased by $46.4 million, or 7%, on a linked quarter basis as of June 30, 2011

Ø Increased the allowance for loan losses to $15.1 million, or 2.36% of total loans, as of June 30, 2011

Ø Increased outstanding loan balances on a linked quarter basis by $8.6 million to $639.4 million at June 30, 2011, compared to $630.8 million at March 31, 2011

Ø Reduced non-performing asset balances for a fourth consecutive quarter

Ø The net interest margin improved to 3.61% for the three months ended June 30, 2011 compared to 3.42% for the three months ended June 30, 2010

Income Statement

The Company reported a net loss of $0.5 million or $0.02 per share, for the three months ended June 30, 2011, compared to a net loss of $7.1 million, or $0.60 per share, for the three months ended June 30, 2010.

The loan loss provision decreased to $1.5 million for the quarter ended June 30, 2011 compared to $10.8 million for the quarter ended June 30, 2010 as credit quality indicators continue to stabilize. The loan loss provision recorded during the second quarter of 2011  primarily relates to updated appraisals of collateral for troubled loans originated prior to 2008.

The Company continues to lower its cost of funds as evidenced by a decrease of 21 basis points to 1.03% for the three months ended June 30, 2011, compared to 1.24% for the three months ended June 30, 2010. The net interest margin improved to 3.61% for the quarter ended June 30, 2011 compared to 3.42% for the quarter ended June 30, 2010.

Non-interest income increased to $2.1 million for the three months ended June 30, 2011 compared to $0.3 million for the three months ended June 30, 2010, as the Company continued to recognize gains on the sale of SBA loans during the second quarter 2011. The experienced SBA lending team hired by the Company earlier in the year is now ranked as the #1 SBA lender in New Jersey and the #36 lender in the nation based on the dollar volume of loan originations.

Balance Sheet

The major components of the balance sheet are as follows (dollars in thousands):

Description	June 30, 2011		March 31, 2011		% Change			June 30, 2010		% Change
Total assets	$	900,892	$	877,081		3	%	$	934,303		(4	%)
Total loans (net)		624,280		616,360		1	%		658,812		(5	%)
Total deposits		783,102		761,077		3	%		805,211		(3	%)
Total core deposits		718,053		671,605		7	%		681,765		5	%

Net loans increased by $7.9 million to $624.3 million as of June 30, 2011, compared to $616.4 million as of March 31, 2011. Core deposits increased by $46.4 million, or 7%, as of June 30, 2011 compared to March 31, 2011 as a result of the Company’s retail strategy which focuses on relationship banking.

Total deposits decreased by $22.1 million, or 3%, as of June 30, 2011 when compared to June 30, 2010, primarily as a result of the Company’s intentional effort to reduce its dependence on wholesale funding sources in the brokered and public fund certificate of deposit market.  Liquidity continues to improve as the Company has currently eliminated the need for outside borrowings and has significantly reduced its dependence on wholesale funding sources.

2

Core Deposits

Core deposits by type of account are as follows (dollars in thousands):

Description	June 30, 2011		March 31, 2011		% Change			June 30, 2010		% Change			2nd Qtr 2011 Cost of Funds
Demand noninterest-bearing	$	113,641	$	78,221		45	%	$	117,169		(3	%)		0.00	%
Demand interest-bearing		97,149		76,349		27	%		64,636		50	%		0.68	%
Money market and savings		321,971		333,457		(3	%)		311,790		3	%		1.02	%
Certificates of deposit		185,292		183,578		1	%		188,170		(2	%)		1.38	%
Total core deposits	$	718,053	$	671,605		7	%	$	681,765		5	%		0.92	%

Core deposits increased to $718.1 million at June 30, 2011 compared to $681.8 million at June 30, 2010 as the Company continues to focus its effort on the gathering of low-cost core deposits. At the same time, the Company reduced the overall deposit cost of funds to 0.92% for the three month period ending June 30, 2011 compared to 1.10% for the three month period ending June 30, 2010.

Lending

Loans by type of customer are as follows (dollars in thousands):

Description	June 30, 2011		% of Total			March 31, 2011		% of Total			June 30, 2010		% of Total
Commercial	$	81,783		13	%	$	78,735		12	%	$	92,500		14	%
Owner occupied		81,799		13	%		79,412		13	%		84,507		13	%
Total commercial		163,582		26	%		158,147		25	%		177,007		27	%
Consumer & residential		20,149		3	%		20,884		3	%		21,756		3	%
Commercial real estate		455,657		71	%		451,779		72	%		470,325		70	%
Gross loans	$	639,388		100	%	$	630,810		100	%	$	669,088		100	%

Gross loans increased for a second consecutive quarter to $639.4 million as of June 30, 2011 as the Company continues to realize a steady return to quality loan demand.

3

Asset Quality

The Company’s asset quality ratios are highlighted below:

	Quarter Ended
Ratio	June 30, 2011	March 31, 2011	June 30, 2010
Non-performing assets/total assets	5.78%	6.07%	6.69%
Quarterly net loan charge-offs (recoveries)/average loans	0.53%	0.35%	8.38%
Allowance for loan losses/gross loans	2.36%	2.29%	1.54%
Allowance for loan losses/non-performing loans	39%	37%	20%
Non-performing assets/capital and reserves	51%	53%	63%

Non-performing assets trended lower for a fourth consecutive quarter to $52.0 million, or 5.78% of total assets, at June 30, 2011, compared to $62.5 million, or 6.69% of total assets, as of June 30, 2010. The allowance for loan losses as a percentage of total loans increased to 2.36% as of June 30, 2011, compared to 1.54%  as of June 30, 2010.

Every non-performing asset currently on the books was originated under the old bank model prior to December 31, 2007. The Company will continue to aggressively pursue resolutions for each non-performing asset.

Capital

The Company’s capital regulatory ratios at June 30, 2011 were as follows:

	Republic First Bancorp, Inc.	Regulatory Guidelines “Well Capitalized”
Leverage Ratio	10.67%	5.00%
Tier 1 Risk Based Capital	12.83%	6.00%
Total Risk Based Capital	14.07%	10.00%

Total shareholders’ equity was $87.2 million at June 30, 2011 which represented a book value per share of $3.36, based on common shares outstanding of approximately 26.0 million.

The Company, along with its banking subsidiary, continue to maintain strong capital ratios and are considered well capitalized under the regulatory guidelines as established by federal banking agencies.

4

About Republic Bank

Republic Bank is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its thirteen offices located in Abington, Ardmore, Bala Cynwyd, Plymouth Meeting, Media and Philadelphia, Pennsylvania and Voorhees and Haddonfield, New Jersey.

Forward Looking Statements

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.  The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements.  For example, risks and uncertainties can arise with changes in: general economic conditions, including their impact on capital expenditures; new service and product offerings by competitors and price pressures; and similar items.  You should carefully review the risk factors described in the Form 10-K for the year ended December 31, 2010 and other documents the Company files from time to time with the Securities and Exchange Commission. The words “may”, “believes,” “expect,” “estimate,” “project,” “anticipate,” “should,” “intend,” “probability,” “risk,” “target,” “objective,” and similar expressions or variations on such 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 U.S. 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, except as may be required by applicable law or regulations.

Source:

Republic First Bancorp, Inc.

Contact:

Frank A. Cavallaro, CFO

(215) 735-4422

5

Republic First Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
	Three months ended															Six months ended
(dollars in thousands, except per share amounts)	6/30/11			3/31/11			% Change			6/30/10			% Change			6/30/11			6/30/10			% Change
Income Statement Data:
Net interest income	$	7,526		$	7,420			1	%	$	7,511			0	%	$	14,946		$	14,920			0	%
Provision for loan losses		1,500			3,550			58	%		10,750			(86	%)		5,050			16,250			(69	%)
Non-interest income		2,076			1,127			84	%		254			717	%		3,203			729			339	%
Total revenues		9,602			8,547			12	%		7,765			24	%		18,149			15,649			16	%
Non-interest expenses		9,011			8,992			0	%		7,953			13	%		18,003			16,358			10	%
Provision (benefit) for income taxes		(429	)		(1,487	)		(71	%)		(3,883	)		89	%		(1,916	)		(6,042	)		68	%
Net income (loss)		(480	)		(2,508	)		(81	%)		(7,055	)		93	%		(2,988	)		(10,917	)		73	%
Per Common Share Data:
Net income (loss): Basic	$	(0.02	)	$	(0.10	)		(80	%)	$	(0.60	)		97	%	$	(0.12	)	$	(0.98	)		88	%
Net income (loss): Diluted		(0.02	)		(0.10	)		(80	%)		(0.60	)		97	%		(0.12	)		(0.98	)		88	%
Book Value	$	3.36		$	3.33					$	3.47					$	3.36		$	3.47
Weighted average shares outstanding:
Basic		25,973			25,973						11,707						25,973			11,142
Diluted		25,973			25,973						11,707						25,973			11,142
Balance Sheet Data:
Total assets	$	900,892		$	877,081			3	%	$	934,303			(4	%)	$	900,892		$	934,303			(4	%)
Loans (net)		624,280			616,360			1	%		658,812			(5	%)		624,280			658,812			(5	%)
Allowance for loan losses		15,108			14,450			5	%		10,276			47	%		15,108			10,276			47	%
Investment securities		168,242			145,969			15	%		180,489			(7	%)		168,242			180,489			(7	%)
Total deposits		783,102			761,077			3	%		805,211			(3	%)		783,102			805,211			(3	%)
Core deposits*		718,053			671,605			7	%		681,765			5	%		718,053			681,765			5	%
Public and brokered certificates of deposit		65,049			89,472			(27	%)		123,446			(47	%)		65,049			123,446			(47	%)
Other borrowed money		-			-						9,149			(100	%)		-			9,149			(100	%)
Subordinated debt		22,476			22,476			-			22,476			-			22,476			22,476			-
Stockholders' equity		87,165			86,384			1	%		88,761			(2	%)		87,165			88,761			(2	%)
Capital:
Stockholders' equity to total assets		9.68	%		9.85	%					9.50	%					9.68	%		9.50	%
Leverage ratio		10.67	%		11.25	%					10.59	%					10.67	%		10.59	%
Risk based capital ratios:
Tier 1		12.83	%		13.02	%					12.82	%					12.83	%		12.82	%
Total Capital		14.07	%		14.28	%					14.07	%					14.07	%		14.07	%
Performance Ratios:
Cost of funds		1.03	%		1.00	%					1.24	%					1.02	%		1.31	%
Deposit cost of funds		0.92	%		0.88	%					1.10	%					0.91	%		1.16	%
Net interest margin		3.61	%		3.84	%					3.42	%					3.72	%		3.40	%
Return on average assets		(0.21	%)		(1.17	%)					(2.96	%)					(0.67	%)		(2.28	%)
Return on average total stockholders' equity		(2.21	%)		(11.59	%)					(39.55	%)					(6.88	%)		(30.61	%)
Asset Quality
Net charge-offs to average loans outstanding		0.53	%		0.35	%					8.38	%					0.44	%		5.56	%
Nonperforming assets to total period-end assets		5.78	%		6.07	%					6.69	%					5.78	%		6.69	%
Allowance for loan losses to total period-end loans		2.36	%		2.29	%					1.54	%					2.36	%		1.54	%
Allowance for loan losses to nonperforming loans		38.81	%		36.90	%					19.83	%					38.81	%		19.83	%
Nonperforming assets to capital and reserves		50.88	%		52.80	%					63.07	%					50.88	%		63.07	%
* Core deposits equal total deposits less public and brokered certificates of deposit

Republic First Bancorp, Inc. Average Balances and Net Interest Income
(unaudited)
(dollars in thousands)	For the three months ended June 30, 2011							For the three months ended March 31, 2011							For the three months ended June 30, 2010
			Interest							Interest							Interest
	Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate
Interest-earning assets:
Federal funds sold and other interest-earning assets	$	51,808	$	34		0.26	%	$	14,675	$	14		0.39	%	$	23,751	$	16		0.27	%
Securities		160,764		1,297		3.23	%		149,485		1,170		3.13	%		183,421		1,602		3.49	%
Loans receivable		636,128		8,430		5.32	%		629,825		8,248		5.31	%		679,889		8,675		5.12	%
Total interest-earning assets		848,700		9,761		4.61	%		793,985		9,432		4.81	%		887,061		10,293		4.65	%
Other assets		71,967							76,454							69,564
Total assets	$	920,667						$	870,439						$	956,625
Interest-bearing liabilities:
Demand non interest-bearing	$	101,395						$	127,055						$	118,223
Demand interest-bearing		98,435	$	168		0.68	%		63,870	$	98		0.62	%		63,277	$	125		0.79	%
Money market & savings		339,603		860		1.02	%		309,805		799		1.05	%		321,689		912		1.14	%
Time deposits		264,070		825		1.25	%		241,191		721		1.21	%		329,699		1,239		1.51	%
Total deposits		803,503		1,853		0.92	%		741,921		1,618		0.88	%		832,888		2,276		1.10	%
Total interest-bearing deposits		702,108		1,853		1.06	%		614,866		1,618		1.07	%		714,665		2,276		1.28	%
Other borrowings		22,478		278		4.96	%		31,946		296		3.76	%		46,507		447		3.86	%
Total interest-bearing liabilities	$	724,586	$	2,131		1.18	%	$	646,812	$	1,914		1.20	%	$	761,172	$	2,723		1.43	%
Total deposits and other borrowings		825,981		2,131		1.03	%		773,867		1,914		1.00	%		879,395		2,723		1.24	%
Non interest-bearing liabilities		7,683							8,781							5,681
Shareholders' equity		87,003							87,791							71,549
Total liabilities and shareholders' equity	$	920,667						$	870,439						$	956,625
Net interest income			$	7,630						$	7,518						$	7,570
Net interest spread						3.43	%						3.61	%						3.22	%
Net interest margin						3.61	%						3.84	%						3.42	%
The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc. Average Balances and Net Interest Income
(unaudited)
	For the six months ended							For the six months ended
(dollars in thousands)	June 30, 2011							June 30, 2010
			Interest							Interest
	Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate
Interest-earning assets:
Federal funds sold and other
interest-earning assets	$	33,344	$	48		0.29	%	$	23,298	$	36		0.31	%
Securities		155,156		2,467		3.18	%		187,060		3,318		3.55	%
Loans receivable		632,994		16,678		5.31	%		681,857		17,434		5.16	%
Total interest-earning assets		821,494		19,193		4.71	%		892,215		20,788		4.70	%
Other assets		74,198							71,528
Total assets	$	895,692						$	963,743
Interest-bearing liabilities:
Demand non interest-bearing	$	114,154						$	121,791
Demand interest-bearing		81,248	$	266		0.66	%		56,429	$	207		0.74	%
Money market & savings		324,786		1,659		1.03	%		314,814		1,962		1.26	%
Time deposits		252,694		1,546		1.23	%		345,162		2,644		1.54	%
Total deposits		772,882		3,471		0.91	%		838,196		4,813		1.16	%
Total interest-bearing deposits		658,728		3,471		1.06	%		716,405		4,813		1.35	%
Other borrowings		27,186		574		4.26	%		47,541		936		3.97	%
Total interest-bearing liabilities		685,914		4,045		1.19	%		763,946		5,749		1.52	%
Total deposits and
other borrowings		800,068		4,045		1.02	%		885,737		5,749		1.31	%
Non interest-bearing liabilities		8,082							6,083
Shareholders' equity		87,542							71,923
Total liabilities and
shareholders' equity	$	895,692						$	963,743
Net interest income			$	15,148						$	15,039
Net interest spread						3.52	%						3.18	%
Net interest margin						3.72	%						3.40	%
The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc.
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
										Year
	Three months ended									ended			Six months ended
(dollars in thousands)	6/30/11			3/31/11			6/30/10			12/31/10			6/30/11			6/30/10
Balance at beginning of period	$	14,450		$	11,444		$	13,725		$	12,841		$	11,444		$	12,841
Provisions charged to operating
expense		1,500			3,550			10,750			16,600			5,050			16,250
		15,950			14,994			24,475			29,441			16,494			29,091
Recoveries on loans charged-off:
Commercial		2			9			113			1,168			11			263
Consumer		38			-			-			3			38			-
Total recoveries		40			9			113			1,171			49			263
Loans charged-off:
Commercial		(882	)		(522	)		(14,270	)		(19,126	)		(1,404	)		(19,036	)
Consumer		-			(31	)		(42	)		(42	)		(31	)		(42	)
Total charged-off		(882	)		(553	)		(14,312	)		(19,168	)		(1,435	)		(19,078	)
Net charge-offs		(842	)		(544	)		(14,199	)		(17,997	)		(1,386	)		(18,815	)
Balance at end of period	$	15,108		$	14,450		$	10,276		$	11,444		$	15,108		$	10,276
Net charge-offs as a percentage of
average loans outstanding		0.53	%		0.35	%		8.38	%		2.73	%		0.44	%		5.56	%
Allowance for loan losses as a percentage of
period-end loans		2.36	%		2.29	%		1.54	%		1.84	%		2.36	%		1.54	%

Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)	2011			2011			2010			2010			2010
Non-accrual loans:
Commercial real estate	$	36,642		$	38,187		$	39,302		$	45,958		$	51,213
Consumer and other		949			974			690			574			599
Total non-accrual loans		37,591			39,161			39,992			46,532			51,812
Loans past due 90 days or more
and still accruing		1,338			-			-			1,795			-
Renegotiated loans		-			-			-			-			-
Total non-performing loans		38,929			39,161			39,992			48,327			51,812
Other real estate owned		13,109			14,077			15,237			10,647			10,647
Total non-performing assets	$	52,038		$	53,238		$	55,229		$	58,974		$	62,459
Non-performing loans to total loans		6.09	%		6.21	%		6.45	%		7.60	%		7.74	%
Non-performing assets to total assets		5.78	%		6.07	%		6.30	%		6.23	%		6.69	%
Non-performing loan coverage		38.81	%		36.90	%		28.62	%		22.53	%		19.83	%
Allowance for loan losses as a percentage
of total period-end loans		2.36	%		2.29	%		1.84	%		1.71	%		1.54	%
Non-performing assets/capital plus
allowance for loan losses		50.88	%		52.80	%		55.46	%		58.36	%		63.07	%