NEWS RELEASE
FOR RELEASE IMMEDIATELY
Contact: Paul Frenkiel, CFO
(215) 735-4422 ext. 255
REPUBLIC FIRST BANCORP, INC.
REPORTS SECOND QUARTER EARNINGS
Philadelphia, PA, July 21, 2003 - Republic First Bancorp, Inc.
(NASDAQ:FRBK), the holding company for Republic First Bank, (PA) and First Bank
of Delaware (DE) today reported second quarter 2003 earnings of $1.2 million or
$0.17 earnings per diluted share compared to $921,000 or $0.14 per diluted share
for the comparable prior year period. The 2003 quarter reflected a $.02 per
share after tax charge for costs related to the consolidation of staff positions
in several departments. Average core deposits in second quarter 2003 also grew
by approximately 19% compared to the comparable prior year quarter.
Notwithstanding the historically low interest rate environment, which caused
record levels of commercial loan pay offs, the Company has maintained its
pricing and underwriting disciplines and recorded 6% average commercial loan
growth between the second quarters of 2003 and 2002.
The Company remains well capitalized, as Tier 1 leverage capital and
total risk-based capital at June 30, 2003 stood at 8.88% and 14.35%,
respectively. Total shareholders' equity stood at $54.0 million with a book
value per share of $8.31 at June 30, 2003, based on outstanding common shares of
approximately 6.5 million.
Republic First Bank (PA) and First Bank of Delaware (DE) are
full-service, state-chartered commercial banks that are members of the Federal
Reserve System and whose deposits are insured by the Federal Deposit Insurance
Corporation (FDIC). The Banks provide diversified financial products through
their twelve offices located in Abington, Ardmore, Bala Cynwyd, East Norriton
and Philadelphia, Pennsylvania and Wilmington, Delaware.
The Company may from time to time make written or oral "forward-looking
statements", including statements contained 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.
# # #
Attachment #1
Republic First Bancorp, Inc.
Condensed Income Statement
(Dollar amounts in thousands
except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
------------------------------ --------------------------------
Net Interest Income $ 8,293 $ 6,142 $ 17,393 $ 12,142
Provision for Loan Losses 2,286 1,248 5,698 2,529
Other Income 497 1,069 1,392 2,004
Other Expenses 4,770 4,558 9,376 8,862
Income Taxes 583 484 $ 1,267 $ 946
------------ -------------- -------------- -------------
Net Income $ 1,151 $ 921 $ 2,444 $ 1,809
============ ============== ============== =============
Basic EPS $ 0.18 $ 0.15 $ 0.38 $ 0.29
------------ -------------- -------------- -------------
Diluted EPS $ 0.17 $ 0.14 $ 0.37 $ 0.28
------------ -------------- -------------- -------------
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
Assets June 30 December 31 June 30
2003 2002 2002
-------- --------- ---------
Federal Funds Sold and Other Interest Bearing Cash $ 73,014 $ 58,924 $ 35,577
Investment Securities 62,589 91,519 114,303
Commercial and Other Loans 466,196 463,689 476,251
Allowance for Loan Losses (7,876) (6,642) (6,807)
Other Assets 64,963 40,202 37,084
--------- --------- ---------
Total Assets $ 658,886 $ 647,692 $ 656,408
========= ========= =========
Liabilities and Shareholders' Equity:
Transaction Accounts $ 276,553 $ 233,060 $ 223,123
Time Deposit Accounts 186,364 223,242 242,800
FHLB Advances and Trust Preferred Securities 131,000 131,000 131,000
Other Liabilities 11,008 9,114 9,426
Shareholders' Equity 53,961 51,276 50,059
--------- --------- ---------
Total Liabilities and Shareholders' Equity $ 658,886 $ 647,692 $ 656,408
========= ========= =========
Attachment #2
Republic First Bancorp, Inc.
June 30, 2003
At or For the
Three Months Ended
---------------------------------------------------
June 30, June 30,
Financial Data: 2003 2002
--------------------- ----------------------
Return on average assets 0.69 % 0.56 %
Return on average equity 8.58 % 7.65 %
Share information:
Book value per share $8.31 $8.05
Shares o/s at period end 6,492,000 6,199,000
Average diluted shares o/s 6,771,000 6,487,000
Leverage capital ratio 8.88 % 8.38 %
Total risk based capital ratio 14.35 % 14.25 %
At or For the
Six Months Ended
---------------------------------------------------
June 30 June 30
Financial Data: 2003 2002
--------------------- ----------------------
Return on average assets 0.74 % 0.55 %
Return on average equity 9.26 % 7.64 %
Shares o/s at period end 6,492,000 6,192,000
Average diluted shares o/s 6,623,000 6,456,000
Attachment #3
Republic First Bancorp, Inc.
Press release 6/30/03
(Dollars in thousands except per share data)
Credit Quality Ratios:
At or for the
Six months Twelve mos. Six months
ended ended ended
Jun. 30 Dec 31, Jun. 30
2003 2002 2002
------------------ ---------------------- -----------------
Non-accrual and loans accruing,
but past due 90 days or more $ 8,268 $ 7,023 $ 9,735
Restructured loans - - -
------------------ ---------------------- -----------------
Total non-performing loans 8,268 7,023 9,735
OREO 1,015 1,015 1,858
------------------ ---------------------- -----------------
Total non-performing assets $ 9,283 $ 8,038 $ 11,593
================== ====================== =================
Non-performing loans as
a percentage of total loans 1.77% 1.51% 2.04%
Nonperforming assets as
a percentage of total assets 1.41% 1.24% 1.77%
Allowance for loan losses
to total loans 1.68% 1.42% 1.43%
Allowance for loan losses
to total non-performing loans 94.96% 94.57% 69.93%
Attachment #4
Republic First Bancorp, Inc.
Press release 6/30/03
(Dollars in thousands )
Quarter-to-Date
Average Balance Sheet
-------------------------------------------------------
Three months ended Three months ended
June 30, 2003 June 30, 2002
------------------------------- -----------------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------ ----------- ----------- ------------- ------------ ----------
Commercial and other loans $463,733 $ 11,543 9.98 % $467,343 $ 9,387 8.05 %
Investment securities 67,323 746 4.44 111,265 1,625 5.84
Federal funds sold 84,876 264 1.25 50,909 224 1.76
-------- -------- ----------- -------- -------- ----------
Total interest-earning assets 615,932 12,553 8.17 629,517 11,236 7.15
Other assets 46,782 25,516
Total assets $662,714 $ 12,553 $655,033 $ 11,236
=========== ======== ========== ==========
Interest-bearing liabilities:
Interest-bearing deposits $393,198 $ 2,212 2.26 % $410,017 $ 2,997 2.93 %
Borrowed funds 131,033 2,048 6.27 134,212 2,097 6.27
-------- -------- ----------- -------- -------- ----------
Other liabilities 524,231 4,260 3.26 544,229 5,094 3.75
-------- -------- ----------- -------- -------- ----------
Non-interest and
interest-bearing funding 596,167 4,260 2.87 599,482 5,094 3.41
Other liabilities: 12,876 7,351
-------- ----------
Total liabilities 609,043 606,833
-------- ----------
Shareholder's equity 53,671 48,200
Total liabilities &
shareholder's equity $662,714 $655,033
======== ==========
Net interest income $ 8,293 $ 6,142
======== ==========
Interest rate spread 5.31 % 3.75 %
======== ==========
Net interest margin 5.40 % 3.91 %
======== ==========
Attachment #5
Republic First Bancorp, Inc.
Press release 6/30/03
(Dollars in thousands)
Year to Date
Average Balance Sheet
--------------------------------------------------------------
Six months ended Six months ended
June 30, 2003 June 30, 2002
-----------------------------------------------------------------------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
-------------- ----------- ----------- ---------- ------------ ------------
Commercial and Other Loans $474,606 $ 23,876 10.14 % $467,253 $ 18,920 8.16 %
Investment securities 76,158 1,745 4.58 115,785 3,371 5.82
Federal funds sold 76,512 492 1.30 45,162 393 1.75
-------- -------- ----------- -------- -------- -----------
Total interest-earning assets 627,276 26,113 8.39 628,200 22,684 7.27
Non-interest-earning assets 40,469 31,128
Total Assets $667,745 $ 26,113 $659,328 $ 22,684
=========== ======== ======== ==========
Interest-bearing liabilities:
Interest-bearing deposits $395,898 $ 4,631 2.36 % $403,468 $ 6,225 3.11 %
Borrowed funds 132,959 4,089 6.20 140,235 4,317 6.21
-------- -------- ----------- -------- -------- ------------
Total interest-bearing
liabilities 528,857 8,720 3.33 543,703 10,542 3.91
-------- -------- ----------- -------- -------- ------------
Cost of funds 603,412 8,720 2.91 601,875 10,542 3.53
Non-interest-
bearing liabilities: 11,105 9,796
-------- ----------
Total liabilities 614,517 611,671
-------- ----------
Shareholder's Equity 53,228 47,657
Total liabilities &
Shareholder's Equity $667,745 $659,328
======== ==========
Net interest income $ 17,393 $ 12,142
======== ==========
Interest rate spread 5.47 % 3.74 %
======== ==========
Net interest margin 5.58 % 3.88 %
======== ==========