NEWS RELEASE
FOR RELEASE IMMEDIATELY
Contact: Paul Frenkiel, CFO
(215) 735-4422 ext. 255
REPUBLIC FIRST BANCORP, INC.
REPORTS 156% INCREASE IN THIRD QUARTER EARNINGS
- -----------------------------------------------
Philadelphia, PA, October 25, 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 third quarter 2004 earnings of
$3.1 million. Total third quarter 2004 diluted earnings per share amounted to
$0.41* compared to $0.16* for the prior year third quarter, a 156% increase from
the prior year third quarter. Total year to date earnings increased to $6.3
million in 2004, compared to $3.7 million for the prior year. Total year to date
diluted earnings per share increased to $0.83* compared to $ .50* in the prior
year. Average commercial and construction loans and core deposits grew in excess
of 20% in third quarter 2004 compared to the comparable prior year period.
Chairman Harry Madonna stated, "While the large one time loan loss
recovery during the period was a positive development, it should not overshadow
the continued improvement in core earnings. The growth in commercial loans and
core deposits, which exceeded 20%, also augurs well for the future. During the
quarter, $125 million of the Bank's Federal Home Loan Bank borrowings, with a
blended rate of over 6%, began to be paid off, and will continue to be paid off
through February of 2005. These pay offs will significantly decrease our cost of
funds in the current rate environment. We will continue to focus on our
carefully selected lines of business, each of which continues to meet or exceed
our expectations. We look forward to making continued progress, and further
increasing shareholder value."
Total shareholders' equity stood at $62.6 million with a book value per
share of $8.65* at September 30, 2004, based on outstanding common shares of
approximately 7.3 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 this release and 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.
* All current and prior year per share amounts and total shares outstanding
reflect the 10% stock dividend paid August 24, 2004.
# # #
Republic First Bancorp, Inc.
Condensed Income Statement
(Dollar amounts in thousands
except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
------------------------------------- ---------------------------------
Net Interest Income $ 5,514 $ 4,081 $ 15,443 $ 21,474
Provision for Loan Losses (611) 647 263 6,345
Other Income 3,817 2,826 9,393 4,218
Other Expenses 5,346 4,421 15,153 13,797
Income Taxes 1,513 606 $ 3,168 $ 1,873
------------------- ----------- ------------- ---------------
Net Income $ 3,083 $ 1,233 $ 6,252 $ 3,677
=========================================================================
Basic EPS $ 0.43 $ 0.17 $ 0.88 $ 0.52
------------------- ----------- ------------- ---------------
Diluted EPS $ 0.41 $ 0.16 $ 0.83 $ 0.50
------------------- ----------- ------------- ---------------
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
Assets September 30 September 30
2004 2003
------------------- --------------------
Federal Funds Sold and Other Interest Bearing Cash $ 59,319 $ 71,122
Investment Securities 54,080 50,702
Commercial and Other Loans 553,263 471,775
Allowance for Loan Losses (8,338) (8,731)
Other Assets 54,564 59,899
------------------- --------------------
Total Assets $ 712,888 $ 644,767
=================== ====================
Liabilities and Shareholders' Equity:
Transaction Accounts $ 345,145 $ 266,845
Time Deposit Accounts 185,848 180,768
FHLB Advances and Trust Preferred Securities 106,186 131,000
Other Liabilities 13,063 11,188
Shareholders' Equity 62,646 54,966
------------------- --------------------
Total Liabilities and Shareholders' Equity $ 712,888 $ 644,767
=================== ====================
Attachment #2
Republic First Bancorp, Inc.
September 30, 2004
At or For the
Three Months Ended
---------------------------------------------------
September 30 September 30
Financial Data: 2004 2003
--------------------- ----------------------
Return on average assets 1.79 % 0.75 %
Return on average equity 20.52 % 8.94 %
Share information:
Book value per share $8.65 $7.62
Shares o/s at period end 7,242,991 7,141,000
Average diluted shares o/s 7,607,000 7,481,000
At or For the
Nine Months Ended
---------------------------------------------------
September 30 September 30
Financial Data: 2004 2003
--------------------- ----------------------
Return on average assets 1.20 % 0.75 %
Return on average equity 13.83 % 9.26 %
Attachment #3
Republic First Bancorp, Inc.
Press release 9/30/04
(Dollars in thousands except per share data)
Credit Quality Ratios:
Sept. 30 Dec 31, Sept. 30
2004 2003 2003
------------------ ---------------------- -----------------
Non-accrual and loans accruing,
but past due 90 days or more $ 7,640 $ 8,611 $ 6,983
Restructured loans - - -
------------------ ---------------------- -----------------
Total non-performing loans 7,640 8,611 6,983
OREO 207 207 1,015
------------------ ---------------------- -----------------
Total non-performing assets $ 7,847 $ 8,818 $ 7,998
================== ====================== =================
Non-performing loans as
a percentage of total loans 1.38% 1.76% 1.48%
Non-performing assets as
a percentage of total assets 1.10% 1.35% 1.24%
Allowance for loan losses
to total loans 1.51% 1.78% 1.85%
Allowance for loan losses
to total non-performing loans 109.14% 101.00% 119%
Attachment #4
Republic First Bancorp, Inc.
Press release 9/30/04
(Dollars in thousands )
Quarter-to-Date
Average Balance Sheet
------------------------------------------
Three months ended Three months ended
September 30, 2004 September 30, 2003
------------------------------------ ----------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------ --------- --------- ---------- --------- ----------
Commercial and other loans $ 535,942 $ 8,714 6.45 % $ 458,719 $ 7,339 6.35 %
Investment securities 58,723 502 3.42 54,552 586 4.29
Federal funds sold 43,913 161 1.45 76,927 243 1.25
------------ --------- --------- ---------- --------- ----------
Total interest-earning assets 638,578 9,377 5.82 590,198 8,168 5.50
Other assets 60,688 57,736
Total assets $ 699,266 $ 9,377 $ 647,934 $ 8,168
============ ========= ========== =========
Interest-bearing liabilities:
Interest-bearing deposits $ 408,421 $ 1,957 1.90 % $ 374,876 $ 2,007 2.12 %
Borrowed funds 120,648 1,906 6.27 134,074 2,079 6.15
------------ --------- --------- ---------- --------- ----------
Other liabilities 529,069 3,863 3.06 508,950 4,086 3.19
------------ --------- --------- ---------- --------- ----------
Non-interest and
interest-bearing funding 623,687 3,863 2.46 579,980 4,086 2.80
Other liabilities: 14,590 13,227
------------ ----------
Total liabilities 638,277 593,207
------------ ----------
Shareholder's equity 60,989 54,727
Total liabilities &
shareholder's equity $ 699,266 $ 647,934
============ ==========
Net interest income $ 5,514 $ 4,082
========= =========
Interest rate spread 3.36 % 2.70 %
========= ==========
Net interest margin 3.42 % 2.75 %
========= ==========
Attachment #5
Republic First Bancorp, Inc.
Press release 9/30/04
(Dollars in thousands)
Year to Date
Average Balance Sheet
------------------------------------------
Nine months ended Nine months ended
September 30, 2004 September 30, 2003
----------------------------------- -------------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
----------- ------------ -------- ------------ -----------------------
Commercial and Other Loans $ 516,373 $ 25,057 6.47 % $ 468,853 $31,215 8.90 %
Investment securities 64,664 1,629 3.36 68,877 2,331 4.51
Federal funds sold 60,352 524 1.16 76,684 735 1.28
----------- ------------ -------- ------------ -------- --------
Total interest-earning assets 641,389 27,210 5.65 614,414 34,281 7.46
Non-interest-earning assets 52,143 44,210
Total Assets $ 693,532 $ 27,210 $ 658,624 $34,281
=========== ============ ============ ========
Interest-bearing liabilities:
Interest-bearing deposits $ 395,180 $ 5,785 1.96 % $ 390,114 $ 6,639 2.28 %
Borrowed funds 128,091 5,982 6.24 133,316 6,168 6.19
----------- ------------ -------- ------------ -------- --------
Total interest-bearing
liabilities 523,271 11,767 3.01 523,430 12,807 3.27
----------- ------------ -------- ------------ -------- --------
Cost of funds 618,930 11,767 2.54 596,546 12,807 2.87
Non-interest-
bearing liabilities: 14,335 8,978
----------- ------------
Total liabilities 633,265 605,524
----------- ------------
Shareholder's Equity 60,267 53,100
Total liabilities &
shareholder's equity $ 693,532 $ 658,624
=========== ============
Net interest income $ 15,443 $21,474
============ ========
Interest rate spread 3.11 % 4.59 %
======== ========
Net interest margin 3.21 % 4.67 %
======== ========