NEWS RELEASE
FOR RELEASE IMMEDIATELY
Contact: Paul Frenkiel, CFO
(215) 735-4422 ext. 255
REPUBLIC FIRST BANCORP, INC.
REPORTS THIRD QUARTER EARNINGS
Philadelphia, PA, October 22, 2003 - Republic First Bancorp, Inc.
(NASDAQ:FRBK), the holding company for Republic First Bank (PA) and First Bank
of Delaware (DE) today reported third quarter 2003 earnings of $1.2 million or
$0.18 per diluted share compared to $66,000 or $0.01 per diluted share for the
comparable prior year period. The 2002 quarter reflected a $0.14 per share after
tax charge related to the write down of an other real estate owned property.
Average core deposits in the third quarter 2003 grew by approximately 16%
compared to the comparable prior year quarter. The Company also recorded 9%
average commercial and construction loan growth between the third quarters of
2003 and 2002.
The Company remains well capitalized, as Tier 1 leverage capital and
total risk-based capital at September 30, 2003 stood at 9.27% and 14.90%,
respectively. Total shareholders' equity stood at $55.0 million with a book
value per share of $8.47 at September 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 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.
# # #
Republic First Bancorp, Inc.
Condensed Income Statement
(Dollar amounts in thousands
except per share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2003 2002 2003 2002
----------------------------------- ------------------------------
Net Interest Income $ 4,081 $ 6,008 $ 21,474 $18,150
Provision for Loan Losses 647 965 6,345 3,493
Other Income 2,826 724 4,218 2,728
Other Expenses 4,421 4,302 13,797 13,056
Reserve for Other Real Estate Owned - 1,357 - 1,357
---------------- ------------- ----------- ------------
Income Taxes 606 42 $ 1,873 $ 1,097
---------------- ------------- ----------- ------------
Net Income $ 1,233 $ 66 $ 3,677 $ 1,875
================ ============= =========== ============
Basic EPS $ 0.19 $ 0.01 $ 0.57 $ 0.30
---------------- ------------- ----------- ------------
Diluted EPS $ 0.18 $ 0.01 $ 0.55 $ 0.29
---------------- ------------- ----------- ------------
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
Assets Sept. 30 December 31 Sept. 30
2003 2002 2002
---------------- ------------- -----------
Federal Funds Sold and Other Interest Bearing Cash $ 71,122 $ 58,924 $ 57,832
Investment Securities 50,702 91,519 109,985
Commercial and Other Loans 471,776 463,689 470,041
Allowance for Loan Losses (8,731) (6,642) (7,533)
Other Assets 59,898 40,202 24,744
---------------- ------------- -----------
Total Assets $ 644,767 $ 647,692 $ 655,069
================ ============= ===========
Liabilities and Shareholders' Equity:
Transaction Accounts $ 266,845 $ 233,060 $ 244,919
Time Deposit Accounts 180,768 223,242 219,654
FHLB Advances and Trust Preferred Securities 131,000 131,000 131,000
Other Liabilities 11,188 9,114 8,477
Shareholders' Equity 54,966 51,276 51,019
---------------- ------------- -----------
Total Liabilities and Shareholders' Equity $ 644,767 $ 647,692 $ 655,069
================ ============= ===========
Republic First Bancorp, Inc.
September 30, 2003
At or For the
Three Months Ended
---------------------------------------------------
Sept. 30, Sept. 30,
Financial Data: 2003 2002
--------------------- ----------------------
Return on average assets 0.75 % 0.04 %
Return on average equity 8.94 % 0.53 %
Share information:
Book value per share $8.47 $8.21
Shares o/s at period end 6,492,000 6,199,000
Average diluted shares o/s 6,801,000 6,432,000
Leverage capital ratio 9.27 % 8.50 %
Total risk based capital ratio 14.90 % 14.44 %
At or For the
Nine Months Ended
---------------------------------------------------
Sept. 30, Sept. 30,
Financial Data: 2003 2002
--------------------- ----------------------
Return on average assets 0.75 % 0.38 %
Return on average equity 9.26 % 5.18 %
Shares o/s at period end 6,492,000 6,192,000
Average diluted shares o/s 6,682,000 6,448,000
Republic First Bancorp, Inc.
Press release 9/30/03
(Dollars in thousands except per share data)
Credit Quality Ratios:
At or for the
Nine months Twelve mos. Nine months
ended ended ended
Sept. 30 Dec 31, Sept. 30
2003 2002 2002
------------------ ---------------------- -----------------
Non-accrual and loans accruing,
but past due 90 days or more $ 6,563 $ 7,023 $ 9,179
Restructured loans - - -
------------------ ---------------------- -----------------
Total non-performing loans 6,563 7,023 9,179
OREO 1,015 1,015 500
------------------ ---------------------- -----------------
Total non-performing assets $ 7,578 $ 8,038 $ 9,679
================== ====================== =================
Non-performing loans as
a percentage of total loans 1.39% 1.51% 1.95%
Nonperforming assets as
a percentage of total assets 1.18% 1.24% 1.48%
Allowance for loan losses
to total loans 1.85% 1.42% 1.60%
Allowance for loan losses
to total non-performing loans 133.03% 94.57% 82.07%
Republic First Bancorp, Inc.
Press release 9/30/03
(Dollars in thousands)
Quarter-to-Date
Average Balance Sheet
------------------------------------------------------
Three months ended Three months ended
September 30, 2003 September 30, 2002
------------------------------------------ --------------------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------ ------------ ----------- ------------ ----------- ------------
Commercial and other loans $ 458,719 $ 7,339 6.35 % $ 469,726 $ 9,204 7.79 %
Investment securities 54,552 586 4.29 110,216 1,538 5.58
Federal funds sold 76,927 242 1.25 41,640 192 1.83
------------ ------------ ----------- ------------ ----------- ------------
Total interest-earning asset 590,198 8,167 5.50 621,582 10,934 7.00
Other assets 57,736 26,634
Total assets $ 647,934 $ 8,167 $ 648,216 $10,934
============ ============ ============ ===========
Interest-bearing liabilities
Interest-bearing deposits $ 374,876 $ 2,007 2.12 % $ 399,988 $ 2,850 2.83 %
Borrowed funds 134,074 2,079 6.15 131,000 2,076 6.29
------------ ------------ ----------- ------------ ----------- ------------
Other liabilities 508,950 4,086 3.19 530,988 4,926 3.68
------------ ------------ ----------- ------------ ----------- ------------
Non-interest and
interest-bearing funding 579,980 4,086 2.80 588,765 4,926 3.32
Other liabilities: 13,227 8,481
------------ ------------
Total liabilities 593,207 597,246
------------ ------------
Shareholder's equity 54,727 50,970
Total liabilities &
shareholder's equity $ 647,934 $ 648,216
============ ============
Net interest income $ 4,081 $ 6,008
============ ===========
Interest rate spread 2.70 % 3.68 %
=========== ============
Net interest margin 2.75 % 3.85 %
=========== ============
Republic First Bancorp, Inc.
Press release 9/30/03
(Dollars in thousands)
Year to Date
Average Balance Sheet
-------------------------------------------------------------
Nine months ended Nine months ended
September 30, 2003 September 30, 2002
---------------------------------------- --------------------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
----------- ----------- ----------- -------------- ----------- ----------
Commercial and Other Loans $ 468,853 $ 31,215 8.90 % $ 468,146 $28,124 8.03 %
Investment securities 68,877 2,331 4.51 113,909 4,910 5.75
Federal funds sold 76,684 735 1.28 42,439 584 1.84
----------- ----------- ----------- -------------- ----------- ----------
Total interest-earning assets 614,414 34,281 7.46 624,494 33,618 7.19
Non-interest-earning assets 44,210 29,098
Total Assets $ 658,624 $ 34,281 $ 653,592 $33,618
=========== =========== ============== ===========
Interest-bearing liabilities:
Interest-bearing deposits $ 390,114 $ 6,639 2.28 % $ 400,825 $ 9,075 3.03 %
Borrowed funds 133,316 6,168 6.19 137,023 6,393 6.24
----------- ----------- ----------- -------------- ----------- ----------
Total interest-bearing
liabilities 523,430 12,807 3.27 537,848 15,468 3.85
----------- ----------- ----------- -------------- ----------- ----------
Cost of funds 596,546 12,807 2.87 595,812 15,468 3.47
Non-interest-
bearing liabilities: 8,978 9,037
----------- --------------
Total liabilities 605,524 604,849
----------- --------------
Shareholder's Equity 53,100 48,743
Total liabilities &
Shareholder's Equity $ 658,624 $ 653,592
=========== ==============
Net interest income $ 21,474 $18,150
=========== ===========
Interest rate spread 4.59 % 3.72 %
=========== ==========
Net interest margin 4.67 % 3.88 %
=========== ==========