NEWS RELEASE
FOR RELEASE IMMEDIATELY
Contact: Paul Frenkiel, CFO
(215) 735-4422 ext. 255
REPUBLIC FIRST BANCORP, INC.
REPORTS 119% INCREASE IN FOURTH QUARTER EARNINGS
- ------------------------------------------------
Philadelphia, PA, January 25, 2005 - Republic First Bancorp, Inc.
(NASDAQ:FRBK), (the "Company") the holding company for Republic First Bank (PA)
and First Bank of Delaware (DE)** today reported fourth quarter 2004 earnings of
$2.7 million. Of that total, $1.6 million resulted from Republic First Bank, and
$1.1 million resulted from First Bank of Delaware. Total fourth quarter 2004
diluted earnings per share amounted to $0.35* compared to $0.16* for the prior
year fourth quarter, a 119% increase. Total year to date earnings increased to
$8.9 million in 2004, compared to $4.9 million for the prior year. Total year to
date diluted earnings per share increased to $1.18* compared to $ .66* in the
prior year, a 79% increase. Average commercial and construction loans and core
deposits grew in excess of 19% in fourth quarter 2004 compared to the comparable
prior year period.
President Harry Madonna stated, "A major factor in the improvement in
earnings over third quarter 2004, was the impact of the maturity of the majority
of the Federal Home Loan Bank debt carrying a rate of approximately 6%.
Additionally, net interest income benefited from increases in the prime rate,
since a relatively large proportion of our loans are tied to prime. The growth
in commercial loans and core deposits, which exceeded 19% over the prior year
quarter, continues to augur well for the future. We will continue to focus on
our carefully selected lines of business to meet or exceed our expectations. We
look forward to making continued earnings progress, and further increasing
shareholder value."
Total shareholders' equity stood at $65.2 million with a book value per
share of $9.01* at December 31, 2004, based on outstanding common shares of
approximately 7.2 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.
** First Bank of Delaware is in process of being spun-off as per related
press releases and other publicly available information.
# # #
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,
2004 2003 2004 2003
------------------------------------ --------------------------------------
Net Interest Income $ 7,156 $ 4,277 $ 22,599 $ 25,751
Provision for Loan Losses 886 419 1,149 6,764
Other Income 2,801 2,918 12,194 7,136
Other Expenses 5,146 4,928 20,299 18,725
Income Taxes 1,237 611 $ 4,405 $ 2,484
---------------- --------------- ----------------- ----------------
Net Income $ 2,688 $ 1,237 $ 8,940 $ 4,914
================ =============== ================= ================
Basic EPS $ 0.37 $ 0.17 $ 1.24 $ 0.69
================ =============== ================= ================
Diluted EPS $ 0.35 $ 0.16 $ 1.18 $ 0.66
================ =============== ================= ================
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
Assets December 31 December 31
2004 2003
---------------- ---------------
Federal Funds Sold and Other Interest Bearing Cash $ 29,616 $ 45,982
Investment Securities 50,368 69,946
Commercial and Other Loans 591,112 488,219
Allowance for Loan Losses (7,831) (8,696)
Other Assets 60,147 59,341
---------------- ---------------
Total Assets $ 723,412 $ 654,792
================ ===============
Liabilities and Shareholders' Equity:
Transaction Accounts $ 354,407 $ 266,015
Time Deposit Accounts 193,989 187,590
FHLB Advances and Trust Preferred Securities 92,276 133,852
Other Liabilities 17,516 10,959
Shareholders' Equity 65,224 56,376
---------------- ---------------
Total Liabilities and Shareholders' Equity $ 723,412 $ 654,792
================ ===============
Attachment #2
Republic First Bancorp, Inc.
December 31, 2004
At or For the
Three Months Ended
---------------------------------------------------
Dec. 31, Dec. 31,
Financial Data: 2004 2003
--------------------- ----------------------
Return on average assets 1.58 % 0.77 %
Return on average equity 16.92 % 8.78 %
Share information:
Book value per share $9.01 $7.85
Shares o/s at period end 7,234,000 7,174,000
Average diluted shares o/s 7,648,000 7,576,800
At or For the
Twelve Months Ended
---------------------------------------------------
Dec. 31, Dec. 31,
Financial Data: 2004 2003
--------------------- ----------------------
Return on average assets 1.30 % 0.75 %
Return on average equity 14.60 % 9.20 %
Shares o/s at period end 7,234,000 7,174,000
Average diluted shares o/s 7,572,000 7,401,000
Attachment #3
Republic First Bancorp, Inc.
Press release 12/31/04
(Dollars in thousands except per share data)
Credit Quality Ratios:
At or for the
Twelve months Twelve mos.
ended ended
Dec 31, Dec 31,
2004 2003
------------------ ----------------------
Non-accrual and loans accruing,
but past due 90 days or more $ 4,985 $ 8,611
Restructured loans - -
------------------ ----------------------
Total non-performing loans 4,985 8,611
OREO 137 207
------------------ ----------------------
Total non-performing assets $ 5,122 $ 8,818
================== ======================
Non-performing loans as
a percentage of total loans 0.84% 1.76%
Nonperforming assets as
a percentage of total assets 0.71% 1.35%
Allowance for loan losses
to total loans 1.32% 1.78%
Allowance for loan losses
to total non-performing loans 157.09% 101.00%
Attachment #4
Republic First Bancorp, Inc.
Press release 12/31/04
(Dollars in thousands )
Quarter-to-Date
Average Balance Sheet
------------------------------------------
Three months ended Three months ended
December 31, 2004 December 31, 2003
------------------------------------ -----------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------ --------- --------- ---------- --------- ----------
Commercial and other loans $ 561,817 $ 9,937 7.07 % $ 474,976 $ 7,436 6.22 %
Investment securities 51,172 425 3.32 52,821 527 3.99
Federal funds sold and
other interest earning cash 16,352 158 3.86 60,062 161 1.06
------------ --------- --------- ---------- --------- ----------
Total interest-earning assets 629,341 10,520 6.68 587,859 8,124 5.49
Other assets 50,700 49,446
Total assets $ 680,041 $10,520 $ 637,305 $ 8,124
============ ========= ========== =========
Interest-bearing liabilities:
Interest-bearing deposits $ 411,436 $ 2,146 2.08 % $ 350,615 $ 1,761 1.99 %
Borrowed funds 88,001 1,218 5.54 136,254 2,086 6.07
------------ --------- --------- ---------- --------- ----------
Total interest-bearing
liabilities 499,437 3,364 2.68 486,869 3,847 3.13
------------ --------- --------- ---------- --------- ----------
Non-interest and
interest-bearing funding 599,415 3,364 2.24 569,423 3,847 2.68
Other liabilities: 17,090 11,991
------------ ----------
Total liabilities 616,505 581,414
------------ ----------
Shareholder's equity 63,536 55,891
Total liabilities &
shareholder's equity $ 680,041 $ 637,305
============ ==========
Net interest income $ 7,156 $ 4,277
========= =========
Interest rate spread 4.44 % 2.81 %
========= ==========
Net interest margin 4.52 % 2.89 %
========= ==========
Attachment #5
Republic First Bancorp, Inc.
Press release 12/31/04
(Dollars in thousands)
Year to Date
Average Balance Sheet
-----------------------------------------
Twelve months ended Twelve months ended
December 31, 2004 December 31, 2003
----------------------------------- -------------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------ ----------- ------- ------------ ------- --------
Commercial and other Loans $ 527,723 $ 34,994 6.63 % $ 470,237 $38,651 8.22 %
Investment securities 61,273 2,054 3.35 64,590 2,858 4.42
Federal funds sold 49,431 682 1.37 72,761 895 1.23
------------ ----------- ------- ------------ ------- --------
Total interest-earning assets 638,427 37,730 5.90 607,588 42,404 6.98
Non-interest-earning assets 51,054 46,909
Total Assets $ 689,481 $ 37,730 $ 654,497 $42,404
============ =========== ============ =======
Interest-bearing liabilities:
Interest-bearing deposits $ 398,983 $ 7,930 1.98 % $ 379,693 $ 8,399 2.21 %
Borrowed funds 118,115 7,201 6.09 134,057 8,254 6.16
------------ ----------- ------- ------------ ------- --------
Total interest-bearing
liabilities 517,098 15,131 2.93 513,750 16,653 3.24
------------ ----------- ------- ------------ ------- --------
Cost of funds 613,662 15,131 2.46 589,220 16,653 2.83
Non-interest-
bearing liabilities: 14,771 11,889
------------ ------------
Total liabilities 628,433 601,109
------------ ------------
Shareholder's Equity 61,048 53,388
Total liabilities &
Shareholder's Equity $ 689,481 $ 654,497
============ ============
Net interest income $ 22,599 $25,751
=========== =======
Interest rate spread 3.44 % 4.15 %
======= ========
Net interest margin 3.53 % 4.24 %
======= ========