NEWS RELEASE
FOR RELEASE IMMEDIATELY
Contact: Paul Frenkiel, CFO
(215) 735-4422 ext. 255
REPUBLIC FIRST BANCORP, INC.
REPORTS 46% INCREASE IN SECOND QUARTER
EARNINGS and ANNOUNCES 10% STOCK DIVIDEND
-----------------------------------------
Philadelphia, PA, July 20, 2004 - Republic First Bancorp, Inc.
(NASDAQ:FRBK), (the "Company") the holding company for Republic First Bank (PA)
and First Bank of Delaware (DE), today reported second quarter 2004 earnings of
$1.7 million compared to $1.2 million for the prior year period, an increase of
46%. Year to date earnings increased to $3.2 million in 2004, compared to $2.4
million, an increase of 31%. Diluted earnings per share for second quarter 2004,
increased to $0.24, from $0.17 in the prior year, an increase of 41%. Year to
date diluted earnings per share increased to $0.46 compared to $0.37 in the
prior year, an increase of 24%. The improvement in 2004 earnings reflected
commercial loan and core deposit growth, increases in non-interest income and
lower loan loss provisions. Average commercial and construction loans grew 20%
in second quarter 2004 compared to the comparable prior year period. Average
core deposits in those periods grew by approximately 11%.
The Company also announced a 10% stock dividend to shareholders of
record as of August 5, 2004 payable as of August 24, 2004. Share and per share
information has not been restated for this dividend. Chairman Harry Madonna
stated, "This stock dividend reflects continuing improvements in earnings and
other measures of financial performance, and the sustained double-digit growth
in core businesses. We will continue to focus on our carefully selected niche
lines of business, each of which continues to meet or exceed our current year's
budget projections. We look forward to making continued progress, and further
increasing shareholder value."
Total shareholders' equity stood at $59.5 million with a book value per
share of $9.02 at June 30, 2004, based on outstanding common shares of
approximately 6.6 million. As of that date, the Company continued to be well
capitalized.
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 Six Months Ended
June 30, June 30,
2004 2003 2004 2003
-------------------------------------------- ----------------------------------------------
Net Interest Income $ 4,607 $ 8,293 $ 9,928 $ 17,393
Provision for Loan Losses 62 2,286 873 5,698
Other Income 2,830 497 5,577 1,392
Other Expenses 4,827 4,770 9,807 9,376
Income Taxes 865 583 $ 1,631 $ 1,267
------------------- ------------------ -------------------- --------------------
Net Income $ 1,683 $ 1,151 $ 3,194 $ 2,444
=================== ================== ==================== ====================
Basic EPS $ 0.26 $ 0.18 $ 0.49 $ 0.38
------------------- ------------------ -------------------- --------------------
Diluted EPS $ 0.24 $ 0.17 $ 0.46 $ 0.37
------------------- ------------------ -------------------- --------------------
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
Assets June 30 June 30
2004 2003
------------------- --------------------
Federal Funds Sold and Other Interest Bearing Cash $ 52,398 $ 73,014
Investment Securities 64,112 62,589
Commercial and Other Loans 527,052 466,196
Allowance for Loan Losses (8,327) (7,876)
Other Assets 52,824 64,963
------------------- --------------------
Total Assets $ 688,059 $ 658,886
=================== ====================
Liabilities and Shareholders' Equity:
Transaction Accounts $ 304,613 $ 276,553
Time Deposit Accounts 180,268 186,364
FHLB Advances and Trust Preferred Securities 131,186 131,000
Other Liabilities 12,522 11,008
Shareholders' Equity 59,470 53,961
------------------- --------------------
Total Liabilities and Shareholders' Equity $ 688,059 $ 658,886
=================== ====================
At or For the
Three Months Ended
---------------------------------------------------
June 30, June 30,
Financial Data: 2004 2003
--------------------- ----------------------
Return on average assets 0.98 % 0.69 %
Return on average equity 11.47 % 8.58 %
Share information:
Book value per share $9.02 $8.31
Shares o/s at period end 6,583,238 6,492,000
Average diluted shares o/s 6,874,585 6,771,000
At or For the
Six Months Ended
---------------------------------------------------
June 30 June 30
Financial Data: 2004 2003
--------------------- ----------------------
Return on average assets 0.92 % 0.74 %
Return on average equity 11.03 % 9.26 %
Republic First Bancorp, Inc.
Press release 6/30/04
(Dollars in thousands except per share data)
Credit Quality Ratios:
Jun. 30 Dec 31, Jun. 30
2004 2003 2003
------------------ ---------------------- -----------------
Non-accrual and loans accruing,
but past due 90 days or more $ 7,263 $ 8,611 $ 8,268
Restructured loans - - -
------------------ ---------------------- -----------------
Total non-performing loans 7,263 8,611 8,268
OREO 207 207 1,015
------------------ ---------------------- -----------------
Total non-performing assets $ 7,470 $ 8,818 $ 9,283
================== ====================== =================
Non-performing loans as
a percentage of total loans 1.38% 1.76% 1.77%
Non-performing assets as
a percentage of total assets 1.08% 1.35% 1.41%
Allowance for loan losses
to total loans 1.58% 1.78% 1.68%
Allowance for loan losses
to total non-performing loans 114.65% 101.00% 94.96%
(Dollars in thousands )
Quarter-to-Date
Average Balance Sheet
------------------------------------------
Three months ended Three months ended
June 30, 2004 June 30, 2003
------------------------------------ ----------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------ --------- --------- ---------- --------- ----------
Commercial and other loans $ 516,087 $ 7,861 6.09 % $ 463,733 $11,543 9.98 %
Investment securities 65,764 526 3.20 67,323 746 4.44
Federal funds sold 56,344 148 1.05 84,876 264 1.25
------------ --------- --------- ---------- --------- ----------
Total interest-earning assets 638,195 8,535 5.35 615,932 12,553 8.17
Other assets 48,352 46,782
Total assets $ 686,547 $ 8,535 $ 662,714 $12,553
============ ========= ========== =========
Interest-bearing liabilities:
Interest-bearing deposits $ 381,758 $ 1,893 2.00 % $ 393,198 $ 2,212 2.26 %
Borrowed funds 131,000 2,035 6.21 131,033 2,048 6.27
------------ --------- --------- ---------- --------- ----------
Other liabilities 512,758 3,928 3.06 524,231 4,260 3.26
------------ --------- --------- ---------- --------- ----------
Non-interest and
interest-bearing funding 608,984 3,928 2.60 596,167 4,260 2.87
Other liabilities: 18,869 12,876
------------ ----------
Total liabilities 627,853 609,043
------------ ----------
Shareholder's equity 58,694 53,671
Total liabilities &
shareholder's equity $ 686,547 $ 662,714
============ ==========
Net interest income $ 4,607 $ 8,293
========= =========
Interest rate spread 2.75 % 5.31 %
========= ==========
Net interest margin 2.89 % 5.40 %
========= ==========
Attachment #5
Republic First Bancorp, Inc.
Press release 6/30/04
(Dollars in thousands)
Year to Date
Average Balance Sheet
------------------------------------------
Three months ended Three months ended
June 30, 2004 June 30, 2003
------------------------------------ ----------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------ --------- --------- ---------- --------- ----------
Commercial and Other Loans $ 507,254 $ 16,343 6.44 % $ 474,606 $23,876 10.14 %
Investment securities 67,682 1,127 3.33 76,158 1,745 4.58
Federal funds sold 68,668 363 1.06 76,512 492 1.30
----------- ------------ -------- ------------ -------- --------
Total interest-earning assets 643,604 17,833 5.54 627,276 26,113 8.39
Non-interest-earning assets 48,462 40,469
Total Assets $ 692,066 $ 17,833 $ 667,745 $26,113
=========== ============ ============ ========
Interest-bearing liabilities:
Interest-bearing deposits $ 392,949 $ 3,828 1.95 % $ 395,898 $ 4,631 2.36 %
Borrowed funds 132,041 4,077 6.18 132,959 4,089 6.20
----------- ------------ -------- ------------ -------- --------
Total interest-bearing
liabilities 524,990 7,905 3.01 528,857 8,720 3.33
----------- ------------ -------- ------------ -------- --------
Cost of funds 622,181 7,905 2.54 603,412 8,720 2.91
Non-interest-
bearing liabilities: 12,156 11,105
----------- ------------
Total liabilities 634,337 614,517
----------- ------------
Shareholder's Equity 57,729 53,228
Total liabilities &
Shareholder's Equity $ 692,066 $ 667,745
=========== ============
Net interest income $ 9,928 $17,393
============ ========
Interest rate spread 3.00 % 5.47 %
======== ========
Net interest margin 3.09 % 5.58 %
======== ========