NEWS RELEASE
FOR RELEASE IMMEDIATELY
Contact: Paul Frenkiel, CFO
(215) 735-4422 ext. 255
REPUBLIC FIRST BANCORP, INC.
REPORTS 2003 EARNINGS
---------------------
Philadelphia, PA, January 22, 2004 - Republic First Bancorp, Inc.
(NASDAQ:FRBK), the holding company for Republic First Bank, (PA) and First Bank
of Delaware (DE) today reported 2003 earnings of $4.9 million or $0.73 earnings
per diluted share compared to $2.2 million or $0.34 per diluted share for the
prior year. Fourth quarter 2003 earnings were $0.18 per diluted share versus
$0.05 for the prior year comparable period. Fourth quarter earnings for 2002
reflected additional provisions for loan losses of $0.10 per share, relating to
a change in the banks' methodology for calculating the reserve for loan losses.
The improvement in 2003 earnings reflected increases in both interest and
non-interest income and lower commercial loan loss provisions. Core deposits
grew by $33 million or 14%, to $266 million at December 31, 2003 versus December
31, 2002. The Company also grew commercial and construction loans $65 million,
or 16% to $457 million at December 31, 2003 versus December 31, 2002.
The Company remains well capitalized, as Tier 1 leverage capital and
total risk-based capital at December 31, 2003 stood at 9.64% and 13.75%,
respectively. Total shareholders' equity stood at $56.4 million with a book
value per share of $8.64 at December 31, 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, 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.
# # #
Republic First Bancorp, Inc.
Condensed Income Statement
(Dollar amounts in thousands
except per share data)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
2003 2002 2003 2002
------------------------------- -------------------------------
Net Interest Income $ 4,277 $ 5,811 $25,751 $23,961
Provision for Loan Losses 419 1,810 6,764 5,303
Other Income 2,918 554 7,136 3,282
Other Expenses 4,928 4,072 18,725 17,229
Reserve for Other Real Estate Owned -- -- -- 1,357
------- ------- ------- -------
Income Taxes 611 158 $ 2,484 $ 1,154
------- ------- ------- -------
Net Income $ 1,237 $ 325 $ 4,914 $ 2,200
======= ======= ======= =======
Basic EPS $ 0.19 $ 0.05 $ 0.76 $ 0.35
------- ------- ------- -------
Diluted EPS $ 0.18 $ 0.05 $ 0.73 $ 0.34
------- ------- ------- -------
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
Assets December 31 December 31
2003 2002
--------- ---------
Federal Funds Sold and Other Interest Bearing Cash $ 45,983 $ 558,924
Investment Securities 69,946 96,561
Commercial and Other Loans 488,219 463,689
Allowance for Loan Losses (8,696) (6,642)
Other Assets 59,340 35,160
--------- ---------
Total Assets $ 654,792 $ 647,692
========= =========
Liabilities and Shareholders' Equity:
Transaction Accounts $ 266,014 $ 233,060
Time Deposit Accounts 187,590 223,242
FHLB Advances and Trust Preferred Securities 133,852 131,000
Other Liabilities 10,960 9,114
Shareholders' Equity 56,376 51,276
--------- ---------
Total Liabilities and Shareholders' Equity $ 654,792 $ 647,692
========= =========
Attachment #2
Republic First Bancorp, Inc.
December 31, 2003
At or For the
Three Months Ended
----------------------------------------------------------------------
Dec. 31, Dec. 31,
Financial Data: 2003 2002
----------------------------- -------------------------------
Return on average assets 0.77 % 0.20 %
Return on average equity 8.78 % 2.59 %
Share information:
Book value per share $8.64 $8.23
Shares o/s at period end 6,522,000 6,223,000
Average diluted shares o/s 6,888,000 6,526,000
Leverage capital ratio 9.64 % 8.56 %
Total risk based capital ratio 13.75 % 14.49 %
At or For the
Twelve Months Ended
----------------------------------------------------------------------
Dec. 31, Dec. 31,
Financial Data: 2003 2002
----------------------------- -------------------------------
Return on average assets 0.75 % 0.34 %
Return on average equity 9.20 % 4.52 %
Shares o/s at period end 6,522,000 6,223,000
Average diluted shares o/s 6,737,000 6,460,000
Attachment #3
Republic First Bancorp, Inc.
Press release 12/31/03
(Dollars in thousands except per share data)
Credit Quality Ratios:
At or for the
Twelve months Twelve mos.
ended ended
Dec 31, Dec 31,
2003 2002
-------------------------- ----------------------
Non-accrual and loans accruing,
but past due 90 days or more $ 8,611 $ 7,023
Restructured loans - -
-------------------------- ----------------------
Total non-performing loans 8,611 7,023
OREO 207 1,015
-------------------------- ----------------------
Total non-performing assets $ 8,818 $ 8,038
========================== ======================
Non-performing loans as
a percentage of total loans 1.76% 1.51%
Nonperforming assets as
a percentage of total assets 1.35% 1.24%
Allowance for loan losses
to total loans 1.78% 1.43%
Allowance for loan losses
to total non-performing loans 101.00% 94.57%
Attachment #4
Republic First Bancorp, Inc.
Press release 12/31/03
(Dollars in thousands )
Quarter-to-Date
Average Balance Sheet
--------------------------------------------------
Three months ended Three months ended
December 31, 2003 December 31, 2002
------------------------------------------ -----------------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
-------------- ----------- ---------- ------------ ---------- ------------
Commercial and other loans $ 474,976 $ 7,436 6.22 % $ 469,188 $ 8,956 7.59 %
Investment securities 52,821 527 3.99 104,297 1,375 5.27
Federal funds sold 60,062 161 1.06 46,692 174 1.48
-------------- ----------- ---------- ------------ ---------- ------------
Total interest-earning assets 587,859 8,124 5.49 620,177 10,505 6.74
Other assets 49,446 28,158
Total assets $ 637,305 $ 8,124 $ 648,335 $10,505
============== =========== ============ ==========
Interest-bearing liabilities:
Interest-bearing deposits $ 350,615 $ 1,761 1.99 % $ 398,730 $ 2,618 2.60 %
Borrowed funds 136,254 2,086 6.07 131,000 2,076 6.29
-------------- ----------- ---------- ------------ ---------- ------------
Total interest-bearing
liabilities 486,869 3,847 3.13 529,730 4,694 3.52
-------------- ----------- ---------- ------------ ---------- ------------
Non-interest and
interest-bearing funding 569,423 3,847 2.68 588,853 4,694 3.16
Other liabilities: 11,991 8,122
-------------- ------------
Total liabilities 581,414 596,975
-------------- ------------
Shareholder's equity 55,891 51,360
Total liabilities &
shareholder's equity $ 637,305 $ 648,335
============== ============
Net interest income $ 4,277 $ 5,811
=========== ==========
Interest rate spread 2.81 % 3.58 %
========== ============
Net interest margin 2.89 % 3.74 %
==========
Attachment #5
Republic First Bancorp, Inc.
Press release 12/31/03
(Dollars in thousands)
Year to Date
Average Balance Sheet
------------------------------------------------
Twelve months ended Twelve months ended
December 31, 2003 December 31, 2002
---------------------------------------- -------------------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------- ------------- -------- ------------- ------------- --------
Commercial and other Loans $ 470,237 $ 38,651 8.22 % $ 468,239 $37,080 7.92 %
Investment securities 64,590 2,858 4.42 111,486 6,284 5.64
Federal funds sold 72,761 895 1.23 42,835 759 1.77
------------- ------------- -------- -------------- -------- ---------
Total interest-earning assets 607,588 42,404 6.98 622,560 44,123 7.09
Non-interest-earning assets 46,909 29,180
Total Assets $ 654,497 $ 42,404 $ 651,740 $44,123
============= ============= ============== ========
Interest-bearing liabilities:
Interest-bearing deposits $ 379,693 $ 8,399 2.21 % $ 399,570 $11,694 2.93 %
Borrowed funds 134,057 8,254 6.16 135,505 8,468 6.25
------------- ------------- -------- -------------- -------- ---------
Total interest-bearing
liabilities 513,750 16,653 3.24 535,075 20,162 3.77
------------- ------------- -------- -------------- -------- ---------
Cost of funds 589,220 16,653 2.83 593,413 20,162 3.40
Non-interest-
bearing liabilities: 11,889 8,959
------------- --------------
Total liabilities 601,109 602,372
------------- --------------
Shareholder's Equity 53,388 49,368
Total liabilities &
Shareholder's Equity $ 654,497 $ 651,740
============= ==============
Net interest income $ 25,751 $23,961
============= ========
Interest rate spread 4.15 % 3.69 %
======== =========
Net interest margin 4.24 % 3.85 %
======== =========