EX-99.1 2 ex99-1.htm EXHIBIT 99.1 Exhibit 99.1

 
NEWS RELEASE
 
FOR RELEASE IMMEDIATELY
 
Contact: Paul Frenkiel, CFO
 
(215) 735-4422 ext. 5255

REPUBLIC FIRST BANCORP, INC.
REPORTS THIRD QUARTER EARNINGS

Philadelphia, PA, October 20, 2005 - Republic First Bancorp, Inc. (NASDAQ:FRBK), the holding company for Republic First Bank (PA), today reported third quarter 2005 earnings from continuing operations of $2,143,000 or $0.24 per diluted share. That compares with $2,555,000 or $0.30* for the same period last year which included $1.3 million of one-time income. Earnings from continuing operations for the nine month period ended September 30, 2005 were $6,299,000 or $0.72 per diluted share, compared to $3,984,000 or $.47 per diluted share for the comparable prior year period. The improvement in 2005 earnings reflects significant growth in commercial loans and core deposits and the payoff of the high priced Federal Home Loan Bank borrowings. Average loans grew in excess of 20% for the third quarter 2005 compared to the comparable prior year period. Total assets at September 30, 2005 were $820,517,000 compared to $662,710,000 as of September 30, 2004.

Total shareholders’ equity stood at $60,834,000 with a book value per share of $7.17 at September 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 value amounts were restated to reflect the 12% stock dividend paid June 7, 2005.
 
 
 

Republic First Bancorp, Inc.
                         
Condensed Income Statement
                         
(Dollar amounts in thousands except per share data)        
          
(unaudited)
                         
     
Three Months Ended
 
 
 
  
Nine Months Ended
 
 
 
 
 
 September 30
    
 September 30
      
   
2005
  
2004
 
 
 
2005
 
2004
      
                           
Net Interest Income
 
$
7,256
  
$
4,516
        
$
21,385
  
$
12,866
        
Provision for Loan Losses
   
314
   
(1,363
)
  
(1
)
  
1,136
   
(863
)
  
(1
)
Other Income
   
903
   
1,984
   
(1
)
  
2,805
   
3,418
   
(1
)
Other Expenses
   
4,602
   
4,047
         
13,613
   
11,243
       
Income Taxes
   
1,100
   
1,261
         
3,142
   
1,920
       
Net Income From Continuing Operations
   
2,143
   
2,555
         
6,299
   
3,984
       
Net Income From Discontinued Operations, Net of Tax
   
-
   
503
         
-
   
2,266
       
Net Income
 
$
2,143
  
$
3,058
        
$
6,299
  
$
6,250
        
                                       
Diluted EPS From Continuing Operations
 
$
0.24
  
$
0.30
    
(3)(1
)
$
0.72
  
$
0.47
    
(3)(1
)
Diluted EPS From Discontinued Operations, Net of Tax
   
-
   
0.06
         
-
   
0.27
       
Diluted EPS
 
$
0.24
  
$
0.36
    
(3)(1
)
$
0.72
  
$
0.74
    
(3)(1
)
                                       
Republic First Bancorp, Inc.
                                     
Condensed Balance Sheet
                                     
(Dollar amounts in thousands)
                                     
(unaudited)
                                     
                                       
Assets
   
September 30,
 
 
September 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2005
 
 
2004 (2)
 
                        
                                       
Federal Funds Sold and Other Interest Bearing Cash
 
$
66,413
  
$
50,508
                          
Investment Securities
   
66,097
   
52,752
                         
Commercial and Other Loans
   
645,613
   
517,532
                         
Allowance for Loan Losses
   
(7,401
)
  
(7,048
)
                        
Other Assets
   
49,795
   
48,966
                         
                                       
Total Assets
 
$
820,517
  
$
662,710
                          
                                       
Liabilities and Shareholders' Equity:
                                     
Transaction Accounts
 
$
357,081
  
$
313,750
                          
Time Deposit Accounts
   
228,162
   
181,765
                         
FHLB Advances and Trust Preferred Securities
   
166,999
   
106,186
                         
Other Liabilities
   
7,441
   
8,688
                         
Shareholders' Equity
   
60,834
   
52,321
                         
Total Liabilities and Shareholders' Equity
 
$
820,517
  
$
662,710
                          
                                       
                                       
 
(1)
 Prior year reflects impact of a $1.3 million one time award arising from a legal settlement in connection with a loan recovery.                  
                                       
(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)
 Prior year earnings per share has been restated for the 12% stock dividend paid June 7, 2005.                  
 
 


Republic First Bancorp, Inc.
                       
September 30, 2005
                       
(unaudited)
                       
                        
   
At or For the  
 
 At or For the
 
 
 
 
 
Three Months Ended
 
 Nine Months Ended
 
 
 
 
 
September 30,
 
September 30,
 
 September 30,
 
September 30,
 
 
 
Financial Data:
 
2005
 
2004 (1)
 
 2005
 
2004 (1)
      
                        
Return on average assets on continuing operations
    
1.19
%
  
1.57
% (2)
  
1.18
%
  
0.82
 %   (2)
                                 
Return on average equity on continuing operations
    
14.24
%
  
19.88
% (2)
  
14.71
%
  
10.59
 %   (2)
                                 
Share information:
                                
                                 
Book value per share
  
$
7.17
  
$
6.45
  
$
7.17
  
$
6.45
        
                                 
Shares o/s at period end, net of Treasury shares
    
8,479,000
   
8,112,150
   
8,479,000
   
8,112,150
       
                                 
Average diluted shares o/s
    
8,770,000
   
8,519,000
   
8,706,000
   
8,455,000
       
                                 
                                 
(1) Prior year amounts have been adjusted for the spin off of First Bank of Delaware effective Janaury 1, 2005.                
                                 
(2) Prior year reflects impact of a $1.3 million one time award arising from a legal settlement in connection with a loan recovery.                
 
 
 

Republic First Bancorp, Inc.
          
Press release 09/30/2005
          
(Dollars in thousands)
          
(unaudited)
          
           
Credit Quality Ratios:
          
   
September 30
 
September 30
 
 
 
2005
 
2004 (1)
  
           
Non-accrual and loans accruing,
          
but past due 90 days or more
  
$
2,872
  
$
7,167
  
               
Restructured loans
    
-
   
-
 
               
Total non-performing loans
    
2,872
   
7,167
 
               
OREO
    
137
   
207
 
               
Total non-performing assets
  
$
3,009
  
$
7,374
  
               
Non-performing loans as
              
a percentage of total loans
    
0.44
%
  
1.38
%
               
Nonperforming assets as
              
a percentage of total assets
    
0.37
%
  
1.11
%
               
Allowance for loan losses
              
to total loans
    
1.15
%
  
1.36
%
               
Allowance for loan losses
              
to total non-performing loans
    
257.69
%
  
98.34
%
               
(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 09/30/2005
                          
(Dollars in thousands )
                          
(unaudited)
                          
       
Quarter-to-Date    
 
 
 
 
 
 
 
 
 
Average Balance Sheet    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Three months ended
 
 
 
September 30, 2005
 
September 30, 2004 (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
Average
 
Interest-Earning Assets:
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
 
 
Balance
 
Interest
 
Cost
 
Balance
 
Interest
 
Cost
  
                           
Commercial and other loans
 
$
604,531
  
$
10,576
    
6.94
%
$
501,189
  
$
7,621
    
6.03
%
                                       
Investment securities
    
48,752
   
464
   
3.81
    
57,479
   
482
   
3.35
  
                                       
Federal funds sold
    
20,952
   
192
   
3.64
    
37,604
   
139
   
1.47
  
                                       
Total interest-earning assets
    
674,235
   
11,232
   
6.61
    
596,272
   
8,242
   
5.48
  
                                       
Other assets
    
39,460
               
50,569
             
                                       
Total assets
  
$
713,695
  
$
11,232
        
$
646,841
  
$
8,242
        
                                       
Interest-bearing liabilities:
                                      
                                       
Interest-bearing deposits
  
$
485,512
  
$
3,219
    
2.63
%
$
380,038
  
$
1,824
    
1.90
%
                                       
Borrowed funds
    
74,441
   
757
   
4.03
    
120,648
   
1,902
   
6.25
  
                                       
                                       
Interest-bearing liabilities
    
559,953
   
3,976
   
2.82
    
500,686
   
3,726
   
2.95
  
                                       
Non-interest and
                                     
interest-bearing funding
    
645,967
   
3,976
   
2.44
    
588,997
   
3,726
   
2.51
  
                                       
Other liabilities:
    
8,022
               
6,854
             
                                       
Total liabilities
    
653,989
               
595,851
             
                                       
Shareholders' equity
    
59,706
               
50,990
             
                                       
Total liabilities &
                                     
shareholders' equity
  
$
713,695
              
$
646,841
              
                                       
Net interest income
        
$
7,256
              
$
4,516
        
                                       
Net interest margin
                
4.32
%
              
3.04
%
                                       
(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 09/30/2005
                          
(Dollars in thousands )
                          
(unaudited)
                          
       
Year-to-Date
 
 
 
 
 
 
 
 
 
Average Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
Nine months ended
 
 
 
September 30, 2005
 
September 30, 2004 (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
Average
 
Interest-Earning Assets:
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
 
 
Balance
 
Interest
 
Cost
 
Balance
 
Interest
 
Cost
  
                           
Commercial and other loans
 
$
583,033
  
$
30,347
    
6.96
%
$
484,338
  
$
22,332
    
6.16
%
                                       
Investment securities
    
47,526
   
1,350
   
3.79
    
63,254
   
1,558
   
3.28
  
                                       
Federal funds sold
    
41,885
   
863
   
2.75
    
57,524
   
501
   
1.16
  
                                       
Total interest-earning assets
    
672,444
   
32,560
   
6.47
    
605,116
   
24,391
   
5.39
  
                                       
Other assets
    
41,205
               
41,427
             
                                       
Total assets
  
$
713,649
  
$
32,560
        
$
646,543
  
$
24,391
        
                                       
Interest-bearing liabilities:
                                      
                                       
Interest-bearing deposits
  
$
492,758
  
$
9,236
    
2.51
%
$
367,299
  
$
5,486
    
2.00
%
                                       
Borrowed funds
    
67,167
   
1,939
   
3.86
    
136,545
   
6,039
   
5.91
  
                                       
                                       
Interest-bearing liabilities
    
559,925
   
11,175
   
2.67
    
503,844
   
11,525
   
3.06
  
                                       
Non-interest and
                                     
interest-bearing funding
    
648,151
   
11,175
   
2.31
    
587,505
   
11,525
   
2.62
  
                                       
Other liabilities:
    
8,229
               
8,729
             
                                       
Total liabilities
    
656,380
               
596,234
             
                                       
Shareholders' equity
    
57,269
               
50,309
             
                                       
Total liabilities &
                                     
shareholders' equity
  
$
713,649
              
$
646,543
              
                                       
Net interest income
        
$
21,385
              
$
12,866
        
                                       
Net interest margin
                
4.25
%
              
2.84
%
                                       
(1) Prior year has been adjusted to exclude the First Bank of Delaware, reflecting the spin off of that bank effective January 1, 2005.