NEWS RELEASE
FOR RELEASE IMMEDIATELY
Contact: Paul Frenkiel, CFO
(215) 735-4422 ext. 5255
REPUBLIC FIRST BANCORP, INC.
REPORTS 140% INCREASE IN SECOND QUARTER EARNINGS
------------------------------------------------
Philadelphia, PA, July 20, 2005 - Republic First Bancorp, Inc.
(NASDAQ:FRBK), the holding company for Republic First Bank (PA), today reported
second quarter 2005 earnings from continuing operations of $2,035,000 or $0.23*
per diluted share. That compares with $847,000 or $0.10* for the comparable
prior year period. Earnings from continuing operations for the six month period
ending June 30, 2005 were $4,156,000 or $0.48 per share, compared to $1,430,000
or $.17 per share for the comparable prior year period. The improvement in 2005
earnings reflected commercial loan and deposit growth and the payoff of the high
cost Federal Home Loan Bank borrowings. Average commercial loans grew in excess
of 20% in second quarter 2005 compared to the comparable prior year period.
Total shareholders' equity stood at $58.6 million with a book value per
share of $6.96* at June 30, 2005. The Company remains well capitalized.
Chairman Madonna stated: "Management and the Board are very pleased
with the improvement in earnings and we believe the Bank is well situated to
continue to increase profitability."
Republic First Bank (PA) is a full-service, state-chartered commercial
bank, whose deposits are insured by the Federal Deposit Insurance Corporation
(FDIC). The Bank provides diversified financial products through its eleven
offices located in Abington, Ardmore, Bala Cynwyd, East Norriton, Media, and
Philadelphia, Pennsylvania.
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.
# # #
* Per share and book value amounts were restated to reflect the 12% stock
dividend paid June 7, 2005, and the 10% stock dividend paid August 24,
2004.
Republic First Bancorp, Inc.
Condensed Income Statement
(Dollar amounts in thousands
except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 (1) 2005 (1) 2004 (1)
------------------------------- -----------------------
Net Interest Income $ 6,931 $ 3,804 $14,129 $ 8,350
Provision for Loan Losses 119 (200) 822 500
Other Income (3) 759 842 1,902 1,435
Other Expenses 4,539 3,598 9,011 7,196
Income Taxes 997 401 2,042 659
------- ------- ------- -------
Net Income From Continuing Operations 2,035 847 4,156 1,430
------- ------- ------- -------
Net Income From Discontinued Operations, Net of Tax -- 836 -- 1,764
Net Income $ 2,035 $ 1,683 $ 4,156 $ 3,194
Diluted EPS From Continuing Operations $ 0.23 $ 0.10 $ 0.48 $ 0.17
Diluted EPS From Discontinued Operations, Net of Tax -- 0.10 -- 0.21
------- ------- ------- -------
Diluted EPS $ 0.23 $ 0.20 $ 0.48 $ 0.38
Republic First Bancorp, Inc.
Condensed Balance Sheet
(Dollar amounts in thousands)
Assets June 30, June 30,
2005 2004 (2)
--------- ---------
Federal Funds Sold and Other Interest Bearing Cash $ 81,978 $ 41,769
Investment Securities 47,843 62,591
Commercial and Other Loans 600,813 494,033
Allowance for Loan Losses (6,996) (7,047)
Other Assets 57,887 45,968
--------- ---------
Total Assets $ 781,525 $ 637,314
========= =========
Liabilities and Shareholders' Equity:
Transaction Accounts $ 424,340 $ 273,660
Time Deposit Accounts 151,036 175,470
FHLB Advances and Trust Preferred Securities 140,842 131,186
Other Liabilities 6,671 7,331
Shareholders' Equity 58,636 49,667
--------- ---------
Total Liabilities and Shareholders' Equity $ 781,525 $ 637,314
========= =========
(1) EPS has been restated for the 10% stock dividend paid August 24, 2004 and
12% stock dividend paid June 7, 2005.
(2) Prior year has been adjusted to exclude the First Bank of Delaware balance
sheet, reflecting the spin off of that bank effective January 1, 2005.
(3) Other income for the three and six months ended June 30, 2005 includes
$97,000 of gains on securities sold.
Republic First Bancorp, Inc.
June 30, 2005
(unaudited)
At or For the At or For the
Three Months Ended Six Months Ended
-------------------------------------- -------------------------------
June 30, June 30, June 30, June 30,
Financial Data: 2005 2004 (1) 2005 2004 (1)
----------------- ----------------- ------------- -------------
Return on average assets on continuing operations 1.18 % 0.54 % 1.18 % 0.44
Return on average equity on continuing operations 14.26 % 6.89 % 14.96 % 5.91
Share information:
Book value per share $6.96 $6.12 $6.96 $6.12
Shares o/s at period end, net of Treasury shares 8,424,000 8,112,000 8,424,000 8,112,000
Average diluted shares o/s 8,727,000 8,415,600 8,685,000 8,420,000
(1) Prior year amounts have been adjusted for the spin off of First Bank of
Delaware effective Janaury 1, 2005.
Republic First Bancorp, Inc.
Press release 06/30/2005
(Dollars in thousands except per share data)
(unaudited)
Credit Quality Ratios:
June 30, June 30,
2005 2004 (1)
---------------- ---------------
Non-accrual and loans accruing,
but past due 90 days or more $ 2,956 $ 5,176
Restructured loans - -
---------------- ---------------
Total non-performing loans 2,956 5,176
OREO 137 207
---------------- ---------------
Total non-performing assets $ 3,093 $ 5,383
================ ===============
Non-performing loans as
a percentage of total loans 0.49% 1.05%
Nonperforming assets as
a percentage of total assets 0.40% 0.84%
Allowance for loan losses
to total loans 1.16% 1.43%
Allowance for loan losses
to total non-performing loans 236.67% 136.15%
(1) Prior year has been adjusted to exclude the First Bank of Delaware loans,
reflecting the spin off of that bank effective January 1, 2005.
Republic First Bancorp, Inc.
Press release 06/30/2005
(Dollars in thousands )
(unaudited)
Quarter-to-Date
Average Balance Sheet
-------------------------------------------
Three months ended Three months ended
June 30, 2005 June 30, 2004 (1)
------------------------------------- -----------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------- ---------- --------- ---------- --------- ----------
Commercial and other loans $ 577,421 $ 9,859 6.85 % $ 481,565 $ 7,018 5.85 %
Investment securities 45,046 441 3.92 64,147 501 3.12
Federal funds sold 27,900 195 2.80 53,916 146 1.09
------------- ---------- --------- ---------- --------- ----------
Total interest-earning assets 650,367 10,495 6.47 599,628 7,665 5.13
Other assets 39,793 34,927
------------- ----------
Total assets $ 690,160 $10,495 $ 634,555 $ 7,665
============= ==========
Interest-bearing liabilities:
Interest-bearing deposits $ 480,704 $ 3,020 2.52 % $ 358,956 $ 1,816 2.03 %
Borrowed funds 59,214 544 3.68 135,179 2,045 6.07
------------- ---------- --------- ---------- --------- ----------
Interest-bearing liabilities 539,918 3,564 2.65 494,135 3,861 3.13
------------- ---------- --------- ---------- --------- ----------
Non-interest and
interest-bearing funding 625,520 3,564 2.29 580,041 3,861 2.67
Other liabilities: 7,402 5,217
------------- ----------
Total liabilities 632,922 585,258
------------- ----------
Shareholders' equity 57,238 49,297
------------- ----------
Total liabilities &
shareholder's equity $ 690,160 $ 634,555
============= ==========
Net interest income $ 6,931 $ 3,804
========== =========
Net interest margin 4.27 % 2.54 %
========= ==========
(1) Prior year has been adjusted to exclude the First Bank of Delaware,
reflecting the spin off of that bank effective January 1, 2005
Republic First Bancorp, Inc.
Press release 06/30/2005
(Dollars in thousands )
(unaudited)
Year-to-Date
Average Balance Sheet
-------------------------------------------
Six months ended Six months ended
June 30, 2005 June 30, 2004 (1)
------------------------------------- -----------------------------------
Average Average
Interest-Earning Assets: Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------- ---------- --------- ---------- --------- ----------
Commercial and other loans $ 572,106 $19,771 6.93 % $ 474,913 $14,711 6.21 %
Investment securities 46,902 885 3.77 65,987 1,076 3.26
Federal funds sold 52,526 671 2.56 67,594 361 1.07
------------- ---------- --------- ---------- --------- ----------
Total interest-earning assets 671,534 21,327 6.37 608,494 16,148 5.32
Other assets 42,171 36,497
------------- ----------
Total assets $ 713,705 $21,327 $ 644,991 $16,148
============= ========== ========== =========
Interest-bearing liabilities:
Interest-bearing deposits $ 496,426 $ 6,016 2.43 % $ 365,329 $ 3,662 2.01 %
Borrowed funds 63,750 1,182 3.72 141,674 4,136 5.85
------------- ---------- --------- ---------- --------- ----------
Interest-bearing liabilities 560,176 7,198 2.58 507,003 7,798 3.08
------------- ---------- --------- ---------- --------- ----------
Non-interest and
interest-bearing funding 649,258 7,198 2.22 587,805 7,798 2.66
Other liabilities: 8,411 8,638
------------- ----------
Total liabilities 657,669 596,443
------------- ----------
Shareholder's equity 56,036 48,548
------------- ----------
Total liabilities &
shareholder's equity $ 713,705 $ 644,991
============= ==========
Net interest income $14,129 $ 8,350
========== =========
Net interest margin 4.22 % 2.75 %
========= ==========
(1) Prior year has been adjusted to exclude the First Bank of Delaware,
reflecting the spin off of that bank effective January 1, 2005